Who would be opening a coffee shop without a plan?
So, who am I to say that YOUR plan is not good right? Let me ask you this question, is your plan:
1. Involves finding a choice location
2. Communicating that "story" a certain theme
3. Have the best service possible
Well, that looks to me like Starbucks, and the first point are what Singapore coffee shops such as Yakun, Killiney or Coffee & Toast is doing.
So, if all of them are so successful -why wouldn't you be too? After all, there are Yakun, Killiney, Wang, Toast box, there should be place for one more right?
Do you want to take the chance?
And even if you succeed, can you scale it up, grow the brand?
And that is the "bad plan" I am talking about when folks open a coffee shop.
Here, we are talking about coffee shop business, but it applies to all F&B business. You want to be unique, you want to give people a reason to visit the coffee shop that you have open.
When you look at existing coffee shop business and try to be better than them in subtle ways, you lose your own identity.
1. Consumers cannot differentiate You from them, and why would they want to pay for the "me too" when a few steps down they can get the real Starbucks or Yakun.
2. How are you going to scale it up? How big can you grow versus the big chains?
3. To start with, without a brand, it is very difficult for a "better than existing" business plan to get you into shopping mall.
This is the problem, for the solution, do check out our follow up article to opening a coffee shop.