Coffee Shop Start-up costs

[RemyLee1981]

Hell, I have recently hired an accountant to help me with a strong business plan, so he asked me to look around and come up with prices for equipment, after doing my research i came up with a figure of about 15,000 dollars towards equipment, my question is when it comes to brewers would i be smart to invest in one or two? i am planning on offering 1 medium house roast, 1 medium dark roast, and 2 flavoured coffees alternating daily.... so if i am brewing flavored coffee shouldnt i have a seperate brewer for this?

I want to add specialty coffees to my menu as well, Espresso type drinks such as Espresso of course, Cappuccino,Lattes, Mochas etc... so should i have one group, 2 group or 4 group espresso machines (i am thinking 2 group?)

Then i want to add Teas and Hot Chocolate to my menu as well along with baked goods, and originally i was planning on just baked goods, but this accountant suggested that if i want to survive i should add sandwhiches and soups etc... to my menu.

Anyways 15k should cover all equipment including a Fridge,Freezer (Residential grade) and a Residential Grade stove and oven.

 

[slurp]

Your looking at $150k - $250k plan $60k for equipment. Welcome to the board.

 

[RemyLee1981]

How come so much, when i looked at catalouges and found 15k to be sufficient ? and thanks for welcoming me.

 

[slurp]

A good two group espresso machine such as a Synesso or Slayer is around $18 alone. Add a few Mazzer grinders for $2500 each, two fridges $300 each, Ice maker $2000.

Now that is all the Hubba Bubba equipment, you can use a $3500 espresso machine and it will work, it can be done for less but most high end shops have high end machines for consent ant product.

I was involved in building two shops in the last year. One build out in a busy shopping center was $500k complete with construction and all equipment, 1200 square feet. The second was a complete interior build out that cost $175k not including the espresso machines, 2500 square feet. These are numbers in South Florida it could be less other non urban areas. These projects included build to, permitting, and decor.

Keep in mind what ever you budget double it, around ever corner there is something to pay for. Most new business fail for lack of financial backing. Additionally what ever you think your build out time is double it, things take time and unanticipated items will hold you up such as permitting.

This is just my $0.02 and I offer this information to help you be successful. Please research the information here as it is good to be prepared.

 

[RemyLee1981]

so its safe to say that i should seek half a million from the bank, no bank on earth will give me that much lol

 

[RemyLee1981]

also from the math i did, if it cost 70 dollars per 5 lb's of beans, with 1 lb yeilding about 3 gallons of liquid coffee, that 5lb of coffee before any extras such as the costs of cream, sugar, cups etc... should bring in 562.50 am i correct? isnt the profit margin on that tremendous?

 

[peterjschmidt]

How do 3 gallons of coffee generate $562 in revenue?

 

[PinkRose]

How do 3 gallons of coffee generate $562 in revenue?

I'm still wondering about the $70 for 5 pounds of beans?

 

[smksignals]

I'm still wondering about the $70 for 5 pounds of beans?

CDN vs USD?

 

[miguel_ang16]

well i think it depends on how may seater you have in your shop… and consider the fact that some people just don't seat and sip a cup of coffee but some of em are "take aways" buyers… so i suggest a descent two group heads are good enough. also regarding the budget, you have to think that there are other misc fees to consider. example the contract and engineering, supplies, the possible future problems such as malfunction of equipments and all…

 

[chast]

here is my nickels worth! You do not need an 18K espresso machine to start with! Not even 10K. If you Buy a Fetco Brewer such as a 2042E Twin Brewer is roughly 2K , Mahlkonig Grinder average 2K Start off with a single group espresso machine, 2500.00 ( lots of places use a single group and it works out well). That is 8500.00 for the main ingredients. Hot water dispenser to start with I would go with a Tiger. Small but for 150.00 each get 2 of them. A Curtis Hot water boiler is about 1600.00, same with a Fetco. Good filtering system lets say 500.00 ( does not include someones labor). The counters to be built or purchased used could be pricey unless you are talented with a saw. Tables & Chairs? plenty of good used from closed shops. 15K-20K will get you open as far as equipment is concerned and some stock. As you grow and make money, upgrade if need be. I've done it and I know a lot of other small shops that started out on a thread and have grown and expanded in 3 years. If you sell 100 cups of coffee at an average price of 2.50 daily that is only 250.00 per day x 30 days ( if open 7 days a week ) = 7500.00 per month. Would this cover all of your overhead? and if the next month you only sold half that amount could you still hang on? Do not buy used brewers,grinders or espresso machines!!
Good Luck

 

[slurp]

You do not need an 18K espresso machine to start with! Not even 10K.

Correct they can buy $2.00 per pound espresso beans too. It all depends on what type of customers one would like to have. Some stores make a fortune is using $2.00 per pound beans because they are the only drive thru in the area.

 

[chast]

That's my point! No need to spend 18 or 25K for an espresso machine unless you have the customers to support it. I was going to purchase a 2 group Slayer customized that would have stood me over 20K, for what? Just a conversation piece. My location is an occasional espresso if I had a huge customer espresso customer base I would write the check in a second. The 2.00 per lb comparison does not reflect the price difference of a good espresso machine. My main point was you do not need that pricey of a machine to start out with to get up and running! How many espressos do you sell per day per week per month to justify 18K? There is a espresso freak in Southern Florida who purchased a 2 group Mirage from Kees for his house!! Just for the weekend espresso kick!

 

[slurp]

After owning a $3500 espresso machine and now owning a Synesso Hydra there is a big difference in the machines. In fact the main thing is repetitive quality. The Synesso will not stop pulling the same shot as fast as a barista can run it.

Also any business needs a market other wise it will fail. No customers for high end espresso means closed doors. If your selling coffee to a bunch of farmers that want $1 a cup then there is no need for a for a high end espresso machine.

This is thread was about coffee shop equipment and the related supplies. Most new coffee shops offer high end espresso.

For or the record Slayer and their service sucks, in fact they are a knock off of Synesso. No one has Kees that knows coffee not a good machine. Top three espresso machines are Slayer, Synesso and LA MARZOCCO. Two of the three are Synesso knock offs. I did write the check and have the Synesso Hydra.

 

[chast]

hahaha! you must have as much free time today as I do! actually just taking a break from the build out and spending money!! wish I had all of yours. Proved my point though, you started off with a 3500.00 machine and when you got comfortable with staying in the business you wanted the best and upgraded! I was also interested in the Synesso and in my opinion they out rank all others mentioned. The Slayer has no UL or CE approvals and when I spoke with them last year they said they could not afford to do that, but then brag how many they sell. Everyone in the business knows both Kees and Slayers are knockoffs with their own twist. My new shop is suppose to open shortly after Labor Day and I have inquired around and nobody is really interested in espresso, only a few are. They want a serious cup of coffee which I can offer. So until I get a demand my little Alex Duetto 2 will make the lattes. Wake up Topher and get him into this thread!!