Coffee is the drink of choice for most Americans. According to data trends compiled by the National Coffee Association, 60% of Americans had consumed at least one cup of coffee in the past day, more than any other beverage, including tap water. Because of this, coffee shops are one the fastest growing concepts in the restaurant industry, with a global market expected to reach $237.6 billion by 2025.
So, investors looking to open a coffee shop will have a large market to draw customers from. But, like any business, there are costs to consider — some you may not have thought of.
The type of coffee shop you are interested in opening will directly impact the cost. For instance, a coffee truck is less expensive than a drive-thru kiosk, which is less expensive than a sit-down coffee shop. With a sit-down shop, you have the cost of décor and furnishings, which you don’t have to worry about with the other coffee shop models. A large sit-down coffee shop can cost between $200,000 and $375,000 to set up.
Location also plays a role in the cost of running your coffee shop, as rents are more expensive in areas where the residents’ incomes are greater.
The quality of the coffee you serve your customers is another cost you need to consider. If you are operating an upscale coffee shop in a high-end neighborhood, you’ll probably want to spend more on a better-quality coffee bean. You also need to consider whether you want to roast the beans yourself. This will require additional funds to buy a coffee roaster.
The fixed expenses associated with the cost of running a coffee shop are things that don’t change month-to-month. They include rent (or your loan payment, including interest), insurance, utilities, and labor costs (employees’ wages, insurance, and payroll taxes.) You might employ an accountant, or you might partner with a company to handle payroll. You’ll probably need a janitorial service to clean the store on a regular basis.
Variable expenses are directly proportional to the amount of sales you have each month. These include the coffee itself, disposable cups (including lids and sleeves), stirrers, milk and plant-based milks, flavoring syrups and other condiments, bottled water, and any food products you sell.
It’s important you don’t overlook marketing and advertising when calculating the monthly cost of running a coffee shop. Most markets are saturated with coffee shops. If you don’t have a recognizable name and a strong brand, you need something to make you stand out so customers don’t drive by your business and buy their coffee at one of your competitors.
One of the benefits of franchising with Scooter’s Coffee, rather than opening your own coffee shop, is being associated with our strong brand. We are known for our kiosk model that provides high-quality products with fast, friendly service. And we provide the marketing support to make sure potential customers in your area are familiar with your location and the products you sell.
We are also able to save you money on those products. We have built our own distribution company, Harvest Roasting. Because we buy supplies in bulk for the entire system, it costs franchisees much less than if they were buying the same items on their own as independent store owners.
If you are interested in becoming a Scooter’s Coffee franchisee, fill out the form to request franchise information today. We’ll answer all your questions about the cost of running a coffee shop and the financing available to help you with those costs. We’re always looking for enthusiastic entrepreneurs to join the Scooter’s Coffee fam