So let's come on the topic
Good news: In this article we will guide you through each & every step which will guide you make your business creation project a reality.
Must Carry out a market research to open a café
I think the initial which you should take is to to develop a market study to validate the existence of a business opportunity in the area of establishment.
How you have to carry out this research:
1.Analyze the evolution of the sector: 2.Current Growth
3.future trends,
4.competitive intensity
Study the needs and expectations of consumers: who visits cafes? On what occasions? How frequently? What is the average budget? What are the expectations in terms of products (coffees, teas, pastries, etc.) and services (free wifi, sale on the spot or to take away, etc.).
Analyze your competitors locally: how many are there? Where are they located? What do they offer? At what price? Do their companies seem to be doing well? Are their terraces empty or full?
Focus on the coffee market
Coffee consumption
It is estimated that coffee consumption worldwide has doubled in 20 years ( Ouest France ).
According to the ICO, International Coffee Organization, in January 2020, the ICO composite indicator reversed its gains from December, averaging 106.89 US cents/lb as prices for all group indicators fell. Exports in the first three months of coffee year 2019/20 decreased by 5.8% to 29.01 million bags compared to 30.78 million bags in 2018/19.
The director of the OIC optimistically affirms an increase of 25 million bags for the next 10 years ( Les Echos ).
But, does the increased consumption of coffee in the world benefit businesses?
Coffee in a few figures
A café is an establishment in which drinks, alcoholic or not, are sold, to be consumed on the spot, or to take away.
In 2009, the overall turnover of coffee shops and drinking establishments was estimated at 6.7 billion euros.
In addition, there were almost:
40,000 coffees.
30,000 drinking places.
10,000 coffee shops.
2,000 creations per year.
Knowing that there were almost 200,000 cafes in 1960, it is clear that the coffee market is down.
The most profitable trends
Small neighborhood cafes collide with the installation of coffee shops. According to the Euromonitor International study, there are ( www.neorestauration.com ):
100 operators in France.
€ 38.2 million in turnover
200% growth in five years.
On the other hand, the trend is for take-out. Indeed, the French are changing their little habits!
Coffee regulations
Please note, if you want to create a café, know that this type of business is strictly supervised.
Especially if you want to sell alcoholic drinks. In this case, you will need to obtain a license. To do this, you will be required to undergo specific training, obtain an operating license and make an opening statement. On the other hand, make sure that the area is not protected by prefectural decree. It is indeed forbidden to open a café (for the sale of third category drinks) near certain places: hospital, retirement home, stadium, swimming pool…
If you just want to sell non-alcoholic drinks, for example by creating a coffee shop, the regulations are a little more flexible. However, you will have to comply, among other things, with the rules on the display of prices and respect the safety standards applicable to establishments welcoming the public.
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Open a franchise café?
Market research is also an opportunity to reflect on the concept of your coffee. As such, you will have to look into the question of the franchise in particular.
Is it advantageous to be a franchisee?
The answer is undoubtedly positive. Indeed, between the immediate notoriety of the brand, the prices negotiated with suppliers by the central purchasing office of the network, the support throughout your project, and the proven commercial strategy proposed by the brand, undertake franchising greatly limits the risk of the project.
In addition, you can take advantage of the current trend of coffee shops by becoming, for example, a Starbucks franchisee. If you are interested in this option, please note that you will have to pay 35,000 euros in entrance fees, in addition to the annual fee. Finally, a personal contribution of 300,000 euros is requested ( www.toute-la-franchise.com ).
If you prefer to remain completely independent, why not have a coffee again? This will keep the clientele of the former owner.
Where to open a cafe?
The location of your coffee will determine the profitability of your project.
You have two options here:
choose a local in the city center: you will then benefit from high visibility and a significant passage, at the price of high rent and competition
choose an eccentric room: you will then target a neighborhood clientele, office workers or local residents. Conversely, you will benefit from lower rent and less competition than in the city center.
To help you make your decision, we recommend that you use the results of your market research here.
Choosing the legal form of your coffee
Once the premises are found, it is important to think about the legal status of your future business.
The choice of your status will have important consequences at the financial, fiscal and legal level.
First of all, ask yourself if you want to create a coffee alone or with partners? In the first case, the sole proprietorship (EI) and the sole proprietorship with limited liability (EURL) may be good options.
The means necessary to open a café
Material means
The initial investments to open a coffee shop or a traditional cafe are quite significant, you will have to plan in particular:
Renovation or refurbishment works for the premises
Furniture: tables, chairs, counters, possibly furniture for the terrace
Equipment: percolators, dishes, dishwasher, cash register, payment terminal, etc.
Marketing investments: brand, website, etc.
From stock: coffee, teas, paper towels, cardboard cups, food products, etc.
Human resources
On the side of personnel needs, the number of employees will strongly depend on the size of your cafe.
You will mainly need waiters, in the dining room and at the counter, these will eventually need to have undergone barista training if you open a coffee shop. Choose experienced staff with good customer contact here.
You will also need staff for management and marketing. Do not underestimate the work to be done at this level: management of timetables, pay, accounting, stocks, your communication ... the tasks to be performed are numerous. If necessary, consider delegating part of it to a chartered accountant or a marketing agency, for example.
Don't start with a blank sheet!
Over 35 business plan models to inspire and guide you in writing
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Marketing plan to open a cafe
Last step before creating your coffee business plan: the marketing plan.
Your goal? Promote your coffee and build customer loyalty.
The location of your business will play a decisive role here. However, even if your place is very busy, you should not be satisfied with it.
To promote your establishment, you can in particular consider the following actions:
Create a showcase website and perform natural and / or paid referencing
Communicate on social networks to develop a community
Set up a loyalty program: free coffee after 10 orders for example
Communicate in local media: newspapers or radio
Get listed on specialized directories (paper and internet)
Invite bloggers about the theme of going out ideas to do an article on you
To help you prioritize actions: remember to assess the amount of work required, the potential impact, and the cost associated with each initiative.
Create a business plan for a café
Your marketing plan developed, you can now carry out your coffee business plan.
The business plan for a café consists of two parts: A written part used to present the project in detail, And A financial plan highlighting its profitability potential.
The business plan will help you to verify that you have not forgotten anything in the construction of the project and that it is financially viable, but above all, it will serve to convince your financial partners.
If you are not used to writing business plans, a good solution is to use online business plan software .
Using specialized software has several advantages:
You are guided in writing by detailed instructions and examples for each part of the plan
You can take inspiration from already written business plan models
You easily realize your financial forecast by letting the software take care of the accounting aspects for you
You get a professional document, formatted, and ready to send to your banker
If this type of solution interests you, know that you can try our software for free by registering here .
Get funding to open a cafe
The business plan of your coffee in hand, it's time to start looking for financing.
Several options are available to you here, you can in particular:
Trying to obtain bank financing, be aware that obtaining a loan for a business creation is not always easy
Approach private investors: your relatives or business angels
Start a crowdfunding campaign, which is also a good way to get people talking
Seek to obtain financial assistance: subsidy, lightening of the burden, or tax credit
To find out more about each of these options, you can consult our guide to financing a project .
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