How to start a coffee shop

by Startacus Admin
How to start a coffee shop
Coffee - it’s one of our absolute, top of the pile, couldn't live without, favourite things - in fact, it's fair to say that the Startacus office runs on the stuff.
We love it all; the bitter darkness, the intoxicating vapours, the comforting warmth, I could go on and on but the point is if Startacus didn’t run a website we would definitely run a coffee shop! (I wonder what said coffee shop would be named...Cofficus perhaps? Or maybe Startacoffee? Suggestions on a postcard please!)
So, in honour of our beloved black liquor (and our entrepreneurial plan B) this week we are going to take you through some of the things you'll need to think about before you start a coffee sshop of your very own.
Market Research
As with any business, before you decide to open a coffee shop it is very important that you undertake proper market research, some of the things you should consider in it are;
- Where exactly will it be best for you to open your coffee shop?
- Coffee shops are heavily dependent on passing trade so does the location you have chosen have good footfall? Visit on several days at different times to gauge this accurately.
- How does the footfall of the area change throughout the year? For example, a location close to a university or college may experience very high levels of people walking by at some points in the year, but be a near ghost town at others. You may wish to speak to nearby businesses to learn more.
- What kind of coffee shop are you going to open? (One that sells coffee...duh!) but will you have a specific speciality or theme? Is there a market for this kind of coffee shop in your chosen area?
- Do you have experience of working in a coffee shop or other customer service role?
- Are there any coffee shops, tea rooms or cafés located nearby? If so, you should visit them also at different times to see how busy they are, identify who their main market is and see how much they charge. How are you going to make your coffee shop more appealing than theirs?
- Do you plan to be an independent venture or are you considering setting up a franchise coffee shop? (For more info on the pros and cons of buying into a franchise, check out our recent article)
- Are there any grants or startup business loans available in your area that could help you get started?
Planning and Development
Besides learning to be an expert barista, some other things you need to think about are...
- Have you written a business plan? If you haven’t is there anyone who could help you with this? It might be worth speaking to someone who already runs a coffee shop (though obviously not a competitor, that could end badly!)
- Have you found a premises for your coffee shop? If so, does it fit your requirements? Is there easy access for the public and stock deliveries?
- Will you be able to have on street signage to encourage passers by?
- If you are going to have a speciality or theme you need to solidify this now. How will you go about ensuring that it is clear?
- Think about the equipment and furnishings you will need for the store, how much will this cost and where will you get it from? Many coffee shops and cafés use second hand furniture because A)It’s cheap and B)It can lend a warm, homely feel.
- Do you plan on working in the coffee shop full time from the get go? Will you need to hire anyone else? How much will you pay them and how will they be recruited?
- What will you call your coffee shop? Can you think of a catchy name that will make your business stand out from the rest?
- What other products beside coffee will you sell in the shop e.g. cakes, fruit drinks etc?
- Start thinking about where you will advertise your new coffee shop. Are there any local papers or journals that you could write for about your experiences of setting up a coffee shop? Startacus would be very happy to hear from you.
- Do you have any existing contacts with suppliers? If not, how to do you plan to build this up?
Finance
You don't have to be a bean counter, but you do need to have a clear idea of the figures
- How much is your coffee shop going to cost to set up? Be realistic with this figure and make sure that you build in a contingency fund so that you have something to fall back on.
- If you are going to buy into a franchise be sure that you consider how much money is involved in the agreement.
- Once established, how much are your monthly overheads going to be, remembering to include all outgoings associated with the business.
- It is more than likely that there will be some renovation work needed at your chosen location in order to ready it for being a coffee shop, how much will this work cost?
- Will you have a contingency fund in place just in case the business is slower to take off than you imagine?
- How much money will you need to bring in each month in order to break even/hopefully make a profit?
- Do you plan on looking after the business finances yourself or will you require the help of an accountant?
- Are there any qualifications/certificates that you can get in order to better equip you to run a coffee shop?
- How much is your staffing going to cost?
- Do you have an idea of how much your marketing budget will be?
- Do you plan on giving yourself a salary from the start or will you wait until the business is sufficiently in profit?
- There will be quite a few insurance costs to consider, make sure that you incorporate these into your plan.
- How can you make the most of any grants or startup business funds/loans available in your area?
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
WeWALK, RNIB, and ICL consortium secures UKRI funding to improve mobility for visually impaired and elderly.

The impact of standards, ethics and conduct on business success and profits - Work.Life has some interesting insights...

The lowdown on Space32 - the startup that wants to help hybrid-working businesses find the working space and solution that's right for them.

Global Tech for Good initiative seeks innovative startups and scaleups that are creating positive social impact and enhancing people's lives through tech.

The lowdown on Bidnamic, the startup that's combining advance machine learning with human expertise to help retailers to maximise revenue and profitability from Google Shopping.

Innovative Czech fintech startup 4Trans raises investment to expand first of its type AI driven factoring services across Europe.

Edinburgh-based life science company Cytomos secures funding to support further development of its innovative cell analysis tech.

Ethical Equity and Streets Consulting join forces to deliver Founder Workshop to help close the inequality gap in startup to scaleup funding.

Fancy being featured in this year’s SmallBiz100, which showcases the best of Britain’s vibrant small business community? There's just a couple of days left to do just that!

Screenloop secures major investment to support further development of its AI-driven recruitment platform that helps companies build the best teams and removes unconscious bias.
Published on: 30th September 2013
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- Assistive technology innovators and partners awarded £1.7m project funding 1st Jul 2022 WeWALK, RNIB, and ICL consortium secures UKRI funding to improve mobility for visually impaired and elderly.
- How the pandemic affected each industry 27th Jun 2022 New research from School of Marketing reveals the impact that Covid-19 has had on key business sectors in the UK.
- The Finalists of DBACE 2022 are revealed 21st Jun 2022 The lowdown on the innovative young visionaries that are in the running for this year's Deutsche Bank Awards for Creative Entrepreneurs.
- OKAPI: Orbits raises €5.5m for Breakthrough Space Traffic Management Software 13th Jun 2022 Innovative German SaaS startup OKAPI:Orbits secures investment to support its mission of securing efficient and safe operations in space.