Why Do Most Cafes Fail?

Preparation and Research

• Research shops, observe operations, talk to owners
• Read about the industry
• Master brewing and marketing

Competition and Standing Out

• High competition saturates areas
• Newer shops must stand out
• Running a shop looks easy but many working parts exist

Understanding Customers and Location

• Opening where few buy gourmet coffee ensures a short lifespan
• Upsell and cross-sell

Avoiding Mistakes and Management Issues

• Avoiding mistakes keeps a business afloat
• Management issues trickle down to service
• Have the right team
• Be humble and patient
• Location matters – base it on customer demographics and traffic flow

Capital and Leases

• Seek attorney guidance
• Have capital for emergencies and inventory – beans, milk, cups
• Don’t sign bad leases
• Capitalize on trends but avoid fads