Start Brewing: 9 Steps to Start a Coffee Shop in India
In the past decade, the cafe and coffee shop segment has flourished in India, with several international and domestic brands entering the market. According to IBEF (India Brand Equity Foundation), India attained the tenth position among the world’s fastest-growing business sector for retail coffee chains in 2018!
As the coffee culture keeps brewing in India, it’s time for coffee connoisseurs to take a footing and manifest their dream of running a cafe into reality.
Nonetheless, starting a coffee shop from scratch requires a thorough business plan, with an equal investment of the heart and mind.
Steps to open a Coffee Shop in India
Opening a coffee shop needs meticulous planning, both in terms of capital and time. Substantial investment and marketing skills are a couple of areas you will need to focus on apart from, of course, brewing outstanding coffee.
Following is a checklist that will allow you to formulate a definitive approach towards setting up your new coffee shop business.
Take a look!
Start with understanding the intricacies of coffee making
Coffee is often an acquired taste. The best-served coffee is thus by the one who understands the niceties of excellent brewing. From understanding the methods of roasting to the different techniques of preparing coffee, learn how to take care of each intricacy.
Similarly, the choice of brewing equipment also contributes significantly to the quality of coffee produced. Choose equipment that can help you brew the perfect coffee. For example, espresso can be served better with a top-quality grinder machine.
Plan out fund requirement, from renting space to serving brew
A comprehensive coffee shop business plan includes allocation of funds to different avenues, like renting a space to sourcing coffee beans and installing the best-in-business coffee makers.
Take decisions as per your budget and your expectations from the business.
As per Brewbakes, the following are some estimated expenses of coffee businesses that you can look into –
- Coffee kiosk – INR 6 to INR 10 lakh
- Coffee out of a food truck – INR 3 to INR 6 lakh
- Coffee shop with seating – INR 10 to INR 30 lakh
Zero in on the location
Finding a place that is affordable as well as convenient for business can be a tough task.
The location also reflects the vibes that you want to project to your customers. The best locations for setting up your cafe is a decision that speaks about your idea of a coffee shop as it does with what your customer is looking for. The questions you need to ask yourself is:
- Whether you want it to be accessible for people to work out of it?
- Want it to have a cosy corner for reading while sipping your coffee?
- Do you want it to be an comfortable hang-out spot for visitors?
- Or simply want people to visit your place for the best coffee from anywhere in the city?
Check out your competitors and identify your differentiators
One of the most crucial steps of opening a coffee shop is to gauge your competition. Visit each store in the periphery before setting up your shop. By doing this, you will know what they are offering – in terms of ambience, menu and as a brand. To add appeal to your customers, try to deviate from what your competitors are offering and serve something unique.
Create a unique brand for your business
Good brands are pivotal to telling a story. It can help you effectively make a lasting impression on your potential customers. To do this, design a logo, print out memorabilia and create the interiors of your shop to match your brand’s story.
Choose between roasting coffee and buying it on wholesale
Roasting coffee is a good idea. You will have control over the quality served to your customers. However, it will require a substantial upfront investment right at the initiation of your coffee shop business and have labour costs involved.
Buying wholesale coffee, on the other hand, is more expensive in the long run. Choose what suits you the best.
Create an interesting menu
Choose a menu which best reflects the kind of coffee shop that you have. For example, if you want to have a kiosk near a busy business street, having complicated sounding names like ‘double roasted diet vegan chocolate matcha’ might not fit in. However, that would work perfectly if your shop is located amongst high-end brand shops which specific clientele frequents.
Also, apart from the variety in coffee, do not forget to add food that complements the served coffee for good measure.
Start marketing your business before you open
Start campaigning for your business months before you set up the shop. Social media makes for an excellent medium to reach out to the masses.
Posting pictures and video of your shop will help you to engage with your targeted customer base actively! Announce discounts and other promotional activities to create the buzz about your coffee shop, especially in the first couple of months.
Brew your beverage in style
Your coffee shop business plan is not complete until you get your brew of coffee right!
To get this step right, practise on brewing the best coffee and keep experimenting until you get it right!
You must also look for efficient people, well-versed with the intricacies of coffee brewing to help you out.
Below are a few other important reminders for you –
- Take note of the licenses and registration that you will need to acquire for the business. Some of them include the company registration, FSSAI (Food Safety and Standards Authority of India) License, health trade license, license for eating house, GST registration, trademark registration, insurances, etc.
- Setting up a new venture and making profit takes time. Proper planning and precise execution will help you glide through the initial phases and start churning revenues at the earliest.
Happy brewing!
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