Creating a successful coffee shop business is a tough challenge, As you will find a lot of local and global competitors targeting your audience, in addition to the need to understand the logistics, monitor competitors, learn from them, and do other things that require your attention and will to master them.
The importance of opening a coffee shop
First: Ready Customers
Regardless of the country you intend to target with your project, coffee is one of the most popular beverages globally. Globally, people consume close to 2 billion cups of coffee per day, and experts anticipate that this number will continue to rise. Because the market is receptive to more coffee shops, these figures indicate a fantastic opportunity to launch a prosperous coffee shop business.
Second, freedom of creativity
You can offer your customers a huge number of coffee choices. For example, you can serve it hot or cold, with chocolate or hazelnuts, with or without ice, a croissant or cake, etc. It is difficult to limit the ways to serve coffee in a coffee shop, and you will be able to add your touch, unlike many other drinks with limited choices, such as tea.
Challenges of the coffee shop project
We should not overlook the global coffee market’s challenges when we look at the coffee shop project and its growth opportunities, such as climatic changes, the impact of lack of rain on coffee beans, and the infrastructure problems faced by some exporting countries.
But the most important part for coffee shop owners are those challenges that can be worked on, and they are the same ones that answer the important question: Why might the project fail despite everyone’s love for coffee?
Study of a coffee shop project
Some people rush to create the project without investing in its study in all its aspects. We may explain this excessive enthusiasm by not knowing the secret of the success of any project, which is “sufficient experience,” regardless of how easy the coffee shop project is or how much the market needs it.
I refer here to the necessity of reading the books of well-known coffee brands and their experiences, reviewing competitors’ data and their projects and analyzing them extensively, spending a certain time gaining managerial experience in any coffee shop, and then setting out to prepare your project by following correct foundations.
Writing a coffee shop project plan
Many entrepreneurs fail to develop a clear project plan, which prevents them from monitoring the project’s status or evaluating its results, and taking deliberate actions accordingly. And we must not forget the amount of time and money wasted in managing a project without a workable plan.
Accordingly, preparing the coffee shop project plan is an essential step for success, and it must include many elements, perhaps the most important of which are:
- Project budget.
- The steps you will follow to create it.
- Schedule these steps.
- Project equipment.
- The unique idea for your project.
- List of products (drinks and candy, for example).
- The project Location.
- Your vision that you want to achieve from the coffee shop.
- Information about competitors.
Expectations from opening a coffee shop
You may expect quick profits and build a distinctive brand in record time, and although this is achievable, it is not the main rule when we talk about projects, especially the new coffee shop project; The competition is fierce, and customers always expect something new because they are accustomed to the services offered by specialized international venues.
Expecting reasonable profits will prevent you from frustrating at the beginning, so you will be able to keep your nerve while administrative matters do not go as well as you hoped; To provide this effort in studying opportunities and solving challenges. You will also protect yourself from entering the burnout phase.
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Requirements for a coffee shop project
After preparing a clear plan for the coffee shop project, go to the location and area of the project, and then choose a unique name that will help the target customer identify you. You will then go to buy the basic tools of the coffee shop and complementary tools if your budget allows for this in the beginning.
Equipment needed to open a coffee shop
- Espresso machine.
- Espresso grinder.
- Regular coffee grinder.
- Coffee machine.
- Ice machine.
- Hot water dispenser.
- Refrigerators for keeping ingredients, dairy, etc.
- Kitchen utensils such as spoons and knives.
- The cups are of different sizes.
- Microwave.
- Bakery display tools.
- Various cups and glassware.
- Plastic cups, whether they are customized with the brand identity of the coffee shop project or just regular cups.
- Other tools include coffee, yogurt, juices, mixes, nuts, sugar, cleaning tools, etc.
- Various barista tools:
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- Coffee dispenser.
- Balance.
- Espresso deck dispenser.
- Steaming jug.
- Decorative sprinkler.
- Portafilter handle.
- Towel Set.
Other important tools for a coffee shop project
- Cooking machines: The coffee shop project is not only specialized in providing different types of coffee, but the customer expects you to add a specialty side to fresh baked goods that he can eat with his drink.
- Frappe and Smoothie mixers: These tools are important because they will help you prepare various types of iced coffee, such as ice latte and coffee macchiato.
- Coffee Roastery: The owners of the coffee shop are looking forward to roasting their coffee themselves without the help of an external roaster; This method enables them to better control their tools.
How to prepare a feasibility study for a coffee shop project?
The project feasibility study should include many things, such as:
- Project data: name, location, owner and partner data, etc.
- Description of the coffee shop project and its products include the names of the products you offer, their distinctive characteristics, and the value you expect to add to the customer.
- External factors include the impact of technology; Can you use modern applications and programs in your project?
- The state’s economy helps you determine the state budget in which you are opening the project. It is also important to know the national income of individuals, economic stability, purchasing power, etc., So you can realistically price products and forecast profits.
- Competitors’ data: The project feasibility study should include the following:
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- Competitors’ names.
- Current market size.
- Target group.
- The number of local and imported products.
- Supply and demand levels at the start of the project.
- Ways to stand out from your competition.
- Marketing Methods: You should attach the marketing plans that you will follow immediately after the start of the project.
- Personnel: Here, you need to specify the number of employees, their qualifications, and job titles. It is also important to describe the tasks expected of each employee in the project.
- Schedule: Specify here the dates of the operational work plan, the dates of start of recruitment, and the trial and final opening.
- Data of the working mechanism: the mechanism of action indicates how the products will be presented, the details of the distribution process, if any, the pricing strategy used, and how the profits are received.
- The challenges of the coffee shop project: such as the location or the intensity of competitors.
- Other things, such as:
- Financial ability to open a coffee shop.
- Availability of adequate project management skills.
- What are your financial expectations?
- For example, what funding sources will you adopt in the first 3 years?
- When do you expect to take profits?
The cost of the coffee shop project
The cost of this project depends on several factors, including:
- Project location: The cost will be reduced if you have a ready space. It is very different if you buy or rent a place.
- The space of the place it is established: The larger the area of the coffee shop project, the higher the cost of decoration and furniture and your need for staff.
- Quantity of tools required: Market needs, customer expectations, and the project space affect the number of tools.
This price varies depending on the target country, the level of an economy, and the types of interior and exterior decoration you will be committed to. For example, the cost of a project in the United States starts at least $ 80,000.
How much is the profit of the coffee shop project?
As is the case with the cost of the coffee shop project, we cannot mention certain profits in which all coffee projects are equal without looking at the project’s location and area and the different items it offers, in addition to the pricing of products, purchasing power, the level of daily sales, the number of working hours and the number of visits per hour.
Other factors that affect profits should also be considered, such as salaries and number of workers, tax amount, and the cost of purchasing and maintaining components and tools. According to a Coffee shop startup, the entrepreneur can make between $75,000 to $350,000 per year.
Ideas for a successful cafe project
The success factors for this project are diverse; It starts with creating a distinctive brand that carefully targets potential customers. Next, you must choose a suitable location for the project. Then you will draw your commercial values around the place using the appropriate decorations to give an attractive first impression to your customers.
The coffee shop project should be designed in a unified design compatible with your visual identity, facilitating audience recognition of you and your marketing campaigns, regardless of their location. Make the place more attractive to customers, and encourage them to stay more. Also, take care of the product list by making it varied and smoothly presented.
The choice of acoustics is very important for customers’ comfort and to complement the spirit, you are trying to create in the new coffee shop project. You should not lose sight of the attention to lighting and its comfortable distribution for the eyes.
Important tips for a successful coffee shop project
- Invest your effort and time in studying the feasibility of the project effectively. Never shorten this step.
- Create different marketing campaigns, but you don’t need to start them until after you’ve tried the project long enough; To avoid crowding the place without providing real value, which may prevent them from visiting it again.
- Focus on quality, not quantity. When you focus on quality, the customer will feel special and be a free marketer for your project. You will also create an effective and distinctive relationship between the client and the project.
- Hire a professional accountant. Hiring the right accountant helps you know the financial aspects of the project, which can save you a lot of effort and time.
- Think about getting financing from the beginning. Do not wait until your balance runs out and then go on the journey to find a funder. But make the option of support from your friends and investors interested in your project field available at any time.
- Have trained staff by establishing a clear recruitment process and actual evaluation criteria. Knowing the tasks expected of each employee is an essential step for the success of your project, and to be able to identify these tasks, you must have sufficient experience in management and transactions.
Conclusion
I learned more about the most important points that should be focused on during the feasibility study of a new coffee shop project, the strengths, and the basic tools required for this project. You also know some tips that will enable you to achieve success in a short period. As a personal opinion, I am confident that any project succeeds if it surrounds itself with those interested in it, so keep that in mind and start now.
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