Successfully launching a new business in the restaurant industry can be tough. This is even the case for simple cafés that focus on serving patrons coffee and light sandwiches and snacks. It requires a large upfront investment, continual cash flow and ridiculous work hours just to get the business up off of the ground. However, there are tips you can learn from those that have launched successful cafés.
1. Learn Your Craft
In the past 20 years, Australians have become coffee aficionados. You’re not going to be able to fool the average coffee drinker. While you may enjoy drinking exotic blends of coffee a good deal, that is not enough to open a café. You should become an expert. This requires reading the right books and doing your own research and testing. Making good coffee is a science, and your patrons will expect you to have that science down pat. Don’t jump in head first. Make sure you have the knowledge and ability to brew perfection before you ever consider starting a business.
2. Love What You Do
While knowing a lot about coffee and food is good, it may not be enough. You should also love it. If food and drink service is not your passion, you may want to reconsider starting a café. You will be working more and harder than you have ever before. If you don’t love what you do, your business could quickly turn into your own personal prison.
3. Obtain the Right Equipment
You can’t run a quality café without the right equipment. This should include things like a coffee roaster, espresso machine, grinder and till. While you don’t necessarily have to buy these new, they should work properly. Depending on your food menu items, you may also want a flat top grill, Panini press or oven. However, don’t go over-budget. A café’s kitchen and menu is not supposed to be as expansive as a regular full course restaurant.
4. Price Your Menu Items Strategically
Whether it is coffee or food, you need to do some math to figure out exactly what you should be charging customers. First, figure out what the cost of all the ingredients are in a drink or dish. This total is the food cost for that item.
However, only selling that item slightly above its food cost does not mean you will make a profit. You also have to consider the overhead. This is all the non-ingredient costs that are required to make that drink or dish. This includes things like electricity, rent and labor. Divide the total overhead by the number of customers you expect to serve to get a better idea of what you need to charge to make a profit.
5. Keep Your Menu Fresh
While it is easier to stick with what works, you should also make an attempt to keep the attention of your loyal customers. While you should have a core number of menu items that never change, you should also offer specials. Special blends and a sandwich of the day can do the trick. Also consider seasonal items. During November, add coffees, lattés or frappés with pumpkin spice as a special menu item. During December, candy cane flavored drinks are an excellent choice.
6. Choose Your Location Carefully
Location can make or break a business. Make sure you find a location that will receive enough foot or car traffic to make investing in that space worth your time. Also make sure you invest in space you can afford. A huge mortgage or ridiculously priced lease can put you into the red from the get go. Consider the fact that you could move to another location in the future if you do find success.
7. Don’t Ignore the Décor
While your drinks and food should be the centerpiece of your business, you should also give customers a relaxing atmosphere to enjoy them in. Try to create an inviting space that will become a destination for people on their lunch break. Be thoughtful with your interior design as well as your furniture. One great choice for finding attractive and affordable furniture for a café is Adage Furniture.
8. Focus on Your Human Resources
While you probably can’t afford an HR department, how you manage those you hire to work under you is important. If you do a poor job, it could mean unsatisfied customers and a high turnover rate. At worst, you could be breaking employment laws. Do your research on how to legally and effectively manage employees. One benchmark you should certainly try to achieve is having a staff that runs the business the same whether you are present or not.
9. Scope-Out the Competition
To be successful as a café, you’re either going to need to fill a demand that isn’t being met or differentiate yourself from the competition. Check out similar cafés in your area. This should include small independent businesses as well as the big chains like Starbucks. See what you can learn. While you shouldn’t emulate your competition exactly, you should at least learn how to please the same customer base.
10. Plan for the Long Term
While making ends meet each week will certainly be first thing on your mind, as an entrepreneur, you should also be planning for the long term. This means what you expect to do six months, one year, five years and ten years from now. While these plans may not be set in stone, it’s always good to have a guide. Consider whether or not you wish to someday expand your business. Also consider how long you expect to be in the food service industry and whether or not you will pass the business onto an heir.