A coffee shop is a place not just to have coffee but is a place to meet people, interact with them and have a good time. Coffee shops serve a variety of coffee along with other refreshments to cater to needs of customers. Businesspersons meet clients and partners at coffee shops to plan their work over coffee and snacks. For young people, a coffee shop is a hangout to socialize with friends and have a good time.
Running a coffee shop can be a profitable business. If you have a coffee shop in a good location and offer the right ambiance with tasty coffee, you can expect a continuous inflow of customers. This is a good business opportunity that you can capitalize on. If you are interested in starting a coffee shop, you can go through the guidelines below to help you in your venture.
Own brand or a franchise
You can start a coffee shop in your name by starting your own brand and then building the brand gradually. An easier option is to open a franchise of a top coffee shop that is already successful. Starbucks, Costa Coffee, and Coffee Republic are some of the top coffee shops who allow entrepreneurs to open a coffee shop in their name.
Franchise model is beneficial, as marketing becomes easy piggybacking on an established brand’s name. The downside is that a large fee needs to be paid to the mother company. Every month, a percent of the revenue should be shared with them. In return, they provide support to run the shop. If you don’t like the idea of a franchise, you can start your own brand.
Purchasing an existing shop
Instead of starting a coffee shop from scratch, you can buy an existing shop from its owner. You can buy a shop, renovate it, change its name, and commence operations. This will work out if the price the shop owner asks is within your budget.
Location, location, location
The location is the most important thing to decide the success of a coffee shop. The location must be such that customers find it easy to drop in on their way to school, college, or work. The location must have proper parking to make it convenient for customers. Opening in the wrong location can be a fatal mistake, so you need to do market research to determine the location.
Plan and Implement
Make a business plan outlining how your business works. Plan how you will promote your coffee shop. Plan how you will obtain resources needed for your shop. Most importantly, you need to plan the money needed to start the coffee shop. You also must plan how much you will spend each month and how much you can earn. Pricing must be decided carefully keeping in mind pricing of competitors and understanding how much customers are willing to pay. You need to plan for the licenses and approvals needed. Implement your plan and get started.
Secret of success
Use innovative ideas to achieve success. You can offer free internet. Some coffee shops even offer customers a space to work. Innovations, an attractive interior décor, good coffee, and great service can help in attracting customers. If you can offer value to customers, you can price your offerings in such a way that you can make your coffee shop successful and earn profits.