One of the things people think about when opening a coffee shop is whether there will really be a lot of customers because there are so many coffee shops. This is an interesting concept, but when thinking about it in regard to the number of available coffee shops and the number of people, it becomes much more acceptable. To begin with, in Italy, a country with 60 million people, there are 200,000 coffee shops. However, in the United States, a country with 300 million people, there are 15,000 coffee shops. So, right away, it is easy to see that there is still a lot of space for growth in regard to coffee shops.
Before even trying to open a coffee shop, it helps to have experience with coffee. Typically, this means working in a coffee shop for a period of time to really learn the ropes. It’s one thing to brew a pot of coffee at home; it’s entirely different when you have five pots brewing at one time because it is the 7:30 rush hour and people are anxious to get to work with a hot cup of coffee. Therefore, get some experience in the actual coffee business.
Once you do this, put together a business plan. What type of coffee shop do you want to have? A cart or kiosk? Perhaps you want a drive-thru? Or, do you want a complete eatery? Putting together the type of goods you are going to offer and where you are going to get those goods also helps. In your business plan, really go into detail about what types of coffee you’re going to sell, where you want to have the business located, what size business you want, and other things.
Search for your location. One of the things suggested to people is to wait to find the right spot. Sometimes waiting six months or even a year for the right location to open up can have an incredible impact on your overall earnings many years down the line. So, search for your location, but more importantly, find one that really fits with the type of business you are looking to run. If you want an eatery, find a place that is going to be easily accessible to eaters.
The next step is to get financing. This all goes back to the type of business you are going to run. If you are going to get a coffee cart or a kiosk, you’re looking at spending anywhere from $20,000 to $75,000. If you are looking to open a drive-thru, you are going to spend between $80,000 and $200,000. If you are opening a complete eatery, it could cost anywhere from $200,000 to $350,000. While you might be able to do it for less, these are the average numbers.
Because of how expensive it can be, getting the money can be difficult. To begin with, determine how much money you have available. If you have saved for this, you can put a lot of your own money toward it. With your expert business plan in hand, go to your local bank and try to get the loan from them. If you demonstrate a command of the coffee business, are putting your own money into it and have a good business plan, they might give you the loan.
Finally, open up shop. Make sure that your baristas—the people who actually do the coffee making and creating—are well trained. Get professional trainers. People who sell the coffee pots are not professionals. Make sure you market well and create coffee promotions to bring customers in. With big chains like Dunkin Donuts and Starbucks, it can seem intimidating to open a new coffee shop. But, if you provide a service and your baristas are good at making pretty cups of coffee, your customers will come back. And, with only 15,000 coffee shops for 290 million people, that’s a lot of potential customers.
