Updated: Jan 5
Here we're going to talk about five practical approaches that you'll need to accelerate the growth of your coffee shop. Growing a coffee shop can be a fun and rewarding business, but it doesn't come without a lot of challenges. There are several approaches you can take to grow your coffee shop, but in this post, we're going to discuss the most powerful ways to actually make your coffee shop grow to success.
Sell your coffee shop as a destination.
Develop a strategy on how to stand out.
Conduct market research.
Get your coffee shop business on Google Maps.
Negotiate with commercial property owners.
Also as you read this post, please visit The Cafe Academy and get a free copy of 'The Cafe Starter Business Guidebook PDF' to learn more about growing your coffee shop business from the ground up.
Sell your coffee shop as a destination
The secret to a successful coffee shop is to sell your coffee as a destination rather than a place to have a cup of coffee. You want to concentrate on building an amazing experience for your prospective customers. Make it instagrammable so that they can share their experience with friends and family. Attempt to create a positive experience for your customers so that they can keep coming back for more. Price your coffee and other essentials to reflect the quality of your company. You want to create an incentive for customers to spend $5 to $10 on a cup of coffee. This will require you to dig deep and learn a lot of creative ways to achieve this goal. There's more to a successful coffee shop than just selling coffee. Because if coffee was the only reason why people go to coffee shops, then what would stop them from buying a Mr. coffee machine and brewing coffee from the comfort of their home?
The type of people who go to coffee shops are business professionals who do work or conduct interviews, college students, people who go on dates to get to know each other as well as people who come to socialize and create new relationships. Once you understand that a coffee shop is more than just selling coffee, you'll begin to see success incrementally. Coffee shops are community-oriented and it breeds a friendly atmosphere. Here's a guide book that covers step-by-step how to start and grow your coffee shop from the ground up, from learning how to build business credit to get the capital you need to start your coffee shop with $0, and learning how to conduct market research effectively to mitigate the probability of your business failing. You will also learn why coffee shops fail in full detail and how to prevent yours from failing.
Develop a strategy on how to stand out
You will also need to be aware of who your competitors are in the area before you decide to start your coffee shop business. If you have competitors, you will need to develop a strategy on how to stand out. If you don't have any potential competitors, and you lack creativity, you'll still be able to have a profitable coffee shop, as you'll be the only coffee shop available in the area until a potential competitor comes along.
If you have $0 and you don't have any money saved to start a coffee shop business, you'll need to start building business credit as quickly as possible. In the process of building your business credit, you will need to construct a business plan that you will use to attract investors to raise money and the business plan can be used to obtain loans from banks and private investors. Getting a loan or an investment is difficult if you don't have proof that your company generates revenue. Finding an investor or getting a loan won't be your challenge, the challenge is to make your coffee shop profit and loss statement look attractive.
Conduct market research
Is a coffee shop a good business? Yes absolutely. It can be profitable to start a coffee shop. But all of this will vary depending on the circumstances. For example, if you are the only coffee shop in your area, you are more prone to having more profitability if you don't have any competitors. Also, you'll need to consider whether there's a lot of foot traffic. If your coffee shop is located in an area where there are many pedestrians and you're the only coffee shop, you'll experience higher returns. If you have a competitor and there are a lot of pedestrians, you can still turn a profit. In order to make your coffee shop profitable, you will need to do market research to find out if placing your coffee shop at this particular location will give you the most financial return. If you're planning to open a coffee shop at a physical location, you'll need to negotiate the rental prices for the commercial property at which you want to house your coffee shop.
Before that, you'll also need to decide if placing your coffee on A Street will yield a better return or B Street. The secret success of a coffee shop is to sell yourself as a destination rather than a place to have a cup of coffee. Due to increased competition and the convenience that consumers have to be able to make coffee from the comfort of their home, there needs to be an additional reason for potential customers to come to your store. Coffee shops are a good place for business professionals to hold meetings and interviews, for people coming in groups to have a cup of coffee and get acquainted with relationships, and a place for people and college students to study.
In particular, any business you start can become profitable if you conduct market research and follow a structured approach before you start. Coffee shops are no exception to this. If you have $0 and you don't have the money to start a coffee shop, you'll need to start building business credit to finance your coffee shop. Most of your time will be spent on finding an ideal location, negotiating with commercial property owners, understanding prospective customers in that area, creating a business plan to raise funding, and creating a floor plan that will attract customers.
Get your coffee shop business on Google Maps
The minute you launch your coffee shop, you want to get it on Google Maps as soon as you can by going to Google My Business. You will soon begin seeing results, as customers who are looking for coffee shops will notice that your store does exist. When potential customers type in 'coffee shops near me,' they will see your business information, such as your address and phone number, and they can quickly tap the navigation button that will direct them to your store. As you build up your local presence through Google My Business, in order to increase foot traffic to your store, you will need to develop a social media marketing strategy to raise awareness.
In the beginning, if you decide to get a physical location, you will be operating at a loss. And that's completely normal. However, in order to minimize the chance of failure, this is why it is crucial to make sure that you have chosen the right location, create a business plan, create a floor plan, and gain a better understanding of your chosen location so that you will eventually break even and become profitable. Preparation is the key to financial success.
Make your dreams come true and grow your coffee shop effortlessly by taking The Cafe Academy Master Class course and learn how to grow your coffee shop step by step from the bottom up with no experience and no capital. Here's a preview of what you will learn from the Master Class course.
Negotiate with commercial property owners
You'll need to learn how to negotiate with commercial property owners. Negotiation is simply coming to good terms with which both parties will be satisfied. So let's say for example, that you've found a place that's ideal, and you know deep down in your bones that this place is going to be a success for your coffee shop. But you barely have enough money. What you can do is negotiate with the property owners and say something along the lines of:
“hey, I'd like to be a long-term client for you and rent your property for years to come. However, I do not have enough money to pay for the first year's rent. I was able to secure financing for equipment to buy coffee makers, grinders, espresso machines, and the rest. I'm very confident that this coffee shop business that I'm going to place in your property will do extremely well on the basis of research that we've done extensively. I know you're asking for a rent payment of 30k a year. But I was wondering if we could do 15K for this year and by next year we could pay you 15K plus the original price of 30k a year.”
Depending on the owner of the property, he could say yes or say no. But if he said yes, now you can start your coffee shop at a much lower price and save 15K for the first year just enough to market and advertise to customers, and whatever capital you have left, you can use it to boost foot traffic to your store.
Now if the owner of the property says no, then you would have to make a decision to continue your search or decide to come up with the rest of the funds to start your business at that location. In these kinds of situations, you always want to evaluate what your options are and find a way to make it work. There are no set rules in the world of business and life for what you can do to achieve your goals.
Now, the better question to ask is, is it worth starting a coffee shop business, and will I see financial success? The answer would be yes, starting a coffee shop business can be a worthwhile journey only if you learn what is needed to grow your coffee shop efficiently. Keep in mind that the goal of starting any business is to satisfy and fulfill the needs of people locally and internationally. Coffee shops are another kind of need that people find valuable, and there's always a place where you can start a coffee shop.
You can even consider starting a coffee shop from your home, depending on where you live. If you live in an area where there are a lot of pedestrians, this can be a great opportunity to get your feet wet so you can have a customer experience. Visit this guide book for more coffee shop related topics.
Let's grow your coffee shop together at The Cafe Academy.