Setting up Coffee Shop

L unknown

Hi All,
I am looking for some advice, myself and my friend are thinking about setting up our own coffee shop, we are looking at location at the moment, have one place in mind, It is on a very busy street and seems like the ideal location. Rent is very reasonable it would be about €700 a month? Comparing this to other properties we have looked at it seems to be the best.

What I am looking for is some advice of how to get started? We are both well aware of the market at the moment and of course are very wairy about starting up a new business in the current climate, but it is a risk we are willing to take for both our futures. We both have experience in the food sector.

I would appreciate any help & advice as we would have limited cash to start up this business.

Now i know some people here can be brutally honest but please be nice (",)

Thanks,
L

chillywilly

Good luck with your venture, plan well

JayTi

Unless you can drive the sales of take away trade and go for volume that way its very difficult to make money with bums on seats selling only tea and coffee and snacks. Nothing worse than a table occupied for an hour or more with a €5.00 sale. Food will drive trade but the margins are low. If the location will provide all day trade then it might be a runner. Best of luck though

aw

Are there offices nearby which will supply you with a regular takeout trade?

Will the landlord contribute to the fit out of the store?

Will he give you a rent free period too?

Whatever budget you set yourself, bear in mind that you will most likely over run it and be prepared for a long few months at the start where you may not even be breaking even!

Best of luck with it!

L unknown

Thanks Guys,

Some really good feedback there and i really appreciate it:)

Yes we will be doing food, there are a lot of businesses in the area, and I am sure we can come up with some special discount rate for anyone working in the area, or something along those lines... much like a loyalty card to generate income from them....

The idea about the rent free period is very good, I may try that one!!

Ben Moore

Here is a link to possible start up grants.


Some market research wouldn't go astray to see where exactly you want to position yourself, check out Michael Porter's five forces of competitive advantage

And do a SWOT analysis as well.

Good Luck and let us know where and when it opens so we can all go and have a cup.

tucked

A brave move in the current climate but best of luck with it!

I don't want to state the obvious but remember to account for the post-opening costs such as commercial rates, VAT, prsi, insurances etc in your forecasts. I too had limited funds when I set up my cafe and found rates/vat/prsi in particular surprisingly hefty! If you don't keep on top of them from day one it's very hard to catch up. Also, are you sure you can both get a regular wage out of it rather than just "drawings" here and there?

On a more practical note, don't be tempted to to buy all new equipment/furnishings. There's loads of second hand stuff around now for sale (cause so many places are closing down - sorry!) it would be a waste to buy all new.

And before you sign a lease you should get the EHO to have a look at the premises and ensure they will be happy with your plans for it.

Hope some of that helps. Let us know how you get on!

MyPerfectCousin

We opened a coffee shop six weeks ago. The replies above are spot-on. PM me with any specific questions.

L unknown

Hi guys,

Thanks so much for all your feedback, really really appreciate it. There really is so much to consider in terms of not only what you need to start up, to everything you'll need to pay down the line to keep things running smoothly.

I suppose the make or break thing with the current premises is how favourable the landlord will be in terms of rent and what equipment is going with it.

I'll keep you posted and any other tips would be greatly appreciated...

RATM

Some great advice on this thread so far.

OP I'd say be very careful planning your menu for food. Also in the winter try to get known in the area for your home made soups, the gross profit on soup is large and you can make it at home in bulk and then freeze it for using later. Go beyond just the boring vegetable option and if you can try to offer a choice of 2 or 3 per day.

Also try to get some Facebook/Twitter stickers for your front door. Encourage your customers to become a fan/follow you. Then from time to time you have a way of reaching your regulars with special offers / promotions which is free of advertising costs.

Finally after you have a good day time trade established and if the location is in a good spot for the evenings maybe you could look at the possibility of getting a restaurant license to serve wine and also stay open in the evenings, maybe serving curries, pizza or pasta. It could work if you are on a main st. with evening footfall.

leahcim

The Coffee and Tea forum has had a couple of discussions in the past on what makes a good coffee shop.

http://www.boards.ie/vbulletin/showthread.php?t=2056378147

Might be worth a look.

ezspeeder

Do a business plan, and try to capture the advice above into the plan. Assume the worst and hope for the best - then your plan will likely be more realistic. Also think about how to make your shop different - so many neat innovative concepts overseas that you could borrow from. Best of luck!

c4rt0

Any other advises ? How did you get on guys after all ? MyPerfectCousin, L unknown - is your business still working out 6 years later ?

StupidLikeAFox

Theres only one coffee shop thread around these parts.....http://www.boards.ie/vbulletin/showthread.php?p=102773520#post102773520