How To Run A Successful Coffee Shop/ Cafe

Opening a coffee shop can be a profitable business if done right. Walk past most speciality coffee shops these days and you will see them full of customers enjoying their coffee, socialising with friends and family. Some will be working on their laptops and some will be standing in line for a coffee to go.

Here at Cuffed-in Coffee we have managed to create a successful coffee shop in a small quiet town where many people did not think it would be viable.

3 years later we have the Accolade of High Street Start Up Of The Year, with the Start Up Awards National Series. We are also finalists in the Food & Drink Category of The Great British Entrepreneur Awards.

In this Article we are going give you our quick top tips for running a successful Coffee Shop.

1- Location & Rent

Coffee Shops are a place to work socialise and grab a quick cup of coffee to go. You want to find a location where there will be a lot of footfall. For example a high street. Business professionals love coffee and use it as fuel. Finding a spot near offices and Schools/Universities is the go to. 

Consider the footfall you will get and then decide what rent you are willing to pay. Do not be afraid to negotiate rent. If the numbers are too high you will set yourself up for failure. A rough guide would be 6% of revenue. So if you anticipate annual sales of £100,000 you should be aiming to pay £6000 per year for rent. 

Parking and ease of access also make a huge impact on whether people will visit your place. 

 2 - Serve High Quality and Local Produce

As a business we have a duty to look after our community. Coffee really is on the rise and people are looking for that coffee that stands out. Having top quality speciality will set you apart from most coffee shops/cafes. Using as many local businesses will keep money in the local economy and shows that you want to help the community and not just profit from them.

3- Get Barista Training

People think it is a simple task to make coffee. Let me assure you. It is NOT.

Without proper barista training you can serve substandard coffee even with a premium product.  Under/Over extraction of coffee completely ruins the coffee.

It does not do the coffee justice to ruin it at the final step. Customers will always return if you serve a good cup of coffee.

4- Create a Special Place

Getting the music right the furniture right and the decor right along with adequate plug sockets for charging and free Wi-Fi will create a space that people want to be in a place where they know they can relax or get some work done. Please look at our other blog post "The Third Place" for an in depth explanation of this.

5- Provide Great Service

This is an obvious one that starts with you we are people if you are not happy then you cannot make other people happy we always try to remember all customers names and orders ask them how their day is going and even offer a listening ear it is a privilege to work in an amazing space with an amazing team and a vision share this with your customers and watch them return.

6- Know your Numbers

It is all well and dandy to have all the above points in check. BUT if you do not manage your numbers, you will most likely fail. Set up a business plan before starting. This is a topic I want to dive in deeper with but for this blog I will keep it short. I always like to know my Minimum Daily target. This keeps you on track daily and stops you burying your head in the sand. Heres how I do it below.

  • Know your fixed costs eg. Rent, Rates, Insurance etc. £1000
  • Know your Direct Costs eg. COGS Coffee, Milk, Stock etc. £1000
  • Staffing eg. How many hours for the month (40x4.3= 172 hours x £10 = £1720)
  • Add all costs together (£1000 + £1000 + £1720 = £3720)
  • £3720 ÷ 30 (days of month) = £124 Minimum Daily Value
  • If  you are hitting this target then you will be safe for the month

If you liked this post please like comment and share. We are moving into wholesale business to business. We want to help other business' to become successful. 

If you are looking for a new Coffee Supplier then look no further. We will provide you with all the tools to succeed.

Drink Coffee, Seek Adventure, Enjoy Life