Coffee is one of the most consumed and expensive commodities in the world. The money that rotates in the coffee business is comparable in volume to the money turnover of oil. The trade margin for coffee is much higher than that for most other goods, reaching up to 600%.
In addition, coffee is consumed almost daily by many people, that is, coffee is a very popular commodity.
The coffee house business idea, even at first glance, looks cost-effective and fruitful.
However, the huge number of coffee houses that have appeared recently creates high competition for this type of business and makes the implementation of the coffee house business idea quite difficult.
As with any competitive business, setting up a coffee shop should be based on thorough market research.
Opening a coffee shop should be a precise and confident step to fill an existing niche in the market and satisfy people’s needs for aromatic and hot coffee.
You can often see coffee houses, which, according to the offered range of drinks and dishes, are more like small cafes or restaurants. This is because entrepreneurs, seeking to maximize profits, increase the number of related products offered. Visitors to the coffee shop are offered a large selection of children’s products, salads and even hot dishes.
However, such a strategy for the development of a coffee shop does not lead to an increase in profits, but, on the contrary, sharply reduces competitiveness.
The main purpose of the coffee house is to provide visitors with the opportunity to drink a cup of aromatic coffee and get maximum pleasure from it.
The coffee house should meet its purpose and be cozy and friendly.
The number of related products offered should be limited to one or two dozen. As a rule, these are several types of confectionery: buns, cakes, and so on.
The main commodity sold should remain coffee.
When bringing a coffee house business idea to life, it is very important to determine in advance what style the future coffee house will embody.
It can be a democratic and free style for young people and students, or it can be a quiet cozy room for leisurely conversations and couples in love.
In places of high attendance and high rent, you can also use the express coffee shop format, where you can drink coffee right at the counter.
There are also options for coffee shops on wheels, when coffee is sold directly from the car. But this is already an extreme version of a mini-coffee shop.
But, of course, the most important condition for the popularity of a coffee house is the quality and taste of the prepared drink.
Many coffee houses among the standard coffee recipes have their own unique recipes that allow you to attract loyal customers.
The specificity of the coffee house also implies a careful selection of staff. A person who comes to drink a cup of coffee expects a friendly attitude, so the staff for a coffee shop should be selected precisely on the basis of openness and goodwill.
In terms of technology and equipment, a coffee shop is not a complex business.
If the owner of a coffee shop does not seek to combine the coffee shop with elements of a bakery and cafe, then he will, in fact, only need equipment for preparing drinks and a couple of refrigerators to store ready-made cakes ordered from suppliers.
It is the relatively low cost of purchasing equipment that explains the high competition in the coffee business. In terms of profitability, a small coffee shop can pay for itself within the first year.
The profitability of a coffee shop is highly dependent on location and attendance.
Therefore, conducting a preliminary marketing research and correctly assessing the needs of future visitors is the most important success condition for the success of a future cafe.
The coffee house business idea is also attractive because, if the establishment is successful, it is possible to expand the business by opening similar coffee houses in other parts of the city, creating a network of establishments recognizable and beloved by residents.