Choosing the correct location is a major consideration when aiming to achieve one’s ambition of owning a coffee shop. The position of a cafe, or almost any type of business, is extremely important in how successful it will be. Picking the correct spot is essential for any successful commercial venture.
Demographics – The Who
Who should you begin your coffee shop business with? Investigate who is in the region you are considering. Certain demographics are likely to have a greater demand for coffee than others. For this reason, you should search for a spot that has a larger concentration of the individuals we are discussing. Examples of people could be college students, parents, people who go shopping, and many employed people.
College Campuses
Institutions of higher learning such as universities, community colleges, and trade schools have populations of students who consistently put time and effort into their schoolwork, typically resulting in insufficient amounts of rest. In this study, the vast majority of students (92%) drank caffeine in some form during the school year, with coffee being the most popular choice.
Grade Schools
In proximity to preschools, elementary, middle and high schools would be ideal sites to open a coffee shop due to the abundance of parents and teachers present during school hours. Most weekday days, parents will be arriving to drop off or taking away their children. Teachers, notorious for their coffee habits, might appreciate the chance to add a bit of energy to their morning before facing the day.
Shopping Malls and Centers
Large malls make ideal spots for coffee shops, as long as they don’t have a lot of other coffee places nearby. We’ll get to that in a minute though. Purchasing and coffee go together no matter if it is for clothes, presents, food, or any other kind of product. Attempting to locate a place near to a big shopping center is a no-brainer.
Business Centers
Lots of individuals who work conscientiously delight in drinking coffee and are usually quite occupied. If you opt for a spot that is easily accessible for people in the labor force to quickly buy and enjoy their favorite caffeinated drinks, it would help your coffee shop’s success immensely.
Competition – The What
It is essential for you to be aware of the level of competition in the particular area you are considering. If you start a coffee shop or other related coffee business in a place where there is already a lot of competition, then it is less likely that your business will be successful. In this section, we’re going to explore locations by looking at the things that you don’t want to find in the vicinity of your chosen coffee shop site.
No or Few Chain Store Coffee Shops
There are some big names in the coffee industry. It is well understood who the major players are in the coffee industry, so it is unnecessary to name them, however, it is important to note that the most influential businesses account for roughly 70% of all earnings in the industry, as reported by chron.com. Pick a spot that is away from any large corporate stores if that is possible.
No Close-by Drive-Thru Shops
Whether you are considering having a drive-thru for your coffee shop or not, you should stay away from a location that is in proximity to other coffee shops that have drive-through windows. If Samwise is the only store offering a drive-thru, it must be the only one in your shop. If you don’t possess one, it will be difficult to contend with shops that do. Going through a drive-thru is an attractive choice for many due to its ease and convenience.
No Gas Stations
Consider this odd proposal for a moment. The vast majority of us have taken a break to fill up the car with fuel, then gone in the building to purchase a hot beverage. Gas stations may offer some excellent coffee options at a small amount of the cost that would be charged. Avoid selecting a spot that is close to a petrol station.
No Existing Locally-Owned Coffee Shops
Explore areas where there are not already many locally owned cafes. Private coffee establishments are appealing due to the fact they have their own individual flair and offer special items on the menu. If there are already espresso bars managed by local proprietors prospering in the vicinity, it’ll be difficult for you to make your shop a top pick.
Neighboring Businesses – The Where
Therefore, we discussed certain firms that offer coffee that it would be sensible to not establish close to. Let’s discuss businesses situated near you that can potentially increase your profits. These companies are situated in desirable places of business.
Piggyback Businesses
Pick a spot for your coffee shop that works well with a nearby enterprise. Basically, the two businesses will mutually utilize and benefit from each other. The presence of another business in the vicinity will contribute to your sales, and your sales will drive theirs as well. It would be beneficial for you to be in close proximity to bakeries, sandwich shops, gyms, and boutique stores (if you do not carry those items).
Bookstores/Libraries
A coffee shop should be located near any type of spot where individuals will be studying or reading. Generally, patrons in this sort of establishment remain for an extended length of time. It’s conceivable that you might have more than one sale come from an individual customer during their one stop. This could be an effective way to increase your earnings. You could think about constructing a library inside your cafe. Click here to find out how.
Businesses With a Wait
There are certain kinds of businesses in which customers must be patient while waiting. This provides coffee shops with a great chance to generate income. It is common to get a cup of coffee when we are waiting for something. Search for a spot near auto repair shops, beauty parlors, animal care facilities, or transport hubs. There will be folks at these locations glad to have the convenience of a coffee shop close by while they wait.
Family Fun Venues
Many businesses provide services specifically designed to make family time enjoyable. Parents who have children of any age tend to be heavy coffee drinkers. Whether they are heading out to the zoo, an aquarium, the park, or one of the current trend-setting play areas, a lot of moms and dads will likely want to pick up a caffeinated drink on the way. This place will certainly earn you some business.
Traffic Times – The When
You must take into account the spot in addition to which periods of the day are usually busiest there. Not all locations are busy at the same time. If you only intend to be open during a certain period of time, you must select a spot that attracts customers during the times at which you’ll be running your business.
Busy Morning Commute Routes
It is logical for a coffee shop to open at the beginning of the day when individuals are starting their activities. Morning is by far the most popular time of day for consuming coffee, although some individuals do opt to drink it at other points in the day. Pick a spot that is easily accessible on a typical rush hour trip.
Lunch Rush Areas
Anyone who takes a break from work to get something to eat during lunchtime is familiar with the high level of activity found in areas with delicious eating choices. Think about it though. Now is a great opportunity for those who did not get much rest, or those who love having caffeine throughout the day to recharge their energy with a hot cup of coffee or a cold coffee drink. Open a business in this area to provide what the customers need.
Night Shifters
There are certain professions that involve people who work non-stop. If you don’t mind being available during times when the business is closed, then this presents a fantastic chance for you. You could be a preferred place for anyone who has to stay up late. Locate areas near medical centers, warehouses, supermarkets, and retailers.
Busy Evening Routes
Individuals often have different routes that they take in order to get to work in the morning and a different set of roads to get back home from there in the afternoon or evening. Places that are situated along the way back could be sensible options as well. Individuals may have projects to complete outside of the normal hours of business, or they may opt to have a pleasant cup of coffee with a coworker post-work. Grabbing a delicious coffee to go might be tempting if there is more work to do when you get home. Make sure you look into this option, too.
Cost of Living – The How (Much)
When deciding on a spot, you must also consider your financial situation. Some areas will be more expensive than others. The expenses associated with living in a particular region will play a key role in determining the prices of the items you offer on your menu. You will need to evaluate the different places to set up business from the point of view of the financial implications, from the cost at the beginning to your expense and revenue in the long run.
Urban Areas
Urban and highly populated cities usually have more expensive costs of living. This implies that it will be more expensive to begin in this market, as well as more costly to keep it functioning and to pay rent or mortgage payments. You don’t want to bankrupt yourself from the get-go. If you can’t afford the costs of setting up a business in the local area, consider going into an alternate sector. Nevertheless, if you endure this kind of market, the possibility for major gain is immense.
Rural Areas
Rural communities can offer a great opportunity for coffee shop businesses to turn a profit without having to invest exorbitantly, provided that the requirements of the locals are properly ascertained. Some rural areas are better than others. Think about if it is a place that people have to go through on their way to major cities for their job. You can set yourself apart from other city coffee shops by providing menu items that they don’t offer. People will hear about the fact that you offer something unique that makes it worth their time.
Suburban Areas
If you want to begin a cafe in a region with a high amount of people passing through but won’t be expensive to set up, then target a spot in the outskirts. Generally, you can expect real estate prices to be lower and rental payments to be less. You can still present a style and selection of dishes that would be enjoyed in an urban area. Suburbs are great places for coffee shops. Think carefully about the other choices we have considered when choosing a spot.
Small Towns
Small towns are known for everyone knowing everyone else. They have a strong inclination towards aiding small businesses because the locals are very proud of their neighborhood. Living expenses are typically minimal in small towns, so starting a coffee shop in a place like that shouldn’t break the bank. Many places lack a coffee shop, so you could become the first to establish one.
This has a great amount to ponder, however, this involves your source of income. When selecting the place for your cafe business, it is advisable to take into account as many elements as possible for your best interests. The spots we’ve gone over in this article are what we think are the top prospects for this sort of company.
When deciding on a spot for your business, you should consider the presence of factors such as large amounts of footfall, additional businesses that complement yours, and a high concentration of coffee drinkers. Take into consideration what you don’t want in proximity, such as other coffee houses, competitors supplying coffee, and better suited coffee places. Select a place that matches these 20 ideal areas to launch your coffee shop so you provide your business the ideal backdrop for achieving success.