How to open a coffee shop and gain profit in a year
Do you want to start your own business, but can't decide what you want to do? How about coffee? This article lists 10 of the best coffee-based small business ideas that won't require much expertise or investment. Coffee is a great source of income: the global coffee industry is now worth over $ 100 billion. With the right business planning, some of this amount can be yours.
Some interesting facts about the coffee and coffee industry
It is believed that coffee is a bad drink, but this idea is not the most correct one. Any product is harmful if consumed in excessive quantities.
Coffee has many health benefits. Some of them are:
- Coffee contains antioxidants that slow down the aging process.
- Coffee has been shown to help prevent several diseases, including heart disease and diabetes.
- Coffee contains caffeine, which stimulates brain activity.
- Coffee improves mood and memory.
- Regular coffee consumption can prevent dementia, Alzheimer's disease, Parkinson's disease, cancer, stroke, and liver disease.
- Coffee burns fat by increasing the metabolic rate by up to 11%.
- Coffee increases physical performance by increasing adrenaline levels.
- Coffee contains many vitamins and minerals such as riboflavin, pantothenic acid, manganese, potassium, magnesium and niacin.
- Coffee is an effective cure for depression.
How to make money on coffee? So, now that you know how beneficial coffee is for health and mood, the only thing left to find out is the most interesting: how to make money on it? Here are the 10 best coffee-related business ideas.
Anti-aging coffee production
As mentioned, coffee has antioxidant properties that slow down aging. Youth and beauty, as you know, are always in trend: millions of men and women are doing everything to stay attractive and healthy, and this aspiration is a great chance for your business. One cup of coffee contains up to 350 mg of phenolic compounds, which remove peroxidation products from the body. If you dig around the web and find other ingredients that slow down the aging process, you can create your own brand of coffee aimed at combating age-related changes in the body.
Coffee helps you lose weight by speeding up your metabolism. There are many brands of coffee on the market today that are selling well all over the world. Advertising of these brands often mentions the magic ability of natural coffee beans to fight extra pounds. You can create your own slimming coffee or open your own online store and sell well-known brands there.
This is perhaps the most popular business in the coffee industry. A large percentage of people around the world drink coffee for breakfast and lunch, some go to coffee shops in the evening, dreaming after a hard day only of good rest and delicious coffee. This is why coffee shops are making excellent profits.
The production of coffee as a business may at first seem like a hopeless affair: the market today is represented by a huge range of coffee products, raw materials for production often go through a long resale chain, the goods sold takes up a small part of sales, etc. However, those who decide to take the matter seriously understand that this is not the case at all.
Products that belong to the elite category have absolutely no effect on demand. Coffee lovers are well aware that they only overpay for the brand itself, while the quality of the coffee drink (with a similar coffee production technology, source of raw materials, etc.) has practically no differences. Buyers are more likely to purchase packaging from an unknown manufacturer, who is responsible for the quality of their products - first for a sample, and then, after making sure of the reality of savings, they will buy this coffee constantly. Therefore, first of all, when organizing the production of coffee products, it is important to correctly present your product, albeit with a small mark-up - the main thing in this case is not making a big profit from the first sales, but creating the image of the product. Subsequently, the price can be raised - the target audience will already be created, which means that the consumer will still buy your products.
The specifics of the supply of raw materials should not be questioned either. In Russia today, a large number of all kinds of enterprises operate on imported raw materials: from the construction of buildings to the assembly of foreign cars at domestic factories - almost all production is carried out not without the use of foreign raw materials. In the economy, this is quite common, no one was ruined on supplies - the reason for this can only be a poorly organized business.
Coffee production technology
The production of instant coffee is conventionally divided into several processes:
- dry grain processing,
- wet grain processing,
- grain roasting and grinding.
Today there are two main types of coffee - arabica and robusta, and their total production volume is divided in a percentage ratio of 70 to 30. The latter, by the way, is considered less attractive in terms of aroma of coffee. But despite this, Robusta contains more caffeine than Arabica, it is quite often used in the preparation of espresso, allowing you to achieve high-quality coffee crema and savings on the mixture. The preparation technology of these varieties also differs: Arabica is usually wet processed, and Robusta is dry.
During dry processing, coffee berries are dried in the sun for up to 5 weeks. Upon completion, the coffee is kept for a certain time in bags, after which peeling is carried out to separate the green coffee beans.
Wet processing is carried out no more than a day from the moment of harvesting coffee beans, and it implies the following steps:
- separation from impurities,
- separation of the skins from the grain,
- fermentation, li >
About the peculiarity of coffee production today
The production of powdered coffee is practically not considered by many entrepreneurs today: it is rather difficult to equip lines for its production, i.e. the corresponding technique is practically not implemented, it is outdated and it is clearly possible to note its tendency to decrease in demand. As one of the most practical of the existing options for the production of such a product, its manufacture is considered as an accompanying product to a similar food product.
As an argument, we can consider the following statistics: for example, the volume of consumed instant coffee in Russia is 24 thousand tons, and the volume of freeze-dried instant coffee is 4 thousand tons, while the latter has a significant upward trend. In this case, if this type of coffee is not yet produced in Russia on a large scale, a start-up business can get an excellent start, and become at least widespread and in demand on a regional scale. If the capacity of both of these production lines is about 500 tons per year, then the choice becomes obvious. The profitability of freeze-dried coffee may be slightly lower than that of a granulated product, but once the return point is reached (which usually occurs after a couple of years), it will only increase.
Promising products for manufacturing
The widest assortment of this drink is presented on the market. Each consumer will find exactly what he likes. A study of the natural coffee market showed that consumers prefer a quality product, but they are not ready to overpay for the brand's popularity.
Lovers of this drink quite often try new types of coffee, as well as new brands for a variety of tastes and savings. We drink it every day, so even a small saving on one pack per month will be significant in the end.
The main consumers of the drink are restaurants, cafes of all kinds. By lowering the price, you can automatically become more preferred in the supplier contingent. The percentage of natural coffee on the market is growing and is increasingly replacing a variety of analogous drinks.
Coffee drinkers' preferences
Customers who prefer natural coffee understand well that in most cases they overpay only for a popular brand, and its quality under the same conditions (method of preparation, origin of raw materials, etc.) does not differ at all. That is, when buying, the consumer uses the main criterion - the ratio of price and quality of products.
The consumer is more likely to buy a package of coffee of an unknown but honest brand, the price of which is less than that of a well-known manufacturer, in order to at least try it first, and after that, realizing a real saving opportunity, he will buy it all the time.
First steps in the coffee business
Office managers who procure drinks for institutions will be delighted to reduce costs without compromising on quality. Therefore, at the initial stage, it is important to competently present your product, albeit with a very small margin. The main thing is to create a positive image of the product, and not make a big profit instantly.
Then it will be possible to raise the price, making it equal to others. The consumer, out of habit, will give preference to your already favorite drink. Therefore, a coffee business will definitely generate income if you approach business correctly.
Imported raw materials shouldn't bother you. In our country, a huge number of enterprises operate on imported raw materials: from construction-related work to the installation of foreign-made cars at our factories from ready-made components.
Coffee roasting is the thermal treatment of coffee beans in order to impart certain flavor characteristics to the drinks obtained from them.
Coffee roasting and delivery is an entire business sector that targets coffee and coffee beverage retailers. Orders are mostly wholesale, so when building a base of regular customers, you can reach a stable and high income.
The competition in this niche is average. There are many companies that roast coffee on domestic or Chinese equipment, and in order to highlight your product, you need to invest money in high-quality European equipment and training of your masters.
Target customers of mini coffee roaster
This business idea works in b2b format.
Your main customers will be:
- Cafes and restaurants, bars.
- Coffee-to-go dots.
- Retail coffee shops.
- Hotels and entertainment complexes.
- Coffee machine renters.
- Vending machine owners.
Some companies are also launching the b2c format, introducing an online store and selling small retail quantities of coffee to private clients. This is a more complex business format, but very promising.
Premises for a workshop
To run a coffee roasting business, you will need to find a suitable location. There are several requirements for such a room.
- Floor space for the workshop: 25 - 30 sq. ... Additionally, you will need a warehouse with a size of 35 - 40 sq. ... for storing raw materials and finished fried products.
- The location of the room is not very important. It is desirable that it be within the city limits, so you will spend less money on transportation costs. The main thing is a convenient access for cars.
- Communications: electricity, gas, heating, water supply, good ventilation. The room must comply with the standards of the SES and the fire service.
- Renovation can be done inexpensively, such as tiling the room and painting the ceiling with non-flammable paint.
Try to find premises with minimal rent, which is possible, given that the location is not a very important parameter. By working through this issue, you can increase your business profitability and speed up your return on investment.
Sometimes entrepreneurs, in order to test a niche, organize a business in the format of a home business, using the existing kitchen equipment for roasting coffee: pans, oven, airfryer or household roaster. But working from home is not a serious approach to business, and the result of roasting will be far from ideal, than you will significantly lose to your competitors.
Everyone thought about their own business. Unlimited income, independence, self-realization tempts. Opening a coffee shop is an interesting project for both those who are already engaged in entrepreneurship and for beginners.
Starting and developing your own "coffee business" is quite an attractive activity.
First of all, it's stylish: the very word "coffee house" is associated with subtle aromas, unhurried conversations of coffee gourmets, an almost family-like atmosphere.
Secondly, you don't need substantial investments to launch your own coffee shop, and the business itself is not that complicated.
Is this really so? Let's understand and draft a business plan.
Investing in a new business
A profitable business requires serious investments. In addition to finance, knowledge, strength and time are needed. Even if the last three resources are unlimited (which is still rare), the main issue is money.
The final estimate depends on many factors. Let's highlight the main ones:
- the concept of the institution;
- the location of the coffee shop;
- the area and layout of the premises;
- the type of working equipment; <
- supplies stock.
This is a shortlist of common factors. In each case there are many more of them.