Today the number of coffee shops and various places, where you can drink a cup of good-scented coffee 24/7, exceeds even the most humble expectations. Coffee shop statistics show that more than 20,000 establishments operate in the United States alone. If you count the number of coffee shops in other countries, it is also impressive, and global coffee trends make any coffee business profitable, allowing extracting a solid profit. In this article, we will talk about how profitable it is to open a coffee shop, how much money it takes to run the entire business, and what its development prospects are.
The service sector under consideration has long been crowded – it’s not a “blue ocean” anymore but you can still see how more and more coffee shops are growing in cities, despite the fierce competition. This leads to one obvious conclusion: the culture of coffee consumption is actively spreading and growing on a serious scale, the huge demand for coffee consumption forces producers to increase production capacity. All this makes the business of creating coffee for consumers around the world interesting primarily from the financial point of view.
Competing with rivals in this field is challenging, especially when it comes to long-standing giants like Starbucks. This and other chains get the main profit, as it operates both on the local and international markets. Thus, the main sales (70%) are made by large chains and international coffeehouses. The remaining percentage falls on small, new, and not very popular coffeehouses, which still make profits and continue to develop, providing its customers with delicious coffee and other unique offers.
Average Number of Customers
Coffee has long stopped being just a drink to cheer up in the morning. Coffee trends are spreading very fast these days. This invigorating drink has already become a lifestyle for many creative and successful people, who are hard to imagine without a nice cup of fragrant coffee.
Coffee shop offers are quite diverse today.
- First, you can choose any coffee drink you like, in almost any volume and for the most suitable price.
- Secondly, other delicacies like sandwiches, cheesecakes, cupcakes, biscuits, and other treats are also available in most coffeehouses.
If we are talking about a small coffee shop, the average number of sold cups of coffee is equal to about 230 pieces per day. If you include other purchases, the overall profit margin will be quite impressive.
In large coffee chains, this figure is, of course, much bigger. Thus, an average Starbucks coffeehouse sells more than 600 cups of coffee per day. These cups are different in volume and, accordingly, in value, but given the special popularity of large cups with coffee drinks, their price is higher and profit from such sales is escalating rapidly.
The average number of coffee visitors ranges from 150 to 500 people, depending on the size of the coffeehouses, its popularity, and available offers.
It is noteworthy that most coffee shop visitors are not coffee gourmets and instead of traditional black coffee, they are more inclined to try some new flavors and unusual coffee drinks.
The percentage of coffee gourmets is about 37%. Such customers are the most demanding, primarily interested in the highest quality of coffee, and will not consider any interesting offers or additional delicacies unless fully satisfied with the main drink.
Coffee drinks, obviously, bring the greatest profit to coffeehouses. Everything else is a kind of addition. Food and desserts deserve special attention, as delicious cakes and biscuits are also quite popular. Many visitors purchase a cup of cappuccino or a latte with a dessert. Therefore, it makes sense to surprise your visitors with unique offers, e.g. special desserts, which can’t be found in other coffee shops. It also allows you to attract more customers to your coffee shop, increase sales and profits.
In addition, coffeehouse culture development indicates certain trends, aimed at attracting more visitors and forming a loyal audience. In coffee houses, you can increasingly find cozy lounge zones where visitors can not only drink coffee but also hold a business meeting or work on a laptop. Special attention should be paid to various generally available games, puzzles, books, and other entertainment often offered to visitors. Many coffeehouses help their baristas enhance professionalism, providing them with the best training courses and improving their skills.
Many customers will prefer a famous barista to an average one, knowing that he/she makes the most delicious coffee, most professionally. Later, we will consider the importance of having a real professional, who knows how to make real good coffee and literally knows everything about it, in a coffee shop.
The development of a customer loyalty/interest system is also becoming more and more common on the global coffee market. More coffee houses tend to offer their visitors to buy products that are directly related to coffee, e.g. certain types of coffee, cups, thermoses, brewers, spoons, and other accessories that may interest coffee drinkers and instill a culture of proper consuming of this invigorating drink.
All of this contributes to building a loyal customer base and turning random visitors into regular customers who, provided you can offer more than just good coffee, will want to come back again. Creating the right atmosphere and interesting offers is just as essential as using high-quality coffee. This approach allows you to increase attendance, which, obviously, increases sales.
How Much Do Coffee Shops Make
The profitability of a coffee shop depends primarily on the total average check, i.e. the most frequent check. If a regular Americano costs about $3, then various delicious desserts, sandwiches, and additional toppings can “expand” the check. Moreover, you can also offer your customers high-quality coffee beans and various accompanying accessories to use at home – with such goods, the check may no longer be $3 but, say, $30.
The menu can be expanded by various variations of coffee drinks. Considering popular vegan trends and rejection of cow’s milk, it makes sense to offer high-quality vegetable milk to your customers. This can be your unique selling proposition because today not many establishments can offer coffee with good soy or almond milk, which can be used to attract new customers. Note that the cost of coffee with almond milk will be much higher, and you can safely add up to $6 to the price.
Only an experienced barista, that knows how such milk affects the flavor of the drink, can make delicious coffee. The presence of a specialist in this area also allows you to slightly raise the price tag and overall profits.
A coffeehouse location can be decisive in terms of profit in the coffee business. The number of visitors depends not only on the proposals and customer service level but also on location. This is perhaps the most controversial issue because renting a good place will cost a lot but the expected profit should be high, provided there are not many competitors and a large flow of people in the coffee shop area. To make people know that there is a new coffee shop in the area, you need to use appropriate advertising tools.
Depending on a coffee shop type, the profit varies quite seriously. Small coffee shops in malls provide much less profit than large Starbucks-like coffee shops.
Drive-thru coffee shops, in their turn, should be considered with special attention. This may be a good option at the start but counting on a serious profit, in this case, is not always reasonable.
Seasonality, weekdays, and holidays have a strong impact on overall profits. Big holidays usually harm sales, as many people prefer to go outside their cities. Coffee sales statistics by weekdays indicate that coffee is bought more during weekends than on working days. As a rule, the peak of sales falls on Fridays. On Thursdays and Saturdays, people are also more inclined to buy coffee in coffee shops.
In terms of seasonality, December is the month with the highest sales. April, May, and October are profitable and show good sales, in contrast to summer months and New Year holidays. In general, the curve on the seasonality chart of coffee sales is quite homogeneous, and it can’t be said that if one month is profitable, the other is completely unsuccessful.
Some calculations can be made for specific figures, which allow having a visual representation of coffee shop profits. Talking about the average minimum profit of a small coffee shop, the amount of its gross income is about $875. The average check will be around $11. These are the most humble figures, which are still much higher than those shown here at the largest coffee houses on the market.
Now let’s consider an abstract example of how a coffee shop works when opened from scratch.
First, to orient yourself in the coffee market, visit Meetup. What’s this? Meetup is an online service for people with similar interests and informal meetings of experts to share their experiences and discuss various concerns. Such experiences may help a new business to stay trendy, plus, you have great chances to get useful contacts there that will help you create your product roadmap.
It should be understood that at the initial stage of the coffee shop operation, profit will be minimal. Most often, new coffee shops go negative during the first couple of months. In the future, there is a slight increase in net profit, and after six months of active work, there is a possibility of reaching an income ranging from 1500 to 2000 dollars.
With the right approach, marketing, and active coffee shop development, the 12th month of work may bring from 10 000 to 12 000 dollars. In the future, the net profit index can increase significantly. This is an example of what money a coffee shop can bring, provided it has a good location, excellent menu, good baristas, thought-out marketing strategy, and other unique features for customers.
If we take the annual operating period of a good and small coffee shop for the second year since opening, the average profit margin of the coffee shop will range from $20,000 to $50,000. An independent rather large own coffee shop can bring in about $100,000 per year. As for franchises, they are one of the most profitable options for working with coffee and can generate about $70,000-$200,000 per year.
The most effective way to increase potential profits is to build a network of coffee shops, located in different states, in one state, or across the whole country, which is, of course, better. If one coffee shop works quite stable and is in demand, it makes sense to think about expansion and consider opening a second as well as subsequent coffee shops. In the future, it makes sense to create a proposal to work with franchises for willing businessmen – that’s how many popular coffee shops, restaurants, and cafes have developed and expanded. In fact, the franchise is the most effective tool for scaling business.
Service Level and Barista Importance
In addition to potential profits that can be calculated, a coffee shop also implies expenses that need to be weighed in advance. These include the cost of renting space, taxes, delivery, and maintenance costs, as well as an equipment list, which will be discussed later.
You should implement performance management for the planned roadmap, constantly monitoring the effectiveness of your employees. It’s important to check if they are doing their job right, not just at the initial level but growing in the professional sphere. You need to understand that a good employee requires constant and considerable investments.
Given that the average pay for barista in Starbucks is $1800, you need to put that money in the monthly expenses for the work of employees. It seems clear to everyone that having an experienced professional barista in a coffee shop is mandatory. If coffee is prepared wrong, it will have the most direct impact on the reputation of the coffee shop and is unlikely to lead to attracting many customers.
A professional barista should know all the details of coffee making, its optimum serving temperature, and combination with other ingredients. The level of service is so important that many coffee connoisseurs can immediately recognize a good coffee shop just by looking at the brewing and serving procedures.
The best coffeehouses conduct active performance management, invest in their professionals by helping them attend specialized barista courses, where they can get essential knowledge, mandatory for anyone who wants to make delicious coffee, and take it to a serious level. Barista’s experience and skills are appreciated in many coffee shops around the world.
In Italy, for example, most baristas know that making good coffee is not enough – it’s also about proper communication with customers and providing maximum attention and comfort. It is never recommended to disregard the level of barista experience when opening a coffee shop.
Business success is determined by a properly drafted roadmap, which contains a chronology of what you and your team will do next. Income growth traction must be systematic here and now to see the dynamics. Employees’ performance management should also be done to analyze the successful development of the business strategy. Professionals, who love what they do and know almost everything about coffee, are the key to success even at the smallest coffee shops.
Coffee Shop Equipment List
The cost of all coffee shop components, needed to open it, is usually quite impressive, although it depends on the size of the establishment and your goals.
The approximate cost to open a coffee shop is about $200,000. It will be quite a spacious coffee shop with many seats, where visitors can comfortably accommodate themselves. The cost of basic coffee equipment needed to make coffee drinks will cost you around $20,000-$40 000.
You can save a lot if you roast your coffee yourself. If you buy unroasted coffee beans and make the necessary level roasting in the coffee shop, you will need an industrial coffee roaster, which will cost about $3,000 to $8,000. This approach provides significant savings in the long term. The cost of green coffee on the market is much lower than that of already processed, so it makes sense to do the whole processing cycle yourself.
Although, this option may not be suitable for all coffee houses. In some cases, it is beneficial to sign a contract with coffee roasting factories, which can immediately deliver your coffee in the right packaging, with your brand logo.
The rest is spent on the premise, its design, and communications. You have to provide the coziest atmosphere for comfortable pastime and the opportunity to enjoy coffee.
Moreover, the main baristas and other employees will need the most comfortable workplaces, where they can be productive and useful, despite a large number of orders.
If a regular coffee table height is approximately 16 to 18 inches, this is not enough for a coffee shop. It is best to set up high tables, suitable for bar chairs, or conventional tables for couples or companies of four.
Initial expenses typically include employee salaries and all the necessary products and equipment costs. In addition, you should not forget about taxes that you will have to pay each month, as well as ren payments, which are fixed, regardless of your monthly income, and tends to increase over time.
To open your own coffee shop, you will need the following appliances:
In general, this is a basic list of equipment and appliances, which allows you to have an approximate idea of coffee shop operation and related expenses.
Apart from everything mentioned earlier, there’s also electricity consumption costs. This applies to the main lighting in the coffee shop and energy consumption of all equipment installed for coffee, dessert, snack production and storage. On average, 10 cups of coffee, made by a coffee machine, will take approximately 1500 Watts. According to the number of cups sold per day, you can calculate how much electricity it will take per month.
Industrial coffee grinders usually consume about 3000 Watts per hour. When it comes to large quantities of coffee beans, processed by professional coffee roasting systems, electricity consumption can vary from 5 to 15 kW per hour. This should be added to the electricity consumption of refrigerators and freezers, as well as other electronic systems in the coffee shop.
Then there’s also water consumption, air conditioning, or heating costs, which can be quite extensive when it comes to operating a large coffeehouse with a high turnover.
The efficient operation of a coffeehouse is impossible without a proper economy where it’s possible and appropriate. If a coffee shop has been open for more than a month, you should assess all costs that arise internally and can potentially be excluded. Products that require special storage conditions need particular attention. You should always keep an eye on the shelf life of your products so that you can use products, that cannot be stored for long, in the first place.
This also applies to stale coffee, which is no longer suitable for brewing or selling. Transportation and storage costs are always high, and milk delivery once a week, instead of two, is more reasonable from the financial point of view.
Working with staff requires a special approach from you as an owner because the expert staff is the key to success. This does not necessarily mean professional service but rather understanding the importance of working cost-effectively where it is needed. Often, some baristas do not pour milk all the way out of the pack, with remaining few milliliters going straight into a sink, which ultimately leads to buying more milk.
Your employees need to be cost-effective and responsible for using products properly in their work. The same applies to working with coffee – a barista should use precise portions of coffee, necessary for making a particular coffee drink, and avoid consuming coffee above the norm.
Optimal allocation of prices and their gradual increase is the key to successful coffee house development. This does not necessarily mean that you should set any prices you want but, if necessary, don’t be afraid to increase them for some menu options. This may discourage a few customers but most visitors will not even notice it.
For instance, you can increase seasonal/craft product pricing, this also applies to special short-term offers that don’t “sit” on the menu for long.
If you’re thinking about lowering prices to attract a larger number of customers, forget about it. By and large, it’s a mere utopia, because it will eventually lead to a depreciation of your labor and offers and will not allow you to generate maximum profit in the future. Any businessman will tell you that dumping will not lead to anything good.
The coffee shop size affects many things and, eventually, profits. It’s important to understand the value of properly positioning all interior elements as well as products that should immediately fall into the visitor’s eye. Enough space should be provided for customers to feel comfortable and stay in the shop (even if there’s not enough room for a cat). On the other hand, there should not be a lot of non-functional free space in a coffee shop, which can negatively affect your lease charges.
Starbucks Franchise Cost
Opening a coffee shop is a rather complicated process that requires a lot of effort if you have the ambition to attract many customers. Today, a lot of coffee shops open independently but many prefer to open a franchise shop based on commitment terms.
Of course, this is one of the most costly options in terms of finance but it provides special reliability and high returns. In fact, a franchise client receives complete tools to work with and can count on support at any stage of the coffee shop opening/operation.
According to statistics, most of the existing famous coffeehouses are expanding through the franchise. Especially it concerns international companies which have already opened (and continue to open) their branches in many countries. Everyone knows Starbucks, which has more than 30,000 coffeehouses around the world and continues to grow slowly but steadily.
Many people are attracted by the opportunity to open a Starbucks franchise due to the popularity of the brand and high demand among fancy coffee fans, obsessed with certain drinks. But here’s the downside – Starbucks does not sell franchises, and it is impossible to open a coffee shop under such conditions. The company offers an opportunity to open a licensed shop, based on commitment terms, which is managed entirely by Starbucks. The shop owner rents the name “Starbucks” and pays a certain commission for it – this option is only possible in other countries.
Opening a coffee shop in the U.S. and Canada for individuals is not possible at all, due to company policy.
The most popular coffee houses, which are able to compete with Starbucks, are Dunn Brothers Coffee, Gloria Jean’s Coffee, Dunkin’ Donuts, and a few others. Many of them offer the opportunity to open a franchise coffee shop. Before deciding on the purchase, you should consider a lot of nuances, which may later have a huge impact on your income. At the stage of opening, a franchise shop requires maximum financial investment.
Now let’s consider the expenses needed to open a Dunkin’ Donuts franchise shop, taking into account the minimum and maximum indicators.
With the most modest investments, opening a Dunkin’ Donuts coffeehouse will cost approximately $96,000. The down payment, which allows you to work on behalf of the company, requires the most funds (at least $40,000).
Next comes a coffee shop premise (about $20,000 at minimum). In the “maximum” package, a premise will take the most money ($580,000). The rest of the money is spent on equipment, coffee-making technology, various opening expenses, and staff training.
The table above shows that opening a large-scale coffee-shop requires an impressive investment of more than $1,500,000 at the initial stage. Smaller coffee shops’ opening usually takes much less money but with no guarantees on profit. Given the growing demand for coffee, it’s difficult to imagine a coffee shop that will not bring any income to its owner. Even with the most disappointing forecasts, a good profit is secured, provided there’s a competent approach to building a coffee business.
It’s All About Coffee
No matter how important various coffee shop organization aspects are, coffee still remains the main one. Its quality and flavor characteristics are the very reasons people will (or will not) visit exactly your coffee shop.
You may think that most people do not really care what kind of coffee they drink, as most visitors do not understand it anyway and are unlikely to take flavor qualities seriously (unlike a small percentage of gourmets). However, no one needs bad coffee.
A reputable coffee shop should have different types of premium coffee, which will attract visitors with its aroma. It is best to have quality blends of Arabica and Robusta, provided by proven suppliers and manufacturers.
Coffee shelf-life plays a crucial role in its flavor, so do not neglect it. A lot of coffee junkies will detect bad “about-to-die” coffee literally from the first sip. It’s best to have both regular and elite, more expensive coffee types to create your loyal customer base that will know your coffee shop is the best in the neighborhood, city, country, world.
Milk coffee drinks, like a latte, cappuccino, frappuccino, and mocha, typically prevail among the most popular coffee drinks, with latte and cappuccino being the two most popular coffees in most countries of the world. Many coffee lovers prefer to drink milk coffee, which is softer and not so invigorating (but more long-lasting) compared to strong pure black coffee.
Classic milk coffee variants are sold effectively in any coffeehouses in many countries of the world. If you take into account the various non-standard variations of coffee drinks, e.g. macchiato, cold brew, Irish, hot chocolate, and other latte, frappuccino variations like Smoked Butterscotch Latte, Cinnamon Shortbread Latte, RAF, Pumpkin Spice Latte, Salted Caramel Mocha, Unicorn Frappuccino, etc., which are now offered in many coffeehouses around the world and attract visitors who are always looking for new flavors, without limiting themselves to traditional black coffee.
A coffee shop should have real experts who know almost everything about coffee and are able to provide customers with the necessary information. This contributes to the fact that more and more people are beginning to trust the coffee shop and go there regularly.
Based on research data, most coffee is consumed by people of creative professions, engineers, advertisers, and content creators. Most of them drink more than three cups a day, which is a very profitable statistics for coffee shop owners. Given the fact that the coffee culture is becoming even more widespread, we can predict that representatives of almost all occupations will start drinking coffee more and more on a daily basis.
Some people cannot control their craving for coffee and often exceed the set safe daily coffee intake of 3 standard 200 ml cups. Today, with an active lifestyle and heavy workload, people start drinking coffee more often, which, of course, has a positive impact on coffee businesses, benefiting from pervasive coffee consumption.
Coffee Market Value
Having figured out coffee shop peculiarities and its work, let’s focus on coffee supplies and statistics. Interestingly, about 53 countries in the world are engaged in coffee cultivation on an industrial scale. Coffee flavors depend on where the beans grow, as well as harvesting and storage conditions.
Brazil is one of the leading countries in coffee production but the most ardent consumers of coffee are northern European countries, which buy the most coffee and consume it in the most indiscreet doses.
- If we take each individual, inclined to drink coffee, it turns out that the Finns are the most fervent coffee junkies, consuming 10.35 kg of coffee per person annually.
- Residents of the Netherlands and Sweden almost keep up with these figures, consuming 9.58 kg and 9.40 kg per capita respectively.
- This is followed by Denmark, Norway, Austria, and Italy.
- The more “humble” coffee lovers are in Germany, where everyone drinks about 6.65 kg of coffee per year.
- In the United States the figure is equivalent to 4.43 kg.
- The fewest drinkers are in Canada and Romania – 3.06 and 2.51 kg, respectively.
These are rather average figures, which change slightly over time and continue to increase each year. This means that in the near future, coffee consumption and production will be significantly higher than the figures shown here.
Coffee delivery prices today vary and depend on the type, country, producer, supplier, and transporter. Recently, it has been reported that Brazilian coffee will cost less than $1 per pound. Many people are waiting for low prices, although in most cases, a pound of coffee is much more expensive if you take pure coffee beans.
In 2010, the pound coffee cost about $3, and in 2019, for the first time in history, the price is as low as $1. Generally, when it comes to green coffee beans, which still need to be processed, the price on the international market ranges from 1 to 6 dollars.
The procedure of roasting coffee is a key point in determining its quality and final flavors, so no one should save money. Moreover, another 5-6 dollars per pound of roasted coffee are added to the cost. Thus, 1 pound of processed roasted coffee will cost around 8-10 dollars.
Such prices are still quite rare on store shelves, instead, you will often run into $20 options (on average).
In general, this is the average price of coffee per pound, which can be found in the international market for most suppliers. Of course, the figures always shift in one direction or another.
Thus, according to expert calculations, the average cost of coffee in the USA in 2025 will be around 3.11 dollars per kg of Arabica. Robusta will have a price tag of about $1.91. Of course, these are approximate prices, which might go up much higher, although much here depends on production volumes and the demand.
At the end of 2019, the average cost of coffee in Germany per kg of raw Arabica was €2.81. If we take earlier years, there is a fairly clear downward trend in the price at the moment. However, in a few years, the price of coffee will inevitably “crawl” up. These days Italians buy shredded Arabica at a price of 20 to 27 euros per kilo. Thus, the price of coffee in Italy is 23 euros, which is slightly more expensive compared to other countries.
Italians are supporters of classic coffee and often drink espresso to cheer up in the morning or at noon. Despite the fact that Italy has a lot of coffee gourmets, it is inferior to many other European countries in terms of the amount of coffee consumed per capita.
For example, Canadians are not the most active coffee drinkers and do not consume coffee as often as Americans or Europeans. The average cost of coffee in Canada is about $5.01 per 300 grams, and it turns out that a kilo of retail-priced coffee in that country will cost just over $15.
It makes no sense to buy ground coffee for a coffee shop because it immediately loses a lot of its flavor properties before it gets into a coffee machine or any other appliance for coffee preparation. If you open a real coffee machine, coffee should be served, made on the spot, from whole coffee beans.
This approach is no less essential than any other aspect of a coffeehouse, where there is a desire to provide customers with the best experience. For purchases, it is worth looking for wholesale suppliers and negotiates with them at a favorable price, which will suit you in terms of quality-to-price-ratio.
The most successful coffee producers are Brazil, Colombia, Indonesia, and Vietnam. These countries grow record amounts of coffee beans, which then go to all over the world and get into cups of many coffee drinkers. Brazil is an absolute champion here, supplying the world market with around 2,600,000 tonnes of coffee beans. The choice of a reliable coffee supplier is the key to a successful coffee shop business.
At the opening stage, it is important to find a reliable coffee supplier who will supply you with high-quality, delicious coffee on favorable terms. Before contacting a particular supplier, it’s best to make a small purchase and try it out, test their coffee to see how good it is and if it’s suitable for your coffee shop. Bird Rock, George Howell, LA Mill, Sightglass are among the most famous coffee companies in the USA but there are many others, as well.
Opening your coffee shop today is a great idea because there is an increased demand for coffee products and classic drinks in the world.
Despite quite serious competition in the coffee shop market, each company has an opportunity to work productively in terms of finances. World coffee prices today show an impressive decline, which allows many sellers to buy coffee beans at the most affordable prices and gain serious incomes.
Coffee shops, as an important link between the producer and the consumer, create the most comfortable conditions for selling coffee to their customers, who have long been unable to imagine their life without coffee. The culture of coffee consumption continues to develop and enters the lives of more than half of the planet’s population.
Opening a coffee shop is quite expensive but it can bring a good income already after a year of work. Therefore, it’s important to visit meetups before opening a coffee shop to stay up-to-date. It’s a great opportunity to find useful contacts that will help you develop your roadmap properly.
Today, you can open a coffee shop of any size, starting with a small stand, ending with a chain of coffeehouses, which will satisfy clients with high-quality coffee anywhere in the world. Initially, it will be impossible to compete with old players like Starbucks, Dunkin’ Donuts, and others, however, there’s nothing impossible in the long run – you can always create a new coffee chain with fresh standards. Many people choose to open a franchise coffee shop, which has its advantages and disadvantages.
When establishing a coffeehouse, do not forget that coffee is its core. The quality of coffee beans and reliable suppliers of raw materials are a must for success.
It is much more profitable to use industrial equipment, which you can use to process, roast, and grind coffee yourself. The list of necessary equipment for a coffee house is not as big as it may seem.
Special attention should be paid to staff and baristas, who are also very important when it comes to ranking in the eyes of coffee connoisseurs. Coffee experts are pretty rare, so it makes sense to invest in your specialists and educate them according to the latest trends in the coffee culture.
Don’t forget about your coffee shop location. We are not going to talk about how important it is to locate a coffee shop in the right place, making it accessible to as many people as possible. Best locations are where people work or study, whose occupations, according to statistics, make them drink coffee as often as possible. Inside a coffee shop, everything should be thought out.
Workspace organization for baristas and other workers is of primary importance. Don’t forget about your visitors as well, think about what will attract them and make them come back to you again.
Performance management and monitoring the work of your staff, baristas in particular, allows you to save on food consumption, electricity, and in some other aspects. Discipline is highly important to minimize costs while not saving on coffee and customer service.
The menu is one detail that will make your coffee shop stand out among others, help you attract more customers who are no longer interested in standard black or milk coffee drinks.
It makes sense to expand your menu with various coffee drinks, including vegetable milk coffees. Surprise people with unique offers because there are many different coffee shops out there, and you need to stand out. Offer products and/or services that are not available anywhere else, make even popular or similar offers, which your rivals have, look unique. Considering a variety of snacks, cakes, sandwiches, coffee with organic milks, and other foods will also contribute to creating a unique coffee shop that can rightfully claim to be recognized by coffee gourmets.
Don’t forget about traction. Control is the key to the success of any business. If you see yours clearly going in the wrong direction, you might want to develop a turnaround strategy – sometimes, even minor changes can become decisive.
Coffee business is unpredictable, thus, be prepared for categorical changes in your strategies.
Starbucks is the most successful project that sells millions of cups of coffee every day. Moreover, you can buy premium coffee types from its chain stores. In the U.S., Starbucks sells more than 10% of all ground coffee. The total number of Starbucks coffee shops worldwide exceeds 30,000.
Dunkin’ Donuts has also gained popularity among Americans.
McCafe shows impressive results in terms of worldwide sales and deserves special attention. On the international market, a very large percentage of coffee drinkers prefer coffee at McDonald’s.
If we take the percentage of people who drink coffee in the U.S., according to statistics, it will be 64%. It turns out that much more than half of the people, who have already turned 18, drink coffee every day. It is worth noting that in most cases, the number of daily cups is, and even exceeds, 3 cups a day. If we take Russia in comparison, there is no such trend at all, that’s where people are more inclined to drink tea than coffee. About 70% of Russians drink tea and only 30% prefer coffee.
World statistics show fewer data. Today, according to statistics, about 30-40% of the population drink a cup of coffee per day. Chances are that soon about half of the world’s population will drink coffee daily. The world coffee production is also growing and, therefore, we can assume that the statistics will increase significantly in the near future.
According to numerous studies, the organic coffee market, increased by 11% in the last 5 years, is currently experiencing significant growth. In its turn, there’s a 9% decline in the instant coffee market. Many coffee suppliers are gaining in production, despite the fact that raw material prices tend to decrease. According to experts, the price of coffee will go up again in the following years, taking into account the cost of producing quality coffee varieties and increasing demand from end consumers.
Cooperation with roasting companies and other producers, who can deliver coffee to coffeehouses on favorable terms under agreements, allows reducing the price of coffee. In some cases, it is beneficial to establish the process of roasting and grinding coffee directly in a coffee shop, although it’s not always convenient.
According to global statistics, the existing coffee giants today take about 70% of all profits in the coffee industry. Competing with coffee chains makes no sense but working for the future is always worth it, given the increased demand for quality coffee and unique coffee flavors. Gross chain profits reach 85%, but with small coffeehouses, the statistics are less comforting. Small coffeehouse profits are often about 2.5% in the initial stages. According to statistics, most coffee businesses have closed due to small profits at the initial stage. However, coffeehouses that withstand the initial stage, have a better chance to become profitable.
Talking about an average coffee shop, the first two-month profits can be negative, however, about 1500-2500 dollars can be earned in already half a year. And in a year of hard work, the coffee house can make more than 10,000 dollars of profit.
The culture of coffee making and consumption today has its own trends, which determine the development of the industry and perception of coffee in the world in general. Many of these trends help support the demand for coffee drinks and develop the business. Eco-friendliness is at the top in the trend list of today. Most coffee producers and sellers begin to emphasize the fact that their coffee is the cleanest, safest, most natural, and “greenest.” The eco-friendliness of coffee is confirmed in the growing and harvesting phase, where waste and environmental damage is minimized. As for coffeehouses, they begin to refuse plastic and other harmful materials when it comes to cups and other accessories. This trend is mirrored by a desire for everything natural. Natural ingredients in coffee drinks are an excellent marketing proposition that is gaining worldwide popularity. Many brands begin to make various coffee ingredients, including syrups, milk, and other supplements, independently. Many desserts and snacks are also 100% organic.
In some countries, there is a tendency to open branches of coffee chains or coffee shops in regions that are inferior to large cities in terms of population. This has contributed to the ubiquitous coffee distribution and increased incomes for coffee chain owners.
The digitalization trend, which is becoming more prevalent and facilitating new interactions with loyal customers and visitors, has not been ignored by coffee shops, as well. Many coffee shops are forced to explore new approaches to work, given the rapid development of digital technologies.
Coffee shops selling takeaway coffees are getting serious development in big cities. This popular service, which has existed for a long time, is increasingly in high demand because the pace of life in big cities continues to accelerate, and many people prefer to stop by a coffee shop to take coffee on-the-go and drink it at work or in the office, rather than sit in a coffee shop.
There is also a special trend towards automated productive technologies, which allow us to simplify and automate the process of coffee making as much as possible. Today, many coffeehouses have machines and appliances that can measure the required amount of espresso with minimal error. Dosers of coffee, milk, and water are getting popular too and help make each cup as equal as possible, in terms of brewing standards. This automated approach will help to devalue the barista’s work to some extent but, in general, it will only improve the quality of coffee drinks and take coffee-making methods to a new level.