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  1. #1
    Junior Member
    Join Date
    Jun 2010
    Posts
    5

    Customer Loyalty or Location, location, location

    Hi there!
    I'm in the processing of building a biz plan for a new shop. Since I currently work in another customer service business where I know most of my customers by name, I have the unique opportunity to tap that customer base, migrating them into my new coffee shop. (no worries 2 totally different services businesses, so I'm not stealing anyone's business).

    My question...

    What is more important for a coffee shop 1) starting with a customer base that knows you (i.e. not being the nameless faceless newbie) or 2) being in the "ideal" space with high foot traffic/street exposure?

    My dilemma is do I open in the neighborhood that knows me, in a semi-good space- or do I choose the "best" location anywhere in the city and start with a completely unknown customer base?

    Any advice is appreciated and there will be more threads to come as I iron out breakeven, sales forecasts, technicalities etc..

    Jen

  2. #2
    Senior Member
    Join Date
    Jan 2007
    Location
    Salt Lake City
    Posts
    1,045

    Re: Customer Loyalty or Location, location, location

    Choose the best location.
    John Piquet
    caffe d'bolla
    Salt Lake City, UT
    caffedbolla.com

  3. #3
    Senior Member
    Join Date
    Aug 2005
    Location
    Central North Carolina
    Posts
    1,557

    Re: Customer Loyalty or Location, location, location

    Building a customer base is key and this can put you well on your way to breaking even daily. But to really start profiting I feel like you have to be in a high traffic area. Your loyal customers will usually seek you out as long as you're not too far out of their way. Later!
    I'm a legend among my own kind... you my friend are just a legend in your own mind. Later!

  4. #4
    Senior Member
    Join Date
    Jan 2007
    Location
    Salt Lake City
    Posts
    1,045

    Re: Customer Loyalty or Location, location, location

    "Best Location" and "High(est) traffic area" are not necessarily the same thing.

    Often times people will look at numbers of potential people, cars, etc, rather than number of coffee drinkers. Know the area and the general habits of the populace and choose your site accordingly.

    Good Luck!
    John Piquet
    caffe d'bolla
    Salt Lake City, UT
    caffedbolla.com

  5. #5
    Junior Member
    Join Date
    Aug 2010
    Posts
    4

    Re: Customer Loyalty or Location, location, location

    Having done this for a number of years now, I would always choose the location with the best WALKING traffic, in the right demographic--business people, college students, tourists, etc. . .

    It is rare that one will pay too much for a very good location, but it is easy to pay too much for a poor one.

    Remember, one can always fix problems IN the shop: equipment, coffee roasts, employees, pricing, menu, etc . . . The only thing that can NOT be fixed is a poor location.

    Aloha,

    Mark
    Hanalei, Hawaii

  6. #6
    Senior Member
    Join Date
    Aug 2008
    Location
    Kentucky
    Posts
    113

    Re: Customer Loyalty or Location, location, location

    Quote Originally Posted by Hanalei
    Remember, one can always fix problems IN the shop: equipment, coffee roasts, employees, pricing, menu, etc . . . The only thing that can NOT be fixed is a poor location.
    Well Said!!!
    lachris

  7. #7
    Senior Member
    Join Date
    Jul 2008
    Location
    St Augustine Fl
    Posts
    157

    Re: Customer Loyalty or Location, location, location

    Regardless, have lots of money.
    "the great coffee caper...."

 

 

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