With 66% of Americans drinking coffee each day, demand is strong for this brewed beverage. And if you’re passionate about coffee drinks, you might be cooking up a plan to start a coffee shop business of your own. But running a successful coffee shop is about more than roasting beans – and it isn’t cheap.
Read on to learn about the cost of starting a coffee shop!
Consider the Location
One of the biggest factors impacting the cost of a new coffee shop is its location. You’ll need to know if buying or leasing makes more sense for you financially. You may want to seek a building that’s already been set up for a food industry business.
Look for places that are accessible from major roads. You can save by choosing a location in an up-and-coming area.
On average, you can expect that opening a coffee shop in a brick-and-mortar building will be close to $100,000 at a minimum. With a kiosk or drive-thru option, you may be able to get closer to $60,000 with your overall cost. On the high end, you may spend over $300,000.
Look Into Building Decor
People like to linger in coffee shops, so you’ll need to create an inviting environment. Are you choosing luxury tableware for your restaurant? Or do you envision more of a modern, utilitarian sense of style?
Regardless of your choice, you’ll need to budget for things like tables, chairs, and stools. You may need to finance fresh paint or new floors, too. And don’t forget about signage, lights, and other decorative flourishes.
Factor in the Equipment
Starting a business means investing in the equipment necessary for the job. For a coffee shop, make sure your business plan has a budget for fridges and freezers. But you’ll also need a host of coffee-making equipment, much of which is not cheap.
You’ll need an espresso machine, a commercial grinder, and brewing tools. You’ll also need coffee beans, which you may want to roast yourself. In that case, you’ll need roasting equipment, too.
Add in Staffing Needs
You won’t be able to run an entire shop on your own. You’ll need at least a few staff to get your new business off the ground, and you’ll need to pay a competitive wage.
Interview applicants and look for individuals with strong communication skills and a willingness to learn new skills. And plan on investing in training. If you want your shop to succeed, your staff will need to master the art of brewing coffee and making breves, mochas, and more.
Don’t Overlook Marketing Costs
Lastly, don’t forget that you’ll need to market your business. This means designing a stellar logo and creating a presence on social media.
You may need to use paid ads. And you’ll need to assign a staff member to handle your marketing efforts. Be prepared to post pictures and reels while running incentives to attract people to your business.
Understand the Cost to Start a Coffee Shop
The cost to start a coffee shop hinges on several factors, including where you establish it. You’ll also need to account for equipment and decor. And, of course, you’ll need staff to help run your new business.
Find more tips to make opening a business easier. Check back soon for new articles!