Opening a Successful Cafe
Ploy Intaradet
Martha Gold
Senior project
24 January 2022
Ploy Intaradet
Martha Gold
Senior project
24 January 2022
Opening a Successful Cafe
“Hi John, how are you doing ? What can I get you today?” John, the Cookie Man, grabbed the same cookie he grabs every day he comes in, which is almost every day. Sally, the owner of the cafe, treats John like he is family. It is this feeling that people get when they come into the cafe that makes them want to keep coming back. Customer service and other considerations are what make a cafe successful, but not all of them are successful. In fact, “60% of restaurants close within the first year of opening and 80% close within the first five years. During the Covid-19 pandemic, even more restaurants have closed (“Top 10”).” To open a cafe you need to love what you do and be smart about how you do it. Restaurants close because the owners do not know enough about how to run their business. Many aspects need to be considered when opening and running a successful cafe (Christiansen). #1 Before opening, there are business, legal and design aspects to consider. You need a solid business plan. You might need money, a license for opening a cafe and you need to know the laws about opening a restaurant in your area (Burns). It is important to have a vision for the type of cafe you want, what kind of food you will serve, and the vibe you want to have in the cafe (Burns). It is best to have a small menu to start (Burns). #2nIn order to open, you need to have a good location and affordable rent. You need to have enough capital to pay for equipment and food for the cafe and to pay employees (Bellini). “In order to keep the cafe running smoothly and even grow the business, you need to do constant analysis-thinking and talking about what is working and what is not working in the business- and make changes accordingly (Bellini).” By considering what you need to know and do before starting a cafe, what you need to work hard to open the cafe, and how to keep the cafe running successfully and even grow, you will be ready to have a successful business.
Before opening a cafe there are business, legal and design aspects to consider. You need to know a lot about how a successful cafe works and have experience working with a good business owner.
With any business start-up, it’s helpful to have some background knowledge of the industry’s workings before getting involved with cafes and coffee shops, this knowledge can be particularly essential for long term success.Cafes typically fall into their own category, in a cross-section between catering and hospitality - and this so-called ‘coffee shop market’ has been growing eight times faster in the UK than the overall British economy. (Roberts)
You know everything about and are good to go if you have a business plan. Having a background about a cafe is always good for you before you open your own cafe. The more you know about the business aspects the longer you can keep it running. You need to have a business plan before you start to run a business and a lot of money at the same time. Everything is going to be a challenge. You need to know that the money is going to right things like quality food products. Knowing a lot of people in the industry is good for you. They can help you a lot. They can help your cafe grow more (DeMarco).
When you share your financial plan and projections, you’ll give a glimpse at the current state of your business finances. You’ll also project where you see your finances going in the future based on your expected sales, expenses and more. Existing businesses that are creating, or updating, a business plan can use data from their past financial performance. They may want to include information such as income history, cash flow and balance sheets. If you’re just starting your cafe, you’ll likely have to use research and estimations to complete this section. (Demarco)
You need to have your goals and a plan. It means you plan something on paper or in the computer or something that you jot down- everything that you think of or what you are going to do because you need to plan for it. You need to know how much money you spent and earned in the past years or find that out about a successful cafe.
Knowing the laws about opening and running a cafe is also important. The laws are different throughout the world, and it is important to know the laws where you open your cafe.
There are many laws and licenses to know about before opening a cafe in the US.
Restaurant permits and licenses are not the motivating reason to get into the industry. But if you want to bring your cuisine, your crafted cocktail or beer menu, your unique take on hospitality into the world, you’re going to need the right permits.You need specific permits to serve food and drink. A missing or lost permit could mean big trouble for your newly opened operation. A liquor license might be the first hurdle that comes to mind, but there are several tricky regulations involved in running a restaurant. (Noyes)
If you are going to sell alcohol you need to have a license by taking the test online. If you don’t follow the rule you will have a problem and the rules need to know rules about the business and have permits before you open. Now the fun part is coming up with the concept for your cafe.
Opening a cafe you need to have a vision of what you see and know what the theme of your cafe is going to be about. The feeling when you walk into a cafe will impact the customer's decision to stay or leave. It can be a good feeling or a bad vibe. It can be welcoming or it can be unfriendly. Prices could be too high or if they are too low, people might think it is not good quality.
Modern coffee shops need to be something more than just a place to get a hot drink in order to entice customers through their doors – and there are a number of ways that you can add something unique to your cafe.
Specialise – whether that’s in a certain type of drink, such as this espresso bar, or expert knowledge of the characteristics of different types of coffee bean, like this coffee shop, giving your cafe a specialism will give consumers a reason to choose it over others.
Theme – choosing a theme for your cafe adds a novelty factor that can capture a customer’s curiosity. Anything from a dedicated cat emporium to African-American soul music inspired cafe can be successful – as long as your theme is unique.
Products – your cafe’s concept could be based on the products that you serve, for example, vintage cupcakes or even vegan-friendly foods.
Décor and atmosphere – a strong sense of style can sometimes be enough to pull in the punters – provided it is well-executed. (Roberts)
If you are doing modern you should not only just have drinks. Think of what your cafe is going to be like, what is your theme about. It can be a local Thai cafe with a nature interior, for example. Your cafe should have something special that people can come and try. The product can tell customers about your culture. You need to think create or make your own name of food than make the font that catch people eyes and put some picture on the wall or some music but lightly. You should set up something like snacks for sale and maybe have a bookshelf with some books in it. You need to know all of this before you go to open a cafe. It is very important and when you open you know what to do in the right order because you are already planning about it and know enough but if you don’t have this your business might fail if you didn't have a plan. Next, you need to think about opening your cafe.
In order to open a cafe you will need to consider a good location for the cafe, make sure you have enough capital to last until you start making a profit, and come up with a menu that works well for you. Finding a good location is thought by some people to be the most important before opening a cafe. Nobody is going to tell you where your best location is. You need to find your own location that works for everything you want to do. You need to choose a location and need to know about what group of people you want them to come to and then you know what food you can sell for them.
Where is your cafe going to be based?
Your cafe’s location may be one of the most important factors in determining its success in the future. While no one can tell you how to choose the ‘right’ location – as what’s right for your business will depend entirely on your unique proposition – there are some tips you can follow to make sure you don’t choose the ‘wrong’ location. It’s important to remember that virtually everything about your cafe will be influenced by its immediate surroundings, including the number of customers you get, as well as your theme or other unique selling points (USPs)”. There are a number of different elements to consider when it comes to location, such as:Building – the actual building that your cafe is located in is important. Its size will dictate the volume of customers and the number of covers that your cafe can handle, and its shape will influence the layout, flow and functionality of your day-to-day operations.Immediate location – the location of your business building will have an impact on the number of people that see your business, and the volume of customers that you receive. For example, in a town center, are you located on the main high street, or down a quiet side street?Area – it’s important to consider the wider area that you’ll be based in too, and how this could affect custom. For instance, think of the differences between a busy city centre cafe, and a coffee shop in a village square.Competition – this is possibly one of the most important factors, as no matter how excellent your cafe’s proposition is, you may struggle to do business if the nearest 50 businesses are also coffee shops.Trying to find a balance between the number of competitors and the number of potential customers can be tricky, especially when you bring space and size requirements - as well as your USPs and affordability - into the equation. Chances are, you won’t be able to find a location that is 100% perfect for all of these factors, and as such, you may find you have to make small compromises here and there. The important thing is that you thoroughly consider how your location will affect your business, and bear that knowledge in mind when choosing your premises. (Roberts)
Your location should be where you get a lot of attention. Think about how the size of the restaurant needs to be not too small because you need to have room for a customer so choose a good location. You need to have a way to walk and enough room for chairs and tables. Pick the comfortable one not too little and not too much for people to come eat in your cafe. Location is really important to having a successful cafe.
Cafes use a lot more money than you think. If you want to open you need to have some back up of money before you open a cafe. You need to have money and buy everything you need for the cafe. “A sit-down coffee shop typically costs between $200,000 and $375,000 to set up. A large drive-through shop can cost between $80,000 and $200,000. A small kiosk may cost between $25,000 and $75,000. A franchised sit-down coffee shop can cost up to $673,700”(Neugarten). You need a lot of money to buy equipment but you can get the price lower if you get it from a restaurant that is close. Some stuff is used but it is still good quality. You can get that more cheaper that can save your money.
A security System (Lightspeedhq)
Lists of things you need like this one are very important to make. When you open a cafe you need to buy your own equipment before opening. The money is going to spin on everything so when it opens it is easy and already to use so it goes smoothly when you need it. You need to have some money but if you buy everything already you are not going to spend more money because it can keep using longer so you only spin one time. A small menu will help make your first food costs less.
It is important to have a small menu because if you have a big menu it is hard to make your menu special with a good quality. The menu is the most important thing that gets people's attention and you might create a menu board. You can step outside of the box to think of the menu. “As well as your main menu, you may also want to have an additional specials menu - or perhaps a seasonal menu. It’s also worth considering whether or not your cafe should have extra menu boards mounted on walls around the shop, or perhaps an A-board outside - and if so, what would be featured on them”(Roberts). The menu needs to be small but everything is good and change the specials menu so that people do not get bored. When it is a new season you can have a new menu, or even every month. It will make the customer not get bored about food, but the food items need to taste the same every time when they get it. Consistency is most important. some popular food from your culture that does not use too much money to buy stuff to make and the chef can design the pring. The drink depends on the season and make your own sauce so it does not test the same oter restaurant. The look and feel of the menu is important too.
Colour scheme – the colours and any images you use should be appropriate for your cafe’s concept. They can also be used to draw attention to certain areas of the menu, for example, any specials or products that you particularly want to promote.
Tone – this should also be a reflection of your cafe’s overall character. For example, if your cafe is an up-market bistro, then you might want to keep your tone of voice simple and minimalist. On the other hand, if you’re opening a more casual cafe, you may want to inject a bit of humour into your menu.
Layout – customers are likely to start reading your menu from the upper left corner – as they would a book – and finish towards the bottom right. Bear this in mind when considering your menu’s layout.
Photos – You should use photographs of your products sparingly, and only if they have been professionally taken. Bad photographs can easily discourage customers from ordering.
Attention to detail – menus with typos, incorrect prices or formatting errors look unprofessional – and the mistakes can even be enough to put a potential customer off. (Roberts)
The menu needs to be easy to see not too much letter be able to read and understand your ordering area need to be not too much stuff cause if have to many thing going on the customer will getting to much thing and can’t order anything. The menu looks like you might put a picture of the food in the menu because some people can get interested by the picture and order your food but make sure to put some detail to look nice. If you put a bad picture that will make the customer not going to order your food. You need to always look ahead and see that you are able to fix a problam that is going to happen.
In order to keep the cafe running smoothly and even grow the business you need to have a business plan with good people who work hard and care and you need to be very involved. This will make your cafe a better place. “Take cafe management seriously. Coffee might be your passion, but if you’re running a coffee shop, cafe management had better be your passion, too. You can’t bury your head in a bag of coffee and hope the shop will run itself. You have to learn how to manage a coffee shop”(Campbell). You need to work hard not just hoping it is going to be good, it might be good but only a month after it will be less you should keep it the same level to make sure the food tastes the same that can make people come back. You need to be prepared for what is going to happen and be able to know what to do before it happens.
The details and customer service are very important for a cafe. The detail of the cafe needs to be designed for enough people to get inside and set down. A way for them to walk around and enjoy. Cafe is a place where customers can come and hang out for a while.
You have a small area of space and time to get your customer’s attention, and it’s while they’re at the counter placing their order. You can optimize that area for maximum profit in a few ways. Don’t fill it up with too many signs. If there’s too much to see and read, customers tune the whole area out.The only signs you should have should be professional, easy to read and understand with as few words as possible, and should point people to ordering drinks that have high-profit margins.Only place high-profit items in the ordering area. Lower profit items, like bags of whole beans, can be placed elsewhere.Make add-ons easy to see so that upselling (e.g. asking if they’d like a bagel with their coffee) is easier and more natural for your employees.People have limited attention spans, and at peak times, the ordering area of a coffee shop is hectic. Keep it simple with all things pointing to maximized and streamlined sales. Starbucks gave us the idea of a third place, a place that isn’t home and isn’t work, somewhere different where you’d like to hang out for longer periods of time. It’s a place you feel welcome and comfortable in. (Campbell)
The wi-fi is most important to make customers stay and work so they can order your food as they do the work.
It is very important that you appreciate the customers when they come in and you welcome them. If you show your customers that you appreciate them they will remember and come again.
Customer appreciation days are common in many businesses, and they’re a great event-based way to highlight new products and services as well as celebrate a season or holiday.But you can show customers you appreciate them without always having a big event. Some other simple ways to show your customers how you value them include:Mark down the price of day-old pastries. Give samples of your products to educate your customers on coffee.Use loyalty cards to earn free drinks.Provide free wifi.Have comfortable chairs and even a bookshelf so customers know they’re welcome to hang out a while.Use their name as much as possible during a transaction.Ask customers what they’d like, and adjust your offerings if necessary. Many of these do double duty, increasing sales for you while making customers feel valued. You know what doesn’t make customers feel valued?. When employees don’t make eye contact or acknowledge them at the counter to let them know they’ll be right with them. Or, when they aren’t recognized as regulars, have a cold and impersonal transaction experience, and feel rushed to leave by employees who wipe tables or mop floors around them before closing time. If you put the time and effort into events and practices to make customers feel valued, you need to train your employees on what to avoid as well, or you’ll negate all your effort. (Campbell)
You need to be paying attention to your customers even when you are talking with other ones and when you talk with them make sure your voice is friendly or kind. You should let entering customers know that you will be with you so they know and not feel uncomfortable when there is no one. You should remember the name of the customer. It will make them know that you appreciate them.
You should treat your employees like family, but professionally. Employees need to be treated nicely and let them test food and be able to answer any question when you are not able with other people so that employees can be able to help than become team work. Employees are the most important that you need to work for a long time. If you have bad employees it will make your restaurant not successful. You must train your employees to be good team workers.
Show employees you appreciate them.Your team is valuable. The cost of replacing an employee, both in time and dollars, is high. Show them you appreciate them by:Using flexible self-scheduling wherever possible so they have more control over their work-life balance. Allowing them some fun with creative tip jars that encourage tips.Celebrating special events in their lives.Incentivizing good work and employment longevity.Paying well, and looking for employee benefits you can provide, whether they’re typical or unusual.There are many ways to show employee appreciation; you can’t do everything, but you need to do something. (Campbell)
Let employees do what they do not to rush them and giving them a taste for some of your food is a good way for them to learn because when the customer asks about food what it tastes like they will know how to explain what it tasted like better than being able to tell the customer every detail. Employees need to become your team work and need to be able to know what to do when you are not there right now.
Your team should know what you’re selling. It’s not enough for you to be a coffee expert. You might have all the knowledge of what you’re selling, all the taste notes, and great recommendations for every coffee connoisseur. Your employees have to know that, too. When customers ask questions or want recommendations, employee responses should be helpful and knowledgeable. That means you should not only train them and teach them about your coffee but encourage them to regularly taste your products. Not only does regular tasting make your team more knowledgeable, but it helps them spot changes in taste or quality before customers do. It’s a way to handle quality control while also making your employees capable of helping customers. (Campbell)
Investing in training your employees is investing back in your business. Having someone that you can trust and do good work will make your cafe grow more. It is so important because if you have bad employees like they don’t care about a customer of your cafe it will be a bad thing for your business.
A lot of restaurants close because they don’t have a business plan and have bad locations. What they need to know is the law and the rules that are very important that you need to know of. That is why you need to have a plan, not just have money and then open but you also need to have enough money cause it needs a lot of money to open a business. You need a business plan with a good vibe and employee. Employees need to be someone you can trust and know most everything like if the customer asks the question employees need to be able to answer them then it will become a team worker. Vibe is one of the reasons that customers come to your cafe and if you appreciate or make them comfortable they will come again and have a good drink with good food. You need to have a different account that your money goes to like your restaurant bank account. Having a good location is important with money to be able to start a cafe and away have a reserve money. Everything you use needs to be good quality. If you have a business plan, know the laws, have enough money and a good vibe everything is going to be good for you to open a successful cafe. I also work at small restaurants for my project and know that the more you work the more skill you get. It is going to help you whenever you have a business or another job it will be easier. I learn a lot when I am with my mentor Patty. It feels like she teaches me how to work in a successful cafe even though it is basic work but the basic work you can’t disregard. It is so important that you do the jobs nicely so everything can run smoothly. Location with your ideal of design and your menu board is most important to get the guest to come to your cafe. You need to have a unique vibe and different food in case other cafes are more interesting than yours. Running your own cafe takes a lot of work, but it can be worth it if it is what you really want to do.
Works Cited
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Burns, Patty. Personal Interview. Mentor for Senior Project and Owner of Kuyas Sandwiches + Kitchen.
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