16 Jul How To Start a Coffee Shop? Buying a Franchise vs Turnkey Business
Have you been dreaming about opening your own coffee shop for a long time? Own business, business that gives joy. How to start a coffee shop on your own? Is it worth attracting a company to implement a turnkey project? Buying a franchise or a ready-made coffee shop?
Proriat Hospitality Partners – a company with a wide range of services in the hotel and restaurant sectors. We invest in the development of enterprises. We specialize in the real estate market. We manage restaurants. Create and develop projects through a franchise system.
Management: strategic management and the achievement of strategic results of the enterprise. Resource assessment, action and budgeting program, establishment of control criteria. We guarantee a cost reduction of – 5%, an increase in sales by 10%, and a guarantee of a 45% return on investment per annum.
Proriat Real Estate – agency number 1 with a database of commercial real estate: sale of a ready-made business, rent of restaurants, hotel management. Profitably, buying premises for a catering establishment.
Proriat Franchise Development – is professionally engaged in the development of a restaurant chain through a franchising system.
How to start a coffee shop, where to start?
Opening a coffee shop is not only a profitable business, but also busy, happy days. Coffee is a versatile drink suitable for meeting friends, energizing for a productive working day, as well as enjoying a relaxing walk. The range of coffee drinks is amazing: from classic espresso to flat white. When opening a coffee shop, it is important to have a step-by-step plan, to determine the concept by analyzing the business model.
Let’s move on to opening a coffee shop
The concept of a coffee shop is what will differentiate you and give you an edge over the competition. More than two hundred coffee houses open every year throughout Ukraine and among all the establishments you need to come up with something exceptional, which will have no analogues on the Ukrainian market. This is the key idea around which the company’s strategy is written.
Product. At this stage, all the features are taken into account: the type of grain, types of coffee, and coffee drinks. The manager is guided either by mass sales or by the exclusivity/inclusiveness of the product. Remember, you have to be the best in the coffee business, so don’t neglect the quality of the raw materials.
To successfully launch a project, we must understand who we are creating a product for, who are these people, and what are their preferences? An integrated marketing strategy comes to the rescue.
The audience. Social networking is a fundamental tool for attracting visitors. Social networks such as: Instagram, Facebook should be the default, but Tiktok will help attract a younger target audience. It is important to analyze for what purpose the client visits the establishments. It is important for an ordinary office worker to quickly get his aromatic coffee, delicious pastries and continue to run on business. Coffee gourmets appreciate alternative brewing, exotic coffees, and creativity in general. For a business meeting, the interior, atmosphere, and location of the institution are important.
Interior Design. In the case of an independent opening of an institution, there is a possibility of budget loss due to insufficient control and irrational use of materials. Therefore, it is advisable to contact Proriat Hospitality Partners, this is a guarantee of cost savings by 25%. Our creative designer will be able to surprise you by creating an interesting interior with a minimum budget. The main design solutions are the same: good lighting, comfortable tables, and chairs, where visitors can enjoy a fragrant cup of coffee.
How to Start a Coffee Shop? One of the key points is what you create. It can be a mono-brand establishment where you create a concept, think over details, and implement a project. It can be a franchise project, which must be selected according to several criteria: payback period, investment size, net profit, and franchisor support.
Premises for a coffee shop
How to start a coffee shop? The harsh truth: a landlord won’t wait for your branding, finding a designer for a project, and creating a logo. You must clearly visualize your product, find a suitable premise and start renovation work the next day, and launch an advertisement about the opening a month later. If you already have a ready-made concept, then you can go in search of the perfect room. On average, it takes from a week to a month to analyze the location, people around, and their preferences. Pay attention to the places where the catering was, as a rule, there are all the necessary conditions. It is desirable that the future coffee house be located in crowded places, on the first line of houses, because pedestrian traffic will pass through it. We recommend choosing stationary objects, with them, it is safer than with street pavilions. You can find suitable premises on the OLX website, not forgetting about the risks and unscrupulous agencies. The room error is not fatal, but problematic enough for the speed of project implementation.
When you have found a room without a commission, think about it, perhaps the amount of commission is already included in the rental price. It is possible that much more than, only 50%, and you will know about it only when you sign the contract. You can view the catalog of current verified objects, and choose the most suitable option safely and quickly on the website Proriat Real Estate
Suppose you have decided on a concept, have chosen a premise, and want to implement the project as soon as possible. You have found contractors, and it’s time to renovate. The importance of the interior for the success of a coffee shop is quite large. It is important to remember: a certain interior attracts a certain target audience.
After the chosen concept, meticulous work begins: zoning the premises, determining the optimal location of communications. A ventilation and lighting system is being considered. The contractor comprehensively collects the technical and stylistic aspects of the interior. All stages are accompanied by regular measurements and comparison in order to avoid stopping overlaps and flaws.
Insufficient control leads to the loss of part of the budget, as well as to the irrational use of materials during the assembly of the object. A novice entrepreneur, as a rule, is busy with the execution of contracts and comparison with the normative acts of the current sense. In this case, you can invite a company that will supervise all repair work.
How to find the right employees
When choosing certain qualities of employees, focus on the preferred concept. Also, do not forget about the most important qualities: benevolence, politeness, constant adherence to professional ethics.
A coffee shop requires the following staff: a bartender-barista with an excellent orientation in the coffee list; manager; manager with at least two years of experience in a similar position.
How to start a coffee shop? In catering establishments, as a rule, there is a high turnover of employees. Take care of proper pay, motivation and development of team skills of employees. Create trainings, invite eminent HoReCa employees, motivating employees for quality work.
Opening a coffee shop
The coffee shop is ready, the interior, the signboard, the staff are recruited – it’s time to open in the process debugging mode. It can take from a week to two, but it will give a tremendous experience and demonstrate a real willingness to open.
It is extremely important to monitor your finances: planning monthly expenses, including operating and non-fixed expenses.
Marketing strategy that maintains the interest of visitors: targeted advertising, regular maintenance of social networks, seasonal menu updates. Do not forget about reviews, customer feedback, because this is a real indicator of your work.
Based on the results of your work, you should get the following indicators as a percentage of the total turnover:
- Cost: 30% -35%
- Payroll: 20% – 25%
- Rent: 10%
- Taxes: from 5% (Ukraine)
- Return on sales: 18% – 25%
- Return on investment: 2% – 7% per month
Turnkey coffee shop
How to Open a Coffee Shop? Alternatively, contact a company that will do all of the above path for you. There is a list of companies specializing in this service on the Internet. We can offer our terms of cooperation with guarantees of profitability and turnkey coffee shop
Buy a coffee shop franchise
An additional way to open a coffee shop is to purchase a franchise. This has a number of benefits as it saves you the painstaking branding, product, and marketing hassle. However, in this case, you pay a lump-sum fee and a monthly percentage of the turnover. Remember, in order to choose the right franchise, you must know the specifics of the franchise market. Consider which franchise will be successful in your city. The current list of franchises, detailed information, as well as asking questions of interest can be found on the website Prorait Franchise Development
Rent or purchase of a ready-made business
Pay attention to the commercial real estate market, because a large number of objects are concentrated there, which are rented or sold with all equipment and furniture, as a ready-made business. This is advisable if you have a finished product that can be sold in a prepared room. In the case of renting an existing restaurant, you can perform a number of actions: attracting professionals from the restaurant sector and restarting the restaurant, making an operational rebranding. This is an alternative but highly rational option for a successful asset in your portfolio.
Let’s sum up about how to start a coffee shop
Opening a coffee shop consists of a series of steps that must be followed in order to avoid fatal mistakes. Is it possible to open a coffee shop yourself? Of course yes! Will it be beneficial to attract assistance in the implementation of your project? If you are starting a new business, then the specialists will clearly be able to help you in the implementation of your idea. They will organize all processes, ensure uninterrupted management so that your establishment is successful and works like a Swiss watch. Buying a ready-made business or franchise is also a good alternative. But there are many subtleties and nuances here. We recommend that you contact us, so that we can tell you in more detail about all the features of opening and running a coffee shop.
Contact us for a free consultation, selection of a ready-made business, or choose the best franchise from our catalog. We are waiting for your call!