How Much Does it Cost to Open a Coffee Shop?

Opening a Coffee ShopCongratulations! Your love of good coffee and the desire to share it with others has you thinking about opening your own coffee shop. You know you have the passion and drive, now you need to determine if you have the financial resources. While opening a coffee shop is less expensive than opening many other types of restaurants, it still requires a substantial investment. If start-up expenses exceed the capital you have at your disposal, financing may be available from a bank, credit union, or private investor. To help you answer the question, “How much does it cost to open a coffee shop,” we offer the following overview of coffee shop start-up expenses.

Estimates for completely outfitting a coffee shop range from a low of $100,000 to as high as $450,000. Some of the major start-up expenses you will face are so reliant on prices in your area and your specific choices that they cannot be estimated here, such as rent and deposits, furnishings, insurance, licensing fees, and the amount you need for a prudent reserve. Other, more standard coffee shop costs include:

Franchise Fees – $50,000 and up
Franchises fees for coffee shops start at the lower end for franchises, requiring an initial fee as low as $50,000 to begin. Fees quickly escalate for the more prominent companies and those that offer multiple product lines in addition to coffee beverages, such as smoothies, frozen yogurt, donuts, and desserts. Be aware, though, that in addition to your initial franchise fee, franchisors can also demand you have a minimum amount of liquid capital on hand (not from funding), often $100,000 to $400,000 or more.

Espresso Machine – $4,000 to $22,000
Several types of espresso machines are available, in a wide range of prices. Your coffee shop success depends on your ability to produce consistently superb coffee, so invest in a new, full-featured model with a reputation for reliability. A machine with a large boiler capacity, at least 9 to 14L, will be best able to keep up with busy crowds. Choose the type of commercial espresso machines that best fits your needs and budget:

  • Manual  $4000 to $8000
  • Semi-Automatic  $2300 to $12000
  • Automatic  $4300 to $18000
  • Super Automatic $3300 to $22000

Coffee Shop Equipment – $16,000 to $38,000
Purchasing refurbished or “scratch and dent” equipment can cut your costs by as much as 50%. New equipment costs are shown here:

  • Espresso Grinder  $650 – $1700
  • 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

Other essential expenses include:

  • Utensils, scoops, etc.
  • Consumables
  • Uniforms
  • Lighting
  • Music system
  • Signage
  • Coffee shop POS
  • Marketing

Expenses add up quickly when you are opening a coffee shop; fortunately, Calypso’s coffee shop POS can help ease that burden. In addition to being the most affordable coffee shop point of sale solution on the market, Calypso provides an easy to learn and use system that reduces training time and allows you to serve customers quickly and efficiently. Integrated payment processing eliminates the need for extra equipment or phone lines, and the time management and scheduling features of Calypso’s POS for coffee shops will help you to prevent costly overtime charges. Calypso even helps with marketing, by seamlessly integrating with the Sundrop Loyalty Solution so you can take full advantage of social media to maximize your profits. Contact Calypso today at 800-771-7100 to discover all the ways Calypso can help your coffee shop dreams become an affordable reality!

Posted on by

Leave a Reply