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- 06-24-2011, 01:04 AM #1
I am thinking about opening a coffee shop.
Hi to all,
I am thinking to open a coffee shop,
How much the store cost with average decoration?
How much is the average sales?
what are the margins?
how much money can make in an average store and area?
Thank you in advance.
- 06-24-2011, 03:44 AM #2
Because my birthday is in 53 minutes, I've been on cloud 9 since Wednesday, and I'm on PTO
I will search these forums and the internet for you.
In the future you can get all of your research and consumer study reports at one place
Specialty Coffee Association of America for a small fee
How much the store cost with average decoration?
If you are going with high end art it gets very expensive again it depends
Usually the decoration costs are included in the build out costs.
google "build out costs" or "build out costs per sf"
How much is the average sales (transaction)? Again depends on your menu, location, hours, and price points.
I have seen people post between $3.50-$5.00. The last store I worked at consistently averaged $4.5X
How much does it cost to open a coffee business?
- Coffee Cart: Average cost is between $20,000-$25,000.
- Kiosk: Depending on the size and your menu, average costs are between $25,000-$75,000.
- Drive-Thru: We have heard of entrepreneurs who have opened very small units for less than $35,000. A large drive-thru can cost between $80,000-$200,000.
- Sit-Down: Average cost of a 1,200 sq. ft. coffee bar is between $200,000 to $375,000.
Opening a Coffee Shop
Again it depends on equipment, deals, how many favors you can call in, construction skills and so forth. There are posts around here about people opening shops on $40k. Then there are people like me that can blow through $40k building a mobile coffee truck... Take my advice with several grains of salt.
What are margins? Obviously it depends on a lot of variables see great illustration below
"We're small. In fact, we are the smallest successful shop in the US. So much of what we do doesn't translate to the typical shop, however, it shows that it can be done on any scale.
Let's assume monthly revenue is $1.00
An average monthly expense for us would be:
.15 espresso/coffee/tea (Cost of green, and all other associated COGS)
.08 Business Loan Payment
.07 Utilities+phone,internet, and cell.
.05 Insurance (health & property)
.05 Owner's Draw
.03 Business Travel
.02 Company Car Expenses
Of course month to month this varies and how cash flow figures out in the picture is important as well. We also do upgrades and improvements each year, which may fall somewhere in misc.
Many will say rent is high, (Most would say to stay around 7-10%) and it is if other expenses are as high as your typical shop... but efficiency in store design, electrical, hours of operation, and product sourcing makes "rent" just another expense. At the end of the day, you have to look at your total revenue and your total expenses. If one is high enough and the other is low enough, that's a good thing."
Great post by John P
Coffee Shop costs breakdown
spread sheet for calculating cost of good sold. What is left will be CM
Coffee COGS Calculator | Mobile Adventure
how much money can make in an average store and area? it depends - some shops even manage to lose money
www.wrbc2008.com/_pdfs/SpecialtyCoffee_RetailFacts.pdf wasn't able to copy link successfully
In theory, take net average sales multiply by contribution margin - expenses and get $$$$ Money
Best of luck on your thoughts.
- 06-27-2011, 03:00 AM #3
hii do you need coffee bean? i can supply you with java arabica and robusta from indonesia
i also have civet or luwak coffee bean,. mandhaeling and toraja
let me know if you are interested
- 06-28-2011, 02:05 PM #4
Hi, i based in england .i want to open a coffee shop with art gallery. Is there someone who would like to join me as a patner. If interested pls contact on 0044 7714596035..shreekala
- 07-25-2011, 07:11 AM #5
- 07-31-2011, 09:11 PM #6
Nice idea shared about opening a coffee shop,.
I thinks its best to open in place where competition is less,.
- 08-01-2011, 02:22 AM #7
There is definitely a point to the challenges of entering a over saturated market. That said, location is everything why would steer away from a key location just because there is competition there?
- 08-03-2011, 11:52 AM #8
- 08-10-2011, 09:58 AM #9
My 2 cents...I like the Italian style of stand up bars for a quick esspresso. 90 cents Euro for a shot. Wish more places in the USA were like that.
- 08-13-2011, 10:40 AM #10
I have owned a coffee shop in Toronto, Canada for 5 years. Was under 40,000 to open doors. Be creative and cut budget when ever possible.
Most important rule in build out, get what you need done first. Like comes later. Spend the money on the things that help you make coffee such as
good water, sinks and fridges are key. Good machines and grinders are key to making money.
Feng shui understanding is key to set up, understanding the floor plan layout, traffic flow is key to design.
I have designed and built out 9 coffee shops for people.
If you would like some experienced information/help hit me up. I am more than willing to help with some suggestions.
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