Restaurant guy here with more than 10 years experience, including years working with startups. I have to chime in about your line where you said that everything has to be of the highest quality and if the mistake is made it has to be remade. This line of thinking destroys startups in the food industry. It is simply not true. I get it that we all are lovers of the art, but you have to understand that quality is a never-ending scale that always increases price. Good enough is good enough. The most popular restaurants and drink shops in the world, are absolutely known for everything but their quality, The average customer/consumer does not appreciate your art and would much rather have something in their hand now then something that you define as perfect a little bit later.
Yeah but you’re missing the point. The market he was targeting and his passion was quality coffee. If he wanted to churn out dross he could have done, but why would he? He isn’t interested in doing that.
@@jonnydoeson5562 what market though? The location is in the middle of nowhere. With so few people around, there's no sub markets to pick and choose from
@@jonnydoeson5562 there's a difference between serving drivil and having a 100% quality rating. If you want to serve food with zero mistakes then you need to charge 100 dollars a plate. In the real world cooks and baristas make mistakes constantly and still hand that product to the customer. There's quality issues that are unacceptable, don't get me wrong. I'm a meat guy in the industry so I know that if I give someone a cut of beef that's all gristle they aren't gonna come back. But if they order a steak medium rare and I give them one that's medium with a mediocre char, that's fine. I'm not happy with it, but it's a 15 dollar steak, not a 75 dollar steak. I live in an area with hundreds of coffee shops around me and the amount of times I go in for a fancy drink and the guy in front of me in line gets a drip coffee black no sugar always blows my mind. People most of the time just want something in their hand
@@doobledoo I get it, you need to make money and the bulk of the money comes from people who don’t care about the quality of the product that much. The thing is, I think this guy focussed solely on his own interest in quality coffee and forgot to appeal to the common man with junk which would actually bring money in and ultimately support what he wanted to do.
Tbh atmosphere of the space is probably more important than the coffee except for coffee snobs. Paper flyers in in mailboxes is probably best marketing in a small town
The village still wanted a cafe! A cafe has life, music, cozy seats, interesting decor, warm friendly hosts, a cabinet full of sweet and savory foods, tea, juice, soda, a freezer of ice creams and coffee. You gave them a bespoke coffee tasting pickup office.
Yeah, most people really do not go to coffees to find the best tasting coffee. They go there to enjoy a bit of time with friends in a pleasant environment. Coffee just need to be not terrible.
Exactly, it seems that all this project was not really thought of and build up very naively with poor planning and no actual strategy or product market fit..
I agree. He is so focused on the coffee. Most (99%) of people will not notice small differences. I'm preparing a Bondi coffee with a pressurized filter for my wife and she couldn't be happier. She likes it more than from the cafés.
It takes a lot of courage revisiting and reflecting on a place of disappointment. As someone who wants to run a cafe, this video is really appreciated.
@@tanelpolts7257 Not sure I would call myself wealthy, at least not wealthy enough to be able to throw money at a cafe and not care about how it goes. I would love to start a cafe, and it would be a huge risk financially. I suppose that's why this video was impactful and helpful for me.
@@aquathamer707 why would the wealthy open up a cafe and not care about how it goes? If they do it it means they do care. And if it goes bust, they are not going to lose their shirt over it. An average person opening a cafe is insane. If you think the minute details matter in making it work, you're delusional. Location, location, location. And lotsa money.
"you're so stunning and brave for talking" It used to be the case that men had to sacrifice their lives to be called courageous. Now, Soylets have dropped the standard so low that you can be stunning and brave for just admitting you made a mistake lol. Of course you look like Seth Rogan
''I can tell from looking at a coffee shop (or photos of it) if their coffee is good'' ... so I made my place look quite terrible because I couldn't afford better. Great plan.
yeah showing an empty coffee shop on google maps is not a good move. You have to make people think there is something happening and that others enjoy it already
The inside of his cafe looked terrible, his setup could just be a street stand. He also wanted to do way to much high class stuff if he wanted to capture the whole village.
@@tarazieminek1947 If 5% of the town shopped there every day, that would be 75 people, might cover the rent with that, but not earn a profit in the end. Getting 5% of the town daily is unrealistic to begin with, so business was guaranteed to fail.
I know a country town like yours. There's a bog ordinary "cafe" (which is also a chippy/burger joint) which does more trade than any other food business in town. At the end of the day, people want an okay coffee, for an okay price, in a friendly place. They don't give a shit if it's single origin and artisan roasted. They don't want or need "classes". They want a warm building, efficient service, and a decent price. You basically pitched a city concept (badly), to an entirely different crowd. I also think the brother in law roaster made it a vanity project.
I’m not sure if it would have made a difference, but the local cafe where I live opens at 5:30 AM. I believe you said yours opened at 8 AM. A lot of people are already at work or on their way to work by then.
Yep, especially in a small town that's more of a bedroom community. If people have to be in the office by 8 or 9 and you're trying to catch them before their commute you'll need to be open way earlier than 8.
If you are trying to sell a cup of coffee you.better be open by 5 AM to catch your customers otherwise it's a lost cause,you could open.at 4.and close at 8 and be better off than opening at 8 am
The appeal of the coffee shop isn't really the coffee but the ability to drink coffee in a "living room" away from your living room. Edit: My condolences.
Heya! Cafe owner here, coming to the end of my first year. 9 months of expenses in the bank makes a start up entirely unfeasible for most people. I opened my cafe (the wandering goblin, in Nottingham) with zero money left when the doors opened officially. The secret isn't online marketing, it's putting the work in the build community even before you open the doors. I spent months running pop-ups while getting everything organised, building a following and offering consistency before the cafe's location was even finalised. You can either invest money OR time. As someone who's been in coffee 7 years, money wasn't an option because this industry doesn't pay. Your community will carry you through, if you put the time into building it. I hate the industry idea that everything has to be expensive. The idea you need an expensive machine and expensive grinder is also a load of crap. It's a matter of skill. I run my bar off of an old school lever machine I got second hand, and run everything through the same grinder - but with a thoughtful approach it's absolutely feasible to still keep everything dialed and tasting great. The mentality of "oh but if I had (x) machine I could do better" is super unconstructive and stops you focusing on what you can change in the moment. You need to work with what you have, and do the best within your means. A cheap machine isn't an excuse, and an expensive machine should be a low priority aspiration unless you're in it for the hobby. I'm really tired of running into this gearhead mentality. Obviously my cafe is based in a city, so it's a little different - but the base premise is the same I think. I do agree that everything should be of equivalent quality - I think your cheapest thing should be as good as your most expensive. A bad shot should never be served, etc. An espresso shot in most cafes costs £0.30 (assuming you have half decent coffee on house). That's a worthwhile loss to remake if the shot doesn't pull right. 30p to guarantee a great experience is a no brainer. I'm sorry to hear about the failure of your shop, I'm sure it was absolutely crushing. Having been doing nearly 100 hour weeks for the entire last year, I understand how difficult it is.
you nailed it, pop up stores and build a following, i drank at starbucks twice a day for 7-8 years as an expat here in Asia, about two years ago a new type of coffee trend emerged in vietnam, philippines, indonesia etc and since then i have NEVER stepped foot in a starbucks again and im at the new coffee shop twice a day and they did the same thing you said.
I like how you are a coffee autist who tried to sell coffee to other coffee autists in a village of 100 houses which probably had 1 other coffee autist living there at most. I am fascinated by your courage and trust in this business idea. I think in a hip area of a city it would have worked out
I lived near a logging town with a few thousand people, someone opened a wine and cheese shop there, same results. Loggers and mill workers just aren’t into fancy wine and cheese, who’d a thunk it?
the thing is though, the general public are not coffee snobs, they just want a half decent coffee and a nice place to sit and chat. They overcomplicated a very simple concept and it didn't work out.
I get it that you always want to serve 100% quality all the time. Like dialing in your recipe 3x a day due to temp changes and humidity. But always remember that sustainability is the key to success business. I think 90-95% is good enough for a sustainable business
In manufacturing we say you need to be churning out like 70-80% standard assembly line products and the rest you can use to do bespoke stuff. Only doing bespoke stuff would cause your company to fail in no time.
if that's what he was doing... facepalm... that's a well deserved failure... Just sell stupid coffee, pocket the margin and go on. Don't be the king of the hill, the best coffee on the planet. Nobody cares enough and goes "Oh my god, how did I live without this coffee all my life before!"...
@@DanOneOne yeah but he wanted to because he’s passionate about it. That’s what the discourse is about. He needs to make it work while keeping his eyes on the prize. It’s not that difficult tbh. I’ve seen it done in several places where I live.
@@jonnydoeson5562 well, I was passionate also and I was beaten up just like he was. This beating is our lessons to not live in a fairytale. But also this: People need something and when they need it, they appreciate it and pay for it. If everybody just does what they are passionate about, then who will do things that people need?... Look at all the stuff we consume and don't even think about. People on the other side just produce it. They don't parade their passion, most don't even like their jobs, but they produce it because people pay. So the rule is simple: They don't pay you - you don't do it. There is no other way. You can be passionate when you will be a millionaire.
This is a brutal watch. I totally understand why your experience was difficult to talk about, but if it's any consolation, your cautionary tale was a fascinating watch. I'm sure it's no consolation at all.
I look back and all I see is a fantastic learning opportunity. I didn't do enough due diligence and next time I do a cafe or roastery I will be in a much better position to do it right.
@@homecafecharlie Personally I find the whole fuss and expense of coffee to be totally baffling. I'd opt for a quick cheap white Nescafe any day (apologies to your sensitivities). Before opening in a small town you need to work out whether 1% of people are like me or 90% so you can make sure you have enough footfall. Your passion is brilliant but it's a business. Very best of luck if you try again.
@@robdw42Amazing that this video popped up in your feed then! For me it’s spot on. Coffee lover, interested in small business and startup stories. The Algorithm has its mysteries …
You started a coffee shop business in a village and opened at 8am. Did you do any research regarding demand? Did you produce a business plan? Did you have any business training prior to starting? A good business plan forces you to look at your expected income and expenditure realistically. Most businesses make a loss in the first year, break even in the second year and only reach profit in the third year. 80% of small businesses fail in the first year (in the UK). Sometimes a good business plan will show you that this business is not viable and save you from future debt, bankruptcy and regret. Too many people start businesses based on personal feelings and not facts.
The place really looks shitty, no seats, so just takeaway coffee. High quality coffee and takeaway coffe is a contradiction in itself, how can you enjoy top coffee while walking to the smelly train station?
@@frankfahrenheit9537and if you’re takeaway only, a huge part of your clientele will be pre-work commuters, which by opening so late you’ll completely miss…
@@frankfahrenheit9537 Great point about no seats. Even one of the 5-star reviews he showed in the video mentioned that there was only a "single table" to sit at. That's not enough to provide the cafe experience that he said that town was looking for.
The overly expensive, specialty factor inputs and very little custom is going to kill the business record time... its heartbreaking. I'm in no way going to run the gent in the video down because he's clearly passionate about what he was doing but you are totaly correct at the microeconomic level. This may have worked in an expensive London Borough where disposable income and leisure time of agents around the cafe may have helped.
By 4 minutes in we've learned a small village is not the place for 3 Michelin star coffee roaster. Under capitalization gets one the wrong space, wrong equipment, and wrong aesthetic: especially for a 3 star Michelin coffee roaster. Bare minimum to open a café is probably in the 50K region, and that's with the owner working all the time. And a proper café, easily 100K. Otherwise, you're just a kid selling lemon aid on the sidewalk.
I prepare my own coffee at home, I don't drink coffee from take away coffee shops unless I am on vacation. I do however go to cafes to meet friends and socialize, and I don't care so much about the quality of coffee as long as it's a friendly and cozy ambience.
I think the most underestimated aspect of business is pure presentation or design. The smallest detail matters, including perhaps paying the additional $0.10 per paper cup to get modern cups versus unsightly patterned cups. Great products are great, but humans naturally devalue even a functional product if it’s not accompanied by good aesthetics.
This level of detail MAY be important in a more competitive market, not sure it applies to a coffee shop in a small village. Just give them a better warm drink than they can make at home and a pleasant place to drink it.
To be honest, the ambience seems to be the place where they really fell down. Nothing about the space makes me wanna go spend time there. My favourite café (which also has incredible coffee) has a very similar green and wood vibe, but it’s bright and airy and filled with wonderful music, cool artwork, massive plants, very nice dishware and paper cups. It’s a place where you can spend hours hanging out and just feel cool existing. This reminds me more of a shoebox condo you’d find downtown.
No, 95% of your customers don't care won't even notice. What gets people in the door is marketing and advertising in order to run an effective campaign you have to be doing it for 6 to 9 months to confirm everyone and their brother knows and has a good shot to come in.
@@InvestmentJoy But getting a customer in the door doesn’t mean they’ll want to come back. If you don’t create a compelling atmosphere where people want to spend time, you’ll never convert those people into loyal, regular customers. That’s pretty crucial for a small business in an equally small town.
There are lots of people that will happily tell you about getting rich quick schemes but there's hardly any that tell the real story that business is hard and expensive and needs a whole lot of luck. Replace coffee with magic tricks, juggling equipment and kites and my experience is exactly the same as yours. I have no idea why UA-cam recommended me to you but I'm glad it did. Tremendous video. Best of luck with your future endeavours.
You have to start on the demand these days. Once the demand is locked down you can start meeting it. Another thing is that if you love the subject of your business, you're easily distracted by it and not focused on the business itself. A business is about making money, a hobby is about your interest in the subject and it's really hard to seperate those two if the subject was your hobby. Simply put, you have to limit yourself to proven strategies and methodologies even if you're knowledgable and motivated about the subject.
I've owned and operated high street retail cafes, food service and catering businesses for close on 40 years. It's a brutal business that chews up and spits out even experienced operators, so don't be to disheartened about your first venture not working. In that village, with such a low population, not even the most experienced operator in the world could have made it work. No matter the countless other issues. Thanks for posting a well made and informative video. It's very brave to show your mistakes for all to see.
10/10 for being brave enough for making a video explaining the issues of how this business failed. Budding entrepreneurs can learn a lot more from what went wrong stories, than success stories. This is my cautionary tale: I had a bakery/ coffee shop/ cafe in Dorset that I bought as a going concern, increased turnover to about £220k pa, then sold it 3 years later. The coffee machine cost £3000, the filter cost about £100 and needed replacing every 6 months. Rent was about £32000 pa (prime spot on a square/ High Street position), rates £10500, 2 full time, 5 part-time staff. But it is exhausting, opening 6/7 days a week, constant staff issues, maintenance costs on ovens, display chillers, air-con, dishwasher machine etc., staff stealing from the tills, managers forgetting to lock up properly or leaving ovens on, dealing with the 'sharks' that prey on new and start-up businesses (like firms that claim to reduce your business rates). Also, commercial leases have clauses that continue the liability for rent payments, even if you close the business or sell it on to somebody else who then stops paying the rent (YOU ARE STILL LIABLE FOR THE RENT IN MOST LEASES).
Unfortunately, it seems like the cafe was too much about coffee and not enough about hospitality, hence no culture/third space element to offer the community. That said, most people leaving rude comments have never tried to launch anything themselves. There has to be another path for you with your marketing experience and expetise in coffee.
A village doesn't want a speciality coffee in/out place. They want a caffee kind of place with normal coffee (italian), sweets, easy music. You tried to bring a hypster city coffee into a village and they said no. People that came and tried different beans... They just tried to find something they liked and didn't at the end. I stopped counting how many "speciality" coffee places opened and closed in my country. But classics stay. Be an artist in your free time but in business give people what they really want and what they are used to. Running a business is hard. Still kudos for trying and don't stop dreaming.
Coffee snobs are making their own coffee at home. Your little village just wanted a cozy place to sit and chat with their friends while drinking something that resembled coffee. If your coffee is good, people would pick some up on their way to work at 6am, with a scone or cookie. You opened a shop that reflected your lifestyle and wants, not the customers. I fear your book will go the same way.
I worked as a coffee machine engineerfor 30 years in oxfordshire. Also installing equipment. The overheads are insane. I would say, 50% of machines I installed, I was back there, collecting them when the business failed. There was one, in at Clements, that went under, customers were queuing up outsid to get served. But the landlord, seeing this kept putting the rent up, and bust their business. You need to open early, to sell beacon, egg, sausage sandwiches to folk going to work.
i choose the cafe because of it looks most of the time, I'm not s coffee snob and I just want to have a nice place to take my friends/girlfriend with me. Your caffee shop from photos looked soulless, kinda like a corporate meeting room
I still can't talk about my failed coffeehouse/bakery/cafe. I put my whole heart, time, and savings/retirement into it - just heartbreaking. Thanks for sharing your journey...
You can always try again later. You won't be starting from zero. You will have past experience and more knowledge. ....pfff just take a break to regulate emotions and try again.
thx for sharing. sounds like a vanity project more than a business. If "the town" wanted a coffee shop, then maybe the townhall could have given you a nice space where you could have at least 2 tables and 4 seats. The space you operated in looked terrible. There's no mention of foot traffic analysis. Starbucks doesn't open locations randomly. I like the coffee tasting classes idea a lot, but i'm not even sure how you could fit the people in that space, must have been very awkward. And you folded almost immediately after opening up. And if you needed a space heater to keep your hands warm, i suspect the space was welcoming like a strain station platform. I'm sorry it failed, but that feels pretty unsurprising. I assume you didnt lose too much though, because you guys were the employees, the gear can be resold, the rent was cheap, and you had almost zero fitout.
I agree the space was a head scratcher. I've seen small coffee spaces work in cities with a lot of foot traffic but I don't see how it could work in a small town. Why would the town provide free space for a private business? It's possible they would rent a space for a favorable fixed rent and share of income?
@@sophocles1198 There's different ways to skin a cat. Cities almost always have real estate that's underused / poorly used, or unused, so they can loan it, rent it, income share it. What's clear is that a tiny, poorly heated, poorly located, poorly fitted location with limited foot fall where you can't sit down doesn't sound like a winning proposition.
This is England. The parish council will have a village hall which is unlikely to be suitable to run a business out of, and if there is space it wouldn't let you use it for free.
I really appreciate the hard truths about running a business. I cant speak about what I've heard about entrepreneur culture in the U.K. but I remember a Japanese-American investor telling me about the difference in attitudes between running a business in both countries. In Japan, business culture is that you have to succeed at first try which creates a rise or fail mentality. In the US, investors actively seek people who have failed a previous business because they learn from their mistakes. It was one of those moments where I'm glad to have an American mentality of never giving up and learning from mistakes.
First of all, I really respect the investment you made in giving this cafe a go and the courage to talk about it after it closed. That said, my reaction from looking at the video is that the cafe looked a bit sterile. They say don't judge a book by its cover, but frankly life is too short and complicated not to! You really focused on serving a superior product with high standards, but the real commodity in that neighborhood probably would have been a warm and inviting atmosphere. When I see a coffee shop that's too plain and simple, it gives me the sense that it's transient. It may have worked out better for you in the city where a certain percentage of people want the best quality coffee with no frills, but I think the real product in your location would have been the third space.
Mate good job. As someone who had a small business that closed it hurt a bit to hear you had to get a “real” job afterwards - be proud of yourself, you had a real job in your venture!
I’d never heard of this channel, but this video showed up on my UA-cam feed, for some reason. Very helpful, great content, with smooth, efficient production. Thanks for posting.
I worked for a big coffee roaster who wanted to try a portable pop-up espresso/brew location in the country. It was fun, but we faced many of the issues you explained (dialling in espresso in an open space in the summer was the worst). Even with the big name/branding and access to top notch equipment, the spot only lasted one season before they relocated. There were locals who came by often, but it wasn't enough. Even the city folk vacationing there didn't help profits much. Good on you for trying. That looks like a huge challenge.
They say success has a hundred mothers and fathers, whereas failure is always an orphan. So many people on YT bragging about how great they are, very few did what you did. Thanks for sticking your neck out to share your experience.
My favorite coffee shop is a community based one where I can sit and drink, possibly meet with people. The clips you showed made your place look very small with no seating. I would probably not go. My loss really.
Hey Charlie, thanks for the video; it was really interesting to hear your reflections on your experience. I'm one of the Hilton residents (I came to one of your cupping sessions, which was brilliant) and I was disappointed when you moved on & then the shop subsequently closed. I really wish it had worked out better for both the shop and you personally! I am grateful, though, because drinking your espresso & learning more about coffee meant that when the shop did shut, I couldn't go back to drinking Nespresso at home & ended up taking the plunge and buying my first espresso machine. Still learning, but every now and then I pull a shot that I'm really pleased with. Will be awaiting the ledger!
Thank you so much for your comment. I appreciated everybody who came to the shop, and for what it's worth I really did enjoy making coffees for people. Like I said, I had no idea what I was getting myself into 😅 I'm glad you got an espresso machine and I hope my videos help you get great tasting shots!
I don't get people startng a coffee or a restaurant with a place for basically 4 people in it. How high would the prices have to be for such a small place to pay for the salaries, equipment and everything else? I do realise it seems to be a safer route, with smaller rent, but it's actually more risky in the long run and if you can't afford a bigger place it's probably best to not do this at all. It's not an easy business even if you have a lot of money.
Thank you everyone so much for the comments and the amazing response from this video. It wasn't an easy one to make, and I'm blown away by your support and positivity. I won't be doing another cafe anytime soon, but The Brew Ledger is already being printed and I hope this will help me make enough to keep this channel going and improve the quality and depth of my videos. Put your email in at the top of the page on homecafebycharlie.com if you want to get early access to the kickstarter for first editions. Thanks everyone!
Yes, you have to try a restart, especially now, where you got so many good comments and advices. I once knew a business man in Paris. He opened and closed 4 Restaurants before the 5th finally succeed. Now he is the most successful restaurant owner in Paris . Why? Because he learnt from mistakes. Never ever give up!!!
@@johnl2727 Well it is safer to stay in bed :). It's a bit like if everyone was a Billionaire, no one would want to do anything - especially not work in a coffee shop aye.
Seeing people coming from email jobs get their ass handed to them is a regular occurrence for coffee or food industry lifers. One of the only constants.
Don't kick yourself too hard Charlie - very few businesses kick on from foundation. All of the things you've described I went through with furniture. And still learning. Keep your chin up and as a new subscriber I'll be paying attention to your next chapters!
I'd say before even starting the business we need to look at the target audience. If we're looking at a very small town of people that just want a cozy place to have a hot drink and hang for a while, THAT is the promise you need to fulfill, not having the best coffee in the world. The branding and the decor need to make you feel cozy and make you want to come back. Also I'd say instead of ads you can do flyers around town, small events, like you said building community, but to do that you need to know what that community needs, wants, and values. Very interesting video I know it's not easy sharing these things!
Cafes should have windows. People like to look out or have in their mind the ability for others to look in and see them. It really doubles as a hub for activity. Your space just seems soooo small and closed in. Not hating just offering up what came to my mind. It takes a lot of guts to admit any wrong in public or on UA-cam. Good luck for you in your next endeavor!
The mobile coffee trucks always seem to make a killing. They literally just pull up to whatever crowded area, business area, festival, market, concert, street, beach, etc. and sell. Location not working? Pick up and go a mile down the road. I dunno.. I'm confused why I don't see more of them and why people don't adopt that business model more.
It all depends on your country's laws. In the UK where this video is you need a licence from the local council which will specify the location you can operate from if it's public land. You can't just setup at any location you fancy that particular day.
I'm glad my videos have helped you! We're all always learning. I have no illusions and don't know if I'll ever be confident enough to call myself an expert. But the espresso is definitely good 😎
Charlie, long time watcher here, I for one love your content. Anytime I get a notification that you have uploaded I drop everything and jump over to watch your newest video. I appreciate your in depth videos, insights and most of all your honesty. I think the turning point for me was your 078S review where you went against the grain and moreover personally helped me make a decision on my grinder via instagram chat. I still appreciate that interaction to this day. Signed up for the Brew Ledger, would be a wonderful pairing to my coffee setup. Cheers from AZ, USA, and keep kicking ass!
Alas listening for 5 mins made my heart sink. Starting on a shoestring is impossible. Location is paramount and cheap rent tells you all you need to know about footfall. A case of perfect is the enemy of good is all too true.90percent of people can't tell good coffe from Nescaf. It was not a caff it was a kiosk
Vanity project crashes into reality mountain. A village coffee shop could get away with serving freeze dried coffee, with filter coffee for those who want something more upmarket. I'm not joking.
Exactly, that's the way I would have approached it if I were starting a cafe in that location. I wouldn't even bother doing my own roasting to cut down electricity costs. Pre-roasted beans from a good location would be more than enough for a basic village cafe shop.
After a long journey I'm glad you kept your UA-cam channel. In my experience in South East Asia, cafe's are really not profitable and often owned by rich families who just want to be able to own and show it off to their friends. Mayber if I'm rich instead of buying a boat I would open a cafe and run it at a loss but I think for coffee enthusiasts, operating a small coffee popup in your own house/apartment for neighbors and friends is the way to go.
Depends on the market too. Need to be in a situation with high volume. Customers willing to buy roasted coffee and other streams of income and offerings at the cafe
@@gregorio5543High volume area means higher rental. So having a higher capital outlay is required for such venture. For hobbyists and if city council permits, I think the mobile cart concept like those they do in Thailand makes more sense.
People are focusing on the coffee but what confused me was the mention of “third places”, but not having anywhere to sit in the cafe? It’s hard to foster community unless there’s a place for community to be
Fantastic wisdom - as an ex barista who did happen to work at a failing start-up coffee shop, I can confirm that. Thank you for sharing with us. Oh, also the comment you made about being passionate about coffee for the sake of loving coffee, I resonate so much with! Coffee people will always find coffee people. ❤☕️
Just my opinion and I am in no way a coffee expert but in my humble experience as a customer - the best coffee shops are the ones that are like home where you can sit down and spend a while there fannying about. The bauhaus/post-modern/IKEA/minimalist design just doesn't work. I'd rather go into a coffee place with books, a wonky table, an old comfy couch and a nice welcoming vibe. A lot of coffee shops focus on the wrong thing - the coffee. It's like a pub, people don't actually like the taste of beer all that much they just like to go there for the atmosphere and experience. Just look at the speciality craft pubs, people don't really like them all that much. They lack character
You can't have coffee shops like that at all anymore. Today if you create the type of place you describe it would instantly be full of stinking criminal homeless people. And in most cities you can't keep or throw them out. What you describe exists only in your memory. It is only a story to tell your grandchildren.
Bro, risk is hard but it's the right move. I'm glad you opened this shop and learned a lot. Now you have some good wisdom to pass along! Thanks for making this video!
First of all, if you want me to keep coming back in a coffee shop or cafe, my number 1 criteria is a cozy environment or space. I couldn’t care less if the coffee is not that great. I can make my own exceptional coffee at home since I have wonderful coffee machines. However, being in a coffee shop is all about relaxing and trying to stay away from home for different reasons. If the coffee shop space is too boring and feels like I’m staring at a wall with few absolutely horrendous basic printed pictures, then that space is not worth spending my entire day with. I live in a small historic village with a population of 1500 more or less with 1 coffee shop and 1 bakery in our town square. Both the coffee shop and bakery did a great job of creating an interpretation to how the word COZY can be translated in an aesthetic theme without breaking the budget and without disconnecting the business space away from the character of the town. More than 2 decades and both the bakery and the coffee shop are still thriving. People keep on coming visiting everyday like it’s a routine because the space is so cozy even though the furnitures used are mostly vintage or old. People in small towns and villages are not particularly a fan of modern minimalist spaces provided the obvious demographics. It’s a cafe not a gym.
Wow. Thank you for this. I have no plans of opening a coffee shop nor want to start any business at all but just the courage and thoughtfulness of you sharing your experience is worth the time and the additional knowledge! Hope your book goes well!
I enjoyed hearing about your cafe. I can relate as I closed up my roasting company after 3 years. And hindsight is 20/20! I will say that listing the equipment as one of the top reasons (ahead of location ) for it not succeeding was surprising. I’ve see local shops here that crush it with used equipment. Not top of the line machines and put out quality drinks. Location, commitment, convenience and shared value is what drives those shops. Glad to see your passion is coming back. Good luck in next venture!
I think the equipment thing was more of a symptom of not having enough money. The cafe wasn't the nicest looking, so I'm sure a lot of people wouldn't give it a chance and just assume it's a crappy village coffee shop. If it was bright and had that design, nice machines etc, people would have given it more of a chance I think. Even so we just didn't have enough money to get to the break even point where we would have had enough regular customers
The people I respect the most are not those who have made it ‘big’ but are those individuals who share their knowledge about the journey so that others can be inspired to do something good and wonderful too. Kudos to you for sharing your journey, it’s a pity it didn’t work out but I have no doubt you have the insight to learn and become a richer person for it. That’s the single most important aspect of life. Best of luck in your new adventure, I have signed up.
Thank you, and yes I know I made a lot of mistakes but every new business will carry with it lessons from past mistakes. It's just a matter of time and continues curiosity and effort
I've always wondered about the economics of cafes. The amount of coffee you have to make, just for rent and energy, before staff wages and input costs, is so much I can't wrap my head around it. Thank you for sharing the details. Thanks algorithm for bringing me here. Wishing you all the best for you next endeavour.
@Lookup2WakeupI agree. Places like this need to be making coffees hand over fist to stay afloat. As has been repeated in the comments, most people who start a small coffee shop like this are already very wealthy.
As an independent cafe, as a rule there are two types who survive: 1)The ones with a wealthy owner who has no problem with losing money in it. 2)Money laundering fronts.
People don't want good coffee; they just want not bad coffee. Most people are used to drinking Keurig; simple as. If you are simply as good as that, you will be known as the place with delicious coffee. Fancy coffee is good, but sometimes people misunderstand that a lot of times, average coffee is almost better because it is safe and comforting for most people. The day might suck, you're a thousand miles away from home, nothings going and then you get a cup of coffee that tastes just like the one you drink everyday at home. It's like a warm blanket, a little shelter from the storm.
When i was in high school, a friend of mine's parents bought the local derelict gas station and set up a coffee shop. It was a success! The town loved it! It was a place that had events but also served breakfast food and always had adequate staffing during rush periods. They had several seating areas in and outside. Then they decided to host a pretty political event... In a town full of people with the opposite political beliefs. Their long list of customers dried up almost immediately. Within half a year they closed their business. I learned an extremely valuable lesson. Politics and small town business does not mix. Even now i see local businesses with campaign signs in their windows a d i think about how that candidate couldn't care less about that shop. But all the locals that dont like that candidate gladly drive past the shop to go to a more neutral one in the city next door. Its a shame.
I don't live in UK or your village. As I'm listening you said you walked through the cold british winter to open the cafe at 8 before people go to work. Personally, I get up at 7:15 am and arrive at McDonald's drive thru at 7:45 am. Get my 2 extra large black coffee and arrive at work at 8 am. My point is the coffee shop needs to be opened up way before 8 am.
I don't know how this video even got into my feed, I'm not even a coffee drinker (off from coffee for about 1.5 years now) but honesty of your work is through the roof and your struggles are very related to our other business we do, - post covid and energy crisis combined with low customer financial confidence in market now. I know when you put your best forward and it is simply not enough... It is extremely sad that you had to close down something where you put your all off your heart in....
After running businesses for 20 years ive learnt that the marketing has to revolve around providing potential customers with the ability to sell the idea of buying to themselves, this sounds obvious but new business owners are often overly concerned with their own perceptions of themselves and they often stand in the way of their own success with this self-criticism … its hard for business owners to believe that its not about you as an owner, its about clear product information, reviews and quality assurances with as many regular discounts and promotions as possible to allow people to establish certainty in their own minds. Also if you try to be too personal with customers it will make them feel uncomfortable overtime even though it feels like you are building relationships, so you often need to keep a professional distance from everyone so you keep your own perspectives clear, and they feel unobligated to keep coming back.
You haven't learned anything. All you did in this video was to complain, whine, and make excuses for why your business failed instead of taking full responsibility for not trying hard enough. You could have tried traditional marketing. Your business didn't fail because your coffee machine or interior wasn't good enough. No. It failed because you only focused on the coffee aspect of the coffee shop and didn't focus enough on the BUSINESS aspect of the coffee shop. Sorry to say it, but this is the truth.
Notice how when his business failed, and when times were 'hard,' his response was to give himself feel-better vacations. It isn't hard to read between the lines. He isn't trying to make a business, he is trying to legitimize an expensive obsession with social media fame and a coffee gear hobby.
@@sindre4252 You are one of the good ones. Unfortunately in this world, people default to accepting the point of view of whoever is speaking, barring of course instances where the speaker signals political opposition with the wrong buzzword; It is easier that way and in some sense they want that same courtesy extended to themselves. This is a feature of humans to create social harmony with those we surround ourselves with. The internet bypasses a healthy distrust of the outsider because to your brain they aren't one.
Wow this was super interesting and as somebody who has worked in a few cafes years ago and always kind of thought of maybe owning one some day, this really answered a lot of questions I had. Thank you so much for being so transparent and sharing your experience. I’ve always thought it must be a really tough business and like any service industry business there are so many variables like location which can make or break a business. I lived in NYC for over a decade and used to work in cafes there. I remember this one cafe that was slammed all day every day especially during rush hours. The coffee was completely mediocre at best and they really didn’t care too much about dialing in espresso or anything beyond basic coffee drinks. However they were located right next to one of the busiest stops on the L train in Brooklyn. Two streets away another cafe opened which had the best equipment money can buy along with a huge roaster in the back room. There coffee was excellent and I would go in there and think “damn…who paid for all of this?”. After getting to know the baristas I learned that there were 2-3 investors who opened the place. One year later they were closed suddenly overnight and just left a post on their IG to thank the customers who came in. Pretty brutal! The cafe down the street beside the train is still thriving and busier than ever the last time I checked.
@@homecafecharlie absolutely! Sounds like you learned some really valuable lessons that you will take with you on your next venture. Wishing you all the best!!
@@homecafecharlie do you still believe in a small coffee shop? i am the edge of open one. Better place than yours(bigger, open, seats, and nice view) , but not fancy hardware(a normal espresso machine and regular ovens and stuff like that). But looks like a lot of people here think this market is over saturated and there are not opportunities for new business.
@@andresdigi25I do think certain cities have an interest in nicer coffee over run of the mill, but realistically basically zero of your customers could name the make/model of a single commercial espresso machine. Location has to be the top factor (vibe and such is part of that, but also just convenient access and visibility, and not having too much competition nearby) It’s also very important to be serving the drinks people actually want, not just what you think is good
All i can only hear in this video is "it is because of this, it is because of that". I don't see any responsibility here. I saw a good comment. Who would come and buy coffee at 8 when your butts need to be at work at 8. You can open up at 6. Sell some bagel along with a strong but not sure tasting brew to people rushing to work. It is morning. I want something strong. Not excite my delicate tastebuds. In the afternoon, when we have their lunches or in the evening when people just want to relax, then maybe you can switch to a fancier roast.
Here's a clue: if you are thinking about starting a retail business, first you project the annual volume of sales thru the first 5 years. Then you project the average sale amount of each transaction to find out how many transactions it takes to reach that number. If your average transaction is under $10 or so, you will likely be out of business very quickly, and you will be working yourself and perhaps your family to death just to go out of business more slowly. By the way, you need to know your costs of doing business from top to bottom. Don't forget you have to pay rent, utilities, employees, and cost of goods sold, and taxes. Retail is brutally competitive, and you better be the only coffee shop for miles, and it better be good. To do $500,000, you have to sell 50,000 $10 sales in 300 or so days per year! No one would open that business with the 2 minutes of simple math above. Don't even get me started on franchises, at least you just go broke if it's your own; with a franchise, you can go bankrupt and lose everything. Lesson #1: Know what you are doing and understand the business before you invest in one. Selah
I am from New Zealand...we love our cafes and coffee. The ones that do well have great food. I bashed my way through a lot of the comments and found none discussed food quality. The busy cafes have the best food.
At the end of the day a coffee is a coffee, people queue up at petrol stations for low quality stuff. Very few have the time to hang around for the gourmet experience.
Thanks for being so candid. Failure can be so hard to talk about but helpful to learn from. Condolences on the loss of your dad - I’m sure he would be proud of you for giving it a go and being strong enough to own up to failure and learn from it. Keep at it! Success is often the product of many failures. Wishing you all the best! ❤
Thankyou for sharing. Cafes and restaurants are some of the toughest businesses. I also opened a cloud kitchen and restaurant in Bengaluru, but unfortunately, we had to close it as well. The lessons I learned were varied, but the biggest ones were that it can take a long time for word of mouth to spread, and it's an expensive and exhausting journey.
I worked at a local newspaper in an industrial park just off the main highway. An enterprising gentleman set up a specialty coffee stand in the lunch room cafeteria. Although there was a Starbucks nearby, one had to drive to get there. He had his loyal customer base built in. He issued punch tickets: buy 10 cups and the 11th is free. After paying the cafeteria rent to lease the space, he hired two friendly baristas to help out.
You focused on the art of making coffee. Starbucks focused on the vibes of a coffee shop. Restoring 2nd hand patio furniture and focusing on the garden might have been a cost-effective move. Still, most people never even tried to get their dream. Good luck
You live and learn, that said the number of people who open up a business without working a little in the business/ industry is amazing, there’s so much you can learn and mistakes you can avoid, all the best in the future
You’re absolutely right. Once over the honeymoon period and into the grind, thats where your nerves shine. Either it will be nerves of steel, or nerves of bubblegum. Not the best place in the world.
It's so obvious, isn't it? And none of his friends told him that this is a bad place to run a cafe? Actually it's not a cafe, it's a takeaway. Instead of not hurting his soul by tellimg him "search for another place" they let him run against a wall. Great friends!
That was the first thing I noticed as well. It just looked so SAD. Even the paper cups looked like something you would serve cheap drip coffee out of. I don't get how a man so brutally myopic about the details of coffee didn't even notice that his cafe and service was uninviting. Also, opening a coffee place at 8 AM? That's hilarious. Dude needed to open at 6 AM at the latest.
Clearly your coffee is top notch probably better than any cafe or even my home espresso. It’s not the coffee quality that most people in that town fare about. Gotta know your audience. However if you offered 1. Convenience (drive thru, delivery, etc) 2. Innovation (like crumbl cookies) 3. Community (collaborate with local groups, donate to a community group) 4. Atmosphere or 4. Loyalty (rewards program) then it would be different.
I have always had the dream of owning a coffee shop but ended up becoming a pharmacist instead, this video was a great insight into the difficulties that come with trying to grow a coffee shop and there are a lot of lessons to take away - good luck on your journey! Subscribed!
No offense but I think you needed a lot more business training. A lot of assumptions were made on your part. You seemed to focus a lot on the product, but not enough on the customer. No customer, no product. People saying they “want a coffee shop” is very vague. That might have meant that they wanted a place to sit down. Did you offer anything else besides coffee? Pastries? What were the ages of the villagers? What was the minimum amount of customers needed to break even? What time do they go to work? The ambiance of your coffee shop also did not give maximum cosiness. There were a lot of things you could have done to up the coziness and high quality feel on the cheap.
Sounds contradictory but I still felt inspired after watching this video. The fact you put into practice what a lot of coffee lovers would only briefly dream of and then give up, is very commendable. Despite how easily it could fail, I 100% would try opening a specialty coffee place if I had a load of excess cash (in many decades to come haha)
Dude very strong to make this video after this and gracefully showing this to the world! I think this is what people need to see and hear because often we just get the success stories. But success only comes from setting many many details right, and most of those are probably initially wrong. The realistic version is always the best example to learn from. With this you are doing many overly optimistic entrepreneurs a great service.
This is just a tragedy. Build it and they will come. That is the vibe. Its painful, honestly. You mention early in the video that you attempted this in Hilton, Cambridgeshire. The population is approximately 1100 people. And from what you've shown us you had a nearly unmarked, side room in a residential area. With a small budget you could have made a mobile set up, that you would have actually owned. Instead you rented the side room that required your time and money to renovate. Its agonising. With a mobile set up, literally a converted ice cream van, you could have gone to hipster beauty spots around Cambridgeshire and been selling to urbane millennial walkers and gen-Z ramblers who were venturing out of the city. If that had worked it could have been a beach-head for the operation you actually wanted in the longer term. Christ, this is just murder to see.
The villagers wanted a hangout place. Basic coffee, tea, juice and beer and a nice, homy atmosphere would be enough. You would never be rich, but the cafe would survive. But it great you have tried! You have learned a lot i hope. Good luck!
Failing at your first attempt is not unusual. People do not realize that a failure will benefit you much more than a success. Failure evokes humility and self examination, "what did I do wrong" The experience leaves you with a sharper eye. Today, you can see what this guy is doing wrong or what innovation this other guy has hit upon. You have developed knowledge about coffee that could applied to another medium. I had a mentor who pulled me out to view the shop from across the street. He said, "what wrong with the appearance of the shop or what's right and how can we make it more interesting. Be self critical and don't be afraid to change or be flexible.
Yes, the gentleman's comment is right.. Perfection kills. You were aspiring to the highest quality and your customers are ordinary people that don't care. they have other things on their mind. Expresso is a rare treat but it is not a fine wine.
People, give Charlie a break! In my hometown in Australia they line up every morning for “a hole in the wall” coffee shop! The one I go to opens at 5am for the tradies & workers, then the Mums after school drop-offs after 9… & he is closed by 1pm. But maybe we have a different coffee culture here. Charlie, I wish you well on your future endeavours. You know what’s more important than any of things you mentioned? The determination to succeed at doing something your passionate about. And you are certainly passionate about coffee. Good luck!
![Businesses that Always Fail? 7 Businesses with Shockingly High Failure Rates [Backed by Data]](http://i.ytimg.com/vi/WTDYuRVZDbo/mqdefault.jpg)
![Businesses that Always Fail? 7 Businesses with Shockingly High Failure Rates [Backed by Data]](/img/tr.png)
Restaurant guy here with more than 10 years experience, including years working with startups. I have to chime in about your line where you said that everything has to be of the highest quality and if the mistake is made it has to be remade.
This line of thinking destroys startups in the food industry. It is simply not true. I get it that we all are lovers of the art, but you have to understand that quality is a never-ending scale that always increases price. Good enough is good enough. The most popular restaurants and drink shops in the world, are absolutely known for everything but their quality,
The average customer/consumer does not appreciate your art and would much rather have something in their hand now then something that you define as perfect a little bit later.
I agree, seen piss poor quality in places people rave about endlessly. If a place had a reputation, they can get away with anything.
Yeah but you’re missing the point. The market he was targeting and his passion was quality coffee. If he wanted to churn out dross he could have done, but why would he? He isn’t interested in doing that.
@@jonnydoeson5562 what market though? The location is in the middle of nowhere. With so few people around, there's no sub markets to pick and choose from
@@jonnydoeson5562 there's a difference between serving drivil and having a 100% quality rating. If you want to serve food with zero mistakes then you need to charge 100 dollars a plate. In the real world cooks and baristas make mistakes constantly and still hand that product to the customer.
There's quality issues that are unacceptable, don't get me wrong. I'm a meat guy in the industry so I know that if I give someone a cut of beef that's all gristle they aren't gonna come back. But if they order a steak medium rare and I give them one that's medium with a mediocre char, that's fine. I'm not happy with it, but it's a 15 dollar steak, not a 75 dollar steak.
I live in an area with hundreds of coffee shops around me and the amount of times I go in for a fancy drink and the guy in front of me in line gets a drip coffee black no sugar always blows my mind. People most of the time just want something in their hand
@@doobledoo I get it, you need to make money and the bulk of the money comes from people who don’t care about the quality of the product that much. The thing is, I think this guy focussed solely on his own interest in quality coffee and forgot to appeal to the common man with junk which would actually bring money in and ultimately support what he wanted to do.
Tbh atmosphere of the space is probably more important than the coffee except for coffee snobs. Paper flyers in in mailboxes is probably best marketing in a small town
The village still wanted a cafe! A cafe has life, music, cozy seats, interesting decor, warm friendly hosts, a cabinet full of sweet and savory foods, tea, juice, soda, a freezer of ice creams and coffee. You gave them a bespoke coffee tasting pickup office.
Yeah, most people really do not go to coffees to find the best tasting coffee. They go there to enjoy a bit of time with friends in a pleasant environment. Coffee just need to be not terrible.
Exactly, it seems that all this project was not really thought of and build up very naively with poor planning and no actual strategy or product market fit..
@@Lost4llenI don’t think much market research or even common sense went into this. Seemed like a mad, naive bet.
I agree. He is so focused on the coffee. Most (99%) of people will not notice small differences. I'm preparing a Bondi coffee with a pressurized filter for my wife and she couldn't be happier. She likes it more than from the cafés.
It looked like failed coffee shop from the start.
It takes a lot of courage revisiting and reflecting on a place of disappointment. As someone who wants to run a cafe, this video is really appreciated.
are you independently wealthy?
@@tanelpolts7257 Not sure I would call myself wealthy, at least not wealthy enough to be able to throw money at a cafe and not care about how it goes.
I would love to start a cafe, and it would be a huge risk financially. I suppose that's why this video was impactful and helpful for me.
@@aquathamer707 why would the wealthy open up a cafe and not care about how it goes? If they do it it means they do care.
And if it goes bust, they are not going to lose their shirt over it. An average person opening a cafe is insane. If you think the minute details matter in making it work, you're delusional. Location, location, location. And lotsa money.
"you're so stunning and brave for talking"
It used to be the case that men had to sacrifice their lives to be called courageous. Now, Soylets have dropped the standard so low that you can be stunning and brave for just admitting you made a mistake lol. Of course you look like Seth Rogan
not only cafe, I own a hobby shop and... is similar to this. Great video.
''I can tell from looking at a coffee shop (or photos of it) if their coffee is good'' ... so I made my place look quite terrible because I couldn't afford better. Great plan.
Thought this was hilarious. Quick to judge but with no self reflection
yeah showing an empty coffee shop on google maps is not a good move. You have to make people think there is something happening and that others enjoy it already
The inside of his cafe looked terrible, his setup could just be a street stand. He also wanted to do way to much high class stuff if he wanted to capture the whole village.
so true xD
Opening a cafe in a 1500 persons village is economical suicide
That kind of cafe, yes. If you had a selection of good food and baked goods to go and just a simple coffee pod machine he might have had a chance.
Yeah unless you already own the building and run it just yourself
Yeah bad idea. Even in central London, it's a coin flip
@@tarazieminek1947 If 5% of the town shopped there every day, that would be 75 people,
might cover the rent with that, but not earn a profit in the end.
Getting 5% of the town daily is unrealistic to begin with,
so business was guaranteed to fail.
It seemed that the only reason for opening there was that his sister lived in town. The space does not appear inviting so he already had two strikes.
I know a country town like yours. There's a bog ordinary "cafe" (which is also a chippy/burger joint) which does more trade than any other food business in town.
At the end of the day, people want an okay coffee, for an okay price, in a friendly place. They don't give a shit if it's single origin and artisan roasted. They don't want or need "classes". They want a warm building, efficient service, and a decent price.
You basically pitched a city concept (badly), to an entirely different crowd. I also think the brother in law roaster made it a vanity project.
But that one guy that came a few times really liked the snobby stuff! /s
You sound like a passionate car engineer trying to sell the best modded Mazda Miata in the world to my mom.
🎯💯
world just needs another coffee shop.
in the village.
😂
Pretty much! 🤣
love the comment!
I’m not sure if it would have made a difference, but the local cafe where I live opens at 5:30 AM. I believe you said yours opened at 8 AM. A lot of people are already at work or on their way to work by then.
Yep, especially in a small town that's more of a bedroom community. If people have to be in the office by 8 or 9 and you're trying to catch them before their commute you'll need to be open way earlier than 8.
@@JohnSmith-dp2jdI doubt that would have made a difference lol
That hole in the wall was barren and uninviting, I would've preferred to make coffee in my kitchen pour in a thermo and take it with me...
I worked in different coffee shops for many years, our busiest time was always between 6am-9am.
If you are trying to sell a cup of coffee you.better be open by 5 AM to catch your customers otherwise it's a lost cause,you could open.at 4.and close at 8 and be better off than opening at 8 am
That didnt look like a coffee shop, it looked like a basement set up
The appeal of the coffee shop isn't really the coffee but the ability to drink coffee in a "living room" away from your living room. Edit: My condolences.
You have a point, but shit coffee deters customers, so, like every business, it's a delicate balancing act
Heya! Cafe owner here, coming to the end of my first year. 9 months of expenses in the bank makes a start up entirely unfeasible for most people. I opened my cafe (the wandering goblin, in Nottingham) with zero money left when the doors opened officially. The secret isn't online marketing, it's putting the work in the build community even before you open the doors. I spent months running pop-ups while getting everything organised, building a following and offering consistency before the cafe's location was even finalised.
You can either invest money OR time. As someone who's been in coffee 7 years, money wasn't an option because this industry doesn't pay. Your community will carry you through, if you put the time into building it. I hate the industry idea that everything has to be expensive. The idea you need an expensive machine and expensive grinder is also a load of crap. It's a matter of skill. I run my bar off of an old school lever machine I got second hand, and run everything through the same grinder - but with a thoughtful approach it's absolutely feasible to still keep everything dialed and tasting great. The mentality of "oh but if I had (x) machine I could do better" is super unconstructive and stops you focusing on what you can change in the moment. You need to work with what you have, and do the best within your means. A cheap machine isn't an excuse, and an expensive machine should be a low priority aspiration unless you're in it for the hobby. I'm really tired of running into this gearhead mentality.
Obviously my cafe is based in a city, so it's a little different - but the base premise is the same I think. I do agree that everything should be of equivalent quality - I think your cheapest thing should be as good as your most expensive. A bad shot should never be served, etc. An espresso shot in most cafes costs £0.30 (assuming you have half decent coffee on house). That's a worthwhile loss to remake if the shot doesn't pull right. 30p to guarantee a great experience is a no brainer.
I'm sorry to hear about the failure of your shop, I'm sure it was absolutely crushing. Having been doing nearly 100 hour weeks for the entire last year, I understand how difficult it is.
Yeah, what are the parameters of a good espresso?
- the espresso
- the pressure
- the temperature
-the grind particle size
- the filter
Anything else?
@@frankfahrenheit9537 does it taste good?
you nailed it, pop up stores and build a following, i drank at starbucks twice a day for 7-8 years as an expat here in Asia, about two years ago a new type of coffee trend emerged in vietnam, philippines, indonesia etc and since then i have NEVER stepped foot in a starbucks again and im at the new coffee shop twice a day and they did the same thing you said.
Love this comment because it’s completely true and exactly what I was thinking.
I like how you are a coffee autist who tried to sell coffee to other coffee autists in a village of 100 houses which probably had 1 other coffee autist living there at most. I am fascinated by your courage and trust in this business idea. I think in a hip area of a city it would have worked out
🤭🤭🤭 ouch...I love the grumpy curmudgeon aura you are giving.
I lived near a logging town with a few thousand people, someone opened a wine and cheese shop there, same results. Loggers and mill workers just aren’t into fancy wine and cheese, who’d a thunk it?
“a hip area of the city” would have brought unsustainable rent prices, especially for a business with lower amounts of capital already
the thing is though, the general public are not coffee snobs, they just want a half decent coffee and a nice place to sit and chat. They overcomplicated a very simple concept and it didn't work out.
Opening a coffee shop at 8am! 😂 Didn’t want any working class buying a cup of coffee from him, did he?
@@robertwarner-ev7wp exactly! Very bad idea.
@@robertwarner-ev7wpnone of the people in that village were working, come on now
I get it that you always want to serve 100% quality all the time. Like dialing in your recipe 3x a day due to temp changes and humidity. But always remember that sustainability is the key to success business. I think 90-95% is good enough for a sustainable business
Was about to come say the same thing - dialing in multiple times per day is crazy
In manufacturing we say you need to be churning out like 70-80% standard assembly line products and the rest you can use to do bespoke stuff. Only doing bespoke stuff would cause your company to fail in no time.
if that's what he was doing... facepalm... that's a well deserved failure... Just sell stupid coffee, pocket the margin and go on. Don't be the king of the hill, the best coffee on the planet. Nobody cares enough and goes "Oh my god, how did I live without this coffee all my life before!"...
@@DanOneOne yeah but he wanted to because he’s passionate about it. That’s what the discourse is about. He needs to make it work while keeping his eyes on the prize. It’s not that difficult tbh. I’ve seen it done in several places where I live.
@@jonnydoeson5562 well, I was passionate also and I was beaten up just like he was. This beating is our lessons to not live in a fairytale. But also this: People need something and when they need it, they appreciate it and pay for it. If everybody just does what they are passionate about, then who will do things that people need?... Look at all the stuff we consume and don't even think about. People on the other side just produce it. They don't parade their passion, most don't even like their jobs, but they produce it because people pay. So the rule is simple: They don't pay you - you don't do it. There is no other way. You can be passionate when you will be a millionaire.
This is a brutal watch. I totally understand why your experience was difficult to talk about, but if it's any consolation, your cautionary tale was a fascinating watch. I'm sure it's no consolation at all.
I look back and all I see is a fantastic learning opportunity. I didn't do enough due diligence and next time I do a cafe or roastery I will be in a much better position to do it right.
@@homecafecharlie Personally I find the whole fuss and expense of coffee to be totally baffling. I'd opt for a quick cheap white Nescafe any day (apologies to your sensitivities). Before opening in a small town you need to work out whether 1% of people are like me or 90% so you can make sure you have enough footfall. Your passion is brilliant but it's a business. Very best of luck if you try again.
@@robdw42Amazing that this video popped up in your feed then! For me it’s spot on. Coffee lover, interested in small business and startup stories. The Algorithm has its mysteries …
@@homecafecharlie I think you learned a lot of the wrong lessons. Read the other comments here.
@@robdw42 I agree with you 100%.
The absolute faff around it baffles me completely!
You started a coffee shop business in a village and opened at 8am. Did you do any research regarding demand? Did you produce a business plan? Did you have any business training prior to starting? A good business plan forces you to look at your expected income and expenditure realistically. Most businesses make a loss in the first year, break even in the second year and only reach profit in the third year. 80% of small businesses fail in the first year (in the UK). Sometimes a good business plan will show you that this business is not viable and save you from future debt, bankruptcy and regret. Too many people start businesses based on personal feelings and not facts.
Great comment, deserves more upvotes!
The place really looks shitty, no seats, so just takeaway coffee.
High quality coffee and takeaway coffe is a contradiction in itself,
how can you enjoy top coffee while walking to the smelly train station?
@@frankfahrenheit9537and if you’re takeaway only, a huge part of your clientele will be pre-work commuters, which by opening so late you’ll completely miss…
@@frankfahrenheit9537 Great point about no seats. Even one of the 5-star reviews he showed in the video mentioned that there was only a "single table" to sit at. That's not enough to provide the cafe experience that he said that town was looking for.
The overly expensive, specialty factor inputs and very little custom is going to kill the business record time... its heartbreaking.
I'm in no way going to run the gent in the video down because he's clearly passionate about what he was doing but you are totaly correct at the microeconomic level.
This may have worked in an expensive London Borough where disposable income and leisure time of agents around the cafe may have helped.
Perfection is a showstopper, isn't it
Never let perfection be the enemy of good.
By 4 minutes in we've learned a small village is not the place for 3 Michelin star coffee roaster. Under capitalization gets one the wrong space, wrong equipment, and wrong aesthetic: especially for a 3 star Michelin coffee roaster.
Bare minimum to open a café is probably in the 50K region, and that's with the owner working all the time. And a proper café, easily 100K. Otherwise, you're just a kid selling lemon aid on the sidewalk.
Got any grapes
I prepare my own coffee at home, I don't drink coffee from take away coffee shops unless I am on vacation. I do however go to cafes to meet friends and socialize, and I don't care so much about the quality of coffee as long as it's a friendly and cozy ambience.
Lets be honest most coffee from coffee shops is utter sh*te. I agree with you 100%.
Which this cafe was not 3:36 LMAO
I think the most underestimated aspect of business is pure presentation or design. The smallest detail matters, including perhaps paying the additional $0.10 per paper cup to get modern cups versus unsightly patterned cups. Great products are great, but humans naturally devalue even a functional product if it’s not accompanied by good aesthetics.
This level of detail MAY be important in a more competitive market, not sure it applies to a coffee shop in a small village. Just give them a better warm drink than they can make at home and a pleasant place to drink it.
To be honest, the ambience seems to be the place where they really fell down. Nothing about the space makes me wanna go spend time there. My favourite café (which also has incredible coffee) has a very similar green and wood vibe, but it’s bright and airy and filled with wonderful music, cool artwork, massive plants, very nice dishware and paper cups. It’s a place where you can spend hours hanging out and just feel cool existing. This reminds me more of a shoebox condo you’d find downtown.
Correct. Much anticipation every year concerning the design of Starbuck's Holiday cups.
No, 95% of your customers don't care won't even notice. What gets people in the door is marketing and advertising in order to run an effective campaign you have to be doing it for 6 to 9 months to confirm everyone and their brother knows and has a good shot to come in.
@@InvestmentJoy But getting a customer in the door doesn’t mean they’ll want to come back. If you don’t create a compelling atmosphere where people want to spend time, you’ll never convert those people into loyal, regular customers. That’s pretty crucial for a small business in an equally small town.
There are lots of people that will happily tell you about getting rich quick schemes but there's hardly any that tell the real story that business is hard and expensive and needs a whole lot of luck.
Replace coffee with magic tricks, juggling equipment and kites and my experience is exactly the same as yours.
I have no idea why UA-cam recommended me to you but I'm glad it did. Tremendous video. Best of luck with your future endeavours.
You have to start on the demand these days. Once the demand is locked down you can start meeting it.
Another thing is that if you love the subject of your business, you're easily distracted by it and not focused on the business itself.
A business is about making money, a hobby is about your interest in the subject and it's really hard to seperate those two if the subject was your hobby.
Simply put, you have to limit yourself to proven strategies and methodologies even if you're knowledgable and motivated about the subject.
Well said!
Excellent comment 💯👍🏾
I've owned and operated high street retail cafes, food service and catering businesses for close on 40 years. It's a brutal business that chews up and spits out even experienced operators, so don't be to disheartened about your first venture not working. In that village, with such a low population, not even the most experienced operator in the world could have made it work. No matter the countless other issues. Thanks for posting a well made and informative video. It's very brave to show your mistakes for all to see.
do you have any advice for people that want to open coffee places?
I learned more from the comment section than from the video itself...!!
10/10 for being brave enough for making a video explaining the issues of how this business failed. Budding entrepreneurs can learn a lot more from what went wrong stories, than success stories.
This is my cautionary tale:
I had a bakery/ coffee shop/ cafe in Dorset that I bought as a going concern, increased turnover to about £220k pa, then sold it 3 years later. The coffee machine cost £3000, the filter cost about £100 and needed replacing every 6 months. Rent was about £32000 pa (prime spot on a square/ High Street position), rates £10500, 2 full time, 5 part-time staff. But it is exhausting, opening 6/7 days a week, constant staff issues, maintenance costs on ovens, display chillers, air-con, dishwasher machine etc., staff stealing from the tills, managers forgetting to lock up properly or leaving ovens on, dealing with the 'sharks' that prey on new and start-up businesses (like firms that claim to reduce your business rates). Also, commercial leases have clauses that continue the liability for rent payments, even if you close the business or sell it on to somebody else who then stops paying the rent (YOU ARE STILL LIABLE FOR THE RENT IN MOST LEASES).
Great insight, thanks 😊
Unfortunately, it seems like the cafe was too much about coffee and not enough about hospitality, hence no culture/third space element to offer the community. That said, most people leaving rude comments have never tried to launch anything themselves. There has to be another path for you with your marketing experience and expetise in coffee.
A village doesn't want a speciality coffee in/out place. They want a caffee kind of place with normal coffee (italian), sweets, easy music. You tried to bring a hypster city coffee into a village and they said no. People that came and tried different beans... They just tried to find something they liked and didn't at the end. I stopped counting how many "speciality" coffee places opened and closed in my country. But classics stay. Be an artist in your free time but in business give people what they really want and what they are used to. Running a business is hard. Still kudos for trying and don't stop dreaming.
Coffee snobs are making their own coffee at home. Your little village just wanted a cozy place to sit and chat with their friends while drinking something that resembled coffee. If your coffee is good, people would pick some up on their way to work at 6am, with a scone or cookie. You opened a shop that reflected your lifestyle and wants, not the customers. I fear your book will go the same way.
Yep. Doesn’t seem like a go getter either. Plan your work and work your plan.
Spot on
I worked as a coffee machine engineerfor 30 years in oxfordshire. Also installing equipment. The overheads are insane. I would say, 50% of machines I installed, I was back there, collecting them when the business failed. There was one, in at Clements, that went under, customers were queuing up outsid to get served. But the landlord, seeing this kept putting the rent up, and bust their business. You need to open early, to sell beacon, egg, sausage sandwiches to folk going to work.
Landlords raising the rent on coffeeshops is the no. 1 case study in the book Freakonomics. Worth reading.
i choose the cafe because of it looks most of the time, I'm not s coffee snob and I just want to have a nice place to take my friends/girlfriend with me. Your caffee shop from photos looked soulless, kinda like a corporate meeting room
I still can't talk about my failed coffeehouse/bakery/cafe. I put my whole heart, time, and savings/retirement into it - just heartbreaking. Thanks for sharing your journey...
You can always try again later. You won't be starting from zero. You will have past experience and more knowledge. ....pfff just take a break to regulate emotions and try again.
@@lucy8584💯
@@lucy8584true but the learned experience is likely “don’t try it again”. Making a coffee shop/bakery profitable is damned hard.
With respect, that’s a very defeatist attitude. What in your opinion caused it to fail?
@@jonnydoeson5562 a defeatist attitude? Yeah, keep sellling sand in the Sahara, optimist.
thx for sharing. sounds like a vanity project more than a business. If "the town" wanted a coffee shop, then maybe the townhall could have given you a nice space where you could have at least 2 tables and 4 seats. The space you operated in looked terrible. There's no mention of foot traffic analysis. Starbucks doesn't open locations randomly. I like the coffee tasting classes idea a lot, but i'm not even sure how you could fit the people in that space, must have been very awkward. And you folded almost immediately after opening up. And if you needed a space heater to keep your hands warm, i suspect the space was welcoming like a strain station platform.
I'm sorry it failed, but that feels pretty unsurprising. I assume you didnt lose too much though, because you guys were the employees, the gear can be resold, the rent was cheap, and you had almost zero fitout.
I agree the space was a head scratcher. I've seen small coffee spaces work in cities with a lot of foot traffic but I don't see how it could work in a small town. Why would the town provide free space for a private business? It's possible they would rent a space for a favorable fixed rent and share of income?
@@sophocles1198 There's different ways to skin a cat. Cities almost always have real estate that's underused / poorly used, or unused, so they can loan it, rent it, income share it. What's clear is that a tiny, poorly heated, poorly located, poorly fitted location with limited foot fall where you can't sit down doesn't sound like a winning proposition.
This is England. The parish council will have a village hall which is unlikely to be suitable to run a business out of, and if there is space it wouldn't let you use it for free.
The reason why it failed is the interior design. It looks like a white wall apartment.
Exactly
I really appreciate the hard truths about running a business. I cant speak about what I've heard about entrepreneur culture in the U.K. but I remember a Japanese-American investor telling me about the difference in attitudes between running a business in both countries. In Japan, business culture is that you have to succeed at first try which creates a rise or fail mentality. In the US, investors actively seek people who have failed a previous business because they learn from their mistakes. It was one of those moments where I'm glad to have an American mentality of never giving up and learning from mistakes.
First of all, I really respect the investment you made in giving this cafe a go and the courage to talk about it after it closed. That said, my reaction from looking at the video is that the cafe looked a bit sterile. They say don't judge a book by its cover, but frankly life is too short and complicated not to! You really focused on serving a superior product with high standards, but the real commodity in that neighborhood probably would have been a warm and inviting atmosphere. When I see a coffee shop that's too plain and simple, it gives me the sense that it's transient. It may have worked out better for you in the city where a certain percentage of people want the best quality coffee with no frills, but I think the real product in your location would have been the third space.
You are courageous to talk about your experience. I still can't talk about mine and it was 7 years ago. Wishing you all the best.
Mate good job. As someone who had a small business that closed it hurt a bit to hear you had to get a “real” job afterwards - be proud of yourself, you had a real job in your venture!
I’d never heard of this channel, but this video showed up on my UA-cam feed, for some reason. Very helpful, great content, with smooth, efficient production. Thanks for posting.
Haha yes algo got me too
Me too
Same
Spam comment
I was talking about coffee yesterday and today WokeTube suggested this vid 🎉🎉🎉
I worked for a big coffee roaster who wanted to try a portable pop-up espresso/brew location in the country. It was fun, but we faced many of the issues you explained (dialling in espresso in an open space in the summer was the worst). Even with the big name/branding and access to top notch equipment, the spot only lasted one season before they relocated. There were locals who came by often, but it wasn't enough. Even the city folk vacationing there didn't help profits much.
Good on you for trying. That looks like a huge challenge.
They say success has a hundred mothers and fathers, whereas failure is always an orphan. So many people on YT bragging about how great they are, very few did what you did.
Thanks for sticking your neck out to share your experience.
My favorite coffee shop is a community based one where I can sit and drink, possibly meet with people. The clips you showed made your place look very small with no seating. I would probably not go. My loss really.
Hey Charlie, thanks for the video; it was really interesting to hear your reflections on your experience. I'm one of the Hilton residents (I came to one of your cupping sessions, which was brilliant) and I was disappointed when you moved on & then the shop subsequently closed. I really wish it had worked out better for both the shop and you personally! I am grateful, though, because drinking your espresso & learning more about coffee meant that when the shop did shut, I couldn't go back to drinking Nespresso at home & ended up taking the plunge and buying my first espresso machine. Still learning, but every now and then I pull a shot that I'm really pleased with. Will be awaiting the ledger!
Thank you so much for your comment. I appreciated everybody who came to the shop, and for what it's worth I really did enjoy making coffees for people. Like I said, I had no idea what I was getting myself into 😅 I'm glad you got an espresso machine and I hope my videos help you get great tasting shots!
I don't get people startng a coffee or a restaurant with a place for basically 4 people in it. How high would the prices have to be for such a small place to pay for the salaries, equipment and everything else? I do realise it seems to be a safer route, with smaller rent, but it's actually more risky in the long run and if you can't afford a bigger place it's probably best to not do this at all. It's not an easy business even if you have a lot of money.
Grab and go can work, but not at this location.
Thank you everyone so much for the comments and the amazing response from this video. It wasn't an easy one to make, and I'm blown away by your support and positivity.
I won't be doing another cafe anytime soon, but The Brew Ledger is already being printed and I hope this will help me make enough to keep this channel going and improve the quality and depth of my videos. Put your email in at the top of the page on homecafebycharlie.com if you want to get early access to the kickstarter for first editions. Thanks everyone!
Pretty soon no one will be making anything anymore. They will be looking for hits on UA-cam.
Yes, you have to try a restart, especially now, where you got so many good comments and advices. I once knew a business man in Paris. He opened and closed 4 Restaurants before the 5th finally succeed. Now he is the most successful restaurant owner in Paris . Why? Because he learnt from mistakes. Never ever give up!!!
@@johnl2727 Well it is safer to stay in bed :). It's a bit like if everyone was a Billionaire, no one would want to do anything - especially not work in a coffee shop aye.
If I ever get an espresso machine that makes decent coffee, I would be a good customer for the brew ledger. Good luck!
Lots of useful lessons. :D
Seeing people coming from email jobs get their ass handed to them is a regular occurrence for coffee or food industry lifers. One of the only constants.
In the US, a huge number of workers are hard at work before 8 AM. Heck, I think that's when Starbucks workers take their first break.
they have different work hours over there, cheers!
Don't kick yourself too hard Charlie - very few businesses kick on from foundation. All of the things you've described I went through with furniture. And still learning. Keep your chin up and as a new subscriber I'll be paying attention to your next chapters!
I'd say before even starting the business we need to look at the target audience. If we're looking at a very small town of people that just want a cozy place to have a hot drink and hang for a while, THAT is the promise you need to fulfill, not having the best coffee in the world. The branding and the decor need to make you feel cozy and make you want to come back. Also I'd say instead of ads you can do flyers around town, small events, like you said building community, but to do that you need to know what that community needs, wants, and values. Very interesting video I know it's not easy sharing these things!
Cafes should have windows. People like to look out or have in their mind the ability for others to look in and see them. It really doubles as a hub for activity. Your space just seems soooo small and closed in.
Not hating just offering up what came to my mind.
It takes a lot of guts to admit any wrong in public or on UA-cam.
Good luck for you in your next endeavor!
The mobile coffee trucks always seem to make a killing. They literally just pull up to whatever crowded area, business area, festival, market, concert, street, beach, etc. and sell. Location not working? Pick up and go a mile down the road. I dunno.. I'm confused why I don't see more of them and why people don't adopt that business model more.
It all depends on your country's laws. In the UK where this video is you need a licence from the local council which will specify the location you can operate from if it's public land. You can't just setup at any location you fancy that particular day.
That looks like the saddest coffee shop...
They gave it a try, you have to give them credit for that.
You’ve had a huge impact on me during my coffee journey. Happy to have you back, and showing that infamous British resilience.
I'm glad my videos have helped you! We're all always learning. I have no illusions and don't know if I'll ever be confident enough to call myself an expert. But the espresso is definitely good 😎
Charlie, long time watcher here, I for one love your content. Anytime I get a notification that you have uploaded I drop everything and jump over to watch your newest video.
I appreciate your in depth videos, insights and most of all your honesty. I think the turning point for me was your 078S review where you went against the grain and moreover personally helped me make a decision on my grinder via instagram chat. I still appreciate that interaction to this day.
Signed up for the Brew Ledger, would be a wonderful pairing to my coffee setup. Cheers from AZ, USA, and keep kicking ass!
Thank you so much!
Alas listening for 5 mins made my heart sink. Starting on a shoestring is impossible. Location is paramount and cheap rent tells you all you need to know about footfall. A case of perfect is the enemy of good is all too true.90percent of people can't tell good coffe from Nescaf. It was not a caff it was a kiosk
Vanity project crashes into reality mountain. A village coffee shop could get away with serving freeze dried coffee, with filter coffee for those who want something more upmarket. I'm not joking.
Crashes into reality mountain 😂.
Exactly, that's the way I would have approached it if I were starting a cafe in that location. I wouldn't even bother doing my own roasting to cut down electricity costs. Pre-roasted beans from a good location would be more than enough for a basic village cafe shop.
After a long journey I'm glad you kept your UA-cam channel. In my experience in South East Asia, cafe's are really not profitable and often owned by rich families who just want to be able to own and show it off to their friends. Mayber if I'm rich instead of buying a boat I would open a cafe and run it at a loss but I think for coffee enthusiasts, operating a small coffee popup in your own house/apartment for neighbors and friends is the way to go.
Why did you put an apostrophe in "cafe's"? That makes no sense.
@@Fitzrovialitter autocorrect 🤦
Depends on the market too. Need to be in a situation with high volume. Customers willing to buy roasted coffee and other streams of income and offerings at the cafe
It's a tough business but it can certainly be profitable. Just not the way we did this one 😅
@@gregorio5543High volume area means higher rental. So having a higher capital outlay is required for such venture. For hobbyists and if city council permits, I think the mobile cart concept like those they do in Thailand makes more sense.
I think the major 2 issues was opening in a village, and minimal seating and space
People are focusing on the coffee but what confused me was the mention of “third places”, but not having anywhere to sit in the cafe? It’s hard to foster community unless there’s a place for community to be
Fantastic wisdom - as an ex barista who did happen to work at a failing start-up coffee shop, I can confirm that. Thank you for sharing with us. Oh, also the comment you made about being passionate about coffee for the sake of loving coffee, I resonate so much with! Coffee people will always find coffee people. ❤☕️
Just my opinion and I am in no way a coffee expert but in my humble experience as a customer - the best coffee shops are the ones that are like home where you can sit down and spend a while there fannying about. The bauhaus/post-modern/IKEA/minimalist design just doesn't work. I'd rather go into a coffee place with books, a wonky table, an old comfy couch and a nice welcoming vibe. A lot of coffee shops focus on the wrong thing - the coffee. It's like a pub, people don't actually like the taste of beer all that much they just like to go there for the atmosphere and experience. Just look at the speciality craft pubs, people don't really like them all that much. They lack character
I really miss the coffee shops like that, and the book stores right by them.
You can't have coffee shops like that at all anymore. Today if you create the type of place you describe it would instantly be full of stinking criminal homeless people. And in most cities you can't keep or throw them out. What you describe exists only in your memory. It is only a story to tell your grandchildren.
Then you have the laptops hogs who sip 1 coffee and use the space for the full day
@@bman3483 there still are some, in small and homogeneous society
Why on earth have you ordered a few hundreds books?! Order 10, sell those, order another 10.
Bro, risk is hard but it's the right move. I'm glad you opened this shop and learned a lot. Now you have some good wisdom to pass along! Thanks for making this video!
First of all, if you want me to keep coming back in a coffee shop or cafe, my number 1 criteria is a cozy environment or space. I couldn’t care less if the coffee is not that great. I can make my own exceptional coffee at home since I have wonderful coffee machines. However, being in a coffee shop is all about relaxing and trying to stay away from home for different reasons. If the coffee shop space is too boring and feels like I’m staring at a wall with few absolutely horrendous basic printed pictures, then that space is not worth spending my entire day with. I live in a small historic village with a population of 1500 more or less with 1 coffee shop and 1 bakery in our town square. Both the coffee shop and bakery did a great job of creating an interpretation to how the word COZY can be translated in an aesthetic theme without breaking the budget and without disconnecting the business space away from the character of the town. More than 2 decades and both the bakery and the coffee shop are still thriving. People keep on coming visiting everyday like it’s a routine because the space is so cozy even though the furnitures used are mostly vintage or old. People in small towns and villages are not particularly a fan of modern minimalist spaces provided the obvious demographics. It’s a cafe not a gym.
Wow. Thank you for this. I have no plans of opening a coffee shop nor want to start any business at all but just the courage and thoughtfulness of you sharing your experience is worth the time and the additional knowledge! Hope your book goes well!
I enjoyed hearing about your cafe. I can relate as I closed up my roasting company after 3 years. And hindsight is 20/20!
I will say that listing the equipment as one of the top reasons (ahead of location ) for it not succeeding was surprising.
I’ve see local shops here that crush it with used equipment. Not top of the line machines and put out quality drinks.
Location, commitment, convenience and shared value is what drives those shops.
Glad to see your passion is coming back. Good luck in next venture!
I think the equipment thing was more of a symptom of not having enough money. The cafe wasn't the nicest looking, so I'm sure a lot of people wouldn't give it a chance and just assume it's a crappy village coffee shop. If it was bright and had that design, nice machines etc, people would have given it more of a chance I think. Even so we just didn't have enough money to get to the break even point where we would have had enough regular customers
The people I respect the most are not those who have made it ‘big’ but are those individuals who share their knowledge about the journey so that others can be inspired to do something good and wonderful too. Kudos to you for sharing your journey, it’s a pity it didn’t work out but I have no doubt you have the insight to learn and become a richer person for it. That’s the single most important aspect of life. Best of luck in your new adventure, I have signed up.
Thank you, and yes I know I made a lot of mistakes but every new business will carry with it lessons from past mistakes. It's just a matter of time and continues curiosity and effort
I've always wondered about the economics of cafes. The amount of coffee you have to make, just for rent and energy, before staff wages and input costs, is so much I can't wrap my head around it.
Thank you for sharing the details. Thanks algorithm for bringing me here.
Wishing you all the best for you next endeavour.
@Lookup2WakeupI agree. Places like this need to be making coffees hand over fist to stay afloat. As has been repeated in the comments, most people who start a small coffee shop like this are already very wealthy.
As an independent cafe, as a rule there are two types who survive:
1)The ones with a wealthy owner who has no problem with losing money in it.
2)Money laundering fronts.
As someone in the process of starting their own cafe; this was invaluable! Thank you for taking the time to make this, it had to have been rough
Will you still go ahead with the idea?
@@marcus.H absolutely! This may adjust the timeline, but I will be more prepared than I was previously.
@@Silatas86 are you independently wealthy?
@@Silatas86 if the business is losing money, why even try? You may just end up dumping cash into a business which will never work
@@marcus.H the business isn't in operation yet. So it's not losing money? We all die someday, why try to live?
People don't want good coffee; they just want not bad coffee. Most people are used to drinking Keurig; simple as. If you are simply as good as that, you will be known as the place with delicious coffee.
Fancy coffee is good, but sometimes people misunderstand that a lot of times, average coffee is almost better because it is safe and comforting for most people. The day might suck, you're a thousand miles away from home, nothings going and then you get a cup of coffee that tastes just like the one you drink everyday at home. It's like a warm blanket, a little shelter from the storm.
Great comment 💯👍🏾
When i was in high school, a friend of mine's parents bought the local derelict gas station and set up a coffee shop. It was a success! The town loved it! It was a place that had events but also served breakfast food and always had adequate staffing during rush periods. They had several seating areas in and outside. Then they decided to host a pretty political event... In a town full of people with the opposite political beliefs. Their long list of customers dried up almost immediately. Within half a year they closed their business. I learned an extremely valuable lesson. Politics and small town business does not mix. Even now i see local businesses with campaign signs in their windows a d i think about how that candidate couldn't care less about that shop. But all the locals that dont like that candidate gladly drive past the shop to go to a more neutral one in the city next door. Its a shame.
Shop does not look welcoming - also , work in a industry first, you will see all the unknown aspects of the business - especially the negative ones
I don't live in UK or your village. As I'm listening you said you walked through the cold british winter to open the cafe at 8 before people go to work. Personally, I get up at 7:15 am and arrive at McDonald's drive thru at 7:45 am. Get my 2 extra large black coffee and arrive at work at 8 am. My point is the coffee shop needs to be opened up way before 8 am.
Nobody in that village was working, they’re all retired
im sorry....8am BEFORE WORK? i start work at 6:38.
I don't know how this video even got into my feed, I'm not even a coffee drinker (off from coffee for about 1.5 years now) but honesty of your work is through the roof and your struggles are very related to our other business we do, - post covid and energy crisis combined with low customer financial confidence in market now.
I know when you put your best forward and it is simply not enough...
It is extremely sad that you had to close down something where you put your all off your heart in....
After running businesses for 20 years ive learnt that the marketing has to revolve around providing potential customers with the ability to sell the idea of buying to themselves, this sounds obvious but new business owners are often overly concerned with their own perceptions of themselves and they often stand in the way of their own success with this self-criticism … its hard for business owners to believe that its not about you as an owner, its about clear product information, reviews and quality assurances with as many regular discounts and promotions as possible to allow people to establish certainty in their own minds. Also if you try to be too personal with customers it will make them feel uncomfortable overtime even though it feels like you are building relationships, so you often need to keep a professional distance from everyone so you keep your own perspectives clear, and they feel unobligated to keep coming back.
You focused too much on the coffee.
You haven't learned anything. All you did in this video was to complain, whine, and make excuses for why your business failed instead of taking full responsibility for not trying hard enough. You could have tried traditional marketing.
Your business didn't fail because your coffee machine or interior wasn't good enough. No.
It failed because you only focused on the coffee aspect of the coffee shop and didn't focus enough on the BUSINESS aspect of the coffee shop.
Sorry to say it, but this is the truth.
Notice how when his business failed, and when times were 'hard,' his response was to give himself feel-better vacations. It isn't hard to read between the lines. He isn't trying to make a business, he is trying to legitimize an expensive obsession with social media fame and a coffee gear hobby.
@@Electric_Bill Exactly bro, that's what I'm thinking too
@@sindre4252 You are one of the good ones. Unfortunately in this world, people default to accepting the point of view of whoever is speaking, barring of course instances where the speaker signals political opposition with the wrong buzzword; It is easier that way and in some sense they want that same courtesy extended to themselves. This is a feature of humans to create social harmony with those we surround ourselves with. The internet bypasses a healthy distrust of the outsider because to your brain they aren't one.
Wow this was super interesting and as somebody who has worked in a few cafes years ago and always kind of thought of maybe owning one some day, this really answered a lot of questions I had. Thank you so much for being so transparent and sharing your experience. I’ve always thought it must be a really tough business and like any service industry business there are so many variables like location which can make or break a business.
I lived in NYC for over a decade and used to work in cafes there. I remember this one cafe that was slammed all day every day especially during rush hours. The coffee was completely mediocre at best and they really didn’t care too much about dialing in espresso or anything beyond basic coffee drinks. However they were located right next to one of the busiest stops on the L train in Brooklyn. Two streets away another cafe opened which had the best equipment money can buy along with a huge roaster in the back room. There coffee was excellent and I would go in there and think “damn…who paid for all of this?”. After getting to know the baristas I learned that there were 2-3 investors who opened the place.
One year later they were closed suddenly overnight and just left a post on their IG to thank the customers who came in. Pretty brutal! The cafe down the street beside the train is still thriving and busier than ever the last time I checked.
It's not an easy business but once you get going it can be very profitable. We just never got going. Next time ;)
@@homecafecharlie absolutely! Sounds like you learned some really valuable lessons that you will take with you on your next venture. Wishing you all the best!!
@@homecafecharlie do you still believe in a small coffee shop? i am the edge of open one. Better place than yours(bigger, open, seats, and nice view) , but not fancy hardware(a normal espresso machine and regular ovens and stuff like that). But looks like a lot of people here think this market is over saturated and there are not opportunities for new business.
@@andresdigi25I do think certain cities have an interest in nicer coffee over run of the mill, but realistically basically zero of your customers could name the make/model of a single commercial espresso machine.
Location has to be the top factor (vibe and such is part of that, but also just convenient access and visibility, and not having too much competition nearby)
It’s also very important to be serving the drinks people actually want, not just what you think is good
Never has "don't let the perfect be the enemy of the good" rang truer
All i can only hear in this video is "it is because of this, it is because of that". I don't see any responsibility here. I saw a good comment. Who would come and buy coffee at 8 when your butts need to be at work at 8. You can open up at 6. Sell some bagel along with a strong but not sure tasting brew to people rushing to work. It is morning. I want something strong. Not excite my delicate tastebuds. In the afternoon, when we have their lunches or in the evening when people just want to relax, then maybe you can switch to a fancier roast.
Here's a clue: if you are thinking about starting a retail business, first you project the annual volume of sales thru the first 5 years. Then you project the average sale amount of each transaction to find out how many transactions it takes to reach that number. If your average transaction is under $10 or so, you will likely be out of business very quickly, and you will be working yourself and perhaps your family to death just to go out of business more slowly. By the way, you need to know your costs of doing business from top to bottom. Don't forget you have to pay rent, utilities, employees, and cost of goods sold, and taxes.
Retail is brutally competitive, and you better be the only coffee shop for miles, and it better be good.
To do $500,000, you have to sell 50,000 $10 sales in 300 or so days per year! No one would open that business with the 2 minutes of simple math above. Don't even get me started on franchises, at least you just go broke if it's your own; with a franchise, you can go bankrupt and lose everything. Lesson #1: Know what you are doing and understand the business before you invest in one. Selah
I am from New Zealand...we love our cafes and coffee. The ones that do well have great food. I bashed my way through a lot of the comments and found none discussed food quality. The busy cafes have the best food.
At the end of the day a coffee is a coffee, people queue up at petrol stations for low quality stuff. Very few have the time to hang around for the gourmet experience.
Thanks for being so candid. Failure can be so hard to talk about but helpful to learn from. Condolences on the loss of your dad - I’m sure he would be proud of you for giving it a go and being strong enough to own up to failure and learn from it. Keep at it! Success is often the product of many failures. Wishing you all the best! ❤
Thankyou for sharing.
Cafes and restaurants are some of the toughest businesses. I also opened a cloud kitchen and restaurant in Bengaluru, but unfortunately, we had to close it as well. The lessons I learned were varied, but the biggest ones were that it can take a long time for word of mouth to spread, and it's an expensive and exhausting journey.
I worked at a local newspaper in an industrial park just off the main highway. An enterprising gentleman set up a specialty coffee stand in the lunch room cafeteria. Although there was a Starbucks nearby, one had to drive to get there. He had his loyal customer base built in. He issued punch tickets: buy 10 cups and the 11th is free. After paying the cafeteria rent to lease the space, he hired two friendly baristas to help out.
You focused on the art of making coffee. Starbucks focused on the vibes of a coffee shop. Restoring 2nd hand patio furniture and focusing on the garden might have been a cost-effective move. Still, most people never even tried to get their dream. Good luck
You live and learn, that said the number of people who open up a business without working a little in the business/ industry is amazing, there’s so much you can learn and mistakes you can avoid, all the best in the future
Everyone wants to be their own boss until it isn't fun anymore.
You’re absolutely right. Once over the honeymoon period and into the grind, thats where your nerves shine. Either it will be nerves of steel, or nerves of bubblegum. Not the best place in the world.
The first interior shot solidified why you failed. Looks like crap on the inside, would never step foot
It's so obvious, isn't it? And none of his friends told him that this
is a bad place to run a cafe? Actually it's not a cafe, it's a takeaway.
Instead of not hurting his soul by tellimg him "search for another place"
they let him run against a wall. Great friends!
That was the first thing I noticed as well. It just looked so SAD. Even the paper cups looked like something you would serve cheap drip coffee out of. I don't get how a man so brutally myopic about the details of coffee didn't even notice that his cafe and service was uninviting. Also, opening a coffee place at 8 AM? That's hilarious. Dude needed to open at 6 AM at the latest.
Clearly your coffee is top notch probably better than any cafe or even my home espresso. It’s not the coffee quality that most people in that town fare about. Gotta know your audience. However if you offered 1. Convenience (drive thru, delivery, etc) 2. Innovation (like crumbl cookies) 3. Community (collaborate with local groups, donate to a community group) 4. Atmosphere or 4. Loyalty (rewards program) then it would be different.
I have always had the dream of owning a coffee shop but ended up becoming a pharmacist instead, this video was a great insight into the difficulties that come with trying to grow a coffee shop and there are a lot of lessons to take away - good luck on your journey! Subscribed!
No offense but I think you needed a lot more business training. A lot of assumptions were made on your part. You seemed to focus a lot on the product, but not enough on the customer. No customer, no product. People saying they “want a coffee shop” is very vague. That might have meant that they wanted a place to sit down. Did you offer anything else besides coffee? Pastries? What were the ages of the villagers? What was the minimum amount of customers needed to break even? What time do they go to work? The ambiance of your coffee shop also did not give maximum cosiness. There were a lot of things you could have done to up the coziness and high quality feel on the cheap.
Sounds contradictory but I still felt inspired after watching this video. The fact you put into practice what a lot of coffee lovers would only briefly dream of and then give up, is very commendable. Despite how easily it could fail, I 100% would try opening a specialty coffee place if I had a load of excess cash (in many decades to come haha)
Why didn't you open at 6 am? People want their coffee earlier, at least here in the USA.
Dude very strong to make this video after this and gracefully showing this to the world!
I think this is what people need to see and hear because often we just get the success stories. But success only comes from setting many many details right, and most of those are probably initially wrong. The realistic version is always the best example to learn from.
With this you are doing many overly optimistic entrepreneurs a great service.
This is just a tragedy. Build it and they will come. That is the vibe. Its painful, honestly. You mention early in the video that you attempted this in Hilton, Cambridgeshire. The population is approximately 1100 people. And from what you've shown us you had a nearly unmarked, side room in a residential area. With a small budget you could have made a mobile set up, that you would have actually owned. Instead you rented the side room that required your time and money to renovate. Its agonising. With a mobile set up, literally a converted ice cream van, you could have gone to hipster beauty spots around Cambridgeshire and been selling to urbane millennial walkers and gen-Z ramblers who were venturing out of the city. If that had worked it could have been a beach-head for the operation you actually wanted in the longer term. Christ, this is just murder to see.
The villagers wanted a hangout place. Basic coffee, tea, juice and beer and a nice, homy atmosphere would be enough. You would never be rich, but the cafe would survive. But it great you have tried! You have learned a lot i hope. Good luck!
Failing at your first attempt is not unusual. People do not realize that a failure will benefit you much more than a success. Failure evokes humility and self examination, "what did I do wrong" The experience leaves you with a sharper eye. Today, you can see what this guy is doing wrong or what innovation this other guy has hit upon. You have developed knowledge about coffee that could applied to another medium. I had a mentor who pulled me out to view the shop from across the street. He said, "what wrong with the appearance of the shop or what's right and how can we make it more interesting.
Be self critical and don't be afraid to change or be flexible.
Yes, the gentleman's comment is right.. Perfection kills. You were aspiring to the highest quality and your customers are ordinary people that don't care. they have other things on their mind. Expresso is a rare treat but it is not a fine wine.
People, give Charlie a break! In my hometown in Australia they line up every morning for “a hole in the wall” coffee shop! The one I go to opens at 5am for the tradies & workers, then the Mums after school drop-offs after 9… & he is closed by 1pm. But maybe we have a different coffee culture here. Charlie, I wish you well on your future endeavours. You know what’s more important than any of things you mentioned? The determination to succeed at doing something your passionate about. And you are certainly passionate about coffee. Good luck!