How much money do I need to start a cafe?

Discussion in 'General Business Forum' started by Amazin, Apr 19, 2012.

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  1. Amazin

    Amazin UKBF Enthusiast Free Member

    539 26
    Especailly somewhere close to London? Is it a profitable business?

    I used to work in subway and right now I have a cleaning business going but I'm already on the lookout for new ventures. I'd love to have my own cafe and maybe sell some hot sandwiches.
    Posted: Apr 19, 2012 By: Amazin Member since: Mar 24, 2009
  2. thelegalstop

    thelegalstop UKBF Enthusiast Full Member

    906 142
    I do not think we can tell how much you need to open the cafe. You will have lots of costs for the rent, licenses, products, advertiing etc. It depends on how major is your project. Better prepare some kind of business plan and consult aprofessional. Definitelyy talk to people, who own cafe/restaurant/sandwich shop etc.
    Posted: Apr 21, 2012 By: thelegalstop Member since: Mar 31, 2012
  3. London Bookkeepers

    London Bookkeepers UKBF Newcomer Full Member

    49 5
    Yes do some research. You'll need to pay rent for premises, electricity,gas, etc, etc. You'll have all your costs of ingredients, menus, etc, etc.
    You need to do a full proper business plan.
    I suggest that a good well run cafe in a good location will do just fine. On the other hand if the location, the offering or the business is not right then you will struggle.
    Posted: Apr 21, 2012 By: London Bookkeepers Member since: Oct 11, 2010
  4. GoPD

    GoPD UKBF Newcomer Free Member

    57 9
    Agree with the above, certainly think location and having a product that people will come back for is key.
    Posted: Apr 23, 2012 By: GoPD Member since: Apr 19, 2012
  5. stpconsultancy

    stpconsultancy UKBF Newcomer Free Member

    2 1
    If you want some help putting together a business plan, my firm specialise in exactly that kind of work and we get involved in a lot of equity participation projects so you might not even need to part with any cash up front.
    Posted: May 2, 2012 By: stpconsultancy Member since: May 2, 2012
  6. weband

    weband UKBF Newcomer Free Member

    4 0
    Location is the mosti mportant issue, don't try to any compromise on that - if you have a good located cafe, it will work like a charm, with a middle class product palette. But if you fail on location, you can have the best coffee and sandwiches in town, you don't have a chance to make it.
    Posted: May 6, 2012 By: weband Member since: Apr 16, 2012
  7. jberlin

    jberlin UKBF Newcomer Free Member

    19 4
    I would advise to pick your location. Select your budget for rent. Employ a surveyor to find the best property to meet your requirements and negotiate the best lease terms for you incase things don't go to plan. Your surveyor should also be able to advise you of matters regarding rates.

    From my experaince cafes can be very successful but it all depends on location and overheads, much like any other business really.

    James Berlin & Associates
    Posted: Jun 17, 2012 By: jberlin Member since: Jun 17, 2012
  8. ice cream van hire

    ice cream van hire UKBF Newcomer Free Member

    7 0
    Have you thought about anything other than a cafe, such as an ice cream parlour with frozen yogourts, crepes doughnuts, hotdogs etc.

    I've got a few good kiosks to let.
    Potters bar train station in the booking hall.
    Stevenage in the booking hall,
    luton airport parkway in the booking hall,
    St albans city in the booking hall.

    Rents start at 10k pa

    The footfall for these stations range from 3 million to 7.5 million
    You won't get this kind of footfall on a high street.

    If you need more info send me a PM
    Posted: Jun 21, 2012 By: ice cream van hire Member since: Mar 18, 2011
  9. AndaazOnline

    AndaazOnline UKBF Newcomer Free Member

    2 0
    its upto your technical creativity..
    Posted: Jun 23, 2012 By: AndaazOnline Member since: Apr 28, 2012
  10. cafelife

    cafelife UKBF Newcomer Free Member

    19 1
    Hi there
    I have recently bought a Cafe... the initial outlay is the most expensive!
    But once it's started, you can control the spending.
    It is hard work but very rewarding providing you have a strong will and passion to make it a sucess.
    Good luck :)
    Posted: Jun 25, 2012 By: cafelife Member since: Jun 25, 2012
  11. Drop My Leaflet

    Drop My Leaflet UKBF Newcomer Free Member

    14 0
    Like everyone else has said, there is no exact figure. Go on google and make a list of all the things you'll need...

    Premises (Rent/ Rates)
    Licenses etc
    Posted: Jul 23, 2012 By: Drop My Leaflet Member since: Jul 20, 2012
  12. Speciality-Coffees

    Speciality-Coffees UKBF Contributor Free Member

    55 1
    For anyone interested in starting or already own a cafe, I've made a 5min youtube video about coffee bean quality. Be selective with your coffee and don't just do the standard proceedure of choosing the cheapest :)
    Posted: Aug 9, 2012 By: Speciality-Coffees Member since: Jan 11, 2012
  13. James-IAS

    James-IAS UKBF Newcomer Free Member

    12 0
    I would recommend two things, a business plan and a cashflow, this will prompt you of things you may have not considered, good luck with your venture
    Posted: Aug 10, 2012 By: James-IAS Member since: Apr 4, 2012
  14. Talay

    Talay UKBF Big Shot Free Member

    3,971 869
    As someone alluded to, fit out is the biggest cost.

    You can simplify the first 12 months cashflow if you simply add the rent, rates, utilities and staff costs to your start up requirements. If you don't have that much, you are at risk of not generating sufficient sales to pay bills as they become due throughout the year.

    Premium £20k
    Deposit £10k
    Rent & rates £30k
    Professional fees £5k
    Advertising and website £10k
    Fit out perhaps £50k
    Staff £50k
    Utilities £10k
    Stock £5k
    Working capital £10k

    If those were your figures, you would need £200k
    Posted: Aug 10, 2012 By: Talay Member since: Mar 12, 2012
  15. bozzie123

    bozzie123 UKBF Newcomer Free Member

    38 0
    Wheres it based? and how are you finding it so far ?

    I would love to have a chat with you about this - nboswell90 AT

    Posted: Aug 20, 2012 By: bozzie123 Member since: Apr 8, 2011
  16. GeorgeM

    GeorgeM UKBF Enthusiast Free Member

    519 85
    What about an alternative with better USP and lower startup costs ?

    For example you could supply cafes in your area with tempting delicacies to sell to their customers and increase their sales.

    You avoid having to lease expensive high street property, you have a wider sales area, and you have a USP.

    Many cafes where I live struggle with sales except in narrow busy periods eg at lunchtimes.
    Last edited: Aug 21, 2012
    Posted: Aug 21, 2012 By: GeorgeM Member since: Oct 4, 2007
  17. samjones3608

    samjones3608 UKBF Newcomer Free Member

    7 1
    Hi Nick,

    Did you succeeded in starting up a coffee shop? I am planning to open one. If please share your thoughts samjones3608 at
    Posted: Aug 14, 2014 By: samjones3608 Member since: Mar 29, 2014
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