Coffee Shop Failure Rate and Reasons
What is the failure rate of a coffee shop? A recent survey observed that 50% — 74% of independent coffee shops fail in the first five years.
Why do independent coffee shops fail? One of the main reasons is their poor locations, slim profit margins, inadequate pricing, and lack of cost control measures.
Coffee Shop Business Insights
According to Small Business Chron, coffee shops make an average annual revenue of about $215,000 by selling about 250 cups of coffee daily.
Why do 80% of coffee shops fail?
50% of independent coffee shops fail in the first five years, with 74% closing within twelve months.
In the coffee shop business, the failure rate is high. Almost 50% of start-ups shut after 5 years, and only about 33% make it past 10 years. Reasons for failure include bad leases, high costs, overstaffing, and poor management.
While the rate of failure is high, the potential for success remains. Good planning and management play a crucial role in overcoming challenges and ensuring the success of a coffee shop.