I want to open my very own cafe. This phrase has been shared over and over worldwide. Running a coffee shop seems fun: drinking coffee all day, talking to customers and enjoying a steady income. This is not the reality.

Instead of seeing the opportunity, new potential coffee shop owners should identify why they want a coffee shop. You should think again if you want to make a lot of money or aim to impress your friends through your shop.

Four main reasons why you should not open a cafe

Running a coffee shop takes effort, time and stress. The industry is saturated, and many customers only visit their favourite local cafe or chain store. Leaving speciality or smaller cafes scrapping the bottom of the barrel to make ends meet.

The tight-knit market

The coffee industry is taking strain due to the accessibility of coffee. Every restaurant, bakery or petrol station converts their open space into a small coffee shop. Big supermarkets now collaborate with chain stores to ensure they offer coffee while customers shop for their monthly necessities.

The hypothetical coffee pie is getting smaller and smaller as more coffee shops pop up. Many of these shops offer below-par coffee, and the shop itself leaves one mesmerised with the need for more finances used for shop fitting.

If you have nothing new to add to the industry or take the coffee scene forward with exceptional products and service, the industry is not for you.

Money making scheme

A quick money scheme is something many desire. With today's economy and financial challenges, rising to the top is challenging. The economy is pushing the prices of coffee equipment, roasted beans, waiters and baristas, which leaves new coffee shop owners with higher expensive than before.

Opening a new cafe can cost anything from R950,000. According to News24, Buying a franchise will draw around R1 million. This is specifically for some franchises around South Africa.

The aim should be to open your cafe without franchise fees. The problem, however, is that it is expensive to start your cafe, and the markup for a cafe is quite small. Startup business owners can make up to R18 profit per cup. This is a massive markup, but the key is quantity.

With the large overheads and expenses, owners must push the number of coffees they sell daily to break even. Many cafes add food and other products to the shop, which can boost the income for the month.

Coffee has excellent markups but is not a money-making horse.

Easy to set up and run

Building a beautiful shop with a great flow can be difficult. Creating a workflow for the barista behind the bar is critical and can influence the efficiency and quality of your product. Potential cafe owners usually need to gain the experience or knowledge to set up a coffee shop.

With this, these owners would prefer to pay coffee professionals to assist with the layout and workflow. This will, however, lead the coffee shop owner to learn the lessons the hard way around.

Without the helping hand of a coffee consultant or professional, the entire team might feel drained and overwhelmed by the lack of direction, placement and chaos that a cafe can bring.

Staff turnover and overheads

A coffee shop has a lot of overheads. Some individuals new to the industry might not be aware of the major overheads a coffee shop accompanies—spending most of your revenue on rental space, equipment, stock and staff.

Not only do you have to pay your massive bills every month, you need to spend time and energy on staff. Quality baristas are hard to find. Coffee shops are well known for their staff turnover, meaning that you will have to deal with a new barista on a regular base.

The barista should learn the ins and outs of your cafe, preparing V60’s or other special coffee methods that are more complex to teach. There are multiple methods that cafe owners can use to ensure that they cut their losses and reduce their turnover. This should, however, be taken seriously.

The reasons why opening a cafe is for you

Now that we have covered the main reasons behind not opening a cafe, we can cover the positive aspects of why you must pursue that dream of opening your cafe. Running a cafe takes endurance and hard work. It takes a lot of work to make money, and it will take time to produce a return on investments.

A passion for sharing coffee

Coffee is a beverage that brings people together. Deep conversations, multiple stories and complex topics are all shared over a cup of coffee. Not only should a coffee shop owner aim to create an environment of comfort and sharing, but they should aim to share their passion for coffee.

A coffee shop is an extension of the people that run it. It should represent a theme, feeling and idea. Coffee shop owners should use the foundation to share their passion and love for coffee.

If they love pour-overs and manual brewing, the shop should include a bar where customers can experience it. Other shop owners enjoy a blend that hits the right spot every morning and should aim to fill that need daily.

Find what you love and focus on sharing that consistently.

Many individuals lose focus and try to fill every void or make money in every possible way. The focus should be to share your passion. Focus on your passion for coffee, and don’t deter from it.

The hobby and drive to improve a community

Filling the void is something many entrepreneurs thrive at. The aim is to ensure that a particular community can access specific solutions or products. This is also true when looking at opening a coffee shop.

Coffee shop owners should aim to improve a certain community by adding quality coffee to the neighbourhood. The aim should be to avoid creating competition for shops that already exist.

Coffee shop owners can host events such as public cuppings or brewing courses to showcase the beauty and complexity of coffee.

New coffee shop owners should identify locations saturated with multiple chain stores and smaller coffee shops. Ultimately, the aim is to improve and maintain the area with more coffee shops.

What to consider when opening a cafe

There is much to evaluate when considering opening a cafe, from equipment to workflow. The details matter and can lead the cafe to succeed or fail miserably. Staff members can make or break the business, and a strong cash flow is paramount.

Equipment and bar flow

For any individual to run a great coffee shop, they need the right equipment. The equipment will range from espresso machines to the water used to feed the cafe. There are many decisions to be made.

The entire process can be intimidating if you are new to coffee and have yet to set foot behind a bar. Luckily, many barista trainers, roasters, and other coffee enthusiasts in your area can help with your questions and layout.

Machines

Coffee machines are expensive. New coffee shop owners are generally shocked by the prices of espresso machines. Many individuals expect an espresso machine to range between R 40 000 - R 60 000 brand new, which leaves them with the idea that a second-hand machine will be just over the R20 000 range.

The realisation that espresso machines are not that cheap is fascinating to see. Not only are espresso machines pricey, but they also set the foundation for your cafe. You will need a machine that can handle high-pressure rushes and perform when many customers enter the shop.

Cheaper machines can lead to baristas needing help to pull espresso shots. This can be due to single boiler machines running out of water and heat.

Multiple companies will assist owners with payment options. Instead, invest the money and buy a proper La Marzocco, Victoria Arduino, Sanremo or even any other machine. It would be a great fit for your business.

If your question is: What espresso machine to buy for a new cafe? Contact major distributors and ask them to assist. Not only will they help to identify the best-suited machine, but they will also provide contact details and other information that will be of great benefit to you.

Grinder

Grinders are one of the most important tools that every coffee shop owner should prioritise. This machine ensures that every cup of coffee is consistent. Not only should the grinder be consistent, it should be able to perform under high pressure.

A grinder should be simple enough and have multiple settings for the baristas to ensure they extract the best from their coffee. Grinders such as Mahlkonig, Eurika, Victoria Arduino or…. They are great tools to start with.

On-demand grinders are the only way to go. Avoid dose grinders.

Water

Tasty coffee needs good water. Running your machine on normal municipal water is a terrible idea. Municipal water in South Africa is not even set up as normal drinking water, leading to even worse extracting water for your coffee.

Clive Coffee has an in-depth article that provides the best-suited water for any espresso machine. With the correct water setup, the espresso machine will have a longer lifespan with less likelihood of clogging up or breaking down.

Bar flow

A simple cafe flow should be followed. If customers need help to identify a flow or need clarification inside the shop, they will rethink their visit to your shop. Through this, you will not just lose customers, but word of mouth can lead to many individuals in the community not even trying your cafe solely on others' opinions.

The bar layout will not only lead to a good-looking cafe but will assist customers in understanding the flow. The bar flow should move from ordering to paying to receiving coffee, each having its station.

The baristas behind the bar will easily use the flow to assist customers in an orderly way.

Coffee beans

Finding the best beans to use can take time. The coffee service should be up to standard, and the beans should be consistent. Every coffee has different flavours. Thus, ensuring that every batch you receive tastes the same is critical.

The barista and the cafe owner should taste their coffee daily. This should be done by pulling espresso or tasting your coffee in a cupping session.

Franchises

Should you buy a franchise or open your version of a coffee shop? Franchise fees are always high, leaving you with minimal input and providing you with all the needed stock, equipment and beans, which leaves you with a lack of choices when it comes to beans.

The benefit is that they will assist you with everything and leave you with a system that completely works. The choice is up to you.

When opening an independent coffee shop, look for franchises in and around your desired location. Companies like Starbucks, Vida E cafe or Woolworths can cause a lot of harm to your business. These companies have strong brands, and many visit them because of the status or quality that the companies present.

This could lead to you losing customers due to well-known brands and shops that are well-known all over the country. Customers are loyal to the chain stores, and your cafe can lose customers if a chain store is nearby.

Barista training

Great baristas are hard to find. They should be friendly, accommodating, intelligent and have the necessary skills to take on the job. The problem, however, is that cafe owners want to avoid paying baristas the salary they deserve.

With the high overheads and salary struggles, coffee shop owners try to cut corners. But instead of having this view, you can aim to hire a barista who has completed their SCA qualification and has the accompanying experience to set a high standard in your cafe.

Another option is to hire staff members on character. This will enable you to find a hard-working individual who will do the work assigned to them. After the hire, you can send the individual for professional training to ensure they have the necessary skills and knowledge to make great-tasting coffee.

SCA courses are available all over the world. Finding a trainer might be the only minor challenge for coffee shop owners. Many trainers travel around and will assist you.

Wrapping it up

Opening a coffee shop will take a lot of hard work and dedication. This is not a money-making scheme, and many individuals who have tried to make a quick buck have left with a big dint in their pockets.

The coffee industry is a tight market; only a few make it work. If you are passionate and think your cafe can bring a new touch to the industry, now is your time. Keep the main priority in the front, and don’t take shortcuts.

Four main reasons why opening a cafe is not for you: A quick money-making scheme or a passion for serving coffee lovers worldwide