The most controversial debate in this era has got to be Chai vs Coffee. A single preference of chai or coffee can destroy your friendship with a person or cement a place for a new step with a stranger. However, we love both these beverages and would love to provide you with detailed information on setting up an individual business for both.
Coffee has gained a symbol of creativity, entrepreneurship, and intellect. We hold business meetings in these cafes with a hot cup of coffee to keep you alert and awake, so here we are, presenting you everything you need to know to set up a Coffee Business.
Table of Contents
How to Set Up a Coffee Shop Business
The first step of any business model you use for opening a coffee house is to conduct thorough research, and it helps to lay a roadmap for your business to succeed.
- Research: The first thing for starting any business is research. Doing research helps to build a good coffee business plan. Draft a program on the below mentioned.
- Leverage: What makes this business idea profitable? What influence do you have?
- Marketing strategy: A product for all is a product for none. So, find a target audience. They could be university students, office goers, older adults, and parents. Then develop a marketing strategy according to them.
- Form a business and launch: It can be in the form of a Limited Liability Company, Partnership, Single proprietorship, and corporation.
Types of Coffee Business
1. Opening a coffee shop business from scratch/Selling coffee from home
Starting your coffee business from scratch takes the most effort and rewards. Steps to follow to build your coffee business from home.
● Search your target audience.
● Determine what type of coffee product to sell.
● Find your coffee supplier in a cost-effective way.
● Create an e-commerce page and develop your brand.
● Create content by posting pictures and videos of your product offline and online.
● Serve the best quality product consistently.
2. Opening a coffee shop franchise: It is great for people who prefer to go with a proven marketing model rather than create one. Coffee is a business of passion. It creates a long-lasting relationship with customers. Opening a coffee shop franchise costs around Rs10,00,000 – Rs 10,50,000. It requires hard work and a long time to build a long-term relationship with customers.
3. Buying an existing coffee business: It is tough to find a profitable coffee business to be on sale. But if you get a good deal, it is the most rewarding.
Business Plan For Starting a Coffee Business
Always keep in mind that the customer is the king. Whatever type of option you choose from above, a detailed plan needs to have these key factors:
- Finding a good location: Nobody wants to go to a small crowded room to drink a cup of coffee. A big room with ample sunlight, good music, a Wi-Fi connection, and some good books is a must for opening your coffee shop. The place should have a small parking facility too.
- Relaxing Ambience : The first quality of any coffee shop is the soothing atmosphere. Various surveys have shown the main attraction for the customers is a relaxed environment, a sense of familiarity, and a cosy area. Because of the increase in social media marketing, aesthetic-looking places attract more customers.
- Serve the best quality: With an increase in trend and more varieties of coffee available easily at the door, if you want to grow, serve the best quality and do it consistently. It will create a regular clientele. There are many types of coffee, so research about them and vendor availability for those beans.
- Customer service: Nobody will come twice to your shop if you don’t make them feel special. Having a better-trained staff with good communicating skills and a smile alone will create a bond. Your customer will feel a sense of familiarity, and voila! You have got a permanent client.
- Variety of snacks: It is uncommon for anyone to have a cup of coffee and not any snack. Give your customer a range of snacks to choose from. Display your products at the counter. It will create an urge to buy that additional product.
- Loyalty program: Creating a loyalty program gives a sense of belonging. You can provide discounts on their special days like birthdays and anniversaries.
Getting The Right Equipment
Buying the right equipment for your coffee shop is a significant investment, and it requires a lot of research. Let me make this easy for you. You can either hire or purchase new equipment, and both have their pros and cons.
Renting Equipment: It has the benefits of lower upfront cost, Less liability, insured machine maintenance, more flexibility.
Buying new Equipment: It has a limited warranty, cost-effective over the long term, has high resale value, more liability.
Coffee Shop Necessities
1. Espresso Machine: This machine will be the heart of your coffee business. Most of the typical coffee drinks contain Espresso. Some of the best brands are La Marzocco and Victoria Arduino.
2. Automatic Drip Coffee Maker: A standard black coffee has a good demand and will make a good portion of your sale. A good-quality drip coffee maker will help you meet demand on a busy day. They produce good quality, inexpensive and fast delivery. Some brands like Curtis and Bunn are good.
3. Industrial Coffee Grinder: It is necessary to grind your beans and extract the exact aroma and flavour from your coffee. Some of the good brands include Mahl König, Mazzer®, and Bunn®
4. Water filter: It is a crucial step to make a good quality coffee.
5. Milk steaming machine
6. Scales: The accurate weighing of coffee grounds for the perfect taste to come.
7. Kettles: The shape of the kettle is an essential factor in achieving an even extraction process.
8. Refrigerators and freezers: You need to preserve dairy and food freshly. A refrigerated display case is a must. You also need one to store your inventories.
9. Storage boxes, shelves and containers: Boxes and crates come in handy. A practical storage system will help you work smoothly.
10. Ovens and toasters: If you have fast food like pastry, patties and sandwiches, you need a good oven and toaster for fast delivery.
11. POS system: Keeping an efficient point-of-sale system helps you keep track of your sales and inventories and helps customers with loyalty points and easy payment options.
12. Security system: It helps protect you from customers and staff. It includes burglar alarm cameras.
Brew Your Plan!
Now that you know the detailed setup for a starter business, start prepping around and introducing yourself with a new flavour in the locality.
A coffee business can be gratifying when set in the right location, as the need for this beverage on any occasion doesn’t fall short. You can start selling coffee from home by filling them in flasks and delivering them to co-working spaces and labour factories, where there is no proper setup for a coffee machine. The need is everywhere, making the demand for coffee a potential business plan brewed for success.