Want to open an additional new shop

[Mr Shave]

Hello there,

For those of you that do have or had multiple locations I have a couple of questions
1. Did you keep menu and brand the same? Or roll out a new concept? Why?
2. With the added location did your sales grow faster than previous opened location? Was sales forecast more accurate?
3. What added unexpected costs did the new shop add?
3b. Overall did your COGS go up, down, or remain the same?
4. Did each location have delivery or did you deliver to a central store / warehouse and distribute yourself?
5. Was pricing consistent between stores?

For those of you with shops
What would you differently if you could do it over from the ground up?


Situation:
Currently operate main shop and and an espresso bar. The espresso bar is 1/6 - 1/7 the sales of the main shop, the goal is to build it to 1/3-1/4 by early 2014. The main shop is the hub for the kitchen, money, supplies, and coffee.

The additional unit will the the 3rd unit and a little further away. Sales will probably build to 1/3 of the main shops over time. Pastries and light food will be delivered daily. There is connivence in having paper goods delivered but storage and tying up inventory dollars might be an issue. Also, for coffee controlling inventory from one location and than keeping a smaller inventory at each additional location might be easier and result in better turn.

Thanks in advance for the feedback

 

[PinkRose]

Hi Mr. Shave,

It's great to see that you're thinking about expanding your business.

I'm not sure which members of the Coffee Forum have multiple locations. It may take a while for people to read your post and answer your questions.

Best wishes,
Rose

 

[Flatron]

Sorry that I can't give you any advice Mr Shave, but I wanted to chime in and say that I'm impressed by your progress.
I've read your topic about building your own coffeein a van, then getting into brick and mortar location not so long ago... and now expanding further. Wow. That's pretty cool.


I'll give my opinion regarding the branding, though, if that's worth anything.
I think if you intend to keep a similar menu, it will be best to keep your current brand. You will increase your current reputation and people will know what to expect.
If you were to offer the same menu under a different name, people could be disappointed if they found out that this shop is actually similar to your other one. They would be confused and therefore you wouldn't be able to maximise exposure to the brand and ensuing word of mouth.

Same menu = same brand ; (very) different menu = different brand. That's how I'd go.
That said, introducing small difference in the menus, under the same brand, could be beneficial in order to make customers balance their frequentation (e.g. if they want this sandwich they'll go to the main shop, but if today they're in the mood for that other one, they'll go to the new shop since it's only offered there).


I'll be following this thread as I find it quite challenging. It'd be great if, as time passes, you too could feed it with your own thoughts and early feedbacks.

 

[CoffeeLovers]

If adding another shop, better stick in your concept. I assume that your first shop is doing well because you plan to add another one. What you are doing now with your shop, you may also do the same. However, just improve more on your services to customers.

Don’t compare the sales of your new shop to your existing shop because normally customers just start knowing that you have another shop open. Location also affect the sales that sometimes can even do better sale than your existing shops. Just maintain your good relationship with customers.

 

[Mr Shave]

I appreciate the comments so far.

Update: Signed 3 year lease on 275 sf space.
Traffic count 45k (total for both directions)
1 dedicated stall with handful of visitor stalls
Very accessible.

Budget for refresh is $20k now with a small kicker in Jan for equipment
Time frame: open 10 days
Plumbing and electrical are in place already
Equipment list
2 group Strada MP
2 Mazzer Robur E
1 Fetco 5 gallon tower
Malkonig EK43 grinder
48" prep
3 compartment sink
hand sink
2 incounter rinsers
ice machine
milk bin

retail shelves and a bar

I'll do my best to take pics.