research about coffee shop business

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Coffee Shop Business

• Last Updated: January 17, 2023

Learn more about the Coffee Shop industry , and where to find more information about how to open your own Coffee Shop business . Don’t forget you can receive free or low-cost training and free professional business advice , from  your local Small Business Development Center !

Get a free Coffee Shop business plan template on our Business Plans page.

Coffee Shop Business Pandemic Impact & Recovery

The COVID-19 pandemic, shutdown orders impacted many food service businesses. Here is a look at the impact to the  Coffee Shop Business industry .

Despite the decline in coffee shops at the start of the pandemic , those that found innovative ways to adapt to the new operational realities allowed them to remain in service. In response to the shutdown orders, many coffee shops remained open on a limited basis closing cafes and shifting their service to drive-through lanes . With stay-at-home order lifting, many coffee shops resumed in-person service and saw a partial return of the customer. Stay-at-home orders shifted the workforce home , and with-it morning-commute consumers. Although single-serve coffee makers came on the market in the 1990s, they enjoyed a remarkable market share growth in the United States before the start of the pandemic with 40% of consumers reporting owning one in 2020.

A critical element of coffee shops is its own workforce, labor shortages is a prominent issue across industries and even more so to food service industries . Staff calling out sick or not being able to fill positions once shelter-in-place orders started lifting, caused service disruption to coffee shops and resulted in temporary or permanent shut downs. Although time has passed since COVID-19 emerged, the virus continues as a constant in society with the emergence of new variants . As a result, coffee shops should continue to adapt to overcome the challenges they face. Retaining the more successful strategies allowed many coffee shops to keep a competitive advantage and thrive .

• SBDCNet COVID-19 Small Business Resources
• SBDCNet Small Business Reopening Guide
• National Coffee Association Covid-19 Resource Center
• Specialty Coffee Association COVID-19 Resource Database

Coffee Shop Business Overview & Trends

Naics code: 722515, sic code: 5812.

This  Coffee Shop industry summary is from First Research , which also sells a full version of this report.

• “Companies in this industry sell coffee drinks and other food and beverages for consumption on the premises or for takeout. Major companies include Peet’s Coffee, Starbucks, and The Coffee Bean & Tea Leaf (all based in the US), as well as Caffè Nero and Costa Coffee (both based in the UK).
• The biggest US coffee chains operate stores abroad, primarily through licensing agreements. Starbucks owns and licenses about 32,000 locations worldwide. The world’s largest coffee consumers include Finland, Norway. And Iceland among other countries, according to the World Population Review.
• The US coffee shop industry includes more than 60,000 stores with combined annual sales of about $40 billion. Coffee shops are part of the specialty eatery industry, which also includes outlets specializing in products such as bagels, donuts, frozen yogurt, and ice cream.
• Competitive Landscape: Consumer taste and personal income drive demand. The profitability of individual companies depends on the ability to secure prime locations, drive store traffic, and deliver high-quality products. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete effectively by offering specialized products, serving a local market, or providing superior customer service. Coffee shops compete with businesses such as convenience stores, gas stations, quick-service and fast-food restaurants, gourmet food shops, and donut shops. The US industry is fragmented: the eight largest companies account for about 30% of revenue.”

The following Coffee business market research summary is from Euromonitor , which also sells a full version of this report.

The ongoing return of Americans to the office is prompting consumers return to coffee shops; however, inflationary pressures impact on discretionary spending along with the fluctuating change in fuel prices are having a cyclical impact on people making a drive to the coffee shop. Euromonitor also reports on the increase popularity of cold coffee, which includes a year-round demand for iced-coffee, cold brew and other cold formats. Given the global sourcing of coffee beans, this industry is also susceptible to the impact of supply chain issues and climate change.

The following are select key findings reported in the Trends & Reports from the National Coffee Association , which also sells a full versions of this report.

COVID Adaptation

The adaptation strategies of coffee shops as they pivoted when the pandemic first emerged seem to be here to stay. The most notable adaptations that appealed the most to consumers are the use of apps for ordering and drive-through service.  

Demographics

While consumption among younger consumers (ages 18-24) is less than their older counterparts, unchanged is their preference in coffee with this group choosing specialty coffees over a traditional brew by their older aged cohorts.

Coffee at Home

With many consumers buying coffee machines for their home, 27% of respondents tried to replicate their coffee shop experience. Industry adaptation can be seen as many branded coffee shops sell their signature brews as ground coffee and single-serve pods through online and brick-and-mortar retailers.

Coffee Shop Business Customer Demographics

IBISWorld reports on the major market segments for  Coffee & Snack Shops in the US . The full version of the report is available for purchase.  

• The Coffee & Snack Shops industry generates approximately $54.5 billion with the majority of establishments generating revenue from households
• $150,000 + (38.9%)
• $30,000-$69,999 (20.7%)
• $100,000-$149,999 (13.6%)
• $70,000-$99,999 (9.5%)
• Earning Less Than $30,000 (8.8%)
• Businesses (8.5%)

Coffee Shop Business Startup Costs

Cost to Open a Coffee Shop from Toast :

• The average cost to open a single coffee shop with seating is between $80,000-$300,000.
• The cost of opening a coffee food truck or kiosk is on the lower end (closer to $60,000 for the minimum possible cost), and including both seating and drive-through coffee is higher and can reach the $300,000+ range.

The Total Cost to Open a Coffee Shop from CrimsonCup :

• Coffee shop with seating only: $80,000 to $325,000
• Coffee shop with a drive-through only: $80,000 to $225,000.
• Coffee shop with both seating and a drive-through: $80,000 to $350,000
• Coffee kiosk/coffee stand/mobile coffee cart: $60,000 to $120,000
• Mobile coffee food truck: $50,000 to $155,00
• Adding a brew bar to an existing coffee shop: $1,500 to $25,000. The lower price is for buying equipment only.
• Adding specialty coffee service to a bakery or cafe: $25,000 to $75,000

How to Run Your Own Coffee Shop from Investopedia :

• A sit-down coffee shop typically costs between $80,000 and $275,000 to set up.
• A large drive-through shop can cost between $80,000 and $200,000.
• A small kiosk may cost between $60,000 and $100,000.
• A franchised sit-down coffee shop can cost up to $650,000.
• A licensed brand-name store may cost $315,000 to open.

Coffee Shop Business Plans

• Coffee Shop Business Plan – Bplans
• How to Write a Coffee Shops Business Plan – Toast
• Coffee Shops Business Plan – CrimsonCup
• Gourmet Coffee Shop Business Plan – The Finance Resource
• Coffee Shop Business Plan – Profitable Venture

Coffee Business Associations

Trade associations often are excellent sources of information on an industry. Here are some relevant industry associations:

• National Coffee Association
• Specialty Coffee Association of America
• Coffee Roasters Guild
• Green Coffee Association
• International Coffee Organization

Coffee-Related Business Regulations

At the federal-level, the U.S. Food & Drug Administration provides guidance on starting a food-related business . Additionally, there are national employee regulations setting the minimum wage and the benchmark at which employers are required by the Affordable Care Act to provide their employees access to healthcare. The majority of regulations for the food service industry are set at the state and local-level. Provided below are some national regulations and standards

• National Coffee Association – Issues and Regulations
• National Coffee Association – Regulatory Developments
• U.S. Food & Drug Administration – State Retail and Food Service Codes and Regulations by State
• Fairtrade International – Fairtrade Standard for Coffee
• Toast – 10 Permits and Licenses Needed To Open A Coffee Shop

Coffee Business Publications

• Fresh Cup Magazine
• Daily Coffee News by Roast Magazine
• Barista Magazine Online
• Beverage Industry
• Bon Appetit

Coffee Shop Business Employment Trends

Here is the  Food and Beverage Serving   labor market summary from the Bureau of Labor Statistics.

“Pay: The median hourly wage for food and beverage serving and related workers was $12.49 in May 2021. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $8.80, and the highest 10 percent earned more than $16.40.”

“Work Environment: Food and beverage serving and related workers are employed in restaurants, schools, and other dining places. Work shifts often include early mornings, late evenings, weekends, and holidays. Part-time work is common.”

“Job Outlook: Overall employment of food and beverage serving and related workers is projected to grow 9 percent from 2021 to 2031, faster than the average for all occupations. About 955,100 openings for food and beverage serving and related workers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.”

Additional Small Business Resources

Already in business or thinking about starting your own small business? Check out our various small business resources :

• View our business reports here:  Small Business Snapshots
• View our small business help topics here:  Small Business Information Center
• View our industry-specific research here:  Market Research Links
• View our small business cybersecurity resources here:  Cybersecurity
• View our pandemic business resources here:  COVID-19 Publications

Remember, you can also receive free professional business advice and free or low-cost business training from your  local Small Business Development Center !

Photo credit: Photo by bradley on Unsplash

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Coffee Shop Business Plan Market Research: Fueling Your Entrepreneurial Dreams

Though opening a coffee shop can be an exciting venture, meticulous preparation, and market research are necessary to assure its movement. A strong business plan is necessary, and detailed market research is an integral part of that plan.

Coffee shop business plan market research requires understanding the market, identifying your target customers, analyzing competitors, and evaluating location, pricing, and consumer trends to create a solid foundation for a coffee shop. Market research is a fundamental step in developing a coffee shop business plan. 

I’ll discuss the value of market research for coffee shop enterprises in this article and offer some tips on how to carry it out well in order to create a killer business plan.

Table of Contents

Understanding the Market

Customers have a more sophisticated palate and a need for improved coffee experiences due to specialty coffee’s rising popularity. They look for coffee shops that have a wide selection of premium beans, professionally made drinks, and a distinctive atmosphere. A robust coffee culture has emerged due to this change in customer expectations, where coffee shops are now more than just places to grab a quick cup of joe.

However, this surge in demand has led to a highly competitive market. Coffee shop owners must navigate through a crowded landscape to establish their unique value proposition and carve out a loyal customer base. It is essential to offer a compelling blend of exceptional coffee, personalized service, inviting atmospheres, and innovative offerings to stand out from the competition.

By understanding the broader coffee shop market dynamics, including consumer preferences, emerging trends, and evolving expectations, entrepreneurs can better position themselves to meet the needs of discerning coffee enthusiasts. Armed with this knowledge, they can craft a business plan that leverages the market opportunities while differentiating their coffee shop to attract and retain customers in an increasingly competitive environment.

Read more about: Business Plan Presentation Coffee Shop: Pitch Perfect

Identifying Target Customers

When it comes to building a great coffee shop, a key aspect is the identification and understanding of your target customers. This process starts by defining your coffee shop’s niche, whether it’s a cozy neighborhood café that fosters a sense of community or a trendy espresso bar with a modern and upscale vibe. By clarifying your niche, you can align your offerings and create an atmosphere that resonates with your target audience.

To truly comprehend your target customers, it’s essential to consider various factors. Location plays a significant role as it influences the demographics of the area and the foot traffic your coffee shop will receive. Understanding the local community and its preferences is crucial for tailoring your menu, pricing, and overall concept.

Demographics, such as age, income level, and occupation, provide insights into the characteristics of your potential customers. This information helps you cater your offerings to their specific needs and preferences. Furthermore, psychographics, which includes interests, values, and lifestyle choices, allow you to delve deeper into understanding what your target customers value in a coffee shop experience.

Market Segmentation

Segmentation is a powerful tool that enables you to divide your target market into distinct groups based on specific characteristics. By doing so, you can tailor your offerings and marketing strategies to effectively meet the needs of each segment. In the coffee shop industry, there are several common segmentation factors that can be utilized to gain a deeper understanding of your customers.

One important factor to consider is age. Different age groups often have varying preferences when it comes to coffee consumption. For instance, younger demographics may lean towards specialty coffee and experimental flavors, while older generations may prefer traditional and familiar options. By identifying the age ranges within your target market, you can curate a menu and ambiance that cater to their tastes.

Lifestyle is another crucial segmentation factor. Some individuals may lead busy, on-the-go lifestyles, seeking quick and convenient coffee options, while others may prioritize a leisurely coffee experience, valuing ambiance and comfortable seating. Understanding the lifestyle choices of your target customers allows you to design your coffee shop’s offerings and services accordingly.

Preferences, such as the type of coffee, brewing methods, and additional menu items, also contribute to effective segmentation. Some customers may have a preference for espresso-based drinks, while others may enjoy pour-over or cold brew options. By tailoring your menu and offerings to suit the preferences of different segments, you can cater to a broader range of coffee enthusiasts.

Segmentation allows you to gain a deeper understanding of your target market, their specific needs, and their preferences. Armed with this knowledge, you can develop marketing campaigns that speak directly to each segment, craft targeted promotions, and create personalized experiences that resonate with different customer groups. Ultimately, segmentation empowers you to build stronger connections with your customers, foster loyalty, and drive the long-term growth of your coffee shop.

Competitor Analysis

Analyzing competitors is a vital aspect of market research when starting a coffee shop. Begin by identifying the existing coffee shops in your area and delve into a comprehensive study of their strengths, weaknesses, and market positioning. To gain firsthand insights, visit their establishments and immerse yourself in their ambiance, menu offerings, pricing, and customer experience.

By closely examining your competitors, you can uncover valuable information that will enable you to identify gaps in the market. Pay attention to areas where your competitors may be lacking or not fully meeting the needs of customers. This analysis will help you develop effective strategies to differentiate your coffee shop and offer a unique value proposition.

By understanding what your competitors are doing well, you can strive to match or exceed their strengths while also capitalizing on areas where they may fall short. This will allow you to carve out a distinctive space in the market and attract customers who are looking for something different or better.

Read more about: Business Plan Outline for Coffee Shop: A Caffeinated Business

Location Analysis

The significance of a location cannot be overstated when it comes to the improvement of a coffee shop. Conducting a comprehensive analysis of potential locations is essential to make an informed decision. Factors such as foot traffic, accessibility, nearby businesses, and competition should be carefully considered.

Foot traffic is a critical aspect to evaluate when choosing a location for your coffee shop. Look for areas with a consistent flow of people, such as busy streets, commercial districts, or near popular attractions. A higher footfall increases the potential customer base and the visibility of your coffee shop.

Accessibility is another crucial factor. Ensure that the location is easily reachable for your target customers, whether by public transportation or car. Convenient access encourages customers to visit your coffee shop regularly and increases the chances of attracting new customers.

Consider the surrounding businesses in the vicinity of the potential location. Are there complementary establishments that can drive traffic to your coffee shop? For example, being near offices, colleges, or gyms can attract professionals, students, or health-conscious individuals seeking a coffee break or a place to study.

Pricing and Financial Analysis

Start by examining the pricing strategies of other coffee shops in your area. Consider factors such as the quality of ingredients, level of service, and the uniqueness of your offerings. This analysis will help you gauge the market’s price range and position your coffee shop accordingly. While it’s important to remain competitive, also consider the value you offer to customers through exceptional products and experiences.

In addition to competitor analysis, conducting a thorough financial analysis is vital. Take into account the costs associated with running your coffee shop, including rent, equipment, staffing, and supplies. Understanding your overhead costs and profit margins will guide you in setting prices that cover expenses while ensuring profitability.

It’s important to strike a balance between offering value to customers and generating revenue for your coffee shop. Consider factors such as the perceived value of your products, customer willingness to pay, and your desired profit margins. Experimentation and periodic review of your pricing strategy will help you fine-tune and optimize your prices as market dynamics evolve.

Consumer Trends and Preferences

One area to focus on is brewing methods. Stay updated on the latest brewing techniques, such as pour-over, cold brew, or AeroPress, as they gain popularity among coffee enthusiasts. Offering a variety of brewing methods can cater to different taste preferences and provide a unique experience for your customers.

Alternative milk options have also become increasingly important due to changing dietary preferences and concerns about sustainability. Stay informed about the various non-dairy milk alternatives, such as almond, oat, soy, or coconut milk, and consider offering a range of options to accommodate different dietary needs.

Sustainability practices are another significant trend in the coffee industry. Consider sourcing coffee beans from sustainable and ethical suppliers, implementing eco-friendly packaging solutions, and promoting recycling and waste reduction initiatives.

The demand for organic and fair-trade coffee continues to grow as consumers prioritize ethical and responsibly sourced products. Stay knowledgeable about certifications and labels associated with organic and fair-trade coffee and consider incorporating these options into your menu to meet the preferences of socially conscious customers.

Read more about: Business Plan Proposal for Coffee Shop: A Coffee Lover’s Blueprint

Marketing and Promotions

Start by understanding your target audience and their preferred communication channels. Consider whether your customers are more active on social media platforms, rely on local advertising, or respond well to partnerships with other businesses. This knowledge will enable you to allocate your marketing resources wisely and tailor your messaging to resonate with your audience.

Social media has become a powerful tool for engaging with customers and promoting your coffee shop. Identify the platforms where your target audience is most active and develop a social media strategy that includes creating compelling content, interacting with customers, and running targeted advertising campaigns.

Local advertising is another effective avenue for reaching potential customers. Explore advertising options in local newspapers, magazines, radio stations, or through outdoor signage. By focusing on the local community, you can enhance brand visibility and attract customers in your immediate vicinity.

To increase your exposure and reach new client categories, think about forming collaborations with other companies. Collaboration with comparable companies, such as neighborhood bakeries or bookshops, can generate mutually advantageous chances for cross-promotion and brand exposure.

Research events and community activities that align with your coffee shop’s values and target audience. Participating in local festivals, farmers’ markets or charity events can help you build brand awareness, connect with the community, and create memorable experiences that leave a lasting impression on potential customers.

Market research is a fundamental step in developing a coffee shop business plan. By understanding the market, identifying your target customers, analyzing competitors, and evaluating location, pricing, and consumer trends, you can create a solid foundation for a great coffee shop. Remember to regularly update your market research to stay ahead of changing trends and ensure the continued growth of your business. With careful planning and thorough market research, your coffee shop can become a thriving destination for coffee enthusiasts and a beloved part of the community.

Frequently Asked Questions

Questions: how important is market research for a coffee shop business plan.

Answer: It provides valuable insights into the market, target customers, competition, pricing, and consumer trends. It helps entrepreneurs make informed decisions, identify opportunities, and develop strategies to ensure the long-term growth of their coffee shops.

Question: What are the key components of market research for a coffee shop business?

Answer: Market research for a coffee shop business includes understanding the overall coffee shop market, identifying target customers, conducting competitor analysis, analyzing potential locations, evaluating pricing dynamics, staying updated with consumer trends and preferences, and developing effective marketing and promotional strategies.

Question: How can competitor analysis benefit a coffee shop business?

Answer: By studying their market positioning, menu offerings, pricing, and customer experience, entrepreneurs can identify gaps in the market and develop strategies to differentiate their coffee shop, attract customers, and offer a unique value proposition.

To learn more on how to start your own coffee shop, check out my startup documents here.

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Hi! I’m Shawn Chun

My adventure in coffee began when I first launched my first coffee shop back in the early 2000s. I had to figure out so many things on my own and to make it worse within 2 years of opening two large corporate coffee chains moved in just blocks away from me!

As I saw smaller and even some larger coffee shops in the neighborhood slowly lose customers to these giant coffee chains and slowly close up shop, I knew that I had to start getting creative…or go out of business.

I (like you may be) knew the coffee industry well. I could make the best latte art around and the foam on my caps was the fluffiest you have ever seen. I even had the best state-of-the-art 2 group digital Nuova Simonelli machine money could buy. But I knew that these things alone would not be enough to lure customers away from the name brand established coffee shops.

Eventually, through lots of trial and error as well as perseverance and creativity I did find a way to not only survive but also thrive in the coffee/espresso industry even while those corporate coffee chains stayed put. During those years I learned to adapt and always faced new challenges. It was not always easy, however, in the end, I was the sole survivor independent coffee shop within a 10-mile radius of my location. Just two corporate coffee chains and I were left after that year. All told the corporate coffee chains took down over 15 small independent coffee shops and kiosks and I was the last one standing and thriving.

Along the years I meet others with the same passion for coffee and I quickly learned that it is not only “how good a barista is” that makes a coffee shop successful, but the business side of coffee as well.

Hence why I started this website you are on now. To provide the tools and resources for up and coming coffee shop owners to gain that vital insight and knowledge on how to start a coffee shop successfully.

Stick around, browse through my helpful blog and resources and enjoy your stay! With lots of LATTE LOVE!

Share This Story, Choose Your Platform!

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How to carry out market research for a coffee shop

Do you find yourself drawn to the warm atmosphere of cosy coffee shops and crave the taste of coffee first thing in the morning? If so, you may be thinking of opening your own coffee shop. 

Market research is not only essential in giving you a better understanding of the current state of the coffee shop industry (from how it's doing, to what concepts are hot or not), but it also helps you decipher how to mould different aspects of your business so that it attracts the right customers. 

To guide you through this process, we've outlined here the key steps in conducting thorough market research for a coffee shop.

What are the objectives of market research for a coffee shop?

There are three main objectives of carrying out market research for a coffee shop. 

The first step is to make sure that the market is not already saturated with existing coffee shops by asking yourself the following questions: 

• Is the potential demand for coffee greater than the current supply?
• Is there a specific group of customers that can't find what they're looking for within the city's existing coffee shops and restaurants?
• Is there a street or area, in particular, that's lacking a coffee shop like the one you'd like to open?
• Will your desired area for business be able to support the arrival of a new coffee shop?

Once you've answered these questions, the next step will be using the information you've found to identify a concept that will attract your ideal customers to your coffee shop. If you're close to a university or financial district, you'll, of course, be more likely to welcome a certain group of customers than others and will have to concentrate on adapting to their habits, tastes and needs. 

The third (and certainly not least) aim of a coffee shop's market research is to gather the data needed to assess the sales potential of your coffee shop.

3 questions to ask yourself when carrying out market research for a coffee shop

Here's a figure that should kick your coffee shop market research motivation into overdrive: one out of every two businesses fails to pass the five-year mark. Success is anything but a given, but failure is not inevitable. 

By taking the time to carefully carry out market research for your coffee shop, you can ask the right questions and limit the risks involved. It's about making the right choices from the outset to give your business every chance of success. 

To help you kick off your market research, we've listed the top three questions you should ask yourself:

• What is your target customer, and what products and services are best suited to this group?
• How do you plan to take market share from your competitors? What strategies will you implement to set yourself about from the area's existing coffee shops and restaurants? 
• How do you intend to attract and retain customers?

Besides developing an attractive concept, you'll need to develop a strong marketing plan to get your name out there and create some hype around your coffee shop as the weeks and months go by. 

Trends to look out for in your coffee shop market research

Whichever industry you're working in, market research requires a detailed analysis of the market, its trends, and consumer expectations. You will also need to familiarise yourself with the regulations in force. 

Coffee shops, a growing trade?

Many entrepreneurs begin market research by checking out the health of the sector on a national scale. To do so efficiently, ask yourself the following questions: 

• Is the coffee shop market growing or shrinking? 
• How is the turnover of coffee shops evolving? 
• What are the main obstacles to business development? What kind of difficulties do coffee shop managers encounter? Are they under pressure from their suppliers or find it tricky recruiting qualified long-term staff?

To find this information, you can check out hospitality insight industries, such as  Allegra Stategies , which regularly provide online reports on the coffee and related retail and food industries.

You'll also need to take a deep dive into the main trends within the coffee shop market and compare whether your business model aligns with them. If you sense an emerging trend that hasn't yet been tapped into during your coffee shop market research, you may decide it would make more commercial sense to go against the grain. 

You should also look at the competitive dynamics of the coffee shop market. The question here is to determine whether coffee chains (such as Costa, Starbucks, and Pret A Manger) truly dominate the market or if the rising popularity of independent coffee shops indicates their potential to come up on top.

Understanding the expectations of coffee shop customers

Once you've delved into the current state of the coffee shop market, it's time to understand the expectations and changing needs of consumers for the market research of your coffee shop.

• What are the consumption habits of coffee shop customers today? Do they drop by on the way to work for a quick take-away latte or visit for a sit-in coffee and snack during lunchtime?
• What are the characteristics of a typical coffee shop customer? Are there significantly more office workers than families and young groups of friends?
• What is the average budget per customer?
• What are the most popular products sold? Americanos, flat whites or snacks such as flapjacks and scones?

To answer these questions thoroughly, we suggest you take some time out to talk to local coffee shop owners and the customers themselves to truly get into the heart of what draws people into coffee shops and keeps them coming back. The deeper you delve into the coffee shop industry, the more reliable and relevant your market research for a coffee shop will be. 

The rules and regulations of a coffee shop market research

Your market research for a coffee shop also provides an opportunity to familiarise yourself with the regulations related to operating a coffee shop.

To find out about these specific regulations in more detail, read our guide on how to start a coffee shop .

Analysing the demand for coffee shops in your area

Now that you've built up a decent enough knowledge of the coffee shop sector, it's time to cast your eyes over the characteristics of the area in which you'd like to set up your coffee shop, otherwise known as the local market. 

You can start by assessing its size: what is the population of the city or town and how many of them fall within your target group? You'll also want to make note of the profile of the population (from age and gender to job status and level of disposable income) as well as how often people visit the area in which you'd like to operate your coffee shop. 

As part of your coffee shop market research, it's also important to identify, within the local market, specific locations that are likely to attract the most potential customers (whether it be a busy shopping street, near offices, or beside the coast). It is undoubtedly near these locations that you'll be most drawn toward when deciding where to set up shop.

Finally, assess local customer expectations. Is there a demand for a hot drink or snack in particular that currently isn't being met?

...and checking out your competitors 

Conducting proper coffee shop market research also requires a thorough analysis of the competition at the local level.

Start by rounding up all the coffee shops (as well as cafes, delis and restaurants that offer hot drinks) located near your business. You should look at their concept, the type of products and services they’re offering, as well as the prices charged, and their target clientele.

This information will help place you in the best position to stand out from what everyone else is offering, by serving up a different concept. Or, alternatively, by selling products that compliment the types of services and products offered by other local businesses within the area.

Size them up

You should also check out how much space and seating capacity each of your competitors can offer customers. You'll want to know how many employees they have too, as well as the turnover for each place. 

Bear in mind that if some of these coffee shops are operating within an established chain such as Pret a Manger or Costa, their large marketing budgets will make them your fiercest competition in this regard.

Consider their reputation

Analysing the reputation of your competition will also prove very useful when doing the market research for your coffee shop. Speak to local business owners and residents to gather solid opinions on each places quality or products and customer service. Put aside some time to google them, too, and look up online reviews. 

The aim here is to understand what customers like and dislike, so researching both good and bad practices will help you draw inspiration for your own concept.

Analyse how they attract customers 

Another way to strengthen your business's chances of success is to check out the main ways in which your competitors attract and retain customers. Looking at a variety of different marketing practices will enable you to come up with a unique marketing plan that is just as effective but geared towards your specific target market. 

First of all, determine the channels (whether it's Instagram, their own website or an email newsletter) through which your competitors communicate with customers and share news of promotional offers. Evaluate how effective they are and, if you think you can do better, write down how and put these valuable observations into action.

Finally, and most importantly, set aside a budget for promoting your coffee shop and communicating with customers. It's important to remember that even if you do brew the best coffee in the entire city, it won't matter if no one knows about it - so take time to review your marketing plan and how much money you can afford to invest in each action, whether it's setting up a website or printing street flyers. 

Defining the concept of your coffee shop

Once you've gathered all the information above, you can consider your coffee shop market research done and it's time to put this data into use.

Perhaps, for example, your research led to the conclusion that the market is simply too small for a new coffee shop or the business idea you had in mind isn't in line with customer expectations.

Or (we're hoping, anyway) you may have found enough data that confirms the existence of a real business opportunity - enabling you to kickstart the process of launching your coffee shop.

In this case, begin by developing your concept. This will enable you to target a clearly defined customer base and offer a service that meets their expectations in every respect, whilst ensuring you stand out from the competition.

Developing your concept will also help you define the ways in which you'll attract and retain customers. Collate these methods (and their costs) into a marketing plan that aligns with the objectives of your business and the desires of your target market.

Carrying out a quantitative study to test your concept on customers

By this stage, you've invested more time than you have the money into your business. Once the money is involved, it's a risky game. So before devoting chunks of your own or other people's cash into your business, test your concept out amongst potential customers by carrying out a quantitative study.

This test aims to accurately present your offer to a maximum of potential customers and to validate your concept, or to refine it even more if necessary for your coffee shop market research. 

You can carry out a quantitative study in a variety of ways. For example, If you are present on social networks, you will be able to quickly measure this adhesion thanks to clear marks of interest: a like on your page or, better still, a subscription to your newsletter to be kept informed of the evolution of your coffee shop business. 

You can also, before opening your coffee shop, set up a stall at a local food market and let residents try the coffee for themselves. This will not only enable you to get your name out there and showcase your barista skills but also let you chat with visitors face-to-face to get their opinions on the coffee and if they have any suggestions as to how their experience could be improved. 

Write a business plan for your coffee shop

Has your coffee shop market research validated that there's room on the coffee shop scene for your concept? You can now get down to the next step in the development of your business: the business plan. 

A business plan is a document that describes your business, and its strategic, commercial, and financial objectives for the first three years of operation. 

It helps you verify whether your coffee shop has the potential to be profitable, at least on paper. As well as that, it will guide you through the very first steps of implementing your project, from covering what licenses you need to assessing start-up expenses. 

Your coffee shop's business plan will also be a valuable tool for presenting your project to potential commercial and financial partners, such as investors and suppliers.

As you can imagine, creating a business plan for a coffee shop is crucial. But it is also a technical and sometimes tedious job - especially if you aren’t a seasoned entrepreneur. 

To make the process easier for you, especially if it’s your first business plan, you can use online business plan software . 

There are several advantages to using software to create a business plan for your coffee shop:

• It takes care of the calculations and creates the projected financial statements for you (income statement, balance sheet, cash flow statement, break-even calculation, etc.)
• With business plan templates available and instructions for each section, you are guided through how to structure your plan
• As an end result, you receive a professional document, formatted and ready to be sent to your bank or investors

If you are interested in this type of solution, you can try The Business Plan Shop's software for free by signing up here .

You can also have a look at our coffee shop business plan template to get some inspiration! 

We hope that this article has helped you better understand how to do market research for a coffee shop.

If you’d like more advice on any of the points mentioned above or any other element related to the creation or takeover of a coffee shop, please don’t hesitate to get in touch.

Also on The Business Plan Shop

• How to improve a coffee shop's profitability
• How to write the business plan for a coffee shop
• How to take over a coffee shop

Know someone who's considering opening a coffee shop? Share this article with the click of a mouse!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Coffee shops and cafes in the U.S. - statistics & facts

What is the biggest u.s. coffee shop chain, how much do u.s. consumers spend on coffee, key insights.

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The business of coffee in 2023: a year in review

The stage is set for a year of cultural cross-pollination, digital innovation and new ways of doing business | Photo credit: via Shutterstock

Subscribe to The Weekly Coffee Dose for the latest World Coffee Portal news updates. 

Acquisitions raised the stakes for global influence 

2023 saw major acquisitions across the global coffee industry as businesses sought to catalyse opportunities across the branded coffee chain, specialty and ready-to-drink (RTD) segments.  

In February, Sucafina North America fully acquired pioneering specialty green coffee importer Sustainable Harvest in a move both companies said would ‘drive sustainability and innovation’ across the global coffee industry.   

In March, Arkansas-based Westrock Coffee acquired California’s Bixby Roasting Co. in a bid to tap into the opportune under-30s market for specialty coffee in the US. Shortly after, UK-based café, bar and dining group Grind acquired Bottleshot Coffee to make strides in the ‘underdeveloped’ UK RTD coffee market. 

June saw Neumann Kaffee Gruppe (NKG) take a majority stake in Oslo-based green coffee trader Nordic Approach , including its small batch specialty coffee sourcing division, Tropiq. In July, JAB Holding-backed JDE Peet’s announced its planned acquisition of Brazilian Coffee and Tea business Maratá to increase its scale and national coverage in Brazil. Further underlining significant opportunities in the US RTD coffee market, in July Florida-based Beliv acquired a majority stake in Texas-based High Brew .  

November saw New York-based investment firm General Atlantic agree to acquire a majority stake in Joe & The Juice in a deal that will see the exit of Valedo Partners from the Danish business.  

It was also a significant year for Philadelphia-based  La Colombe Coffee Roasters. In July, JAB Holding-backed Keurig Dr Pepper (KDP) took a minority stake in the company. However, in December 2023 US dairy and oatmilk producer Chobani acquired  the specialty coffee roaster and café chain  for $900m, including exchange of KDP’s minority stake into Chobani equity. 

The US branded coffee shop market bounced back 

In October World Coffee Portal’s Project Café USA 2024 report found the $49.5bn US branded coffee shop market reached 104% of its pre-Covid market value. The market is now around 7% above its pre-pandemic size following robust 4% annual outlet growth to surpass 40,000 stores. Sales momentum and outlet growth are both forecast to continue in 2024, with 58% of industry leaders surveyed anticipating improved trading conditions. The total market is expected to exceed 41,300 outlets in 2024, with coffee-focused operators leading growth.   

China overtook the US as the world’s largest branded coffee shop market by outlets 

2023 saw Luckin Coffee post its first ever annual profit and open its first international store in Singapore | Photo credit: Luckin Coffee

Luckin Coffee surged ahead – and saw a rival gain ground 

2023 saw China’s largest coffee chain by outlets turn a corner from its 2020 financial controversy to post its first ever annual profit , exceed 10,000 locations and open its first international store in Singapore. Sustaining record-breaking revenue and outlet growth throughout the year, perhaps the only fly in Luckin’s ointment was the rapid rise of a major rival, Cotti Coffee . Founded by ousted Luckin Coffee executives Charles Lu and Jenny Qian in August 2022, Cotti competes directly with Luckin on price and speed of service. The chain now operates more than 6,000 stores across China and has also expanded to South Korea , Indonesia , Japan, Hong Kong , Vietnam, Thailand and Malaysia.   

A new era for the JAB Holding coffee empire   

Luxembourg-based conglomerate JAB Holding Company appointed Joachim Creus as its next CEO in November 2023, succeeding Olivier Goudet who held the role for 12 years. Credited as playing a critical role in establishing the investment firm’s focus on consumer goods, Creus is now responsible for JAB’s $50bn investment portfolio, which includes $23bn of hospitality and coffee brand assets including Peet’s Coffee, Panera Bread, Caribou Coffee, Pret A Manger, Espresso House and Keurig Dr Pepper (KDP), among others.    

A key move early in his tenure will be supporting an expected Panera Brands IPO in 2024. The fast-casual group, which operates the Panera Bread, Einstein Bros. Bagels and Caribou Coffee chains, unveiled José Alberto Dueñas as its new CEO in May 2023, named IPO veteran Paul Carbone as Chief Financial Officer three months later and appointed former Krispy Kreme CEO Michael Tattersfield to its Board of Directors in September 2023.    

Most European branded coffee chains achieved strong growth   

In April, World Coffee Portal research found that 31 out of Europe’s 40 largest branded coffee shop markets added outlets over the previous 12 months. The total market grew 3.3% to exceed 42,800 outlets, led by the UK with more than 9,800 stores, while Romania was the fastest growing market by net new outlets, expanding 29% during the period.    

Blue Tokai opened more than 30 net new outlets in 2023 to reach 87 sites | Photo credit: Blue Tokai Coffee Roasters

Domestic operators gained share in India’s fast-developing coffee shop market   

Prominent Indian operators garnered new investment to fuel outlet growth and stay ahead of the competition amid a growing contingent of major international brands. In January Blue Tokai Coffee Roasters raised $30m to grow its Indian store footprint to 200 sites and further develop its B2B channel. The Gurugram-based specialty coffee roaster and café chain opened more than 30 net new outlets in 2023 to reach 87 sites. New Delhi-based Barista has similarly ambitious growth plans and is investing Rs 100 Cr ($12.1m)  grow from nearly 400 stores at the end of 2023 to 500 across India by 2025.  

Additionally, two digital-focused Indian coffee chains raised funds to facilitate rapid outlet expansion with Bengaluru-based Third Wave Coffee raising $35m in September and Mumbai-based abCoffee obtaining $2m in seed funding a month later.   

India also became a key growth market for international coffee chains, with Starbucks and Costa Coffee  reaching approximately 350 and 150 stores respectively. Meanwhile, Canada’s Tim Hortons has reached 26 sites in just over 12 months while UK-based Pret A Manger has opened nine sites since its Mumbai debut in April 2023. 

Starbucks reimagined its Reinvention Strategy   

In November Starbucks unveiled an update to its long-term growth strategy dubbed the ‘Triple Shot Reinvention’, which set out goals to generate $3bn in savings over the next three years and grow its US footprint with ‘purpose-defined’ stores. The Seattle-based coffee chain, under the leadership of CEO Laxman Narasimhan since March 2023, said approximately $2bn of the planned savings will come from the cost of goods sold with the remaining third coming from efficiencies generated through optimised store formats  

Earlier in the year Chief Financial Officer Rachel Ruggeri said Starbucks was exploring ways to meet growing consumer demand for convenience , including drive-thru, delivery-only sites and the further roll-out of pick-up locations. Starbucks, which currently operates more than 38,000 outlets across 86 markets globally, achieved full-year sales of $36bn in 2023. 

A Pret A Manger store in London, UK | Photo credit: Pret A Manger

Pret A Manger entered six markets and returned to profitability 

After being hit hard by the pandemic , 2023 saw Pret A Manger on a firm footing for growth. The UK-based coffee and food-to-go chain entered six international markets – Luxembourg , India , Italy , Spain , Greece and Qatar – in addition to signing an agreement to triple the size of its US business within five years.   

Alongside international expansion, Pret’s in-store subscription has been crucial to the chain’s post-Covid recovery. Revamped to include a food discount alongside five beverages per day, ‘Club Pret’ debuted in the UK in April 2023 and was later rolled out in the US and France , with plans for a global launch announced in August.  

2023 also saw the JAB Holding-backed chain post its first annual profit in five years, with CEO Pano Christou saying the business is ‘tracking ahead’ of its 2021 target to double in size by 2026.

McDonald’s introduced a new competitor to the US branded coffee shop market  

December saw the fast-food giant bring the competition to US branded coffee chains Starbucks, Dunkin’ and Panera Bread with the launch of indulgence-focused café concept, CosMc’s . Offering a menu of frappé coffees, blended iced smoothies and sweet treats, CosMc’s will operate separately from the chain’s McCafé range, which was added to McDonald’s US menu in 2009. While there are no standalone McCafé stores in the US, the CosMc’s launch indicates McDonald’s sees long-term growth opportunities in the $49.5bn US branded café segment. 

Saudi Arabia’s Barn’s set sights on IPO and 1,000 stores globally by 2030  

Related News & Insight

5 dynamics shaping the uk branded coffee shop market in 2024, uk independent coffee shops trading strongly on quality and authenticity, £5.3bn uk branded coffee shop market rallies to exceed 10,000 stores despite headwinds, featured analysis, “what we’re doing translates across the globe” – 7 brew marketing director, nick newbill, introduction to green coffee sourcing, hermanos and the magic of colombian coffee.

Complete Market Research Guide for Coffee Shops & Roasters

Customer feedback is important as it helps businesses understand customer needs and gain market insights. Coffee shops can meet customer expectations by taking customer feedback into account. Customers look at some essential factors when choosing a coffee shop. These can be coffee varieties, flavour, bean preferences and freshness along with pricing. They also pay attention to the excess of dessert options and good coffee. While drinking coffee, people either want to study or chat with people, so the interior design of coffee shops is among the selection criteria for customers. To establish or effectively manage a coffee shop, it is necessary to consider all these customer-related factors and analyze customer reviews.

I understand that doing market research can be very challenging. Despite the challenges, the success and growth of your business depends on understanding the customer. You can use Trustpilot for customer reviews while doing market research. On this site, you can filter the comments of a coffee shop based on star, date and language options. You can even look up the most common words. For example, let's look at the most common words in the coffee shop: "variety", "quality", "style", and "experience" . Although Trustpilot offers these filters for viewing reviews, it does not provide an overview of customer reviews. You must read all the comments, which would be a very long process.

There are many tools available from Trustpilot that receive and analyze customer reviews. Many of these tools could be more practical. Separate business processes, such as data collection and editing, even require coding knowledge for some. The solution I recommend is Kimola's free research tool. It doesn't even require a credit card and registration information, and you just need the link address of the cafe you want to analyze from Trustpilot. Kimola's research tool provides a convenient and effective solution for extracting and analyzing Trustpilot reviews.

Scraping and Examining Trustpilot Reviews

• Identify and collect the links to your competitors' Trustpilot profiles by searching for their names on Trustpilot.
• Visit the website https://kimola.com/scrape-and-analyze-trustpilot-reviews
• Paste the gathered Trustpilot profile links into the designated box provided by Kimola's tool.
• Click the "Start" button to initiate the analysis process.
• Once the analysis is completed, you can access the generated report. This report will contain valuable insights and information extracted from the Trustpilot reviews of your competitors.

Customer Feedback Analysis  from Kimola's Free Research Tool 

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• Business Ideas

Last Updated: March 27, 2024, 1:22 pm by TRUiC Team

How to Start a Coffee Shop Business

Starting a coffee shop, or any other type of coffee business is a great way to earn a living in an interesting industry while also actively participating in your surrounding community.

The three main ways most entrepreneurs start coffee shops are:

• Starting a coffee shop business from scratch
• Opening a coffee shop franchise
• Buying an existing coffee shop business

Inspired by coffee professionals, our guides will steer you through the necessary steps to make your coffee dreams real, from  picking a location  to  buying equipment , sourcing beans ,  hiring baristas , choosing a POS system ,  forming an actual company , and everything in between.

Steps to Start a Coffee Shop Business

Step one: research and make a coffee shop business plan.

A strong coffee shop business plan  is a good first step towards building a profitable company. A business plan should have enough structure to give you firm footing, but enough flexibility to allow for growth as it is an ever-changing document. You'll also want to know the type of coffee shop business to open, like a traditional coffee shop , a coffee roaster , a mobile coffee cart , or other types of businesses, as well as how much everything will cost to start .

Also important to this planning stage is how to do research and find connections in the industry. Networking will always get you further than some Google searches when it comes to valuable information that will help you succeed. The next things we discuss are the costs to start your business and what essential items go into your budget. We wrap it up with a resource for starting your business plan.

Recommended:  Learn all about Planning a Coffee Shop Business   [Part 1]  in our in-depth guide.

Step 2: Find a Target Market and Define Brand

The next step in starting your coffee business is developing your marketing and brand strategies . In this guide, we focus on who makes your business successful: your customers and yourself. Your customers should be at the heart of your marketing strategy , especially because your business will bring in different types of customers. Ask yourself what they need and desire from your establishment. 

Categorize your customers into specific target markets. Do you operate your business near a university? Expect students wanting a place to study or socialize. Do you operate in a residential area? Parents might want to stop in for a quick coffee on their morning route. 

When you think of these people as you develop a marketing strategy, think of how best to reach out to them. As helpful, successful coffee owners discuss what worked for their marketing, they highlight the importance of creating engaging social media for your business.   

Developing a brand strategy involves thinking of yourself next. How can your unique story give meaning to your brand?  

You can’t have a brand without the right equipment to make your business a success. That’s why we asked our coffee entrepreneurs about how to source products and equipment. Again, they emphasized how important it is to connect with people in this industry. 

Recommended:  Learn all about Developing a Coffee Shop Business   [Part 2]  in our in-depth guide.

Step 3: Form the Business And Launch

This is the guide that will actually put what you're doing into a business structure , with all the permissions it needs to do business. With our resources on how to start an LLC , and other topics like  you can easily move forward into the next stages of opening your business.

Learn how to pick a great location by listening to the success stories of professionals in our video. One of the most beneficial things you can do is choose a convenient spot where the surrounding tenants bring in a lot of traffic. 

Read our guide on the best Point-of-Sale (POS) systems . Cash registers are a thing of the past. Most shops have smart POS systems that make it easy for you to keep track of inventory and sales from the comfort of your home. Our guide covers various factors to consider while making a choice on POS systems. 

Just as important as picking a good location is making sure that space has everything it needs to support your business, like the right amount of electrical power, for example.

You'll learn that you need to put in a great deal of work in order to get a turnout for your opening day. Part of making that opening day a success is to hire and train the right kind of staff. 

You want your customers to feel the culture of your business right away, and the staff you hire contribute to that atmosphere. Learn what coffee entrepreneurs think are the best traits to look for in a new hire. Any skill can be learned; personalities make the culture of your business thrive. 

Recommended:  Learn all about Opening a Coffee Shop Business  [Part 3]  in our in-depth guide.

Step 4: Take Care Of Day-to-Day Operations

Ever wonder what it looks like to run a coffee business day-to-day? It includes a lot of work hours. If you want your business to be popular, you need to commit. 

All of the technology and equipment your business uses will likely need regular maintenance in order to keep your sales flowing. This means you’re going to need to be ready for problems on a daily basis. Watch our guide to listen to how coffee entrepreneurs put themselves in the right mindset for being an efficient problem-solver. 

You’ll also learn some tips for balancing work and play as they try to set a healthy example for staff. As busy as you’ll be owning a business, you (and your hardworking employees) should take the time to relax. Since you’re probably going to be on your feet a lot, it’s important to do things like stretching or yoga so you can be your best self every day.

Recommended:  Learn all about Operating a Coffee Shop Business  [Part 4]  in our in-depth guide.

Step 5: Think About How To Grow

The final part of this guide deals with what happens after you get your footing in running your business. 

You could take your business in any direction. Before you think of growing, consider how well your current business is performing. Does every little thing feel right? Do you have a high-quality team? 

After thinking it over, you could expand your product lines, get more space, or even grow into a franchise. But don’t take on too much at once. It all depends on what you want your business to be. 

Coffee experts advise entrepreneurs to stay consistent with their original purpose and brand. Other than that, you need to put thought into the future and what your cash flow will be like down the road. Financial changes are likely and you don’t want to be caught off guard. 

Watch this guide to see the importance that coffee experts place on listening to customers in order to expand their community. Even competition can be a part of that community if you have a positive attitude.

Recommended:  Learn all about Growing a Coffee Shop Business  [Part 5]  in our in-depth guide.

TRUiC presents “Starting a Coffee Shop Business”: A Documentary Series

Starting a Coffee Business is a five part video and written guide series about planning , developing , opening , operating , and growing a coffee shop or brand.

Our video guides feature advice and personal stories from these Michigan coffee companies & experts :

• John Roos, RoosRoast
• Maliesha Pullano, Mamaleelu Cold Brew
• Marcus Goller, Brighton Coffeehouse and Theater
• Lisa Bee, Sweetwaters Coffee & Tea
• Jess Harmon, Coffee Expert

See the full Starting a Coffee Shop Business Playlist to watch all of the videos.

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How Much Does it Cost to Start a Coffee Shop?

The cost of starting a coffee shop depends on a few variables like your location, size, and what type of shop you’d like to open. Generally, a coffee shop could cost anywhere from $80,000 to $250,000.

Recommended: Read our full How Much Does it Cost to Start a Coffee Shop guide.

Starting Costs

If you’re starting a business from scratch, a lot of your money will be used on a location and all the necessary equipment. Thankfully, we have a resource to help you sort through the required equipment for starting a coffee business. 

Not only do you have to pay the rent on your new location, but you also have to keep in mind any repairs that need to be made or building codes that need to be addressed.

Franchise Costs

The first thing you’ll need if you want to operate a franchise business is a franchise fee, which ranges anywhere from $10,000 - $50,000 or more depending on the franchise. 

Franchisees usually pay an ongoing franchise fee or royalty. This is usually a percentage of the gross revenue. The average royalty percentage is 5 to 6 percent, but this can vary.

The royalty could also be a fixed amount no matter the revenue.  

Marketing fees are likely to be another cost if you’re a franchise. Oftentimes there is an advertising or marketing fund that every franchise in the region or country contributes to. This fee will also be either a fixed amount or percentage, likely in the 1-4 percent range. 

Another possible cost is for products or services that the franchisor requires. 

If this sounds like a good idea for you, take a look at our Coffee Shop Franchising Guide . 

How to Hire for a Coffee Shop

You want to hire good employees for your brand-new business. We can help with that. Check out our Hiring Guide .

Coffee Shop General Manager

If you don’t want to be both the owner and the general manager, you’ll need to think carefully about who to hire for this important role. It will benefit you to look for someone who’s had a background in management and who’s had experience with keeping calm in the face of customer complaints.

Someone needs to serve the drinks. Since baristas are the face of your company, you need to hire them wisely. Look for someone who will be an engaging, friendly barista. Anyone can be trained to make coffee, but that positive attitude is hard to come by.

How to Name Your Coffee Shop

Unless you are franchising, choosing a name for your coffee shop may be the most important first step. There are many factors to consider when choosing a name. We've included some of them below:

• How do you want your coffee shop to be perceived?
• Are there specific emotions you want to elicit in your customers?
• Can you use the coffee shop location in the name?

Recommended: Use our free Coffee Shop Business Name Generator .

Different Coffee Business Ideas

Coffee roaster.

If you love high-quality roasted coffee, maybe you want to try to make it yourself. The big piece of equipment you need to make this business idea work is your coffee roaster. It’s important to research as much as possible in order to make a good choice. Getting a coffee roaster can cost as little as $400 or as much as $58,000.

Mobile Coffee Cart

A coffee cart might be a great option for you if you want a highly portable and flexible business. You need a profitable venue where there’s foot traffic in order to make this idea work, as well as a cart, which could cost up to $20,000 if it includes all of the things you would need.

Coffee Kiosk or Stand

A coffee kiosk is different than a coffee cart in that it gives you more counter and refrigeration space because it’s a more permanent structure than a cart. A kiosk would allow you to expand beyond the typical espresso bar model to include additional products. You could spend anywhere from $15,000 to $80,000 to start your kiosk.

Drive-Thru Coffee Shop

If you value a fast-paced environment and quality customer service, maybe opening a drive-thru coffee shop is the way you can show your love of coffee to the world. The price for opening a drive-thru coffee shop varies from $35,000 to $80,000.

Do you love cats too? Combine your passion for cats and coffee by starting a cat cafe, a popular concept in Asia but one that is just finding its footing here in the States. Having a cat cafe will call for additional costs than a regular cafe because of all the cat-care you’ll need to provide. You might need around $100,000 for this quirky idea.

Other Coffee Shop Business Resources

Business Insurance for Coffee Shops

Best Small Business Credit Cards for Coffee Shops

Finding the Right Equipment for Your Cafe

Coffee business skills.

• What is Third-Wave Coffee?
• Branding Your Specialty Cafe: An Introduction
• 8 Tips to Prevent a Toxic Work Environment in Your Cafe
• Tips for Managing a Coffee Shop: New Ideas for Your Cafe
• The Best Coffee Education and Certification Programs
• How to Build a Coffee Shop Employee Handbook
• Advice to Go from Barista to Coffee Shop Business Owner
• How to Introduce Third-Wave Coffee to New Customers
• How to Build Community in Your Coffee Shop
• How to Make Your Coffee Shop More Sustainable
• How to Make Your Coffee Shop More Inclusive
• How to Adjust Your Extraction to Produce the Best Espresso
• How to Cup Coffee: An Introduction
• Operating a Roastery: the Pros and Cons
• To Roast or Not To Roast: Deciding for Your Cafe
• Best Chemex Recipes for Your Coffee Shop 
• A Guide to Coffee Roast Levels
• How to Lower the Turnover Rate in Your Coffee Shop
• Best Practices for Renting an Espresso Machine
• The Best Scales, Tampers, and Kettles for Your Cafe
• Rocket Espresso Commercial Espresso Machine Review
• Best POS Systems for Coffee Shops
• The Best Commercial Coffee Grinders
• Renting vs. Buying a Commercial Espresso Machine
• Why Semi-Automatic Espresso Machines Are the Best Option
• The Best Cold Brew System for Your Cafe
• Rancilio Commercial Espresso Machine Review
• La Marzocco Commercial Espresso Machine Review
• Nuova Simonelli Commercial Espresso Machine Review
• Victoria Arduino Espresso Machine Review
• Best AeroPress Wave Recipes for Your Coffee Shop
• Best Hario V60 Coffee Dripper Recipes for Your Coffee Shop

Planning & Products

• Branded Merchandise for Your Coffee Shop
• CBD and Coffee: Combining Them at Your Cafe
• Choosing Flavors & Drink Enhancements for Your Cafe
• Choosing Manual-Brew Methods for Your Specialty Cafe
• How to Develop a Tea Menu for Your Coffee Shop
• Choosing the Right Food & Pastries for Your Specialty Cafe
• Coffee and Alcohol: Should You Serve Both at Your Cafe?
• Designing the Perfect Floor Plan for Your Cafe
• Finding the Right Location for Your Specialty Cafe
• The Importance of Coffee Shop Atmospherics
• How to Market Your Specialty Coffee Shop
• How to Start a Specialty Coffee Shop
• 7 Event Ideas for Your Coffee Shop
• Coffee Businesses You Can Start From Home
• Coffee Packaging Design Tips

Sourcing Coffee

• How to Choose a Roaster
• How to Choose a Coffee Farm/Provider
• How to Source Coffee from an Importer
• Wholesale Coffee Beans Buyers' Guide
• How to Source Coffee from Brazil
• How to Source Coffee from Colombia
• How to Source Coffee from Ethiopia
• How to Source Coffee from Indonesia
• How to Source Coffee from Kenya
• How to Source Coffee from Guatemala
• How to Source Coffee from Honduras
• How to Source Coffee from Mexico
• How to Buy Ethical Wholesale Coffee Beans

• Coffee houses

Best coffee houses in Moscow

• Current location
• Point on map

Welcome to Moscow

Home to the University of Idaho, Moscow (aka Fest City) is known for its lively celebrations and charming hometown vibe. Whether you’re exploring picturesque landscapes, rocking out at a music festival or indulging in mouthwatering local cuisine, this welcoming city offers an array of experiences for every style of adventurer. The only question is, where should you begin?

  Stay + Play

Looking for your ultimate basecamp? Take your pick of hotels in the heart of the action, cozy B&Bs and more.

Drink + Dine

Pop into one of our local eateries and sample everything from burgers to bouillabaisse. Or, sip your way through Moscow’s craft beer scene and find an ale to cure your ails.

Meet + Plan

If you’re searching for your next conference, business trip or company retreat destination, Moscow has it all. Boasting a variety of venues, tempting food and drink options and ample hotel accommodations, this town is sure to impress.

Upcoming Events

Immerse yourself in cinematic magic at a film festival or enjoy family-friendly fun at the annual Renaissance fair. Mark your calendars and stay up to date with the latest happenings in Fest City.

Hunga Dunga Brewing presents Pie Train

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Live Music at Countrymen’s Bierhall

PCEI Palouse Roots Open House

League of Women Voters Speakers Series

Colter’s Creek Barrel Tasting

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The 50 best coffee shops and best cafes in Moscow

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1 Coffeemania

2 Nude. Coffee & Wine Bar

3 One Teaspoon

4 david b. cafe, 5 starbucks.

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6 Coffee Bean

7 coffeemania, 8 cafe pushkin, 10 i love cake, 11 double-b, 12 bar bq cafe, 13 chernyy cooperative, 14 camera obscura coffee, 15 shokoladnitsa.

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17 Coffee Piu

19 bosco café, 20 restoran mandarin. lapsha i utki, 21 coffee house, 22 tehnikum, 23 conversation cafe, 24 scramble, 25 starbucks.

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26 Upside Down Cake

28 cezve coffee, 29 bosco bar, 30 double b, 31 starbucks, 32 ziferblat, 33 black milk, 34 table one cafe, 35 ladurée moscow.

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Get inspired for your trip to Moscow with our curated itineraries that are jam-packed with popular attractions everyday! Check them out here:

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Best cafes in nearby cities

• The best coffee shops and best cafes in Mytishchi
• The best coffee shops and best cafes in Khimki

Best attractions in nearby cities

• Top things to do and attractions in Khimki

Best restaurants in nearby cities

• Where to eat: the best restaurants in Mytishchi
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Money latest: The 'German classic' that's a healthier and cheaper alternative to crisps

Crisps are on the menu as we see where you can make healthier choices for the best value. Elsewhere, the boss of Sainsbury's has insisted customers like self-checkouts - do you agree? Leave your thoughts in the box below.

Friday 26 April 2024 19:45, UK

• New research reveals cost of having children
• Sainsbury's boss insists customers like self-checkouts
• FTSE 100 hits another record high
• Halifax hikes mortgage rates - as entire market moves upwards

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• Money Problem : I have a mortgage offer - will it change now rates are rising?
• Savings Guide : Why locking into fixed-rate bond could be wise move
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The family home where Captain Sir Tom Moore walked 100 laps to raise nearly £40m for the NHS during the first COVID lockdown is up for sale for £2.25m.

The Grade II-listed Old Rectory is described as a "magnificent seven-bedroom property" by estate agents Fine & Country.

In a video tour of the house, a sculpture of Captain Tom with his walking frame can be seen in the hallway, while a photo of the fundraising hero being knighted by the Queen is on a wall in the separate coach house building.

Introducing the property, an estate agent says in the tour video: "I'm sure you'll recognise this iconic and very famous driveway behind me as it was home to the late Captain Sir Tom Moore who walked 100 laps of his garden, raising over £37m for NHS charities."

It comes less than three months after the demolition of an unauthorised spa pool block in the grounds of the property in Marston Moretaine, Bedfordshire.

Speaking at an appeal hearing over that spa, Scott Stemp, representing Captain Tom's daughter Hannah Ingram-Moore and her husband, said the foundation named after the fundraising hero "is to be closed down" following a Charity Commission probe launched amid concerns about its management.

For the full story, click here ...

"Status symbol" pets are being given up by owners who get scared as they grow up, an animal charity has said, with the cost of living possibly paying a part in a rise in separations.

The Exotic Pet Refuge, which homes parrots, monkeys, snakes and alligators among others, says it receives referrals across the country, including from zoos and the RSPCA.

"They're a status symbol. People will say, 'OK, I'll have an alligator or a 10ft boa constrictor'," co-owner Pam Mansfield told the BBC.

"But when the animal gets big, they will get too frightened to handle them, and then the pet has to go."

She added people who want to get rid of the pets sometimes call zoos for help, which then call on her charity.

In some cases, owners don't have licences to own dangerous animals, she says, blaming a "lack of understanding" for what she says is a rise in the number of exotic animals needing to be rehomed.

She says people "just don't have the space" for some snakes, for example, with some growing to as much as 12ft and needing their own room.

The cost of living crisis has also forced owners to give their pets away, she says.

Her charity has also been affected by those increased costs, with the electricity bill rising to £10,000 a month at their highest, to fund things like heated pools for alligators.

Private car parks are accused of "confusing drivers" after introducing a new code of conduct - despite "doing all they can" to prevent an official government version.

The code of practice launched by two industry bodies - British Parking Association and the International Parking Community - includes a ten-minute grace period for motorists to leave a car park after the parking period they paid for ends.

It also features requirements for consistent signage, a single set of rules for operators on private land and an "appeals charter".

Private parking businesses have been accused of using misleading and confusing signs, aggressive debt collection and unreasonable fees.

That comes after a government-backed code of conduct was withdrawn in June 2022, after a legal challenges by parking companies.

RAC head of policy Simon Williams said: "We're flabbergasted that the BPA and the IPC have suddenly announced plans to introduce their own private parking code after doing all they can over the last five years to prevent the official government code created by an act of Parliament coming into force.

"While there are clearly some positive elements to what the private parking industry is proposing, it conveniently avoids some of the biggest issues around caps on penalty charges and debt recovery fees which badly need to be addressed to prevent drivers being taken advantage of."

BPA chief executive Andrew Pester said: "This is a crucial milestone as we work closely with government, consumer bodies and others to deliver fairer and more consistent parking standards for motorists."

IPC chief executive Will Hurley said: "The single code will benefit all compliant motorists and will present clear consequences for those who decide to break the rules."

Sky News has learnt the owner of Superdry's flagship store is weighing up a legal challenge to a rescue plan launched by the struggling fashion retailer.

M&G, the London-listed asset manager, has engaged lawyers from Hogan Lovells to scrutinise the restructuring plan.

The move by M&G, which owns the fashion retailer's 32,000 square foot Oxford Street store, will not necessarily result in a formal legal challenge - but sources say it's possible.

Read City editor Mark Kleinman 's story here...

NatWest says its mortgage lending nearly halved at the start of the year as it retreated from parts of the market when competition among lenders stepped up.

New mortgage lending totalled £5.2bn in the first three months of 2024, the banking group has revealed, down from £9.9bn the previous year.

The group, which includes Royal Bank of Scotland and Coutts, also reported an operating pre-tax profit of £1.3bn for the first quarter, down 27% from £1.8bn the previous year.

An unexplained flow of British luxury cars into states neighbouring Russia continued into February, new data shows.

About £26m worth of British cars were exported to Azerbaijan, making the former Soviet country the 17th biggest destination for UK cars - bigger than long-established export markets such as Ireland, Portugal and Qatar.

Azerbaijan's ascent has coincided almost to the month with the imposition of sanctions on the export of cars to Russia.

Read the rest of economics and data editor Ed Conway 's analysis here...

Rishi Sunak has hailed the arrival of pay day with a reminder his government's additional National Insurance tax cut kicks in this month for the first time.

At last month's budget, the chancellor announced NI will be cut by a further 2p - so some workers will pay 8% of their earnings instead of the 12% if was before autumn.

The prime minister has repeated his claim this will be worth £900 for someone on the average UK salary.

While this additional cut - on top of the previous 2p cut in January - does equate to £900 for those on average full-time earnings of £35,000, there are two key issues with Mr Sunak's claim:

• Once the effect of all income tax changes since 2021 are taken into account, the Institute for Fiscal Studies reports an average earner will benefit from a tax cut of £340 - far less than £900;
• Moreover, anyone earning less than £26,000 or between £55,000-£131,000 will ultimately be worse off.

In short, this is because NI cuts are more than offset by other tax rises.

We explain below how this is the case...

Tax thresholds

This is partly down to tax thresholds - the amount you are allowed to earn before you start paying tax (and national insurance) and before you start paying the higher rate of tax - will remain frozen. 

This means people end up paying more tax than they otherwise would, when their pay rises with inflation but the thresholds don't keep up. 

This phenomenon is known as "fiscal drag" and it's often called a stealth tax because it's not as noticeable immediately in your pay packet.

That low threshold of £12,570 has been in place since April 2021. 

The Office for Budget Responsibility says if it had increased with inflation it would be set at £15,220 for 2024/25.

If that were the case, workers could earn an extra £2,650 tax-free each year.

Less give, more take

Sky News analysis shows someone on £16,000 a year will pay £607 more in total - equivalent to more than three months of average household spending on food. 

Their income level means national insurance savings are limited but they are paying 20% in income tax on an additional £2,650 of earnings.

In its analysis , the IFS states: "In aggregate the NICs cuts just serve to give back a portion of the money that is being taken away through other income tax and NICs changes - in particular, multi-year freezes to tax thresholds at a time of high inflation."

Overall, according to the institute, for every £1 given back to workers by the National Insurance cuts, £1.30 will have been taken away due to threshold changes between 2021 and 2024.

This rises to £1.90 in 2027.

The UK could face a shortage of cava due to a drought in the sparkling wine's Spanish heartlands.

The Penedes area of Catalonia is dealing with its worst drought on record, with vineyards across the region so parched the roots of 30-year-old vines have died.

It's left shrivelled red and green grapes languishing under intense sun, fuelled by fossil-fuel driven climate change.

Cava is an increasingly popular drink in the UK, with 17.8 million bottles sold in 2023 - an increase of 5% from the previous year, when Britons stocked up on 16.8 million bottles, according to the Cava Regulatory Board.

That makes the UK the fourth-biggest buyer, behind only the US, Belgium and Germany.

Workforce slashed

The problems have been compounded after Catalonia-based cava producer Freixenet announced it will temporarily lay off 615 workers, almost 80% of its workforce.

Under Spanish law, companies facing exceptional circumstances can lay off staff or reduce working hours.

This measure is expected to take effect from May and it is not known how long it will last.

Price rises

One industry source told retail publication The Grocer  that cava shortages would push up prices "certainly for next year" if there isn't enough supply.

This could last for years if the drought persists, they added.

Consumer expert Helen Dewdney told MailOnline the staff cuts at Freixenet can only mean one thing - price rises.

However, she added, supermarkets say they are not experiencing any issues right now.

Parents are being hammered by rising childcare costs, according to a new study that suggests they may spend more than £160,000 raising their child to the age of 18.

Research by Hargreaves Lansdown has found that parents with children pay £6,969 a year more than couples without.

Over 18 years and assuming an annual inflation rate of 3%, that amounts to a whopping £163,175, the investment platform said.

Its study also found that parents were less likely to have money left at the end of the month.

Single parents carry the biggest burden, with the research suggesting they have just £85 left on average compared to £365 for couples with children.

Hargreaves Lansdown also found just 23% of single parents reported having enough emergency savings to cover at least three months' worth of essential expenses, compared to 63% of couples with children.

Parents are also at a slight disadvantage when it comes to pensions, the research found, with only 43% of couples with children on track for a moderate retirement income, compared to 47% without. Only 17% of single parents have a decent projected pension fund.

Sarah Coles, head of personal finance at the firm, said "having children is one of the most expensive decisions a person can make".

She adds that as a result of having a child, "financial resilience suffers across the board", and added: "For single parents, life is even tougher, and they face far lower resilience on almost every measure.

"It means we need all the help we can get."

By Daniel Binns, business reporter

One of the top stories shaking up the markets this morning is that UK-based mining company Anglo American has rejected a major $38.8bn (£31bn) takeover bid.

Details of the attempted buyout by Australian rival BHP emerged yesterday  - sending Anglo American shares soaring.

The deal would have created the world's biggest copper mining company - with the news coming as the price of the metal hit record highs this week.

However, Anglo American has now dismissed the proposal as "opportunistic" and said BHP had undervalued the company.

Anglo's shares are slightly down by 0.8% this morning - suggesting investors may not have given up hopes that a deal could eventually be agreed.

However, overall the FTSE 100 is up around 0.4% this morning, buoyed by strong reported earnings from US tech giants Microsoft and Google owner Alphabet.

It's helped the index, of the London Stock Exchange's 100 most valuable companies, hit yet another intraday (during the day) record of 8,136 points this morning.

The winning streak comes after a week of all-time highs on the index - including a record close of 8,078 points yesterday. The score is based on a calculation of the total value of the shares on the index.

Among the companies doing well this morning is NatWest - despite the bank reporting a fall in pre-tax profits of nearly 28% for the first quarter of the year.

Shares in the lender are up more than 3% after its results were better than expected by analysts.

On the currency markets, £1 buys $1.25 US or €1.16, almost on a par with yesterday.

Meanwhile, the price of a barrel of Brent crude oil has crept up slightly to $89 (£71).

Self-checkouts - they're like marmite, people seem to either love them or hate them.

But the boss of Sainsbury's has claimed that his customers do  enjoy using self-checkouts, despite criticism that that machines don't always provide the convenience promised.

Simon Roberts told The Telegraph that there are more of them in Sainsbury's stores "than a number of years ago" as shoppers like the "speedy checkout".

But despite this, he said there won't be a time when they'll replace cashiers completely.

"Over the last year, where we've put more self-checkouts in, we're always making sure that the traditional kind of belted checkout is there," he said.

His comments come after northern supermarket Booths ditched self-checkouts at all but two of its sites after customer feedback. 

Walmart and Costco in the US have also scaled back on the systems.

Let us know in the comments - do you love or hate self-checkouts?

We've all heard consumer advice that's repeated so often it almost becomes cliché. So, every Friday the Money team will get to the bottom of a different "fact" and decide whether it's a myth or must.

This week it is...

'Smart meters save you money'

For this one, we've enlisted the help of Dr Steve Buckley, also known as the Energy Doctor and head of data science at Loop...

So do smart meters help you save? 

"The short answer is both yes and no," Steve says.

"Installing a smart meter by itself won't magically reduce your energy consumption. But, by giving you easy access to your energy usage data, smart meters pave the way for savings that you couldn't achieve otherwise."

Before smart meters, most households only found out how much energy they had used when the bill arrived. 

By that stage it's too late to address wasteful usage, leading to what's known as "bill shock". 

"With a smart meter, you can see your usage and costs in real-time through an in-home display or an app provided by your supplier," Steve says. 

"This immediate feedback encourages you to use less energy. If you measure it, you can control it."

In 2022, the Department for Energy Security and Net Zero found that homes with smart meters used about 3.4% less electricity and 3% less gas. 

"This might not seem like a lot, but it adds up to a saving of over £50 per household annually," Steve says.  

If all homes in the UK made similar cuts, that would amount to savings of around £1.5bn and a potential reduction in CO2 emissions by about 2.7m tonnes each year. 

"Good for individual households but also great for the planet," Steve says. 

Smart meters are often installed at no extra cost to the consumer - it's effectively free data for households. 

Limitations

Smart meters are more or less what you make of them - a simple, free tool that allows you to see headline figures. 

However, "without detailed analysis, it's tough to identify and eliminate" where you could be wasting money, Steve says. 

Apps like Utrack, Loop and Hugo Energy can help you work out where you might be losing money by offering a more detailed breakdown if connected to your smart meter. 

Those tools are often free, but you may need to register your card details as proof of address. 

The tools give a number of useful insights, including looking at consumption in other households of similar size or monitoring where chunks of your money are going, such as to a faulty boiler or the "phantom load" (energy wasted by devices left on unnecessarily).

Myth or must?

Although smart meters alone don't reduce energy bills, they are a vital tool to help energy efficiency and cost savings. 

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