Did you know that coffee is the world’s second most consumed drink. Ranking second only to water. According to government business statistics coffee business is going to grow 50% year over year. Which means starting a coffee shop is one of the most profitable businesses anyone can get into.
But, before you set sail you should consider the following important factors for success.
1. Location: Location is one of the most important factors in deciding the success of any business and also one of the most over looked. When deciding on a location for your coffee shop business you should consider an area that has a large number of walking traffic. If you’re considering to open your cafe business in a mall then consider a location that is usually jammed packed with customers and always go for a location that is near the entrance or exit of the mall cafeteria. It is a well known and proven fact that shops nearest to the entrance and exit of a mall get most of the customers. If your planning on starting from scratch and building the entire building or renting one on a lease then a good ratio of car traffic to go by would be a minimum of 10,000 to 15,000. What this ratio means is that you need to figure out if at least 10,000 cars drive by your store front every day or not. If the traffic is less than 10,000 then it’s not a good idea to invest.
2. Coffee Equipment: Coffee equipment is a crucial key factor for any coffee shop business success. The most important thing to consider here is that for a coffee shop business you must purchase commercial grade coffee equipment. This means you will have to dig very deep in your pockets. You can’t expect to use the best espresso machine under 200 for your coffee shop business. Usually commercial grade coffee machines will run you between $2000 to $5000. Commercial espresso machines will run you between $4000 to $15000. Commercial grade coffee grinders will run you about $2000. If you’re planning on roasting your own coffee then you will have to consider spending another $10,000 to $15,000 on one.
3. Employees: Employees are the major ingredient to any business’s success. However at a cafe you can’t only employee people who know how to run the register but will have to head hunt for pro barista’s. Any cafe’s success relies on having at least two pro barista’s. Barista is the person who knows everything there is to know about all the hundreds of types of coffees you will be serving and is an expert at making each type.
4. CODB: Cost of doing business is a important factor that you should sit down and calculate. You should know exactly how much your monthly rent, phone, internet, labor and any other misc costs will be. These are the costs that you must pay every month no matter if you make a sale or not. You should have enough money in your savings to cover at least 6 months of costs from your pocket. A golden rule for any business to keep in mind is “Don’t expect any profits for the first year of business.”
These are 4 key factors you should consider before jumping in. If you think we have left anything important out please do let us know down in the comment section. To find more information on the best commercial espresso machine for your coffee shop business please visit Espresso Gurus.