Is it the right time to open a coffee shop in Edinburgh?

Ani.Alan

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Jan 27, 2011
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Hello there,

Me and my partner are considering the idea of opening a small coffee shop/restaurant in Edinburgh. We are looking at central locations (tourists, students and businesses around). However, we are not convinced it`s the right time to start this venture, considering the recession and unemployment rates in the city and the bigger restaurants/pubs in the vicinity.

This will be a completely new experience for us but we think we`ve got a good idea of how it`s going to be in order to attract people (quality food, low prices, character). But again, is it the right time for this investment? We`ll appreciate any business tips or comments you guys may have.Thanks!
 
Hi Ani,

From my experience of the city, and remember this is just my opinion, it's going to be very difficult to start a coffee shop unless you have a really good USP.

You've got Starbucks and Costa all over the place (sometimes almost right next door to each other) and the independent coffee shop is going to struggle.

Having said that, I'm not sure if you've heard of Artisan Roast? I hope you have, if what you've posted is true. They're a successful coffee shop on Broughton Street but their USP is that they roast their coffee beans literally a few days before serving - fresher than the supermarkets, fresher than Starbucks and Costa, and by god you can taste it.

As a result of this process, they can bump their prices up from £2.50 a bag of Coffee to £5.00 a bag, and you know what? That's still good value for money.

I suppose it depends on your location and your USP. Quality coffee is possibly the most important thing for you to worry about though (in my opinion).

Be interested to hear more about the plans though :)
 
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I have experienced Edinburgh a lot and found that many of the coffee shops close at 6pm or earlier!!!! this is an awful time to close, especially in winter! many people want to stay in town rather than spend an hour in busses/cars but dont want an alcoholic drink and want somewhere to sit then catch a later bus that goes faster. Edinburgh is terrible for that sort of service!
 
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Stugster and Jen, thank you both for your replies.


You kind of confirmed my ideas regarding the place. I totally agree that the USP is the most important thing when opening a place, and we'll be giving it more thought. Artisian Roast's originality is unquestionable, it`s amazing how simple ideas can turn your business into success.
Good coffee is definitely what we`ll be aiming at but we`ll also be delivering food. The idea is to serve good quality food at affordable prices, including take away such as baguettes and pastries. There is this place abroad, where we used to live, everyone loved it for their food. I used to work there and good food proves to be something which attracts people a lot, so this place will serve us as an example when it comes to the menu. We are planning to invest some energy on the décor of the place, we want to make it look cosy and inviting to spend some time reading a newspaper/book or whatever. Regarding the opening hours, Jen, I totally agree with you, I`ve also noticed how early some coffee shops close and people end up going to pubs. I appreciate your comment on this! We were thinking of opening from 8am till 8pm, with 2-3 hours break in the afternoon, just an idea though, will see how this goes.
Thanks for the posts, ur opinions are much appreciated!! Pls, let me know if you think of anything else..
 
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Ani/Alan,

Sorry, I misread your post and thought it was just coffee you were going to be doing. In that case, it might be worthwhile speaking to the guys at Artisan to see what options they have for supply.

If it was me, I'd have absolutely no doubts about using their coffee as the coffee bean of choice for the shop.

Have you any idea where you want to have the shop? What area of Edinburgh? What budget do you have set aside for the property itself?
 
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Hi there,
We are considering a place between the Common Wealth Pool and Clerk str, it`s a side street but the place is very visible. Still checking out other places in close vicinity to the city centre, the centre itself is out of our league though. Our budget is around 30K. We are concerned whether now is the right time for such an investment…I mean, we are aware that a lot of small businesses struggled during the last years and we wouldn`t really want to join their struggle. Even though we`ve got good ideas it`s a new venture it`s hard to predict how things will go, that`s why we r looking for external opinions and evaluation.
 
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Hi there,
We are considering a place between the Common Wealth Pool and Clerk str, it`s a side street but the place is very visible. Still checking out other places in close vicinity to the city centre, the centre itself is out of our league though. Our budget is around 30K. We are concerned whether now is the right time for such an investment…I mean, we are aware that a lot of small businesses struggled during the last years and we wouldn`t really want to join their struggle. Even though we`ve got good ideas it`s a new venture it`s hard to predict how things will go, that`s why we r looking for external opinions and evaluation.

Visible isn't the same as footfall though; especially for that kind of business.

Is the 30k for the property, or is that for the whole project?
 
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You are right, but that particular location seems good. It`s a corner with a main road, loads of offices, sports centre near by and students residence. 30K is for the whole project, the places we are looking at are functioning at the moment and include all equipment and licenses in the price.
 
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Have you thought of including the most beautiful hot drink, - melted chocolate - some serve it with cream.

For a feel good factor on a cold cold day, then a small mug of MC, is bliss and absolute pure indulgence - and we Brits luv our chocci!

It's very popular on the continent, but yet to fully catch on over here, mixed with cinnamon, or chilli (which takes the sweetness away and is yummy) to name but a few, perhaps it could form part of your USP.

Poppy xx
 
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You are right, but that particular location seems good. It`s a corner with a main road, loads of offices, sports centre near by and students residence. 30K is for the whole project, the places we are looking at are functioning at the moment and include all equipment and licenses in the price.

Your justifications for that particular area are good ones, in my opinion. What are you wanting to have at the end of it? Is it a basic coffee shop that sells cake and cookies, or something a bit more sophisticated?
 
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Thanks Poppy, great idea,we`ll consider it. I agree with u - everyone loves a hot cup of chocci!!


Nothing too sophisticated, just a medium size coffee shop with soft sitting and plesant environment. Serving hot and cold drinks, and food - salads, homemade soups, pasta (food will be mostly mediterranean style coz that`s what we are familiar with), sandwiches (baguettes and burgers), cakes and fresh pastry. Availability will be not more than 20 people sitting in and take away options. I guess that`s the general description. We may need to refurbish in order to create the particular cosy character we r after.
 
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If it was me, I'd go around 10 or so similar businesses in Edinburgh. Write down what you like about them, and what you don't like.

Then, why not go to a few others and see how busy they are, and try and work out why. Go at different times of the day, what times are they stupidly busy? Why?

Get that research done and really know your competition before you jump ahead to getting a lease in place. With that knowledge, you'll be able to do it right first time and be successful as a result.
 
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Very true! We also thought of doing something like that, but hearing it from someone else sounds even better:) Thanks for ur feedback!!
 
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No problem! I wish you loads of luck with it.

Once you've done the market research, come back and let us know how you got on. More than happy to throw some more ideas/suggestions into the mix as well!

Also, if you do go down the road of setting up, make sure you let me know where you are so I can come and say "hey!"
 
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Thanks Poppy, great idea,we`ll consider it. I agree with u - everyone loves a hot cup of chocci!!


Nothing too sophisticated, just a medium size coffee shop with soft sitting and plesant environment. Serving hot and cold drinks, and food - salads, homemade soups, pasta (food will be mostly mediterranean style coz that`s what we are familiar with), sandwiches (baguettes and burgers), cakes and fresh pastry. Availability will be not more than 20 people sitting in and take away options. I guess that`s the general description. We may need to refurbish in order to create the particular cosy character we r after.

Not the bog standard powdered stuff, real belgium chocolate melted and served with small biscuits...maybe your place will not be the cosy type place that this would go down in all that well.

But, Edinburgh certainly has the right cosmopolitan atmosphere for it to be attractive.

Will seating for 20 people be large enough for you to make a profit, its not that many; especially if some of the tables are taken up with people just ordering a coffee.

POPPY XX
 
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Hi there,
We are considering a place between the Common Wealth Pool and Clerk str

A few years ago, a friend of mine was doing a degree in tourism at Napier (lol) and she had to do a project where she put together a report about opening a cafe.

The area she picked (hypothetically) was Clerk St.

I remember I came up with a USP for it. But I can't remember what it was.

(Maybe a language exchange or something similar.)

I may have even re-written the report for her before she submitted it.

It seems a long time ago.

Steve
 
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Hi there,
We are considering a place between the Common Wealth Pool and Clerk str, it`s a side street but the place is very visible. Still checking out other places in close vicinity to the city centre, the centre itself is out of our league though. Our budget is around 30K. We are concerned whether now is the right time for such an investment…I mean, we are aware that a lot of small businesses struggled during the last years and we wouldn`t really want to join their struggle. Even though we`ve got good ideas it`s a new venture it`s hard to predict how things will go, that`s why we r looking for external opinions and evaluation.


ZOMG!!!!!!

tell me the menu.. I like bacon rolls, the one at the old metropole is rubbish now as they use streaky bacon and it ends up costing about £5.00 after that it's somewhere like ... meh it used to be called crumbs but it's often full and they take like ages to get your coffee to you!!!!

I could probably keep you in business myself!!!
 
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Oi! :mad:

quote]

Agree so much with the Oi!!!! Gibson's presumption is quite outdated on this LOL (As lots of people, by the way...)

It's cool to graduate from Edinburgh University, but it's not so cool to stack the shelves in Tesco after that...
 
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We live in Edinburgh. The coffee situation is pretty dismal. We sometimes feel like going for a coffee and something to eat after a show, for instance, and there's not much available. What I miss is the kinds of coffee shops you have in Sydney in the inner suburbs, 11am to 3am, no alcohol, but yummy food and loads of choice on the dirnks, including chai. From what we can see, the only places still trading at 3am are kebab shops. As for the quality of the coffee sold, let's see. Costa and Starbucks, not too good. Neros is better, but one has to be well heeled to drink there. Amazingly, Wetherspoons (Lloyds in the Omni centre) is quite good. Cheap coffees that taste okay. And nobody does good plunger coffee here. Well, we have been here quite a few years, and have pretty much tried out at least 50% of the inner coffee serving establishments, and so far I have yet to try good plunger coffee.

We were in Paris a decade or so ago, just travelling through, and I remember being in this place, just an ordinary coffee shop where you stood up to drink the coffee, and drinking a flat white that tasted like liquid velvet. If anyone knows anywhere selling really good coffee in Edinburgh, please do share.
 
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I have to admit I like stumbling in to Neros in Stirling to sit and watch the world go by or get a bit of work done. Downstairs has a fast paced 'on the go' vibe whereas upstairs is more relaxed. It's right in the center of town which is ideal I guess.

I like the idea of a coffee shop with great coffee and a relaxed atmosphere where you can sit down read a book or work on your laptop without feeling rushed - usually ends up with more than one coffee being consumed ;) . Or a place to meet up with someone.

But to compete against those like Neros, Costas and Starbucks etc you will need a USP. Maybe specialty coffee or own blends.
 
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Just a note....

I went past a "sandwich bar" opposite the Quenns Hall at 8.30 this evening.

It used to be all silvery and spartan, but someone has put in comfy chairs extended the menu and put a big plastic ice cream cone hoarding outside it....

It was absolutely HEAVING! (8.30pm Wednesday night, full of students) so clearly there is a lack of venues open till late!
 
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if you haven't already considered then think about buying an existing cafe or similar? inherit someone else's hard work with incumbent unit, lease, suppliers, customers, revenue etc. it's a great marketplace to buy. good luck.
 
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Hi,

Have you ever been in Victoria Bar or Boda bar on Leith Walk, or Sofi's near the shore in Leith? Those are bars rather than coffee shops, but they really attract a loyal clientele, plus curious new people, I think partly because of their quite unusual, relaxing, alternative (and quite young and student-y). They also have music playing, which I suppose fits in with the regular crowd (tuneful and alternative!)

I know it might not be the most original idea ever, but I think that if you had a welcoming, colourful decor (sometimes it even looks quite Christmassy), fairy lights, pot plants, cushions, etc...then you would be onto a real winner, especially around the Commonwealth pool and Clerk Street for students, etc. (I'm from Edinburgh.) It wouldn't have to be too hippyish and way-out!! xx
 
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Worked in Edinburgh as a black taxi driver for three years.

IMO that is not a great a location. You are too far away from the centre and the action. Think top of Leith Walk, Forrest Road area.

What about perhaps running the business from Cargo bikes (See Maxpro or Cyclus Maximus). Used Rickshaws can be purchased (especially after the summer) for about 2.5k

Please email me if you need Rickshaw company contacts.

There is serious money available in Edinburgh whenever the streets are busy. If you had a mobile unit you could move it to where the trade is. That maybe means go where the office workers go during the day; and go where the party goers and late night work is on Sat and Sunday night?

Good luck.
 
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This may or may not be of interest but there used to be a coffee shop in Commercial Quay in Leith a few years ago (beanscene). It got bought out then the buying firm went bust so nothing ever happened. It was very popular and nothing yet has ever filled the gap. There are a lot of people in the area that tend to go to the bigger restaurants for coffee but we really miss a nice and simple coffee shop.

There are probably a few places to rent down here too.

Cheers
 
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I'm always looking for great coffee shops to have client meet ups so free wi-fi, even power points are just as important as the coffee.

If you focus on this market a lot of people like popping into places just to catch up on their emails, twitter, facebook, etc whilst on the go.

Offer the right environment for these people and you could do al right.

The other thing to consider especially a coffee shop is location based services and social media. Really exploit sites like FourSquare, Gowalla and even Facebook Places - promote people to check-in to your establishment and you'll soon be all over the social graphs of Edinburgh folk.

You can also offer mayorship offers (FourSquare) and deals (Gowalla & Facebook) for check-ins like free coffee for the Mayor or free coffee if you check-in with 4 other friends (Facebook).

Use QR codes or window decals to make it easy for customers to check in with their mobile phones.

If I was opening a coffee shop that's what I would do.

Hope that helps...

Andrew Baker
 
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I'm always looking for great coffee shops to have client meet ups so free wi-fi, even power points are just as important as the coffee.

If you focus on this market a lot of people like popping into places just to catch up on their emails, twitter, facebook, etc whilst on the go.

Offer the right environment for these people and you could do al right.

The other thing to consider especially a coffee shop is location based services and social media. Really exploit sites like FourSquare, Gowalla and even Facebook Places - promote people to check-in to your establishment and you'll soon be all over the social graphs of Edinburgh folk.

You can also offer mayorship offers (FourSquare) and deals (Gowalla & Facebook) for check-ins like free coffee for the Mayor or free coffee if you check-in with 4 other friends (Facebook).

Use QR codes or window decals to make it easy for customers to check in with their mobile phones.

If I was opening a coffee shop that's what I would do.

Hope that helps...

Andrew Baker

I would have to agree with the above post this would be a great way of targeting a certain type of person.
I cannot think of any coffee shop within the city which exploits these sorts of elements within it service .I personally feel this sort of activity linked with the late opening which many other posters have mentioned you could be onto something which could be very successful

I am very interested in the check-in economy and how mobile fits into a retailer more generally as I am wishing to do this for my dissertation next year at uni and if you where to focus on these nascent technology at this time you would also be ideally place to increase engagement when mobile payment becomes more mainstream in a couple of years’ time however if you do not want to compete with starbucks who uses mobile payment technology widely in many of their stores you may want to reconsider

Hopefully this helps you
good luck with it whatever you end up doing

Callum
 
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Well, if your going to do it you had better get on with it! I'm popping up for the Edinburgh Festival so I would be a customer.
Got another story...
Friend of mine opened a coffee/food shop close to the university. He had plenty of competition but decided to give it a go as he had a different idea. He wanted to serve great coffee (as they all try to do) but his food was great! He decided to concentrate on nacho's. Not the ones you get in the cinemas but ones that were stacked up with lettice, chilli, tomoatoes, the lot! You could ask for your chilli to be either mild, medium, hot or really crazy. The students went wild for it as they all wanted to try the really crazy one (one of those student things I suppose) But anyway, he had something totally unique that really appealed to the student market...food that was quick, easy and fun. He's doing really great business now.
I appreciate it might not be your thing or what your looking for but it shows that if you just think different you can have real success...and remember he's doing it in the recession.
Good luck in whatever you decide and remeber if you need any further help and advice, try our site thebizniz.com
 
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