How to open a coffee shop? can you open a coffee shop? can you open a coffee shop?

The statistics that 90% of restaurants (including cafes, cafes and the like) fail in their first year of operation is a common myth. In fact, according to a study by researchers at the University of California, Berkeley, this figure may be closer to 17% (2% better than other service industries) and 20% live to their 15th year, which is an exciting figure for fledgling entrepreneurs. Opening a coffee shop or any business is risky, and the COVID-19 pandemic must now make that proposal riskier, but during the study, Americans spent about $50 a week eating in restaurants, some of them coffee and baked goods, more than five years ago.

This is a long process after the pandemic has subsided, but it is currently under way and we would like to see traffic recover. But how do you get these people to spend some of their $50 on your place instead of someone else's? Location is still one of the keys to the right side of the statistics. Let's focus on three of the many common questions about the location of coffee shops. This is not a comprehensive list, but an introduction to the reconnaissance and evaluation process of potential stores. Avoiding these three and any other problems that arise will save you time and money (not to mention stress).

The rent is too high

About the most important question about a position, a question that is often asked inexplicably is simple: can you afford it? If you can't, your dream space will soon become your nightmare space. On this issue, please refer to your hard-working sales forecast and business plan. Opinions differ on the ratio of rent to sales, but rent should probably not exceed 15% of monthly sales. 10% is a healthy target. This is much easier in some cities than in others. "if a location does not meet your standards or your plan, please go away."

Colin Harmon, founder and owner of Dublin's iconic 3rd Floor Espresso (3fe), even calculated predictions for three different cafe sizes before looking for locations: a takeaway espresso bar, a small caf é and a large caf é. In this way, when the "perfect" position is really available, he will know exactly where it fits, or whether it suits his means and vision. This is a pertinent suggestion. If a location does not meet your standards or your plan, please leave. This requires some discipline, which can be frustrating now, especially if the space is beautiful, but it will protect your business from unreasonable expectations and the resulting pressure. Although you can renegotiate your lease terms if you find yourself in an unstable financial position, it doesn't advertise much for obvious reasons, while for other equally obvious reasons, it depends on your landlord, their cash position can also be stressful, so, like most things, it's best to get rent in the first place.

Insufficient flow

Find a location with plenty of traffic, whether it's driving, bus, bike, subway, walking, etc., to maintain your sales forecast. It is helpful to take some time, even if only for a minute or twenty minutes, outside the potential location, to observe the behavior of passers-by and pay attention to walking and driving, especially during the morning rush hour. At first glance, it may seem like a tedious exercise, but it can reveal important information about the feasibility of the store. You can expect a small number of these passers-by to stop and a small number of them to stay for a while. For example, if 5000 commuters pass by during the morning rush hour and 2% of them stop (reasonably expected), there will be a total of 100 customers. These figures, with average sales of $5 (coffee and scones, or lattes), may reach $500 per day and $15,000 per month, thus justifying a monthly rent of no more than $2250. Considering the current price of handmade lattes, $5 is quite conservative. It can be said that knowing about traffic means that you know or at least have a better understanding of the reasonable terms of rent.