How to choose a coffee shop location, you ask? And no, all the good ones still need to be taken.
There is always room for one more, especially if you have a good product.
This article is about choosing the perfect location for your café, and I am here to help.
By Jozo Salmanić – Croatian barista with 15 years of experience.
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How To Choose A Coffee Shop Location For You?
First, a cold shower.
It can be hard to get the location of your dreams that costs reasonably low.
However, location is just one of the factors that can make or break new coffee shops.
Here is how you will get the best bang for your buck.
How To Start A Coffee Shop With A Limited Rent Budget
A great location for your coffee shop means nothing if the rent is eating out your income.
If you can’t afford the most popular locations, you can afford to be a block or two near them.
This way, you will save rent money and can benefit from the spillover effect.
It’s better to spend your budget on top-class equipment and pro baristas, even if it means a smaller interior or a more secluded location.
When you get hyper-successful, it’s easy to switch places.
Who Are The Competitors Of The Coffee Shop You Plan To Open?
Opening a coffee shop in a place full of coffee shops means you will have a hard time.
Opening one near large coffee chains is usually financial suicide.
“The top 50 coffee shop chains earn 70 percent of the profit in the industry “ – says Devra G. from Chron.
Larger and more successful establishments can offer the same products at lower prices, compared to you.
You should avoid opening near Starbucks, McDonald’s, and similar chains.
The perfect thing would be if you and your competition could complement each other.
However, that symbiosis is rare, as the world of capitalism can be cruel. Try to find locations with fewer competitors.
Accessibility Is One Of The Strategic Issues Of Coffee Shop(s)
How are people going to come to your coffee shop?
If you choose a location in a mall, that solves the parking issue, accessibility by public transport, etc.
Your coffee place should always have enough parking space so that customers can grab a cup of Joe even in cold, hot, or rainy weather.
Inclusivity is even more pivotal, in my opinion.
Everybody should have a chance to come to your coffee shop and enjoy the best beans.
Make sure your location is accessible by wheelchairs.
Your coffee shop should also have a separate toilet for people in wheelchairs.
Euan’s Guide can offer you additional info on how to make your coffee shop more accessible.
Branding And Long-Term Objectives Of The Coffee Shop
Your location should be aligned with your target market and your long-term goals.
Coffee shops have long life cycles.
Well, at least the successful ones.
If you want your coffee shop to succeed, it has to fit into its surroundings.
For instance, if your target market is business people, your coffee shop must offer food, a modern design, and be located in a business neighborhood.
You will need well-trained staff to fight brunch jams and after-work stampeders.
If you plan to make a cozy family cafe, you need to have a more spacious parking lot.
The location should be near playgrounds, kindergartens, and sports facilities.
The surroundings also have to be safe and appealing.
Real-Estate Brokers Can Be Your Friends
The process of finding the perfect location for your new coffee shop can be long and annoying.
Find a real estate agent who will do it for you.
They can be pricey, but a real estate agent will save you money, time, and nerves in the long run.
Professional real estate agents have market connections, and they don’t have to wait for the “For Lease” sign.
Pick an agency with experience with coffee shops, and make sure they work for your benefit, not the landlords.
The Connection Between Interior And Location
The rule of thumb is that most wanted locations cost extra per square foot.
In everyday lingo, all the popular places are usually small and pricey.
This directly influences your kitchen/bar equipment size and the overall coziness of your coffee shop.
Go just a couple of blocks from the crowded places, and you can find larger premises.
You can get more than enough space for everything, from a fully-functioning kitchen to a children’s corner.
However, that can mean fewer guests.
The Product Price Depends On The Location, Too
- What will you sell in your coffee shop, and to whom?
- Who lives or works in the location of your future coffee shop?
Even Starbucks coffee prices vary by location, says Bill Hood in his article.
Average Joes, students, and office workers will appreciate good, caffeine-rich filter coffee or espresso accompanied by a bagel, apple pie, or a sandwich.
All reasonably priced, of course.
Your coffee shop needs to sweeten the deal if you plan to do business in high-end neighborhoods, business blocks, or high-class areas.
Use specialty beans, organic/vegan food, and exotic menu items.
That, of course, also means higher prices.
Two Main Types Of Coffee Shop Locations
Every location for your coffee shop falls under one of two types.
High-Volume Locations – Keep ‘em Going
High-volume locations are known for the massive amount of people going through.
Some of the examples are:
- malls
- airports
- sports facilities/stadiums
- tourist attractions
All these locations have sky-high numbers of people every day.
The rent is usually sky-high, too, but you can sell your products at higher prices.
These locations can’t have frequenters, so you must focus on visual marketing and quick service.
Low Migration Locations – Howdy, Neighbor
Low migration locations are neighborhoods with (almost) a fixed amount of people gathered around one point.
The best examples are:
- schools/universities
- government offices
- hospitals
- business blocks
- large neighborhoods
These locations have faithful customers who may come by a few times a day.
Word of mouth is your best way of marketing here, along with pleasant service and brunch options.
The trouble here is that the guests usually come in waves – before or after the job/school.
The second issue is that if you base your business model on students, you will have a pretty empty coffee shop in the summertime.
Are Small Towns Excellent Places To Open A Coffee Shop?
Small towns are the best choice to open a cozy coffee shop that can contribute to the community and earn you a decent amount of money.
In small towns, coffee shops are one of the pillars of the community, especially if you hire local people to work there.
To open a coffee shop in a small town, you either have to be one of the few or offer something that’s missing in that market.
Either way, the living costs are usually way lower, and you will need less initial capital to start your coffee shop business.
To Sum It Up
Using the article above, you can start the search for the perfect location for your new coffee place.
Find a reasonably priced premise near the crowds, but far from the competition.
Small towns are often a great choice. Just be patient, and you will find your place.
Photos by Marta Dedyshko and Igor Starkov
