Questions on starting a Coffee Shop

[Kais01]

Hello,

I am soliciting advice on the do's and don't(s) of operating a coffee shop. I am am taking over a supposed coffee shop that didn't last two months because of bad ownership. However they didn't offer much. It was more of a glorified convenience store. Anyhow I have had an insurance business for 9 years so I know how to run a business but retail is new to me. I wanted to open a coffee before I started my agency but was in a bad market. The city I am I have been in for the last 6 years is suburb of a major metro area and does not have a coffee shop. My location is good. Things I need help with figuring out are

1. Coffee distributors?
2. Coffee equipment. Should I use a pod espresso machine or beans?
3. Pastry Distributors?
4. 3 sink work around options?
5. Retail items that sell?
6. Good books to read on this subject?
7. Good websites to buy stuff?
8. Most common mistakes?

 

[sidg]

You can search the forums here and get a lot of good advice that has already been shared.
From the sounds of it though you are getting started from the ground floor in the coffee / cafe world and I would suggest that you might need some close, in person guidance to walk you through this. My suggestion would be to find a roaster and or an equipment dealer that can help you not just get set up but in the on going stuff that you are going to face in the running of a coffee shop. If you tell us where you are located I'm sure there are many folks here who could recommend local or area roasters / dealers.

 

[Kais01]

Thx! I am located in the Birmingham, AL Retro area. I have spoken with "Red Diamond". I know there are a few roasters around here. I am not sure if it is cost effective to go with them or the larger companies like Red Diamond and/or Royal Cup.

 

[CoffeeJunky]

There are several things you should do before even starting your own coffee shop.

You should go to the coffee training school for Baristas.
And also read few books and you can find those on our forum.
Find out what the difference on your beans.
I do not think you have to serve the best coffee in the world for your customers to appreciate your coffee. You just need to be better then the guy next door or Starbucks.

If you do not have any equipment, you should get advise from your coffee distributor. They should have some type of program for that purpose.
Ask them about the location as well. They do this for living and they are great at giving you advise.

Good Luck

 

[Kais01]

Thx, I went to a few local roasters and they were sooo helpful but neither provide equipment as they are small. I don't want to go the commerical giants because I want a better produced coffee. So I am having an issue with equipment. I don't want cheap because my product will taste cheap. Do you know anything about the leasing companies? Any suggestions?

 

[CoffeeJunky]

Kais. what size roaster are you looking to get?

 

[John P]

I have to ask, "Why coffee?" It is clear you have no experience, passion, or understanding about the business. You are minimum 1 year away from opening. The fact you think that running an insurance business is any approximation of how to successfully operate or manage a coffee business -- which mind you, is not retail, but restaurant, is very telling.

1. Coffee distributors? Find a reputable, quality driven local or regional roaster.

2. Coffee equipment. Should I use a pod espresso machine or beans? Fresh, properly roasted beans. The fact that you asked is scary.

3. Pastry Distributors? Really? Make your own, or find a local bakery.

4. 3 sink work around options? There are none. 3 comp. sink is a requirement by all Health Depts. You can ALSO have an auto, but you still need a 3 compartment sink in case the dishwasher is out of service. It's just dishes...wash 'em!

5. Retail items that sell. Something you shouldn't worry about. Learn about coffee first.

6. Good books to read on this subject? Take classes. Go to a minimum of 2 trade shows in the next year. Travel! Visit established shops in your area, or in various parts of the US and abroad, AND read... everything you can get your hands on.

7. Good websites to buy stuff? There's a lot out there. Google is your friend!

8. Most common mistakes? Not having coffee expertise before opening. Rushing to open. Romance vs. Reality. Undercapitalization. Poor location...etc.

I absolutely hate to see people get in over their head and drown, but your post touches all the key points.
Wake up! Be patient! You are not anywhere near even thinking about opening.

 

[Kais01]

Thank you Mr. John P for you advice. I was not aware that you could read so much into my life via a paragraph or two. Nor did I realize that I had to disclose all of my business in order to get an answer to a few questions. However I will answer your question since I didn't appreciate your response.

I have to ask, "Why coffee?" It is clear you have no experience, passion, or understanding about the business.

How you would conclude that via what you read I have no idea. However if you read my original post you would have read that this was something I attempted 10 years ago. After completing a 28 page business plan (which most shop owners don't do) I didn't have the capitol to start it so I choose to open an insurance agency to build a residual income in order to fund my shop and not have to depend on the income. Secondly, when I was in the process of forming my business plan I traveled to Hondorous and Mexico to visit several coffee farms and worked with the co-ops on bean importing practices for USAID. During that time I "cupped" some of the best coffee in the world. I wonder how many coffee shop owners you know that have been to coffee farms in countries they import coffee from. I would guess not many. During my college years I worked for "Joe Muggs" as a Barista and my daughter has been one for a 1 1/2.

You are minimum 1 year away from opening. (you couldn't have read. I am a month away from opening)

The fact you think that running an insurance business is any approximation of how to successfully operate or manage a coffee business -- which mind you, is not retail, but restaurant, is very telling.

(quite rude) Telling what??? That I had a plan? The insurance industry is one of THE most competitive in the world and I am a top agency. Unless you have owned an SUCCESSFUL insurance agency surely you are not qualified to make that assumption. If I can thrive in this hard economy with the amount of competition out there "tells me" that I know how to run a business. Which by the way is why MOST retail business fail!! Knowing the product is important but running the business is just as important. However it has been 10 years since I planned to open my shop and A LOT has changed such as the introduction to "pods, k-cups and etc". There are better machines now then there were. I also live in a completely different city than I did then.

I absolutely hate to see people get in over their head and drown, but your post touches all the key points.
Wake up! Be patient! You are not anywhere near even thinking about opening.

AND I hate people that rush to judgement. Possibly you could have asked more questions to gain more information as to what my story was before you commented. This is the land of opportunity and SUCCESSFUL BUSINESS OWNERS ARE MADE NOT BORN; therefore we all start with a dream and have a right to question in order to learn.

With that said can someone answer the question for me that is positive?

 

[icetzou]

I feel you, when I first started my cafe 3 years ago, I also had no experience. I didn't even work at any coffee shops during high school. So I learned little by little and grew to 3 locations today. So experience and know-how is not necessary the most important factors I feel.

Anyhow, we are not too heavy on coffee (more on boba), but I can try to help you with the rest of the questions.

4. John's right on that one, there's no way around it. You'll also need a mop sink, hand washing sink, and a food prep sink.

5. This one you'll have to consider your audience. But one insight I can share is that coffee's are not items with high transaction amount, meaning each cup can't sell of that much, even if you had great margins, you'll still need high quantity to make money. So if you are going retail, consider items that have high profit margins, even if you sell only a few a month.

8. Mistakes are unavoidable, but most commons ones are the ones that are not fixed. Customers are more than happy to give you feedback, so ask them before they go to yelp with it. Everything what John said can be fixed, you'll just have to listen and act.

 

[Kais01]

Thanks Icetzou!! What type of retail do you sell? I have crunched my numbers and I see that retail will be a little cushion. I am located in a suburb that is considered one of the fastest growing in the Birmingham metro and I am the only coffee shop I have been active in city government and my agency has been very visible so I think I can pull enough volume. I am talking with a roaster regarding creating a special blend and bagging it to sell for me, I have a lady who makes organic soaps with coffee and teas, and I am looking for a person who makes coffee scented candles to start. Do you all have any other suggestions?

 

[icetzou]

We retail tobacco. But those items you just mentioned sounds great. I actually do have a friend that makes high-end soy candles. I can connect you to him if you want, but we are all the way in LA.

 

[CoffeeJunky]

Thank you Mr. John P for you advice. I was not aware that you could read so much into my life via a paragraph or two. Nor did I realize that I had to disclose all of my business in order to get an answer to a few questions. However I will answer your question since I didn't appreciate your response.



AND I hate people that rush to judgement. Possibly you could have asked more questions to gain more information as to what my story was before you commented. This is the land of opportunity and SUCCESSFUL BUSINESS OWNERS ARE MADE NOT BORN; therefore we all start with a dream and have a right to question in order to learn.

With that said can someone answer the question for me that is positive? [/QUOTE

Let me explain something to you in nice way.. I am sure you are expert in insurance business since you have done this for awhile. And John is expert in coffee business. And many of us are too in that matter. Many people get into coffee business thinking this is easy business but its exactly opposite of that. You said you have "cupped" few good coffee but there are many coffee shop owners have cupped over 150 different types of beans. We have roasted over 40 different kinds of beans. Some of us travel many different countries to see the farm and taste the beans because love of coffee not because we want to open the business. The questions you have asked at the beginning make us wonder where you are at with your dream of opening your own coffee shop. You can search this forum and see what others have asked in the past. You are right, no body was born to be a successful business owner. But you need to know at least basic of the business to open and be able to understand difficult of the business. Your questions tells us you are not quite there yet. You need to decide many things like Espresso machines, size of the property. Type of food you are going to serve. Type of the coffee you are going to carry. Size of the operation. and etc.... You don't have to go to Barista school but you will need to learn fast. You don't really need to know about different types of coffee beans but you should have some idea what they are. You don't need to be a expert on coffee roasting but you should be able to tell what the differences are between light to dark roast. John never said you can't open a coffee shop. And anybody can open a coffee shop but opening a successful coffee shop can be very difficult. We just don't want you to make mistake of owning something that would burn all your life savings.

 

[Kais01]

Thank you. I completely understand. Actually I already have most of that determined. Your right people are should be experts at that what they do. But just like insurance we all have to start somewhere. The shop was given to me. I'm not going to pass up an opportunity because I was not planning for it to happen now. The fact is that I did plan to open a shop at some point so I do have a lot more information and knowledge of coffee then I guess I alluded to in my first post. I came to this forum to get information so that I can become an expert in coffee because that is my desire. However I feel offended because I have been to defending my position since I joined. Perhaps I should just read everything and not ask any questions because based on the feedback I am getting I must prove myself first worthy. I have talked to numerous people that have several successful shops that new nothing about coffee before they started. I appreciate you for taking the time to respond.

Sent from my SGH-T999 using Tapatalk now Free

 

[eldub]

Maybe you need to get thicker skin, to begin with. John was imparting knowledge. imo, but his answers rubbed you wrong. You should be thankful he even took the time to respond, imo. I see wisdom in his answers even if you don't.

Btw, some of us take this business very seriously and would never consider using a pod machine for espresso applications. (Or any for that matter.) If you are still asking that type of question, you have a ways to go, imo. Keep plugging along and learning what you need to know and you might not only open a coffee shop but also actually be successful at the venture.

 

[PinkRose]

Hello Kais01,

We all hate to see it when people open coffee shops and get in over their heads and quickly drown. Those of us who have been around the Coffee Forum for a long time have seen it happen countless times. We have witnessed the dreaming, the planning, the opening, the struggle, and the shutting of the doors. The hardest part for me is seeing the posts as people try to sell their equipment when it's all over.

The advice you get from members of this Forum is usually both kind and realistic. Sometimes when a potential problem is observed, a "tough love" approach is what it takes to get the person to stop and evaluate what they're doing.

Now is the perfect time to stop and give your plan a great deal of thought. The shop was given to you, and what you end up doing with that gift is entirely up to you. Perhaps you've now been "sparked" enough to make you want to do whatever you need to do to make your coffee shop a success. It's going to take a lot of work. I have a feeling you can make it happen. Be open to ideas and suggestions. Read as much as you can. Visit other coffee shops and ask questions too. The insurance business is a "tough nut to crack", and the coffee business is a tough one too. It can be done.

Best wishes,

Rose