You’ve mastered your French press and got your pour-over game down. Now yo...
Location, location, location. That might sound like the perfect setup for a joke, but it’s the truth when first determining the reality of your coffee shop. You have to do some research and find out what consumers want, what gaps there may be in the local coffee market, and where that places you.
Going to other local coffee shops and asking them general questions about their business is not illegal, though you may not always get answers, no one wants to help their future competition. Taking notes and visiting every other coffee shop will help you to see what you can bring to the market and what isn’t working for other store owners. Personally, I would ask about what brands of coffee they are using to see if you can improve upon their selection. It might be a subtle difference, but if you’re in a city that craves quality coffee drinks, your choice of espresso may make all the difference.
If you’ve determined that the market is not overly saturated, then the next item on your list of things to do is to find a physical location. A word of advice from my own experience: coffee shops, no matter the quality, thrive near book stores and universities. This is a tried and true fact. Where there are people who need coffee, shops will thrive. Then again, if the area already has a coffee shop, you may not want to start there. Find another location and thrive there, then expand and take over the first location!
Mapping out your city or town’s coffee market is a great way to go about finding a gap in the locations of shops. When you find a gap, mailing out a simple survey or going door to door to ask about coffee habits may help you to make your decision. If most of the interviewees seem excited about the idea of a new and closer coffee shop, then a location in that area might be a great move. If the neighbors don’t seem to think that coffee’s all that important, then move on.
One coffee shop that I know of wanted to expand quickly and opened up stands within hospitals. Not only were these stands unprofitable, but they also stretched the resources of the employee base thin. Only one person ran the stand at any given time, so if that person was ill, the stand either closed and lost money, or opened late and lost money. Research the realism of your coffee shop. It’s better to lose money on a well-thought out plan than to go in blindly.
Determining the market value of your service is imperative before going on with your coffee shop venture. If you do not have a customer base, then you will not make money, plain and simple. Research is part of starting any business and there are many places that can help you out, the local chamber of commerce and other business organizations can point you in the right direction.
Next month, Now that I’m here, what do I do? We’re going to go into the initial setup and making a business plan for your coffee shop. How to pick a good espresso bean, milk, and flavoring selection will be covered as well.
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Fatima says
this is very useful. thanks is not enough really
amelia says
I want to have a coffe shop in New York so were would be the best location
Cravena says
Hello, I am wanting to start a small drive by coffee stand, and I know that my aunt started one where I use to live and she picked the wrong location and it failed, and she was out $10,000. I was just wondering, is that a common price to start a coffee stand when purchasing the stuff inside ei….machines, flavors, utensils…ect???
SKip says
My small town has no coffee shop.(Everyone buys coffee at the gas stations)I want to start a coffee shop and combine it with a Community Dairy whip shortly after. Where do I start? secure business loans? the real estate? product line?
Angel says
Interested in financial support services. I have great success in restructuring two failing business and now wish to be an owner. I know I will be successful, but I do not have base funding….where to look?
Kimberly says
Im interested in starting up a coffee stand in my area, I was wondering if you need a license or how much does it cost to start out?
lilet says
my group would like to start a coffee shop with a twist of having a bar on it-a Coffee Bar. is that a good idea?. In what particular place it will be suitable?
Teo says
I wonder do you think anyone running a Drive-by Coffee Stand will welcome a standard structure kit? Our company can prefab any small structure at a very low cost and easy assemply — structurally sound of course.
nihal says
hey, im planning to start a coffee shop with a spiritual theme. plays some spiritual music like buddha bar and some good piece of art. basically a place to hang out with hooka/sheesha. i wuld like to know how important is the espresso machine and how to choose a good machine. thx in advance :)
Raven says
Actually…in response to Jegan and Camila…There is a coffee house at the beach…near the peer, that I frequent. Many people go there and they run a great business. Also remember…there are many cold coffee beverages to be served during the warmer months.
Jegan says
Camila,mam would u sugest some locations.
Camila says
Jegan,
I don’t think putting up a coffee shop along the shore would be a good idea. If I were to come to a beach I would rather have a refreshing cold drink rather than a cup of warm coffee
Jegan says
I would like to start a coffee shop near by beach, which the distance is almost 500-600 feet from seashore.Is this a right choice ? people like to have coffee near seashore? pls. guide me.
elvis cuenta says
sir/mam i have a few question here… we have stablished a coffee shop here in our place 1 month later.. but until now we can’t meet our targeted sales that is 5,000 pesos… can you give us some comments or advise to meet our targeted sale?
Glendadale says
My husband and I are opening a pharmacy in a professional building. The building will house ten physcian offices and an emergency clinic. We want to have a beverage area and i thought coffee would be a good choice.
lulu says
very good tips