WHAT TO LOOK
FOR WHEN BUYING
YOUR FIRST
COFFEEHOUSE
SHOULD I BUY A NEW
OR EXISTING CAFÉ?
DRIVE UP WINDOW, OR
WALK IN ONLY?
HOW DO I NEGOTIATE
WITH THE LANDLORD?
DO I HAVE TO WORK IT?
Presentation stored at:
Boyrista.com/First-Cafe
LEVI ANDERSEN
1. COFFEE
•
BARISTA SINCE CAREER DAY (AGE 6)
•
10-YEARS BARISTA IN WASHINGTON
•
DRIVE-THRU OWNER, MAPLE VALLEY, WA
•
COFFEE FEST – EDUCATIONAL PROGRAMMING MANAGER
•
ONGOING TRAINING
2. AUDIO CAFÉ PODCAST.COM
•
FREE WEEKLY PODAST
3. BOYRISTA.COM
•
OBSERVATIONS
•
ARTICLES
4. KERRY GLOBAL INNOVATION
•
BEVERAGE PRODUCT SPECIALIST
•
DAVINCI GOURMET, BIG TRAIN, OREGON CHAI
•
COAST TO COAST TRAININGS AND TRENDS
•
CUSTOM RECIPES FOR BRANDS
OVERVIEW
• CURRENT SITUATION
• PLANNING PHASE
• LOCATION
• ALREADY RUNNING VS BRAND
NEW LOCATION
• HOW TO SPOT THE IDEAL
EXISTING CAFÉ
• PLANNING YOUR EXIT
STRATEGY
CURRENT SITUATION
• ARE YOU HERE TO DISCOVER
REASONS TO OR NOT TO START
YOUR CAFÉ?
• IS THIS GOOD NEWS OR BAD NEWS?
• DOES THIS MEAN PEOPLE ARE LEAVING
ATLANTA?
• WILL PEOPLE BE SPENDING LESS?
• WHAT DO YOU THINK LAND LORDS
ARE WORRIED ABOUT?
• IS THIS GOOD NEWS FOR SIGNING A
CHEAPER LONG TERM LEASE?
• TOO EARLY OR TOO LATE?
• HAS THIS SPECIALTY COFFEE THING RAN
ITS COURSE?
• WILL COFFEEHOUSES BECOME THE NEW
VIDEO RENTAL STORES?
OVERVIEW
• CURRENT SITUATION
• PLANNING PHASE
• LOCATION
• ALREADY RUNNING VS BRAND
NEW LOCATION
• HOW TO SPOT THE IDEAL
EXISTING CAFÉ
• PLANNING YOUR EXIT
STRATEGY
PLANNING PHASE
“An ounce of prevention is worth a pound of cure”
“By failing to prepare, you are preparing to fail”
“Measure twice cut once”
“The best preparation for tomorrow is
doing your best today”
“He who is best prepared can best serve his
moment of inspiration”
“I will prepare & some day my
chance will come”
“Give me six hours to chop down a tree & I will spend the first
four sharpening the axe”
STARTING A CAFÉ
Questions to ask yourself…
Re-visit this list & evaluate your options
• Why am I starting a coffee shop? Would it be easier
to just hang out at cafes on the weekend and not
overcomplicate things?
• What kind of ambiance do I want? What can I afford?
What fits the locale?
• Who is my ideal customer? How will they resonate
with my café?
• What menu items will I have? Just coffee, or beer &
cocktails, fresh paninis & salads?
• Am I prepared to spend the time and money needed
to get my business started? Is my partner on board to
support as well?
• Is there a reason why no one has tried my specific
idea before?
• How many employees will I need?
• How will I get all of my supplies?
• How much hiring and training will I need before I can
sell a latte?
• How long do I have until I start making a profit?
• How much money do I need to get started and pass
the 2 year mark?
• Who is my competition? How will I be different? Do I
need to compete on price?
• What taxes do I need to set aside & pay?
• What kind of insurance do I need?
• How will I advertise my business?
WHAT DO YOU WANT,
WHAT CAN YOU AFFORD?
WALK IN CAFÉ
$150 - $300K
DRIVE-THRU
$75 - 250K
KIOSK OR MOBILE
$20 - $75K
TYPICAL STARTUP COSTS
WALK IN CAFÉ
General contractor fee $30K
Cabinets $25 - $40K
Plumbing & electrical $15 - $20K each
Flooring $6K
Paint $5K
Equipment $30 - $50K
Furnishings $15 - $20k
Signage $10 - $15k
BUSINESS PROPOSALS
BUSINESS PLAN
FUND RAISING
For property managers, investors,
lenders
Bank loan
Describe what you intend to create
Describe your profit centers and
menu
Identify your ideal customer
Unique benefits of your café over
the local competition
State of the industry and current
trends
How you will market your business
Staffing plan
Landlord needing renter
Motivated seller
Angel investor
KickStarter.com
INDIEGOGO.com
[Clearly identify investor
roles, interest rates &
expectations in writing]
CONSTRUCTION
CONSIDERATIONS
• DESIGNATED AREAS
• ESPRESSO MACHINE & GRINDERS
• PASTRY CASE
• BLENDERS
• ICE
• GENERIC AREAS
• MULTI-USE AREAS
• PASTRIES, PROMOTIONS &
DECORATIONS
• DESIGNLAYOUT.COM
• PROFESSIONAL HELP
ASSESSMENT CHECK LIST
TEST EACH ITEM AND RATE EACH PIECE OF EQUIPMENT WITH A 1 (HIGH) TO
5 (LOW) RATING OF PRIORITY FOR ADDRESSING. THEN CREATE A PLAN ON
HOW TO ADDRESS EACH PIECE.
 EQUIPMENT:
 DRIP BREWER
 COOKING EQUIPMENT
 ESPRESSO MACHINE
 ICE MACHINE
 WATER HEATER
 GRINDERS
 REFRIGERATION
 HVAC SYSTEM
 WATER FILTRATION
 BLENDER
PHYSICALLY LOOK AT EACH PIECE OF YOUR BUSINESS AND RATE IT HOW
HIGH OF A PRIORITY (AGAIN 1-5) IT IS TO GET YOUR ATTENTION.
BE SURE TO DO THIS WHILE THE BUSINESS IS FRESH TO YOU AND YOU HAVE A EASIER TIME RECOGNIZING WHERE ATTENTION IS NEEDED.
 CAFÉ:
 LANDSCAPING
 RESTROOMS
 WALLS INSIDE/OUTSIDE
 SIDEWALKS/PATIOS
 FURNITURE
 LIGHTING FIXTURES
 CEILINGS
 ART PIECES
 BASEBOARDS/DOORS/WINDOW  FLOORS/CARPETS
S/FRAMES
 HVAC VENTS
 AWNING/BLINDS
 CABINETS
 CONDIMENT BAR
OVERVIEW
• CURRENT SITUATION
• PLANNING PHASE
• LOCATION
• ALREADY RUNNING VS BRAND
NEW LOCATION
• HOW TO SPOT THE IDEAL
EXISTING CAFÉ
• PLANNING YOUR EXIT
STRATEGY
LOCATION LOCATION LOCATION
CLIMATE
• YEAR ROUND TRAFFIC OR TOURIST TOWN?
• HOW MANY MONTHS PER YEAR CAN YOU SELL
THAT HUCKLEBERRY SMOOTHIE (YELLOW SIGN
IN CORNER)?
• HOW DOES CLIMATE EFFECT WHAT YOU CAN
SELL OR IF YOU’LL BE SUCCESSFUL?
• CAN YOU LEVERAGE YOUR RENT
ACCORDINGLY?
COMPETITION
• IS IT GOOD TO BE THE FIRST
TO TOWN?
• WHAT IF THERE IS ALREADY
A STARBUCKS THERE?
• HOW MANY CAFÉ CONCEPTS
CAN ONE AREA SUPPORT?
LOCATION LOCATION LOCATION
DEMOGRAPHICS
• CITIZENS
INCOME
(AFFLUENT VS
POVERTY)
• AGE (COLLEGE
TOWN VS SMALL
TOWN USA)
• TRAFFIC
(HANGOUT VS
GHOST TOWN)
• PERSONAL
TASTES
OVERVIEW
• CURRENT SITUATION
• PLANNING PHASE
• LOCATION
• ALREADY RUNNING VS BRAND
NEW LOCATION
• HOW TO SPOT THE IDEAL
EXISTING CAFÉ
• PLANNING YOUR EXIT
STRATEGY
NEW CAFÉ
• PROS
• Blank canvas
• Negotiate tenet improvements with landlord
• Negotiate you’ll anchor more daily business to the
area
• Negotiate you need ramp-up time & reduced rent
• Good press or buzz when opening
• CONS
•
•
•
•
•
•
Setting up permits, licenses & insurance
Build-out costs & time (Taproom Coffeehouse, GA)
Could be new area with minimal traffic
Customers base can take years to build
Full staff & customer training needed
Need to create every system in the cafe
EXISTING CAFÉ
• PROS
•
•
•
•
•
Built in customer-base
All equipment set up
All systems in place
Great starting place to enhance
Possibly negotiate great deal
• CONS
•
•
•
•
•
•
Customers may not like any change
Branding barriers
Re-training staff
Purchasing outdated equipment
Hidden contracts with vendors
Abused space
SPECIFIC BUILDING SELECTION
• WHAT DO YOU THINK ABOUT THE
LANDLORD & SURROUNDING
BUSINESSES?
• ARE YOU THE FIRST OR LAST
TENET IN THE BUILDING?
• First – you can negotiate a lowered rate, say
25% off, till the building is 75% occupied
• Last – you can convince the landlord that
your coffee business will bring new shoppers
to the area on a daily basis and help all the
businesses in your area.
• If you’re leasing inside a business space or
residence you can show how your café will
improve occupancy happiness
• EMBRACE THE BUILDING TO ITS
FULL POTENTIAL
• You may need to pivot your plan, always tailor
to the space
SPECIFIC BUILDING SELECTION
• MALL, MOVIE THEATER, BALLET
CLUB, DANCE CLUB, ETC.
• Do people come here to get coffee?
• HOSPITAL, PARK, LIBRARY,
CORPORATE OFFICES, ETC.
• Do people near here want coffee?
• TALK TO YOUR NEIGHBORING
BUSINESSES
• Ask lots of questions
• Ask what little surprises you will “Just need
to get used to” to really get to the heart of
renting woes
• Are all the surrounding businesses pet
shops and pet parks but you’re allergic?
• Do things look good on paper but your gut
says no?
OVERVIEW
• CURRENT SITUATION
• PLANNING PHASE
• LOCATION
• ALREADY RUNNING VS BRAND
NEW LOCATION
• HOW TO SPOT THE IDEAL
EXISTING CAFÉ
• PLANNING YOUR EXIT
STRATEGY
SPOTTING THE IDEAL
EXISTING CAFÉ
• IT IS MISSING A KEY COMPONENT
THAT YOU CAN BRING
• Energy, creativity, better products, vision, leadership,
customer service, new décor or ambiance, more food
options, artistic flair, marketing
• IS A PLACE YOU COULD HANG OUT IN
ALL DAY EVERYDAY
• This will be your second home for a few years
• FOOT TRAFFIC VS TRAFFIC
• Nearby anchoring business or traffic obstacle
• Place that stops cars
• Place that gets people out of their car, ect
• 500 cars vs 50 people on foot per hour passing by
TALKING TO THE
SELLER
• DO THE NUMBERS ADD UP (RED FLAG:
KEEPING TWO SETS OF BOOKS)?
• WHAT DO THEY REALLY WANT? LEGACY VS
CURRENCY?
• WHY IS SOMEONE SELLING, OR WHY HAS A
LOCATION OPENED UP?
• WILL THEY KEEP SOME SKIN IN THE GAME
TILL THINGS ARE STABLE?
• WHAT OTHER BUSINESSES ARE FOR SALE
IN THE AREA?
• BE PROACTIVE, CONTACT PEOPLE WHO
HAVEN’T PUT THEIR BUSINESS ON THE
MARKET
OVERVIEW
• CURRENT SITUATION
• PLANNING PHASE
• LOCATION
• ALREADY RUNNING VS BRAND
NEW LOCATION
• HOW TO SPOT THE IDEAL
EXISTING CAFÉ
• PLANNING YOUR EXIT
STRATEGY
Here Today
Gone Tomorrow
EXIST STRATEGY RECOGNIZE THE TIME TO SELL
• IDENTIFY THE PERFECT BUYER
• Current staff member?
• Who is your biggest fan?
• KEEP HONEST BOOKS; TELL THE HONEST BUSINESS
STORY
• The truth always comes to light
• Tell the honest answers to why you’re selling, or why business is slower
• PAY YOURSELF A CHECK, EVEN IF YOU JUST RE-INVEST
INTO THE BUSINESS
• Investing everything into the business is fine, but cut yourself the check first, then pay to
support the business. This will be far better when it comes time to sell
• DON’T HOLD ON TOO LONG
• Selling doesn’t mean failing
SELLING PLAN
• START WITH THE END IN MIND
• WHO RUNS THE BUSINESS WHEN YOU’RE
ON VACATION/GET SICK/ECT?
• MAKE ONE MASTER EMAIL ADDRESS FOR
THE BUSINESS
• WRITE DOWN ALL PASSWORDS
• WHO IS YOUR IDEAL CUSTOMER, AND
WHAT DO THEY REALLY WANT?
• LAY OUT YOUR 1, 2 & 5 YEAR PLAN
• LET YOUR STAFF KNOW AHEAD OF TIME
• PREPARE FOR A LOT OF CALLS OR EMAILS
THE BIGGEST PIECE IS YOU
• WHAT ARE YOUR INHERENT
SKILLS?
• Are you a Customer-Service-Savant or BaristaExtraordinaire?
• PERFORM A PERSONAL &
BUSINESS SWOT ANALYSIS
• Look at each café option and see where YOU fit
into it
• TRUST YOUR GUT
• Identify why good/bad vibrations
• Is this a good idea for you right now?
• Will your spouse support the business, or all the
extras that come up along the way? How
committed are they?
• ASK OTHER PEOPLE TO VISIT
THE LOCATION
• Easier for them to tell you it’s a terrible idea
before the fact rather than helping after the
doors have opened
THANK YOU!
WISHING YOU ALL THE LUCK IN
THE WORLD
• THIS PRESENTATION IS STORED
AT
• BOYRISTA.COM/FIRST-CAFÉ
• ADDITIONAL NOTES & LINKS
• SUGGESTED LINKS:
• BOYRISTA.COM/ABOUT
• CONTACT LEVI:
• LEVI@BOYRISTA.COM
• @BOYRISTA (TWITTER)
• @AUDIO_CAFE (INSTAGRAM)
PARTNERS I TRUST
• COFFEEBUSINESS.COM
• Full one week business training in Portland or New York
• They have done it all
• BREWEDBEHAVIOR.COM
• Tracy Allen: Q Coffee Grader
• Vice President of SCAA
• Zoka Coffee Roaster & Tea Co
• COFFEEGROOT.COM
• Midwest Barista School
• Jp’s Coffee & Espresso Bar
• TRADE MAGAZINES
• Barista, Roast, Fresh Cup, Specialty Coffee Retailer,
Sprudge.com
SOAPBOX, PLEASE!
THIS MAY STING, BUT LET’S BE HONEST…
KEEP IT CLEAN
•
Have you ever been in a beautiful building that is filthy? Have you ever gotten into a really cool car and were surprised by the stench inside? Its an awful experience. Don’t let
your café get dirty! You may not be able to have an amazing barista who is also great at leaning carpets or random corners – but fear not! There may be a great solution to this
problem. Look in the community for a cleaner who wants to trade* gift cards for cleaning. Why not let a pro handle this for you? Just know that each quarter of the year you
should deep clean your cafe and perform the machine maintenance you know you need to do.
SECRET SHOPPERS
•
Use Secret Shoppers to give you honest feedback on your business. You know that your baristas are on their best behavior when you’re there, but how do they really act when
you’re away? In the same way you need Secret Shoppers to evaluate your business. You become blind to those little things like cracks in the paint or stains. If possible find
someone who has never been to your business so you can use their first impressions. Seek outside help, then thank them with a nice gift.
SENSE OF URGENCY
•
Never lose your sense of urgency and action. If you don’t do it now you never will. If you need to close your doors then pick a slow day and time and do it! I’ve worked at a café
where slowly pieces of our espresso machine died, till one morning all we had was one steam wand and one group head functioning. I can tell you that the owner didn’t make
very much money that day (and I didn’t make the same tips either!).
ASK YOUR STAFF
•
Empower your staff to have ownership and have a voice in the business. Have regular meetings where people feel safe to share thoughts. You’ll be blown away by their ideas.
You can also have them take care of the idea and implement it (this will cut down on complaints!) at the shop. Your staff will start to look at their job like an owner does and will
become more in tune with how to take care of customers and equipment.
RAISING YOUR PRICES
•
People don’t buy on price anymore… Well, most people don’t. Don’t shy away from making a living, don’t delay price increases.
MUSIC
•
PLEASE don’t have ads or skipping songs playing. Seriously? Also volume matters, turn it up on the weekends, don’t be shy.
LIGHTING
•
Have you considered mood or accent lighting?
EQUIPMENT NEEDS
NEED: “Cover creating unique/signature drinks that resonate your brand,
café management and drink production guidelines, planning recruitment
and training staff.”