How to Open a Coffee Shop: Starting a Coffee Shop Business
Think about what kind of cafe to open.
To put it simply, the positioning of a coffee shop means how big your coffee shop wants to be, what your coffee shop sells, and who you mainly want to sell your coffee shop’s products to? Once you understand these three questions, the positioning will be accurate and the direction will be clear. That’s it, clear goals are the first step to successfully opening a store. The positioning of the coffee shop determines your investment, personnel, location, and decoration style. But many shop owners are just the opposite. They often decide on the design and location first, and then consider what type of coffee shop they want to open. This is the most fatal mistake of coffee shop owners.
Think about how to spend the money to open a cafe.
That is, how much does it cost to open a coffee shop. Maybe many friends will first think of coffee equipment and furniture, etc., wrong! These are not the first things you want! Menu! The menu is the most basic. The menu of the cafe determines what you need to purchase equipment, so first Make a menu, decide what to sell, and make a shopping list based on the cafe’s products. One thing to say here is that there is no need to purchase too much equipment at the beginning, and you can add it one after another later. Make sure that there is enough space in the cafe to store equipment, so as to avoid the embarrassment of not having enough space to add equipment later.
Here, shop owners are reminded not to spend the funds for opening a coffee shop on decoration first. Decorating the coffee shop will continue to increase your budget, and it will even increase even more when it is completed. This is a rule of thumb, and it may eventually As a result, the remaining funds are too low, and equipment purchase and other constraints are tight. After deducting the rent, you will not be able to maintain this cafe for long. So you always have to remember that coffee making equipment is the most important thing, and production tools determine productivity!
Good technology is a must.
What’s the alternative for a cafe with terrible coffee?
Many people don’t even know how to make coffee before opening a store. No matter if you can’t do it yourself or the level of staff you hire, you can’t tell. Before opening a shop, you should go to other cafes to taste the taste of coffee, and learn more about the basic knowledge of coffee online. At the same time, you can also take a look at what other cafes sell. Although the threshold for opening a cafe is not high, The competition is still very fierce, and only by mastering proficient technology can we ensure the good operation of the coffee shop.
Site selection problem.
A good location is half the success of opening a store. We have heard and read this saying countless times. Without further ado, what is a good site selection?
To put it simply, we use ABC three levels to determine the location level. A-grade locations are usually divided into A-grade, B-grade, and C-grade commercial locations. For A-grade prime locations, the rent is very high. Merchants in this location sell at very high unit prices, the operating costs are huge. What I want to say here is that we might as well focus on B- and C-level locations and observe in detail the different work and rest patterns of each location, the gathering time of people, etc. It is recommended that store owners conduct detailed investigations Business area, including your competitors.
How much does a cup of coffee cost?
To determine how much a cup of coffee costs, first of all, we need to know how much a cup of coffee costs, and secondly, how much the competitors sell.
Usually a cup of coffee requires 15 to 20 grams of coffee beans. One pound of coffee can usually make 25 to 30 cups of coffee. The creamer and sugar required for a cup of coffee cost about 1 yuan, plus cups and habits. Including consumables, the raw material cost of a cup of coffee is about four or five yuan. Finally, the rent, water, electricity, staff and other expenses are added up to the price of a cup of coffee. Many store owners don’t know how much a cup of coffee costs. They just depend on how much their competitors sell. This is completely wrong.
Let’s just say that for now. Opening a coffee shop cannot make a big profit in a short time. Although the profits from coffee are considerable, the cost and difficulty of operating it are still relatively high. At the same time, every coffee shop has its own way of operating. You cannot just imitate, nor can you copy it at all. You need to continue to learn in the business process to find your own path.
What are the profit prospects of opening a coffee shop?
As everyone answered, statistics tell you that very few can make a profit. But there are still profitable ones, and even more profitable ones. Here is a personal analysis of the aspects that need to be paid attention to before, during and after opening a store in order to make profits. I hope it will be helpful to friends who want to open a store or open a store for the first time:
Early stage
1. Budget is very important.
First of all, you should have a rough model in mind to clearly define the positioning and investment amount, and then make an initial budget for decoration funds, store rent, transfer fees, deposits, water and electricity properties, labor expenses, first purchase, etc. based on the approximate market price. The budget should be within your means. Based on budget needs, roughly calculate the time required to recover costs and achieve profitability, as well as a preliminary estimate of daily turnover. The above data must be based on sufficient investigation of the local market.
2. Market research must be done.
You have to know whether this area needs a coffee shop like yours. If the market is close to saturation or oversaturated, then this place is not suitable for opening a coffee shop.
3. Pay attention to site selection.
Neither coffee shops nor bars are suitable for the noisy city center business district. It is better to have a relatively convenient distance from commercial and residential areas. It is better to have restaurants and other life services around it. Convenient parking is a plus, the scenery is good, and it is in an art and cultural circle. When choosing a location, pay attention to the rent (including transfer fees, water and electricity properties, etc.). In principle, the lower the rent, the better. What you save is what you earn.
4. Theme is important.
The coffee shop must have its own theme and the theme must be consistent with the positioning, and be designed around the theme. Without a theme, there will be no vitality.
5. Cost control.
In the early stage, you must adhere to the concept that what you save is what you earn when decorating and purchasing. Even if the cost is controlled well, the final expenditure will usually exceed the budget by about 5%-10%.
6. The pricing must be reasonable.
Generally speaking, the cost of raw materials accounts for about 30% of the selling price, but it can also be 20% or even 10%. It is recommended that the production cost rate should be reasonably matched and the unit cost should not exceed 50%, and the overall cost should be controlled within 30%. After conducting market research, refer to the formula of selling price ≥ cost ÷ cost rate for reasonable pricing.
