What it actually costs to open a cafe
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- Опубліковано 28 тра 2024
- How much does it cost to open a cafe or coffee shop? That's one of the most common questions I get asked. In this video, I break down some examples so you can get a sense of what it might cost you to open a coffee shop.
If you're ready to crunch some numbers for yourself, here's an example budget to setup a new cafe or coffee shop you can download: docs.google.com/spreadsheets/...
Sections:
0:00 Overall Costs
1:03 Fitout
2:59 Equipment
4:03 Other
I'm not thinking of opening a coffee shop because I don't have that kind of money but I have worked for a fitout company, worked as a Barista, and owned my own business. This is a really good summary of what you need to know.
Please remember this channel is Australian. As an Australian myself, I must admit we have a rapidly different cafe approach to the United States. Starbuck's and other cafe chains the U.S are virutally non-existant here, and as such small cafe shops thrive. I'm also assuming all figures shown here are in AUD.
I know nothing about entrepreneurship or coffee. But your content, structure, visuals and delivery all add up to an exceptional video learning experience. Really classy stuff!
I'm thinking about having a coffe shop someday, and I searched about this kinda thing before. And your video just came across to my Homepage. I really thank you for this..
I open for €4000 all in and yes it has been hard but I have been open for 6 years now.
What kind of revenue / profits are you able to post with your €4000 setup?
Also would you mind sharing the area you are open in?
Thanks so much!
They won't respond because this person is full of shit. Yeah sure, 4k euros lol
We scored a fully fitted cafe kitchen, deep fryers, everything to start the business just walk in and start for under 5k. now we are extremely lucky but there are deals out there, now we didn't own any of the equipment the landlord did but after a year we've had to buy our own from break downs so now building. love these videos because now learning where, what and why we have a cash flow problem is my and my partners issue atm. it's great to see content like this because no idea about business let alone how to run one this channel is helping us rn in australia thank you coffee business basics.
This is now my go-to video for measuring colour banding generated by UA-cam compression algorithm.
Great quality video! I’m looking forward to more videos from you!
This video is really interesting for someone like me who's dream it is to once own a cafe
Really impressively put-together video!!
Awesome video thanks for the info it helps. I'm just happy that I own the property outright and that I'm putting my coffee shop into it really helps cut costs being a handyman helps cut those trades costs too.
im doing the same .. own my small 400 sqft building with county approval. what has been you bigger issues with your build out if any?
@@papajoe5331 so far it's just been the renovation and finding all the cut corners that i have to fix that the previous home owners left behind for me to find løl.
Ur video help us im from the Philippines and im learning in your video i built my own coffee shop near my own area which near a school its also a studynook which i caters most are students
I may want to open a tea business, that becomes somewhat of a cafe business I appreciate this transparentcy.
Would be nice to see how you came up with your guesstimate. Felt like you showed a picture and throughout a random number. I guess I was expecting to see average cost of furniture, contacts, design, rent, coffee supplies etc. Perhaps it's in your newer videos.
I used to work for a catering equipment manufacturer and fitter. It’s shockingly regular to come across small businesses who think 15k for a high spec fit out of both kitchen and front of house is doable. Also I’m based in the UK.
Hi! Your channel is so, so helpful -- thank you for your insight! Apologies if you've answered this before, but are you referring to Australian dollars?
Idk if you got an answer but these are accurate figures for AUD
My dream is to open with the same aesthetic as the 2:08 in, gasp, CENTRAL LONDON. I'll let it out in the evenings as a venue. 8am - 6pm operate it as a coffee shop. Subsequently host events in the evenings.
Let’s do it together 😂😂
In order to be profitable, what % of rent should be of projected revenue? Should rent not exceed 10% of projected revenue?
I think targeting Max 10% of revenue is a good general rule of thumb. Some businesses can be profitable higher than that, and many businesses will start at a higher % and then bring this down as sales grow.
I thought you were Tan France, like what's he doing opening cafes? No wonder him and Bobby are feuding.
are these costs in USD or AUD?
He's aussie, so his experience would be in Australia (assumingly) - so I would guess Australian dollars.
Which country are these info related to?
AUS , USA, Canada ?
He says here in Australia about 4:40.
Are these amount figures for the Australian economy? Because I can't imagine anything in America costing this little. The rent alone would probably be at least 100k per month in any desirable location. There's a reason coffee costs $8 these days.
@1:34 thats a terrazzo not a concrete floor
It is concrete that has been ground and polished, then epoxy coated so you see the exposed aggregatr from the concrete mixture. Very common in Australia. You can tell by looking near the edges where the grinding hasn’t gone as deep and less aggregate is exposed.
Hmmmm you sound Aussie??? So all figures are in $AUD?
If you are thinking of starting a project requiring an updront investment of 1M dollars and you are doing research by watching a youtube video then for the love of humanity, don't start it!
Nah, I can totally do it. How hard can it be? 😏
This and a couple of Google searches would do it, right?
Don’t be a chicken 😂 do it!
Every idea starts somewhere. And personally, I see no reason why anyone with the capital can’t start a project or get ideas by watching a UA-cam video. It likely won’t be the key driver in your success, but perhaps it sheds light on how to get there.
Where should they be looking?
I enjoy watching dummy hipster socialist discover that virtue signaling doesn't pay
Do you have any advice on coming up with cafe name?
Aim for something memorable and industry relevant with the direction of concept kept in mind
For example if you are a lighthearted quirky cafe aimed at relaxed service for a family setting such names as
Roasters cafe
Mr bean's coffee house
Bean juice cafe
Coffee, first
Could be appropriate considering your clientele
For a more serious approach in a sleek, modern or professional aesthetic for office workers to have business lunch / coffee breaks
Coffee pavilion
Industry roast
The Gold roasted Standard
If you are near a lot of highrise office buildings with lots of office workers who all want to compare work on their laptops or hold meetings within etc then this might be the way to go, dependant ofcourse on what is available in the area already.
Including a play on words will help to be more memorable, also being able to be abbreviated, shortened or acronymed in any way helps with less formal conversation
Ei "lets all head to the pav (coffee pavilion)"
"Let's have lunch at the GRS (Gold roasted Standard"
This will help regular clientele give your cafe their own nicknames for further solidifying brand loyalty (majorly oversimplified however I have seen it work like this in the past)
Often a reference to the history of the area will be a nice tip of the hat to the people who live there as it shows you have some appreciation for the prosperity of the neighbourhood and an understanding of its history.
For example naming your shop after the year that the building was constructed ie
"1885 cafe"
Or of the year that the town or street was made official.
The above can be slightly overdone but there is at least an example of what COULD be used
Things to avoid:
Avoid using popular slang that will fall out of fashion, whilst there are certain terms that will help you get business initially having "the RizZ cafe" may sound trendy and appealing in 2024 however in 5 years time it will seem dated and tacky
There are of course exceptions to the rule as I'm sure a "42069 cafe" would be popular in any era 😂
Avoid the name sounding too close to an already established business, sometimes this can help gain traction at first by appealing to a person's sense of familiarity, however more often than not it will draw people towards the brand they associate with the most.
for example, if your cafe name is
"Startrucks cafe"
Not only may you leave yourself open to potential legal issues but a business of this size and traction would decrease your own internet foot traffic
As searching for "startrucks" for example will generate leads for "Starbucks" as they will be the first search result on the list
This next one should go without saying but definitely
Avoid using terms that would exclude or alienate certain groups or peoples, making sure that the terminology isn't racially stereotyping or considered insensitive, especially if you do not hail from that background
I shouldn't need to give examples of these however I can if you truly don't understand 😂
My last point would be to go with something that YOU like, you will Afterall have to see this and hear this everyday.
i give up
Don't give up, start small but aim big, often small "hole in the wall" coffee shops have incredibly rapid turnover, most people who want a coffee want it quickly and not to sit in a huge $200,000 empty warehouse
get a loan from the bank
Hello, would love to talk to you about my idea. How can I contact you ?