Cost of opening a cafe
Jan 29, 2023
Opening a cafe is a dream for many people, but it is also a big investment. It's important to understand all the costs before taking the plunge to open a coffee shop to ensure you can afford the long-term investment. Here is a list of the most common costs you will encounter when opening a coffee shop.
It costs between SEK 250,000 and SEK 3 million 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 and 750,000 kroner, but some smaller coffee stands have started with as little as 50,000 kroner. Traditional cafes with seating, however, require close to SEK 800,000. The size of the premises is a decisive factor, as higher leases are required for larger places and more for the interior and staff.
Local costs
The main costs of opening a coffee shop are the premises costs. These include the rent for the premises, any changes that need to be made to the premises and advice on the premises. These costs vary depending on the size of the venue, location and accessibility to public transport.
Furniture and equipment
The next big expense is furniture and equipment. These include tables, chairs, coffee machines, dishwashers, refrigerators, freezers, heating elements, candles and much more. It's important to invest in high-quality equipment to ensure your cafe has a professional look and feel.
Inventory
Equipment is a must when opening a coffee shop. These include coffee, tea, sugar, milk, cups, plates, cutlery and much more. You must also expect that you will need to renew your inventory regularly to keep your cafe running.
Staff
Staff is another big cost when opening a cafe. You will need to hire cooks, waiters and bartenders. You must also expect that you will have to pay wages, insurance and other costs for your employees.
Marketing
Marketing is an important part of opening a coffee shop. 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 you take the step to open a cafe, 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 achieve it.
It is important to have a detailed budget when opening a coffee shop, so you have a clear picture of all costs and can prepare adequately. Here's an overview of some of the top costs to consider:
The location/location cost
The cost of premises is an important factor to consider when opening a cafe. You want to make sure not to exceed 15% of your sales projections. It is important to find a suitable location that suits your target audience and is not too expensive.
Equipment to run the cafe
Equipment is another important cost to consider. You need to invest in everything from coffee equipment to furniture and equipment to run the cafe. The cost of this equipment can exceed 50% of the total budget. It's 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
Personnel costs and professional services are another important cost to consider when opening a coffee shop. These include your employees and contractors. You want to make sure you hire the most competent people to ensure your coffee shop runs as efficiently as possible.
Taxes
Taxes are another important factor to consider when opening a coffee shop. Generally speaking, they are around 35% of the operating profit. You want to make sure you understand all tax rules and regulations to avoid surprises down the road.
Other overhead costs
Other overheads include permits and licenses, insurance, maintenance, supplies such as mugs, sticks, glasses, and more. You want to make sure to include all of these costs in your budget so you have a full one
Summary
Opening a coffee shop is a big investment and it is important to understand all the costs before taking the plunge. The main costs are premises costs, furniture and equipment, fixtures, staff and marketing. Before starting the opening of your cafe, it is important to draw 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.
