anyone run a cafe?
Discussion
Okay, I've had a random itch to run a cafe\coffee shop for years & things might be shaping up to give me the opportunity. Any tips on telling if it's viable at a given location? I've not got a location pinned down yet & am aware that it's very key but in terms of market research etc how the hell do you tell if it's a go-er or not?
nope, I'm an IT guy by trade.
I know it's not going to make me big bucks, but eventually I'd like it to give me the life style I want. I'm a coffee freak & hate not being able to get a decent brew over here!
Learning enough to go into it eyes open will take me a while so I'm biding my time doing all the ground work I can.
I know it's not going to make me big bucks, but eventually I'd like it to give me the life style I want. I'm a coffee freak & hate not being able to get a decent brew over here!
Learning enough to go into it eyes open will take me a while so I'm biding my time doing all the ground work I can.
TBH...I would doubt that running one coffee shop would give you a lifestyle you are expecting coming from IT...
I run two franchises of a large fast food chain and the business at the moment is not great in the food and retail sector.(We seem to be bucking the trend at presently though)
Although, to answer your question, look for traffic generators such as offices, industrial estates where the largest volume of customers would come from. Hours trading would also be a huge factor in profit. There are quite a few coffee shops going down the pan around here as there trade is mainly lunchtimes so business is only really available for a window of 2-3 hours.
Unless you purchase an exisiting business from somewhere like this...
http://uk.businessesforsale.com/uk/browse/Food/Caf...
With the increase in staffing costs, utilitites and food costs and the fact customers are after a cheaper alternative to expensive coffee shops.....I would make sure you have a sound business plan and investment before going ahead.
If I can help any more then drop me a PM......
Kev
I run two franchises of a large fast food chain and the business at the moment is not great in the food and retail sector.(We seem to be bucking the trend at presently though)
Although, to answer your question, look for traffic generators such as offices, industrial estates where the largest volume of customers would come from. Hours trading would also be a huge factor in profit. There are quite a few coffee shops going down the pan around here as there trade is mainly lunchtimes so business is only really available for a window of 2-3 hours.
Unless you purchase an exisiting business from somewhere like this...
http://uk.businessesforsale.com/uk/browse/Food/Caf...
With the increase in staffing costs, utilitites and food costs and the fact customers are after a cheaper alternative to expensive coffee shops.....I would make sure you have a sound business plan and investment before going ahead.
If I can help any more then drop me a PM......
Kev
Edited by KevF on Monday 30th March 17:12
fade2grey said:
nope, I'm an IT guy by trade.
I know it's not going to make me big bucks, but eventually I'd like it to give me the life style I want. I'm a coffee freak & hate not being able to get a decent brew over here!
Learning enough to go into it eyes open will take me a while so I'm biding my time doing all the ground work I can.
Running eateries can be blindingly difficult, physically hard and notoriously difficult to turn into a profitable enterprise.I know it's not going to make me big bucks, but eventually I'd like it to give me the life style I want. I'm a coffee freak & hate not being able to get a decent brew over here!
Learning enough to go into it eyes open will take me a while so I'm biding my time doing all the ground work I can.
I would suggest that you look at the following key factors -
location
funding
licences and local authoroty issues
staffing
personal qualifications and experience for doing such a job
Don't worry I'm not expecting to match my IT income running a coffee shop 
Cheers for the link - actually lots of useful info in there.
It certainly sounds like location is the biggest hurdle to get right. I'll do some more digging in the areas I'm thinking of.
Thanks for the input so far guys.
Cheers for the link - actually lots of useful info in there.
It certainly sounds like location is the biggest hurdle to get right. I'll do some more digging in the areas I'm thinking of.
Thanks for the input so far guys.
You are very lucky from having IT background if you have a plan to run cafe/coffee shop. You can combine the coffee shop with internet cafe. They can subsidize each other. You only need location which is obviously important and some cash to start the business off.
Visitor may know the coffee shop first then lead them to use the internet, the other visitor may know the internet cafe and use the beverage when they are getting tired and thirsty...
Visitor may know the coffee shop first then lead them to use the internet, the other visitor may know the internet cafe and use the beverage when they are getting tired and thirsty...
yeah free internet access in coffee shops is virtually expected these days.. no big problem there though.
Staffing.. I was thinking about this very thing last night.. there are plenty of cafe's & restaraunts I've elected not to go back to after staff being a bit lacking in one respect or another. I certianly hear you that the staff will make or break it.
Staffing.. I was thinking about this very thing last night.. there are plenty of cafe's & restaraunts I've elected not to go back to after staff being a bit lacking in one respect or another. I certianly hear you that the staff will make or break it.
I recently met a man who successfully built up a business previously and sold it for a fairly substantial sum. He, like you had a yearning for a cafe business and then acquired a cafe business along with his wife - the business was located in a decent location in a prosperous town.
The man and his wife have struggled to make any money whatsoever in the last couple of years (neither has drawn any wages at all) and he has used nearly all his savings trying to make the business work. The business continues to lose money - he has tried selling the business (for a lot less than he purchased it for) and has had no luck.
As he trades through a limited co he is on the verge of ceasing trading. However, he gave a personal guarantee on the lease and owes £2k pcm rent for the next c. 10 years!!
So what I'm trying to say is that although a well run and organised cafe can make decent money, it can be very difficult for someone with no experience in this industry - they have had all the staffing probs etc already mentioned on here!!
However, if you do decide to go ahead I wish you all the best.
The man and his wife have struggled to make any money whatsoever in the last couple of years (neither has drawn any wages at all) and he has used nearly all his savings trying to make the business work. The business continues to lose money - he has tried selling the business (for a lot less than he purchased it for) and has had no luck.
As he trades through a limited co he is on the verge of ceasing trading. However, he gave a personal guarantee on the lease and owes £2k pcm rent for the next c. 10 years!!
So what I'm trying to say is that although a well run and organised cafe can make decent money, it can be very difficult for someone with no experience in this industry - they have had all the staffing probs etc already mentioned on here!!
However, if you do decide to go ahead I wish you all the best.
Whilst everyone's warning you (quite correctly), I'll offer some encouragement. The market is ready for something new, whilst Starbucks/Nero/Pret have all stalled. Whilst traffic is critical, there are a few areas where you can stand out, and make your place a destination rather than an option.
Coffee
Don't beat about the bush, get a Clover espresso machine, the best on the market. Make sure customers know you have the best machine going.
Customers are now ready to explore beyond standard house brews. You have the opportunity to introduce them to different coffee flavours (and this is something the Clover machine can help with, with computer controls to tailor the brewing process for each type), whether you sell just the drink or beans as well. Whatever you do, be seen to be passionate about the world of coffee.
Tea
The coffee shop that can also offer a proper, builders' rations cup of tea (strong, milk, two sugars) will clean up.
As with coffee, there is a world of flavours. With the loss of Whittards there may also be a market for quality teas from India, Ceylon (yes, I'm a traditionalist when it comes to tea) and China green teas. The five people who want Gunpowder might become your most loyal customers.
Dry Goods
There may be a case for selling beans/leaves, as well as the drinks. Consider offering a grinding service, or selling from the tea case Both products, from coffee shops and supermarkets, are still sold in too nondescript a fashion - they sell Kenyan Peaberry in an anonymous silver foilpack, so you can sell it in hand weighed bags with the back story of FairTrade farmer Onkye Mwambezeki...
Food & Other Drinks
Coffee Republic used to have a fresh orange squeezer - the orange was better than the coffee. Better than those bottles, longer shelf life, and you can tune the flavour by your choice of fruit.
Similarly the existing chains are poor on food, particularly as the sandwiches are made off site. There used to be a place next to Broadcasting House that used to make ciabattas way better than the chains - fillings were pre-mixed in tubs, but because they could prepare to order the fillings were sloppier (no worries about the sauce soaking into the bread), and tastier. It doesn't need to be fancy, just good - all day breakfast rolls are there for a reason..
Service
Assuming you are looking at passing trade, like the chains. As I said to one chain:
You could do worse than arrange a scouting trip to central London. PHers here would point you at interesting places in the working areas and back streets that are doing something special (City, adland & off Regent Street for example), and might help focus your ideas.
Coffee
Don't beat about the bush, get a Clover espresso machine, the best on the market. Make sure customers know you have the best machine going.
Customers are now ready to explore beyond standard house brews. You have the opportunity to introduce them to different coffee flavours (and this is something the Clover machine can help with, with computer controls to tailor the brewing process for each type), whether you sell just the drink or beans as well. Whatever you do, be seen to be passionate about the world of coffee.
Tea
The coffee shop that can also offer a proper, builders' rations cup of tea (strong, milk, two sugars) will clean up.
As with coffee, there is a world of flavours. With the loss of Whittards there may also be a market for quality teas from India, Ceylon (yes, I'm a traditionalist when it comes to tea) and China green teas. The five people who want Gunpowder might become your most loyal customers.
Dry Goods
There may be a case for selling beans/leaves, as well as the drinks. Consider offering a grinding service, or selling from the tea case Both products, from coffee shops and supermarkets, are still sold in too nondescript a fashion - they sell Kenyan Peaberry in an anonymous silver foilpack, so you can sell it in hand weighed bags with the back story of FairTrade farmer Onkye Mwambezeki...
Food & Other Drinks
Coffee Republic used to have a fresh orange squeezer - the orange was better than the coffee. Better than those bottles, longer shelf life, and you can tune the flavour by your choice of fruit.
Similarly the existing chains are poor on food, particularly as the sandwiches are made off site. There used to be a place next to Broadcasting House that used to make ciabattas way better than the chains - fillings were pre-mixed in tubs, but because they could prepare to order the fillings were sloppier (no worries about the sauce soaking into the bread), and tastier. It doesn't need to be fancy, just good - all day breakfast rolls are there for a reason..
Service
Assuming you are looking at passing trade, like the chains. As I said to one chain:
- Rule 1: "The coffee is king." Do everything you can do make sure every cup is perfect.
- Rule 2: "You're a convenience store, like McDonald's." Provided you don't break Rule 1, all that matters is getting customers served quickly. A queue means lost business.
You could do worse than arrange a scouting trip to central London. PHers here would point you at interesting places in the working areas and back streets that are doing something special (City, adland & off Regent Street for example), and might help focus your ideas.
Good thought from HiRich, bright brief about options to encourage people who want to work on running a cafe.
As frequently people said that firstly we must decide segmentation, who are the target from the cafe and how much this will involve investment. I'd assume that running a cafe whilst currently we have only IT knowledge in hand, without enough background or experience in this field would have to take the risk towards possibility of suffering loss. Well, we will not learn whatever from being hesitant, but venture must be taken with regard to possible loss may occur.
Perhaps, it would be merely a side business if at the same time we have regular job and rely on income of the job to run another business or produce another income.
Imo, location near a school could be a good location for start up. We can start it off with a not too large space, provide the cafe with common beverage such as a crate of bottled tea, mocha flavored coffee, perhaps some packs of popular brand of cigarette.
As frequently people said that firstly we must decide segmentation, who are the target from the cafe and how much this will involve investment. I'd assume that running a cafe whilst currently we have only IT knowledge in hand, without enough background or experience in this field would have to take the risk towards possibility of suffering loss. Well, we will not learn whatever from being hesitant, but venture must be taken with regard to possible loss may occur.
Perhaps, it would be merely a side business if at the same time we have regular job and rely on income of the job to run another business or produce another income.
Imo, location near a school could be a good location for start up. We can start it off with a not too large space, provide the cafe with common beverage such as a crate of bottled tea, mocha flavored coffee, perhaps some packs of popular brand of cigarette.
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