How Profitable Are Coffee Shops – Is Coffee Shop Business Profitable?
Looking for How profitable are coffee shops? Then here you find all related information regarding the same.
Many people continue to start their own business if they start with small businesses. Unless you have a large capital, you cannot become a boss by opening a large business. Opening a coffee shop is also a profession that embellishes people’s little dreams. The coffee shop of your dreams is not of course selling tea and coffee in a tiny shop.
How Profitable Are Coffee Shops
Yes, coffee shops are very profitable and many business owners of the same are earning great. You can also open a coffee shop and start your entrepreneur journey to a successful businessman.
It comes in the range of small business to medium scale business. And you can average profits more than $20000 to $200000.
It is up to you how you manage and grow your business. In this article, I have explained all the information from and opening a coffee shop to the requirements of the business that make you decide whether you should start this business or not.
How to Open a Coffee Shop?
Here are some steps you need to follow for opening a coffee shop business:
Finding Appropriate Capital
Regardless of whether it is small or large, the cost of a coffee shop is always high. If you have capital in your possession, you should get ideas from knowledgeable people to invest in this business. If you do not have capital, you can apply to banks and withdraw credit. Remember, the coffee shop cost will not be as little as you think.
Creating a Business Plan
You should determine the coffee shop you will open in your mind and calculate every step you will take. You should consider the size of the shop you will open, the type of product you will offer to the people, the financial situation, the income you will provide, the service you will provide, the advertisements and campaigns you will make, the coffee shop name, the signage options, the colours of the menu you will create, the interior colours of the shop, the decoration elements.
Locations to be chosen
If you are aiming to have good earnings, damage to your business and regain your invested capital, you should make the best choice for your shop.
Read also: How to Start a Tea Shop Business
You need to open a coffee shop in areas with a lot of human traffic. If you open a coffee shop in a corner and remote places, nobody may be aware of your existence and your earnings may decrease. Buying a place that used to be a coffee shop can give you positive results. Because people are aware of this place, it can be a click easier for you to gain customers. It is always lower to work on something that also exists in terms of cost.
There is also a legal dimension in this business. For the shop you will open, there are documents that you need to get from the municipality, tax office and trade chambers. You can choose an accountant for yourself and request other necessary paperwork from there.
Signboards and Decorations
You can completely design the shop set up according to your imagination and taste. You should pay attention to the colour harmony and the sign for your dream shop.
Read: 8 Best Business Opportunities During Recession
Wall colours, tables, chairs, even plates and glasses should be complementary to each other in shop interior decorations. You can make the colour match in your own mind according to the coffee shop concept you will create. This may be a little different for the transfer process. If you take over an existing coffee shop, you will continue in the same way unless you make changes.
Advertisements and Openings
When you open your coffee shop, you must make an opening and announce your name. You have to make people aware of your existence. You should announce your opening by preparing an interesting poster. You can make special campaigns for the opening day and collect customers.
Creating a Menu
If you have decided on the concept of the coffee shop, there are only menus left. Instead of informing people about product types, people always like to make menus. Because constantly asking the price of something makes people difficult. You should make a menu of all product types and prices. You can design your menu according to the shop colours and names.
You have to find a supplier for the products you will offer to people. You have to keep good contact with suppliers and distributors. You should look for high quality at an affordable price in product supply.
You should recruit staff at the kitchen, on the counter, as a waitress or barista and provide training by explaining the working conditions. Have your kitchen staff prepare food that will appeal to people in the best way possible. Make sure that people working at the counter, checkout or as a waitress get information about how to communicate with people.
Do Customer-Oriented Work
At first opening, you will not have fixed and many customers. You will create your own existing customer base. It is very important to be patient in this business. You can attract people by making campaigns aimed at students and young people. You should follow such programs of your competitors and if you want to be ahead, you should always climb the ladder one step faster.
Find out what campaigns your competitors are doing, how they work for people. Research constantly to improve your business. Do whatever it takes to add more of a product. Always keep your eyes and ears open to ensure success.
Features that Should Be Found in An Entrepreneur to Open a Coffee Shop or Coffee Shop Business
Owning a coffee shop will not be as easy as you think. Because many entrepreneurs open coffee shops and aim to progress in this business. Since you have a large number of competitors, you should pay attention to every step you will take in the work. The things you need to do are as follows;
- First of all, you should test yourself whether you are a good entrepreneur or not.
- You have to be patient and well-intentioned with people and employees.
- Before entering this job, you should determine what the coffee shop you are going to open and get information about it. For example; If you open a coffee shop on hookah, you should know how the hookah is installed. Because at the very beginning, there will be no one else to teach your employees this job except you. Maybe you won’t be able to recruit until you get yourself and your job together from the very beginning.
- An entrepreneur should also be found; You need to have the characteristics of self-confidence, correct timing, being punctual, being ambitious in your job, having all kinds of information about the place of business, being a researcher and being patient.
- You should not give up immediately against difficulties. In cases where everything does not go the way you want, you should not get bored and take care of your business.
- You should be fully informed about the financial part of the subject and make your calculations in a planned way. You can also work with someone who knows this job. You should not let go of control of the money and expenses.
- You should stay at the beginning of your work for hours, if necessary, until the morning, and follow the process. At least until they hold on and something gets on track.
- You have to work completely planned. You have to get rid of the sentence “There is no death at the end, no matter what happens”. Otherwise, you will waste the capital you have invested in this business.
What Are The Materials Required To Open A coffee shop?
Freezers, deep fryers, ovens, coffee machines, dishwashers, tea machines, pots, french press for herbal teas and filter coffees, toasters, cooker, ice machine, blender, mixer, presentation plates, cups, trays, various glasses, ice cream cabinets to sell ice cream according to the season, beverage cabinets for drinks that need to stay cold such as coke, fruit juice, for table design; for napkin holder, table number, table menu, sauce dish, safe; POS device, cash register, and bill.
Documents Required to Open a coffee shop
To open a coffee shop, you need to obtain the necessary documents from the municipalities of your province or district and the tax plates from the tax offices. Other documents may be requested from your local council. But the general documents are as follows:
For the shop license;
- If you took over your shop instead of zero, a petition for transfer,
- Photocopy of permit document showing that two buildings are available
- Two photocopies of title deeds
- Two passport photos
- If your store is rented, a rental agreement
- Registration document showing which room you are registered in
- Trade or tradesmen and craftsmen registration certificate
- A report from the fire department
- Hygiene certificate to be taken with a course from public education
- Photocopy of a signature circular for non-real legal entities
- The petition showing the unanimous vote of those living on the floor for the places that are regarded as residences in the title deed.
- Identity information, criminal records and health reports of the employees you will employ
- A petition showing the majority of the flat owners’ votes for places that are considered as workplaces
Tax process and tax plate;
- If the shop you keep is rent, the rental agreement
- Signature circulars of the starting person
- A photocopy of the identity card of the Republic of Turkey
- Certificate of residence
- Completed employment form
- Declaration form to be filled in the tax offices
How Much Does it Cost to Open a Coffee Shop? (Coffee Shop Cost Breakdown)
To calculate the cost of opening a coffee shop, you must first decide on the concept. There will be an increase or a decrease in price according to each concept. For example; If you keep a small shop, the rent will be lower than the big shops. This will reduce the cost. If you keep the variety in the interior decoration you create too much, the cost will increase. If you choose the best quality and low cost of suppliers and wholesalers, you can create an affordable cost table. So everything is in your hands at the shop cost. You should know that shop costs are not as cheap as you think. Prices may vary depending on the quality, size and type of the products you choose. The costs of opening a coffee shop are as follows;
- Table: 600-700 TL
- Freezer: 1500-2000 TL
- Fridge: 2000-2500 TL
- Fork, spoon, knife, plate sets for a table: 40-50 TL
- Deep Fryer: 700-750 TL
- Bakery: 2000-2,500 TL
- Coffee Machine: 550-600 TL
- Chair: 150-200 TL
- Cash Desk: 1000-1500 TL
- Toaster: 450-500 TL
- Dishwasher: 1500-2000 TL
- Main materials required for the kitchen: 1400-1600 TL
- Tea Maker: 500-600 TL
- Table Top Materials for a Table: 100-150 TL
- Cash Register: 500-600 TL
- coffee shop Interior Decoration and Kitchen: It can vary between 20,000-50,000. There may be an increase or a decrease in the price according to your own taste.
We researched the materials and costs required to establish a coffee shop business for you. Based on this information, you can own the coffee shop of your dreams by creating sufficient capital. Or you can get a dealership from institutionalized coffee shops that give dealership opportunity.