Hello World! Welcome Friends! At some point in every coffee lover’s life, they ask themselves if they should exit the corporate rate race and open up their own coffee shop. They have the whole concept laid out including what the furniture will look like, even down to the coffee machines you want from Caffe Tech.
Luckily there are a lot of resources out there to help you actually take the plunge and open your own cafè. But, even with all the business acumen in the world, if you don’t have the right location, you are destined to fail.
In this article, we will go over what to look for in your ideal location to start a coffee shop.
Photo by Nathan Dumlao on Unsplash
Research the Demographics
Think about the type of coffee shop that you want and then do some research into the type of person that would want that type of cafe nearby.
For instance, if you have a lot of foot traffic in the area you are looking into, but those people are too busy to sit around a relaxed shop, then you won’t have much success. Your offering needs to be what the demographic is looking for.
An area like this business park in San Ramon is going to attract a lot of people getting coffee and breakfast before they start working and then again on their lunch break. An area near a university will have people looking for a comfy place to sit and study over a cup of good coffee.
Understand what it is you want to do and then find the area with the people that are looking for the same thing.
Look at Other Businesses in the Area
In addition to understanding the demographic, you also have to understand the needs of the neighborhood. Check out what other businesses are operating in that area.
Once again it involves understanding what your business offers. Then you can look around and see if others are offering the same thing. There may be other coffee shops in the area, but if they are only doing quick sales for coffee and snacks to go then you may find a gap in the market by offering a relaxing and cozy place for people to sit and relax with their coffee. The reverse is also true if there are too many cozy shops and not enough there for people in a rush.
Know the Average Rent
Profit margins are razor thin when it comes to coffee shops. It takes a lot of coffee to be sold plus food options to make a profit. Your rent is going to factor very highly into how difficult it is to make a profit.
Research what the average rent costs are for the area you are targeting so you can calculate what your expected operating costs will be.
You may need to be flexible when it comes to the area where you plan to open up as the most desirable locations will come with a hefty rent price.
Click the links below for any posts you have missed:
The Strengths of Made in Italy Design in Kitchen Furniture
6 Ways To Keep Your Home Mold-Free
Tips for Creating a Healthier Home
3 Home Improvements on the Outside
3 Tips for Choosing a Good Roof
Hiring A Professional Restoration Company
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