Things you must think about before opening a café

Opening up a café of your own is a dream and you want to get started on that entrepreneurial journey. You have likely been told my family and friends that it is not an easy task, and the risks are high – but then, so are the rewards!

If you are one of those people who looked around a café and thought ‘I could do this’, there is so much to think about before you embark down that road. Opening a café requires not just a love of cooking and food or good barista skills, but so much more, including funding, planning (so much planning!), competition analysis and good organisational skills. Here are the things you should actively and seriously take into consideration before you make the decision of whether to open a café. Long before the financials, business insurance and business plan , you have to have a foundation of the why, where and how.

Understanding the industry

As with any business or job, the first thing you should know is the market. It is essential that you get some information and have a decent understanding of the industry and how it works. In the case of a café, this is important at a local level too. As well as knowing what makes or breaks a café (unfortunately there is no quick route to success) you must analyse and learn about your neighbourhood competition and customers too.

When you’re opening an independent café, not only do you have fellow entrepreneurs to compete against, but also the big-name chains like your Starbucks and Costa Coffee. The good news is that there is a burgeoning café culture around the world, with patrons increasingly interested in small, niche concepts and spaces. And the figures show that independent cafes have risen dramatically in the last few years – good news for a budding café owner!

Find your hook

One of the most important precursors to opening your café is finding that concept or niche that will make your place stand out and not get lost in the crowd. Ask yourself questions like what your focus will be (a specific cuisine, fancy coffees/teas/other beverages), what products you will serve and sell (espresso products at a café specializing in espresso drinks and desserts, for example), and finally, what your theme and concept are around. Will you be a Harry Potter themed café serving up Hogsmeade fare or a LOTR café with treats from Middle Earth? Are you going to be an all-vegetarian or vegan place? Do you have a passion for baking and want to make your baked goods the focus? Or will you be focused on beverages and keep eats to the minimum? Other important questions to ask are whether you will be purely dine-in with table service, or a kiosk style establishment where takeaway is preferred, or will you have tables and self-service?

Know your audience

Cafes usually welcome a wide range of customers across demographics. From university and high school kids to elderly visitors and everyone in between, there is a lot to cater to. Of course your theme and concept, as well as the kind of fare you serve will go a long way towards determining your target audience.

You should think about whether you want to be the kind of place that welcomes all-day diners who sit in a corner and work, or you’re looking for a more buzzing lively crowd. What is the intent of the visit/visitor (a quick stop on the way to work, an office worker grabbing a sandwich, someone who plans to relax and unwind over multiple cups of coffee, someone looking to hang out with their fellow moms after the kids play in the park, etc.). Consider these factors, then, your core audience.

Know your location

Location is pretty much everything in this scenario – where you open your café will have a part to play in every single aspect of its existence, from the size of the space and the covers you can have, what you serve, who visits, how much you can/should charge, even your hook. After all, a beachside establishment will be different than one in the CBD. If you are setting up in a neighbourhood where there are primarily families, then being family friendly is important which rules out any risqué themes, for example. If you’re near a community centre or a senior living community, then you should take that into consideration.

Aside from the actual building and prospective audience, the essential, imperative is the competition. No point in setting up in a neighbourhood that already has a well-established espresso bar or café with a reputation for the best cupcakes in town if that is what your own proposed niche is!

So do your research before setting out on this journey. Find your market and your hook, and make sure you have a market to sell too. This can be the difference between success and failure.