The market for coffee has left the best times of its development far behind and now is at the level of everyday commodity like a bread. People no longer go for a cup of coffee for pleasure because this drink is used by the majority of people every day. At the same time, the market is large enough with large coffee producers and tiny shops offering coffee beverages existing side by side.
The market for coffee shops is quite saturated in all major cities. The only way to win a tense competitive struggle is to find a place with constant demand for products that does not yet have its own coffee shop and provide a good service. Such places usually include educational institutions or office centers. Of course, all such places in large cities already have one or more coffee shops. This business is oriented on a small city as well as insignificant earnings.
- minimal investments in equipment;
- constant demand.
- a problem to get a trading place from local authorities;
- dependence on the level of service.
PR and advertising
Coffee shops do not require special advertising, except for the investment in the design of the store and containers. Additional costs should be allocated for this purpose and included into the price of finished products.
It is clear that one employee can not serve more than 1 customer during 3 minutes of a coffee machine work. The maximum daily production volume can be 15 coffee drinks per hour.
How to prepare a business plan of a coffee shop in Excel
In order to predict how much money you need to open a shop, you need to evaluate the market and determine the volume of daily sales. This is the basis for calculating the number of equipment and personnel that will serve customers. The process of making coffee can be done in the food truck or kiosk, the shop is not necessary. It should be noted that the leased premises will be profitable only if the coffee shop has a set of another products to sale and enjoys a constant flow of customers. The average check of a coffee drink should not exceed $3, so the maximum revenue per hour is $45. Payback period is about half a year if the company does not buy a room and does not pay a lease. However, if the premises were purchased for these purposes, the payback period may extend up to five years.