To successfully set up a standard small scale coffee bar business in the United States of America, you would need an estimate of about $75,000 – $250,000. On the other hand, you can choose to start a mobile coffee business, which is not as capital-intensive as renting a shop.
Steps to Start Your Own Coffee Shop:
- Make Your Business Plan
- Find The Right Location
- Get Necessary Permits and Licenses
- Buy Equipment
- Hire and Train Staff
- Promote Your Shop
Market Analysis for Opening a Coffee Shop
Perform a market analysis and create a marketing plan to understand industry trends and tailor your offerings to meet customer demands. Focus on analyzing local coffee businesses that are direct competitors.
The average cost to open a single coffee shop with seating in the US is between $80,000-$300,000. However, the cost of a coffee food truck or kiosk is on the lower end, closer to $60,000 for the minimum possible cost.
Cost Estimates:
- Small coffee shop with seating: $45,000 to $200,000
- Large coffee shop with seating: $75,000 to $350,000
- Franchise coffee shop: $125,000 to $350,000
- Café & Bakery: $125,000 to $350,000
Money Needed Upfront
You probably will not need 100% of the money upfront. The amount required depends on your coffee shop concept and situation. Costs can be categorized into one-time and ongoing expenses.
Potential Returns
While opening a coffee shop may involve extensive costs, they offer high potential returns on investment. Consider starting with a mobile coffee cart as a lower-cost entry point.
Opening in New York City
Starting a coffee shop in New York City presents a good business prospect with significant growth potential.
Rural Area Coffee Shop
Expect to invest $50,000 – $150,000 for a small rural coffee shop, depending on whether you’re renting or owning the commercial space.