Finding a location for a coffee shop

Location is often the number 1 choice for a visit to a coffee shop. The coffee shop has to be in a covenant location: in the center of the high street, in a big office building, next a train or bus station, along side a motor way, inside a shopping mall etc.

It's quite difficult to change the location of your coffee shop so make sure that you are 100% happy about the choice that you are about to make. Do a lot of research and then do some more!

Size

One of the things to think about is the size of your coffee shop. Big coffee shops usually mean higher rates and it might not return the investment. A good way to think is: do I have enough seating space so my customers always have a seat? and do I have enough space so it's hardly ever empty?

High street coffee shoprates

The most important thing to research is the total running cost and total rates for the location. Find out how much you will be paying for rent/lease, electricity, water, council tax, service charges and work out if you will be able to cover these cost with the amount of seating space that you can have.

outside seating area

Outside seating area for coffee shops are one of the best marketing strategies possible. It makes your shop more visible and it's your way to show of to potential customers how wonderful your sandwiches and drinks are. Outside seating area also allows people to enjoy the sun or breeze and to enjoy their much needed nicotine.

How to research

There are many ways to research a location for a coffee shop: estate agencies, internet websites, search terms on search engines etc. The best way however is usually sightseeing. Simply go out there and have a look. It's a good idea to do the initial research on the internet but you will have to go out there to get the feel of the place.

Find out how busy the location is at certain times during the day and during the week. Visit the location as often as possible.

Teach yourself to look out for 'to let' and 'for sale' signs above retail shops. You will see more than you probably realized once you start paying close attention.

Train Station Coffee Shopcompetition

Competition at a location can be healthy and it can bring potential customers to your area. Just make sure that you are confident that you are offering a better service and better products than your competition. Understand how to compete with competitors and find out if there are enough people around to open up a new coffee shop.

Visit the competition as often as possible and try to talk to the customers to figure out what the people in the area are looking for. Get to know your local custom; people are different in every town!

startup cost

Do not underestimate the startup cost for a coffee shop. You might have to put down a deposit or pay for the first few months of rent. Find out how much start up cost you really need. Think also about refurbishment and decorating cost. Have a good amount of contigency money available, this is often a thing that most people get wrong.