Coffee shop business plan allows to turn favorable market trends into real money. Runumber recommends: amount of investments – $6k, payback period – 0.6 years, profitability – 138%.
Overview of Coffee Market
Croffee consumption in the world breaks all records. The aromatic invigorating beverage is popular from Australia to South America, from Antarctica to Eurasia. Coffee producers sell over 150 million kilograms of coffee annually. Despite this, in some places (even in France, Italy and Austria) it is difficult to buy coffee of a good quality. Moreover, there is an interesting fact that Italians make both the best and the worst coffee, compensating its low quality with delicious fresh pastries.
Such situation preserves due to the fact that network coffee houses care little about the quality of raw coffee beans. Instead, an excellent aromatic drink people can find in small family cafes, where each family has its own secret of roasting beans and making a drink with the unique taste. For example, there is a cafe Caffe Al Bicerin in Turin, whose history began in 1763. An incomparable Italian espresso is served here, but the cafe’s most renowned drink is bicerin, a hot chocolate gently covered with espresso and flavored with cream.
Peculiarities of Coffee Shop Business
The main feature of the business is the atmosphere of the guest room, which can contribute both to the success and the failure of business. There are three options to start a successful café business:
- Ordinary cafe serving medium-level coffee plus meals that can be quickly prepared. This is the most versatile option, because the design of the cafe is not focused on a special target group.
- Coffee shop which is focused on serving coffee and its variations. This is a place with a pleasant environment where you can rest and relax. In addition to coffee, ice cream and pastry are sold here.
- Cafe chantant (cabaret), i.e. an institution where plays, small vaudevilles, dance performances take place.
Sometimes a bistro is also considered a cafe, but it is rather a venue of a restaurant type.
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Equipment for Coffee Shop
Business plan of the coffee shop has to describe the costs for the purchase of the following equipment:
- deep fryer;
- two tables;
- kitchen utensils (pans, knives, etc.);
- tables and chairs for the hall;
- dishes for visitors;
- bar counter.
In general, equipment of the cafe for five tables costs from $2000. There is no upper limit since all depends on the level of equipment quality and the number of seats.
Peculiarities of Advertising Coffee Shop
Before conducting an advertising campaign, it is necessary to define a unique selling point and describe it in your coffee shop business plan. For example, if a coffee shop opens early in the morning, it should have a counter with the fresh newspapers. Businessmen like to drink fresh coffee before work and read periodicals. You can also develop your taste of coffee and change it adding spices.
If the ordinary cafe is located in a residential area, advertising near the elevators as well as distribution of leaflets near the shops, at bus stops and near the metro will be effective. In case of art cafe, you should consider placing advertising near theater posters and arrange with the theater ticket office that the cafe’s business cards or flyers should be available on the counter.
Another effective way of advertising is to place a banner with information about the cafe.