90% of people believe that it’s easy to open a coffee business.
On the one hand, they are right. The only clarification is that it is simple and easy to open coffee with yourself only if you know how to do it correctly. Even though the coffee format seems to be as simple as any other business, ignorance of subtleties and nuances can make a profitable and promising business idea a loss-making enterprise, working at zero and sucking out the last penny.
To avoid such a situation, you need to know where to start and what stages of the business should be given the utmost attention.
For example, you should start by determining the target audience of coffee with you. By asking yourself who will buy your coffee, you can adjust both the design and strategy, as well as the concept of your small business to the needs and demands, interests, and desires of specific people – your future customers.
The target audience of coffee with you – is mainly young people from 18 to 24 years. In 70% of cases, they are girls.
Students, young professionals, lower-level managers – these are your potential customers. They appreciate low prices, friendly service, efficiency, and social activity. Of course, people of an older age should not be discounted either, there are coffee fans with themselves and among people over 50. But if you face the truth, answer yourself the question, how many such fans will pass by your point of coffee with you every day, and how many of them will think about buying?
After all, it is the number of people passing by along with their “quality” (belonging to the target audience) and is the key to the success of a point of coffee with yourself. Finding such a place means half the success for coffee with you.
However, do not forget about another important fact for the business of coffee with you. This is the taste and quality of the coffee itself. If you make delicious invigorating drinks, then you will be returned to you, will be recommended to friends and acquaintances. So you will be able to achieve that spontaneous purchases will be reduced, and the number of regular customers will increase.
We will tell you about all these subtleties and other important little things.
Coffee machines for coffee with you
If the choice of the rental location will depend on the flow of clients, it will depend on the equipment on which you will make coffee, the ability of the point to quickly and efficiently serve this flow.
Professional coffee machine and coffee grinder is the main means of coffee preparation and sale with you.
It makes no sense to put a home coffee machine or even a super-automatic coffee machine on the point of coffee with you. Firstly, such a technique will not be able to provide the necessary product quality, and secondly, it is not designed for continuous and uninterrupted operation. And if the coffee machine breaks down, you will not sell a single cup of coffee anymore. Remember, the stingy pay twice: time spent, money wasted.
Usually, coffee equipment for rent (even free) is provided by coffee bean suppliers, provided that a certain amount of coffee is purchased from them. At the same time, they also advise on the selection of the necessary list of equipment depending on the expected amount of work (eg, single or double-chamber coffee machines) and provide maintenance and repair of equipment.
What else will it cost?
You will also have to spend money on a sales counter or design of a rented kiosk. Naturally, when designing the appearance of a coffee shop, you should pay attention to the fact that it attracts attention and looks. The appearance should cause a reflexive desire to drink coffee or tea. The name on the sign should not subtly hint at the fact that a refreshing drink is poured here, but shout about it, so that a person at a glance understands that you are offering coffee, not selling donuts or SIM cards…
Returning to the investment needed to start a business with coffee, it is also worth mentioning all sorts of little things that are nevertheless important for comfortable work without failures and overlaps.
Purchase of consumables for preparation of various coffee drinks – milk, toppings, and syrups; additional assortment – snacks, sweets, and snacks; purchase of disposable cups, lids, spoons; purchase of bar equipment.
By the way, there is an option to save on the purchase of consumables – for example, disposable tableware, if you can cooperate with other owners of coffee with yourself, buying non-branded cups.
Consumables should be purchased for several months at a time. What can not be said about the additional range and different syrups? If without coffee and cups, the work of the point of coffee with you just stand up, the absence of sneakers or nut syrup can not slow down the process. At the same time, launching a coffee point with yourself, you can “in the process” adjust the offered range of sweets and snacks, as well as coffee additives – depending on the demand of the customer audience.
Also, you should immediately include the cost of rent, utilities, the printing of advertising leaflets and other printing products, as well as barista salary in the amount of the initial capital.
Expenses for employees at the launch stage can be avoided if you personally work at the point in the first month. Naturally, provided that you have the necessary knowledge and skills and have passed at least the minimum course of the barista. But know that combining business and direct communication and customer service is not an easy task. One day, you will still have to find the right employees, train them, and monitor them by paying your salary.
Naturally, you must also look for suppliers of consumables and raw materials.
And first of all, you need to decide on the supplier of coffee beans. If your coffee will not like customers – everything is gone. Delicious coffee is one of the main components of the success of the coffee business with yourself. There are a lot of coffee varieties that suppliers can offer. Both your own taste and the advice of the suppliers themselves, as well as the analysis of competitors, will help you to be oriented in your choice.
If you purchase your coffee equipment, you will not depend on a particular coffee supplier and the range of coffee varieties offered can be much wider.
Find out if your chosen variety is suitable for classic coffee beverages since it is the usual espresso, latte, cappuccino, Americano you will specialize in. The volume of the initial purchase will depend on the conditions on which you sign a contract with the supplier, whether you will rent equipment, etc. There is no need to be afraid of numbers 10 kg or more.
A small glass of 200 ml coffee takes 9 g of coffee and 18 g – for a glass of 400 ml.
Thus, the purchased 10 kg of coffee will take just over 1100 small cups of coffee. In this case, a working point of coffee with you in the passable place for a month sells much more.
In addition to the coffee card, you need to make a menu and a list of additional assortments. Will you sell various chocolates and sweets, or maybe ready-made sandwiches or even baked goods?
If the answer to this question is yes, you should look for profitable suppliers or partners who can provide you with the necessary amount of products, usually not too large. You can buy chocolates or oatmeal cookies at wholesale markets and bases.
Of course, the main component for a point of coffee with you will remain coffee as a drink, and various sweets and “snacks” are needed rather only to increase the average check and convenience of the client. You will hardly be able to make money on chocolates or bakery. Still, the marginality of resale of other people’s products is small.
In general, the volume of additional assortment does not exceed 5-7% of the turnover.
The assortment of snacks and coffee supplements will change – some positions will disappear, others will be added. It is definitely necessary to experiment with the assortment, but only when the work of the point stabilizes and the changes will not lead to a sharp drop in revenue.
Barista for coffee
An important factor in the success of a coffee point is the professionalism and competence of a barista. This person should not only prepare tasty coffee but also properly serve the clients, communicate with them, be able to interrogate them, thus increasing the average check. With the search and hiring of such a person, there may be certain difficulties both at the launch stage and at the first time of coffee work with yourself.
Opening their first point of coffee with you, entrepreneurs often personally stand at the counter and serve the first customers, working 12 hours a day, without weekends and lunch. But such work on two fronts quickly exhausts. In any case, the entrepreneur will need a replacement or a full employee. At the same time, it is not always possible to hire a professional barista. Basically, young people who have no idea how to properly prepare coffee to respond to a barista vacancy. They are attracted by flexible schedules, hourly payment, etc.
Unhelpful young barista coffee brings friends to work so that it would not be boring. And instead of working, they arrange a banter.
The peculiarity of working with the staff of the coffee point is a large staff turnover – which will stop only when you hire the right person-friendly, honest, hardworking, and responsible, who will also quickly master the art of making delicious and quality coffee. You should agree that such people, especially young people, are rare today…
Therefore, the future owner of coffee with you for the first time will face the task of finding and training a reliable person who can replace you at the counter. Later, if you do not stop at the opening of one point of coffee with you, the need for employees will increase. Therefore, it is necessary to immediately decide on the stages of selection and training of employees, as well as to develop a shift schedule, motivation, and control system.
One of the options for barista motivation is bonuses or bonuses for over-fulfillment of the sales plan and absence of comments (percentage of total revenue or percentage from each sold coffee over the plan).
But even the system of motivation does not insure against unscrupulous workers who do not go out on their shift, arrange at the point of banter or simply treat the work superficially. The owner of coffee is faced with an acute question of controlling the employee or shift.
Optionally, you can install a surveillance camera on the point of coffee with you and thus monitor the employee online.
Regardless of whether you choose to work with the staff – whip or gingerbread – opening the coffee point with you, be prepared that at any moment you will be forced to personally stand at the counter and work as a barista.
Location of a coffee business
If you plan to open a coffee spot with you, know that all your profits will depend primarily on the location. At the same time, choosing the right location for your coffee with you may be one big problem.
A couple of years ago, when nobody heard anything about coffee with you, landlords, especially large shopping and business centers, did not understand how to make coffee on three square meters and refused to rent it. Today, almost all the tasty places in the little-small large shopping centers and BCs have long been occupied.
Nevertheless, the rental market is quite competitive and involves a change of tenants. It is only a question of price. If you have found a tasty place, but it is busy, you should start negotiating with the owner or rental department, find out the rental rate and offer to pay more, or convince that your point of coffee with you can generate additional traffic and attract a certain audience.
By the way, you can open a point of coffee with yourself not only in metropolitan areas, where the lifestyle encourages people to do everything on the run, including drinking coffee but also in small towns. Moreover, finding an advantageous place for coffee with you in a small town is even easier – points with high pedestrian traffic in small towns are less, so the probability to choose an unsuccessful place is reduced.
However, it is still quite easy to make a mistake in choosing a place to rent a coffee with you. It often happens that a location has a seemingly high cross-country ability, but it is possible to estimate its quality only when you start working. For example, it may turn out that there is simply no target audience among the traffic passing by.
When looking at locations for coffee with you, you do not need to limit yourself to renting in shopping or business centers.
A favorable place may be, for example, in the construction hypermarket.
Of course, the most profitable is the rent in shopping and entertainment centers. Business centers are also promising, but they are more susceptible to the influence of economic changes and can go down in two or three months, leaving a coffee spot with a single customer. Coffee points do not always take root at public transport stops and underground passages, which seem to be characterized by high pedestrian traffic. Another conversation is if you can rent a “glass” kiosk near universities, on the main pedestrian streets of the city, or in the business center.
Remember, the economic performance of the coffee shop with you will largely depend on where you rent and where you pay rent. For example, the impact of the season on your profits will also depend on where you rent. If you rent a kiosk near a university, expect to see a drop in sales over the vacations. Any other street kiosk will also depend on weather conditions. Rain or frost does not encourage you to stay outside to order a warming coffee, even if it is warm. Therefore, when considering places like this, take into account and plan your expenses, so as not to go down.