Who here has opened a coffee shop ? What was your initial investment and what was your rolling capital...

DELET THIS

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Bullshit.
smallbusiness.chron.com/good-coffee-shop-profit-margin-70391.html

Gross margins of 85%
Operating margins of 2.5%

Nope.

Guess I’ll sell pussy and weed then.

I have scouted some places for a small show and they all rent for 3k~5k a month. So they can't increase the rent more than 10% per year and I was thinking to move the business to a different location once I decide where to buy. Owning right off the bat seems too risky for me as the locations might not work with the small coffe shop I had in mind. How much is the rent hike on your familly business per year ?

Can you elaborate? What exactly is a cyber coffee shop?

Every coffee shop that has ever opened in my town lasted less than 2 years and got BTFO by Starbucks every time.

Seems like every 'mom and pop' coffee shop just can't help themselves from charging $7 for a cup of coffee and $9 for a stale pastry.

This.
This too, but only in the first world.
Here in Brazil you can make a lot of money by selling black coffee and coffee with milk since we have a strong culture of drinking coffee.
Yes, ordinary coffee, no fancy coffee, you spend like 2 Reais (about 70 cents) to make a full jar of coffee and sell each cup for 2-3 Reais.
Yes, you can make a profit from the very first sale.

In fact It is a cyber-café, but café means coffee in my language, so i decided to make a pun

If you have the work ethic you could be retarded and make a small fortune.

1) Find a small town with no townie coffee shop (pop between 10,000-20,000.)
2) Pick a theme (literally any theme will do, the more condescending it is to small town ilk the better.)
3) Find a high shelf distributor for your beans.
4) Advertise the fuck out of where your beans are from and how they are crushed fresh every morning (you gotta shmear it on thick, you want yuppies to think you're hand harvesting and crushing the beans out of your own back yard.)
5) Make 6 or 7 signature drinks on the menu and practice the hell out of them until you know them better than the lines of your hands.
6) Promote the hell out of the shop before opening (find events to cater for free/little charge to promote yourself.)
7) Open and profit
8) Too busy hire someone to help.
9) Too busy still hire another person
10) Too busy still and the lines are too long
11) Open another location and hire a manager for the original

Sit home and profit. I literally have no work ethic for that type of shit, I hate food/beverage industry but if you aren't a druggie burnout who can actually tolerate the work it's impossible to fail.

The problem is that americans usualy have to pay an incredible high rent, so they need to charge absurd amounts of money for simple things like coffee. That is why starbuck-like companies are successful because they can charge less by selling thousands upon thousands of cups everyday

There was a snack bar in front of my store some months ago, the guy was paying 400 Reais (130~140 USD) and making a good money selling cheap coffee cups because his expenses was ridiculously low.
He closed the store to move to another city, but that was a successful model because his rent was very low (Of course we can't make nearly as much as people in america, but it is more than enough to thrive here)

Always look for the lowest rent in a good place.
Don't ever rent a place where nobody walks in the street.

Lmao, sou brasileiro também.

Maybe you should sell coffee and energy drinks there as well, never seen a lan house doing it.

Good advice.
Brazilian coffee is pretty cheap and famous, i would recommend getting some for starter.
(Buy "café arábica" it has the best taste)

You're spending more then 150k if you're starting with a bare room. If it's renovated knock off 30k

The pitfalls is getting customers and expenses are inventory. I've owned 2. Liquidated both and im in the process of working out a deal with privately owned businesses that are close to a Starbucks to install btc atms

There is a drink's distributor nearby so it is not worth it (and i make most of the revenue in repairs)

>Don't ever rent a place where nobody walks in the street.

Terrible advice. High traffic regardless of foot traffic is fine. My local town has a small coffee shop that has shack like buildings you drive up to on ether side and order drive-thru style.

They're so successful that they have 3 locations in my town of 20,000 and they've opened two more in the bigger metropolitan area of 50,000.

Location is important, foot traffic is not unless you are specifically looking for that type of clientele. You advice is conflicting because you're telling him to rent cheap, renting cheap would mean the smallest place possible, that doesn't mean it has to be where a lot of foot traffic is because that usually needs to be bigger for a cafe which means its not cheaper.

>You're spending more then 150k if you're starting with a bare room. If it's renovated knock off 30k

Jesus, i spent less than 2k USD to open my whole store, america is goddamn expensive for startups.

We do not have culture of drive-thru here (most of the world doesn't have it either)

Did you buy or rent ? And what was the reason for the two liquidations ?

If you rent cheap your expenses will be lower, small places are good for starting a business, it allows you to analyse the market and to know if you will have custumers for your services. Of course things may vary depending on location and business model (A great advice for Americans might be a bad advice for people on other countries and vice-versa)
Always do your own research.

E.g: In Brazil people use pirate software to save money (nobody will give a fuck about that, but they will crucify you if you do that in America)

There's no way that's possible. 2000 for a brick and mortar store? Did you pay the building inspectors and your contractors with candy bars? I spent 2k a month on inventory alone.
I rented. I liquidated the stores because I wasn't turning enough of a profit and we had to struggle in a saturated business model.

Are you that guy who partnered up with some user?

In fact it was about 1200 USD (I am the guy who opened the cyber-café with financial help of a Veeky Forums user 1 year ago)

>rent $153
>computers $459
>furniture $180
>tools $400
I already had a printer.

>building inspectors
This is Brazil mate, one year and the gov never came to my neighborhood, i will probably never have to deal with that. (Don't try that in the US, they will skullfuck you) Basically my advices are for third worlders.

Yes i am.

Total: $1192

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you need an exclusive differentiating product that nobody else has. it will cost you a fuck load to import unless you live in the coffee belt. you can look into some ultra high end exclusive coffees from Colombia (where i am currently located) focusing on organic shade grown fair trade coffees from lesser know regions like the sierra nevada coastal mountain ranges and chicomocha canyon region. also make sure to guilt hipster faggits saying that you have conflict free coffee. illustrate that lots of major coffee plantations are on illegally possessed land that was purchased from the FARC. otherwise stay out of the business because competition is stiff as fuck. hire big titty bitches too and make sure they wear v-neck sleeveless shirts.

based, glad you made it

Thanks :3

Here’s a thought that nobody has suggested yet, why doesn’t OP just buy a license with Starbucks and just start selling with them? I mean you’d have to find an area that doesn’t have a Starbucks yet and that’d be difficult as hell but it’s worth a shot.

Yes but isn’t 1,200 US dollars a lot in your country? I imagine that’d be very hard to save up in the first place.

>opening a small coffee shop is the same lvl of investment as a starbucks

yeah OP, why don't you open a couple of McDonald's restaurants too?

Never thought of it that way. Maybe I should just buy out Alphabet, they seem to be making money, rite ? In all seriousness, I am not interested in buying existing businesses or franchises. Renting a place and making a 10% margin is what I was expecting for the next 3 years before reevaluating what to move to next. I do have connections in Colombia, Argentina and Russia, but not interested in import export yet. Located in Canada, forgot to mention that earlier so that might have avoided the 2k cyber café debate.

This is not possible in burgerlardia

I know it might sound ridiculous but like the Brazilian guy in this thread said already: starting a small coffee shop is gonna be hard as hell when you’re competing with Starbucks. So why throw your money away on some shitty little shop that’ll go under within the first year because everyone would rather go to Starbucks? OP would be better off saving his cash until he can purchase a license to open a Starbucks or a Biggby coffee shop because the odds are just too heavily against him.