Opening a coffee shop constitutes an excellent business idea and, if you are passionate about this niche, you can easily increase your monthly income and make a huge profit.
How much does it cost to open a coffee shop? You have to consider a large selection of aspects when it comes to this matter, including the overall investment you have to make in order to furnish you coffee shop, the cost of renting the location, additional costs of utilities, the costs of providing your services and numerous others.
It is important to keep in your mind that opening a coffee shop is not at all very cheap and you might end up making major investments for your budget, risking to earn nothing back if the business is not forwarded appropriately.
The location of your coffee shop is one of the first aspects you should consider when you plan to open one.
As a rule, the total cost of the rental should be approximately 15% of your total sales, but it is important to refer mainly to the first few weeks after you opened the coffee shop.
The price range you will find is extremely varied, ranging between $1500 and $2000 in some cases. Based on the location you will choose, this price might be lower or higher – for instance, if you open a coffee shop in the center of the city, you will pay higher values than if you open the coffee shop elsewhere in your area.
Furnishing Your Coffee Shop
Before you officially open your coffee shop, it is absolutely necessary to furnish it with the appropriate machines and furniture.
You will need a refrigerator, blenders, top-of-the-line espresso machine, espresso and coffee grinders, gourmet drip coffee brewers, chairs, bean bags, armchairs, sofas, tables and many other similar items.
The projected cost of this investment should be approximately 40% of your total sales, which will mean over $15.000 if we consider that you will need prime quality machines in order to start your coffee shop with the right leg.
However, if your budget does not allow you to make such a high investment, you can opt either for lower quality or second-hand machines, which will sum up to $7.000 – about a half of that price.
Your coffee shop needs, of course, running water, lightening, electricity and other similar utilities.
Given that you will use them more in this situation that you would normally do at home, you should expect a pretty high cost, which should be no more than 35% of your total sales.
Make sure to include the maintenance of your coffee shop – thus, the final cost might be higher than $3.000-$6.000, so you have to manage your budget wisely if you do not want to waste your money uselessly and encounter bankruptcy.
Services You Provide
If you wonder how much does it cost to open a coffee shop, think about the services you will provide to your clients.
You will have to purchase all the necessary ingredients in order to prepare the coffee and other caffeine drinks, along with baked goods, such as muffins, cookies, butter croissants, biscuits, etc.
The cost of these services will not be extremely high and you might end up spending approximately $4.000 monthly on them.
If you will purchase them from wholesale retailers, you might lower your expenditures with 20-30% – which will result in spending only $2.800 – $3.200.
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