Openning a Coffee Shop
Hi I’m in the process of opening a coffee shop in London next year. I’m currently working on my cash flow forecast and as I am not yet trading some of my figures are pretty vague. Please can someone who is already in this field give me some idea of the real cost of the following: – Kitchen Equipment Is it better to lease or buy? – Interior design & fixtures and fitting. I have forecasted 16k is this sufficient for a shop that seats around 20 people. Legal Fees – How much is the initial costs of silicitors etc. Staff – My overheads here are very high so far 55k per annum This will consist of : – Senior Sales Assistant – Part-time sales assistant – Cook /Chef Part-time Accountant or someone to help with the book keeping I’ll be very grateful for some real help with the above to help me aviod and major pitfalls. Thanks Vida
Kitchen equipment I would lease, use the internet to get prices for the items you need.
Interior design and fixture and fittings, its hard to say if £16K is enough it will depend on what the design is your wanting to achieve, and also what state your premises are in before shopfit out commences.
Bookeeping isn’t hard, attend a night class to grasp the basics. If you do the books yourself you’ll save more money
Thanks for the feedback.
Please could also shed some light on staffing costs and legal fees.
And also can you recommend any suppliers.
Coffee Shop Jobs are renowned for being typically minimum wage which is currently as follows:
The main rate for workers aged 22 and over increased on 1 October 2007 to £5.52 an hour from £5.35 an hour
The development rate for 18-21 year olds increased to £4.60 an hour from £4.45 an hour
The development rate for 16-17 year old increased to £3.40 an hour from £3.30 an hour
When starting out it is important to keep overheads to a minimum although you have got to have an incentive to keep loyal staff.
Legal fees are not something I know much about. so i cant help you with that.
Just found a website which might be of some use to you:
great supplier of equipment is:
For daily selling products try cash and carries, e.g. Mackro
Hope this is of some help.
You might like to know that I helped Don Clarke write How to set up a coffee shop. All the answers to your questions are in the book, down to how many seats you need to make a shop viable to cope with sufficient customers to generate the income needed to repay loans and costs. It includes a complete business plan and spreadsheets.
You can buy it in digital or printed version. It may seem expensive at first, but it could save you a fortune! Before you make any further commitments you really need to know your costings, and Don explains how to do that. It also contains details of suppliers, coffee forums, trade magazines, trade exhibtions etc etc. We spent 4 months writing it, and Don has been a businessman, running a shopfitting company and coffee shops, for all his life, so you can benefit from his experience.
TraceyRevised on 15/04/2008 02:07Sorry, forgot to mention, that with the book comes email consultancy. So depending on which version you may decide to buy, you are entitled to email Don directly with any questions you need him to answer or any information you think he can obtain for you with regard to your business.
Please make sure its good coffee! I would love somewhere I can get a great espresso made properly. I hate the bitter over roasted beans in star bucks etc