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 is important to understand all the costs before taking the plunge to open a cafe to ensure you can afford the long-term investment. Here is a list of the most common costs you will encounter when opening a cafe.
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 SEK 250,000 and SEK 750,000, but some smaller coffee stands have started with as little as SEK 50,000. However, traditional cafés with seating areas require closer to SEK 800,000. The size of the premises is a decisive factor, as higher leases are required for larger spaces, as well as more for the interior and staff.
Premises costs
The main costs of opening a café are the premises costs. These include the rent for the premises, any changes that need to be made to the premises and consultancy. About The venue. 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, heaters, lights and much more. It is important to invest in high-quality equipment to ensure that your coffee shop has a professional look and feel.
Equipment
Inventory is a must when opening a coffee shop. These include coffee, tea, sugar, milk, cups, plates, cutlery and much more. You also need to consider that you will need to renew your inventory regularly to keep your coffee shop running.
Staff
Staffing is another big expense when opening a coffee shop. You will need to hire cooks, waiters, and bartenders. You will also need to consider the fact that you will need to pay salaries, insurance, and other expenses 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 making a plan
Before you take the step of opening a coffee shop, it is important to have 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 having a plan, you will have a clear picture of what you want to achieve and the 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 the costs and can prepare adequately. Here is an overview of some of the main costs to consider:
Location/premises cost
The cost of the premises is an important factor to consider when opening a café. You want to make sure that you don't exceed 15% of your sales projections. It's important to find a suitable location that suits your target audience and isn't too expensive.
Equipment for running the café
Equipment is another important cost to consider. You will need to invest in everything from coffee equipment to furniture and equipment to run your café. The cost of this equipment can exceed 50% of your total budget. It is important to be careful to choose quality over quantity so that you do not have to replace everything too soon. Items such as coffee, beverages and milk should not exceed 40% of your sales projections.
Personnel 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 to 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 operating income. You want to make sure you understand all the tax rules and regulations to avoid any surprises down the road.
Other expenses
Other overhead costs include permits and licenses, insurance, maintenance, supplies like mugs, chopsticks, glasses, and more. You want to make sure to include all of these costs in your budget so you have a full
Summary
Opening a coffee shop is a big investment and it is important to understand all the costs before you take the plunge. The main costs are the premises, furniture and equipment, inventory, staff and marketing. Before you start opening your coffee shop, 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.
