Starting a café requires devotion and tenacity. It’s challenging to have the patience, knowledge, and money to reach the grand opening. You may have thought about your cafe for years, but in the few months leading up to the opening, you’ll earn the titles of entrepreneur and business owner.
Profitability and Preparation
Is owning a cafe profitable? Gross margins for cafes can run as high as 85 percent, but small coffee shops tend to have an average operating income of just 2.5 percent of gross sales. It is easier to manage than a sprawling establishment, but establishing a distinct niche and captivating a devoted customer base demands a concentrated effort.
Finding the right concept for the right location to serve the appropriate target market will be a significant part of your café planning. One of the best ways to get started on the path toward opening a cafe of your own is to actually work in one, learning all you can about the foundational activities that go into keeping the doors open, such as customer service.
The Path to Launching Your Café
Is it difficult to start a cafe? While there are various ways to attract customers, it is also one of the most challenging businesses you could open. Here’s a quick guide on how to start:
- Defining a Cafe in Your Region: Learn the cafe industry stats.
- Bringing Your Concept to Life: Assemble your concept and design.
- Legal Steps: Apply for licenses and permits.
- Getting Equipped: Obtain the necessary equipment.
- Technology: Find a POS system.
- Supplies: Choose your suppliers.
- Marketing: Strategize on how to market your cafe.
- Hiring: Choose the right employees.
- Grand Opening: Launch your cafe successfully.
To start a cafe, one of the first steps is securing a location in a high-traffic area to help attract customers. Importantly, a critical step in starting a cafe is to complete your business plan.
To guide you further, here are 5 simple steps on how to start a café:
- Start with market research, pre-launch planning, and preparation.
- Find the perfect location.
- Finalize your business plan.
- Get financial aspects sorted.
- Prepare for your opening day.
The cafe industry, worth $44 billion in 2016, is expected to grow over the next few years. Starting a cafe has benefits such as lower start-up costs compared to other small businesses, and it allows scaling up as needed. Not only do cafes face the usual challenges of standard businesses, but they also confront unique pressures of working in the hospitality industry. Read our practical guide for more details on starting and running your own café.