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

Ignoramus
Ignoramus

Who here has opened a coffee shop ? What was your initial investment and what was your rolling capital. Interested in unexpected pitfalls and expenses. Also: Has anyone experienced with crypto business investment? How did you do it?

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

SniperGod
SniperGod

Coffee shop. Hmm pretty generic OP. Doesn't sound like it'd be too hard to do though. The trick is you need a theme or something gay like that. A lot of successful ones I see hire strictly hipsters and overcharge for baked goods etc.

So you're gonna want to find lots of hipsters and at least one guy who can draw stupid shit in foam, normies love that shit. Also a chalkboard sign outside with some hipster nonsense or pseudo-intellectual bullshit is a nice touch. I can't prove this but I imagine the more hipster a place is the more they can charge their customers for shit coffee.

Basically OP if you're a hipster youll do great, if not then hire massive hipsters, and you might hate yourself for owning this shitty joint in a few years because of what it represents but you can also laugh that you're unironically making money off them so idk. I can tell my ADD pills are wearing off.

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King_Martha
King_Martha

If you are not passionate about the product, find something else to sell.

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TalkBomber
TalkBomber

Personally not into the hipster and foam, but figured I could pay someone enough money to do that. The reason for choosing a coffee shop is precisely that it is generic enough and could be a good start. I noticed that rightafter foam drinks and chalk signs people het the square POS for the tech shits and advertise that they accept crypto. Did you even buy a coffee with crypto ? And did that make you want to comeback or not ?

Nojokur
Nojokur

coffee margin 97.5%

you literally can not fuck up a coffee shop

MPmaster
MPmaster

This is actually my dream. There really aren't many mom and pop coffee shops here in the us. Gunna be a code monkey till I save up enough to open my own shop. Coffee shops are pretty comfy

hairygrape
hairygrape

key with restaurants and the like is not to rent
rent is the ultimate kikery, in particular with places like this
think into the future, you want to be able to sell the restaurant/café, this means you need to own both the venue and the business
if you rent youre just setting yourself up for a future rent negotiation that will be very much tied to the success of your business
if you rent, prepare to get assraped

t. dad owns and runs a restaurant/bar

Gigastrength
Gigastrength

saturated market
directly competing with numerous multinational corps
Easy money

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Carnalpleasure
Carnalpleasure

I have a cyber-coffee shop but well... we don't sell coffee

TalkBomber
TalkBomber

Why the hell would you enter the industry?

5 Forces Analysis of the industry:

Buyer Power: Strong. They have plenty of choice unless you can successfully differentiate from the millions of other shops.

Supplier power: Normal. Most of your ingredients are commodities

Competition power: Strong. Competition on price everywhere with lots of competitors.

New entrant power: Strong. Anyone can enter, no barriers to entry.

Substitute power: Strong. Just go to any other food or hipster place.

All that leads to average operating margins of 2.5%
smallbusiness.chron.com/good-coffee-shop-profit-margin-70391.html

Nah, fuck that shit

TurtleCat
TurtleCat

DELET THIS

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JunkTop
JunkTop

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

Gross margins of 85%
Operating margins of 2.5%

Nope.

Fuzzy_Logic
Fuzzy_Logic

Guess I’ll sell pussy and weed then.

Raving_Cute
Raving_Cute

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 ?

Methshot
Methshot

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

Garbage Can Lid
Garbage Can Lid

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.

PurpleCharger
PurpleCharger

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

Inmate
Inmate

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.

Spamalot
Spamalot

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.

likme
likme

Lmao, sou brasileiro também.

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

Evilember
Evilember

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

JunkTop
JunkTop

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

Illusionz
Illusionz

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

Garbage Can Lid
Garbage Can Lid

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.

happy_sad
happy_sad

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.

Skullbone
Skullbone

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

SniperGod
SniperGod

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

FastChef
FastChef

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)

happy_sad
happy_sad

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.

lostmypassword
lostmypassword

Are you that guy who partnered up with some user?

JunkTop
JunkTop

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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Boy_vs_Girl
Boy_vs_Girl

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.

viagrandad
viagrandad

based, glad you made it

Poker_Star
Poker_Star

Thanks :3

LuckyDusty
LuckyDusty

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.

Supergrass
Supergrass

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.

WebTool
WebTool

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?

SniperWish
SniperWish

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.

PackManBrainlure
PackManBrainlure

This is not possible in burgerlardia

Stupidasole
Stupidasole

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.

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