Open a Coffee Shop - The Foodpreneurs Checklist

Thinking of how to open a coffee shop? Grab a cup of coffee and have a seat. 

 

"A lot can happen over a coffee" and you are going to make it happen. Of course, it is easier said than done. Nevertheless, we are here to help you easily open a coffee shop and make it possible.

 

7 Steps to Open a Coffee Shop

1. Register your Coffee Shop
2. Define the Idea & Make a Business Plan
3. Investment Planning
4. Choose a Location
5. Discover the Suppliers & Get the tools
6. Design the coffee shop
7. Hire 

 

1) Register your Coffee Shop

 

Firstly, choose the right name for your Coffee shop. If you don't already have one in mind you can use Business Name Generator tool.

 

Further, you will need the following coffee shop license and permits to operate legally:

 

• Company Registration
• FSSAI License
• GST Registration
• Health Trade License
• Eating House License
• Fire Security License
• License to play music
• Insurance

 

Although, this is a general list of licenses. Therefore, to check the specific licenses required for your business contact our experts.

 

To register your Private Limited Company or Sole proprietorship easily and quickly you can contact us at StartEazy.

 

Registration of a trademark

While it is not needed, but you should obtain a trademark to protect your brand. In fact, the validity of a trademark is ten years.

 

Registration for GST

If your turnover passes Rs. 20 lakhs, you must obtain a GST number.

 

License for a Shop and an Establishment

This licence protects the rights of shop workers such as waiters, cashiers, cooks, etc. Above all, it is mandatory to get one.

 

2) Define the Idea & Make a Business Plan

You have a big picture idea to start a coffee shop. Firstly, make a list of your goals, as well as the ambience you want to create. Secondly, start collecting photos, menus, and design ideas to help you decide the look of your coffee shop, the food menu and how your customers feel when they walk in. 

 

Most importantly, a clear vision helps you be steady when picking a name, deciding the decor, selecting the coffee, selecting the cups, and defining your interaction with customers. Remember, the key to success is to know your audience.

 

Creating a business plan benefits the process. Therefore, when making a business plan on how to start a coffee business, the points to always check are:

 

• The mission and vision- what is your business about and its unique qualities
• Market research- find your competitors and your regular customers.
• The team-  find the right people for the right task.
• Investment- how much does it cost to open a coffee shop.
• The location- find the best place where customers can find you easily.

 

3) Investment Planning 

 

Firstly, plan out your expenses and list the things you will need for starting up a coffee shop. For instance: 

 

• Property
• Stock
• Machines
• Design and Furniture 
• Working Capital
• Salaries/ Bills

 

However, if it is a small city and you are thinking about how to start a small coffee shop, you can begin with Rs. 10,00,000. On the other hand, if you want to open a coffee shop in a big city or a metropolis, be ready to invest at least Rs. 20,00,000 - 50,00,000.

 

The main sources of funding are:

• Your Savings
• Venture Capital
• Bank Business loans
• Crowdfunding
• Angel Investors
• Friends and Family 

 

4) Choose the Location

 

The location of any coffee shop is critical for its success. Therefore, spend some time in the areas you are considering.

 

You will need a space of around 500 - 700 sq ft.

 

Most importantly, take note of how many people are walking around and how much parking is available. Is there enough footfall in the area to support your coffee shop? 

 

Above all, check if you are near a lot of other cafés and what they are serving. Remember, you'll be spending a lot of time here, therefore, make sure the area feels suitable for you.

 

5) Discover the Suppliers & Get the Tools 

 

Find a well-versed coffee supplier with the best roasting and packaging techniques. As a result, you can offer your customers a product that makes you proud.

 

Above all, before choosing the supplier, check the roast quality, caffeine amount, taste of coffee, quantity and price. Furthermore, check the customer service provided by the supplier in case of any inconvenience.

 

In India, the top coffee brands are Karnataka Coffee House, Blue Tokai, The Flying Squirrel, Lavazza, Seven Beans Coffee, Starbucks, Davidoff, Nescafe, Bru.

 

Invest in a good coffee shop point of sale system which enables quick billing, stock/catalogue control, real-time reporting and offers such as meal combos.

 

Along with technology, it is important investing in high-quality equipment such as:

 

• Coffee machines
• Ovens and Microwaves
• Refrigerators
• Freezers
• Mixers

 

Here is a list of some of the Best coffee machines for coffee shops:

 

• La Marzocco (Linea-GS3-Strada)
• Nuova Simonelli Appia II 
• Slayer 2/3/4 
• La Spaziale Vivaldi
• Breville (The Oracle- Oracle Touch - Dual Boiler)

 

6) Design the coffee shop

 

The design of your coffee shop attracts customers. Know your customer preferences and design your coffee shop with them in mind. 

 

However, choosing and sticking to a single theme will result in a much stronger identity. Here is a list of few themes:

 

• Modern theme
• Retro theme
• Family theme
• Sophisticated
• Mid-Century theme
• Rustic theme
• Vintage theme

 

Moreover, the storefront design, signage, furniture, ambience and lighting plays an important role. 

 

It is costly, but hiring a professional interior designer can tie everything together. 

 

After that, consider food options, design, colour and fonts, appealing descriptions, images, and pricing when making your menu.

 

Highlight a signature dish that will influence the style of your menu. Most importantly, concentrate on no more than 10-15 slayer options that will knock everyone's socks off, including gluten-free, vegan, and vegetarian options. 

 

Above all, make a compelling menu. Determine the ingredient costs and profit margins for each item. However, the ingredient costs should not exceed 35% of the retail price (without GST).

 

Keeping the covid situation in check, make a DIGITAL SCAN MENU for your customers.

 

7) Hiring

 

Certainly, hiring the right people for the right job ensures excellent customer service, which results in a loyal customer. You will need to hire the following people to open a coffee shop:

 

• Head Chef
• Assistant Chef
• Baristas
• Manager
• Accountant/cashier
• Servers
• Cleaners

 

Launch your Coffee Shop

 

Opening your Coffee Shop is an incredible achievement that will mark the start of an exciting new adventure. Above all your 'grand opening' is a chance to show off your hard work after months of planning and preparation. It's also an excellent opportunity to begin cultivating long-term relationships with your customers. 

 

After that, when you have done so much to open a coffee shop, do not forget to list your store on google. It will help when your neighbours will search for a coffee shop near me. your store will be on the list for them to visit or order coffee. As a result, it will help you in gaining new customers and promoting your coffee shop.

 

Most importantly, you can have fun making it happen with one of life's greatest pleasures... coffee!