Opening a coffee shop is a dream for many people out there. Work the hours that match your lifestyle, create great coffee and products you love but most importantly, that laidback work environment. Does it even feel like you are at work?
In reality, it won’t be that simple. Opening a coffee shop is going to grit and determination and a whole lot of passion! Are you up to the task?
If the answer is yes, you are probably wondering how much does it cost to start a coffee shop?
Let’s get into it…
How much money do I need to have to open a coffee shop?
The amount of money you’ll need comes down to many factors. Firstly, what size of coffee shop you are going to be fitting out. You will be looking at a minimum of £25,000 for a smaller space, say around 50 square foot. For a larger property, you will need £50,000 plus.
These aren’t exhaustive totals though. Like many things in life you can pull in all those favours you are owed and do as much work as you can keeping things cheaper or you can spend spend spend.
Spend your money wisely when opening
When you start working on making your coffee shop dream come true there are a few things to consider. Think about where you are spending your money. Are you investing in things that are going to make your products and customer experience better? You need to be as wise as you can with your budget minimising overspending on things that aren’t necessary.
If you are going to be working with any builders, decorators or other tradespeople make sure you do some research into their previous work. Ensure you are happy with the quality of work they deliver before going ahead with anything. The last thing you want is to be paying to have something done twice. Also, shop around. Make sure you get any jobs quoted from at least two people. Doing this could save you a decent amount of money you can invest somewhere else.
It is worth noting that it is worth investing some time and/ or money into your shop front. One of the main factors for attracting more customers into your coffee shop is how it looks on the outside. If it doesn’t catch people eye they may never give you that first try. This may seem like an easy area of your business to overlook but don’t. It is too important to skimp on the budget here.
When opening a coffee shop should I lease equipment or purchase it?
The main factor for this is going to be your budget. I’m sure you are aware of the equipment needed to make good coffee is expensive. A decent espresso machine and grinder can cost you up to £10,000. Compare this to leasing where you could be spending as little as £5 per day.
We recommend making a list of the equipment you want for your coffee shop and price up both options. You may decide to lease for the first year to ensure you are profitable and purchase equipment in your second year. You have to determine what works best for your circumstances.
Costs you need to consider when starting a coffee shop
There are several different costs that you will face opening a coffee shop. Here is a list of things you’ll need to cover.
- Equipment £5,000 – £10,000 or consider leasing
- Decoration (flooring, painting, ceilings etc) £1,500 – £6,000
- Furnishings (tables, chairs, pictures etc) £1,000 – £10,000
- Building work £400+
- Airconditioning £600 = £3,500
- Till £200 – £2,000
- Insurance £500 – £1,500
- Accounting £500 – £1,500
- Crockery £200 – £1,000
- Initial stock £1,200 – £3,000
- Marketing material £400 – £2,000
Remember this isn’t an exhaustive list. Many of the fees will also vary based on your skill level, property size and quality finish you want to achieve.
We recommend keeping some extra budget aside as well. There are always going to costs you don’t expect. For example, some building you didn’t expect or that piece of equipment you forgot to cost. Aim to have a padding of at least 20% on top of your planned costs.
Something FREE for you from BrewRound
At BrewRound, we specialise in helping coffee shops grow their revenue. We provide coffee shops with mobile ordering technology so you can take orders from customers who are on the go. The best thing is there is no joining fee and no monthly fixed cost. Just pay a small commission on orders that come in via BrewRound. Find out more about how BrewRound can help your coffee shop.
Our closing thoughts
Hopefully, this page has helped you get an idea of how much it will cost you to open a coffee shop. Opening up a coffee shop is a big commitment financially as well as a huge lifestyle change. You need to make sure you have prepared on both fronts for the journey ahead.
As the business owner, it will be down to you to drive the business forward. You will inevitably face challenges and tests on your journey as a coffee shop own so you need to have the determination and drive to get through it.
We wish you the best of luck!