Cost to open a café
Jan 29, 2023
Opening a café is a dream for many people, but it is also a significant investment. It is important to understand all the costs before taking the step to open a café to ensure that you can afford the long-term investment. Here is a list of the most common costs you will encounter when opening a café.
It costs between 250,000 to 3 million kronor to start a café, depending on the type of café you want to open. Food trucks, kiosks, and coffee stands can cost between 250,000 to 750,000 kronor, but some smaller coffee stands have started with as little as 50,000 kronor. Traditional cafés with seating areas, however, require closer to 800,000 kronor. The size of the premises is a crucial factor, as higher rental contracts are required for larger spaces, as well as more for the interior and staff.
Rental Costs
The main costs associated with opening a café are the rental costs. These include the rent for the premises, any alterations that need to be made to the premises, and consulting About the premises. These costs vary depending on the size of the premises, location, and accessibility to public transport.
Furniture and Equipment
The next significant cost is furniture and equipment. This includes tables, chairs, coffee machines, dishwashers, refrigerators, freezers, heaters, lighting, and much more. It is important to invest in high-quality equipment to ensure that your café has a professional look and feel.
Inventory
Inventory is a must when you open a café. This includes coffee, tea, sugar, milk, cups, plates, cutlery, and much more. You must also account for the fact that you will need to replenish your inventory regularly to keep your café running.
Staff
Staff is another major cost when you open a café. You will need to hire chefs, waiters, and bartenders. You must also account for the fact that you will need to pay salaries, insurance, and other costs for your employees.
Marketing
Marketing is an essential part of opening a café. You will need to advertise your new business to attract customers. This includes advertising in local newspapers, on social media, and on other websites.
Start by Setting Up a Plan
Before taking the step to open a café, it is important to set up a plan. This plan should include a detailed budget, a marketing strategy, a description of your target audience, and a description of your products and services. By setting up a plan, you have a clear picture of what you want to achieve and what steps you need to take to accomplish it.
It is important to have a detailed budget when opening a café, so you have a clear picture of all costs and can prepare adequately. Here is an overview of some of the main costs to consider:
Location/Rental Costs
The rental cost is an important factor to consider when opening a café. You want to ensure that you do not exceed 15% of your sales forecasts. It is important to find a suitable location that fits your target audience and is not too expensive.
Equipment to Run the Café
Equipment is another important cost to consider. You need to invest in everything from coffee equipment to furniture and supplies to run the café. The cost of this equipment can exceed 50% of the total budget. It is important to be careful to choose quality over quantity, so you don't have to replace everything too soon. Items such as coffee, beverages, and milk should not exceed 40% of sales forecasts.
Staff Costs and Professional Services
Staff costs and professional services are another important expense to consider when opening a café. These include your employees and contractors. You want to ensure that you hire the most competent people to ensure that your café operates as efficiently as possible.
Taxes
Taxes are another important factor to consider when opening a café. Generally, they are about 35% of the operating profit. You want to make sure you understand all tax rules and regulations to avoid surprises down the line.
Other Overheads
Other overheads include permits and licenses, insurance, maintenance, supplies such as cups, sticks, glasses, and more. You want to make sure to include all these costs in your budget so you have a full
Summary
Opening a café is a significant investment, and it is important to understand all costs before taking the plunge. The main costs are rent, furniture and equipment, inventory, staff, and marketing. Before you start with the opening of your café, it is important to set up a plan that includes a detailed budget, a marketing strategy, a description of your target audience, and a description of your products and services.
