The Ultimate Guide To Starting A Coffee Shop

Opening a coffee shop is an exciting adventure! Cafés tend to be gathering spaces for community members, so operating a coffee shop means a deep connection with your friends and neighbors. Coffee shops can also be a lucrative investment. Small to medium-sized cafes can bring in $60,000 to $175,000 in revenue annually. Plus, the coffee industry has one of the most significant growth rates in the food industry, with predicted global market sales of $237.6 billion by 2025.

Once you’ve decided to open your coffee joint, it’s important to think about steps to make your enterprise successful. Through careful planning, you can bring your vision to fruition. 

What You Need to Start a Coffee Shop

Owning a successful cafe is rewarding! Running a successful business also takes time, money, and resources. Help make your coffee establishment boom with these best practices for café start-ups.

Check Your Cash Supply

Like any business, you want to ensure you have the initial capital to open your establishment. How much money an operator needs depends on a variety of factors, including location and type of café. However, these basic breakdowns can give you an idea of start-up costs:

• Drive-Through Only: $80,000 to $230,000
• Sit-Down Café: $80,000 to $330,000
• Coffee Shop With Drive-Through and Sit-Down Service: $80,000 to $400,000
• Coffee Kiosk, Mobile Cart, or Stand: $60,000 to $125,000

Your costs may vary, which is why it’s necessary to develop a business plan to determine initial and incidental investments. 

Get Your Plan Together

Opening a coffee shop involves upfront costs, so it’s crucial to determine your needs. Here’s a list of typical café essentials to consider:

• Beverage Inventory: beverage offerings, including coffee, milk and plant-based alternatives, teas, juice, etc.
• Café Equipment: espresso and coffee makers, coffee grinders, refrigerators and freezers, ice machines, dishwashers, display cases, and to-go cups
• Licenses and Permits: business licenses, health permits, and mobile cart permits
• Building and Operational Costs: rent or mortgage, utilities, insurance, and POS systems
• Marketing: website development, social media presence, brand recognition, and signage
• Staffing: training, wages, benefits, and incentive programs
• Furnishings: decor, tables and chairs, lighting, etc.

Choose an Optimal Coffee Shop Location 

Location matters for any food and beverage service enterprise. Consider an area that is easily accessible, provides good foot traffic, and has plenty of space for patrons to gather and enjoy a cup of joe. 

Spend some time researching other cafés in your area and seeing what demographics they cater to and others they might be neglecting. Always consider price when choosing a café location. Don’t go too far outside your real estate budget.

Determine your niche

Do you plan to be a traditional café, one that specializes in latte art, has menu items with obscure/unique ingredients and flavors, or Instagram-worthy coffee confections? It is worth exploring how you’d like to present your product. Also, it is worth researching how you can fill in some of the gaps other coffee shops might be missing. For example, maybe offering a house-made breakfast sandwich or staying open into the evening might give your place an edge. 

Throw an Open House 

Once you have your business plan figured out, your equipment purchased, and space confirmed, bring customers to you by planning an open house. Flyers, newsletters, and social media marketing are great ways to market your new cafe’s party date. 

Consider offering neighborhood discounts, punch cards, and free samples to entice future customers.  

Keep Beverage Supply Costs Low at US Foods CHEF’STORE

At CHEF’STORE, you’ll find everything you need for your coffee shop! We have everything from premium coffee to dairy products, paper goods, flavoring syrups, and more under one roof.

Browse our products for delivery, or stop by one of our locations today.

DOWNLOAD OUR CHECKLIST: STEPS TO START A COFFEE SHOP