Opening a café is a big undertaking. But provided it is broken down into simple steps it is a business that virtually anyone can set up. Many of the world´s most successful food entrepreneurs started small by owning a café, food truck, or working in someone else´s restaurant.
A café is a perfect way to showcase your culinary skills and start to build a following from within your community. This article is not a step-by-step guide to opening your first café. It is designed to be an overview guide that touches on those important things that a lot of other articles on the subject do not speak about. The things that will make the difference between your being profitable and staying open and failing.
Make sure there is enough demand
It is particularly important to understand whether there is enough demand. Do a little market research before plunging thousands into leasing a unit, decorating it, and launching a café. Go to the area you are thinking of opening in and eat in other cafes and restaurants in the area. Do so at different times of the day and week. Sit in the window so you can record the footfall, using this method.
Test the market
Once you are sure there is enough demand try to test the waters a bit. For example, set up a food truck, market stall, or some sort of home food business (there are 84 suggestions here). This gives you a chance to get used to the ins and outs of running this kind of business.
It is also a really good way to find out what people like, get marketing ideas and start to build up a following. If you get into selling some of your products online, it can also provide you with an additional income stream. That will help you to carry through the first few months of running your café.
The other advantage of testing the market is that it will be far easier for you to raise money for your café, should you need to do so. Many financial institutions are happier lending to someone who has some experience of running a business rather than someone who hasn´t.
Sort out the legal stuff
It is essential that you set up your café legally. If you do not do so, in most places, within weeks you are highly likely to be shut down or heavily fined by the authorities. You can usually find out what you need to know from government pages like this one. Failing that, usually, your local Chamber of Commerce will be able to tell you where you can get the information you need.
Keep things simple
If at all possible, start with a simple approach. You can always improve the décor and invest in more expensive tables and chairs once you are sure your business is viable.
That does not mean that you have to sacrifice your vision. From the start, you want the ambiance of your café to be right. It is after all a reflection of your brand. But it is wise to be cautious, initially. For example, if you want to offer clients big soft sofas, lease them for a few months rather than buy them outright.
Invest in professional equipment
It is also important not to skimp on things that help you to provide customers with a pleasant experience and sell more to them. For example, a good quality industrial coffee machine, refrigeration to keep food fresh, proper cooking equipment, and digital signage.
You may be surprised to see digital screens on the list. But they are an invaluable tool. In most places, they can be set up outside on a sandwich board and used to attract passing foot traffic in for a drink and a treat. You can create and display your own promotions enabling you to tailor them to tempt people in the most effective way. They also provide you with the chance to use digital rather than static paper menus. Something that brings a long list of benefits. This ultimate guide for opening a cafe and using digital signs shows you how to use them to serve your customers better and grow your business fast.
Analyze your sales
From day one, analyze your sales. This article explains how to do it. Equipped with that information you will be able to target your efforts effectively. As well as better understand what your customers want, which is key to making your café a success.
For more information on the importance of tracking analytics and how it can help you and your restaurant, please see the information below.
Provided by Chowly – restaurant digital ordering system
