Tips for starting an out-of-home coffee business

People love to have coffee at home. But whenever they get the chance, they would love to have coffee outside at cafés, restaurants, and other outlets. This has led to a significant growth of the out-of-home coffee business.

In 2020, the market was valued at $22.27 billion. While there was a slight downturn due to the pandemic, things are picking up again. It is estimated that it would grow at a rate of 3.92% over the next five years. This has made entrepreneurs explore the idea of starting an out-of-home coffee business.

You can start a business and capitalise on the growing trend to make it big. Whether it is a café, restaurant, or a coffee house starting a business related to coffee is a great idea. We give you some valuable tips to start an out-of-home coffee business.

7 Tips to Start an Out-of-Home Coffee Business

1) Have a business plan in place

No business can succeed without a proper plan. Create a business plan in which you cover the following:

  • Name of the business.
  • Proposed location.
  • Unique selling proposition of the business.
  • Products offered.
  • Analysis of the local market and competitors.
  • Funds required and source, including finance requirements.
  • Projected sales and business performance.
  • Marketing plan – strategies and budget.

2) Identify a good supplier

You can’t run a coffee business without coffee. You need to get your coffee from a reliable source. Your business should offer something unique that customers won’t get elsewhere. You can consider working with a private label coffee supplier. Doing so will give you access to a range of coffee products that your customers will relish.

3) Scour for a great location

A key factor for success of an out-of-home coffee business is location. You need to choose a location that has the following factors:

  • It should be easily accessible to your target market.
  • The area should be centrally located or a prime area with a lot of footfalls.
  • The business must be visible allowing people to visit.
  • The space must be in line with your vision for the business.

4) Spend time on a good design

Design is important in a coffee shop. This includes seating area, table arrangement, space for amenities, cash desk, serving area, and other amenities. The design also includes the use of décor to make the shop look attractive. When you have customers walking into your store, they must find it attractive.

The use of colours, lighting, soft music, and other such elements can play a key role in the success of your business. Spend time in planning the design and if needed, take the help of an interior designer.

5) Arrange funds

You need to spend money to start the business. The funds required for the business needs to be arranged. You may use your own savings or have a partnership with others who can provide funds. Another option is to look for funds in the form of a loan. Keep all options open and ensure your business can pay back loans taken.

6) Start marketing in advance

Marketing should not start on the day you open your business. It should start from the day you conceptualise it. Start marketing your business by creating a website for it. Promote your business on social media to create awareness of your new business. You need to get maximum visibility for your business, so it can attract customers.

7) Focus on quality

Marketing will bring your customers but if you want to retain them, quality is important. Ensure you provide quality products and services. Quality can keep your customers happy. Don’t focus on merely satisfying your customers but try to delight them through innovative ways. Happy customers will do marketing for you for free. This is the best way to grow your business.

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