AD – Guest post. Opening a café is very popular. Many would-be entrepreneurs see it as a relatively simple business model and one that can be started with a relatively small budget. Unfortunately, the truth is that running a café or coffee shop is not as easy as you think. According to the latest Coffee Shop Owners Global Survey, between 50 to 74% end up closing within 5 years.
Most do so within 18 months. Often, this is because the business was not set up to succeed from the very start. Below we explain how setting your new café up for success will help to significantly reduce the chances of the same thing happening to yours.
Treat it as a business from the start
An awful lot of people set up their café as a passion project. Often, it has been a dream they have had for many years. As a result, they tend to make decisions with their heart instead of their head. Or, worse, to treat setting up their café almost as if it is a hobby, rather than as a real business.
Sadly, with that approach, things rarely work out well. There is a tendency to spend too much on the décor, and not think enough about what it is that the people who live in the area want from a café.
Related Post: What to Consider When Setting up a Business
Make sure there is enough demand
You need to be as sure as you can be that there will be sufficient customers for you to serve. Taking a walk or ride around the area at different times of the day and visiting cafes that are like the one you are planning will help you to do that. Go into a few, be a customer and have a brief chat with your server. You will soon get a feel for how much demand there is.
Choose your location carefully
Your café must be located somewhere there is a reasonable amount of foot or bicycle traffic. Your initial customer base is going to come from passers-by dropping in out of curiosity. You could also locate yourself on a busy road, but if you do that, it is essential to ensure that there is plenty of parking available. If there is not, nobody will be able to stop and drop in.
Make sure that you are allowed to use the premises as a café. You don’t want to sign a lease only to discover it is not suited for serving food and drink. For example, to find out that it is impossible to install the correct ventilation system.
Design your café carefully
Most of your initial budget will be spent on furniture, equipment and decorating your café. Sit down and draw out what goes where and decide on the décor before you do anything. If you do not put together a proper plan, important things will get forgotten and you will be far more likely to go over your budget.
Tap into the power of digital display screens from the start
When designing your café, be sure to leave enough in your budget to buy at least one digital display screen. You will be amazed by how many ways you can use them. In recent years, digital signage software for cafes has greatly improved. Now, you can display anything you want on them. They can be used for:
- Digital menus
- To share promotions with customers
- To attract passers-by into your café
- To add to the ambience
- To entertain your customers
- To show short adverts for other local businesses, which could earn you a little extra cash
Choose your menu carefully
The food you serve is going to make or break you. It is good to offer something a little different, but you also need to respect the tastes of most of the people who will become your customers. You need to offer some of their favourites. The more you get to know your customers and their tastes the easier it will become to introduce something a little different. This in-depth article explains what you need to consider when deciding what to put on the menu for a new café.
Keep good accounts from the start
From the very first day keep track of anything you spend and the cash that flows into your business. Every day update your accounts and at least once a month review how your café is doing financially. Doing this will enable you to spot any issues early, which will give you time to take action to avoid going bankrupt. The above is an overview of what you need to do to set up your café for success. If you want to dig deeper into the subject, click here. The guide you will be taken to includes examples of how successful cafes are set up and run.
While you are here why not check out more of my Business posts?
Please support me by pinning this post:
