How much money do I need to start a cafe?

[Amazin]

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.

 

[thelegalstop]

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.

 

[London Bookkeepers]

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.

 

[GoPD]

Agree with the above, certainly think location and having a product that people will come back for is key.

 

[stpconsultancy]

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.

 

[weband]

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.

 

[jberlin]

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
James Berlin & Associates

 

[ice cream van hire]

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

 

[AndaazOnline]

its upto your technical creativity..

 

[cafelife]

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

 

[Drop My Leaflet]

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)
Suppliers
Licenses etc

 

[Speciality-Coffees]

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
http://www.youtube.com/watch?v=c7q6d_TrhU4

 

[James-IAS]

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

 

[Talay]

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

 

[bozzie123]

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

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

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

Nick

 

[GeorgeM]

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.

 

[samjones3608]

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

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

Nick

Hi Nick,

Did you succeeded in starting up a coffee shop? I am planning to open one. If please share your thoughts samjones3608 at gmail.com