Planning on starting a coffee shop in my town

[RobertH]

Hi and thank you for a great forum like this i have learned allot from it so far.
I live in a relatively small town (well compared to where i came from St.petersburg,FL) And i am strongly considering starting up a coffee shop. There are a couple of cafe's in town that serve coffee so to speak if you call it that but none that serve espresso cappuccino's etc. I have a location i believe that would work out on hwy 127 which is the pass way point for all people that leave town and people coming from Frankfort to Lexington to work. And i plan on doing it from 6 am till Approximately 10 pm. The building does have a drive through also and is Approximately 1200 sq feet. Now the big challenge is what to really supply it with as far as equipment and food. I don't think i want to get into a whole cooking meal's type of thing just maybe do roll's pie, cake, pasteries type of thing.
I was wondering if there are other people out there that have ran a store, worked in a store that can help me in some of the things i might should consider in what to supply and type of equipment etc. Should i rent the equipment or just buy it ?
And i would like some of the coffee house travelers that have hit shops to please put in input on what they liked from some of the shops they have gone too from type of drinks to the atmosphere type of seating etc.
Should i do like a small stage and do a open mic type of thing?
Sorry i am rambling on and have asked allot and yet still have ton's of questions running in my head now.
Any help would be great guy's thank you.

[bernie]

I have owned a coffeehouse across from the university here in Las Cruces, NM for 10 years. We roast on-site and have just opened another 1000sq feet as a commissary in which we bake and make our own bagels. We also have a drive through. If you haven't done this business before I'd strongly recommend you not only get advice from experienced operators, but that you invest in some consulting. Folks who can advise on traffic flow needs, work flow inside the shop, etc. I spent several thousand dollars prior to opening just to double check my plans and it paid off huge to have someone with lots of experience take a second look at the plans. Spending 8-10K on extensive consulting can become a tiny investment in the long run. Not spending it can break a business if you make a major error that you don't see. That said, we opened and operated for years without a drive-through due to the plans of our landlord which didn't work for other buildouts. I find now that up to 30% of our business some days is through that window. I'd never open a place now without a drive through in my market. Equipment is, in my opinion, the easiest decision. Staffing, menu, vendors, etc. are what will eat your time so they should get the most attention. About the only equipment advice I'd give is to not buy used refrigeration equipment if you can avoid it. Know what you customers will buy and sell it to them. Don't make the common mistake of trying to figure out the newest, latest fad to sell to people who don't want it. I'm not a big fan of burritos, but my customers buy them by the dozens. So we make great burritos for the morning crowd. We tried crepes and ended up eating piles of crepes ourselves. Anyway, keep researching and asking questions. Good luck.
bernie

[RobertH]

Thank you for the advice. I am not for sure how to look for a consulting place that would be helpful in this business. Do you do a open mic type thing etc. ? I also used to be a network admin and was thinking of selling a couple of things like laptop casses etc. Nothing big but also a drop off for computer repair. I will of course have free wireless internet.

[narc]

Robert,
Just a few observations from my one time experience in investigating starting a cafe & micro-micro roastery plus my observations why 3 of 5 of our local shops have failed.

Have a realistic business plan written up. If unable or unwilling to do it yourself hire out. Have a complete understanding of your local and state labor commercial codes and regulations. You should be able to get a feel for what will be involved regarding cost and efforts during your first years of operation. You will need to have a formal plan for any outside $$$s.

The shops that have failed all within their first 2 years of operation were due to multiple factors. Most of them totally within their own control. Our tourist season is short and intense. Our local population is small. Presents a cash flow problem and labor problem. The failed shops ignored that reality. They had poorly trained and probably underpaid staff resulting in a poor product and poor customer service. Location, location, location.... One of the failed shops was located on the only major highway going through town. Drive up window. Problem was not having a loyal consistent crowd of locals. Just not the best place to walk down to the shop for a cup. One of the failed shops is on its 3rd owners and has developed into the local cafe. Has a prime walk in location. Unlike the previous owners the new owners are into providing a limited menu of drinks that the locals & tourist appreciate. They have also invested significant $$$$s into physical improvements and staffing. They understand what the local community is looking for in terms of service and product. The owners seem to be always at the shop. Bottomline are location which meets the needs of your potential customer base, trained happy staff, perfect a simple menu and programs/services expanding as funding is available, demand arise and staffing needs are met, be prepared for unexpected cash needs and the slow periods, be prepared to put in some 12/7 weeks.

[BobS]

I took the Business + Barista course at the American Barista & Coffee School - http://coffeeschool.org/
in March and the information was really great. One of those that attended my class is
opening a place in Opelika, Alabama in June, The Red Door June Coffee & Floral Co.,
if you'd like to talk to someone reasonably close to you to get a feel for the business.

I'd highly recommend the ABC School. Every instructor has worked in and/or owned a coffee shop. A few
of the part time instructors are working baristas. Plus you can get a feel for the equipment you'll need as
most brands of espresso machines are there and you get 4 days of hands on on every machine. We
worked on Wega 2 group, Astoria 2 group, La Cimbali M29 2 group, La Spaziale 2 group, Nova Simonelli
Aurelia 3 group, Synesso 2 group, Brasilla E61 2 group, and La Marzocco GB5 3 group.

Plus they cover menus, floor plans, customer flow, work flow, intro to marketing, keeping books and
inventory, costs of goods, labor, interviewing, training, etc., and it comes with 1 hour of consulting as well.

It's well worth six days of your time. I really had a great time there, learned a lot, met some great people,
visited some great coffee shops, and have a much better idea of what the business is like.

Did you know that 9 out of 10 coffee shops fail? They didn't pull any punches and told us what it takes,
pitfalls of leases - you can be making a great profit, but with the wrong type of lease, be going bankrupt.

Bob

[Randy G.]

Hello Bernie! Long time, eh?

Robert,

Bernie has been through it and knows of what he speaks. Any info you can gleam from him is worth its weight in gold. Plan on a large outlay of cash that will take some time to recover. Plan on doing more paperwork than you have probably seen in the last ten years. Keep in mind that all it would take is for *$$ or Duntch Brudders to move in a few doors down to put a hurt on your cash flow.

It's a great business to be in for the people, but it's a really tough business to own.

[bernie]

Hi Randy! I haven't been on ac for some time so have sort of lost touch with a lot. Still here and seeing posts from old ac'ers. Thanks for the nice words. Tomorrow is our 10th anniversary. Whew. That went fast. It is getting to be a saturated business these days in some ways, less so in others. I believe there are fewer of the traditional coffeehouses than years ago. Folks have found out how hard that is to pull off. Now there are lots of iterations of coffeehouses. Just look at sbux foray into the music scene. I used Bellisimo when I was getting ready to launch, but now there are several more in the business. Its been a hell of a ride and well worth it in ways other than money. I've been to several weddings of kids who met at the shop, graduations by the dozens, joyful parties and good friendships galore. Did have to eulogize two young ladies who died way, way too early which was heartbreaking. All in all, it has been something I have loved in a way you love living. I always wish the best to those who take the plunge, 'cause I know how deep are those waters.
Bernie

[Marshall]

Sorry i am rambling on and have asked allot and yet still have ton's of questions running in my head now.
Any help would be great guy's thank you.

Candidly, your scattershot questions suggest a disaster in the making. Bernie is right. Get yourself a good consultant.

Here are some that are well respected in the industry:

1. Bellissimo http://www.coffeebusiness.com/
2. Andrew Hetzel http://www.cafemakers.com/about.html
3. David Haddock (who is closer to your locale) http://coffeehows.com/Consulting_coffee_business_owners_development.html

Oh, and stop reading Home-barista.com until you are well under way. Despite the presence of some knowledgeable professionals, this is mainly a site for costs-be-damned, home enthusiasts who do not need to be focused on business survival issues.

[RobertH]

Thank you for all the suggestions.. Well allot of what i wanted also was just people's experiences with coffee shops on what they liked. Atmosphere etc. But thank you again i will look into those places.