The global population consumes over 400 billion cups of coffee. And, over 50% of Americans over 18 drink coffee on a daily basis. From a business standpoint, the market is massive!
It’s no surprise starting a coffee shop is on your brain. But, if you’re just getting started, the process can feel overwhelming. Where do you start? What do you need? Where are you going to buy your coffee beans and who’s going to buy your coffee? If you’re feeling overwhelmed, don’t worry. You’re about to learn 7 of ICT’s top tips for starting a coffee shop in 2024. So, take a deep breath, slow down, and enjoy your morning brew.
Then, keep reading to learn more about how to get started, today!
1. Don’t Be Afraid of Being Different
The most successful small businesses start out small. When you’re getting started, focus on one customer profile you’re interested in serving. But, don’t be afraid of thinking outside the box.
Are there any groups of underserved coffee lovers in your area? Think about the different types of people who enjoy the coffee culture. And then research local shops to see who they target.
If you notice any gaps, you’ve stumbled on a golden opportunity. But, make sure it’s a customer profile you’re happy to work with day in and day out.
Establish a unique selling proposition (USP) that will position your coffee shop in the market. Think about what makes your vision different from what already exists.
2. Focus on Hiring the Right Team
A positive, inviting atmosphere and culture starts with the right team. Before you think about hiring anyone, decide how you want to structure your new business. You also need to consider how involved you’re going to be in day-to-day activities.
Take your time during the hiring process. And keep the following tips in mind for interviews and making final decisions:
- Character and drive are often more important than experience
- Consider long-term goals for both you and the person you’re talking with
- Think back to your unique selling proposition — what do they have to offer?
- Make sure you can trust this person to be the face of your business
Once you have a team in place, ask for feedback and don’t be afraid to offer it as well. Nurturing good employees is as important as hiring the right team in the first place.
3. Source the Highest-Quality Food and Drinks
33.33% of the population drinks gourmet coffee on a daily basis. Sourcing and serving a high-quality product brings customers back to your shop. And it gets them talking about you, your brand, and your coffee.
Getting someone in the door is hard but getting them to stay means taking pride in what you have to offer. Think back to your unique selling proposition and your business values. Put them to the test every time you buy products to sell in your shop.
Your customers will notice and appreciate the care you put into every aspect of our business.
4. Choose a Desirable Location You Can Afford
Almost 30% of coffee shops fail because of choosing an undesirable location. So, before you extend any offers, consider your options and your budget. You also need to decide if you’re going to rent or buy a property.
Before you set your heart on a location, think about:
- Your budget: How much money can you afford to spend every month? How long can you keep that up before your shop needs to start making money?
- Traffic: Do people walk by this location? If so, are they in a hurry or on their way somewhere else? How visible is this spot to the type of people you hope to attract?
- Parking and accessibility: Is this spot hard to get to? Is there enough parking close to the building? Are people going to get lost trying to find your shop?
- Your target market: Is this an area they frequent? Do they pass by here on their way home? Is this a place they’re likely to stop and hang out at?
5. Keep Your Finances Organized From the Start
Nobody likes to talk about the nitty-gritty financial details of starting a coffee shop. But, staying organized from day one is an important aspect of running a business.
You need to consider the costs of:
- Rent/Mortgage payments
- Renovating your space
- Equipment
- Utilities – electricity, gas, trash, water, etc.
- Business insurance
- Property, income, and business taxes
- Paying your employees and yourself
- High-quality food & coffee
- Marketing
Realistically, you should expect to spend no less than $80,000 to get started. But, the more capital you have, the more comfortable you’ll be.
There are a lot of other costs to consider as well. So, staying organized and having a plan in place to cover these costs is vital to your success.
6. Understand Laws and Regulations in Your Area
Knowing everything about local legislation may help you save money and avoid complications in the future. What types of insurance are you required to have? And what about taxes?
Learn about and revisit all the laws, rules, and regulations for operating a business in your area. Consider hiring a lawyer to help you out and keep things straight. It’s the easiest way to ensure you’re not missing anything.
7. Treat Customer Service as the Most Important Part of Your Business
70% of consumers say that they support companies that deliver great customer service. This is a huge part of building brand loyalty for your new shop. So, don’t let customer service sit on the backburner.
For high-quality customer service, think about:
- Training your employees and keeping them happy at work
- Stopping bad habits and repeat incidents immediately
- Creating a warm, inviting atmosphere for your customers
- Making things right with customers — every time
Thinking of Starting a Coffee Shop? Get Started on the Right Foot, Today!
Starting a coffee shop is a big idea and may seem like a daunting task. But, these tips will help get you started on the right foot from day one.
And, if sourcing the best quality coffee is a concern for your new shop, you’re in good hands. Check out this month’s inventory of ICT Coffee, today.
Your customers will appreciate ICT’s values, from farm to friends approach, and great taste. ICT Coffee has you covered. You’ll never have to worry about finding the best beans, again!