Coffee shop location | Rent factor determines success or failure _ how to judge whether the store rent is too high

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Many people who want to open a coffee shop have this problem. To open a shop and start a business, they all want to find a good location, but a good location means high rent, although a good store may bring high returns to the owner, but it also comes with great risks.

How can we judge whether a shop with a high rent is worth settling in? First: determine whether the selected project is dependent on the target store.

When it comes to opening a shop and looking for a shop, the bosses' first reaction is to find a good position.

For shops of the same size, the main factor affecting the rent of shops is the location of the shops. The better the location, the easier the business, the higher the rent.

First, location accounts for 50% of the success or failure of the opening of the library.

There are many written and unwritten rules on the location of boutique cafes, for example, at street corners, it is best to have commercial office buildings or shopping malls, communities, schools and so on nearby. The location of boutique shops is indeed very demanding, it can be said that business cannot be done because of poor location, but although some projects with good locations can make the business better, careful calculation of the increased rent will not increase profits. Then there is no need to pursue the location of the store too much.

How to judge the dependence of your project on the location of the store? This should be judged by the nature of the customer entering the store to spend.

In terms of customers' consumption motivation, the consumption nature of customers can be divided into two types: random consumption and purposeful consumption.

Random consumption means that customers do not have a plan before entering the store to buy things, and the products operated by the store are not necessities for customers, just like common beverage coffee stations. Although the turnover of this kind of shop is also affected by product quality, it is more dependent on the number of customers, which requires a better location of the shop.

Purposeful consumption means that customers already have a clear consumption goal before entering the store, just as customers want to drink a good cup of coffee and go straight to their favorite cafe. If they want this kind of shop to do good business, they mainly rely on the quality of the products and a large number of loyal old customers, but the dependence on the location of the store will not be so high.

Of course, the requirement for the location of the store here is not so high, which does not mean to find a particularly remote location, but that the location of this kind of store is almost enough, and there is no need to find that kind of place with high rent.

When the shop owner understands the consumption nature of the customer entering the store, he can consider whether it is necessary to rent some shops with higher rents. And to determine that there is a greater demand for the location of the store, we should consider whether the rent of the shop is too high.

Step 2: judge whether the store rent is too high

The location of the shop is good, the flow of people is large, and the rent is a little expensive, which is acceptable, but if the rent is too high, affecting the profits of the shop, then there is no need to rent a store.

Generally speaking, the rent of the store does not exceed 15% of the turnover of the store, which is an ideal situation, but if it exceeds 20%, there will be no room for profit. No matter how good the location, no matter how many people flow, no matter how hot the business is, it is just a job for the landlord. The boss doesn't make much profit.

When the boss finds his favorite bunk, don't worry, first carefully investigate the specific situation nearby, if you have experience, you can estimate the daily turnover of opening a shop here in the future, calculate the maximum rent ceiling that the shop here can accept, and then talk to the landlord about renting after figuring out these problems.

Step 3: rent analysis

Choose in the old residential areas, the rental price of this kind of shop is usually low; it does not matter in the urban area, if the range of 1000 meters can be connected to modern civilization, it is even more ideal. The equipment does not need to be equipped with a high-end brewing machine, just start flushing it directly, and then buy a second-hand Italian machine when you get some money. the configuration of hand-brewing equipment should be high-end, like the old hutong in Beijing, recommended: coffee + residential accommodation + studio. Three big boys revamped the old house in Beijing hutong, shaking themselves into the most fashionable coffee hostel!

In residential areas, the rent is relatively moderate; most of them are communities with more mature living facilities, with convenient transportation and crowd gathering. For example, Tianhe in Guangzhou not only has a "fast" side, but also retains the "slow" atmosphere of local people, thus forming a unique feeling of "petty bourgeoisie" in Guangzhou. This is one of the bases for the development of early boutique coffee in Guangzhou, and many old boutique coffee shops are "hidden" in the quiet district. Reference: coffee shop location and operation | how to open a coffee shop in the "community" to share experience

The prosperous shops in the block, although the rent is expensive, there is no shortage of people. They are open from 8 a.m. to 22:00 in the evening. No matter what kind of restaurants they are, they are hard to find in the afternoon. It is not suitable to choose boutique cafes, because the rent is high and the production is slow.

In the campus, the rent is generally at a medium level. However, there is no business on weekends, national holidays, winter and summer holidays, so under the premise of the same rent, the actual utilization rate of the campus is relatively low.

In the business district, CBD, the rent is relatively large, and some more remote areas will also be very low, but it should be noted that the operation of the business district is before 18:00 every day, and there is little business on weekends and national holidays. The flow of people in the business district is relatively stable, and the income level is relatively secure, so it is easy to measure whether your shop can make a profit. The business district generally takes a fast route, emphasizing the amount of running. Attract ordinary employees through fast production, convenient service and affordable prices.

In addition to the above-mentioned conventional choices, there are also many cases of alternative location, such as creative parks, industrial factories, sports venues, fitness centers, industrial factories are those buildings that have changed their properties due to the changes of the times, and have been transformed into Loft creative industrial parks, commercial exhibitions, fashion wholesale places, and so on. The biggest advantage of choosing this kind of address is that the rent is cheap, suitable for cross-border individuals or companies, although the flow of people is small, but the cheap rent is here.

No matter what kind of shop you choose, the ultimate goal is to make money and to get the maximum profit, so no matter what the location of the store is, as long as you can get the maximum return, it is the ideal store for the owner.

When the boss is looking for a store, don't want to rent it when he sees a shop. Usually, he will find a few good shops and choose the best. And how to select the store that suits you best?

Shop owners can first rule out some shops that are not suitable for them according to some rents and locations. For example, although this place has a flow of people but no target customers, give up! Although the other store is good, I can't bear the rent and give up!

After excluding some stores, the rest can make some more detailed comparisons. For example, when judging whether a shop is good or bad, the daily turnover of opening a shop here is roughly calculated according to the situation of the shop, and compared with the rent of the shop, if the rent exceeds 20% of the turnover, the shop will be abandoned.

Through this comparison, it is easy to determine which shop is the most suitable for you.

Summary

This way of selecting stores is to roughly evaluate the future profits according to the situation of the shops, and determine the shops that are most suitable for them through the level of profits.

Although the boss's estimate is not accurate, it can also greatly improve the success rate of opening a store and avoid losses.