Starting A New Cafe? Here’s What You Need To Know

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The cafe industry all over the world is considered a risky industry, with statistics showing that many businesses close after about five years. The level of risk in cafes is defined as about thirty percent higher than the average level of risk of all businesses in the economy. It can be said that the consideration here is mainly location, i.e. the location of the cafe is critical to the chances of success. But on the other hand, the locations that have proven to be successful also have the highest rents. This makes it even more difficult to cope with setting up a coffee shop. In the coffee shop industry there are some big players operating in the franchise method and they have a big contribution to make up for the big failure percentages. These chains rake in capital from the sale of the franchises. Then they offer them to inexperienced people with knowledge about running a coffee shop. And especially about choosing the place.

There is an assumption that in places where there is a population with a higher socio-economic status there is a higher chance of success. But this is not yet a scientific formula for success. There are places where a large proportion of customers are tourists but the business still closes. In the cafe market you can see several types of cafes:

1. On the road – the cafes that offer fast and convenient service to customers on the road, those who stop to take coffee on the road or to the office.
2. Entertainment cafes – “regular” cafes that offer coffee, cakes and snacks.
3. The deepest – the cafes that appeal to the devout coffee lovers, those who live and breathe the coffee culture. These are places that offer special types of coffee, grinding and roasting services. And even sell coffee machines and equipment.

Scope of financial investment and suppliers

The scope of the financial investment depends very much on the characterization of the cafe. Are you planning to open a coffee and pastry style place, or are you also interested in serving light meals like most cafes. So if you want to serve light meals you will need a larger investment that includes kitchen space. If it is only coffee and pastries, there is no need for a large kitchen. The pastries can be obtained from frozen and semi-baked suppliers and it remains only to bake them in the oven. Will you sell your own coffee? If so, you may want to look at the best coffee packaging designs. You will also need to consider other options for your business which may include: 

1. Kitchen equipment suppliers – If you are interested in serving light meals, you will need kitchen equipment for preparing the food. If you do not serve food, you can make do with a freezer, refrigerator and a means of heating the pastries. Kitchen equipment requires maintenance and service, it is important to make sure that the suppliers provide service. It is important to estimate the level of service. Faults in kitchen equipment can disrupt activity and cause financial damage. So it is important to make sure there is good, reliable and fast service. In order to save you can also choose second hand business equipment.
2. Equipment for cafes – for the area where the customers sit, you will need tables, chairs and other furniture details. There is also a need for a coffee machine, display refrigerators for cakes, etc.
3. Tableware – cups, cups, plates, etc. Equipment can be obtained at different price levels, all depending on the quality. Keep in mind that this equipment is always broken and periodically a stock of fragile products must be replenished.
4. Coffee Suppliers – Coffee, food and beverage suppliers are needed. Although this is a cafe, do not forget that customers are also likely to order juices and soft drinks.

Naturally the coffee must be delicious in order for customers to return and continue to consume it, delicious coffee is one of the ingredients on which the business is based, a combination in terms of quantities of the varieties Arabica and Robusta in the roasting process give a different taste. It is known that cafes are a sub-branch of the restaurant industry. They require a large investment. With the exception of cases of a particularly small neighborhood cafe, it is usually an expense of hundreds of thousands required for the renovation of the place, the purchase of the equipment and all the associated expenses.

Other points to consider 

1. Locating a place – As we have already mentioned, choosing a place is one of the main considerations that will determine the success of the place. Even if you know a thing or two about businesses, it is best to consult with those who have experience opening coffee shops. Do not be afraid of an environment where there is competition, the multiplicity of cafes in many cases does serve you. If you have found a place where a cafe once operated, this can save you renovation costs, but you should also ask yourself why the previous cafe closed.
2. Insurance – A restaurant is a serious business that is exposed to various risks and the appropriate insurance must be taken out, such as: contents insurance, employer liability, personal accidents and more.
3. The design of the place – the atmosphere in the cafe is very important. The atmosphere must be adapted to the concept of the place and the business purposes.
4. Advertising and marketing – If you have opened a cafe in the center of the mall or a crowded place, you will have many customers easily.  However you must still look at advertising, because it is important for strengthening business branding and building a loyal customer base. That is vital! 

If you are considering starting a business, then be sure to have all the logistics in order as well as the necessary documents and advice. It is best to consult a lawyer also to ensure that everything is in order. Then you can begin your journey to success and a prosperous future.

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