Wondering how to start a cafe? Starting a cafe isn’t straight forward. From finding the right location and designing the perfect menu, to managing finances and hiring staff, there are countless factors to consider when launching a successful cafe business. With the right planning, execution and guidance you can create a cafe that not only meets the needs and preferences of your market, but most importantly something that will be profitable.

How to Open a Cafe That Stands Out in a Crowded Market

This comprehensive guide on how to start a cafe will walk you through what i believe are the most important considerations in moving forward with starting your cafe.   I’ll cover everything from identifying your market and developing your concept, to obtaining the necessary licenses and permits, finding funding, and creating a solid marketing strategy. I’ll start by discussing the importance of market research and analysing the competition, to help you identify a profitable market and target audience.  We’ll look at designing  the interior and exterior, as well as how to create a menu that features high-quality, affordable, and unique offerings.

I’ll guide you through the legal and financial aspects of how to start a cafe. Looking at obtaining the necessary licenses and permits, securing funding, and managing your finances effectively. We’ll also provide advice on finding the right staff and training them to provide excellent service that keeps customers coming back. We’ll also look at marketing and strategies you can use to promote your cafe. We’ll discuss social media and email marketing, events and strategic partnerships.  We’ll provide actionable tips and ideas to help you develop a strong online and offline presence that drives traffic to your cafe.  Wow that’s a mouthful, but we’ll get through it.

How To Open A Cafe

1. Conducting Market Research

Defining the target market

The process of launching a successful cafe demands a fundamental understanding of your target market. Your ability to discern your ideal customer will determine your capacity to satisfy their demands and preferences with customized products and services. Failing to grasp your target market with clarity may lead to an unappealing cafe that is not competitive enough in the marketplace. To define your target market, you must initiate comprehensive research and analysis. It is necessary to accumulate relevant data about the demographics, behaviours, and psychographics of potential customers. This information will be useful in creating a detailed profile of your ideal customer.  Include details such as age, gender, income level, education level, location, interests and habits.

Surveys, focus groups, and online research are reliable ways of obtaining information about your target market. By enquiring about their preferences, needs, and pain points regarding cafes, you can collect valuable insights that will shape your business decisions.

One of my favourite resources for market research is the Australian Bureau of Statistics. Honestly it’s great, throw in the details of the city you need info in and you’ll get some great insights: https://www.abs.gov.au/census/find-census-data/search-by-area

Once an in-depth comprehension of the target market has been attained, you can commence tailoring your product, service, and promotional endeavours to meet the local client desires and inclinations. For instance, if the demographic at hand comprises of health-conscious millennials, it would be smart to provide a menu that comprises of plant-based choices, gluten-free alternatives, and cold-pressed beverages. Additionally, a social media advertising plan that accentuates the eatery’s devotion to sustainability and communal participation should be formulated.

Examples of ideal target markets for cafes include:

• Working professionals: This group values convenience, speed, and quality, and may be interested in grab-and-go options, mobile ordering, and business catering services.
• Students: This group values affordability, variety, and social spaces, and may be interested in study-friendly environments, free Wi-Fi, and loyalty programs.
• Health-conscious individuals: This group values natural, fresh, and organic products, and may be interested in smoothies, salads, and vegan options.
• Families: This group values kid-friendly environments, affordable prices, and healthy options, and may be interested in play areas, high chairs, and family-friendly events.

Analysing the competition

In the initial stages of starting a cafe, it’s super important to conduct an analysis of the competition. This process aids in comprehending the prevailing market trends, spotting gaps in the market, and setting your cafe apart from others in the vicinity. By delving into the competition, you can amass valuable insights that will guide your business decisions and amplify the likelihood of success. To scrutinize the competition, you must first identify other cafes within your area that are targeting the same audience as you. Once identified, you need to evaluate their strengths, weaknesses, and unique selling propositions.

The way to do this is by conducting a SWOT analysis, which analyzes Strengths, Weaknesses, Opportunities, and Threats. Start by looking at their strengths, which could include things like s their menu offerings, customer service, and brand.  Ask yourself ‘what makes them stand out from other cafes in the area? What are their unique selling propositions?’  This way, you can find out what they do well and what sets them different from the competition. Next, it’s time to analyse their weaknesses, which could encompass their pricing strategy, marketing efforts, and location. You should ask questions like, what are their pain points? What could they improve on? What do their customers complain about? By identifying their weaknesses, you can avoid making the same mistakes and set your cafe up for success. Thirdly, look for opportunities that your competition presents to your business, such as untapped markets or unfulfilled needs. Ask yourself questions like, what needs are not being met by the competition? What gaps are there in the market? What are the emerging trends in the cafe industry? Identifying such opportunities can help you gain a competitive edge. Finally, consider the potential threats to your business, such as their pricing , marketing, and maybe their brand image. Ask yourself questions like, what are the potential barriers to entry? What are the competitive pressures in the market? What external factors could impact the industry? This way, you can prepare for potential challenges and stay ahead of the curve.

Identifying the unique selling point of the café

Finding your cafe’s USP sometimes requires that you take a step back and think about what makes your business special. Maybe you offer a one-of-a-kind menu item, what I like to call a ‘hero’ item that’s not available anywhere else, or perhaps you have a great atmosphere that customers love. Whatever it is that sets you apart, make sure to focus on it in your branding, staff training and marketing efforts.

Your USP should be something that resonates with your target audience and makes them want to choose your cafe over others. It can be tricky finding your USP, but once you do, it can be a game-changer. A bit of market research can really help to get a better understanding of what your customers want. Use this information to tailor your offerings and develop a USP that’s authentic and resonates with your target audience. Remember, your USP should be something that your competitors can’t easily replicate.

Here are some examples of possible USPs that you can consider for your cafe:

• Specialty Coffee: Offering a unique blend or roasting process that is different from other cafes in the area.
• Locally Sourced Food: Using locally sourced to create a unique farm-to-table experience.
• Aesthetic Design: Creating a visually appealing cafe interior that creates an inviting and memorable atmosphere.
• Community Involvement: Hosting events and fundraisers to support local charities and create a sense of community.
• Sustainable Practices: Using eco-friendly practices to appeal to environmentally conscious customers.
• Fast and Convenient Service: Offering speedy service for customers who need a quick caffeine fix on the go.

• Personalized Customer Experience: Creating a personalized experience for each customer, such as remembering their name and preferences.

A USP doesn’t necessarily have to be unique, but it will need to be something that you’re clearly doing better than everyone else.  Lets say there are other cafes in the area that also offer specialty coffee, you’ll need to have the better coffee or the most knowledgeable baristas. It’s also important to keep in mind that your USP should be authentic and reflect your brand values. For example, if your cafe values sustainability, your USP might be to provide an eco-friendly experience by using only biodegradable cups and straws.

Once you have identified your USP, it’s important to communicate it clearly to your customers through your marketing efforts, branding, and customer experience. By doing so, you’ll be giving your customers something to tell other prospective customers about.

How To Open A Cafe

2. Creating a Business Plan

Defining the concept of the café

Defining your cafe concept is a critical step in developing your business plan. It must include your vision, the style of food and drink, as well as the ambiance and customer experience you aim to create.

When crafting your cafe concept, it’s crucial to consider your target market and what will resonate with them. For instance, a concept that could entice busy young professionals in a bustling city might be a cafe that specializes in coffee and offers a grab-and-go menu for quick and convenient meals. On the other hand, a cafe located in a residential area might focus on creating a warm and inviting atmosphere with a menu that has comfort food and irresistible baked goods.

Remember to take time to contemplate your concept thoroughly and ensure that it aligns with your brand values and target market preferences.

Here are some examples of possible cafe concepts to consider:

• Specialty Cafe: A cafe that specializes in a specific type of coffee, tea, or other beverage.
• Health-Focused Cafe: A cafe that offers healthy and nutritious food and drink options, such as smoothies, fresh juices, and salads.
• Bakery and Pastry Shop: A cafe that specializes in baked goods, such as bread, pastries, and cakes.
• Family-Friendly Cafe: A cafe that offers a welcoming atmosphere for families with young children, such as a play area or kids’ menu.
• Co-Working Cafe: A cafe that offers workspace for freelancers and entrepreneurs, with amenities such as free Wi-Fi and power outlets.
• Wine and Cheese Cafe: A cafe that specializes in wine and cheese pairings, with a cozy and sophisticated atmosphere.
• Artisanal Cafe: A cafe that features locally sourced and handcrafted food and drink options, such as artisanal cheeses, bread, and craft beer.

Once you’ve got your concept right you can begin to develop your menu, brand identity, and marketing strategy. By defining your concept early on, you’ll be able to create a cohesive and memorable customer experience that will help your cafe stand out in the market.

Establishing a budget

When creating a business plan for your cafe, you need a budget to determine the startup costs and ongoing expenses. You’ll also need to be clear on whether or not you’re going  to buy an existing cafe or start from scratch. Buying an existing cafe might be more expensive upfront, but it can come with a pre-existing customer base and revenue stream. Starting from scratch can be less expensive, but you’ll need to account for the costs of equipment, furniture, and marketing .

When creating a budget for your cafe, it’s important to consider the following expenses:

• Startup Costs: This includes costs such as rent, equipment, furnishings, initial inventory, and permits and licenses.
• Ongoing Expenses: This includes costs such as rent, utilities, payroll, insurance, and ongoing inventory.
• Marketing and Advertising: This includes costs associated with promoting your cafe and attracting customers, such as website development, social media marketing, and print ads.
• Contingency Fund: It’s important to factor in a contingency fund to cover unexpected expenses that may arise.

here’s an example of a budget for a cafe startup:

Equipment and fixtures

• Espresso machine: $5,000 – $15,000
• Coffee grinder: $1,500 – $3,000
• Refrigerator: $1,500 – $3,500
• Oven and stove: $4,000 – $8,000
• Dishwasher: $4,000 – $7,000
• Tables and chairs: $2,000 – $5,000
• Point-of-sale system: $5,000 – $10,000
• Sound system: $1,500 – $3,000
• Security system: $2,000 – $5,000
• Miscellaneous items (cutlery, crockery, glassware, etc.): $2,000 – $5,000
• Total: $28,500 – $64,000

Rent and utilities

• Rent (monthly): $4,000 – $10,000
• Electricity (monthly): $300 – $500
• Gas (monthly): $200 – $400
• Water (monthly): $100 – $200
• Internet and phone (monthly): $100 – $200
• Total: $4,700 – $11,300 per month

Staff

• Wages (hourly rate x number of staff x hours per week x 4 weeks): $6,000 – $15,000 per month
• Superannuation: 11% of wages
• Workcover Approximately 4% of wages
• Payroll tax: varies by state and territory (though this likely won’t apply to a single cafe)
• Total: $6,600 – $16,350 per month

Inventory

• Coffee beans: $400 – $800 per month
• Milk: $500 – $1,000 per month
• Food items: $2,000 – $4,000 per month
• Cleaning supplies: $100 – $200 per month
• Total: $3,000 – $6,000 per month

Marketing and advertising

• Signage: $1,000 – $3,000
• Flyers and brochures: $500 – $1,000
• Website development: $2,000 – $5,000
• Social media management: $500 – $1,000 per month
• Local advertising: $500 – $1,000 per month
• Total: $5,500 – $11,000 (one-time expenses) + $1,000 – $2,000 per month

Legal and accounting fees

• Business registration: $1,000 – $2,000
• Legal advice: $2,000 – $5,000
• Accounting services: $2,000 – $5,000 per year
• Total: $5,000 – $12,000 (one-time expenses) + $2,000 – $5,000 per year

Grand total (for the first month): $48,700 – $108,650

Remember that every cafe is unique and will have different financial needs and goals. While the budget we provided is a useful starting point, it’s essential to adjust it to suit your specific situation. This is where a qualified accountant or bookkeeper can be invaluable. They can model your business to illustrate the appropriate expenses to factor into your budget and help you create a financial plan that aligns with your goals and target revenue.

An experienced accountant or bookkeeper who has worked with cafes before can assist you in identifying areas where you can reduce costs and optimize revenue streams. They may also be able to provide insight into how to negotiate lower rent or find less expensive suppliers. Additionally, they can assist you in projecting revenue based on factors such as location, competition, and target market.

By working with a professional, you can establish a realistic budget that takes into account all the necessary costs and potential revenue streams, giving you a strong foundation for your cafe’s financial success.

Creating a marketing plan

Creating a comprehensive marketing plan is a crucial step in starting a successful cafe business. Getting this right can help you reach your target audience, build brand awareness, and drive foot traffic, which is kinda what we’re all after in our cafes.

Here’s an outline of a detailed marketing plan for a cafe startup:

1. Define your target audience: Identify who your ideal customers are based on factors such as age, gender, income, location, and interests. Remember to use the ABS data we spoke about earlier.
2. Develop your brand identity: Establish a unique brand identity that differentiates your cafe from competitors. This includes your logo, colour scheme, tagline, and overall brand message.
3. Create a website: Develop a website that showcases your brand and offers information on your cafe’s menu, hours of operation, location, and contact information.
4. Use social media: Create social media profiles on platforms such as Instagram, Facebook, and Twitter. Regularly post engaging content such as photos of your menu items, events, and specials.
5. Offer promotions and discounts: Offer promotions and discounts to attract new customers and encourage repeat business.
6. Partner with local businesses: Establish partnerships with local businesses such as gyms, offices, and schools to promote your cafe to their customers. Think of a you scratch my back and I’ll scratch yours promotion which will allow you to access their customers for a reward of sorts.
7. Attend events and festivals: Participate in local events and festivals to promote your brand and build community awareness.
8. Measure and adjust: Regularly track the effectiveness of your marketing efforts and make adjustments as needed to ensure maximum impact.

Similar to your business plan, your marketing plan is not a set and forget proposition.  It’s important to review it regularly and adjust and update it regularly. 

How To Open A Cafe

3. Building a team

Building a great team is essential to the success of any cafe. When hiring, I wouldn’t suggest focusing only on their skills.  Personality is so important to your business. Here are some strategies to find exceptional staff for your cafe:

• Define your ideal candidate: Before you start looking for staff, define the attributes and skills that you’re looking for. This will help you craft a job description that will attract a star. 
• Advertise in the right places: To get the right people you need to advertise in the right places. Use online websites such as Indeed or Seek, as well as social media platforms like LinkedIn or Facebook groups.
• Tap into your network: Let everyone you interact with know you’re looking for staff.  They may know someone who would be a great fit for your cafe.
• Screen resumes carefully: Once you start receiving resumes, screen them carefully to ensure that candidates meet your requirements. Look for relevant experience, education, and any certifications that may be required.

Conduct thorough interviews: During the interview process, ask questions that are specific to the cafe industry and the role you’re hiring for.  So lets say you’re hiring a barista, ask about their experience with different types of coffee machines and grinders. You should also ask behavioral questions to assess their work ethic and problem-solving skills.

Conduct trial shifts: Before making a final decision, ask top candidates to complete a trial shift. This lets you observe their skills and see how they interact with customers and other staff.  If you employ this strategy ensure you pay people even for trial shifts.

Invest in training and development: Once you’ve hired great staff, invest in their training and development. Provide ongoing training and feedback to help them improve their skills and grow their careers.

The above are just some ideas, hopefully you can build a great team that will help your cafe thrive.  Finding exceptional staff is an ongoing process. One of my favourite sayings is ‘always hiring’

Determining staffing needs

Figuring out how many people you need on staff is super important for running a solid cafe. How many people you need to hire depends on stuff like how big your cafe is, how many customers roll through, and what kind of service you’re dishing out.

In most cafes, you need a couple different roles to make things run smoothly. Baristas need to know how to bang out decent coffee, pour latte art like a pro, and geek out over coffee. Cooks have to crush it on a fast-paced line and multitask like crazy. Service staff should wow customers with awesome service, stay chill under pressure, and know the menu back to front. Managers need experience managing staff, handling inventory, and dealing with customers. When hiring, look for staff with legit experience for each role, time in a role doesn’t necessarily mean they’re any good. We’ve all worked with people who have been in a role for a long time and are still horrible at their job. A team of stars will keep your cafe running tight and customers coming back.

You need to make sure your squad is big enough to handle the rush when customers flood in during peak times. Don’t want your crew getting overwhelmed! Give your team decent breaks and switch up their roles now and then to keep them motivated. When figuring out how many people to hire, think about who’s available to work, your budget, and the level of service you aim to provide customers. Write clear job descriptions so employees know what’s expected of them. And make sure everyone has the skills and training to crush it in their role!

The right amount of staffing, with the right people in the right spots, is key for dishing out great service, especially when the cafe’s getting slammed. Take care of your team and they’ll take care of the customers!

Here is an example roster for a cafe open from 7am until 5pm:

Monday to Friday:

7am-9am: 1 barista, 1 server

9am-12pm: 1 barista, 1 cook, 1 server

12pm-2pm: 1 barista, 1 cook, 2 servers

2pm-5pm: 1 barista, 1 cook, 1 server

Saturday and Sunday:

7am-10am: 1 barista, 1 server

10am-1pm: 1 barista, 1 cook, 1 server

1pm-3pm: 1 barista, 1 cook, 2 servers

3pm-5pm: 1 barista, 1 cook, 1 server

 

Training staff

Getting your new hires up to speed is mega important to make sure they can crush it in their roles. The training process usually has two parts: orientation and on-the-job training. Orientation is all about welcoming them to the cafe family! It covers the basics like what you’re all about, your rules and procedures, and gives them a tour of the place so they know how everything fits together. On-the-job training happens as they dive into the actual work. More experienced staff can show them the ropes hands-on. Here’s some tips:

• Let them shadow a superstar so they can see how it’s done before trying it themselves.
• When they’re ready, let them give it a go with supervision. Offer guidance and feedback
• Check in regularly to see how they’re progressing and where they could improve. Communication is key here!
• Follow up to make sure they’re retaining everything and address any issues pronto. Solidify that knowledge!

Here is an example of a training plan for a new employee:

Day 1: Orientation

• Introduction to the cafe’s mission, vision, and values
• Overview of the cafe’s policies and procedures
• Tour of the cafe and introduction to the different areas and staff

Days 2-3: On-the-job training (Barista)

• Observing experienced staff making coffee and taking orders
• Learning how to operate the coffee machine and grinder
• Learning how to make different types of coffee (the way your coffee makes things)
• Learning how to interact with customers and handle complaints
• Practice making coffee and taking orders under supervision

Days 4-5: On-the-job training (Server)

• Observing experienced staff serving customers and handling food
• Learning how to handle cash and operate the POS system
• Learning how to interact with customers and handle complaints
• Practice serving customers and handling food under supervision

Days 6-7: On-the-job training (Cook)

• Observing experienced staff preparing and cooking food
• Learning how to use the kitchen equipment and follow recipes
• Learning how to handle food safely and maintain kitchen cleanliness
• Practice preparing and cooking food under supervision

This training plan is just a general overview – feel free to tweak it to make it work for your cafe and each employee. Every cafe is a little different, and each person has their own groove.  The most important thing is to keep the training going so your team can continue leveling up their skills. Onboarding doesn’t end after week one!

Check in regularly with employees to see what other areas they want to grow in. Do they want to learn more about roasting beans? Or get better at latte art? Maybe they need more guidance on customer service skills.  Keep an open dialogue about development opportunities. Offer encouragement and support as they expand their abilities. A good manager empowers their staff to reach their full potential.

The more you invest in your employees, the more your cafe will thrive. This training plan is just the beginning of their journey to becoming cafe rockstars. I recon you can do much better than my example.

How To Open A Cafe

4. Location and Design

Location and design are two critical factors that can significantly affect the success of a cafe. It probably seems obvious but an ideal location should be in an area that is easily accessible by customers, with plenty of parking and public transport options. The location should be in a strongly pedestrian area, such as a busy street or shopping center. Simple advice hey? You’d be blown away by how many people open a cafe where there is no pedestrian traffic. The design of your cafe is very important also, the layout and general feel of your cafe can make a massive difference in attracting customers.

A well-designed cafe can create a welcoming atmosphere that encourages customers to stay longer and return often. The decor, furniture, lighting, and overall aesthetic should all be carefully considered to create a cohesive and appealing look. The place needs to be a nicer place than someone’s workplace of kitchen, that simple other wise they might as well enjoy their coffee at work or home.

The location and design should also be aligned with the target market and concept of the cafe. For example, a cafe aimed at young professionals may want to consider a modern and minimalistic design, while a family-friendly cafe may want to incorporate brighter colours and play areas for children.

Don’t forget to consider and account for the flow of customers and staff, the kitchen layout, and the equipment needed.

Adequate space should be allocated for all functions of the cafe, including seating, kitchen, storage, and service areas.

Selecting a location

Getting your location right is a make or break proposition for your business. Below I’ve made a list of some of the major considerations that should be factored in before settling on a location.

• Demographics: Understanding the demographics of the surrounding area is important. Are there enough potential customers in the area? What is the age range of the target market? What is the average income of the residents? This information will help in determining if the location is suitable for the target market.
• Foot traffic: Foot traffic is critical for the success of a cafe. A location with high foot traffic is more likely to attract potential customers. Look for a location with high foot traffic during peak hours.
• Accessibility: Is the location easily accessible by public transport, car or foot? If not, customers may struggle to find or reach the cafe, which could have a negative impact on the business.
• Competition: Assessing the competition in the area is important. Are there already established cafes nearby? If so, can the business compete with them or offer something different that will attract customers?
• Rent and lease agreements: The cost of rent and the lease agreement will impact the overall expenses of the business. Consider negotiating with the landlord for a favourable lease agreement. Try to keep your rent as close to 10% of your net proposed turnover as possible. Be pessimistic in your projected turnover to avoid any surprises and enjoy the upside.
• Safety and security: The safety and security of the location is critical. Consider factors such as crime rates, lighting, and security measures in place.
• Zoning regulations and permits: Ensure that the location is zoned for commercial use and obtain all necessary permits and licenses required to operate a cafe in the area.

After finding the right location, you’ll need to move onto the design and layout of your cafe.  Do this well and you’ll create a comfortable atmosphere for customers, which will have them to stay longer, and increase the chances of repeat business.

• Layout: The layout of the cafe should be designed to optimize the flow of customers, staff, and equipment. The layout should also create a comfortable and welcoming atmosphere for customers. Think; where do the customers order, where do they wait for their coffee, how will staff get out onto the floor?
• Furniture and decor: Choose furniture and decor that aligns with the cafe’s concept and target market. Consider the colours, materials, and overall style.
• Lighting: Lighting can have a significant impact on the atmosphere of the cafe. Ensure that there is enough natural light and that the artificial lighting complements the design.
• Kitchen and equipment: The kitchen should be designed for optimal workflow and efficiency. The equipment should be high quality, durable, and appropriate for the menu offerings. Consider the placement of appliances relative to bench and prep areas. Consider the location of your dishwashing area relative to plated food.
• Accessibility: Ensure that the cafe is accessible to all customers, including those with disabilities.
• Colour scheme: The colour scheme of a café can impact customers’ emotions and influence their purchasing decisions. Consider using warm and inviting colours to create a cozy atmosphere.
• Signage: Eye-catching signage is essential for attracting customers to the café. It should be clear, visible, and reflect the theme of the café.
• Outdoor seating: Outdoor seating can be a great way to attract customers and create a relaxed and inviting atmosphere. Consider the amount of outdoor space available and the surrounding environment.
• Landscaping: Landscaping can enhance the appearance of the café and add to the overall ambiance. Consider using plants, trees, and flowers to create a natural and inviting environment.
• Lighting: Outdoor lighting is essential for safety and creating a welcoming atmosphere in the evening. Consider using warm and inviting lighting to highlight the café’s exterior.
• Materials: The materials used for the exterior should be durable and complement the design of the interior. Consider using materials such as wood, brick, and stone to create a natural and inviting environment.

Designing the interior and exterior of a café is essential for creating the right atmosphere and enticing customers to visit and return. By considering key elements such as layout, lighting, colour scheme, furniture, decorations, signage, outdoor seating, landscaping, lighting, and materials, café owners can create a welcoming and comfortable environment for customers to enjoy.

Obtaining necessary permits and licenses

You’ll have to  apply for all the necessary permits and licenses required by law. If you don’t you could face fines, or at worst the closure of your business. Below I’ve listed some of the permits  you may need to apply for:

• Food Business License – This license is required by all businesses that handle food, including cafes. It is issued by the local council and ensures that you comply with all food safety regulations. This one’s an easy one, reach out to your local council and they’ll steer you in the right direction. It’s great connecting as early as possible so they can provide you with some guidance as to what needs fixing on your proposed premises.
• Liquor License – If you plan to serve alcohol in your cafe, you will need to obtain a liquor license. There are different types of licenses available, so make sure to choose the one that suits your business. Connect with your state’s liquor licensing body and they’ll steer you in the right direction. Expect paperwork; lots of it, and in some instances the need of a lawyer.
• Building and Construction Permits – If you are renovating or building a new cafe, you will need to obtain the necessary building and construction permits. These permits ensure that your building meets safety regulations and building codes.
• Outdoor Dining Permit – If you plan to have outdoor dining at your cafe, you will need to obtain an outdoor dining permit. This permit ensures that your outdoor dining area is safe for customers and meets local council regulations. And you guessed it, reach out to your local council to arrange this permit.
• Music License – If you plan to play music in your cafe, you will need to obtain a music license. This license ensures that you comply with copyright laws and pay royalties to the appropriate music rights holders. In Australia you’ll need to connect with APRA, don’t ask me what it stands for, but the gist of it is an organisation that pays artists when their music is broadcast.

Obtaining permits and licenses  will require contacting different organisations of councils depending on your location and the type of license you need.  There will be applications to fill out and often they’ll ask you to, provide supporting documentation, and pay a fee.  Contact your local council as a starting point, they can advise you on the permits required and direct you to the correct organisation to apply for it.

Not meaning to plug myself here 🙂 but working with a professional such as a business advisor or lawyer who has experience in the cafe industry can be helpful in navigating the process of obtaining permits and licenses.  They can assist you in ensuring that your business is compliant with all required regulations relevant to your location and business.

How To Open A Cafe

5. Equipment and Supplies

Identifying equipment and supplies needed

Selecting the right equipment is an important step. It goes without saying that your equipment can affect your product and service, so understanding what you need and it’s function within the café is very important.   Below I’ve listed some key considerations to keep in mind when selecting the equipment you’ll need.

• Coffee Equipment: Coffee equipment is the backbone of any café. Espresso machines, grinders, and brewers are just a few examples of the necessary equipment that should be considered when setting up a café. Be sure to choose equipment that aligns with the size of your café and the volume of customers you expect to serve.
• Cooking Equipment: If you plan on serving food in addition to coffee, cooking equipment is a must. Ovens, stovetops, and refrigeration units are some examples of cooking equipment that may be needed. Make sure you choose equipment that meets your specific needs, while also adhering to local health codes and regulations.
• Furniture: Comfortable and functional furniture is crucial for creating an inviting and comfortable atmosphere in your café. Tables, chairs, and other seating options should be chosen with the style of your café and the comfort of your customers in mind.
• Kitchen Supplies: In addition to equipment, there are a variety of kitchen supplies that are necessary for running a successful café. These can include everything from dishes and utensils to cleaning supplies and food storage containers.
• Point of Sale System: A reliable point of sale system is essential for taking orders and managing transactions. This includes everything from cash registers and credit card processing equipment to software that can track inventory and sales data.
• Decor: The decor of your café is an important consideration that can influence the overall feel and ambiance of the space. This can include everything from artwork and lighting to plants and decorative accents.
• Office Equipment: This is often overlooked, but you’ll need a desk, a filing cabinet for invoices and staff files, a safe, a printer, this stuff ads up so don’t overlook your office requirements.

Equipment and supplies required will largely depend on your menu and the expectations that your customers will have of your business.  By carefully considering each element and choosing equipment and supplies that align with your overall vision, you can set your café up for success.

Purchasing or leasing equipment and supplies

You can’t run a cafe without the necessary equipment.  The amount of equipment required can vary greatly, depending on how big your cafe will be. The decision of whether to purchase or lease equipment is super important.  It can have a significant impact on your finances and working capital.

Purchasing equipment outright can provide the owner with the benefits of owning their equipment and the flexibility to sell or trade-in the equipment in the future. Leasing equipment is advantageous in that it allows for lower initial costs.  Repayments spread over a long term periods can make things affordable, and often leasing companies allow the upgrading of equipment at the end of the leasing term. At least that’s what the leasing company will tell you. It’s definitely a buyer beware scenario here. You can finance so much equipment that it can majorly cripple your cashflow. My recommendation, avoid it if possible, if it’s not possible, finance as little as possible.

I’m a big fan of purchasing second-hand equipment.  Second-hand equipment is often a fraction of the cost , and can provide reliable and functional performance. Just make sure to inspect it carefully to avoid a lemon.  In my experience, if it is clean and looks like it has been looked after, it probably has been.

In some cases, suppliers may offer free on loan equipment, such as coffee machines or drinks fridges, as part of a supply agreement.  This can be a valuable option, saving your business tens of thousands of dollars.   But beware, nothing is free and what is downplayed as a standard service agreement or loan agreement can often lock you in with a supplier or worse still lock you in to an untenable required weekly purchase.  

Make sure you have a good think about what it is your menu and business actually requires by way of equipment.    A well-equipped cafe can ensure efficient and effective operations, leading to a more successful and profitable business.

Deciding on suppliers

The support of a good supplier can’t be understated.  Especially suppliers of some of your core products.  The right supplier can assist in positioning your business positively in the eye of the consumer.  The wrong supplier could seriously damage the way your business is perceived. Different suppliers can also support your business in many positive ways. You’ve got to get this right, here are some important considerations to take on board when engaging with suppliers.

• Quality of products: Quality should be a top priority when choosing suppliers. You want to ensure that the ingredients, equipment, and other supplies you receive are of the highest quality possible.
• Price: Price is another important factor to consider. You’ll want to make sure that the prices offered by the suppliers are competitive, and that the quality of the products justifies the cost. Careful on this one though, the cheapest price may result in lower quality.
• Reliability: You need to work with suppliers who are reliable and deliver on their promises. They should have consistent stock levels, timely deliveries, and be responsive to any issues or concerns that may arise.
• Flexibility: Suppliers who are flexible and can work with you to meet your specific needs are valuable partners. They should be able to offer customized orders and adapt to changes in demand or other unforeseen circumstances.
• Sustainability: More and more customers are seeking out businesses that prioritize sustainability, so it’s important to consider the environmental impact of the products and practices of your suppliers.
• Customer service: Good customer service is crucial when dealing with suppliers. You want to work with suppliers who are easy to communicate with, are responsive to your needs, and are willing to go the extra mile to ensure your satisfaction.

Consider suppliers who may offer incentives such as free on loan equipment, but not if their product isn’t to the standard required to position your brand where it needs to be. When evaluating suppliers it’s important to do your research, speak to others using the same supplier to understand what it’s like working with that supplier.  Building a strong and reliable network of suppliers will be the cornerstone of your business success.

How To Open A Cafe

6. Menu Creation

 Creating a menu

Your menu represents the offering that your café will make available to customers. It’s important to get this right and in doing so it has to represent the expectations that the customers will have. Your ability to create a menu that’s loved by your customers is critical to the success of your café.  Your menu will either act to attract customers or drive them away, it’s then perhaps stating the obvious in saying that your menu needs to meet your customers expectations while reflecting the values of your café.

If you’re going to meet your customers expectations, certain things need to be on the menu when it comes to cafés.  Don’t believe me?  Think back to the last time you were on your way to a café for a feed.  I bet you knew what you were going to order.  So what’s typical to a café? Well that will depend on your location; think coffee, tea, pastries, baguettes, focaccias and other light food items together with a robust make to order menu.  It should be said it’s one thing to include these items on the menu, but it’s also important to make sure that they are of a quality that meets the customer’s expectations.

Careful when putting your menu together.  Don’t fall for the common error of creating a menu that the owner or chef loves rather than that which the customer loves.  Look it’s important to have unique and exciting menu items but they must also be in demand.  Ensure you do your research to identify customer preferences and ensure your menu caters for those preferences.

Pricing menu items

One of the most sought after coaching sessions I offer is on product costings. I am shocked by how many experienced café operators do not have a system in place to monitor their product costings and pricing. It’s just not good enough to be told by your cook or chef that they’ve done the costings and ‘you make heaps of money’ on a particular item.   Costings is something you need to take control of as a business owner. In costing your menu you need to be familiar with calculating the gross profit on each item you sell.

Gross profit is the difference between the selling price of an item and the cost of goods sold (COGS), expressed as a percentage of the selling price. This percentage represents the profit that a business makes on each item sold, after taking into account the costs associated with producing and selling it.

To calculate the gross profit percentage, the formula is:

(Profit ÷ Selling price) x 100

For example, if a bottle of Coke costs $0.50 to purchase and is sold for $2.00, the profit is $1.50. Using the formula above, the gross profit percentage is:

($1.50 ÷ $2.00) x 100 = 75% Gross Profit

In order to price a menu item with many ingredients, it is important to first determine the Cost Of Goods Sold (COGS) for each ingredient. This can be calculated by dividing the total cost of a specific ingredient by the number of servings it produces. Once the COGS for each ingredient is determined, the total cost of all ingredients is added together to get the total COGS for the menu item. Then, the desired gross profit percentage is applied to the total COGS to determine the selling price of the item.

Now your gross percentage number for the most part is an arbitrary number.  You may be asking well what should my GP be on bottled drinks.  The answer to that is as much as possible.  So what’s limiting you in maximising this? Well your imagination really, think about it.  If one supplier is only allowing you to achieve 40%GP on your bottled drinks, you could change suppliers to achieve a heigher GP, you could re negotiate with your current supplier.  You could source similar products but not the same with a higher GP, or you could make everything in house which could achieve a higher GP.  Keep in mind that it is a balancing act.  The more you make the higher your wages.  The more you charge, the more dissonance you may create in your customers.   This is the dance that we do as business managers.  Competition, market demand and perceived value of the menu item all come into play when striking the balance between profitability and customer satisfaction.

Sourcing ingredients

Start with quality and pass on that cost to customers.  I have never gone out to buy a $2 coffee because of the flapping flag out the front of a take away store advertising $2 coffees.  I want a quality product for my money.  Sourcing high quality ingredients is crucial in the success of your café.  Customers want flavourful food and bevvies, and in most instances this can only be achieved with high quality ingredients.  Make sure you choose a supplier that delivers on quality and consistency at a reasonable price.

So what do you need to keep in mind when sourcing ingredients for a café?

• Quality: The quality of the ingredients used in a cafe can greatly impact the taste and overall experience for the customer. It is important to choose suppliers who provide fresh, high-quality ingredients that meet the cafe’s standards.
• Cost: Sourcing ingredients can be expensive, and it is important to find suppliers who can provide quality ingredients at a reasonable cost. Finding suppliers who offer competitive pricing can help the cafe stay within budget while still providing high-quality food and beverages.
• Availability: It is important to choose suppliers who can consistently provide the necessary ingredients on a regular basis. This ensures that the cafe can maintain its menu and satisfy its customers.
• Sustainability: Many consumers today are interested in sustainability and environmentally-friendly practices. Choosing suppliers who source ingredients sustainably can appeal to customers who value environmentally-conscious businesses.
• Local sourcing: Sourcing ingredients locally can not only support the local community, but can also ensure that ingredients are fresh and in season. I wouldn’t recommend going nuts on this though. If there is better quality from imported or interstate ingredients go with the better product.
• Special dietary needs: Many customers today have special dietary needs such as gluten-free, vegan, or vegetarian. It is important to choose suppliers who can provide ingredients that meet these needs.

It is bloody hard to win the confidence of your customers back after failing them on the delivery of quality.  Make sure to get this right from the get go.

Exploring different menu styles

In developing your café’s menu it’s important to consider that not one style of menu suits all.  If the name of the game is to maximise sales, it makes sense to ensure you have an offering that accommodates the various customer needs without completely bastardising your brand.  So what might this look like?  Well a breakfast menu would appeal to those that want to make their way to your café for a sitdown coffee and breakky, while a grab and go refrigerated display would appeal to those who want a take away coffee as well as something to eat without having to wait for you to prepare it.

All day breakfasts are a popular menu style amongst those that crave breakfast food all day.  Traditionally these items would include eggs, toast and bacon as well as more contemporary items like breakfast burritos and smashed avocado on toast.

Grab and go items can be absolutely imperative in certain areas and with certain clientele.  If for example you have a café located in a busy business precinct you may find that people choose not to spend limited time sitting and eating in your premises and want to grab a coffee and feed to go.  Often a mix of dine in and grab and go works best.  Examples of popular grab and go items are, premade focaccias, baguettes, bacon and egg muffins or rolls, salads, or even hot dishes served out of a bain marie.

It’s important to get this mix right.  Get to know your target market and their preferences and you’ll have valuable insights into the style of menu that is popular amongst your customers. Note that the style of menu offering will also significantly affect your roster, and speed of service. A grab and go menu is often pre prepared early in the morning, and requires very little staff in the kitchen during the busy times. While a make to order menu will see a bustling kitchen during the busy times.

Developing a signature drink or food item

A signature drink or item of food is an awesome way to set your business apart from others in the mind of your customers. I sometimes call signature items hero items, because these hero items should be strong enough to raise your business above others. In developing your hero item; be it a drink or a food item, you need to start with the customer in mind.  A little market research can really go a long way here.  Are your customers at this point in time looking for something healthy or are they just calling for healthy and still indulging in the sugar laden, indulgent and decadent?

Consider for a sec the cronut, a croissant in the shape of a doughnut – I think it’s also glazed like a doughnut.  This hero item first developed in a bakery in New York is now a world wide sensation.  Seriously people were initially lining up for hours for these things.  Isn’t this something we would want in out business?  The name of the game here is to have a draw card that creates habit and brings people to you every day. 

Signature drinks?  Well what about loaded shakes?  Remember those when they first took off?  How about flavoured lattes, beetroot, matcha, turmeric lattes.  I’m not mentioning these items because I think they’ll be good for your business.   They’re just examples of what has been successful in the past.   Think it through and develop your hero item, and remember; your hero item needs to be amazingly consistent.  Staff need to be trained to deliver this item identically every single day.

Remember to use high quality ingredients and don’t forget to market your hero item to create awareness of what you’re doing and how amazing this product is.

Incorporating feedback from customers to improve the menu

As crazy as it can drive you, feedback is essential, and incorporating feedback from customers regarding your menu is super important, but it can be fraught with danger.  On person’s opinion and preferences may not be a reflection of the many. So why would we bother doing this then; I hear you ask? Well, I completely understand you wanting to share what you love with people and making the menu something you’re proud of, but this is usually the first step towards failure for the inexperienced, because creating a menu that we love, may just not be what the customer loves.  Difficult pill to swallow for sure, and I’ve said this before; but you’ve got to remember that you are not your customers. Beyond figuring out what will sell, feedback can also help you improve the quality of your food, and can help you introduce in demand items.

Gathering feedback from customers can be done in a few different ways.  You could have a feeback form on your counter, online surveys, polls or my favourite simply asking customers.  If you’re feeling really adventurous you can even ask those walking past your business with other people’s food and coffee.

Here’s a few areas where feedback may lead to you adjusting your menu:

• Adding or removing menu items: Removing items that you’re finding are consistently receiving negative feedback, or conversely considering adding an item which your customers may be requesting.
• Adjusting portion sizes:  If you’re getting feedback on portion sizes being too big or too small, you may want to review this
• Improving quality: If you’re getting complaints about the quality of certain dishes or perhaps the ingredients you’re using you should definitely look into improving this.
•  Menu Description: Sometimes it’s the layout or description of your menu items.  Convoluted names and descriptions on menus can really confuse customers.
• Seasonal options: Consider introducing seasonal items, these can help keep things fresh and interesting.  Something you’ll want to do if you’re getting feedback asking for newer items.

I suppose it goes without saying that this is an ongoing process and attention should be given to listening to customer preferences often to ensure you’re meeting expectations.

How To Open A Cafe

7. Financial Management

Managing the money flow is super important to keep your cafe going strong! You’ll want a solid handle on what’s coming in from sales versus what’s going out for expenses and costs. Gotta generate a profit.  Here are some tips:

• Budgeting: Create a detailed budget that includes all income and expenses. This will help you understand how much money you need to make each month to cover your costs and turn a profit.
• Cash flow management: Manage your cash flow effectively by monitoring your income and expenses regularly. This will help you avoid cash flow issues, such as late payment of bills or not having enough cash on hand to cover expenses. Check out the 10 Minute Manager a program I put together to run my cafes under management. Reach out if you’d like to apply this in your business.
• Cost control: Control your costs by monitoring expenses, negotiating with suppliers for better pricing, and reducing waste. This will help you increase profits and maintain financial stability.
• Taxation: Ensure that you are compliant with all taxation laws and regulations. This includes registering for GST, keeping accurate records of income and expenses, and filing tax returns on time. A good bookkeeper will keep you on track with this.
• Accounting: Keep accurate records of all financial transactions, including sales, expenses, and inventory. This will help you make informed business decisions and prepare financial reports for investors and lenders.
• Financial reporting: Regularly review and analyze financial reports to track performance and identify areas for improvement. This can include cash flow statements, balance sheets, and income statements.

• Investment: Consider investing in new equipment, training for staff, or marketing to increase revenue and profitability. However, make sure to carefully assess the potential return on investment before making any decisions

Budgeting

Planning out your income and expenses is clutch for running a tight cafe. Budgeting helps you forecast cash flow, make smart money moves, and boost profits. A monthly operating budget is super handy – it lays out expected running costs like rent, utilities, staff, and cost of goods. Knowing those numbers ahead of time helps you find places to save and spots where you might need more revenue.

Doing a sales forecast is also money. Look at past sales, food trends, seasons, etc. to estimate revenue for upcoming months. Use that intel to plan inventory, staffing, marketing, and more. When you budget well, you can catch potential cash flow issues early and make informed choices about investing back into your business. It takes some work upfront but pays off with a healthier bottom line. Here’s a breakdown of what a simplified budget for a café might look like.

First up, you’ll want to forecast your income. Look at past sales data and trends to estimate your weekly and monthly revenue. Factor in slower vs. busy seasons. Don’t be too optimistic or you’ll end up disappointed.

Next, tally up those operating expenses:

• Rent/mortgage
• Utilities like water, electricity, gas
• Ingredient costs – coffee, milk, food items, packaging
• Payroll for staff
• Equipment maintenance
• Marketing expenses
• Merchant processing fees

Map out these numbers in a spreadsheet monthly and yearly. Make sure to include one-time or intermittent expenses too like new equipment.  Use your revenue forecast to see if expenses align. If expenses are way higher, find ways to cut back or boost sales projections.  Track actuals against your budget to spot issues quickly. Adjust the budget as needed if sales or costs vary.  What might this look like, well let’s say your cafe brings in around $60K in revenue each month. You estimate costs to be:

• Rent: $7,200
• Staff:  $21,000
• Ingredients: $21,000
• Utilities: $1,000
• Marketing: $500
• Equipment: $200

That leaves $9,100 in profit each month.

Now obviously this is an over simplification for examples sake, but know that this needs to be reviewed monthly.

Accounting and bookkeeping

You’ll need to get an accountant and bookkeeper on your cafe squad to handle the financial admin. They’ve got different specialties. Your accountant is like your money mentor – they’ll provide expert tips on taxes, budgets, and make sure you follow financial rules and regulations. Find one with cafe experience. Check their background, fees, and reputation too.  The bookkeeper handles the day-to-day: managing your ledgers and invoices, payroll, bank stuff. Look for someone familiar with your accounting software and who’s got an eye for detail. Although most accounting systems are online these days i still think it’s a good idea to make sure they can be there when you need them.

Some of the tasks that an accountant can perform for your cafe business include:

• Preparing your taxes
• Advising on tax planning and strategy
• Conducting financial audits
• Offering financial advice and consulting services
• Preparing financial statements and reports
• Managing cash flow and budgeting

Some of the tasks that a bookkeeper can perform for your cafe business include:

• Recording financial transactions
• Managing accounts payable and accounts receivable
• Reconciling bank statements and other accounts
• Managing payroll and ensuring compliance with labor laws
• Generating financial reports and statements
• Maintaining accurate records for tax purposes
• Cash flow management
• Taxes

To find a good bookkeeper or accountant for your cafe business, you can follow these steps:

• Ask for referrals: Ask other business owners or colleagues in your industry for recommendations. They may be able to suggest a reputable accountant or bookkeeper they have used before.
• A great way to find an accountant and bookkeeper who are very familiar with cafes is to ask active café owners if they can recommend people you can meet with.  Want to hit up a few hundred café owners at a time? Join the Australian Café Owners Network on Facebook and ask the question there.  You’re not likely to get a recommendation for someone who doesn’t know their stuff from another café owner.
• Check qualifications and certifications: Look for an accountant or bookkeeper who is qualified and certified. Check their credentials to ensure they have the necessary education and experience in the field.
• Look for experience in the industry: It can be beneficial to find an accountant or bookkeeper who has experience working with businesses in the hospitality industry. They will have a better understanding of the unique challenges and requirements of your business.
• Consider their communication skills: It’s important to find an accountant or bookkeeper who communicates clearly and effectively. They should be able to explain financial information and answer your questions in a way that is easy to understand.
• Check their availability and responsiveness: Find out how available and responsive they are to your needs. You want to work with someone who is accessible and can respond quickly to your inquiries.
• Review their fees and billing practices: Make sure you understand their fee structure and billing practices upfront. You want to work with someone who is transparent about their fees and won’t surprise you with unexpected charges.

Having these money maestros in your corner will keep your finances in shipshape and let you focus on serving killer coffee and eats! But don’t fully check out – you gotta stay on top of the numbers too.

How To Open A Cafe

8. Opening Your Cafe and Ongoing Operations

The Importance of a soft opening

Before the big grand opening bash, having a “practice run” with a soft open is key. It lets you work out any kinks before the public rolls in. Here’s why it’s a must:

• Test drive your systems to make sure everything runs smoothly – equipment, processes, staff skills, the whole deal.
• Get real feedback from early visitors so you can tweak things like service, food, drinks, etc.
• Start generating buzz and hype for your opening. Invite VIPs, media, influencers to get the word spreading.
• Catch potential issues early before bad reviews roll in. Better to mess up when only a few people are visiting!

Here are some tips for planning a successful cafe soft launch:

• Set clear goals – What do you want to achieve? Test menu, staffing levels, order systems? Identify your focus areas.
• Create a timeline – Plan everything out in advance – invitations, staff training, deliveries, etc. Give yourself enough time!
• Train staff thoroughly – Ensure everyone knows menu, systems, and processes inside out. Practice makes perfect!
• Invite feedback – Get comment cards, send online surveys, observe reactions. Take constructive criticism to heart.
• Market selectively – Generate buzz by partnering with local influencers, media, and groups. Don’t go too broad too soon.
• Start small – Only invite a small crowd first. Better to perfect things on a small scale before going big.
• Watch budgets – A soft open isn’t about profit. Focus funds on gathering feedback and refining operations.
• Address issues ASAP – If problems occur, fix them quickly between soft open and grand opening.
• Adjust and adapt – Use feedback and learnings to improve everything – menu, decor, processes, etc.
• Document extensively – Note challenges, successes, and feedback to guide future planning.

Planning a successful grand opening

The grand opening party is a huge day for a new cafe! You must plan an epic bash to get customers pouring in. Here’s some keys to pump up the hype:

• Set a date and time: Choose a date and time that works well for your target audience and the local community.
• Promote the event: Use social media, local publications, and flyers to spread the word about the grand opening. Consider offering a promotion or giveaway to entice customers to attend.
• Prepare the cafe: Make sure your cafe is ready for the grand opening. This includes ensuring all equipment is working, the space is clean and organized, and the staff is trained and ready to serve customers.
• Plan the menu: Decide on the menu items that will be offered during the grand opening. Consider offering a limited menu or a special menu to showcase your cafe’s offerings.
• Plan for the day: Ensure there is enough staff scheduled for the grand opening to handle the expected crowds. Set up a welcoming atmosphere, such as decorations or music, to make customers feel comfortable and excited to be there.
• Engage with customers: Encourage your staff to engage with customers and make them feel welcome. Consider offering tours of the cafe or hosting a meet and greet with the owner or chef.
• Evaluate the day: After the grand opening, take time to evaluate what worked well and what could be improved for future events. Collect feedback from customers to see what they enjoyed and what they would like to see in the future.

Daily operations and management

To keep your cafe running  smoothly day-to-day, there’s a bunch of stuff that needs handling:

• Open and close-up routines – unlock doors, prep equipment, check supplies. Do the opposite at closing time!
• Staffing – scheduling, training, monitoring the team. Give ’em the tools to succeed!
• Customer service – greetings, taking orders, fixing issues. Make every guest feel special.
• Inventory – track stock, order more, store properly. Don’t run out of the essentials!
• Money management – expenses, sales, payroll, budgeting. Watch the money flow closely.
• Menu – source ingredients, add new items, adjust pricing. Keep it fresh!
• Marketing – social media, promotions, events. Draw in new customers constantly.
• Cleaning – surfaces, floors, equipment. A spotless space is a must!
• Maintenance – service equipment, do repairs. Don’t let things break down.

It’s a lot of plates to spin, but staying on top of everything keeps the cafe running smoothly and customers coming back.

here’s a chronological list of tasks that need to be done in a cafe from opening to closing:

Opening Shift:

• Arrive 30 mins early, disarm alarm, unlock doors
• Turn on all equipment – Point of sale system, air con, audio player, coffee machine, grinders, ovens, etc.
• Inspect equipment and report any issues
• Check and record fridge temperatures
• Take delivery orders and stock fridges, freezers, shelves
• Set the float in the cash drawer
• Fill pastry case with baked goods, label with prices
• Fill fridge with grab and go items like salads, toasties, baguettes etc.
• Brew coffee, squeeze juices
• Set up registers, menu boards, tip jars, iPad POS
• Unlock doors, flip sign to “Open”, play music

During Service Tasks:

• Greet customers and take orders
• Prepare and serve drinks and food items
• Handle cash and card transactions
• Maintain cleanliness and organization in the front-of-house area
• Continuously restock items as needed
• Communicate with kitchen staff regarding orders and wait times
• Interact with customers to ensure a positive experience

Closing Shift:

• Flip the ‘open’ sign
• Clean blenders, grinders, steam wands thoroughly
• Give espresso machine a backflush
• Empty grounds knock tube, take out trash and recycling
• Wipe down machines, counters, fridges, ovens
• Restock cups, lids, milks, sugars, etc.
• Fill dispensers – milk, syrups, cup lids, straws, napkins
• Wipe down tables, sweep floors, take out trash
• Set chairs in place, make sure condiments are filled
• Cover pastries, store unused baked goods
• Check and record fridge temps, cover or store leftover ingredients
• Reset registers, print receipt
• Count cash and reconcile tills
• Set floats for the following day.
• Do a final sweep and mop of floors
• Turn off music, equipment, lights, AC
• Set alarm, lock doors

This list is not exhaustive and can vary depending on the specific operations of the cafe. However, it provides a general outline of the tasks that need to be done from opening to closing.

Customer service

Giving customers an awesome experience is everything in the cafe biz. It’s how you build a loyal squad and get people gushing about your shop. Word-of-mouth is priceless!  It starts with hiring staff who have off-the-charts people skills. Find people who love connecting with customers. Train them on making every guest feel special from the minute they walk in.

There are several ways to ensure top-notch customer service:

• Greet everyone with a big smile and warm “welcome!” when they walk in.
• Listen closely to what customers are saying and respond with understanding. Show you care!
• Get orders out lightning fast. No one wants to wait around when they’re craving coffee.
• Know your menu inside out so you can give spot-on recommendations. Be the coffee guru!
• If there’s an issue, fix it ASAP with apologies and freebies. Turn frowns upside down.
• Chat up regulars by name and hook them up with their usuals. Make them feel special.
• Thank people sincerely for stopping by and tell them to come back soon!
• Ask for feedback in person or online. Take it seriously to improve.
• Give outstanding service even when you’re getting slammed. Stay cool and keep smiling.

Laying out clear steps for serving customers is key to give every guest an awesome experience. Think of it like a game plan to wow each person that walks in the door.  This is what we refer to as an order of service or the customer service experience.

An ideal order of service should cover:

• Greeting customers right away with a warm smile and hello
• Taking their order while chatting them up
• Preparing drinks, food quickly and correctly
• Delivering their items in a timely fashion
• Processing payment smoothly
• Thanking them sincerely and inviting back

When you stick to this service flow, customers feel welcomed and cared for every time. Consistency is what we’re after here.

Here’s an example of a detailed order of service for a cafe:

1. Greeting: As soon as a customer enters the cafe, greet them warmly and make them feel welcome. Smile, make eye contact, and ask them how their day is going.
2. Seating: Escort the customer to an available table, offer them a menu and take their order. Fill their glasses up with complimentary water. Offer colouring in paper and crayons to younger children.
3. Order-taking: Take the customer’s order, repeating it back to them to ensure accuracy. Ask about any special requests, dietary restrictions or allergies.
4. Timing: Ensure that the order is prepared in a timely manner and communicate any delays or issues with the customer.
5. Serving: Serve the order with care, making sure it is presented attractively and correctly. Ask the customer if they need any condiments or utensils.
6. Check-in: Check back with the customer after a few minutes to make sure they are satisfied with their order. Address any concerns or issues they may have.
7. Payment: Handle the payment process efficiently and accurately, providing a receipt if necessary.
8. Farewell: Thank the customer for their patronage and invite them to return. Wish them a good day and offer to assist with anything else they may need before they leave.

Ongoing marketing and promotions

Rolling out new deals, updates, and events is mega important to keep customers hooked. You always have to be shouting about what’s happening at your cafe!

Here are some strategies for ongoing marketing and promotions:

• Rocking social media is a must – post pics and updates regularly on Facebook, Instagram, Twitter or is that X these days. Give followers a inside look!
• Collect emails to send out newsletters with exclusive deals and new menu items. Everyone loves a good promo!
• Start a rewards program to thank loyal customers with freebies and discounts. Get their spending insights too!
• Partner with nearby hotels, attractions, event spaces for cross-promotion. Tap into existing crowds!
• Host fun events like wine tastings, live bands, trivia nights. Keep things fresh and lively.
• Run limited-time seasonal specials and holiday drinks. Capitalize on trends!
• Encourage online reviews and quickly address any negatives. Manage that reputation.
• Support local charities and sports teams. Show you care about the community.

With solid marketing strategies like these, your cafe will always be on customers’ radar!

How To Open A Cafe

9. Sustainable Practices

Adding eco-friendly practices to your cafe is really important these days. Customers care about sustainability and it helps the planet too. Green initiatives can also improve your spot’s reputation and draw environmentally-minded customers.

Here are some ways a cafe can incorporate sustainable practices:

1. Use environmentally friendly products: Switching to eco-friendly products such as biodegradable cups, plates, and utensils can help reduce waste and minimize the cafe’s environmental impact.
2. Minimize waste: Implementing a recycling and composting program can help minimize waste and ensure that materials are properly disposed of or repurposed.
3. Source local ingredients: Sourcing local ingredients can reduce the cafe’s carbon footprint by reducing transportation emissions, while also supporting local farmers and businesses.
4. Reduce energy consumption: Installing energy-efficient lighting and appliances can help reduce energy consumption and costs.
5. Offer reusable options: Offering customers the option to use reusable cups, straws, and utensils can help reduce waste and promote sustainable practices.
6. Donate excess food: Donating excess food to local food banks or charities can help reduce food waste and support those in need.
7. Renewable Energy: You can install solar panels or use wind energy to power its operations.
8. Water Conservation: You can install low-flow taps, and use drought-resistant plants in landscaping to reduce water consumption.
9. Eco-Friendly Cleaning Products: Use non-toxic and biodegradable cleaning products to reduce the use of harmful chemicals.

Telling customers about your cafe’s green practices helps educate them and build your brand as eco-friendly. Promote sustainability wins and make customers feel part of it.

There are several ways that sustainable practices can be communicated to customers and celebrated:

1. Menu labelling: Labelling menu items that use sustainable ingredients or practices can help customers make informed choices and understand the cafe’s commitment to sustainability.
2. Social media: Using social media to showcase sustainable practices, such as photos of composting or highlighting local ingredients, can help spread the message and engage customers.
3. Events and workshops: Hosting events and workshops that focus on sustainability, such as composting workshops or talks on reducing waste, can help educate customers and build a sense of community around sustainability.
4. Displaying certifications: Displaying certifications, such as organic or fair trade certifications, can communicate the cafe’s commitment to sustainability and provide customers with additional information about the cafe’s practices.
5. Offering incentives: Offering incentives for customers who bring their own reusable cups or containers can encourage sustainable practices and build customer loyalty.
6. Celebrating milestones: Celebrating sustainability milestones, such as reaching a certain percentage of waste reduction or sourcing a certain percentage of local ingredients, can create a sense of achievement and encourage continued progress towards sustainability goals.

How To Open A Cafe

10. Online Presence and E-Commerce

In the digital age, getting your cafe out there online is a must. Make it easy for folks to find you, buy from you, and interact with your brand.

• First, build a good looking website with your story, menu, hours, contact details and more. This is your virtual storefront so make it friendly and inviting!
• Get social on Facebook, Instagram, and X too. Share pics, deals, announcements. Reply to comments and DMs quickly to engage followers.
• Consider adding online ordering for delivery or pickup. You could also sell beans, and merch online. E-commerce can drive sales 24/7!
• Use email marketing to promote events and offers. Collect emails onsite and online to build your list. Use services like Aweber to handle your email lists
• Run Google and social ads to get more eyes on your biz. A little targeted marketing goes a long way!
• Post about community happenings and partner with local influencers. Be a go-to spot for locals!

Keep your online presence fresh and helpful to turn clicks into paying customers. A rockin’ website combined with social media is a winning recipe for cafe success.

Offering online ordering and delivery options

Adding delivery and online ordering lets you whip up coffee and food for hungry folks all over town. Major revenue potential! But you must pick the right platforms and get systems dialed in.

• Research different apps and services – compare monthly fees, order commissions, and features. Find one that fits your biz without crazy costs. Be super careful here, the wrong deal can be detrimental.
• Once you pick one, get it set up with your point-of-sale and train the team on using it. Make sure everything integrates smoothly!
• Spread the word on social media, email, and in-store signs. Market delivery and online ordering hard to drive sales.
• Keep staff and stock levels ready to handle more orders and logistics. You don’t wanna fall behind on fulfillment.
• Factor commissions into pricing so profits don’t take a hit. And track data to optimize your menu and operations.

Typical commission structures for food delivery platforms like Uber Eats and Menulog might look a little like this, obvisouly this stuff changes so make sure you check these yourself:

Uber Eats:

Uber Eats charges a 30% commission fee on each order placed through their platform. This is deducted from the total order amount.  There is also a $0.49 fee per order for using the Uber Eats app and services.  For pickup orders placed through Uber Eats, the commission fee is 15% instead of 30%.

Menulog:

Menulog has a tiered commission structure based on monthly order volumes:

• Tier 1 – Under 150 orders per month: 27% commission
• Tier 2 – 150-349 orders per month: 25% commission
• Tier 3 – 350+ orders per month: 23% commission

There is also a pickup commission of 10% for orders placed for pickup through Menulog.

Menulog charges a payment processing fee per order – 2.7% for Visa/Mastercard, $0.22 for American Express.

Additional fees may apply for things like branded packaging and targeted advertising campaigns.

You can expect to pay around 25-30% commission on delivery orders from third-party platforms like these, which needs to be factored into pricing and margins. Tracking your volumes and negotiating rates can help maximize profitability.

Virtual Kitchens In Your Café

Having a separate online order kitchen is a sweet way for cafes to unlock more biz without extra store space. Here’s how it works:

Carve out a kitchen area just for takeout and delivery orders – either in your existing spot or a second location. This space is fully dedicated to pumping out food for your online customers.

Deck it out with all the equipment and stations needed to cook up your delivery menu items quickly. You can get more specialized here based on what travels well.

Bring on extra staff as needed to handle the volume of online orders. Make sure you got the staff power to keep up with demand.

With a well running virtual kitchen, you can create an expanded menu just for delivery. Think fun themes or collabs that you can’t pull off in your small cafe space. Get creative!

The key is keeping the digital side separate so your dine-in and takeout flows don’t clash.

Here are some tips for getting the most out of a virtual kitchen setup:

• Optimize the menu for delivery – Focus on dishes that travel and reheat well. Offer exclusive delivery-only items.
• Perfect packaging – Invest in good packaging that keeps food hot and intact. Include sauces and utensils.
• Streamline processes – Design an efficient kitchen layout and simplify menus to speed up order fulfillment.
• Dedicated delivery drivers – Have drivers who only handle virtual kitchen orders for faster service.
• Promote heavily – Let customers know about your delivery-only options through social media, ads, delivery apps.
• Monitor data – Track order volumes and menu performance. Tweak based on insights.
• Maintain quality – Ensure food and service consistency, even when busy with delivery orders.
• Add partnerships – Collaborate with other brands for virtual menus, cross-promotion.
• Keep costs low – Negotiate commissions and fees, use cost-effective ingredients.

With smart operations and marketing, virtual kitchens can significantly boost revenue. Give it a go after you get your café operations humming.

11. Legal and Regulatory Considerations

Operating a café in Australia involves various legal and regulatory requirements to ensure compliance and proper practices. Here is an overview of some key considerations:

• Cafes must register their business with the Australian Securities and Investments Commission (ASIC) and obtain an Australian Business Number (ABN).
• Food safety: Cafes must comply with food safety regulations, including obtaining relevant licenses and permits, maintaining proper hygiene standards, and ensuring that food is stored, prepared, and served safely.
• Employment law: Employers must comply with Australian employment law, including minimum wage rates, working hours, leave entitlements, and workplace health and safety regulations.
• Taxation: Cafes must comply with taxation regulations, including registering for Goods and Services Tax (GST), keeping accurate financial records, and submitting tax returns to the Australian Taxation Office (ATO).
• Liquor licensing: If the cafe serves alcohol, it must obtain the necessary liquor licenses and comply with responsible service of alcohol regulations.
• Disability access: Cafes must ensure that their premises are accessible to customers with disabilities in compliance with the Disability Discrimination Act.
• Privacy: Cafes must comply with the Australian Privacy Principles (APPs) and the Privacy Act, ensuring that they protect the personal information of customers and employees.
• Advertising and marketing: Cafes must ensure that their advertising and marketing practices comply with the Australian Consumer Law, which prohibits false or misleading representations.

While navigating the legal landscape takes diligence, being mindful of these key regulations from the outset helps establish a lawful, ethical, and safety-focused café operation.

How To Open A Cafe

Understanding local and national health and safety regulations

Health and safety regulations for cafes fall under the jurisdiction of each Australian state and territory. While specific requirements vary by location, adhering to regulations is crucial for safeguarding employees and patrons.

At the federal level, the Work Health and Safety Act of 2011 provides overarching guidelines for workplace safety and employer obligations. Under this framework, cafe owners must take reasonable precautions to provide hazard-free premises and prevent illness or injuries.

Additionally, each state and council has regulations surrounding food preparation, fire safety, building codes and more. It is imperative for cafe operators to thoroughly research the laws in their jurisdiction.

 To meet compliance, cafe owners should take proactive steps including:

• Developing safety policies and protocols in line with regulations, I use Employee Manual for my policies in my businesses and in full disclosure I’m an affiliate of this program and recommend it to all of my coaching clients.
• Training staff on proper procedures to foster a culture of safety
• Performing periodic audits to identify and resolve potential risks
• Maintaining meticulous documentation of activities like inspections, reporting, and training.

Though regional nuances exist, adhering to health and safety regulations is a legal and ethical obligation for cafes. Taking a proactive approach to compliance promotes workplace and public safety while mitigating risks.

Identifying and complying with labour laws

Abiding by employment and labour regulations is an important duty for Australian cafe owners. Violating workforce laws can negatively impact operations and credibility.

To avoid legal troubles, it is advisable to research the following:

• Fair Work Act 2009: This act covers the minimum wage, employment standards, and conditions for employment such as leave entitlements, overtime, and termination of employment.
• Work Health and Safety Act 2011: This act outlines the obligations of employers to provide a safe working environment for their employees and the consequences of failing to do so.
• Anti-Discrimination Act 1977: This act prohibits discrimination on the basis of gender, age, race, religion, or disability, and sets out the legal remedies available for victims of discrimination.
• National Employment Standards: These standards set out the minimum entitlements for employees, including annual leave, sick leave, and public holidays.

To comply with these labour laws, cafe owners should:

• Ensure that they pay their employees at least the minimum wage set by the Fair Work Commission.
• Provide a safe working environment, including adequate training, protective equipment, and regular inspections of the premises.
• Have policies in place to prevent discrimination and harassment, and ensure that all employees are aware of these policies.
• Keep accurate records of employee entitlements, hours worked, and any incidents or accidents that occur in the workplace.
• Provide employees with a copy of their employment contract, including their pay rate and entitlements, and ensure that they understand their rights and obligations under the contract.
• Stay up-to-date with changes to labour laws and regulations, and seek professional advice if necessary.

labour laws can be a bit different depending on which state or territory your cafe is located in. So be sure to look into the specific rules and regs for your area.  Staying up to date on these laws is key for keeping your cafe running smoothly and staying out of hot water.  If it seems tricky, chat to an accountant or lawyer for customized advice. Having pros in your corner makes compliance easier.  There’s also organisations that specialise in keeping you compliant in these areas.  Consider reaching out to companies like Employsure.

12. Expansion and Growth

How To Open A Cafe

Identifying opportunities to expand the business, such as adding additional locations or franchising

Expanding your cafe can be super exciting! More locations = more customers. But you need to make sure you set yourself up for success. Here’s some tips:

• First, take a step back and evaluate how your current spot is doing. Look at what’s working and what could be better so you know what to build on.
• Do your market research – scope out the competition, gaps in your area, customer demographics. Make sure there’s demand for expansion.
• Crunch the numbers to see if another location makes financial sense. Draft a budget including rent, staffing, supplies – don’t forget start up costs!
• Pick the right growth strategy – maybe franchising your concept, adding a new service, or opening another store. Choose what works best for your biz.
• Make an awesome business plan – goals, budget, timeline, marketing, etc. Cover all your bases and look out for potential risks.
• Don’t forget permits and licenses! File the right paperwork before moving forward.
• Start small, track progress, and adjust along the way. Growing at the right pace keeps success ticking over!

Expanding is thrilling but tough. Smart planning means you thrive, not dive!

Preparing a growth plan to ensure success in the long term

Mapping out a plan for growth is key if you want to take your cafe to the next level. Here’s some tips for prepping a rock solid growth plan:

Step 1: Thoroughly assess your current business

• Review the last 3 years of financial statements – sales, revenues, expenses, profits/losses. Look for positive and negative trends.
• Analyse sales data like average transaction size, customer traffic, busiest days/hours. Identify opportunities to increase sales.
• Survey customers on their satisfaction with your food, service, ambiance. Seek honest feedback on improvements.
• Speak to staff about operational challenges, inefficiencies, and their ideas for growth. They see issues firsthand.
• Identify your cafe’s strengths that differentiate you from competitors. Also recognize internal weaknesses holding you back.

Step 2: Identify specific opportunities for growth

• Consider expanding into a larger location, new neighbourhood, or second store to reach more customers.
• Add delivery/takeout options or new menu categories like breakfast items to increase sales channels.
• Franchise your business concept or intellectual property if you have a proven formula.
• Introduce new revenue streams like coffee beans, merchandise, catering, or cooking classes.
• Optimize processes and reduce unnecessary costs to improve profit margins.

Step 3: Set measurable goals aligned with growth opportunities

• Increase same-store sales by 10% within 12 months by extending hours.
• Open a second location in another suburb in 18 months to expand customer base.
• Reduce food costs by 5% in 6 months through supplier negotiations.
• Achieve 10% profit margin increase within a year through optimized labour scheduling.

Step 4: Plan marketing initiatives to support growth

• Invest in targeted digital ads in nearby neighbourhoods to attract new customers.
• Launch an email newsletter with promotions and offerings for subscribers.
• Partner with local businesses and host events to grow community engagement.
• Refresh branding, signage, and interior design to revamp look and feel.

Step 5: Project additional resources and capital needed

• Forecast staffing needs, inventory, supplies, equipment for second location.
• Calculate start-up funding needed for new equipment, lease deposit, marketing.
• Develop an investor pitch deck if seeking loans or investors for expansion capital.

Step 6: Track progress and adjust plan as needed

• Set dates every quarter to compare goals vs actual performance.
• Review customer feedback, financials, and metrics regularly to spot issues.
• If progress is off-track, reassess and modify plan quickly to get back on target.

13. Creating a Unique Atmosphere

How To Open A Cafe

Exploring ways to create a unique and inviting atmosphere in the cafe, such as through decor, music, and lighting

Making your cafe vibe welcoming and one-of-a-kind can be game changing for bringing in customers and keeping them coming back. The mood you create depends on stuff like interior design, tunes playing, and lighting.  Nailing those atmosphere details makes your spot feel special and tailored to your guests. So take the time to craft a space people absolutely want to hang out in – it’ll be well worth it.

First, really get to know your target customers – what do they value? What aesthetics and vibes do they respond to? Decor should cater to their tastes. Here is a short list of things to get you thinking about designing a warm, inviting cafe atmosphere:

Lighting:

• Pendant lights: Opt for vintage-inspired Edison bulbs or ornate metal pendants to cast a cozy glow over seating areas. Stagger heights for visual interest.
• Recessed lighting: Install recessed can lights evenly spaced throughout the ceiling to provide bright, even ambient lighting. Use daylight or soft white bulbs.
• Table lamps: Place stylish table lamps with fabric lampshades on side tables and host stands for intimate lighting.
• Natural light: Take advantage of sunshine by having seating areas near large storefront windows. Use solar shades to manage glare.
• Dimmer switches: Install dimmer switches to control recessed and pendant lighting so you can adjust the mood for breakfast vs dinner service.
• Accent lighting: Use track lighting or picture lights to create a spotlight effect drawing attention to decorative elements like plants or wall art.

Furniture:

• Theme-based: For a retro diner look, use chrome and vinyl. For modern, choose sleek wood and leather. For rustic, pick worn, reclaimed wood pieces.
• Lounge seating: Provide plush, sink-in couches and armchairs for leisurely lounging. Top with patterned throw pillows and blankets.
• Vintage finds: Scout garage sales, thrift stores, and flea markets for charming second-hand chairs, tables, shelves and curios to display.
• Communal tables: Long 8-12 seat shared tables foster a lively, interactive ambiance. Great for large groups.
• Defined spaces: Cluster armchairs around low coffee tables to create intimate conversation areas separate from dining zones.

Decor:

• Local art: Hang paintings, photos, mixed media from area artists. Spotlight with track lighting. Rotate pieces seasonally.
• Eye-catching murals: Commission a local muralist to paint a stylized focal wall featuring your cafe name or theme.
• Chalkboard walls: Use black or colored chalkboard paint on designated walls for menu features, specials or fun customer doodling.
• Plants and flowers: Display leafy green plants on shelves, succulents on tables, fresh-cut blooms or devils ivy to bring life indoors.
• Rugs and blankets: Layer Turkish cotton rugs and woven throws over seating to make intimate spaces feel extra cozy.
• Pendant lamps: Suspend low-hanging pendant lights over tables to provide warm, focused task lighting.
• Props and signage: Mount vintage tins, signage, coffee bean sacks to reinforce branding and theme.

Creating a unique and inviting atmosphere in a cafe can be crucial for attracting and retaining customers. However, it’s important to do your research on contemporary cafe designs and understand what environments customers love right now.  The ambiance you craft should feel fresh, stylish and aligned with current trends, like industrial chic or modern tropical vibes. An outdated or off-brand aesthetic can be a turn-off.

Make sure to scope out successful new cafes in your area and consume design content online and in magazines. Immersing yourself in the latest and greatest cafe interiors ensures the atmosphere you build matches current customer tastes and expectations.  While signature elements keep your spot unique, sticking to en vogue decor, lighting and music styles demonstrates you understand what target audiences find attractive. With research and insights, you can craft an atmosphere that wows today’s cafe crowds and keeps them coming back. While I’m a big fan of doing this all yourself and saving coin on design, if you really don’t have an eye for current trends and interior design you may want to engage with a commercial interior designer.

Incorporating the cafe’s branding and theme into the atmosphere

Working your cafe’s brand and theme into the vibe is important for making things feel cohesive. When everything ties together, it sticks in customers’ minds!

There’s tons of places to showcase your signature style, like:

Interior Design:

• Nautical theme – Distressed wood plank walls, antique ship wheel tables, fishing net canopies, rope accents, porthole mirrors.
• Retro diner – Black and white checkered floor, chrome tube stools, red leather booths, Rock n’ Roll memorabilia, jukebox, roller skates decor.
• Jungle theme – Hanging rattan chair swings, faux tropical leaves, bamboo wallcoverings, banana leaf print fabrics, tiger/zebra/elephant art, thatched roofs over tables.

Extreme examples I know but you get the idea.

Menu Design:

• Handwritten font with images of pizza slices, coffee cups, etc. Fun coloring pages style with logo design element.
• Sleek black sans-serif font and lines on white background.

Branded Merch:

• Barista aprons and caps with logo, slogan or mascot. Customer tees and tanks screenprinted.
• Reusable cups looking like classic diner malt glasses. Totes with cool graphic logo and motto like “Best Brews & Eats!”
• Specialty coffee blends with quirky names. Pour over kits. Coffee-scented candles with branding.

Music:

• Plush lounge with mahogany walls and leather furniture could feature Norah Jones, Ray LaMontagne.
• Spotify playlists like LoFi for relaxed café environments.
• Open mic nights for local musicians. Spotify playlists named after different menu items.

Getting creative with branding across the customer experience helps craft a one-of-a-kind spot they’ll remember.

Encouraging customer engagement and interaction

Getting customers engaged and chatting is key for creating loyal regulars and making your cafe more than just a spot to grab coffee. When guests get involved, they feel part of something special. Next time they’ll stick around longer and come back more often.

There’s lots of easy ways to amp up that interaction:

• Provide welcoming and friendly customer service: Ensure that your staff greets customers warmly and provides excellent service throughout their visit.
• Offer loyalty programs: Reward customers for their loyalty by offering points or discounts for frequent visits or purchases.
• Encourage customer feedback: Provide opportunities for customers to leave feedback through comment cards or online surveys. Use their feedback to improve the cafe experience.
• Host events: Host events such as live music performances, trivia nights, or book clubs to bring people together and encourage them to interact with each other.
• Create a social media presence: Engage with customers on social media platforms like Facebook and Instagram by sharing updates, promotions, and engaging content. Respond to customer comments and messages promptly.
• Personalize the experience: Get to know your customers by remembering their names, preferences, and orders. This can make them feel appreciated and encourage them to return.
• Showcase local art and culture: Displaying local art or hosting events that celebrate the local community can create a unique and inviting atmosphere.
• Provide games and entertainment: Provide board games or other activities to encourage customers to interact and have fun while in the cafe.
• Offer free Wi-Fi: Offering free Wi-Fi is a great way to encourage customers to stay longer and engage with each other or with the cafe’s online presence. Also a great way to collect email addresses for your mailing list.
• Create a comfortable environment: Ensure that the cafe’s atmosphere is comfortable and inviting, with appropriate lighting, seating, and music.

14. Building Relationships with Suppliers

How To Open A Cafe

Developing relationships with suppliers to ensure consistent quality and pricing

Having solid relationships with suppliers is mega important for cafes. It means you’ll get quality ingredients and products reliably delivered at fair prices.

Here’s some tips for getting tight with suppliers:

• Do your research to find ones that truly fit your cafe’s needs – compare quality, pricing, delivery speed, etc.  Price is important, but don’t substitute price for quality.  The customer will always pay for quality, they don’t often settle for cheap and nasty.
• Chat often to address any issues quickly and share feedback on their offerings. Open communication is key.
• Swing by their facilities sometimes to check on standards and processes. But call ahead first!
• Work together to create custom products or offers that are unique to your cafe. This helps you stand out!
• Pay those invoices on time, every time. You want a rep as a reliable partner they can count on.

Collaborating with suppliers feels less like a transaction and more like a partnership. Take care of them and they’ll take care of you!

Exploring opportunities for mutually beneficial partnerships with suppliers

Teaming up with suppliers in win-win partnerships can help cafes lock in an awesome supply chain. Plus, it spreads the word about your cafe to new crowds!

Finding ways to collaborate where both sides benefit allows you to tap into what makes each partner unique. So keep your eyes open for chances to join forces with vendors in ways that are mutually rewarding. Everyone gets a boost when cafes and suppliers work together creatively.

• Team up with local farms – feature their stories on your menu and promote each other to customers.
• Join forces with nearby bakeries, cheese shops, chocolate factories to showcase artisan goods while spreading the word about their wares.
• Partner with brewers or drink brands to offer a legit beverage selection. They can name your cafe as a primo partner. Wins all around!
• Get the inside hookup on the latest equipment by collaborating with suppliers. Become their flagship showcase location.
• Support charities you care about through special menu items or donations. Spread awareness to their passionate supporters.
• Spotlight local artists by displaying and selling their works in your space. Customers discover new talent.

15. Dealing with Challenges

How To Open A Cafe

Identifying potential challenges and risks that may arise in operating a café

Running a cafe comes with potential challenges – but being prepared is half the battle! Here’s some common risks and how to address them:

• Competition is tough out there, so you gotta find ways to stand out from other cafes. Offer unique menu items, top-notch service, cool events that delight customers.
• Stay flexible – slow seasons happen. Adjust staffing, trim costs, run promotions to bring in business. A solid financial cushion helps weather ups and downs.
• Hiring and keeping awesome staff can be tricky. Offer perks like flexible schedules, employee discounts, competitive pay. A happy team means happy customers!
• Disruptions to ingredient supply can happen unexpectedly. Have backup supplier options and enough inventory to ride out shortages.
• Safety first! Follow all food prep guidelines meticulously to avoid illness. Adhere to health codes for facilities too.
• Know your legal obligations for licensing, regulations, employment law and stay compliant. Work with advisors to tick all the boxes. Companies like Employsure can help ensure you’re compliant with all matters regarding staff.
• Budget wisely, control portions and inventory, stick to payment terms with vendors. Handle the money management properly.

Preparing for likely risks means you can pivot when challenges pop up!

16. Staying Current with Industry Trends

How To Open A Cafe

Staying up to date on current trends and innovations in the cafe industry

Staying ahead of the latest cafe trends is key to keeping customers happy and beating the competition. Some hot things happening now:

• Sustainability is huge – using eco-friendly materials, reducing waste, implementing composting, etc. Customers care about the planet!
• More plant-based and vegan options are popping up as people adopt meatless lifestyles.
• Folks are getting pickier about specialty, artisan coffee. Dial in your bean game and brewing techniques.
• Everyone wants a personalized, custom-crafted drink just for them. Offer add-ins and tweaks to standard menu items.
• Social media marketing is a must – attract customers through cool social content and engage them online.
• Get involved in your community through events, partnerships and sponsorships. Be a local go-to spot.
• Mobile ordering and payment options are expected now. Get seamlessly set up through apps and your website.

Keep an eye on industry news and chat with other cafe owners to catch the next big wave and ride it early!

Exploring new technologies and techniques to improve the cafe’s operations and customer experience

Running a cafe ain’t what it used to be! With all the amazing new technology and equipment available these days, there are tons of cool ways to step up your cafe operations and wow your customers. We’re talking next level coffee and service.  Upgrading to modern systems and gear might sound intimidating or expensive. But going high tech can actually save you time and money in the long run – not to mention make your customers’ day with faster service and crazier delicious drinks.

Even small changes can have a big impact. Little touches like mobile pay or digital menus make your shop feel cutting edge. And efficiency boosters like automated brewers and inventory trackers give you superpowers!   So embrace your inner Tony Stark and deck out your cafe with the latest and greatest tech. Your bottom line and google stars will thank you.

Here are some ways you can embrace new tech and techniques:

• Online ordering lets customers skip the line and customize drinks exactly how they want ’em.
• Mobile pay options like Apple Pay make checkout a breeze – just tap and go! No more waiting for checks.
• Digital menu boards can display super cool graphics and videos to showcase your offerings.
• Get feedback through surveys and review sites to improve based on what customers love.
• Inventory software helps track stock and forecast demand so you never run out of ingredients.
• Smart appliances like uber milk improve speed and consistency at the coffee machine.
• Virtual reality could let folks take interactive cafe tours from home. Wild stuff coming!
• Eco-friendly equipment like Energy Star fridges saves power and bucks in the long run.
• Grinders with automatic weight settings provide perfect coffee dose every time.
• Collect emails with a signup page for valuable newsletters and promos.

Attending industry events and networking with other cafe owners to stay informed and connected

Attending industry events is a total game-changer for cafe owners! Nothing beats in-person networking and learning about the latest trends. Consider attending events like the ones below:

• Local Coffee Festivals – grab a booth and rub elbows with coffee pros from around the globe. Sit in on panels and demos on new brew methods, sustainable sourcing, you name it.
• Melbourne International Coffee Expo – we’re talking hundreds of vendors showing off cutting-edge commercial equipment. Plus workshops on improving your roasting, brewing, packaging and more.
• Cheer on crazy talented baristas at the Australian Barista Championships as they whip up mind-blowing latte art and pulled shots. Serious inspo!
• Foodservice Australia covers everything cafe and restaurant related – grab killer ideas on new menu items, staffing solutions, social media marketing. Come home with a notebook full of inspiration!
• Don’t sleep on local food festivals either – super fun for connecting with other business owners in your neighborhood. Showcase your latest offerings and make some hometown fans.

Attending just one big industry event per year keeps you miles ahead. And consider joining the Australian Specialty Coffee Association for ongoing education, resources and community.

17. Customer Feedback and Surveys

How To Open A Cafe

The importance of gathering customer feedback and insights

Asking for honest opinions from the folks who keep your cafe running – your customers – gives you priceless intel. Feedback shows what people LOVE about your spot that you should keep doing more of. Maybe it’s the chill vibe, fast service, or those to-die-for croissants.  It also uncovers what needs improvement like inaccurate orders, uncomfortable seating, or high prices. Catching issues early is key before customers walk.  By constantly gathering feedback through surveys, online reviews, and focus groups, you understand exactly how to exceed expectations.

Feedback directly guides your most important decisions – what to add to the menu, how to train staff, when to renovate or redecorate.  Essentially, your customers tell you how to be better every day. Listening to them is what takes you from good to great.  You can have amazing coffee and food, but that feedback loop of constantly improving is every successful cafe’s secret sauce.

Here are some strategies for collecting feedback from customers:

Surveys:

• Create a short 5-question survey on your website and share via email/social media
• Use SurveyMonkey or Google Forms for easy creation and analytics
• Offer a 10% off coupon or free drink for completed surveys
• Ask questions on service, food/drink, cleanliness, atmosphere

Comment Cards:

• Print comment cards with prompts like “What did you enjoy most?”
• Place beside registers with pens and a locked suggestion box
• Review weekly and implement feasible suggestions
• Reward thoughtful responses with free treats

Focus Groups:

• Recruit 8-10 engaged customers to provide detailed feedback
• Provide snacks, drinks, and $10 gift cards as incentives
• Ask strategic questions about brand perception, preferences, experiences
• Summarize findings in a report to inform business decisions

Social Media Polls:

• Post weekly polls on Instagram/Facebook asking for opinions
• “Which new menu item should we add?”
• Monitor engagement and comments for additional insights

18. Outsourcing and Automation

How To Open A Cafe

Identifying tasks that can be outsourced or automated to improve efficiency and reduce costs

Figuring out what tasks can be handed off to others or simplified with tech tools is a super smart move for cafes looking to streamline operations and cut costs.  The goal is to free up your time and headspace to focus on the most important stuff – delivering amazing coffee and food experiences. Outsource repetitive or specialised work like bookkeeping, delivering orders, managing payroll. Automate backend tasks like tracking inventory or processing reservations. Doing this analysis allows you to run a tighter ship, avoid unnecessary work, and use your budget strategically.

Here are some strategies to consider:

• Figure out which tasks eat up the most staff time – prep work, inventory, bookkeeping? Offload those time sucks first.
• Explore outsourcing options to lighten the load – accountants, delivery services. Worth the money.
• Automate repetitive tasks like orders, stock tracking, and reservations to boost efficiency. Apps can be game changers!
• Do the math to confirm outsourcing or automating saves more than doing in-house. Don’t go backwards!
• Maintain oversight on outsourced tasks to ensure quality – especially important for food prep and delivery.
• Train your team thoroughly on any new tech or processes. Smooth adoption means better results.
• Keep your finger on the world of AI, so much is developing there at such a fast pace.

With smart outsourcing and automation, you boost productivity and lower costs. Just be strategic about what and who you hand off tasks to. The goal is improving operations, not complicating them.

There are several tasks that can be outsourced in a cafe, including:

1. Accounting and bookkeeping services
2. Marketing and advertising campaigns
3. Website design and maintenance
4. Social media management
5. HR and payroll services
6. Food and beverage supplies and deliveries
7. IT services and technical support
8. Equipment repairs and maintenance.

19. Technology and Innovation

How To Open A Cafe

Exploring the role of technology in the cafe industry, such as mobile ordering or digital menu boards

Technology has become a total game-changer for modern cafes! Here are some key ways it can really benefit operations and customers:

• Mobile ordering apps allow customers to skip the line and grab their lattes fast. Major time saver!
• Digital menus make it simple to update offerings, display nutrition info, and run promotions.
• POS systems are clutch for streamlining order taking, payments, and stock levels.
• Online reservations let guests book tables ahead of the morning rush. Beat the crowds!
• Loyalty programs incentivize return visits with rewards for dollars spent. Apps make joining a breeze.
• Social media is perfect for sharing new menu drops, deals, events and connecting with customers.

• Self-service kiosks – Allow customers to browse menu, place/pay for orders themselves to speed up service
• Smart thermometers – Monitor freezer and fridge temps remotely to ensure food safety compliance
• Virtual reality menus – Provide an immersive ordering experience and reduce paper waste
• Automated coffee equipment- Produce consistent quality drinks at high speeds during rushes
• Customer feedback tablets – Allow guests to easily provide real-time feedback after dining
• Digital signage – Display dynamic menus and promotions vs. static printed signs
• Food delivery management systems – Integrate with services like UberEats and DoorDash to streamline delivery
• Smart security cameras – Enhance safety and allow remote monitoring of facilities
• Accounting software – Automate bookkeeping tasks like invoicing and reporting
• Customer relationship management (CRM) systems – Track customer data and interactions to personalize service
• Cloud-based POS – Provides flexibility to manage orders, menu, inventory from any location

When used smartly, technology allows cafes to boost efficiency, sales and customer satisfaction. The key is choosing tools that truly benefit your business goals and audience needs.

20. Balancing Creativity and Business

How To Open A Cafe

Discussing the importance of balancing creativity and business considerations when running a café

Bringing creative ideas to life is how cafes make their mark and wow customers. Offering experiences they can’t get anywhere else keeps people coming back for more.  Dream up ways to showcase your cafe’s originality and passion – through your drinks, dishes, events, vibe and talent.     Standing out from the sea of other coffee spots takes creativity behind the scenes and in customer interactions. Make it memorable.

Here are some creative ways for cafes to stand out in a casual tone:

• Craft signature coffee blends and brewing methods to highlight your barista skills.
• Wow customers with next-level latte art like tulips, swans, or seahorses.
• Invent crave-worthy baked goods or desserts exclusive to your menu.
• Offer seasonal ingredients like fresh summer berries in creative dishes.
• Host fun events like comedy nights, flower arranging classes or paint nights.
• Launch a rewards program with prizes like free coffee, merch, or special experiences.
• Design an eye-catching interior with funky textures, colours, lighting. Hashtag decor!
• Teach cooking or latte classes for folks to explore new skills.
• Implement eco-friendly practices like composting and reusable packaging. Do good
• Partner with musicians or artists to display local talent.

Blend creative touches with solid business strategy by:

• Setting clear goals and regularly evaluating performance. Tweak as needed.
• Using customer feedback to guide offerings. Give people more of what they love!
• Training staff to unleash their creativity within business objectives.
• Balancing innovation with profitability. Creativity for the sake of creativity alone can sink you!

A splash of creativity and strategic decisions gives you the recipe for cafe success

21. Marketing and Promotion

How To Open A Cafe

Market and promote the cafe effectively

Marketing and promoting a cafe effectively can be a significant factor in attracting and retaining customers. Here are some ideas for marketing and promotion:

1. Create a website: A website is an essential tool for any business, and it can be used to showcase the cafe’s menu, hours of operation, location, and contact information. It’s also an opportunity to share the cafe’s story and values.
2. Establish a social media presence: Social media platforms like Facebook, Instagram, and X are excellent tools for promoting the cafe and interacting with customers. Share photos of the cafe’s food and drinks, upcoming events, and special offers.
3. Run promotions and events: Running promotions and events can help generate excitement and draw in new customers. For example, offer a discount for first-time customers or hold a themed event such as a trivia night or live music performance.
4. Collaborate with other local businesses: Partnering with other local businesses, such as bakeries or breweries, can be a great way to reach a new audience and expand the cafe’s offerings.
5. Offer catering services: Catering services can help the cafe reach a broader audience and provide a convenient option for customers hosting events.
6. Host cooking classes: Hosting cooking classes can be a fun way to engage with customers and share the cafe’s expertise in food and drink.
7. Implement a loyalty program: A loyalty program can help encourage repeat customers and reward them for their loyalty.
8. Use email marketing: Email marketing is a cost-effective way to stay in touch with customers and keep them informed about new menu items, promotions, and events.
9. Utilize local media: Reach out to local media outlets to promote the cafe and share its story. Local newspapers, magazines, and TV stations are often interested in featuring local businesses.

Showcase customer reviews: Displaying positive customer reviews and testimonials can help build credibility and trust with potential customers

Creating a strong brand and establishing a loyal customer base

Having a rock-solid brand identity and loyal squad of regulars is so important for a cafe to succeed these days. You need your spot to stand out from the competition and have people choose you over Starbucks or the latest trendy coffee chain.

Building that recognizable brand starts with nailing down visual elements that customers instantly associate with your cafe – for example, having a cool logo, signature color palette, and branding that’s consistent across your signs, menus, cups, everything.

Also make sure your cafe has a unique vibe or specialty that you communicate clearly. Maybe it’s being the local spot for amazing brunch, using only ethically-sourced coffee beans, or serving craft brews you can’t find elsewhere. Find your niche!

On top of branding, you cultivate loyal, engaged customers by providing next-level customer service day after day. Make every visit pleasant and welcoming so they want to hang out for hours and come back every weekend.

Offer incentives like a rewards program or weekly happy hour deal to thank regulars and motivate more frequent visits. Stay top of mind with email marketing and social media love.

It takes steady effort to be known as the neighborhood’s go-to cafe with the best ambiance. But it’s the key to thriving long-term!

Here’s some more ideas:

Brand Ideas:

• Create a memorable name and logo that communicates your vibe
• Use a cohesive color scheme and fonts for branding
• Showcase local art and decor that tells your cafe’s story
• Print your logo on merch like t-shirts, reusable mugs and tote bags
• Have easily recognizable menu items, like a signature latte drink
• Host open mic or comedy nights to be known as the neighborhood creative space
• Give your cafe a quirky nickname that locals embrace like “The Brew Crew” or “Cups and Croissants”
• Create a branded soundtrack – curate a Spotify playlist to reinforce your vibe
• Develop unique food or drink items you become known for like “The Einstein Breakfast Burrito”
• Use branding elements like custom mugs, food wrappers, and employee uniforms
• Regularly refresh interior details like wall art, decor, music to keep the brand feeling current

Community Building Ideas:

• Reward regulars with loyalty perks and personalized service
• Host classes like latte art workshops or pour over tastings
• Partner with neighboring businesses for joint events or cross-promotions
• Sponsor a local sports team or community charity
• Display a community corkboard for flyers on local happenings
• Feature adoptable pets from the local animal shelter
• Give holiday gifts to regulars like cookies or eggnog lattes
• Highlight regular customers on a “Coffee Fan of the Month” board
• Work with the high school art class to feature student pieces
• Organize neighborhood clean-ups and donate coffee afterwards as thanks
• Collaborate with other local businesses on a “small business Saturday” event
• Sponsor community fundraisers donating a percentage of sales
• Display a giant neighborhood map for people to pin where they’re from
• Host free coffee tastings when new brews are released

22. Exit Strategies

How To Open A Cafe

Unforeseen circumstances or simply moving on to new ventures

Ending a cafe chapter can be tricky – but going in with a plan makes all the difference. Here are some considerations you can’t neglect:

• First, get super clear on where the biz currently stands – finances, profits, debts, etc. Know your numbers and market position.
• Figure out why you’re moving on – retirement, new venture, personal reasons? Your motivations shape the exit plan.
• If selling, strategise how to market it and vet buyers. A business broker can help attract good offers.
• For succession planning, choose a successor and train them thoroughly on operations before handing off the reins.
• Organize all essential documents – licenses, contracts, inventory lists, employee info. Make the transition smooth.
• Let staff, customers, vendors know early on and reassure them. Maintain those relationships!
• Explain the future game plan – will the cafe continue on? Rebrand? Close? Transparency reduces uncertainty.

Here’s an example of what an exit strategy plan may look like  for someone selling a cafe business within the next year to fund retirement.

Current State of Business:

• Valued at approximately $250,000 based on assets and profitability
• Revenue averaging $8,000/month with 20% profit margins
• Minimal outstanding debts or liabilities
• Loyal customer base and strong brand reputation

Preparation:

• Consult with a business broker to assist with valuation and listing the business for sale
• Organize financial records, inventory lists, employee info, licenses, and contracts
• Assess staff interest in taking on leadership roles
• Improve curb appeal with renovations like exterior paint or signage
• Consider seller financing or lease-to-own options to improve chances of sale

Sale Process:

• List business for sale on relevant platforms like Gumtree etc.
• Promote listing through targeted digital and print advertising
• Vet potential buyers carefully and host open houses
• Be flexible on negotiation points like timeline, price, transitional period
• Review all offers with a lawyer before accepting
• Agree on a transition period for current owner to train new owner

Post Sale:

• Formally communicate sale to all staff and key stakeholders
• Offer assistance during transitional period to set up new owner for success
• Celebrate years of memories and accomplishments with staff and regulars

Different options for selling the business or passing it on to a new owner

When the time comes to move on from your cafe, you’ve got options like selling the whole operation, just certain assets, passing it to family or staff, or franchising. Each has pros and cons.  I’d talk to a lawyer first to understand the legal considerations if you do decide to exit the biz. And be open with potential buyers about finances and records – transparency builds trust.

Selling the entire operation is often preferred by buyers who want the full business – assets, name, customer base, etc. It offers you a clean exit, but requires finding the right buyer willing to purchase everything at fair market value. You’ll go through a full due diligence process providing detailed financials and records. It’s important to be transparent about strengths and weaknesses to establish trust and agree on a fair price. You’ll also need to plan a transition period to train the new owner on systems and operations.

Selling select assets like equipment is lower risk but also limits potential sale value. You forgo selling intangibles like brand identity and customer relationships. But it does allow holding onto your most valuable assets or equity. Make sure to get assets appraised appropriately before listing them for sale.

Passing the business to family or employees rewards loyalty while ensuring your legacy. But make sure the new leader has the skills, experience and drive to take over. Create a formal succession plan outlining the transition of ownership, management and responsibilities over time.

Franchising allows rapid expansion of your brand through licensing while generating ongoing income from royalties. But you sacrifice control and will need clear, thorough processes to teach others your model. You’ll also need to budget for legal fees and meet franchise disclosure requirements. Those of you who know me, would know my stance on franchising. I hold firm beliefs that franchising in hospitality in Australia just doesn’t work. Happy to discuss this in another article.

Final Thoughts

Opening a cafe presents a great chance to enrich your community. As a small business owner, you can craft a unique brand, curate an inviting space that reflects your personality, and make a meaningful impact.

Operating a cafe also brings complex challenges. Careful planning and tireless effort helps you tackle obstacles as they arise. The rewards of seeing your business prosper over time and contribute to the local economy makes the hard work worthwhile.

Moreover, being a cafe owner provides opportunities to assemble a great team. You can empower employees to gain new abilities while cultivating an uplifting workplace.

Collaborating with residents, hosting public events, and partnering with fellow businesses can earn you a devoted customer base and prominent neighbourhood role.

Though launching and managing a cafe has its difficulties, it can also be an enriching, purpose-driven venture. With dedication, resilience, and a commitment to excellent service, you can make your cafe a flourishing hub that brings happiness to patrons and community alike.

Frequently Asked Questions

So where to from here?

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