Operating a cafe is a wonderful way to make a living but it’s not easy. For every successful coffee shop you see there many others that couldn’t succeed in such a competitive market. Despite the many challenges associated with owning a cafe, there are some helpful tips for a successful business.
International coffee giants like Starbucks and others continue to expand yet there’s still a special place for locally owned, independent coffee bars. Consumers are often interested in supporting homegrown small businesses that provide welcoming environments. However, most of these small cafes rely on selling high-quality, fresh selections of coffees within a unique setting.
For anyone that’s passionate about the coffee business, it’s vital they understand the best practices for opening a coffee shop. The below checklist is worth reading since the advice we included will help reduce common mistakes for opening a neighborhood cafe.
Financial Responsibility
A great attribute of many busy independent beaneries is not the size of the menu but rather the people serving the drinks. Once you’ve found the perfect formula for your cafe’s ongoing success, you’ll maintain it by being a responsible financial planner. This is particularly true during your cafe’s first year of business since it can be a bit of a struggle to turn a profit initially.
It’s recommended that you become proactive about your business finances. For example, regularly analyse your supply bills, payroll expenses, marketing charges, and other business costs. Keep an eye on what products sell best and how you can increase your overall revenue. Always find innovative ways to reduce your outlay without sacrificing quality. You can always touch base with your business accountant or financial planner for professional assistance.
Establish a Reliable Supply Chain
Supplies for your cafe are a big part of your financial planning and your overall success. After all, your coffee house needs to have on hand fresh milk, pastries, coffees, teas, cups, napkins, stirs, and other items. Without any of these supplies, your customers will be very disappointed. Therefore, you must find a reasonably priced supplier that can keep your shelves stocked regularly.
Remember, if you plan on roasting your own coffee beans then you’ll need to factor in extra lead time and equipment to accomplish this task. Same idea for baking your own cookies and muffins on-site for your patrons.
Sufficient Storage Saves Money
Multiple start-up cafes fail when it comes to storing and maintaining inventory. Amateur coffee shop owners may forget to take into account the need for storage space within the store location, and as such, find themselves without sufficient inventory as they grow. Having the right storage space for supplies helps business owners take advantage of surplus discounts, avoid rush delivery fees when materials run low, and keep items fresh.
Create a Unique Brand
The best stores make a statement in the products they sell, the ambiance they create, and the service they provide. Each busy business offers something unique that draws-in new patrons and keeps them coming back for more. Creating a clear brand that stands-out from the competition will propel your new coffee shop forward.
Consider selling items besides coffees and teas. Perhaps you can provide customers with fresh-baked pastries and other affordable snacks. Maybe you should offer gluten free or vegan treats that other nearby cafes don’t. Or you could possibly source your own beans rather than just buying coffee from a big supplier. Many popular coffee bars host musicians, comedians, or poets periodically, as well as display art from local painters.
Hire the Right Team Members
Employees are the heart and soul of any coffee shop. The people on your staff represent your brand, serve your products, and assist your customers. Visitors to your coffee house will expect team members to be friendly, outgoing, hard-working, responsible, and professional.
Good customer service is what the public expects to receive and so poor customer service can quickly end your cafe dreams. With that said, consider hiring team members with the following qualifications:
- Outgoing and friendly personalities
- Previous experience working in cafes or restaurants
- Punctual and dependable team player
- Knowledgeable about coffee
There is no such thing as hiring a perfect person but finding a compatible person is possible. Invest time in bringing on baristas and other workers that will compliment your business. You’ll want to find dedicated employees that are invested in your coffee shop’s ongoing success.
Marketing for Success
You’ll want to start your business strong with plenty of patrons showing up from day one. This is where marketing and promotion comes into play. Check out these marketing ideas you can use before opening day or even earlier like during the construction phase.
- Design a recognisable brand that’s reflected throughout the signage, logo, interior design, etc.
- Establish a social media presence via Facebook, Instagram, and Twitter
- Invest in a quality sign for your store front
- Create a customer loyalty or rewards program
- Give free samples to local businesses, community events, and passersby
- Contact local food bloggers and social media influencers for help promoting your cafe
- Create a press release about your grand opening and share it with newspapers, online forums, TV and radio stations
- Join your local chamber of commerce and network with other business owners
- Host art events, charity events, free coffee workshops
- Mail coupons or flyers to nearby residents
Begin networking locally during the construction and development phase way before the business is open. Marketing and promotion efforts should be continual and when it’s done right, you’ll lay the foundation for a successful coffee bar.
Insurance for Café Owners
You’ll be busy lining up amazing baked goods and finding the perfect coffee beans for your customers. Please be sure to also remember you could benefit from getting insurance for your café.