The Coffee Retail Business: A Bird’s Eye View

What are the basics for a coffee retail business? What is the success ratio of putting up such a business?

The coffee retail business is one of the fastest-growing retail businesses in the world today. The biggest factor for such a phenomenon could be attributed to the current fascination of people, mostly the young, for coffee and coffee products.

The success factor might have been helped by the success of the major players (Starbucks, Seattle’s Best, etc.) who helped develop the market and educating the consumers along the way. They also provided their own business models for the coffee retail business.

This short article does not pretend to be a comprehensive manual for setting up a successful coffee retail shop. This is rather more like a general introduction, some quick do’s and don’ts of the business, and how it looks from the outside.

Knowing the business

One must be prepared first by knowing what the business is all about. One needs to consult all of the books, manuals and other materials available on the how-to’s of the business before anything else.

The money aspect

You have to know how much money you need to start up your business, how much money you have, and how much money you need to run it. What you have will determine what you can do.

Business plan

Your planned coffee shop is your business card when you talk to potential lenders or investors. Your plan will demonstrate how you see your business on paper. Make it the best it can be.

Your business site

Finding the right location is critical to your shop’s success. Research has it that while people love coffee, they will rarely go more than a block or two for it.

Your location should be at the center of the action, have high visibility and a high number of people passing by daily. Coffee is an impulse buy and a luxury product. People are not likely to go too far out of their way to find you.

Important note: If you have no retail experience, hire a professional.

People from City Hall

You have to understand that getting an official approval of your business dealing with bureaucracy and red tape can be a highway to hell. Things will settle down in the end, but you have to be prepared for the worst.

State and local codes and laws are confusing at times but you need to navigate your way. It is important to work closely with your local, county and state officials in everything you do.

The shop

In coffee shop operations, service and customer flow are very important considerations in the design of your shop. Even if you are working with an architect, consult a coffee store professional.

Your architect may not be familiar with the operational needs of a food service establishment such as your shop; equipment layout and placements, work and customer flows, heavy traffic areas, etc.

Equipment

After the menu and the bar design are finalized, it is time to select and buy your equipment. Make a checklist and compare prices and features. Take your time as you decide on your choices with great focus on quality and reliability.

Hiring and training employees

Finding good employees is extremely hard. Training them is the most important part of your function as owner. Emphasize their being your teammate in the success of your operation.

Training should also be ongoing. Your employee’s skills are critical because what they produce is your shop’s main product. Always insist on perfection. Your customers will be glad.

Marketing

Market your shop as soon as possible, even starting while construction is going on.

If operations are now in place, the marketing should not stop. It should be renewed each time. You and your employees are front-line marketers of your shop.

With luck and an eye always open for improving things, your coffee retail business might join the other thousand successful ones around the world.

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