How to Find the Best Location For Your Coffee Shop and Turn Coffee Into Gold!
Stop! Before you open your coffee shop ask yourself one question:
What’s the one thing that will make your shop a money spinner?
The answer is very simple – location, location, location. But many people overlook this starting point. They look for a shop that will cost them the least rent and tell themselves that their shop will be run so well that people will flock to it. But remember, consumers are fickle! And lazy! If your shop is not in the right place, whatever you do and whatever you offer, your business will be limited by its location.
So, don’t commit yourself to any premises until you know how many people will pass by your shop each day. You will be investing a huge amount of your time and money into your new business and you really won’t want it to fail. Put aside as much time as possible to find the best position for your shop. Take a clipboard and stand outside a popular coffee shop – count how many people walk past the shop and how many stop for a coffee. Do this at different times of the day, and different days of the week. Take a note of the nearby shops that are attracting shoppers – you need your coffee shop to be convenient for people who “shop til they drop” and then need refreshment.
On average, customers tend to spend around £4 a head in a coffee shop, perhaps slightly more in expensive areas. You can use this as a basis to work out how many customers you will need per day to cover your costs and make a profit. So, if your operating costs, which will include repayment of setting up costs, wages, food, utility bills and last, but not least, profits, require you to make £3500 per week, you will need at least 125 people per day spending a minimum of £4 each, to give you the £500 needed per day, based on a 7 day working week.
So remember – do the maths first and foremost and make sure your shop is in a location where it will have enough passing trade to cover your costs. If you get this right, you can turn coffee into gold!
To download Don’s Essential Tips and a free copy of his newsletter go to: http://www.howtosetupacoffeeshop.co.uk/newsletter.htm
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment