How Much Does it Cost to Open a Coffee Shop

Opening a Coffee ShopAre you tempted by your love of fine coffee to open your own coffee shop? This could be a great move for you – coffee shops continue to grow in popularity, as customers seek them as the perfect place to meet with friends or clients while getting their delicious caffeine fixes. Opening a coffee shop does require long hours, hard work, and a hefty price tag – estimates for completely outfitting a coffee shop range from $100,000 to $250,000 depending on your location. This list provides a general break-down of expenses to help answer the question, “How much does it cost to open a coffee shop?”

Franchise Fees If you decide to open a coffee shop franchise, minimum buy-in requirements can demand a net worth of up to $1 million with a liquidity of $250,000, in addition to monthly fees. Franchises offer the benefits of national brand name recognition, an established business model, national advertising, and training. Sometimes franchisors will help with financing themselves or introduce you to financers that work specifically with their company.

Location This expense will vary greatly depending on the local real estate market. Look for a location with a lot of foot traffic such as a busy downtown area or a mall but be wary; many malls tack on extra monthly fees.

Espresso Machine This is the heart and soul of your business – definitely not the place to scrimp! Coffee machines are notorious for breaking down if they are not well maintained, so a new machine is your safest bet. Be sure your machine has a large boiler capacity (9 to 14L) to ensure you do not run out of steam during busy times. You have a choice of four types of commercial espresso machines:

  • Manual  – Hand-operated lever; authentic “old world” styles still preferred by professional baristas in Europe, especially Italy $4000 – $8000
  • Semi-Automatic – Requires manual shut-off of the espresso ‘pour’ by operator via electric pump or hydraulic delivery method; requires a lot of training $2300 – $12000
  • Automatic –  Perfect for custom orders, as the ‘pour’ length can be programmed for automatic shut-off or operated manually $4300 – $18000
  • Super Automatic – The machine does everything – grinds and packs the coffee, brews it, and ejects the grounds; 1-step machines add frothed or heated milk directly into the cup $3300 – $22,000

Espresso Grinder Commercial models have extra-large hoppers, heavy-duty motors, and a doser; some are fully automatic. You will need one for regular and one for decaffeinated $650 – $1700

Other Equipment Consider purchasing pre-owned or “scratch and dent” equipment to reduce costs:

  • Pastry Case $8000 – $14000
  • Commercial Blender $150 – $300
  • Under-Counter Refrigerator $1300 – $3500
  • Storage Refrigerator $1700 – $6000
  • Ice Maker $1800 – $3000
  • Freezer $1800 – $4000
  • Counter-top oven $550 – $3000
  • Panini grill – $350

Additional Expenses:

  • Uniforms
  • Counters
  • Coffee shop POS
  • Lighting
  • Music system
  • Signage
  • Marketing

Furnishings You want your customers to linger at your shop. To accommodate all your customers’ needs, consider an assortment of comfortable couches, computer tables, and outside café seating.

Expenses add up fast when you are opening a coffee shop! Calypso helps you manage expenses by offering the most affordable restaurant POS on the market. Calypso’s coffee shop point of sale software improves your bottom line with a single screen order to pay solution that speeds service. Your profits are protected by cash drawer assignment that prevents unauthorized NO SALE transactions and order entry with open drawer. Contact Calypso today at 800-771-7100 to discover all the ways Calypso’s POS for coffee shops can save you money!

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