opening a coffee shop in a small town – The coffee shop business, aka coffee shops, is growing rapidly in the past few years.
The third wave of coffee has brought the coffee business to more than just a place for old people to relax.
Young coffee connoisseurs have sprung up and made this drink more than just a consumption but a part of their lifestyle.
As the most consumptive age group, young people who start drinking coffee create great opportunities for business people.
The coffee business is booming. Various concepts, different types of products and ideas give rise to thousands of unique coffee shops around the world. So, how do you start a business to raise capital?
- Understanding Coffee: First, Second, and Third Wave Coffee
- 8 Ways to Opening a Coffee Shop in a Small Town
Understanding Coffee: First, Second, and Third Wave Coffee
Just like humans, the coffee industry has also evolved. Prior to the third wave, coffee had undergone two previous evolutionary periods.
There was First Wave Coffee which started in the 1800s and then followed by Second Wave Coffee which gave birth to a leading coffee chain, Starbucks.
In the first era, coffee was produced at affordable prices and easy to serve. The big coffee producers at that time concentrated more on making attractive packaging and creating practical products.
It was also in this era that the first instant coffee was born. Unfortunately, because everything is practical, First Wave Coffee has been criticized for its poor quality.
Second Wave Coffee was born because of the protests over poor quality coffee that sprang up in the first era.
Coffee lovers today want good, quality coffee and know where it came from. More than just one cup of delicious coffee, people are curious to know about the roasting process and how the term “specialty coffee beans” came about.
Just like First Wave Coffee, this second wave of coffee also received strong criticism. a drinking ritual associated with social life.
The coffee business is mushrooming and people are starting to think that coffee is an inseparable part of their lifestyle. As a result, the true taste of coffee is the reason many people drink it.
At first glance, Third Wave Coffee sounds similar to Second Wave Coffee. Especially about how people view coffee as a lifestyle.
But in this third era, more than just a thirst-quenching drink, sleepy and part of a lifestyle, people are starting to discover new values from coffee beans.
Like wine, coffee is starting to be seen as a product. works of art. The audience began to be interested in coffee beans, where they come from to how they come from pi is processed.
At this time, there were many reactions about coffee that tasted bad to the way it was served which was considered wrong. The role of farmers as producers of coffee beans to baristas as compounders is an important key in this era.
After knowing how this third wave coffee trend, you will understand what kind of coffee the market needs. That way, designing the concept will be much easier.
8 Ways to Opening a Coffee Shop in a Small Town
In 2017-2018, Indonesia was in fourth position after Colombia in the list of 10 countries with the largest coffee production in the world.
With such great potential, apart from importing, the coffee business is the answer to maximizing our coffee bean production. How to start a profitable business? Check the following tips!
1. Create a Solid Business Plan
The first step before starting a business is to create a business plan. This plan includes several important things such as:
- What concept do you want to offer?
- How do you get profit?
- Who is your target market?
- Have you checked who your competitors are?
- What promotion strategy will you do?
The first point is the most important consideration as the foundation of your business. Why? Currently, there are many coffee businesses with various concepts out there.
If you can’t present something different, you may find it difficult to survive in an increasingly competitive market.
Confused to determine how the concept is suitable for your business? There are several coffee business models that can be used as a reference:
- Coffee Kiosk. Using a coffee machine and a small booth, you can sell coffee to passers-by/commuters with the takeaway system
- Coffee house. Coffee house is a coffee business model that has emerged and has been expanding since Starbucks was founded. This concept is now widely used by coffee entrepreneurs. You have to be more creative by serving something different in order to stand out
- Café Bistro. This business model does not only rely on good coffee, but also food with high quality and affordable prices. Café bistro also usually provides entertainment (such as live music etc.)
- Coffee Roaster. Macehat is an example of a successful coffee roaster from Medan. The business concept is to provide quality roasted coffee beans. The target is not only individual coffee lovers but also cafes that need coffee beans to restaurants and supermarkets. They also opened a cafe where shoppers could taste the coffee blend directly. For a business model like this, make sure you have direct connections to farmers or at least a trusted coffee bean producer.
Those are just a few examples of coffee business models. How you develop and how you execute also affects the success or failure of your business.
2. Find the Right Location
Any business, requires the right location to be successful. You may already be eyeing a trading center.
Or there could be a place near campus that you think fits your target market, namely students. Do a little research on what your prospect’s consumption patterns are and whether there are competitors in the area.
Jack Wilson, owner of Radio Coffee and Beer, Texas admits that finding the right place can’t be done in one day.
He and his team walked through the city, even counting how many people passed through the area. Wilson is also deliberately looking for a former restaurant building so that he doesn’t have to build his cafe from scratch. You can try to apply these tips and tricks to find the best location for your coffee business.
3. Make the Divisions in the Building Well
You may just want to open a small coffee business. But no matter how small it is, you have to manage the division of space so that all business activities can run well.
How many chairs do you need? Is there enough space for shoppers to queue? What about the space for employees to move to the warehouse and storage area, is it flexible enough?
In addition, the position where you put things is also very important. Imagine the scenario: You want to make coffee, what objects should you have near you?
If you were a customer, what additional amenities would you like to have close to the table? Visualize everything and write down the contents on paper.
4. Use Professionals
You may have thought carefully about how your business will run. But to access it, it takes a touch of professionals in it.
If you want to showcase the concept as the selling power of your coffee business, then invest more money by hiring an interior designer.
One more thing that is often overlooked by novice entrepreneurs is miscalculation of expenses so that the budget prepared is not enough. One of the suggestions given by Wilson is to use the services of a professional accountant.
By leaving these vital issues to the experts, you can focus on growing your coffee business instead of worrying about finances.
5. Do Your Research Well
Not only for shopping for chairs or coffee machines, before starting your business, you should know which supplier provides coffee beans at lower prices with good quality. Be diligent in doing price research.
For furniture and other equipment, you can do this by checking prices online. You can also walk from one store to another to compare prices.
As the most vital part of your coffee business, finding a quality raw material supplier is not an easy matter.
Especially if you are completely new to this field. You can seek advice from people closest to you or from acquaintances who have previous experience in this business.
6. Build the Widest Network Possible
There is no successful fisherman who has never been to the sea. Likewise with business people. If you want to open a coffee business, you must have experience visiting coffee shops around you. At least to a cafe that has a concept that is more or less similar to the one you are planning.
In addition to research purposes, you can also build a relationship with the owner. If you are good at being friendly, it is not impossible that they will share their experiences. Even better, from them you can find a wider network.
Networking isn’t just about people you think are at the top. Building a network with the surrounding environment, including with potential customers will greatly help the development of your coffee business.
Join a charity event near your place of business. Show yourself and the existence of your business, that way, there will be more and more customers that you can attract.
7. Start Marketing Before Your Stall Opens
If you think that a new marketing strategy can be implemented when the cafe is open, then you are far behind.
If you want the public to feel interested in coming on opening day, do promotions well in advance of the opening. Some cheap marketing options that you can try include:
- Giving free coffee through several stores around you with a flyer to promote
- Creating social media accounts. This is an easy, cheap and effective promotional option.
- Attend local events, distribute coffee samples before opening day.
- Share coupons with local communities with special promos on opening day.
Don’t forget to take advantage of the presence of local media to introduce your coffee business.
8. Don’t Hire Too Many Employees
A business will definitely run with the help of many employees. But for starters, it’s a good idea not to force yourself to recruit too many people.
For the first month, if available, use the services of close friends or family. Slowly, then hire new employees to help. You can also read articles on tips to avoid mistakes when recruiting employees for beginners.
Finding experienced employees can be difficult. No matter how well your candidate performs at the interview, you don’t know if he or she is a good fit for the position you need.
Watch their performance closely and don’t hesitate to dismiss them if their presence doesn’t help. Instead, give more appreciation if it turns out that your new staff is able to exceed expectations.
Those are 8 tips for starting a coffee shop business, hopefully it will be useful,,,