Now a staple part of many workers mornings and
afternoons, with hundreds of drink varieties, beans and flavours, coffee’s ever
enduring popularity has made it a potential gold mine waiting to be tapped by
creative and ambitious coffee shop owners. In Britain alone a staggering 85% of
people visit a coffee shop once a week, which doesn’t even take into account
the bean or filter coffee consumed at home. Australians by comparison –
according to this 2014
infographic – are not far behind the Brits, making for an area of business
ripe with potential for profits, correct?
Well yes and no, even one of the most lucrative
businesses can fail due to a mixture of high competition, constantly evolving
trends and a need for top coffee knowledge in terms of both taste and
production. To equip yourself for the challenges of opening a coffee shop you
will need the right mixture of passion, planning, persistence, understanding
and luck. We at Nisbets would like to give a quick tip guide to help you along
your journey, whether you’re a veteran barista or a newcomer to the grinding
field, on some basic but essential points to guide you towards a lively and
successful coffee shop.
1. Location, Location, Location
When you want that fresh cuppa to kick off your
day, you’re not going to want to go several miles or even streets away to enjoy
your morning ritual. Apply this mindset to your customer base and you’ll
quickly realise that location can kill or crown your establishment before it’s
even opened its doors. Be aware of the type of customer you want to attract and
build from there, if you want to grab the business crowd before they clock-in
each morning then are you looking near the local business parks, or if you want
to attract shoppers have you set your sights near a high street? If you are
unsure then sticking to a central location where people are guaranteed to
gather is always a safe bet. Luring customers to your cafe with a quality
product is one thing but it takes time to establish a reputation to do so, for
the starting months you need to offer convenience above everything else.
2. Recognise Quality When You Taste It
Being a coffee shop owner extends further than
having a solid business plan and a good working knowledge of the equipment and
processes involved, it includes assessing and understanding the balance and
taste of every bean you sample. From a coffee’s sweetness, to its balance and
acidity you need to know a good cup of coffee before any of your staff or
customers do. This requires a passion to learn and develop your personal
knowledge of the drink, take accredited courses and strive to perfect your
niche as well as your overall understanding. To teach other staff and to become
the best in the business, you need to know the facts and when you’ve caught
onto the next best bean.
3. Find the Right Equipment
The
size and style of your cafe can make a massive difference to the type of
equipment you want for your kitchen. If you’re expecting to make coffee for a
large customer base then you may wish to invest in a coffee percolator that can
match demand. On the other hand if you’re looking for premium quality coffee and
a machine that increases your aesthetic, then something built for start-up
businesses like the Sanremo Capri Coffee Machine would be a better fit.
Speciality machines may be a viable option if you’re addressing a niche market,
however acquiring items that can make good quality lattes, cappuccinos and the
other core beverages of a coffee shop menu, speaking of which...4. Stock the Local Favourite
Dependent on what country or city you choose to set
your foundations, the staple drink for locals can differ dramatically. Whilst
there a variety of reasons for this from pricing standards to the personal
history of the area, all you need to know is what drink sells well and what
price to set it at. Sample the local competition by probing their menus, trying
their lattes, cappuccinos, flat whites and others while paying attention to
what other customers are buying. For further assistance this helpful infographic
from Hospitality Magazine gives a comprehensive assessment of coffee prices,
preferences and sales at both a national and county level. Your business may
have a niche market but it’s always good to have the local favourite to fall
back on.
5. Know Your Niche
Speaking of niches, what do you want to provide as
your specialty? Once you have a solid quality menu, the only thing to truly be
distinguished from other high-end coffee shops is to provide something that
others don’t. Perhaps you wish to provide a variety of dairy alternative soy
and goat milks for the lactose intolerant, or you want to supply cold
coffees for the summer crowd. Whatever your preference this requires hard
research and attention long before opening day, even if you don’t plan to
highlight your specialty until later in the game.
6. Service = Success
A successful coffee shop thrives through one thing
alone – a large and loyal customer base. The majority of any shop’s profits and
interests are generated by return customers, people who know the business, know
the people and above all love the coffee. Ensuring high quality coffee is a
core principle for success but your place could be won or lost by something as
small as a quick over counter conversation. Get to know your customers and let
them get to know you, ensure that that person feels appreciated and wants to
come back for more. This also means finding the right staff to match your ethos
which takes time, so hire slowly whilst volunteers or friends fill the gap in
the short term. Additional elements like music, temperature and lighting can
also have a significant effect, balance the three to create a welcoming
ambience that customers will be reluctant to leave.
7. Hit the Market
In order to get the customer into your shop in the
first place you need to stir up some excitement before opening day,
issuing out leaflets and other marketing material on the day just isn’t going
to cut it. Never underestimate the strength of social media as a marketing
tool, post images of your special recipes on Instagram whilst tweeting on
forums and business pages. Ask local companies to promote your store in
exchange for similar services or start providing free samples on market day,
when it comes to promoting a brand there is never too much that can be done.
A Few Final Words
These are only snippets of what you may or must
consider when preparing to open up shop, and there are numerous other factors
that you should mull over before going ahead. There’s the obvious financial
aspect of running a business – including providing for the first six months
from opening which traditionally don’t turn over a profit – alongside tax and GST.
Taking tips from an experienced professional or researching a fellow owner’s
business plan can offer essential guidance during the hard beginnings. Our
recent blog on ramping up
your coffee business for insider tips on improving the services you offer,
as well as our blog on naming
a restaurant to give you an idea of how a name can enhance as well as
reflect your business style. Building a reputable company amidst an already
busy and competitive market can be a daunting proposition at first but with
ample research, charisma and drive you can achieve all this and more.
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