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Thursday, December 9, 2021

10 Steps To Setting Up Your Coffee Shop Business

Coffee is enjoyed by millions as the first drink of the day, to help energize the morning hours. However, coffee drinkers have expanded their palettes enjoying a cup of coffee in many different forms throughout the course of the day and even into the evening hours. This new surge in coffee enjoyment has lead to many new coffee shops opening their doors to the public and offering not only an average cup of joe but rather, offering all different levels of quality roasts. Many entrepreneurs, who once dreamed of opening a coffee shop, are using this opportunity to make the dream a reality. Many times it is difficult to know where to begin, and this article will lay out 10 important steps one needs to know before embarking to open a coffee shop business. 

1. Research is Needed

When first beginning the journey to open a coffee shop business, an extensive amount of research is needed. Find all competitors and research that business, which may be independently own or a franchise. Understanding the level of competition is a necessity to understand where a new coffee shop would struggle and also prosper. many times a coffee shop is the first business for the shop owner, so it is a great idea to contact as many business owners in the area as you can to understand their experiences.

2. Coffee Shop Concept

After completing initial research and a firm decision has been made to open a coffee shop, it is now time to begin creating concepts for the new business. To give a business the edge over competitors there are a number of things to consider. Are customers going to be sitting down or will the majority be business people who just want to grab a cup of Joe and a bagel? What will be the charge for items on the menu and also what can customers afford are important questions. When a customer is looking for cheap and fast, upselling this type of customer on an expensive brew may not work. Will the establishment offer different style food items or just the basics? Will food be organic or just overall basic items. Finding a good position in the market can benefit a new coffee shop. After putting in the efforts and arriving at a conclusion about the shop’s concept, it is time to come up with a great name for a coffee shop is recommended.

3. Source of Coffee Beans

A coffee shop sells coffee first and foremost, so the quality of coffee beans is a very important factor for success. Coffee shops can purchase beans with wholesale pricing. There are many sources for roasted coffee beans and finding a reliable and high-quality source is a must. Finding the correct flavor, which falls in a realistic price category is important. Coffee shops generally start out purchasing their roasted coffee beans from an outside vendor, however, as a coffee shop matures, many times the shop will roast their own beans in-house.

4. Business Plan

The time has come to create a well-constructed business plan. All start-up businesses need a business plan and the foodservice industry is no different. A business plan helps to define the ownership structure, finalize the concept, create a menu, project finances, and include competitor research. A business plan is a great way to lay out the potential future of the business and the plan will also be required while looking for outside funding options.

5. Get a Loan

Starting a coffee shop is not inexpensive and many times will require a loan to open a coffee shop. Equipment, supplies, and other business needs many times are expensive and require an owner to secure a loan to rent or purchase these items. Most coffee shops take up to a year to see any profit at all, so it is very important to have funding that can help cover operating costs, while the business builds to profit. Business lines of credit, commercial loans, and small business loans are ways to secure the funding needed.

6. Finding a Space

Finding the perfect spot for a coffee shop location is essential to maintain a steady flow of traffic into the shop. Conduct extensive location analysis to find out if the location is suitable and can be successful. Some things to consider are the distance from suppliers, local competition, demographics, crime rates in the area, the zoning and regulation requirements, and others.

7. Permits and Licenses

All new coffee shops will have requirements to fulfill for the local government. Each city and state is different. Permits take time to go through the system, so plan accordingly.

8. Equipment for Shop

Using proper equipment is essential and many times all equipment can be bought by companies claiming to get all your coffee shop equipment from Ekuep. These shops can be a one-stop-shop that can handle most, if not all your equipment needs. Make a list of all equipment needed and check with companies on what they have.

9. Attain and Train Staff

Customer service is key. Customers expect to be taken care of quickly, attentively, and with care. Being selective on the staff to hire helps with expectations on the employee and the level of training the staff member may need. Training a new employee from scratch or hiring an experienced Barista is an important approach to consider. Hiring friendly and well-trained staff to take care of customers helps the shop succeed.

10. Open the Shop

After completing all the steps above, it is time to open shop and start serving that sweet Joe. Before opening the shop doors, take the time to advertise and get the word out of the shop opening. Use social media and local media outlets to offer an opening day deal to bring in customers and make sure to turn these customers into repeat customers, with service and attention.



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Daniyel Carlson
Daniyel Carlson is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

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