What you must know before opening a coffee shop

In foreign countries, coffee is a huge industry, from equipment manufacturers, raw material wholesalers, retailers to the vast number of consumers, are very mature and perfect. At present, the coffee industry is far from forming a scale in China, so the potential for development is huge. And for many idealists, opening their own coffee shop is a deadly attraction: a way to get out of a 9-to-5 job, read a book, listen to music, make friends, and make money in a room full of coffee every day. But shrewd planning is essential to turn this beautiful vision into reality.

How much profit space does the cafe have?

According to the basic calculation, that is, about 10,000 people need a coffee shop. Take Beijing as an example. Beijing has a resident population of 18 million, so it needs 1800 coffee shops. Now there are only about 200 coffee shops in the whole city, so there is a big gap.

Brand store VS personality store

For those who want to invest in coffee shops, the first thing to consider is whether to join a brand coffee shop or open their own personality coffee shop.

Advantages of Brand Store:

1) High survival rate. According to statistics, the survival rate of brand coffee shops is about 70%, while the survival rate of independent stores is only about 40%. Franchise brand stores undoubtedly have a high safety factor.

2. Worry. For investors who simply have the desire and capital to open a coffee shop and know nothing about how to open a coffee shop, joining a branded coffee shop is a good choice. They usually provide one-stop services from site selection, decoration, equipment, materials, personnel training, marketing and publicity.

Deficiencies of brand stores:

1. Lack of strong brands. At present, the main franchised brand coffee shops have more than a dozen brands such as "Shangdao Coffee","Mingdian Coffee" and "SPR Coffee", but they do not have strong brand appeal. The strong brand "Starbucks" is exclusive to "Meida" a franchise, do not provide franchise services.

2) Higher costs. In addition to paying a one-time franchise fee, franchisees also need to pay a deposit and an annual royalty. The joining cost of each brand varies, usually around 500,000 - 1 million yuan. According to Mr. Zhao, head of Shangdao Coffee Beijing, told reporters that joining Shangdao Coffee requires at least 1.2 million yuan of investment.