How To Open A Coffee Shop- Dreaming about your own business can be infinite. Making dreams a little more difficult. A step-by-step plan for opening a coffee shop will help you correctly allocate time and investment.
HOW TO OPEN A COFFEE SHOP FROM SCRATCH- STEP BY STEP GUIDE [2020 EDITION]
- Step by step instructions for opening a coffee shop
How to open a coffee shop and not make a mistake? Starting a business from scratch can be scary. Beginning businessmen want a kind of “magic button” that gives a guaranteed result. However, even employment does not guarantee a maximum monthly income. After all, the premium depends on how you coped with the tasks. The profitability of the coffee house reaches 30%, and the payback period starts from 6 months. And yet there is no magic, and the financial result depends on the effectiveness of your efforts.
What you need to know before opening a coffee shop
- Types of coffee shops
- Registration of legal entity
- Location Search
- Equipment and ingredients
- Staff
- Customer service
- How much does it cost to open a coffee shop
How To Open A Coffee Shop
- Types of coffee shops
Establishments for the sale of coffee and beverages are divided into two areas:
- coffee bar “to go”;
- classic coffee house with a landing.
To go, coffee bars specialize in selling take-out drinks. The main focus is on coffee; the choice of an additional range is minimal. This is a format for dynamic guests who prefer to drink a drink at the counter quickly or to take along on the road. The area of ?? such cafes is small, 6-10 sq.m. Investments in the opening of 300-700 thousand rubles. This is the best option for starting the first business.
Classic coffee houses, as a rule, have their own kitchen. Guests are offered an extensive menu of desserts, pastries, snacks. Come here to spend time in a cozy atmosphere. To open, such an institution is objectively more difficult, especially for entrepreneurs without experience in catering — the cost of opening of 1 million rubles and above. Accounting and tax accounting in large formats is also more difficult. In addition, more permits are required.
Cafes of any format can be profitable. However, work processes in them are built in different ways – from the choice of premises to attracting customers.
- Registration of legal entity
You can register a legal entity in the nearest branch of the Inspection of the Federal Tax Service or the MFC. Online registration is also available (tax website www.nalog.ru).
For coffee shops without a service hall, an IP is more suitable because of simplified accounting and tax accounting. Here is a list of documents required for registration:
- Application for registration of IP (form P21001);
- Receipt of payment of duty;
- Copy of all passport pages.
Registration of IP takes from 3 working days. After its successful completion, you get a few documents:
- OGRIP (Certificate of state registration of IP);
- EGRIP (Extract from the state register of entrepreneurs);
- Notice of tax registration;
- Notice of registration with the pension fund;
- Notification of the assignment of Rosstat codes.
Often, the tax inspectorate works on the principle of “one window,” and the whole package of documents can be obtained immediately.
- Location Search
For the success of the cafe, traffic and conversion are primarily important. Traffic is the number of people passing by the place. To estimate the location, traffic counting is required, we recommend taking several short measurements on different days and different times, and then displaying the average value.
The conversion indicates the percentage of people in the passing stream that buy coffee from you. So, for street coffee shops, the average conversion is 2%, that is, out of 500 people that passed in an hour, only ten will become buyers. So, if the coffee shop is open for 12 hours, you can count on about 120 checks per day.
We, for example, the average check for March 2019 is 150 rubles. Multiplying the average check on their number, you will receive a forecast of the daily earnings of the institution. In our example, this is 120 * 150 = 18,000 rubles per day or 18,000 * 30.5 = 549,000 rubles per month.
Of course, calculations alone are not enough. Estimate the presence of the closest competitors, their range, and prices. Make sure that the entrance to the coffee house will be clearly visible to the passing stream. Pay attention to “traffic generation points” – places nearby with a similar target audience: educational institutions, banks, service centers, etc.
The next important indicator is the rental rate. A place to accommodate a coffee shop in 6 square. m. in St. Petersburg costs from 25,000 rubles in the network of supermarkets. In shopping centers, rent will be noticeably higher, in popular shopping centers it exceeds 200 thousand rubles for the island. In business centers, the rental price varies from 30 to 80 thousand for a place of 8-10 square meters. m. The more you pay for the rental of premises, the higher the financial risk. Therefore, the high cost of rent must be justified by the sales forecast of the coffee house.
How To Open A Coffee Shop And Bakery
- Where to find places to place:
Internet sites (CIAN, Avito, Domofond).
Real estate offices.
Independently walk through the areas where you live or work. You know these places like the back of your hand. Passing familiar routes, visiting local business and shopping centers, visiting institutions, personally evaluate the possible options.
- Equipment and ingredients
Our franchise partners get the basic equipment for the coffee bar for free use. The set includes a professional two-group coffee machine and coffee grinder. Some suppliers also provide coffee equipment for use with a certain amount of coffee beans purchased by you.
It is also advisable to purchase a blender and a juicer. Then the barista will be able to prepare on the basis of espresso more diverse and complex drinks, increasing the sales of cafes.
For the storage of ingredients in the cafe must have a refrigerator and freezer. In small coffee bars, there are enough portable models that fit under the table top.
A showcase with desserts and pastries works like a magnet for cafe guests, increasing sales by 20% in small establishments of a fairly compact desktop model.
The main ingredients in the “coffee to go” segment are coffee beans and milk. When choosing coffee suppliers, be guided by the reputation of the supplier, value for money, and uninterrupted supply. Milk for drinks should be not less than 3.2% fat so that it is whipped into a stable foam, and your latte and cappuccino pleased customers.
- Staff
Its financial result directly depends on the work of employees of the coffee house. Sociable and friendly barista, competently working with guests, can bring the cafe to the planned sales figures already in the first month of work.
Search barista starts no later than two weeks before the opening. Time is required for the selection of candidates, training, and internships at the workplace. Common search channels are specialized sites (hh, resto-job) and social networks, and the ad in the cafe itself is also useful.
On a personal interview, it is important to understand the involvement of the employee, his personal characteristics. If he does not consider the work of a barista as a real profession or is looking for a temporary job, then he will not be delayed in a coffee shop for a long time. As a rule, such barista often does not comply with internal standards, are late and miss shifts. Conversely, an interested employee will hold the place and try to work in the best possible way.
For coffee shops of the “to go” direction, the state, as a rule, consists of two baristas. Manager functions are performed by the owner of the business. Support staff (accountant, lawyer) working on outsourcing.
- How to attract first customers
If the institution does not stand in the passageway, but a little in the courtyard or, for example, in the deepening of the shopping and entertainment center, then here you need to turn on the fantasy and wake up in yourself an internal massager trick. Walk through the nearest shops and offices, where possible, meet with staff, chat. Tell them about yourself and your coffee, or even offer a discount. It is verified that some of these people will choose your institution even despite the higher price compared to competitors, simply because they will remember you as a pleasant person – in short, this is a story about emotions.
Many businessmen and advertisers will prove to you that good old promoters with discount flyers are still well brought from the street. This is true, but we are categorically against it: such a method is a pretty strong blow to the environment (no matter where the leaflet goes – to the urn or goes to an institution – it is extremely difficult to recycle such printing products). Moreover, do not forget that the flyers in the nearest urn on the street will often smoke, and you and your guests do not need this.
The best option (on investments it is sometimes even cheaper than flyers) will be to launch targeted advertising in social networks. On the Internet, if you wish, you can find a lot of information that will give you a set of knowledge sufficient for a small initial advertising campaign telling potential buyers about you. The main thing is to understand who they are – employees of the shopping complex, office workers of the nearest business center, residents of a neighboring house, or university students who walk past you to pairs. Most likely, both those and others, and others, and many more are therefore targeted in targeting.
- How to work with a stream of clients
Typically, the target audience of a coffee house is described as follows: “women and men, age 18-45 years, average income.” This is too general description and useless for practical work with clients.
How To Open A Coffee Shop And Bakery
Knowing customers “by sight” allows you to:
Determine what is important for different groups of clients. For example, a young mother will appreciate the children’s menu, hypo-allergenic natural drinks. And after a night shift, the taxi driver will drop by for a double espresso.
Run special offers for specific groups. So, in the example above, mom will offer a discount on healthy candy. The driver can be handed the card “7th coffee as a gift.”
To save the budget by launching targeted actions, rather than firing a cannon at the sparrows.
Improve customer relationships. It will be pleasant to the young mother to receive a suitable special offer, and to the kid – to receive a tasty dessert. Therefore, they will quickly become regular customers of your cafe.
For example, we realized that in one of our institutions, the main audience is parents with preschool children. Children often ask their parents for coffee, “like a father.” However, caffeine is harmful to the fragile nervous system of children. Therefore, we proposed an alternative children’s menu based on chicory. Now kids can feel like adults without harm to the body. The coffee shop’s revenue increased by 10%, as parents buy two drinks instead of one. In a word, understand for whom you are opening a coffee shop, and act addressable.
How much does it cost to open a coffee shop (6-10 sq. M.)
- Production 120,000
- Production of the trading island, installation, connection to networks 120,000
- General expenses 100,000
- Security payment under the lease agreement 50,000
- The first full month of the lease 50,000
- Branding, printing, promotional opening 29300
- Equipment 338600
- Coffee machine, coffee grinder 170000
- Fridge 11,000
- CCTV unit, video cameras, microphones 13300
- Software + hardware 55400
- Music player 1500
- Terminal for cashless payments 6000
- Showcase table 27,000
- Electric kitchen scales 1400
- Freezer 20,000
- Microwave 4,000
- the Internet 2500
- Glasses in the counter for instruments and mixers 2000
- Mixer for drinking (bottled) water 1500
- Pump for coffee machine (sink) 13,000
- Cream siphon 10,000
- Inventory 15310
- Household goods and stationery 2934
- INVESTMENTS 606144
Note: this amount is in Russia currency; you are free to convert to your country currencies.
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Conclusion On How to open a coffee shop from scratch- Step By Step Guide [2020 Edition]
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