How Much Does It Usually Cost to Start a Coffee Shop?

Coffee Shop

The average coffee drinker in the US drinks about 3 cups of coffee per day.

Do you love coffee so much that you’re thinking of making it your business? This is a fun idea to imagine, but in reality, you’ll need some cash to make it happen.

If you’re curious about the cost to start a coffee shop, keep reading to learn more.

The Cost to Start a Coffee Shop

The cost of starting a business depends on two main factors: overhead expenses and startup costs.

Of course, many overhead expenses will also be startup costs, but you have to have a solid financial plan in place that accounts for all of these expenses before you can get started.

If you want your coffee business to be a success, you need to consider all of the business fees and how much capital you’ll really need before you invest in anything.

Starting a coffee shop will range in price based on what you choose to purchase and how big of an operation you want to have. Logically, even a small business is going to be pretty expensive because of all of the things that you would have to pay for.

You need to have a good plan in place to make sure it is successful. This is especially true since the cost to start a coffee shop will be at least a few tens of thousands of dollars.

Where Does the Money Go?

Overhead costs are going to be fixed or variable. Fixed costs are things that you’ll have to pay every month, such as rent or utilities. Variable costs are things like inventory or shipping fees because they won’t be the same every month.

When you’re starting a business, you’ll have to pay both fixed and variable overhead costs at the same time.

The overhead costs that you’ll be looking at when you consider the cost to start a business include:

  • Rent
  • Utilities
  • Insurance
  • Legal or accounting fees
  • Inventory
  • Equipment
  • Maintenance
  • Postage and shipping
  • Commissions
  • Payroll
  • Advertising and marketing

Remember that you are also going to be paying taxes on a lot of these things. Also, consider that you may have emergency expenses that will need to be covered as well.

Consider the Location

The location you choose for your business is one of the most important factors that indicate possible future success.

If you choose a location that is inaccessible or unpopular, you’re going to have fewer customers. This is why desirable locations, however, will cost you more money.

Before you land on a space to place your business, you’ll want to think about whether buying or renting is your best option.

To make the best choice, you should look at your finances and consult with an advisor before signing an agreement.

Do You Want to Open Your Own Shop?

The best way to figure out the cost to start a coffee shop that people love is to make a solid plan from the get-go.

With that, you’ll have a jumping-off point that will allow you to figure out what you need and don’t need for your new business.

Do you want more help with finance or business? If so, check out those sections of our website and learn additional tips before opening your own shop.