How much does it cost to open a coffee shop from scratch
My name is Andrey, I'm 35 years old, I live in Kislovodsk, I'm married. I would like to tell you how I opened a mini-coffee shop to increase my income, but instead went into negative territory and decided to close.
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Why did I decide to start my own business
I am a lawyer by profession, but in the legal field I somehow did not grow together from the very beginning. Nobody wanted to contact the newcomer with paid orders, and it was impossible to live on one salary. Without work experience, I could not get a good job, and there was no opportunity to gain experience: I had to feed my family.
Then I began to think about what kind of business you can open. For a long time I paid attention to how often vacationers take thermos with tea and coffee with them and drink on the go. So at the end of summer (this is important) the idea came up to open a mini-coffee shop so that people could buy take-away drinks.
First steps in business
After reading the related sites, I sketched out a simple business plan. According to the plan, about 300 thousand rubles were needed to open a coffee shop. I didn’t have that kind of money at that time and I decided to go to the bank to get a loan. I'll tell you about my cost estimate when starting a business:
- renting a room cost me 20 thousand rubles;
- light cosmetic repairs and furniture for a coffee shop (painting walls, two tables and chairs) - 25 thousand rubles;
- a device for preparing drinks, a batch of coffee, tea, cream, sugar, disposable tableware - 150 thousand;
- design and production of signs and business cards - 25 thousand rubles.
In total, I spent 220 thousand rubles to open the Coffee to Go coffee shop.
The beginning of the end: how my business started to go negative
All costs were difficult to cover. Let me tell you a few words about my monthly expenses:
Where to start
The easiest way to start a takeout coffee business is to buy a Coffee In franchise.
But if you still want to do it yourself, we offer you step-by-step instructions from the expert of the Coffee In company Vladislav Petlyuk.
The business of selling coffee to go is quite profitable: it requires minimal start-up and operating costs, while it is high-margin and quickly pays off. It is believed that opening an express coffee shop is not at all difficult, and therefore yesterday's and even today's students without entrepreneurial experience often take up the business. But quite often completely different stories happen in this area.
Before the opening of the first CoffeeIn outlet, we already had experience in business, in the b2b segment, but wanted to work with a wider audience. So we got the idea to go into the express coffee business.
To begin with, we analyzed competitors in the Chelyabinsk market, there were about ten of them at that time, and many of them were network. Some players had 8-10 points.
The take-away coffee industry is often highly competitive. Moreover, coffee is not always a popular drink, because in fact very few people understand it. There are cities where it is difficult to succeed in this area. For example, in Kazan, tea is preferred, and in Chelyabinsk, the most popular points of sale are shawarma. All this can affect the success of a business, and therefore, before investing in opening a coffee to go, it is necessary to study the market.
I constantly buy coffee at express coffee shops, so I often went to competitors and knew roughly how they work. I talked a lot with baristas in coffee shops and it helped a lot. Usually, baristas can tell you anything: how much revenue, how many customers, etc.
It is necessary to look at what competitors' prices, what assortment. As a rule, the overwhelming majority of coffee shops offer the same in terms of assortment and are pricing similar.
In terms of prices, you shouldn't break away from the team, especially in the direction of their increase: at first, the overpriced price tag will play against you. As a last resort, prices can be increased in the future.
As for the assortment, here it is worth being smart and not offering only those drinks that are best sold by your competitors. The presence of your own special "chip" in the menu will help to gain popularity faster.
What you need to know before opening a coffee take-out kiosk?
Step-by-step instructions for opening a take-away coffee kiosk
To begin with, you have to start an individual entrepreneur. This can be done through the MFC, the State Services website, or submit documents to the tax office. In the latter case, you will have to pay a state fee of 800 rubles.
OKVED 56. 0. 1. If you plan to make a couple of tables so that guests can sit with the purchased drink, then it is worth adding 56.0. If, in addition to coffee, ready-made food is also planned in the menu, for example, cakes and buns, then refer to the 47th section of OKVED, where you can select the desired item. For the sale of packs of tea and coffee beans, 47. 9. 5.
The next step is to decide on the taxation system.
- We have chosen the patent taxation system for individual entrepreneurs. It seemed to us the most profitable, since you can pay for the registration of a patent on a monthly basis and it exempts from other taxes, but does not exempt from insurance and pension contributions for individual entrepreneurs, - says Ksenia Gordienko.
After opening, you must submit a notification to Rospotrebnadzor. As for fire safety, if the entrepreneur is the owner of the premises, then this issue will have to be resolved personally with the State Fire Inspection.
- In our case, we entered into a sublease agreement and the lessor under the agreement is responsible for the fire safety of the premises. We purchase fire extinguishers and the corresponding logs for them, - the expert shared.
List of documents
How to open a cafeteria at the lowest cost and get a steady income? There are many similar establishments in every city. But each of them pays off and makes a profit, otherwise they would be closed. Yes, it happens that they go bankrupt, but rarely.
This is how the future entrepreneurs think about their business prospects. How profitable is it to open a coffee shop? Is this business worth doing? How soon will it pay off? What problems arise during the work? Look for answers to all these and other questions in the article. Also, as a bonus, it will contain a typical business plan for opening a coffee shop from scratch.
Mini-coffee shop: business and its components
A coffee shop as a business is very promising, but only if a few rules are observed. If you stick to them, you won't have to complain about the absence or lack of visitors. Here they are:
- Choosing a suitable place. Its profitability depends on the location of the establishment. The closeness of the source of the clientele contributes to the successful solution of this issue - it can be permanent or "through". You probably shouldn't tell people who are going to open a coffee shop in Moscow or another metropolis that deserted places are not suitable for this.
- Correct positioning. This success factor is directly and closely related to the previous one. It is difficult to find a suitable room, and the average portrait of a visitor depends on its location. If there is an educational institution nearby, the emphasis should be on young people. Popular tourist areas take a different approach. Office centers are the third. Etc.
- Real budget. The initial conditions for an entrepreneur can be different. Even the most successful location and unmistakable positioning will not help if the businessman does not "pull" the costs.
- Effective promotion. Marketing methods are different for each area of activity. The originality of the conceptual idea for opening a coffee shop can ensure financial success.
You can get a free design for signs and posters for opening or holding promotions at Gavrilof Brothers Group of Companies.
Experience shows that such an establishment does not bring unheard-of profits. With good organization, you can hope for a steady income with minimal risks.
Let's look at the success factors in order.
Where to start a small coffee shop from scratch?
So, the idea is in the most general terms. It was the turn of concretization. To open a coffee shop from scratch, you first need to find a suitable location. Most often, the thought of this business does not come to minds of the richest people, and therefore the story will focus on the least expensive option. A typical suitable property is a small hall with a front entrance, usually a former apartment converted to a non-residential fund. Approximate room characteristics:
- Area - from a few to 20-30 square meters.
- Proximity to gathering places of potential clientele of the desired type. If necessary, the idea of a portrait of a typical visitor can be revised.
- Lack of competitive points in the immediate vicinity.
Many people believe that starting a coffee to go from scratch is easy. Yes, if you've already started a coffee business. Ignorance of the intricacies of this business, like any other, can turn the most promising business idea into an unprofitable enterprise that works to zero.
If you have no experience and want to open your own establishment - especially for you, we will hold a free webinar "Step-by-step plan on how to open your own coffee shop, bakery or pastry shop", where we will share practical experience and life hacks. Click the button below and register!
Is it profitable to open a coffee shop with you? With the right approach, the profitability of a coffee-to-go business can reach 20 to 50%.
In this article, the Coffeedia team will share their experience of opening a small coffee shop from scratch. We will analyze the stages of opening a coffee-to-go point step by step, pay attention to the important nuances of this business, and also answer the most popular questions from beginners who want to open a point from scratch, but have doubts.
HOW MUCH DOES IT COST TO OPEN A COFFEE WITH YOURSELF
To start a small coffee shop from scratch, you will need a minimum investment, depending on the location, the cost of the selected equipment, preparation of marketing materials and signage, which will constitute the main pool of expenses. There are options for how you can save your budget and open a coffee point from scratch with minimal investment, which we will talk about below.
In general, you need to be ready for the initial investment: from 300 thousand to 1 million rubles. depending on the city of opening and other factors.
Let's look at our example of opening a coffee to go island in a business center:
- To open an island with coffee from scratch, you need to purchase the island itself (with a display case and equipment) And this is the most impressive amount in the budget. You can buy a used one, which will cost several times cheaper. Or choose a different format, for example, a room with minimal repair costs + separately purchase the equipment you need at the start (refrigerator, microwave, juicer, grill, blender, etc.).
- Good professional coffee machines start from 120,000 to 180,000 rubles. Therefore, at the start, it is wiser to rent a coffee machine, and then purchase it.
- Consumables "consumables" and products for the first 2 weeks (coffee beans, milk and cream, sugar, syrups, spices, disposable cups and lids, napkins, straws - we recommend not buying plastic, but switching to more eco-friendly raw materials, wooden spoons, bottled water). In the future, try to calculate the volume of products based on the average number of drinks sold and do not purchase more than is necessary for your specific coffee take-away point.
- Opening take-out coffee from scratch without involving a designer is difficult. Do not forget that you will need to independently spend time and money on the development of corporate design not only for advertising products, but also for the interior.
- Sign (if necessary)
In addition to "consumables", calculate the monthly costs of maintaining a "coffee to go" point: