Thinking of starting up a business, but not sure on what sort of business to have? Open a cafe or business that offers great coffee!
So you’ve set up a café, you’re laying down all the foundations and you have all these fantastic ideas that you can’t wait to implement, but now it’s time to focus on the money aspect! The underlying key to success is the coffee that you decide to give to your customers. Essentially, if you reward your customers with a top notch beverage, then they are more likely to return, thus leading to an increase in sales. As a business owner, you can often look at total spend and the revenues generated from large spend products (such as a meal), yet overlook the fact that the gross profit from two cups of high quality coffee can easily be the same as a lunch meal. This will also have less of a labour cost associated with it.
A common mistake that seems to arise from a large number of start-up cafes and coffee shops, is overlooking the coffee as a means to making a fortune, resulting in the cheapest brand possible being purchased. On average a cup of coffee costs around £2.20, so initially this may not seem like a gold mine which is what usually instigates this negative outlook on coffee in terms of making a profit. Individuals rarely invest enough time or money into the most important factors when buying coffee i.e. doing the research, sourcing samples, and seeing what works and what doesn’t. But believe me when I say you really should as the rewards can be substantial.
Coffee isn’t just a fantastic margin item; it is a product that customers come back for several times a week if the quality is to a high enough standard. But they will only do this if the coffee hooks them in the first place i.e. a coffee so compelling that they can’t leave without a second cup, or won’t grab a bite to eat without a cup afterwards or even sitting down at their desk in work thinking about the next time they can get their hands on one of your tasteful coffees.
Here at Beanroasters we roast our own quality coffee and offer a wide range of different blends. So when you are starting up your new café, don’t be fooled by the amount of money in the till as its money in the bank at the end of the month and that’s what matters most.
Remember: “Turnover is vanity; profit is sanity”.