With global coffee consumption growing at rapidly, many searching for a viable low-risk investment options are hedging their bets with an independent coffee shop. However, in a market that grows more saturated everyday, it’s important to make an informed and strategic plan to build a successful coffee shop. In the first of a multi-part series BaristaForums would love to assist you in making an informed decision by analyzing the major costs of opening an independent coffee shop.
Rent and Renovation
One of the essentials of starting any business is having a firm grasp of your expected recurring expenses. Rent will remain a constant recurring expense for as long as you own your business and renovation is a necessary expense to provide your customers with a personal unique experience. When it comes to rent, that no matter where you choose as your location that you ensure the rent is lower than 15% of expected sales. If you project $20,000 in monthly sales then your rent shouldn’t exceed $3,000 monthly or $36,000 yearly.
Additionally, if the space needs a great a deal of renovation (which it will). You’re going need to hire contractors for construction, flooring, electrical and plumbing. You can paint your walls yourself, but décor is too important to the success of the coffee shop and a professional painting is recommend. Check AngiesList or Yelp to ensure you’re getting the best service for the best price.
Approx. Cost: $75,000 – $100,000
Equipment purchases make up the remainder of major expenses. An espresso machine, milk cooler, refrigerator, grinders, and blenders are just a few of the things you’re going to need. Luckily, coffee shop specific items like espresso machines and milk coolers have gradually decreased in priced do to the rise in demand.
In terms of espresso machines, you can’t go wrong with a Gaggia. They are the industry standard and easily apparent reasons, they’re sturdy,beautifully crafted, long-lasting machines manufactured in Italy. The price range from of Gaggia espresso machines start at $400.
Due to the growing acclaim of new coffee brewing methods, diversifying your equipment is an excellent way to increase your earning potential. Siphon Brewers are trending and the Hario 5-Cup Next Coffee Syphon provides a quality cup of coffee and delivers a great visual for your customers.
When it comes to blenders, Vitamix is supreme. They produce machines built for heavy-duty use without fear of it shorting out.
For things like dishwashers, and refrigerators, they’re a number of brands that create great appliances research and utilize a consistent aesthetic.