Coffee Shop Consulting and Opening a Coffee Shop

Operating a coffee shop is a lot of work!

So you want to open a coffee shop business! Welcome to my world! Let me start by saying it’s a lot of work but it can be very rewarding. Also, Starbucks and Dunkin’ are NOT your competition. They do what they do well so let them keep at it. You will have a far superior product than either of them, and work a lot harder to put it out. I’d like to put that in your head right now.

My name is Tony DiCorpo. I own Troubadour Coffee Roasters.

Don’t get me wrong. I love what I do. I am a barista and coffee roaster. I love owning and operating my coffee shop business. I’ve been doing it for 20 years but it did not come easy. And I made a lot of mistakes. I can help you avoid the same fate.

However, on the surface people see it as ‘neat’, ‘cool’, and that ‘you can do what you want because you own your own business’. They also think you are rolling in the cash. They don’t think about cash flow, credit card fees, staff call-offs, product delays, accounting dilemmas…you get the picture.

Let me say that it is very rewarding, and the money can be good if you have good cash flow and operate within certain parameters but it’s a lot of work and responsibility. You will need an excellent team.

It costs a lot of money to open a coffee shop.

Be prepared to spend anywhere from $60k to 300k depending on a lot of things. The equipment alone that is needed will cost a minimum of $30k. Adding a kitchen? Double that easily to $60k.

A typical buildout will cost $30k-150k+ depending on what you want.

Furniture and fixtures can cost another $10k+.

You can buy used equipment but remember you are buying someone else’s problems, and they never come with manufacturer warranties.

You also need enough capital to operate for at least 6 mos so you need to know what your anticipated operating costs are going to be. Your rent is $4k per month? You need $40k in sales every month just to break even. That’s a lot of coffee.

Architect plans and buildouts need to be done correctly by skilled people, and they are not cheap. A proper set of state certified plans can cost $10k+. Most cities will not let you build out without those plans approved or without licensed contractors doing the work. Some cities mandate a contractor must even install your window logo decals.

Buying a building? There goes at least 20% as a down payment.

My point here is that you should be prepared to spend a lot of money in the beginning, have plenty of cash on hand and plan to not get it back for a few years. You will also need to hire professional people and skilled labor to do the work. You will need to run your coffee shop. If you have never operated a food-service business, you will need to learn costs of goods and pricing. You (and your staff) will also need to learn how to use your shop equipment. These and other headaches can take the joy out of business ownership very quickly.

Ready to move forward?

Any of these items apply to your current situation?

So you can take the responsibility and you’ve got the money? Great! You will also need to have a realistic plan, both business and financial; don’t wing it and don’t shoestring it or you will likely be in the 80% that fail within the first five years of being in the food service business.

Do your due diligence and find an excellent location. You will need reasonable rental terms, adequate demographics and traffic. You will also need to fill a need in a particular area.

Have excellent products that are not readily available at the closest coffee shop nearby. Mochas are a dime a dozen. What makes yours so special? Starbucks shop clones still decorate cute storefronts and busy plazas. There is no need for another. In other words, be unique. Find an angle or niche that no one is filling and perfect it.

Be certain to have consistency in EVERYTHING you offer, including customer service. Which is the next point.

Have EXCEPTIONAL customer service.

Full of vigor and think you can do this? Great! Let’s chat!!

Already in construction or build out? Typically, I get involved before the planning stage but I may still be able to assist you. Get in touch with me so we can chat about your project and needs.

Are you ready to open? Again, I’d prefer to get involved at the start of a project to ensure your floor layout will work or your equipment is adequate to your volume needs, or something else that is coffee shop-specific but I may still be able to assist you. Maybe you need barista training or some other coffee related consultation. Get in touch and let’s talk.

Someone is offering you the deal of a lifetime to buy or takeover their coffee shop? Think of why they are selling it and if it is a viable idea to acquire it. There are as many reasons as there are coffee shops that one is for sale. I can offer you some insight on your idea. Get in touch!

I hope you found this mini list of information helpful. I have been called lots of things for being frank, but this will save you time and money if you lease or a buy a space because you love it, or you want to be rich because you own a coffee shop. These ideas will not get you far in this (and most) businesses. It is important to have a realistic idea of what is needed and what to expect, especially at the beginning.

I can certainly assist you with your project from start to finish or somewhere in between but you must have the energy and understand that this endeavor is a lot of work. If you are still entertaining the idea of opening a coffee shop, we can certainly talk more. Follow this link to contact me and set up a time that we can chat. Looking forward to learning about your vision! Tony

(Please do not call or come into the shop regarding consultation or training. We are frequently with customers and unable to devote the proper time to talk to you about your vision or answer questions.)