Thinking about opening a coffee shop? This guide is for aspiring café owners, first-time entrepreneurs with no food service experience, and small business owners looking to expand into coffee.
How to Start a Coffee Shop: Costs, Tips & Step-by-Step Guide
Starting a coffee shop involves more than just great beans and an espresso machine. You’ll need a solid business plan, the right location, equipment, licenses, staff, and a strategy to attract loyal customers. This step-by-step guide breaks it all down — costs, tips, and tools included — so you can go from idea to grand opening with confidence.
Quick stats
- Startup costs: $10,000-$250,000+
- Time to launch: 2-6 months
- Profit margin: 12%-20% (industry average)
- Best for: Passionate coffee lovers, first-time entrepreneurs, food and beverage fans
Overview
- Decide what kind of coffee shop to open
- Write a coffee shop business plan
- Estimate startup costs
- Find funding
- Get the required licenses and permits
- Choose your location
- Purchase equipment and build out your space
- Hire and train your team
- Build your menu and source ingredients
- Market your coffee shop
Step 1: Decide what kind of coffee shop to open
Before you scout locations or buy equipment, you need to decide what kind of coffee shop you want to run. Your choice here will shape your startup costs, daily operations, and long-term goals.
Here’s a quick comparison of the four most common formats:
Type | Best for | Pros | Cons |
|---|---|---|---|
Cafe or coffeehouse | Entrepreneurs with capital & long-term plans | Cozy vibe, high customer retention, room for upsells | Higher rent, more staff, longer setup time |
Coffee kiosk | First-time owners or low-budget startups | Lower rent, high foot traffic, fast service | Limited menu, tight workspace |
Mobile cart or truck | Side hustlers or seasonal businesses | Low overhead, location flexibility, great for events | Weather-dependent, limited space |
Drive-thru/pickup only | Solo operators in high-traffic areas | Fast service, low staffing, great for commuters | Requires ideal location, less customer interaction |
📌 Ask yourself:
- How much space can I afford?
- Do I want to manage staff or run solo?
- What kind of experience do I want customers to have?
Choosing the right format now helps you avoid costly pivots later. Once you know your setup, you’ll have a much clearer picture of what you need to open a coffee shop —- from space and permits to equipment and staff. While the rest of this guide is geared toward starting a fixed-location coffee shop (like a café, kiosk, or pickup window), many of the steps I included still apply if you’re going mobile or starting small.
Mobile coffee shops like this one are perfect for high-foot-traffic areas, events, or markets — offering flexibility, lower overhead, and a creative way to bring specialty coffee to the streets.
Related: 19 Eye-opening Coffee Statistics for Startups
Step 2: Write a coffee shop business plan
A solid business plan is your roadmap. It keeps you focused, helps you budget smart, and is essential if you’re looking to raise funds or get a loan.
Don’t worry, you don’t need an MBA to do this. A good business plan just answers key questions about how you’ll start and grow your coffee shop business.
Here’s a quick rundown of what to include:
Executive summary | Give a quick snapshot of your coffee shop idea, your goals, and what makes your shop stand out. It’s like your elevator pitch. |
Business overview | What kind of coffee shop are you opening? (Café, kiosk, mobile cart, etc.) What products will you sell? (Coffee, tea, pastries, light meals?) Will it be a solo operation or have a team? |
Market analysis | Who are your target customers — commuters, students, remote workers, moms? Who are your competitors nearby, and how will you stand out? Are there any local trends in coffee or food service you can ride? |
Location plan | Describe the type of space you need, ideal neighborhoods, and how foot traffic or drive-by access plays a role. |
Menu concept | What will be your signature drinks or specialties? Will you bake in-house or source from local vendors? Are you planning vegan, organic, or allergy-friendly options? |
Startup & operating costs | Estimate expenses for:
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Funding plan | If you're not self-funding, detail how much money you need and where it’ll come from: loan, savings, investors, or grants. |
Marketing strategy | How will you attract customers at launch? Will you use social media, loyalty cards, local partnerships? What’s your brand vibe? |
Financial projections | Map out your sales forecast, costs, and breakeven point for the first year or two. |
💡Pro tip: Need help getting started? Use our free One-Page Business Plan Template to keep things simple. Once your plan is set, you’ll know exactly what you need to make your dream coffee shop a reality.
Related:
Step 3: Estimate startup costs
Before you start signing leases or ordering equipment, it’s important to understand the full cost of getting your coffee shop off the ground.
Startup costs can range from $10,000 to over $250,000, depending on your business model, location, and setup. A mobile coffee cart costs far less than a full sit-down café, but both still need a clear budget.
Here’s a breakdown of the most common expenses:
Expense | Estimated cost range | Potential components |
|---|---|---|
Lease & buildout | $2,000-$150,000+ | Security deposit, renovations, plumbing, electrical, flooring, furniture |
Equipment & tools | $10,000-$30,000 | Espresso machine, grinders, refrigerators, brewers, point-of-sale (POS) system, etc. |
POS system & tech | $1,000–$5,000 | Point-of-sale hardware, tablets, receipt printers, loyalty app setup |
Initial inventory | $2,000-$10,000 | Coffee beans, milk, syrups, teas, pastries, paper cups, napkins, straws |
Licenses & permits | $500-$5,000 | Business license, food service permit, health inspections |
Branding & signage | $1,000-$5,000 | Logo, menu boards, exterior signage, packaging design |
Marketing & website | $500-$5,000 | Website, photoshoot, social media setup, grand opening promotions |
Working capital | $5,000-$25,000 | Cash buffer for payroll, rent, utilities, and slow launch months |
Insurance & legal fees | $500-$3,000 | General liability, property, workers’ comp (if hiring) |
Hiring & training | $1,000-$5,000 | Job ads, onboarding, paid training time |
Working capital (3–6 months) | $5,000-$25,000 | Rent, payroll, utilities, reorders, buffer during slow months |
✅ Real-life example: Small-scale setup
Despite how high the costs may look, starting a coffee business doesn’t always mean opening a full-blown shop. I helped a friend launch a micro coffee biz right out of her apartment unit. She was already making brews for herself, so turning that into a service for her neighbors felt natural. Orders came in through a messaging app, and she’d deliver right to their door — no storefront, no baristas, just great coffee and smart word-of-mouth.
💡Pro tip: Start lean and smartYou don’t have to check every box on this list on day one. Many successful shops:
- Lease used or refurbished equipment
- Skip full kitchens by sourcing baked goods from local vendors
- Share spaces (like a market stall or food hall)
- Use DIY tools like Canva and Shopify for branding and web setup
Start with the essentials. You can always upgrade as you grow.
Free coffee shop startup cost calculator
To help you plan with confidence, we created a detailed cost calculator you can use to estimate your expenses. While it may not cover every possible item, it includes most of the typical costs you’ll need to consider. Just enter your numbers and adjust as needed.
Related: Startup Costs Every New Small Business Owner Should Know
Step 4: Find funding
Now that you’ve got a clear idea of your startup costs, it’s time to figure out how to cover them. Whether you’re launching a full café or a mobile coffee cart, there are funding options, even if you’re starting from scratch.
If you’re wondering how to start a coffee shop with no money, here are some smart, beginner-friendly ways to get funding.
Personal savings
If you’ve been saving up for a while, using your own money is the simplest way to fund your coffee shop. You stay in full control, avoid interest payments, and don’t owe anyone anything.
Just make sure to leave yourself a cushion for emergencies — you don’t want to empty your bank account on day one.
Friends and family
Many small businesses start with help from trusted people. A loan or investment from a family member or friend can give you the boost you need.
Be clear about expectations. Put your agreement in writing, even if it feels awkward. Outline how much they’re giving, whether you’re paying it back, and what they’ll get in return.
Small business loans and microloans
You don’t need to go straight to the bank for a six-figure loan. There are funding options designed for small startups:
- Small Business Administration (SBA) microloans offer up to $50,000 and are great for low-cost coffee carts or kiosks.
- Online lenders like Kiva, Accion, or Fundbox offer smaller loans with flexible credit requirements.
- Traditional bank loans may be available if you have strong credit, collateral, and a solid business plan.
💡Pro tip: Apply for pre-approval and compare interest rates, terms, and payment schedules before signing anything.
Related:
Crowdfunding
Crowdfunding lets you raise money from your community and early supporters, without giving up equity or taking on debt.
Platforms like Kickstarter or Indiegogo are perfect for coffee shop ideas with a story or niche angle (e.g., eco-friendly, community-driven, or culturally inspired coffee).
Offer creative rewards like free drinks, a mug with their name on it, or a spot on your “Founding Wall.”
Related:
- Pros and Cons of Crowdfunding a Business
- How To Crowdfund a Business: A Beginner’s Guide
- Best Crowdfunding Sites For Small Businesses
Pre-sales or Pop-up sales
Not ready to launch a full shop yet? You can start selling now.
- Offer cold brew or bottled drinks at local events or farmer’s markets.
- Take pre-orders from friends, neighbors, or coworkers.
- Host a pop-up in a shared space or existing café.
Early sales do two things: they bring in funds and help you test your product-market fit.
Grants, pitch contests, and local programs
Some cities and nonprofits offer small business grants or run pitch contests where you can win seed money. These are usually geared toward:
- Women, minority, or veteran-owned businesses
- Local food entrepreneurs
- Sustainability-focused startups
Check with your local chamber of commerce, SBA office, or economic development groups for programs you may qualify for.
Related:
- 9 Best Small Business Grants
- 7 Best Small Business Grants for Women
- Small Business Grants and Resources for Former Felons
💡Pro Tip: Don’t feel like you need to pick just one. Most coffee shop founders use a mix — some savings, a little loan, maybe some crowdfunding — to get up and running without overextending themselves.
Step 5: Get the required licenses and permits
Before you can start brewing and selling, you’ll need to make sure your coffee shop is set up legally. Skipping this step can lead to fines, delays, or even forced closure, so it’s worth taking the time to do it right.
Requirements vary depending on your location, but here are the most common licenses and permits you’ll need to open a coffee shop business.
Business license
A business license registers your coffee shop with your city or county and gives you the legal right to operate.
- Why it matters: It’s typically required to open a bank account, sign a lease, or apply for other permits.
- Where to get it: Your city or county clerk’s office or local government website.
- Cost: Usually $50-$500, renewed annually.
Seller’s permit (aka sales tax permit)
If you’re selling taxable goods like coffee, food, or merchandise, you need to collect and report sales tax.
- Why it matters: Without this, you can’t legally charge or remit sales tax.
- Where to get it: Your state’s Department of Revenue or Taxation website.
- Cost: Often free, but late filings can result in penalties.
Health department permit
Because you’re serving food and drinks, you’ll need approval from your local health department. This usually involves an inspection of your kitchen, storage, prep areas, and sanitation practices.
- Why it matters: You cannot legally serve food or drinks without this.
- What to expect: You may need to submit a floor plan, equipment list, and operations manual.
- Where to get it: Your city or county health department.
- Cost: Varies, usually $100-$1,000 depending on size and location.
Food handler’s certification (or manager food safety certificate)
Most states require anyone handling food or beverages, including the owner, to complete a short food safety training course.
- Why it matters: It ensures safe food handling, storage, and sanitation practices.
- Where to get it: Online courses from providers like ServSafe or local health departments.
- Cost: Around $10-$100 per person; usually valid for two to three years.
Building, fire, and occupancy permits
If you’re renovating a space or building from scratch, you’ll need permits to ensure your layout, electrical, plumbing, and fire safety systems meet code.
- Why it matters: These are required before you can legally operate or welcome customers into your space.
- Where to get it: Your city’s building or zoning department.
- Inspections: A fire marshal may inspect for extinguishers, emergency exits, alarms, etc.
Sign permit
Many cities have rules around outdoor signage, like how big it can be, whether it’s illuminated, or where it’s placed.
- Why it matters: Hanging an unpermitted sign can result in fines or removal orders.
- Where to get it: Local planning or zoning department.
- Cost: $20-$300, depending on design and location.
Additional permits you might need
Depending on your concept or location, you may need some of the following:
- Music license: If you play background music (even from Spotify or YouTube), you’ll need a license from ASCAP, BMI, or SESAC to avoid copyright violations.
- Dumpster/waste disposal permit: Some cities regulate how commercial waste, especially food waste, must be handled.
- Grease trap permit: Required if you’re serving food and using kitchen equipment that could release grease into the plumbing.
- ADA compliance review: To ensure your coffee shop is accessible to customers with disabilities (ramps, counter height, restroom access, etc.).
💡Pro tip: Check your city’s small business portal or contact your local Small Business Development Center (SBDC) for a personalized checklist. Requirements can differ dramatically by state and even by neighborhood.
Step 6: Choose your location
The right location can make or break your coffee shop. It’s not just about finding an available space — it’s about choosing a spot that fits your brand, budget, and customer base.
Here’s how to pick a location that sets you up for success:
Step 6.1: Understand your target market
Before you start scouting locations, take time to clearly define who your coffee shop is for. Your target market influences almost every decision, from your drinks and decor to your hours and pricing, but it especially matters when choosing a location.
Start by asking: Who do I want to serve every day?
Once you know your ideal customer, the goal is to find a location where those people naturally spend time.
Here are a few examples to guide your thinking:
Type of customer | Description | Best locations | What they care about |
|---|---|---|---|
🧑💼Office Workers | Routine-driven — they want fast, reliable service during their commute, coffee breaks, or lunch |
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🎓Students | Need caffeine and a place to hang out or study — they tend to buy coffee often, especially if it’s affordable and Instagram-worthy |
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👨👩👧Families & suburban residents | Seek casual places to relax after school runs, errands, or weekend activities — they may also grab coffee while out shopping or walking with kids |
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🧘♀️Health-conscious or lifestyle customers | Prefer specialty drinks (organic, vegan, or alternative brews) – they prioritize wellness or mindful living |
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💡Pro tip: Study the neighborhood. Visit during different times of day. Talk to other small business owners nearby. Check local demographics (age, income, foot traffic patterns). The more you align your location with your customer’s lifestyle and daily habits, the more natural it will be for them to become regulars.
More students are choosing coffee shops as their go-to workspace, making location, Wi-Fi, and seating crucial if you want to attract this growing customer base.
Step 6.2: Look for high foot traffic
Coffee is often an impulse buy, so being in a spot with lots of people passing by can dramatically boost your daily sales. The more natural exposure you get, the less you’ll need to spend on marketing just to get noticed.
Focus on areas with strong foot traffic during key times:
- Morning rush (7–10 a.m.): When most people grab their first cup
- Lunch hour (12–2 p.m.): When people take breaks or want a pick-me-up
- Weekends: Especially in shopping areas or community zones
Ideal locations include:
- Busy intersections and corner lots
- Train or bus stations
- Commercial strips or downtown areas
- Malls, campuses, and public markets
Walk the area yourself and literally count how many people pass by during these times. It’s a low-tech method, but highly effective.
That said, foot traffic only helps if people can see you. Prioritize spaces with good street visibility, like a glass-fronted unit, corner spot, or storefront directly facing pedestrians. If the shop is hidden — inside a building or down a side alley — invest in bold signage, window decals, or sidewalk displays to pull people in.
Step 6.3: Consider accessibility and parking
Even the best coffee shop won’t succeed if it’s inconvenient to reach. Your space should be easy to access for all types of customers — walkers, bikers, drivers, commuters, and those with mobility needs.
Here’s what to evaluate:
- Parking: Is there nearby street parking, a shared lot, or space for quick stops and pickups? If not, will customers need to circle the block or pay for a garage? That’s often enough to make them skip you.
- Public transportation: Being close to a bus stop, subway entrance, or transit hub can bring steady foot traffic, especially if you’re near a commuter route.
- Bike access: Is the area bike-friendly? Bonus points for nearby bike racks or lanes.
- ADA accessibility: Make sure the entrance is accessible for everyone, including those using wheelchairs or strollers. Check for ramps, automatic doors, and accessible restrooms.
- Drive-thru setup (if applicable): If you’re planning to include one, confirm zoning laws allow it and that there’s space for a safe and smooth traffic flow.
Step 6.4: Evaluate the physical space
Once you’ve narrowed down a few potential locations, it’s time to look beyond the surface. The size, layout, and condition of the space directly affect your buildout costs, daily operations, and customer experience.
Here’s what to consider:
🧱 Layout and flow
Small spaces aren’t a dealbreaker, but poor layout means longer lines and frustrated staff.
- Is there enough space for customers to order, wait, and sit without crowding?
- Can you set up an efficient back-of-house flow (prep area, storage, cleaning station)?
- Is there a logical layout for a register, barista station, and pickup window?
⚡ Plumbing, electrical, and ventilation
Coffee shops need water lines, drains, and ample electrical outlets. If these systems aren’t already in place, your renovation costs can spike fast.
- Can the space handle high-powered espresso machines and refrigeration?
- Is there an existing grease trap or three-compartment sink?
- Does it meet code for ventilation and food safety?
🚽 Bathrooms
Most cities require public restrooms in dine-in establishments over a certain size.
- Does the space already have restrooms for customers and staff?
- Are they accessible and up to code?
- Adding a bathroom where one doesn’t exist can add thousands to your buildout.
🧯 Fire and safety compliance
- Are there working smoke detectors, fire extinguishers, emergency exits, and proper signage?
- Will the fire marshal approve the current setup, or will upgrades be required?
💡 Pro tip: Bring a contractor or architect with you before signing anything. They can spot expensive issues you might miss — and help you negotiate a better lease or tenant improvement deal.
Step 6.5: Know your budget
Even the perfect location won’t work if it sinks your finances. Before signing a lease, make sure the rent and renovation costs fit comfortably within your startup and monthly budget.
Rent should be no more than 6% to 10% of your projected monthly sales. For example, if you expect to bring in $20,000 per month, your rent should be under $2,000.
If your shop is smaller or takeout-only, you might afford slightly more. But overspending on rent is a common early-stage mistake.
🛠️ Upfront Costs to Budget For
- Security deposit (usually 1–3 months of rent)
- Buildout or renovation costs (which can easily exceed $50,000)
- Equipment installation (especially if plumbing/electrical work is needed)
- Permits, inspections, and utility setup fees
- Initial rent while you’re still under construction or training staff
If the space is in great condition and already equipped for food service, you’ll save significantly. If it’s a blank shell or needs a total overhaul, factor that into your timeline and funding plan.
💡 Pro tip: Don’t fall in love with a space before running the numbers. It’s better to start modestly and scale up later than to overcommit and burn through your capital too soon.
Step 6.6: Research local competition
Knowing who else is serving coffee in your area helps you avoid oversaturation and shows you where you can stand out.
Ask yourself:
- How many other coffee shops are nearby? A few may be fine (especially in busy areas), but if the block is packed with cafes, you’ll need a clear angle to compete.
- What are they doing well? Pay attention to their menu, branding, prices, peak hours, and customer base.
- What’s missing? Maybe they don’t offer cold brew, specialty drinks, fast service, or good seating. That’s your opportunity.
- Are their customers your ideal customers? If they’re attracting the same type of people you want to serve, you’ll be competing for attention, so you’ll need to stand out.
- Is there a niche or demand they’re not filling? Gaps in their menu, service, or hours could be opportunities for you to offer something they don’t.
- Do they have long wait times, poor reviews, or limited hours? Weak spots in their business can be a chance for you to win over frustrated or underserved customers.
💡 Ways to stand out
If you’re entering a competitive area, differentiate with:
- Faster service (e.g., mobile ordering or grab-and-go)
- A unique specialty (local beans, themed drinks, vegan options)
- Strong ambiance (study-friendly, cozy, minimalist, etc.)
- Customer perks (loyalty program, pet-friendly patio, community events)
Location red flags to watch out for
Not all spaces are as promising as they seem. Before signing a lease, make sure your location doesn’t check any of these red flags. We’ve grouped them into key categories to help you spot dealbreakers fast. Use this list as a quick visual reference when evaluating potential spaces.
💡 Pro tip: If multiple red flags show up in one location, don’t ignore your gut. It’s often smarter to keep looking than to force a fit that costs you later.
Step 7: Purchase equipment and build out your space
Once you’ve secured your location, it’s time to outfit your coffee shop for daily operations. This step covers two big pieces: buying the right equipment and setting up your space for smooth customer flow and efficient service.
Step 7.1: Purchase coffee shop equipment essentials
Coffee shop equipment can easily become your biggest upfront expense, so it’s important to get what you need but not overspend.
Investing in high-quality equipment, like espresso machines and grinders, is essential for consistency and speed, but balancing performance with your budget is key for first-time coffee shop owners.
Here are the core items most fixed-location coffee shops need:
I made a quick compilation of the major equipment and what to consider for each:
Espresso machines
This is your workhorse. Prices range from $2,000 to $20,000+.
Type | Best for | Pros | Cons |
|---|---|---|---|
Single-group | Small shops or solo baristas | Affordable, compact | Slower, limited output |
Dual-group | Most cafes | Balanced for speed and volume | Moderate cost, more training required |
Automatic | Beginners or high-volume shops | Easy to use, consistent | Less barista control |
Manual/semi-auto | Skilled baristas or specialty shops | Full control, higher quality | Steeper learning curve |
💡Pro tip: Consider starting with a dual-group semi-automatic for balance and growth potential.
Grinders
Grind consistency makes or breaks espresso quality. Budget for one grinder per brew method (espresso, drip, decaf, etc.). Prices range from $400 to $2,500+.
Type | Pros | Cons |
|---|---|---|
On-demand burr grinder | Fresh grind every time | Slightly slower but higher quality |
Doser grinder | Pre-grinds doses | Faster but can lead to waste |
Flat burr | Consistent, fast | Louder and can heat up |
Conical burr | Quiet, cooler grind | Slower, more expensive |
POS Systems
Your POS (point-of-sale) system isn’t just a cash register — it helps you manage orders, track sales, run loyalty programs, and streamline operations. The right system can speed up service during busy hours, reduce order errors, and give you real-time insights into what’s selling. It can also connect your in-store and online sales, so you’re never out of sync.
Provider | Best for | Key features |
|---|---|---|
Square | Small coffee shops, mobile setups | Easy to use, affordable, built-in loyalty & online ordering |
Toast | Growing cafes or shops with food menus | Restaurant-level tools, kitchen display system (KDS) |
Clover | Shops that want customization | App marketplace, scalable hardware |
Lightspeed | High-volume or multi-location cafes | Advanced inventory, multi-store sync |
💡Pro tip: Square is a popular starting point for independent coffee shop owners. It offers an all-in-one setup — including tools like staff management, online ordering, and marketing and loyalty features — that’s affordable and easy to scale.
Other must-have equipment
Beyond espresso machines and grinders, you’ll need a few essential support tools to keep your coffee shop running smoothly, especially if you’re serving cold drinks or food. These often-overlooked items are just as important for day-to-day operations.
- Refrigeration: Undercounter fridge, upright fridge, and freezer for milk, syrups, and food
- Ice machine: Especially important if you serve cold brew, iced coffee, or smoothies
- Blenders: Choose a commercial-grade, quiet blender if you’re serving blended drinks
- Water filtration system: Critical for taste and machine longevity
💡Pro tip: Start with high-quality, essential equipment and buy secondhand when possible. Many suppliers sell certified refurbished gear that’s more affordable without sacrificing performance.
Related:
Step 7.2: Build out the space
How you arrange your space can make or break the customer experience — and your team’s workflow. Here’s what to consider:
🧭 Customer flow
- Can customers enter, order, wait, and exit without bottlenecks?
- Is your pickup area clearly marked?
- If you offer seating, is it spaced out for comfort and privacy?
⚙️ Back-of-house efficiency
- Baristas should be able to move between the espresso machine, grinder, sink, and fridge quickly.
- Keep storage, prep, and cleaning stations within reach but out of customer sightlines.
🧯 Code compliance
- Make sure your layout includes required fire exits, restrooms, and ADA accessibility.
- Don’t finalize your layout until you’ve cleared it with your local health and building inspectors.
Step 8: Hire and train your team
A great team can make your coffee shop run like clockwork and keep customers coming back. Whether you’re planning to hire from day one or handle things solo at first, it helps to think ahead about staffing and training.
Hiring baristas vs doing it yourself
If you’re keeping costs low, you might plan to be the barista, cashier, and manager for a while, and that’s totally fine. Many successful coffee shop owners start this way.
But if you’re expecting consistent volume or want time to focus on running the business, hiring at least one to two part-time baristas is smart. When hiring:
- Look for people who are personable, calm under pressure, and eager to learn
- Experience is helpful but not always required; you can train the skills, not the attitude
Training basics: customer service, coffee prep, food safety
Whether it’s you or your staff behind the bar, consistent training matters. At a minimum, cover these three areas:
- Customer service: Greeting every customer, handling busy periods politely, and managing complaints or questions
- Coffee prep: Teach your recipes, drink ratios, machine care, and how to make drinks consistently, even during a rush
- Food safety: Basic hygiene, proper storage, temperature checks, and daily cleaning routines (especially if serving pastries or hot food)
It’s a good idea to run a few practice shifts with friends or family before your grand opening to work out kinks in your system.
Free coffee shop employee onboarding checklist
Bringing on new team members? This onboarding checklist helps you train baristas consistently and confidently, from day one to their first few weeks on the job. Use it as-is or customize it to fit your shop’s workflow.
Payroll and scheduling
Once you’re hiring, you’ll need to handle pay and schedules properly.
- Payroll: Use tools like Gusto, Square Payroll, or QuickBooks to handle tax withholdings, employee pay, and filings
- Scheduling: Use a simple shared calendar or scheduling app like Homebase or Sling to manage shifts and time-off requests
- Track hours: Make sure you’re logging work hours accurately — even if it’s just you for now
💡Pro tip: A small, well-trained team that cares about your business can be more powerful than a large, scattered one. Invest in training and treat your team well — they’ll repay you with loyalty and great service.
Related:
Step 9: Build your menu and source ingredients
Your menu is more than just a list of drinks — it’s a key part of your brand, your operations, and your bottom line. A well-crafted menu should be easy to execute, profitable, and appealing to your target customers.
A focused, well-priced menu can help keep operations simple and profits strong, offering just enough variety without overwhelming customers or your team.
Step 9.1: Create a simple, profitable menu
Start with a core lineup of drinks and a few add-ons. Don’t overwhelm yourself (or your staff) with too many options early on. Aim for menu items with shared ingredients to simplify inventory and reduce waste.
Core menu categories might include:
- Espresso drinks: latte, cappuccino, americano, flat white
- Drip or pour-over coffee
- Cold brew or iced coffee
- Specialty drinks: matcha, chai, seasonal flavors
- Non-coffee options: teas, hot chocolate, lemonade
Step 9.2: Decide on food and pastries
Although adding food and pastries is a strategic move, it is entirely optional. This will increase your average ticket size and does not necessarily mean you need a full kitchen. Here are some common options you can offer:
- Baked goods from local suppliers (muffins, croissants, cookies)
- Prepackaged snacks or breakfast items
- Toasts, bagels, or sandwiches (if you have the equipment)
If you go beyond basic prep, be sure your space is inspected and permitted for food handling.
Step 9.3: Source ingredients and supplies
Where and how you source affects both quality and profitability. Find the right balance between local, specialty products and reliable wholesale pricing.
For coffee:
- Choose a local roaster (good for storytelling and quality) or a reputable national supplier
- Test a few beans before committing
- Ask about training or marketing support — they often provide it
For milk, syrups, and basics:
- Partner with a local distributor or food service wholesaler (e.g., Sysco, US Foods)
- Consider alternative milks (oat, almond, soy) — they’re popular and have higher margins
For to-go supplies:
- Cups, lids, sleeves, napkins, utensils — buy in bulk to lower costs
- Consider branded cups or stickers if the budget allows
💡Pro tip: Keep your menu tight and test it with friends or soft launch customers. Track what sells and adjust quickly — there’s no need to lock in a huge menu on Day 1.
Related: The Ultimate Guide to Product Sampling
Step 10: Market your coffee shop
With your shop nearly ready to open, it’s time to spread the word and build buzz. A smart marketing plan doesn’t have to be complicated — it just needs to get people in the door and keep them coming back.
Step 10.1: Plan a strong grand opening
Your first few weeks are critical for making a good impression. Treat your opening like a mini event. Here are some ideas to get you started:
- Offer free or discounted drinks for opening day or weekend
- Set up an Instagrammable corner or branded photo moment
- Invite friends, family, local influencers, and nearby businesses
- Create a Facebook event and promote it in local groups
Soft launch two to three days early with limited hours to train your team and get feedback before your big day.
Related: Grand Opening Ideas to Promote Your Small Business
Step 10.2: Build a local presence online
Start building your digital footprint before you open. Most customers will check you out online before visiting. Here are some essential ways to build your local presence online:
- Set up your Google Business Profile (for maps, reviews, hours)
- Create social media accounts (Instagram and Facebook at minimum)
- Share photos of your buildout, menu teasers, and behind-the-scenes updates
- Use local hashtags and geotags to get discovered by nearby customers
Step 10.3: Run simple promotions
Start with low-cost, high-impact ways to get people talking. Here are some popular ways to promote your coffee shop:
- Loyalty cards (e.g., buy 9, get 1 free)
- Limited-time seasonal drinks
- First-week coupons or “bring a friend” discounts
- Partner with nearby businesses to cross-promote
Related: How to Create a Loyalty Program in 8 Steps
Step 10.4: Encourage reviews and word of mouth
Online reviews build trust fast, especially for new shops. Ask early customers to:
- Leave a Google review
- Tag you on Instagram
- Share their experience with friends
Make it a practice to respond to every review, good or bad, to show that you care and are actively engaged.
Step 10.5: Keep it going with consistent marketing
After the launch, focus on staying visible in your local community.
- Post weekly on social media
- Highlight staff, feature regulars, promote specials
- Join local events, pop-ups, or farmer’s markets
- Consider running small Facebook or Instagram ads targeting your zip code
💡Pro tip: Don’t wait until you open to start marketing. Build hype during the setup phase to ensure people are ready to walk in the door on Day 1.
Free download: 25 Ways to Promote Your Coffee Shop on a Shoestring Budget
Need fresh, affordable marketing ideas? This free resource is packed with low-cost ways to get more eyes (and customers) on your coffee shop —- perfect for new owners working with a tight budget.
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Bonus: Tips for long-term success
Launching your coffee shop is just the beginning. Here are some smart ways to stay profitable and keep your customers coming back long after opening week:
- Track your bestsellers: Regularly review sales data to see what drinks and snacks perform best, and streamline your menu accordingly.
- Keep your costs in check: Monitor waste, negotiate with suppliers, and adjust pricing when necessary to protect your profit margins.
- Stay involved in your community: Host events, support local causes, or collaborate with nearby businesses to stay top of mind.
- Ask for feedback often: Talk to customers, run quick surveys, and listen to your regulars — they’re a goldmine for improving your shop.
- Keep improving: Whether it’s trying a new seasonal drink, updating your space, or testing a rewards app, always look for small ways to grow.
💡Pro tip: The coffee business is about relationships. Build trust with your team and your customers, and success will follow.
Frequently asked questions (FAQs)
Click through the sections below to read answers to common questions about starting a coffee shop business:
Startup costs typically range from $10,000 to $250,000+, depending on your setup. A mobile cart costs less, while a full café with seating and a kitchen will require a larger investment.
Most coffee shops earn a net profit margin of 12% to 20%, which is solid for food and beverage businesses. High-margin items like espresso drinks and low food waste help boost profitability, especially when paired with smart inventory and labor management.
It’s possible to start small with very little money, like running a mobile cart, pop-up, or apartment-based setup, but you’ll still need a plan and at least some startup funds. Many new owners use a mix of savings, small loans, and creative pre-sales to get started.
Running a coffee shop is rewarding but also hands-on and fast-paced. You’ll need to manage inventory, train staff, deliver great customer service, and stay on top of marketing. Systems and consistency are key to staying organized and profitable.
Espresso drinks like lattes, cappuccinos, and cold brew are usually top sellers, especially with upsells like plant-based milk or syrups. Add-on items like pastries or seasonal drinks can significantly increase average ticket size.
Bottom line
Opening a coffee shop takes planning, creativity, and a lot of hustle, but it’s absolutely doable, even if you’re starting from scratch. Focus on getting the basics right: choose the right format, write a solid business plan, manage your costs, and create a space and menu your customers will love.
Start small if you need to. Grow as you go. And remember — consistency, community, and great coffee are what keep people coming back. Tools like Square make it easy to handle payments, orders, and customer loyalty from day one.
