Coffee Shop Location Advice Needed

espressimon

New member
Jul 20, 2015
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Hi everyone,

I am planning on starting a specialty coffee house in Mexico. I have been searching for suitable location for my cafe and I came across three potential locations.
As this is the very first coffee shop that I am opening, I would very much appreciate any advice you have for me on the suitability of the following locations based on my description.

Location 1: high traffic plaza that houses Subway, pizza place, salad bar, nail salon, hot dog place and a mid-high end restaurant.
This location has about 60 parking spots and it was full both times I visited during the daytime. The plaza is next to a high traffic main street and there are some offices as well as two hotels nearby. There are no coffee shops in the vicinity. Space= 70 square metres

Location 2: In the middle of a university campus with 7 eleven and a walk in clinic next doors. Only minutes walk from university residences. There are a couple Starbucks locations nearby - one in the campus building and another about 10 minutes away. One problem I see with the location is that there are many students and foot traffic during school year but that seems to drop off significantly during summer and winter breaks. Space = 50 square metres

Location 3: A richer neighborhood with people who have higher disposable income. Not as much foot traffic but there is still a good car traffic. There are some small coffee shops in the vicinity but nothing in my opinion that threatens our survival. The main advantage here is that everyone who comes to this area can afford to buy and drink coffee. Since this is Mexico, I am not so certain if this holds true for students. Our products will be priced slightly cheaper than Starbucks. Space = 50 metres

Please consider the locations and feel free to leave any comments / thoughts. Btw the rent for three places are more or less similar. Thanks in advance for all your help. :)
 

Mr.Peaberry

Member
Aug 7, 2013
890
2
Location 1, Location 1, Location 1.

Location 2 problem(s): Seasonal traffic, and overserved consumer base...two Starbucks & 7/11.

Location 3 problem: Not much foot traffic.

You are better off with location 1 even if slightly higher rent. Without the foot traffic, you would have to spend more advertising and promoting the business. I don't think the decision is even close. What city by the way?
 
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espressimon

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Thank you Mr.Peaberry for your reply.
I am in a city called Monterrey. :)
 
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espressimon

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I forgot to mention. One potential problem with location 1 might be the fact that there is not a high traffic in the morning and during the weekend (according to the owners of other stores) as it is not a big residential area.
 

Mr.Peaberry

Member
Aug 7, 2013
890
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I forgot to mention. One potential problem with location 1 might be the fact that there is not a high traffic in the morning and during the weekend (according to the owners of other stores) as it is not a big residential area.

Monterrey is a great city from what I know from a cousin who lived there just after she got married. Her husband is from Mexico City, but his first job after graduate school was with Pepsico's Mexico subsidiary.

Regarding location 1...foot traffic in the morning is not important if it is a business area...your customer is arriving for work, not to shop. This customer is a good customer, and could represent your base of business. Since the parking spaces will be typically empty in the morning, it would be convenient for them to stop and purchase their coffee on the way into work. This sounds like the only downside would be the lack of customers on the weekend, which could allow you to explore some opportunities with off site events or a farmer's market, etc., which would also help promote your store location in the community. Not sure if this helps at all.
 
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espressimon

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Monterrey is a great city from what I know from a cousin who lived there just after she got married. Her husband is from Mexico City, but his first job after graduate school was with Pepsico's Mexico subsidiary.

Regarding location 1...foot traffic in the morning is not important if it is a business area...your customer is arriving for work, not to shop. This customer is a good customer, and could represent your base of business. Since the parking spaces will be typically empty in the morning, it would be convenient for them to stop and purchase their coffee on the way into work. This sounds like the only downside would be the lack of customers on the weekend, which could allow you to explore some opportunities with off site events or a farmer's market, etc., which would also help promote your store location in the community. Not sure if this helps at all.


Thank you Mr.Peaberry for your insights and suggestions for site events :)
 

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