OPEN YOUR OWN

COFFEE SHOPNOW!
THE PASSION | THE PLANNING | THE PRODUCT
OPEN YOUR OWN
COFFEE SHOP
NOW!
THE PASSION | THE PLANNING | THE PRODUCT

There has been an explosion of cofee shop culture in the UK over the past few
years. Brits drink 2.3 billion cups of cofee per year in cofee shops, up 4% on 2016,
according to the UK Cofee Report (published by market research company Allegra
Group in association with UK Cofee Week). In fact, you could say the cofee shop is
rapidly replacing the pub as our most popular meeting place. And its not all about the
big chains. As we get more into our cofee, we are putting quality irst, while the envi-
ronment we drink it in is becoming increasingly important. More and more we are
demanding style, comfort and originality, resulting in the Rise of the Independents.

The number of cofee shops is set to over-take pubs by 2030 as we continue to

swap lager for lattes. There are now around 23,000 cofee shops across the UK, a
combination of non-specialists, independents, and major chains, such as Starbucks,
Costa and Cafe Nero. An average of 3.4 new cofee shops are opening every day, with
1,222 stores launching in 2016 alone.

Last year there were around 1,400 independent cofee shops in the UK, according to
research by Praga Consulting, and this is expected to at least double by 2020, so there
are big opportunities to launch your own successfully.

The key is doing it in the right way. And this guide will irst help you discover if its
the right move for you. Then, if it is, youll ind expert advice to get you of to the best
possible start.

Heres whats on the menu, so you can sample each course in turn or go straight for
the dessert!
Index | Open your own cofee shopnow!

Chapter 1 Be passionate about cofee

1. Get a kick out of cofee

2. Get real and get down
3. Expect the unexpected
4. Listen and learn

Chapter 2 Plan to perfection

1. Budget brilliantly
2. Dare to be diferent
3. Location, location, location
4. Size matters
5. Put food safety irst
6. Source superb suppliers

Chapter 3 Prepare for lift of

1. Get equipped for success

2. Work wonders with your workspace
3. Dazzle with mouthwatering displays
4. Turn on the style
5. Track down a top team
6. Tell the world
Chapter 1 | Be passionate about cofee
Are you the right person to launch your own cofee shop business?

Theres one factor thats more important than any other when it comes to opening your own cofee shop
and thats you! So before considering location, equipment, staf, suppliers or anything else, have some me
time. If you do decide to go for it, this could be on of the most rewarding and exciting things you ever do; but
irst make sure its right for you.

1. Get A Kick Out Of Cofee

To launch a cofee shop you dont simply have
to have an entrepreneurial mindset, you should
also ideally be passionate about cofee. Or get
on board with someone who is. Those cofee
shops currently making the biggest impact
are those that focus on quality. Whats more,
If you dont have a
passion for cofee, the
cofee culture, for hard
people have become very discerning and work and for creating
are demanding great cofee. So before you a great experience for
do anything, educate yourself about what others, then dont open a
it takes to make a great cup of cofee, from
the beans to the baristas to the machines. This
cofee shop!
wont cost you a penny, but will prove invaluable. Heather Barrie
Owner | Harries Cofee
http://www.harries-cofee.com

2. Get Real And Get Down

Although you may have a

vision to run your own cofee
shop, to realise your dream
it has to also be rational,
realistic and pragmatic. You
need to plan very carefully in
terms of costs, or youll never
get there.
Igor Occhiali
Owner | Rubens Twickenham
When you start out a lot of your proits
will go towards paying of your initial
investment into equipment and supplies,
so be prepared for money to be tight at
the beginning. The same goes for your
time. Launching any business takes a big
time commitment, so be prepared for
long hours and hard work, especially in
the early days while you build your loyal
team. Putting in the hours at the outset will
help to ensure you reap the rewards later.
Chapter 1 | Be passionate about cofee

3. Expect The Unexpected

No matter how prepared you are before you launch,
there will always be challenges that crop up that you
are not expecting. Important equipment could
stop working, a member of staf might simply not
turn up for their shift one morning, the power or
water supply could be cut of to your cofee
shop, or you could simply be faced with a very
Youll ind hurdles and
opportunities cropping up as
soon as you start to give focus
diicult customer. Particularly when dealing
to the idea. Write everything
with the general public on a daily basis,
anything can happen so you need to expect
down, be as realistic as you can
the unexpected and be able to think on your be (but dont let that crush your
feet and act calmly, quickly and decisively. Of dreams!) and have fun!
course, therell be plenty of nice surprises too!
Heather Barrie
Owner | Harries Cofee
http://www.harries-cofee.com

4. Listen And Learn

There are bound to be times when everything
seems to go wrong and that the world is against
you. Perhaps the problem was beyond your

Love what you do, be

prepared to work very
hard and become a
control, or was down to a mistake youve
made. Dont worry, were all human and we
all make mistakes. The key is to learn from
them so you avoid them next time, and you
master of all things. need to bounce back quickly, by picking
Network regularly and yourself up, dusting yourself of and going
ask for help when you again. Remember that you are never above
taking advice and learning from others
need it! experience. Doing so can often prevent the
Heather Barrie mistakes happening in the irst place.
Owner | Harries Cofee
http://www.harries-cofee.com
Chapter 2 | Plan to perfection
The more you do now, the less youll need to do later and the more success youre likely to have.
Once youre sure youve got what it takes to launch your own cofee shop, its time to start planning. Carrying
out thorough research and drilling down deep into inancials will lay the foundations for future success, so its
vital you delve into every possible detail. Of course, youll also have time to dream about how your cofee
shop will look and feel, and carefully decide on the design of your menus, branding, etc, which its also vital
to get right.
1. Budget brilliantly
Not planning the inancials could mean your cofee shop
project is doomed from the start. Begin by drawing up a
list of the equipment youll need, from machinery (cofee
machine, dishwasher, oven, fridge, etc) to furniture,
crockery, cutlery and ittings (display cabinets, shelving,
signage, etc). Then consider the cost of a makeover in
terms of design and decor. And dont forget branding
and marketing, which initially will mean costing up the
design of your logo, business cards and other printed
materials, and your website. Youll also need to assess
how much youll initially need to spend on stock in terms
of cofee supplies and food.
The cost of renting a retail space can then go on top
and will vary dependent on location and size of your
premises. And you also need to take into account any
regular charges, such as utility costs and any equipment
you might be hiring. And its probably a good idea to
over-estimate each item on your costs list to provide
yourself some slack of, say, 10% of the anticipated costs
its better to have a little more in your account after
everything is paid for, than be short.
This should give you an idea of the budget youll need,
which you can then to set about acquiring, whether
from your own savings or some form of funding. The
traditional source of inance is a bank loan, but there are
also other loan options as described by smallbusiness.
co.uk. There are also a range of other options beyond
a loan, such as those outlined by new business website
Startups.
Critical to securing funding for your cofee shop will be
a good business plan, which will also help you plan your
business overall. Here, Barclays ofers advice on writing
a business plan along with a down-loadable tool kit.
FOR EXAMPLE
You wont get much change out of 30,000 if youre
opening an average size shop (50-60 square metres)
with space for around 50 customers, according to cofee
suppliers and barista trainers Limini Cofee. Heres a
quick guide to what youll need and the rough cost:
2,500 - 10,000 for espresso equipment
1,000 - 2,500 for dishwashers
1,000 - 2,000 for flooring
500 - 2,000 for ceiling
100 - 500 for painting
500+ general building work
500 - 3,000 for AC
250 - 1,000 for crockery
250 - 2,000 for a till
500 - 1,500 for accountancy
500 - 2,000 for solicitor
500 - 1,500 for insurance
1,000 - 3,000 for initial stock
100 - 2,000 for signs and marketing
39+ for EPOS system
plus working capital, deposit, rent, rates,
planning applications, change of
use, professional advice etc etc
As you can see, the single biggest cost will be your
espresso making equipment, so you can lease equipment
to keep the initial cost down for around 5 a day.
You need to stay ahead of the game and always have
a plan! Make a budget and add a chunky contingency. If
you dont make the budget, youll have planned for any
shortfalls in income or over-spends if you achieve larger
sales volumes than expected or dont have to spend as
much, then you have a delightful windfall and can use that
for growth.
Heather Barrie, owner Harries Cofee
If you need inance from a bank, you have to put
together a detailed viable business plan to be able to
secure the funds. The more you can do yourself, the more
money you will save and the banks like this it shows skill
and commitment.
Igor Occhiali, Rubens Twickenham
Chapter 2 | Plan to perfection

2. Dare to be diferent
To stand out in an increasingly crowded market,
developing a unique identity is crucial to give people
a reason to choose you over another, perhaps more
generic high-street caf. Start by pushing your in-
dependent credentials as many people prefer to give
business to local establishments over the big chains,
and are looking for something diferent.
Think up an original twist. Perhaps you could ofer a
selection of unusual or ethically sourced cofees, or
locally produced organic food and cakes, or feature
strikingly designed furniture or crockery, display local
art, or spin vinyl records, letting customers bring in
their own to play. Also, add extra value to someones
visit by ofering, say, free reading material or small
biscuits or snacks.
FOR EXAMPLE
Two independent outlets within two miles of each
other in West London have each put their own origi-
nal twist on the cofee shop and are both thriving.
Rubens in Twickenham opened as an Italian conti-
nental cofee shop ofering home made artisan bread
and cakes using a wood-ired oven that owner Igor
Occhiali installed on the premises. Within two years
Rubens expanded to the retail space next door
to create a restaurant area and has now opened a
second shop. The Follow Deer in Teddington came
up with the idea of an original rustic theme in line
with nearby Bushy Park where deers roam wild,
and also got a drinks licence launching a cocktail
evening once a week, complimenting their baristas
with mixologists. Again the outlet grew in popularity
and now also hosts set menu dinners on Saturday
evenings.

The twist or extra value you choose should match the

kind of people who live and work in the area where
youre located. Are they hipsters or young mums, for
example?

Finally, dont just be diferent, be better. Cofee lovers

are increasingly knowledgeable and demanding, so
whatever you do, put quality irst.

When deciding on your point of diference, think about

your customers. If you have lots of students coming
in your shop, with vinyl records making a comeback,
This is a crowded marketplace. Its
dominated by the high-street chains
and a huge variety of independent
cafs. So youll need to stand out
why not invest in a turntable and let people play their by being really good at what you
do and doing it consistently. Be
own records? Or even sell second hand records too? individual but not silly, make your
cofee shop memorable for all the
right reasons, not the wrong ones.

And always be consistent!
Heather Barrie
Owner | Harries Cofee

http://www.harries-cofee.com
It can help if you bring in a truly
original approach. I was passionate
about bread and so installed a wood

ired oven to become an artisan
bakery and create a real point of
diference.
Igor Occhiali
Owner | Rubens Twickenham
Chapter 2 | Plan to perfection

3. Location, location, location

Statistics show that around two-thirds of people buy cofee
when theyre on their way somewhere else, so it makes sense to
pick a busy, bustling location, but of course these cost the most
in terms of rent. Lots of passing trade is great, but regardless
you should be creating a desirable destination people will want
to visit, and this can also make a spacious, but quieter location
an option if you are short of budget, particularly if it is currently
poorly served. Tread carefully here though and make sure theres
not a good reason for this.

As a quick guide, if a big chain is present and is busy during

peak periods, theres likely to be room for an independent
alternative.

There really is no excuse not to do lots and lots

of research into your location by visiting a
number of places to ind out how busy they
are, checking out local rents, talking to local
shopkeepers and investigating if there is
You have to have footfall a cofee
anything happening that could turn an
area into an up and coming hub, such as
new transport links, oice and housing
developments, etc.
shop is all about numbers if
youre out of the way, you need the
funds to build your market and your
regulars. And most good locations
will also have competition. Create
something that works within the
environment and location and not
just your dream be realistic!

Heather Barrie
Owner | Harries Cofee
http://www.harries-cofee.com
Chapter 2 | Plan to perfection

4. Size matters
Once youve chosen your ideal location you need to decide on the most
appropriate size for your cofee shop. Are you going to set up a kiosk for
busy commuters to get their cafeine ix, or a spacious, sofa-laden suite
in which people can relax and meet with friends? Make an informed
decision by weighing up the rent against the kind of people youll be
serving and whats on the ground already.

The local rent should give you the maximum shop unit size you can aford,
while the types of customers youll be catering for will give you an idea of
whether to need all that space or not. With a busy commuter customer
base who mainly drink-and-go or takeaway you are unlikely to
need as much space as if most of your clientelle are young
mums who need ample room for a buggy and to relax and
chat. So dont just think numbers, think lifestyle too.

As a rough guide, accommodating 15-45 people

seated will require a 500-1000sqft caf; 45-100,
1000-2000sqft; over 100, more than 2,000sqft.
Find a mediator to help you
negotiate your lease and rent-
free period. Along with staf
costs, these are often your
5. Put food safety irst highest costs get the best
deal that you can and make
sure that you can realistically
There are strict laws that relate to serving food to
pay your way often rent is
the general public and its vital that you are aware
of all the relevant regulations or your caf could
payable quarterly, so watch your
be doomed from the start. Youll ind all you need cashflow!
to know in the Safer Food, Better Business leaflet Heather Barrie
from the Food Standards Ageny, which contains key Owner | Harries Cofee
pointers on serving food, including cooking, cleaning, http://www.harries-cofee.com
chilling, management, contamination and keeping a
food diary. Meanwhile, the Hazard Analysis Critical Control
Point, or HACCP is an internationally recognised method for
identifying the most common food preparation safety hazards.
Chapter 2 | Plan to perfection

6. Source superb suppliers Decide on your ethics, the level of
Your suppliers will directly afect your proits (through quality that you wish to serve and the
impression that want to make on your
cost) and service (through reliability and flexibility),
customers and potential customers. The
so source them carefully. Avoid going for one mega
suppliers that you use should reflect
supplier, even though logistically and inancially it might
these measures. Get the best terms that
seem to make sense, as you will have little negotiating
you can and treat them well they are
power. However, it can pay to have one supplier for the people that often help you out in
compatible items, such as consumables, electricals, etc, emergency situations!
as you can beneit from volume discounts and wont be
Heather Barrie
putting all your eggs in one basket.
Owner | Harries Cofee
Select at least three possible suppliers for each product http://www.harries-cofee.com

and service or groups of products and services then

compare them in terms of speed, value for money and
payment terms. Reliability is essential, so ask if you can
talk to some of their cofee shop clients to ind out how
good their service is. Plus carry out a credit check on
them to make sure they are inancially sound.

Trade associations like the Catering Equipment Suppliers

Association, the British Retail Consortium and the
Beverage Standards Association have recommended
supplier lists, plus ask for recommendations from other
If you ind a good quality
supplier and build your products
around them, then if can be
worth sticking with them as
cafs around your area.
they bring their own quality and
kudos, even if they lack in other
areas.

Igor Occhiali
Owner | Rubens Twickenham
Chapter 3 | Prepare for lift-of!
Once youve found your space you need to get it ready for business.

With the inancials in place, your perfect location secured, your ofering
decided upon and your designs drawn up, its time to get physical by
kitting out your cofee shop and building your team. Heres how to make
sure everythings in place when you serve your irst customer.
I was passionate about doing
everything myself from the ground up.
So I drew on all the skills I had to do
as much as I could to save money that
I could invest in quality. This meant
1. Get equipped for success
I planned the shop myself, did the
plumbing, installed the equipment
One area you should not skimp on is your espresso machine as your as much as I could do.
cofee needs to be the best possible quality and your baristas need the
Igor Occhiali
right tools of their trade. Whether you rent or buy, put quality irst. Thats
not say you cant acquire them secondhand, but establish purchase date
and service history before you do.

Beyond the espresso machine, make a list of all the other equipment youll
need, from a dishwasher and fridge to microwave and chilled display
cabinets, planning them into the layout of your barista work area. Heres
a list of the basics:

Cofee Machine
Water Boiler
Grinders
Blenders
Ovens
I had technical issues that hindered
my ability to be open the hours that
I wanted, which lost me revenue
and also cost money to resolve,
Panini Grill
so source all your equipment
Furniture
carefully, make sure its all insured
Dishwasher
where necessary and consider a
Ice Machine
maintenance contract.
Chillers & Freezers
Aircon & Extraction Heather Barrie
Burglar Alarm & CCTV Owner | Harries Cofee
Till http://www.harries-cofee.com

If you are buying new, then a reputable supplier who ofers an excellent guarantee and can service is preferable
for cofee machines, grinders and tills. Renting/leasing or try before you buy from U-Select are kinder on
your cash flow while ensuring you still have irst class equipment. Buying second hand should be done with
caution. There are certain pieces of kit to probably avoid buying second hand, including the cofee machine,
the ice machine and dishwasher, these can be a liability and cost you a lot more in the long run.

Whether looking to buy new or used equipment or lease it, U-Select is a good place to start looking, and they
also provide an easy checklist.
Chapter 3 | Prepare for lift-of!
2. Work wonders with your workspace
Make it as easy as possible for your baristas to make
the best cofee and serve it quickly and eiciently
by keeping the work area compact, minimising the
distance from espresso machine to counter. This
will help to speed up service, maximise productivity
and give your team that little bit of extra time to en-
sure each cofee is made to perfection.
Show your customers you have nothing to hide and
let them see your baristas in action by positioning
your espresso machines so people at the counter
are close to them and have a clear view. Plus keep
the milk fridge and the serving counter close to the
barista so drinks can be poured in front of the cus-
tomers.
Keep the dishwasher and rubbish bins below eye
level and other equipment, such as the microwave
oven, handy but less visible to customers to keep
used crockery and cutlery out of sight.
3. Dazzle with mouthwatering displays
Food from cakes to sandwiches should be well
displayed so customers can clearly see whats on
ofer. For maximum impact, the main display area
should be built into your serving counter so people
pass by as they queue, while items are also on-hand
for your staf to serve quickly and easily.
Make sure everything is clearly labelled and priced,
including as much information as possible, such as
calories and ingredients. It can also be a good idea
to always have some free samples of your food on
the counter for customers to taste. This creates an
added treat and also tempts people to buy.
Chapter 3 | Prepare for lift-of!

4. Turn on the style

How you want your cofee shop to look is down to your personal choice, and you can be creative without
spending a fortune. Its important to make sure it its your brand so that youre sending out a clear and
consistent message to customers.

Layout-wise, if you have the space its a good idea to give your customers a choice of whether to lounge on
a comfy sofa, great if your having a cofee and reading a book, or sit at a table, which can be more practical
when eating a sandwich.

To save money you can decorate the place yourself, and source secondhand furniture an eclectic mix of
diferent kinds of old wooden chairs, tables and sofas can create a homely relaxed atmosphere and shouldnt
cost the earth.

You can see a whole host of cofee shop interior designs on Pinterest to help inspire you

Design magazine Dezeen also has some beautifully shop stunning examples.

We kept the decor

basic and utilitarian
to save money, with
reclaimed tables and Ensure your interior
design is consistent with
chairs, but people love your brand and make sure

it and it has become
one of our trade

the layout is practical and
is easy to clean, maintain
marks. and move around.

Heather Barrie
Igor Occhiali
Chapter 3 | Prepare for lift-of!
Employ people who are
trainable, have character and are
caring these are things you
cant teach. Create and maintain
a culture that reflects your brand
values, so customers will feel a
good vibe that will bring them
back for more.
Heather Barrie
5. Track down a top team
Its likely youll want to keep your staf numbers to a minimum
at launch to reduce costs, but you need to make sure you
can still deliver a great service. This will probably mean youll
need to be hands on yourself, and if this is the case youll need
to make sure you have the proper barista training and also
experience. Also getting professional training and working as
a barista yourself means you can save on the cost of training
your staf. Initially, though, it will make sense to make your irst
appointment an experienced barista.
Beyond having the right skills, you want your team to create a
welcoming, friendly atmosphere. The quality and personality
of your staf are what can really set you apart from the big
chains by giving your customers the personal touch. Having
the right equipment for them to use, paying the going rate and
managing them well will also help to keep them happy, which
will ultimately be passed on to your customers. Remember that
a happy, motivated team means happy customers.
Your people hold the key to
good service, so when you ind
good ones keep hold of them by
giving them incentives to stay,
like promotions, and show you
appreciate them.
Igor Occhiali
Chapter 3 | Prepare for lift-of!
6. Tell the world
Like any business, youll need to market your cofee shop, but if you plan this carefully it doesnt have to be
expensive. A good name, well-designed logo and clear signage can play a huge role in attracting people, so
take time to think this through.

One of the hardest things is to change peoples habits. Many of your potential customers will already have
their regular cofee shop. You need to give them a very good reason to come into your shop instead. So how
can you convince them yours is better and win them over?

Here are some key tips:

Word of mouth
Probably the best marketing that you will ever get, this relies on you delivering a great service and making sure
every customer is happy, so theyll spread the word to their friends and colleagues. Remember, happy customers
will tell a few people about your cofee shop; unhappy customers will tell a lot of people, so get it right irst time.

Loyalty cards and freebies

People may hear from other people how good you are, and a beautiful shop front may well catch their eye, but a
more direct way is to ofer free cofee. Walk around the town and give people a voucher for complementary drink,
saying you have opened and to celebrate you would like to ofer a free cofee. This can be very efective as they are
getting a gift and putting a friendly face to that new place on the corner plus it wont cost you much at all. The free
cofee could be the irst box on your loyalty card, which when illed they get another free one. Or you might want
to give away a free cofee with a cake? Either way this is a great cost efective early marketing tool. Make sure to
really advertise the loyalty cards in your cofee shop and you could even add a prize draw every month.

Time-speciic ofers
Breakfast, lunch and afternoon ofers work really well. An afternoon tea and cake or cofee and scone ofer for the
morning. Consider setting up a lunch special to attract customers around midday and early afternoon. Tap into the
seasons by starting a Christmas ofer far enough in advance and promote your cold drinks in time for the summer.
Chapter 3 | Prepare for lift-of!

Social networking
Social networking, such as Twitter and Facebook, can be a great way to market your cofee shop, and they are free.
Make sure you add regular interesting posts that reflect your vision and values as a business and brand, and that
you dont simply promote your products. Social networking should be used for networking, not for advertising your
products and services only. So make your social networks fun to follow and simply tell the world what youre doing.
And dont forget to encourage feedback as this can be a great way to stay in touch with your customers and keep
front of mind.

Have a great website!

Every business needs a presence online, even a small tiny cofee shop! Your website does not have to be massive,
but it does need to look good and work well. Make sure your site has an easy-to-update content management
system, so you can update it regularly with new images and also a blog. You could even include a gimmick like a
webcam video, so people can actually see your shop in action.

Create your brand and be

consistent in how you deliver it,
whether thats on social media, in
how your caf is styled, in the look
of your website and in the marketing
strategies that you create. With all the

tools available online, you can possibly
do a lot of your own stuf but if this is
not your skill get help.

Heather Barrie
Remember these are only pointers and ultimately youll do it your own way, but hopefully this guide will
help to put you on the right path to opening your own successful cofee shop. And if things go well you could
soon be opening your second caf