Entrepreneurs Guide to Coffee Shop Start Up Costs

When you decide that a coffee shop may be the perfect business for you, the first thing you need to do is educate yourself all about the coffee business. You need to know beans about coffee! First enroll in a barista training course. They are fun and easy to attend and soon you'll know everything about coffee. In addition it is very helpful to attend tradeshows and subscribe to industry periodicals. There are numerous comprehensive books dedicated to the specialty coffee business and starting your own coffee shop.

Barista Training Course

Deciding on the ideal location for your coffee shop will require a lot of time and energy. Be patient yet persistent in your search. It is not likely that you will find your perfect location over night. Just remember it will be worth the wait to find that ideal location that your business concept will flourish in.

There are many factors that need to be weighed in when searching for the perfect location. Consider your concept and what type of demographic will be drawn to it. If your concept is more upscale, then you'll want to locate in a more upscale area. If your concept is more bohemian then you'll want to find a location in a more bohemian area and so on.

People from all walks of life drink coffee but you want to be able to reach people that are willing to pay what you will be asking for your products. Busy city centers and college towns normally have a large coffee drinking population willing to pay $3 to $5 for a specialty coffee.

Once you have found your ideal location to set up your coffee shop anticipate needing another 4 to 6 months before opening for business. After purchasing a location or signing a lease you will still need to complete your design, build out the store and stock with machinery and merchandise.

Start up cost for a coffeeshop depends on many factors. The major factor has to do with the size of the coffee business. A coffee shop comes in many forms from a cart to a sit down bar or cafe. Italy is known for its' coffee bars which serve specialty coffees, liquors and an assortment of food items.

Start Up Costs Coffee Shop

Sit-Down Coffee Shop or Coffee Bar: Average cost $200,000 to $500,000

Drive-Thru Coffee Shop: Very Small $40,000 to $60,000; Large $75,000 to $300,000

Kiosk: Average Cost $20,000 to $80,000

Coffee Cart: Average cost is between $20,000 to $30,000

You may have a very creative concept for your coffee shop but a lender will want to see a business plan.  This is because the lender wants to know that you have the expertise to ensure that the business will be profitable so that you can repay any money that they may lend you.

There are experienced coffee consulting companies that make developing your concept and starting your coffee shop much easier.  Professionals in these companies have helped to write hundreds of business plans and know how to help you smoothly achieve your goals. A coffee shop business plan must include detail regarding the many expenses involved in opening the shop, the projected sales and monthly expenses of actual operation, and the volume of business needed to generate in order to be profitable.