People often ask me how to set up a coffee shop in their church or next door to their church. Seems like a great idea and great concept. But here are the mistakes one can make in setting up a church coffee shop or any coffee shop. And since you may be making a huge investment - some study and time should be spent.
Your Coffee shop investment will vary greatly depending on your chosen location. The coffee shop equipment that you will need will be approximately $12,000 to $15,000, or $150 for a simple top of the line coffee maker. PLus then the remodeling cost, decor, signs, furniture, fixtures etc. may range from $40,000-$400,000. Some churches have invested from a low of $3,000 to $220,000 to set up their church coffee shop. As an comparison, Starbucks invests on the average of upwards of $300,000 plus to open one of their shops. And hopefully your church is getting volunteers to help.
Here are the most common mistakes I see in setting up a church coffee shop.
1. Starting to spend your money and your time without first determining if your project makes any business sense in the first place. You won't learn that from your friends, relatives or your coffee/equipment dealer!
2. Choosing the wrong location - if you are not visible, hard to get to, or in the wrong demographic area, you do not exist and probably will have very little business! The main reason for Starbucks success is the locations!
3. Naming your shop with a name unrelated to your business - you are driving along and notice a shop called Dottie's. Would you stop there for a cup of coffee if you did not know what it was?
4. Not knowing how to design your work environment for speed and efficiency of operation - unless you design the shop properly, employees will be running around like a chicken without a head, slowing down the service time and your customers patience!
5. Having a menu that is too long and confusing, not focusing on items that matter the most. While the average independent coffee shop manages to serve only 31% of espresso based drinks, our clients average is over 80%! Just think how much more money you will make if instead of selling 200 cups of brewed coffee at $1.25, you sell 200 espresso based drinks at an average price of $2.97! That is a difference of $244! Over $80,000 a year!
5. Mixing coffee with food items (soups, sandwiches and salads) - people don't go to Starbucks to eat, and they don't go to Subway to drink espresso based drinks!
6. Poorly trained employees with no clue on how to MARKET and prepare espresso based drinks properly and promptly.
7. Having your espresso machine operated by people that do not drink espresso based drinks themselves.
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