So, you want to start your own Coffee Shop and don’t know where to start? Well, with dozens of coffee places around the corner, some research can be good to start out on the right foot. While some might think a coffee place would always run, too many in the same area can pit some stiff competition. You’d also have to think about how you’d like to get establish the business – with a franchise that already exists or perhaps a brand new business. In either case, there are several aspects that need to be thought about before you officially start your Coffee Shop Business.

Ready to lay out some facts and figures? Grab your cup of coffee and read along this step-by-step guide to pinpoint what you need with your business. Establishing requirements can be a good way to get started with the decision-making process.

Steps to Start a Coffee Shop Business

Starting out with an absolutely clean slate, here are some things according to which you can start chalking out your plan:

1. Business Vision or Franchise Purchase

To begin with, you need to have a clear vision in mind regarding the kind of shop you’d like to start. You can either purchase the franchise of an existing coffee line and build it with their standard regulations in consideration or take the step to start out with a brand new business and coffee shop. This completely depends on your business vision.

While a franchise would bring in, the coffee shop label’s loyal customers and simplify the design and menu aspects that you won’t really have much control over, you’d also be needed to pay out royalties regularly with profits accumulated from the business. If you’d like to start out with your original vision and a new shop, there would be design, food and beverages, and several other details that will need to be catered to. You will, however, have a lot more control over decision-making, fewer legalities to cater to, and sole rights to profits and ownership. While no way of starting out a coffee shop can be called better than the other, these few factors can be considered to make the call here.

2. An Optimal Location and Ambiance

Once your business vision is clear, the next step is to get started with the hunt for the right location. This is, in fact, one of the most important steps. Where you start your shop will have a great impact on what kind of customers you attract and how regularly.

For instance, a coffee shop will run much better in a marketplace or professional locality than one near residential lots. One is more likely to grab a cup of coffee on their way to work than when at home where they could make their own! This would be highly subjective depending on the statistics and location metrics of any specific location that you consider. Who are you targeting? What would be the cost of renting a place in that location? Consider these factors and the competition around to pin down your target location along with a vision of the shop ambiance you want to go for.

3. Coffee Suppliers, Menu, and Food Safety

Well, for a coffee shop what coffee and food you serve would be pretty important. Having fixed your shop business and design visions, the next job to get to is deciding what your menu would serve. While coffee would be an obvious listing on the menu, what coffee suppliers you choose and other food and sides on the menu will also speak about your brand. Would you like to list some bakery items in your menu or perhaps a separate chef for some quick sides to serve?

Food safety and regulations also constitute a significant metric in getting started on the right foot. Even though this would be checked and implemented at a much later stage, it should be included in the budget and plan from the very beginning.

4. Baristas, Chefs, and Staff

You surely can’t have a coffee shop without a skilled Barista on board and staff members with dedicated roles. If your menu includes fresh food articles, then a Chef is also on the list. Make sure you get the best professionals for these roles in your coffee shop. The right coffee served with an aesthetic “cream art” by a seasoned barista or a polite staff member making the customers feel welcomed can make more of a difference than you’d think!

5. Pricing and Equipment

With all ideation aspects set and ready to go, it’s now time to get down to business requirements – starting with pricing, which would be the crux of the business. How would the food and beverage articles be priced? This would depend on the ambiance you are providing and any novelty in your dishes along with the quality. You could take some inspiration from the competition around to ensure you are not overpriced yet get the value for your services. You would further need to list out the coffee-making equipment and other infrastructural requirements for your coffee shop.

Draft a solid Business Plan

With all your requirements and ideas in place, you can start out with drafting a business plan that is custom fit for each aspect of your would-be coffee shop. This would include all details and requirements along with how you plan to execute them. You must also include a budget plan that will list out the upper limits for your allocated budget in each domain. This can help you spend in control while also having a clear idea of the investments you make. Draft a plan which includes the finer aspects, such as legal procedures, licensing, and business protocol, so everything can be listed on paper for loan approvals or to get investors on board.

With Upmetrics, you can readily create a custom coffee shop plan with all essential aspects included. Have a look at our Coffee Shop Business Plan Template to get started!

Summing Up

Thus, you can start the perfect, cozy coffee shop with the right planning and ideation from day one. Be sure to market to the right target groups before the official launch and convey your brand vision accurately.

A coffee shop is a place where people walk in for a quick snack, a casual date, or even to use the Wi-Fi for a quick work session while sipping on their favorite brew. Keep in mind to maintain an authentic aesthetic and a space that makes folks comfortable to hang out. With the right combination of aesthetic and functional, your coffee shop will be sure to hit the charts!