Starting a Campus Coffee Shop: Lessons from a Student Entrepreneur

Opening a coffee shop near a college campus sounds like a smart move—students drink coffee, right? But for Tang Pengxiang, who launched his shop just before graduating from Heilongjiang Nongken Vocational College, reality quickly complicated the dream. Between unpredictable foot traffic, supply delays, and costly design decisions, his journey highlights just how many factors can make or break a first-time coffee business, even with a built-in local customer base.

The short answer? Tang’s coffee shop took nearly ¥100,000 to open, including a ¥10,000 franchise fee, but unstable customer demand and poor early marketing led to inconsistent revenue. Despite good intentions, his shop never found a clear operational highlight or loyal customer segment.

Why This Student Opened a Coffee Shop Near Campus

Tang Pengxiang, then-president of his college’s KAB entrepreneurship club, had both motivation and support. With a group of like-minded peers and guidance from school entrepreneurship courses, he partnered with a senior to research the local market. Their survey of the area around Heilongjiang Nongken Vocational College revealed few existing coffee options—prime motivation for launching their own. They ultimately chose to franchise with a small but known beverage chain in Northeast China.

How the Coffee Shop Launched with Limited Funds

The startup raised nearly ¥30,000 in venture capital from a startup firm, added to Tang’s personal savings of ¥20,000 and parental support. The franchise fee was just ¥10,000, with equipment and technical assistance included—key for a first-time entrepreneur. Tang negotiated to skip the standard franchise design, hiring an independent designer for a “rustic, cozy” aesthetic instead. Though intended to create atmosphere, that design choice consumed 60–70% of the initial budget, forcing cuts elsewhere, especially equipment. Total investment reached almost ¥100,000 before opening.

What Went Wrong After the Doors Opened

Despite solid preparation, post-launch challenges piled up. The coffee shop divided customers into students, faculty families, and staff, offering low-, mid-, and high-priced drinks across lounge and private seating—a strategy that failed to effectively target any group. Customer preferences varied wildly, and taste-driven segmentation didn’t pay off. Foot traffic was irregular, making staffing a constant headache: busy periods lacked workers, while quiet times saw overstaffing. An attempt to import premium coffee beans based on supplier advice backfired when the roast didn’t resonate with drinkers. Marketing relied entirely on word of mouth and part-time staff promotions. A small in-store coffee grinder for DIY brewing drew little interest, although offering tabletop games attracted a small but steady crowd each month.

Mistakes and Lessons from the First Coffee Business

Early hurdles included delayed supplies due to communication breakdowns and licensing delays from procedural unfamiliarity. Tang and his partner managed those obstacles, but ongoing issues proved tougher. The two co-owners shared vague roles, often consulting friends or their entrepreneurship professor for ad hoc solutions. They learned firsthand how unstable demand, poor marketing, and mismatched design investments can drain a small coffee shop’s potential. Most importantly, they discovered that running a campus coffee shop isn’t just about being near students—it’s about deeply understanding their habits, tastes, and spending patterns.

Frequently Asked Questions

How much did it cost to open the campus coffee shop in the article?

The total investment was nearly ¥100,000. This included a ¥10,000 franchise fee, around ¥30,000 in venture capital, ¥20,000 of the founder’s personal savings, and additional support from family. About 60–70% of the initial funds went to interior design, leaving less for equipment.

Why did the coffee shop struggle to attract customers?

The shop divided customers into broad groups—students, faculty, and staff—and offered tiered pricing, but this strategy didn’t effectively target any specific group. Taste preferences were highly variable, and without a strong marketing plan or clear coffee concept, the shop couldn’t build a loyal customer base. Foot traffic was inconsistent, which also hurt revenue.

What marketing methods did the coffee shop try?

The shop relied mainly on word of mouth and promotions by part-time student staff. They also set up a small coffee grinder for customer DIY use, but it didn’t attract much interest. Monthly traffic from tabletop games was the most consistent draw.

What were the biggest operational challenges after opening?

The owners faced unpredictable customer flow, leading to problems with staff scheduling. They also had issues with supply delays, early licensing hurdles, and an expensive interior design that ate into the equipment budget. Miscommunication with suppliers led to buying unpopular coffee beans, and the lack of a clear marketing or coffee concept made targeting customers difficult.

Did the franchise model help the new business?

Yes, the franchise provided equipment and technical support for a relatively low ¥10,000 fee, which was important for a first-time entrepreneur. However, the owner opted out of the standard franchise design to create a custom “rustic” interior, which increased costs and reduced funds for other essentials.