The cafe setup cost is one topic that a lot of owners/potential owners will bring up in our decades of consulting coffee shop business. Thus, we created a free calculator for anyone that wishes to start a cafe business to have a feel for the cost of opening a cafe in their area.
With this calculator, you will get an overall view of how much you will need to start and run your ideal cafe for six months. And if you achieved your desired sales volume, what is the revenue you are looking at.
It will be good to have an idea of the various costs you will incur to benefit from this calculator fully. Moving forward, we will also be adding more resources to assist you (the reader) in getting more insights into the various cost of opening your coffee shop.
Some essential information you will need to benefit from using the calculator:
How much are you willing to pay for your physical location, and how many months are required as a deposit (from the landlord). Read more about cafe/coffee shop rental.
How much are you willing to invest for the set up of your physical location, the interior design and includes the plumbing, the electrical, wood works etc.
You will need to estimate the type of equipment you will need to set up this coffee business. The equipment types are Combi Oven, Coffee Machine, Coffee Grinder, Chiller, and equipment required to operate a coffee/ food business.
Here is where you work out the food costs based on the items you will want to sell, and you can estimate based on the raw materials. Some costs include coffee beans, vegetables, meat, packaging etc.
This section is your operational costs. It includes utility bills, insurances, fees for licenses and permits, hygiene audits, GST registration costs etc.
This is a section for you to decide how much you will pay for your staff (barista, chef, server etc.) and how many you will need to operate your coffee business.
The most critical section: how many cups of coffee will you be able to sell in a day? This gives you an idea of how much sales you need to breakeven or make a profit. You can base it on the lowest-priced beverage that you intend to sell.
So, as you build your business plan for your coffee shop business, have a go at the cafe setup cost calculator to estimate your startup cost, your operation costs and, of course, your breakeven or profit margin.
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Learn more about the Coffee Shop Location Analysis event.
OCM (OnCoffeeMakers.com) was started in 2007 with the first webpage about coffee machines. And for a number of years, we focused on helping people find their desired coffee machine (we still are helping folks with that! So, if you are looking for coffee machines for office or restaurants - check out the link).
In 2010, we started getting enquiries on restaurant marketing and we start to help food and beverage brands with their marketing. Below are campaigns and events that we have done over the years:
OCM's campaigns: F&B Marketing Ideas by OCM
OCM's Events: F&B Industry events by or with OCM
Check out this restaurant marketing guide to learn more about the many campaigns and companies we have worked with.
Since then, we have also created many marketing workshops and classes for the F&B industry. Many of these modules are still running in tertiary institutions such as Temasek Polytechnic Skillsfuture Academy and also ITE College East COC classes, below are some snippets of our lectures and workshops:
OCM’s F&B workshops: Food and Beverage Marketing Lectures | Workshops - click to watch classes on customer journey map, JTBD and more.
So, if you are looking for industry practitioners to help you scale your coffee or F&B businesses, do drop us a message or book an appointment. Do also check out our various social media platforms on regular F&B and coffee market updates:
For regular coffee (F&B) related videos: OCM Youtube
For Daily Coffee Inspiration (fun coffee content): OCM IG
For insights into the coffee (F&B) industry: OCM LinkedIN
PS: For the coffee lovers, we continue to share coffee articles (and videos) and have also started a free coffee class section (with free online coffee training supported by coffee partners).