How to open a coffee shop from scratch without a franchise, what equipment you need, how much it costs, and the pitfalls. Step-by-step instruction.
Before opening, you need a business plan. There are several issues you need to resolve before investing. Profitability, revenue, and the success of each step will depend on this.
Which is better – to open a coffee shop from scratch or by franchise
It is worth buying a franchise when you are unsure that you can launch such a complex project. Renowned brands offer turnkey solutions, marketing programs, specific vendors, special ingredient prices, and business training.
But franchising requires additional investments in the form of a lump-sum fee. The business will open under the guise of a specific brand, not your own.
Which coffee shop to open
The format is the first thing you should choose. There are many types. Each has its pros and cons, costs.
- Full format. A detached building or an island in a shopping center, seating, stylish individual design.
- Coffee to go. A room of 3-6 square meters without seats. Simple design.
- Mobile option. The car is equipped with a coffee machine and a dispensing stand. The coffee shop on wheels (food truck) is used for street trading at events.
- Self-service coffee shop. The vending machine is equipped with a stylish counter with syrups that visitors add to the drink, a terminal for bank cards. No seller required.
Decide on a concept before calculating your investment. The size of assets, methods of promotion, possible profit depends on the format.
Defining the concept of a coffee shop
After choosing the format, you need to paint the concept of the future establishment. You must clearly understand all of his work. To do this, answer the questions:
- Who are you? Market positioning. What is your case? Maybe it’s a pastry shop, a modern, stylish lounge with signature drinks, or a classic establishment.
- What are you doing? Your product and how it manufactured. Purchased ready-made, produced independently. Is it just coffee or desserts for them? If you buy baked goods, then from whom.
- For whom? Determination of the target audience. Who are these people, with what income, what and at what time do they prefer? How many cups of coffee does he drink? Does he take other products besides drinks? Buys to go or eats locally. A detailed portrait will provide an opportunity to work out the model and determine the product matrix. Potential clients can divided into several priority groups.
What documents are needed to open a coffee shop
To get started, you need to register as an individual entrepreneur or a limited liability company. At the initial stage, it is recommended to choose an IP.
Submit documents to the tax office and switch to a simplified taxation form to minimize taxes (STS).
When registering, select OKVED 55.30. It is needed for permission to manufacture coffee and confectionery products with the subsequent sale.
Choosing a place. Where to open a coffee shop
The choice of location depends on the format of your establishment. So most areas are suitable for “coffee to go” – from metro entrances to office centers. Full designs should launch in large shopping centers or crowded streets.
The main factor is cross-country ability. The more people walk by the sign every day, the more sales there will be. Therefore, sleeping areas rarely become the focus of an entrepreneur’s attention.
Exterior and interior views of the coffee shop. Design.
Interior and exterior design play an important role. It attracts the attention of visitors, leaves an impression, and creates a desire to return. A barista can cook professionally, but he will not become a regular customer if the client is not comfortable in the room.
For beginners, a room of 20 – 30 square meters is enough. This area will accommodate a bar counter, several tables, and seating. The concept must be uniform for the entire interior – lighting, colors, background music, staff uniforms, window dressing.
I need a coffee machine. Semi-automatic is suitable for starting. It’s cheaper. Choose a coffee machine according to the capacity of the boiler, the warranty period of service, the availability of components, prices. Consider renting equipment.
In addition to the machine:
- Refrigerating chambers
The rest of the equipment selected based on additional tasks. For example, if an entrepreneur sells homemade baked goods, you will need an oven.
In small versions, one or two employees working in shifts are enough to perform the duties of a barista and a waiter.
In a standard institution with seating, you will need:
If necessary, you can hire a manager if you will only act as an investor in the business.
Purchase of coffee. Suppliers
Attendance depends on both the external and internal appearance and the quality of the drink. Therefore, it is necessary to approach the choice of a supplier of raw materials seriously. When evaluating, pay attention to:
- Shape, color, level of roasting of grains
- The aroma of the finished drink
Please consult with an experienced professional.
It recommended cooperating with several manufacturers. This will avoid the risks of missed deadlines by one.
What is the price for coffee to set?
To understand how to price your product, you will need to conduct a market analysis. There are many factors – location, closest competitors, target audience. For example, at Starbucks, coffee is expensive and they buy it But this is a brand. You won’t be able to charge the same price.
If your customers are middle class, set the price at the level of the market average.
Advertising and promotion
Everything will act as advertising – from the noticeable name to the drink’s taste, which will be discussed if it is possible to make a quality product.
Allocate a budget for advertising channels, starting with simple ones – distributing discount flyers, promoting your Instagram profile. At the initial stage, it will be useful to contact the designer to develop a logo and style.
How much does it cost to open a coffee shop from scratch?
You can determine the exact amount by calculating the model since many factors affect the final price.
Is it profitable to open a coffee shop?
Profitable. If you thoroughly work out a business plan, as in any business. And evaluate the market. Popular locations often become franchises following the success of their brand in the city.
This article describes the structure of opening your coffee shop without a franchise. However, this type of business is highly competitive and complex. Therefore, we recommend that you pay attention to franchise offers.