Starting your own coffee shop is not very difficult but you have to be ready to put in some work. A lot of planning and investment is needed if you want your new venture to be a success. If you love coffee and you love being with people, this is a business that will give you a lot of rewards.

• How to Starting a Coffee Making Business
• How Much Does a Local Coffee Shop Make?
• How Much Money Can You Make Selling Coffee?
• How Can I Make Money With Coffee?
• How Can I Sell Coffee at Home?
• How Much Can You Make Selling Coffee Online?
• How to Sell Coffee on The Street
• Get Paid to Drink Coffee
• How to Sell Coffee Wholesale
• Is a Mobile Coffee Van a Good Business?
• Is a Coffee Shop a Good Investment?
• Do You Need a License to Sell Coffee Online?
• Is Coffee Farming Profitable?
• How Much Does it Cost to Start a Coffee Stand?
• Can I Make Money Roasting Coffee?
• How Much Profit Can a Coffee Roasting Business Make?
• What Are The Risks of Opening a Coffee Shop?
• What Makes a Coffee Shop Successful?
• What is a Good Profit Margin For a Coffee Shop?
• How Can I Start a Coffee Shop With no Money?

How to Starting a Coffee Making Business

Check Out The Competition

Drive around your local area to evaluate the existing competition. Check out the type of people that are attracted to the local coffee shops. This will help you to determine the type of customers that you will attract. Study what they did and look for ways to improve on their setup. You should also find out how much they charge for coffee and other items and charge less for yours.

Choose A Good Location

The location of your shop is very vital if you want to earn cash with coffee making in your local area. You have to ensure that your coffee shop is located in a place that is easily accessible for a lot of people.

Read Also: How to Start a Boating Business

It could be in a mall, near a college campus or any other place that naturally attracts a crowd. The location should have a drive through as well as foot traffic. Check out the locations in your local area that have high traffic.

Write A Business Plan

A business plan is important whenever you are starting a new business. It will help you to clearly see the steps that you have to take to achieve your goals. It is vital to put your plan together before you proceed. You need to know how much money that is needed and how long it will take before you break even.

Get Necessary Funds

The next step for earning cash with coffee making in your local area is to get startup funds. Calculate the total amount of money that is required to start the business then add another 20%.  It is always better to have more money than you need at the start of your new coffee shop.

There may be one or two items that you did not include in your estimate. Other miscellaneous expenses may also come up. The extra 20% will enable you to meet these demands.

Make your coffee shop as attractive as possible. It should be clean, orderly and neat. It should have a comfortable and inviting atmosphere that will encourage customers to stay for extended periods. This will help you to quickly build a group of loyal customers. Your shop should have a lot of tables and chairs as well as sofas and booths.

You can attract more people by proving incentives such as free wireless Internet access. You can also give discounts to customers who buy several cups of coffee. People will be encouraged to buy more if you give one free cup for every five that is bought. This is what it takes to earn cash with coffee making in your local area.

How Much Does a Local Coffee Shop Make?

How much money you make depends on a great many factors including:

• The number of daily sales.
• The average amount per receipt.
• The number of ongoing return customers.
• Your ability to increase the amount per receipt.
• Your ability to increase the number of sales.
• Your costs.

As a baseline, if you have 100 transactions per day and the average sales receipt is $5, you make $500 per day and about $15,000 each month, assuming you are open every day. In one year, you would bring in $180,000 in gross revenue.

For many shops, sales often double within three to five years. However, you must also account for expenses, including rent, employee salaries, insurance, utilities and supplies to determine your profit.

The key to increasing your profit margin is to increase both sales and gross receipts, as some of your expenses will remain fixed. On average, within the industry, a small to medium-sized coffee shop can earn anywhere from $60,000 to $160,000 in personal income for the shop owner.

How Much Money Can You Make Selling Coffee?

According to Google, you will make 10%-50% of what a stand-alone coffee shop will make when owning a coffee shop kiosk. They estimate a take away of $500-$5,000 a day depending on the location and number of customers. This is of course, without factoring in taxes, labor, costs of the products, etc.

The average franchise owner will take home $66,000 a year. Again, like it’s mentioned before, this can increase depending on factors such as location and the specific coffee shop brand you’re franchising. The top 7% of franchise owners bring home $250,000 annually and of course, this can increase depending on the success of your shop.

Stand-alone shops can take the most money to open but reap all the benefits you’ve probably thought of during your research to own your own shop. If you’re going for a small but steady coffee shop, you’re looking at making $5,000 – $20,000 a month.  If you own a larger sized shop and have a steady stream of customers than those numbers are bound to increase.

You need to remember that profits are not simply the money that you make from your sales receipts. You have to account for all of the expenses that it takes to run your business. You’ll be paying on a lease or a mortgage, you’ll be paying employees in some cases, you’ll be ordering supplies all the time, you’ll have taxes that are due, as well as, many other costs that people tend to forget about.

How Can I Make Money With Coffee?

Here are some low-cost ideas to consider for your coffee business.

1. Sell Coffee Online

An online business model that’s flexible and can be easily scaled. You can start by selling regular or specialty coffee and build your business from there. It isn’t necessary to have a large array of offerings. You can choose to stay focused and solution-oriented.

An excellent example here is CoffeeBlenders. They have an interesting set of options at the online store, including pour over packs and pouches. There isn’t a huge set of options here. Instead, you get solution-oriented picks.

One of the most interesting options to see here are pour over pouches. They make an interesting mix of specialty coffee that can be used instantly and are portable. Why bother with instant coffee when you can take along high-quality coffee and have it ready instantly?

Lessons to be learned here are looking at quality and ensuring you pick the right set. Your store isn’t supposed to compete with Folgers (well, maybe one day!). It’s supposed to get you a good start.

2. Start A Coffee Blog Or Coffee Gear Review Website

Share your knowledge of coffee with the world and use it as a way to earn yourself a tidy income. You can be specific and share your coffee recipes, or take on a wider approach and be a purveyor of information in the coffee niche.

Take a look at Caffeine Insider, and notice the comprehensive information available. The website shares tips, information, recommendations for coffee beans and K-cups, reviews on coffee makers, and more.

As a coffee lover, you’ve probably used several brands of coffee and sampled a good range of gourmet coffee as well. Share your impressions and ideas with the world. You can also help your readers pick the coffee they should try and provide them ideas on how to go about it.

Setting up a website requires investment in a domain name and hosting. Be sure to pick a reliable service! The technical aspects can be fairly affordable, especially for those starting out. The biggest investment here is going to be your time.

Prepare regular updates for your readers and provide them with detailed and useful content. If you’re looking for more inspiration, take a look at other coffee websites like RoastyCoffee, CoffeeMinister, Espresso Coffee Guide and more.

3. Start A Coffee Cart

Does your talent lie in brewing a stunning cup of coffee?

Well, a coffee cart can be a great choice. It is mobile and a low-cost idea compared to starting your own coffee shop. Before you start a coffee cart, do your research, and know your customers. Many customers just want a quick cup of coffee. They don’t care if it’s gourmet or simple coffee, they’d prefer a quick cup of coffee, please.

Gourmet coffee is more expensive and is likely to have fewer takers at a coffee cart. Of course, if your research says that the customers will be just as happy with gourmet coffee, listen to the customers!

Before you embark on a coffee cart business, take a good look at local regulations. You might need a permit and ensure compliance with local food laws. These can vary from place-to-place, so being in tune with local laws is necessary.

4. Roast And Sell Coffee Beans

There is an ever-increasing demand for artisanal coffee roasters. If you know your way around coffee roasting, this can be an immensely lucrative business. It is convenient and remarkably easy to buy unroasted green beans. It’s all up to your skills from there.

Buying beans and roasting them isn’t necessarily an expensive exercise, especially for a small operation. But, your skill comes in handy. Know your customers. Get the coffee to the right roast, make blends, and deliver coffee that your customers can love. Maybe even surprise them with something new!

This business can be run online or offline. You could even run a coffee subscription box online, which is a very popular method with coffee lovers. Additionally, it ensures a steady stream of revenue for your business. A similar approach can be taken offline where your patrons buy coffee directly from you.

5. Get Into Coffee Dropshipping Business

Dropshipping is a very lucrative method for an online business. It is necessarily an online store, but there is a small change that sets it apart from a conventional business. You (the seller) don’t maintain an active inventory or ship orders to consumers. Instead, you work with a manufacturer/roaster.

You forward the orders you receive to this supplier and they ship it directly to the customer. Look for a “white label” service. This essentially means that the supplier won’t plaster their own brand over the product. They will put the logo or packaging for your business over the product.

6. Sell Coffee Equipment And Trinkets

An online coffee-related business doesn’t necessarily have to be all about selling coffee. Instead, you can sell coffee-related equipment and some trinkets. Examples of equipment can be filters, reusable filters, French press, etc. As a coffee lover, you know the list is practically endless.

Similarly, coffee-related trinkets like keychains, bookmarks, mugs, phone cases, etc. These are often in demand and can be a lovely addition to any online shop.

You can be a conventional seller or use a dropshipping model to achieve this business.

7. Start A Coffee Podcast

Not everyone has the inclination or time to read a website to keep up with information on coffee. In such cases, a podcast can be immensely useful. Many people prefer to keep up with their interests through podcasts.

Share your knowledge of coffee brewing, equipment, and current trends through a podcast. The topic you choose should showcase your knowledge, listener interest, and have a touch of entertainment to keep your listeners coming back for more!

How Can I Sell Coffee at Home?

Sell Coffee Online Business Plan: Build

If you really want to learn how to sell coffee online, then you need to build an audience.

The problem with most ecommerce marketing advice is that it relies on paid advertising to launch a business. However, the early stages of a coffee brand are also the most volatile. You just don’t have the volume or SKUs you need to really do paid ads correctly.

Instead, I suggest you spend 6+ months making coffee content.

This can be done on Youtube, TikTok, Instagram, Snapchat, or even a blog. For example, you could start a blog that reviewed the best coffee and coffee related materials out there. You can also do a TikTok where you use coffee as your “shtick” when it comes to jokes and dances.

Either way, you want to build this organically.

Then 2 months before you officially launch your coffee brand, you want to send people to an email opt-in form so they can sign up for your newsletter. This is the pre-launch newsletter that you’re going to use in the next step.

Sell Coffee Online Business Plan: Launch

It’s launch time.

Triple check you’ve got all the inventory you need, your Shopify store is officially up, you’ve got your shipping materials ready to go, and everything is working correctly. If so, you’re officially ready to start making some sales.

This is where all of your hard work comes to fruition.

To launch your coffee brand, you just need to let your audience know about it. This primarily means sending 3-5 emails to your pre-launch email list. In addition to this, you should also promote it in whatever organic marketing channel you chose such as Youtube or a blog. And finally, let all of your friends and family know too.

If you have a big enough audience, you should be able to sell all of your units.

Before you buy your next batch of coffee though, I would go with the mindset of having 2-3 mini-launches. This way, you can slowly and calmly make sure the economics behind your coffee is still profitable and that people are enjoying your coffee.

The 3rd mini-launch should be the official and permanent launch.

Sell Coffee Online Business Plan: Scale

Assuming everything goes well, the rest is just scaling.

First, keep doing what’s already working. So keep producing content to build up your audience and your email newsletter. Even during the scaling phase, it’ll form the foundation of your brand.

From there, you have 3 other primary choices.

Advertising
Amazon
Retail

We’ll worry about Amazon a little later. But the you should immediately think about running ads to sell more coffee. The key here is to understand that you need to leverage your current customer list to make profitable LLAs on Facebook and to understand that your numbers need to work.

To make your numbers work, you want to sell bundles and subscriptions.

So don’t sell individual coffee bags with ads. Instead, always try to sell a package of 2-3 bags to immediately increase your AOV. Later, you want to use email marketing to then turn those customers into paying monthly subscribers. 

If you can figure paid ads out, then you’ll have plenty of data for retail.

With retail, you need to prove that you have a good selling product before they’ll let you put in on their shelves. So leverage all of the customer data you’re getting from Facebook ads and your audience building efforts to get wholesale deals.

Considering wholesale is where most food & beverage brands scale, this will be key for you.

How Much Can You Make Selling Coffee Online?

Selling coffee online can be very profitable with the right marketing plan and a strong brand. Coffee is a widely available product with a lot of competition, but don’t let that scare you away from the industry.

Consider the advantages of a high-commodity product like coffee:

• A high volume of customers. Coffee is one of the most widely drunk beverages in the world, meaning even with existing coffee brands, there’s an abundance of potential customers.
• Small-brand advantage. Typically customers associate larger brands with higher quality and better service, but commodity products like coffee are different. Customers are more tuned into branding cues, giving an advantage to smaller brands. 
• Niching opportunities. Since coffee relies on branding cues, there’s a lot of room for creativity with regards to niching. Niching involves selling to a very small but very specific group of people.

Selling a product that’s widely available has advantages. In many ways, a widely available product is easier to sell. Your customers already want your product, you just have to make them want it from you.

How to Sell Coffee on The Street

1. Do lots and lots of research

The very first tip for selling coffee in the streets and succeeding at it is to carry out thorough research on that subject area. You need to find out as much information as you can before you start so as to know what to expect.

You will need to know what to sell, where to sell, how to sell it and much more! There are a lot of resources on the internet that can help (this articles being one of them). In addition, you may also want to speak to some experts face to face for more information.

2. Have a Support System in place

When you need answers to pertinent questions or when you need reassurance that you are doing the right thing, or when you need the confidence and support to make required changes, a support system will be of great benefit. You might know someone else who has done it and therefore you can tap them up for information. This kind of person can be a mentor to you and help you to improve your business.

3. Have lots of Determination

There’s no doubting that in order to succeed in this industry you need to have a lot of determination to keep on going when the going gets tough. It’s not an easy trade, especially in the depths of winter when you have to go out and trade in the cold weather when you’d rather be at home or in an office in the warm. This can spell the difference between a successful coffee business and one that is doomed to fail.

4. Pricing

When you are just starting your business of selling coffee on the streets, you may be confused on how to price your beverages. Obviously, it will depend on what you are selling and the location of your business. Food and drink often costs a lot more at shows and events than it does on a roadside, but then you will probably have to pay more in fees at a show.

5. Insurance

It is very important to be backed by insurance and you should not even operate your coffee business without this. Not only is it a legal requirement, it’s not expensive and will cover you against accidents and food poisoning.

6. Find out the Legal Requirements in your area

The legal requirements of a coffee cart business often vary by city, county and state and you can learn about the ones that apply in your area by contacting your local Health Department or the Department of Environmental Services.

At this stage, you’ll address issues such as:

• The street vending regulations in your city;
• The types of products you’ll be selling and how they’re handled, stored, and prepared;
• Commissary requirements (the requirement to operate from a licensed commercial kitchen)
• The size and the equipment of the coffee vending cart;
• The cart’s fresh water and waste water holding capacity;
• Safe food handling course requirement;
• Hygiene policies;
• Pre-approval inspection of the equipment.

A lot of municipalities require street food vendors to use a commissary – a licensed and inspected commercial kitchen. Vendors have to report to the commissary each day of operation to prepare the products that will be served from the cart and to clean the cart’s equipment at the end of the shift. However, since you’ll be selling coffee-based drinks, you’ll have to find out if this requirement applies in your case.

When you are done with the legal requirements of this business, you’ll have to research coffee cart makes and models, and decide which one suits your purpose – and your municipality’s regulations – best.

Whether you’re considering purchasing a new coffee cart or a second-hand one, you have to keep in mind that the cart and its equipment are a one-time investment and their quality really matters.

So don’t settle for cheap, unverified options, and do your due diligence before making a final decision. In the case you’re looking for something too specific, there’s also the option of having a custom coffee cart made just for you.

7. Location

In order to succeed in selling coffee in the street, you will need to be in certain places where you are most likely to make consistent sale. Since your coffee business is mobile, you might even test each one of them to see which is the most profitable option.

Generally speaking, coffee carts perform best in:

Business parks, Industrial estates, University campuses, Touristic locations, Stadiums and sport centers, Farmers markets, Outdoor events, Outdoor concerts, Car boot sales, Parking lots et al. You should also consider proximity to a commissary (if required), the right ratio of competitors, close-by amenities and accessibility.

8. Know your Competition

Being knowledgeable about your competitors is a vital element to your coffee cart/ truck success. So start checking things out early:

What are your competitors doing right that is worth emulating and improving on? What are they doing wrong that you can capitalize on as a competitive advantage? What could they improve on? Where are their customers coming from? What do their customers buy the most?

As much as customers will appreciate a cheap cup of coffee, they will also want to get it at a convenient location and will also consider the quality of service, and menu.

By finding the most important needs in your market and coming up with the best way to meet them, you will be able to stand out from the crowd and dominate your competition. However, be prepared to invest time and do some deliberate planning.

9. Menu and Pricing

Your coffee cart menu is very important: it will determine your equipment requirements, the amount of repeat business and how you’ll fare in relation to your competitors. It’s an integral part of your business that you can use to differentiate yourself from your competitors, so it’s well worth it to really think about what you plan on serving.

You can start by simply writing everything down – from the beverages you’ll serve, to the ingredients that you will use and the additional goods you’ll sell. Then ask yourself:

• What will you serve that others don’t?
• What will your signature drink be?
• What will your signature snack or food offering be?
• Why will your customers choose you over Starbucks or other established brands?
• What menu options can you provide that will make your customers come back?

As someone who is selling coffee on the streets, your aim should be to make a profit as quickly as possible. This is where quality and pricing come in. Serve high-quality coffee that you’ll price depending on your suppliers, competition, and running costs.

10. Suppliers

When you have worked out your menu, you will know exactly what you will need to serve your customers. Your suppliers play an important role in your business: where will you get your coffee from? How about your snacks?

Aside from coffee and snacks, your lids, straws, napkins, plates, and cups are among the biggest costs for any coffee business. Getting the right suppliers lined up will greatly benefit your pricing policy, your profit margin, and will increase your chances for repeat business.

11. Define Your Marketing Strategy and Sales Strategy

Starting your coffee business with a well-planned marketing campaign will help you streamline your efforts, saving you a lot of time and money in the long run. For instance, you can;

• Throw an opening party to let locals know you’re open for business
• Engage in community events to sell your products
• Advertise your products in community based newspapers, local TV and radio stations
• List your business and products on yellow pages ads
• Leverage the power of internet and social media
• Engage in direct marketing and sales
• Encourage the use of Word-of-Mouth marketing.

12. Build a strong brand

Your branding, messaging and visual identity can make or break your marketing efforts and as such, it is very important that you do it right.

A strong name, a good logo and a high quality, smart and well-designed coffee cart or truck are great foundations to launch your business on. The aim of your branding is to have customers remember you, and to associate you with the things that set you apart from the competition.

That means maintaining a clear focus, and consistent message across all your marketing, whether in person on your stand, in printed marketing materials, or online.

13. Have a stellar customer service

A good marketing strategy should include treating your customers right. If you’re running a coffee cart or truck business, then there’s a huge probability that you will be the one serving customers, (at least when you are just starting the business). It is very crucial that you be courteous and friendly as this will go a long way to helping you build repeat business.

You should strive to make your business different from big, faceless brands by providing a friendly, memorable experience that customers want to repeat.

Simple things like a friendly smile, a sincere greeting and a polite thank you will pay dividends. Take an interest in your regular customers, ask questions and create a community feel around your coffee cart will have them coming back time and time again.

14. Reward repeat patronage

The main reason why major coffee brands run customer loyalty card scheme is because they actually work. Loyalty cards are a fantastic, cost-effective way to build your customer-base.

In addition to incentivizing repeat business, the card itself acts as a reminder about your brand (you can add your website and social media handles to the other side of the card) thus helping to keep your cart fresh in the minds of customers.

15. Increase your presence on social media

Social media marketing has come to be a very important aspect of business and marketing today. Engaging with your customers via Facebook, Twitter and Instagram is quick, free and easy – and you can do it whilst you work via your smartphone. The fast-paced nature of the coffee cart and truck industry makes having an equally responsive, up-to-date social media presence of high importance.

To make more money for your coffee cart/truck through social media marketing, you will need to get creative. There’s plenty of opportunity to create fantastic content that customers want to share. Something as simple as a picture of an enticing, perfectly crafted coffee on a cold winter’s morning, and letting customers know you’re in their area could be enough to drive them to your cart.

Don’t just position your business physically; you should also position it well in the cyber space.

16. Offer free samples

Free samples of an exciting new coffee, complimentary biscuits with every drink, or giving away promotional items work – it’s a proven way to build a following, and one of the simplest and easiest ways to attract crowds of customers to your cart.

17. Have a plan on how to get the best position

Location is vital to any coffee cart/ truck business, and making sure that you get prime spots at busy local events and markets will help to increase footfall and drive sales. The secret here is to get organized, and to plan ahead. Take a look online and create a calendar of local events you might want to attend.

Contact the organizers of the event as early as you can and start to build relationships. Ask about the layout, and work out where you want to be, so you can secure a good spot. Many events put limits on the number of similar stalls that could attend, so if you get in first, you may have the chance to lock out the competition.

18. Have Coffee contests

Holding free prize draws and coffee contests is a great way of bringing customers back to your cart time and time again. It could be something as simple as a naming competition for your latest seasonal drink.

The prizes need to be worthwhile, but don’t have to be huge. The key here is to make a big deal about the draw or winner’s announcement, and the time, so you can encourage customers to return to your cart.

19. Choose a strategic location

Even though some may over look this, but the truth still remains that choosing a strategic mobile coffee cart location is considerably the most important aspect to the success of your business. You need to pick a place where a lot of people are going to be.

You can’t just rely on friends and family member to buy what you sell. Even when you have return customers, a lot of your sales will still come from people who have never purchased coffee from your truck. That is why it’s so important to pick a destination that is flocking with people. If you didn’t take this into account, then it might be why your coffee cart/ truck business is failing.

There’s adequate customer traffic at public spaces like the office, malls, dry cleaners, service stations, hospital lobbies, and supermarkets. You can also opt to have your cart inside hospitals and government buildings – since these two are prime and stable locations for people who need coffee.

20. Obey the Law

A very important tip for selling coffee on the streets is to obey the law in all you do. If you are not allowed to park in a specific location — even if it seems like it is the best location — you simply can’t park your coffee truck there. This is just common sense.

Every city has its own rules and regulation governing where food and coffee trucks can and cannot conduct business from. For instance, in Kansas City, food and coffee trucks can’t park within 50 feet of any type of restaurant.

They also have to maintain a three-foot passageway for pedestrians. In Los Angeles, you must have a trash can outside your truck and it needs to be clearly marked as a trash can and have a sign attached that requests customers to dump their trash in the receptacle.

There are lot more rules guiding food and coffee trucks and it is up to you to know these rules so that you do not contravene any of them. You can Google your city and food and coffee truck laws to get a full rundown of the do’s and don’ts.

21. Secure the necessary permits, such as tax and food handlers

You wouldn’t want to get into trouble with the law once your coffee cart business begins to boom. In starting any business, there are various permits you must first secure and register.

Ensure that you’ll meet the standards for any health-related permits considering this might affect the reputation and sales of your coffee cart business. The same thing applies for coffee catering, since you’re serving tens and dozens of people all at the same time.

22. Have a business plan

The success of your coffee cart endeavor relies on a strong, solid foundation in the form of a concrete business plan. It is important to determine your set goals, financial forecasts, expected obstacles, and business funding so you’ll know the direction in which you want your business to take.

Document your initial start-up costs (supplies cost and machine fee) along with constant costs (disposable supplies and monthly rent) so you can determine if you’re making profit in the long run.

In addition, when setting goals for your coffee business, make sure that the goals are attainable, concrete and measurable. Don’t delude yourself by setting goals that are impossible to attain. Start small and go steady.

23. Protect your supplies

After determining what type of coffee drink you intend to serve and which space is more conducive for sales, it’s time to purchase your supplies. Have a storage ready to protect these supplies from damage and spoiling. There are a variety of coffee cart stands and kiosks available in the market, choose one that will bring more advantage to you and your potential sales.

24. Proximity to competition

If you have to park you coffee cart /truck in a location where other coffee carts are, you should not park your cart too close to another cart. Give your cart a fighting chance and park some distance away

25. Keep your surroundings clean

This may seem obvious but some people may forget to check the nooks and crannies of their cart or truck for dirt. This can be a big turn-off for clients who notice it. In addition, you should make sure to clean out and sweep the spot where you park your cart because a clean surrounding will always look more inviting than a dirty one.

Get Paid to Drink Coffee

You really can get paid to drink coffee with these top eight methods. And you might be surprised to learn just how easy it might be to make money for drinking coffee.

1. Become a Coffee Review Blogger

Starting your own blog means you have control over the content you want to publish on your site. That means you could start a coffee review blog and blog specifically about all the coffee you taste and the other coffee products available.

Blogging is used as an online platform for information. Bloggers blog about their experiences. With your coffee reviews, you can write about your experiences with different coffee brands, coffee shops, and other companies in the coffee industry.

You can make money with affiliate marketing for the purchases made through your reviews.

2. Get a Coffee Taster Job

There are companies out there that pay members to review products, including coffee, coffee makers, travel mugs, and more. Companies like Pinecone Research and Opinion Outpost offer product testing opportunities.

There is no guarantee that a coffee taster job will be available. However, you can sign up with product review companies to watch for relevant opportunities to come up.

Testing and reviewing products that you already need or use is one of the oldest free money hacks in the book. If you’re just feeling opportunistic and want to earn a few dollars for drinking your daily cup of joe, a coffee taster job from home is likely your best option.

3. Become a Coffee Influencer on Instagram

Build a following on Instagram and become a coffee influencer. This is similar to blogging, but without having to maintain your own website. If you already share your favorite coffee brands on Instagram (but don’t get paid for it yet), then it’s a great way to start making money for doing almost nothing.

Share pictures of you visiting new coffee shops, making coffee, buying coffee, etc. Write detailed descriptions about those pictures and make sure to tag the companies you are referring to in your post to generate more views.

Additionally, you’ll need to get brand sponsorships. Instagram doesn’t allow you to link out to affiliates in your posts.

4. Start a YouTube Channel for Coffee Lovers

Make your coffee reviews even more exciting by doing them on camera. Share the videos you make of those reviews on your YouTube channel. Monetize your reviews with ads, affiliate links, or paid sponsorships.

5. Become a Traveling Coffee Salesman

Reach out and partner with various coffee brands. Meet with different businesses to sell them the coffee in bulk. Offer coffee tastings to places like hotels, corporate offices, and even some small business offices in your area. Earn a commission for each sale you close.

6. Become a Barista

Check with your local coffee shops to see if they are in need of a barista. You can get paid to drink coffee and serve it to customers. As a barista, you can ask your employer if you can mix and taste test new flavors before serving adding them to the menu.

7. Become a Food and Coffee Photographer

Thousands of businesses sell coffee and sides, but one of the biggest struggles small brands have is sharing consistent, eye-popping photography of their offers. You can get paid to take pictures of local coffee shops or ask online coffee brands to send you coffee for you to photograph from your home.

8. Invent New Coffee Flavors

As a coffee connoisseur, you could spend time inventing new flavors full time. You can become an employee for a large coffee company or work independently and consult with local coffee shops to help them create delicious flavors.

How to Sell Coffee Wholesale

For a coffee lover, becoming a coffee distributor can be the ideal marriage of business and pleasure. No matter your target demographic, it’s important to become knowledgeable in the production and types of coffee from various regions of the world.

Your knowledge of coffee, in addition to your ability to procure different varieties, will make you a helpful resource to area restaurants, stores and gourmands.

1. Taste different types of coffee. Hold a tasting in your shop or with your friends and family and find out which coffee you like the most. You will be better able to sell coffee that you like to drink.

2. Contact the makers of the brand(s) of coffee you want to distribute. Find out if they have a specific distribution program or if you can purchase their coffee wholesale and sell it on your own. Make sure you understand what the minimum orders are and any other fees and costs for which you will be responsible.

3. Market your coffee to area stores, restaurants and other retailers. Take samples and different varieties. Be prepared to talk coffee to your potential clients. Make sure you try all of the varieties you sell so you can give honest information about it. Leave samples for restaurants and store owners to try for themselves and offer to customers.

4. Take orders from your clients and place the order with the coffee wholesaler with whom you are working.

5. Stay in contact with your clients. Don’t be pesky and bother them all the time for new orders, but make a habit of stopping in every week or so to have coffee and let them know about new discounts or products that come out.

Is a Mobile Coffee Van a Good Business?

Coffee consumption statistics show that 150 million Americans drink coffee every day and that, on average most people drink up to 3.5 cups a day. Plus, the global coffee shop market is presumed to be worth $237.6 billion by 2025.

As a result, it is safe to say that the coffee industry can be very lucrative! But, is a coffee van or truck a good business? In short, yes.

A coffee van can be a highly profitable endeavor. Not only because coffee is the second highest commodity in the world, but also because mobile shops are one of the fastest-growing segments in the restaurant trade.

More so, according to Concession Nation (the food truck industry leader), the average coffee truck that operates five days a week makes 800 to 1,000 sales per day of coffee sales alone — adding up to $6,000-$15,000 per month or $72,000-$180,000 a year in net income.

Nonetheless, note that many determining factors can negatively (or positively) affect these figures, including size, product offering, brand recognition, location, price range, and more.

But, the most determining factor will be the seed capital or initial investment you put towards your coffee van. After all, you need to break even before you can start making profits!

Is a Coffee Shop a Good Investment?

Every year, the average American worker spends about $1,100 at coffee shops or convenience stores. If you’re someone who wants to cash in on our national coffee habit by opening a coffee shop, you must first determine if they are a worthwhile investment for you.

While there are a couple of major coffee chains that dominate the coffee shop market, it’s not impossible for an independently owned or franchised coffee shop to make a solid profit. In fact, coffee shops can be incredibly lucrative businesses, depending on the market in which they reside. However, competition is fierce.

In order to determine if a coffee shop is the right investment for you, you need to first weigh the pros and cons.

Pros

Be your own boss

As with any business, one of the best aspects of owning a coffee shop is the ability to be your own boss. Make your own schedule, stay at work as long as you want, and get involved in every aspect of your business. Doing so will help you not only create a more successful business, but also make you feel invested on every level—not just financially.

Streamlined product offering

Unlike a restaurant or retail shop, you don’t have to have a wide array of foods, a large kitchen, or a giant inventory of goods to sell. All you really need is some good quality coffee, maybe a few pastries, and internet access for your guests. Many coffee drinks use the same ingredients (for example, a cappuccino and a latte are made of the same basic ingredients, just in different proportions).

Solid profit margins

Because of the relatively low cost of your product, and the price people have demonstrated they are willing to pay, it’s likely you will be able to turn a solid profit just by marking up coffee drinks. Compete with large chains by offering slightly less expensive coffee drinks, and keep customers coming back with loyalty cards.

Cons

High startup costs

The estimated costs for starting a coffee business from scratch run from $200,000 to $375,000, and coffee franchises can cost as much as $673,000 for a sit-down coffee shop. Compare this to the cost to open a restaurant, roughly $425,000.

The reason for this can largely be attributed to the price of a good commercial-grade espresso machine, which can cost as much as $13,000. Considering your shop may need more than one of these, you can expect costs to add up quickly. You’ll also need at least one industrial coffee grinder, as well as a roaster (if you want to keep things as pure and authentic as possible).

Competition

As previously mentioned, competition for independently-owned or franchised coffee shops can be rather fierce. Be prepared to fight for loyal customers, have the best location, and make sure your coffee shop has something that makes it stand out.

Maybe your shop makes a special scone or other pastry, or maybe it has the most innovative drinks. Either way, your coffee shop should be worth coming back to, so ask yourself: what would earn my repeat business as a customer?

Knowledge base

Coffee shops, especially independently owned ones, pride themselves on their knowledge of all things coffee. Make sure you’re a coffee connoisseur, latte pro, and bean enthusiast all rolled into one business-savvy package.

Do You Need a License to Sell Coffee Online?

In most cases, you will possibly need a license and/or permits to roast coffee for reselling. This is true even if you can roast from home.

In order to find out, you would need to contact your local health department or other departments related to selling food out of the home.

Some states allow coffee roasting at home for reselling as long as the part of the home where the coffee roasting will take place passes specific inspections.

For example, we’ve read instances where someone could roast coffee from their garage once they met certain criteria.

If roasting from your home is nearly impossible or forbidden in your city/state, then you may want to look into renting a commercial space that is certified and meets all local health department requirements.

Renting a space is costly but doable if you are able to budget it and eventually pay for space from your future coffee sales. You may likely still need a license and permits to do so, even in a commercial setting.

Is Coffee Farming Profitable?

João Moraes is the Director of Global Accounts at Yara, a world-leading crop nutrition company with offices in more than 60 countries around the world. He tells me that as coffee is a perennial crop, it takes time after planting for the field to start being productive.

In most cases, this means that the farmer’s investment starts to pay off after three years or so. Fundamentally, this means it takes years for coffee production to become profitable.

Profitability ranged between 53 percent in 2011 and -2 percent in 2018, whilst the average profit for the eight-year period was a very healthy 24 percent. Any business owner or shareholder receiving a 24 percent average net profit margin over the course of eight years would be very happy.

How Much Does it Cost to Start a Coffee Stand?

Initial costs will vary significantly depending on the coffee shop’s location, size, and equipment needs. Here are some rough estimates:

• A sit-down coffee shop typically costs between $200,000 and $375,000 to set up.
• A large drive-through shop can cost between $80,000 and $200,000.
• A small kiosk may cost between $25,000 and $75,000.
• A franchised sit-down coffee shop can cost up to $673,700.
• A licensed brand-name store may cost $315,000 to open.

That last number is the estimated cost to open a licensed Starbucks store in 2019, according to the company website. Starbucks does not sell franchises to individuals. It does sell licenses to use its products and branding in a store setting.

The importance of location cannot be overstated. A shop on a main drag that gets plenty of foot traffic will vastly out-sell a similar shop tucked away on a side street.

Startup Costs

Understanding the initial costs is the first step in deciding if you can start up a new coffee shop.

In this case, they include equipment such as an espresso machine, which can cost up to $20,000. Many coffee shops roast their own beans. Industrial coffee roasters can cost upwards of $10,000.

Then, depending on what kind of shop you’re opening, you’ll need to head to a restaurant supply store for tables and chairs, a serving counter and a bakery case, and all of the miscellaneous things that go into a fully-outfitted coffee shop.

Fixed Costs

Fixed costs make up the bulk of the monthly expenses of any for-profit company. These include rent, which should not exceed 15% of sales, and staff costs, including salaries, payroll taxes, and benefits.

Note that fixed costs stay constant from month to month, and the retailer must pay them irrespective of the sales for the month.

That said, you need to cover your bottom line each month to pay these expenses.

Variable Costs

Variable costs are proportionate to the products or services a business produces. In this case, costs depend on how many cups of coffee and how much milk and sugar are used, so they can be hard to predict from month to month.

As the owner, you want to increase revenue as much as possible in order to cover those fixed and variable costs. That means promoting multiple sales, preferably of higher profit margin goods.

Fancy coffee drinks are more profitable than plain coffee. Bagged coffee beans are a natural extension of the business. High-quality baked goods and other snacks can bring in more customers more frequently.

Can I Make Money Roasting Coffee?

A coffee roasting business makes money by selling roasted coffee to individuals (retail) and businesses (wholesale).

Retail prices for roasted coffee are often between $12 and $20 for 12-ounce bags. Wholesale prices are often $6 to $12 per pound. The quality of coffee is one of the main factors that determine where within these ranges a roaster’s prices fall. (A few roasters have prices outside of these ranges.)

Lots of roasters offer retail bags in sizes other than 12 ounces, but most roasters use 12-ounce bags as their main retail package. They do this because about 25 percent of green coffee’s weight is lost in the roasting process, so 1 pound of green coffee becomes approximately 12 ounces of roasted coffee.

Prices can be varied based on the reports generated by the POS system. If there is a significant demand for a product, the price may be increased. 

How Much Profit Can a Coffee Roasting Business Make?

A coffee roasting business’s profit potential depends on how many outlets into which it can get its coffee. A roaster that has coffee in lots of retail locations may earn hundreds of thousands of dollars, or more, each year. However, many don’t make quite this much but bring in closer to tens of thousands of dollars annually.

What Are The Risks of Opening a Coffee Shop?

Opening a coffee shop of your own can ultimately be a very rewarding experience. The perks of being your own boss and starting a business of your own are enticing to many would-be entrepreneurs, but make no mistake, there are many risks involved in the process as well.

With the SBA reporting that two-thirds of small businesses fail within their first two years it is important to understand the risk you’re taking on. To fully understand the risks involved with opening a coffee shop, we will explore seven topics as the framework for our discussion. These are some of the biggest risks you will take as an entrepreneur.

• • Choosing a business structure that’s best for you
  • Location and lease agreements
  • Over or under-capitalization
  • Mismanagement of resources
  • Creating the proper guest experience
  • Business strategy
  • Big picture ramifications

Business Structure

Choosing the legal structure of your business will be one of the first risks that you take after deciding to open your coffee shop. This will be a requirement for completing your business plan and there are several to choose from. Whichever one that you choose will ultimately decide how you will approach other risks down the road.

Let’s examine each legal structure and examine how they will direct your approach to risks going forward.

• Sole Proprietorship – One of the riskier ways to structure your business as you and your business will be one in the same entity. You wouldn’t need to register as a business but there will be no separation between your personal debts and liabilities and those of your business.
• Partnership – This is the best option if you choose to open your shop with one or more other people. There are two kinds of partnership; limited partnerships and limited liability partnerships. Each has a different structure for how decisions are made, who is liable for the debt, and how profits are distributed.
• Limited Liability Company – The most common and least risky legal structure for a small business. This allows you to keep your personal assets and debts separate from those of the business keeping you safe from lawsuits against your business and financial repercussions if your business doesn’t make it.
• Corporation – A separate legal entity from its owners, a corporation can do everything that an individual can do, including making a profit, but also can be taxed and held responsible for legal issues. This is the safest legal structure for a high-risk business (your coffee shop probably doesn’t fall into this category), but also comes with stricter reporting and taxes.
• Cooperative – Just as it sounds, a cooperative is a collection of people who not only use the product or service but produce or offer that service themselves. Profits and liability are distributed amongst all members of the coop. This structure could only apply to you if you and a bunch of your friends decided to both open and be the main patrons of your coffee shop. Seems silly, but that could be the case! No judgment.

Starting as a small business your best option with the least amount of risk to you personally is most likely going to be to form an LLC. You will be able to run your business how you like with total control and you will be personally protected from any issues, financial or otherwise, that may affect your business.

Location And Leasing Agreements

Everyone is familiar with the fact that the location that you choose can be a deciding factor in your success or failure. Seems like a simple concept on the surface, but there is some nuance to this topic in its own respect.

For starters, look at the physical building itself. Look at the structure, the plumbing, electrical, and any equipment that may accompany the property. Take some risk out of it and have it professionally inspected to ensure you aren’t renting a money pit or investing in a place that isn’t up to code.

Next, is the proposed location near your target demographic? What is your target demographic? Your target demographic is the “who” in who is going to patronize your coffee shop.

Is there foot traffic, convenient parking, complimentary businesses (such as bakeries or donut shops), and what is the competition like in the area? These are all factors to be considered before finalizing a location.

Now let’s take a look at how you are going to own the location. Few small business owners want to take on the risk of purchasing a building outright. The extra capital required to do that most likely won’t fit into your business plan and getting a loan to purchase a location is all but unattainable for a small business.

Renting makes the most sense from every angle but the terms must be favorable for you whether you are succeeding or struggling. Below is a list of a few items to consider that factor into the risk of leasing.

• Gross vs Modified Gross – Will the landlord be responsible for property expenses or will you share the responsibility.Taxes and Insurance – Are they included in the rent or your separate responsibility.
• Length of Terms and Renewal – How long are the terms of the agreement valid and under what circumstances can you renew them.
• Rate – Is your rent a flat monthly rate or is it a percentage of your sales. Both can be beneficial depending on your business projections.
• Safeguards – Are there safe “outs” written into the terms that release you from liability on the occasion of extreme events.
• Default – At what point will your landlord consider that you have defaulted on your lease terms.

Over or Under-Capitalization

Managing the financial risk associated with opening and operating your coffee shop will be one of the biggest, if not the biggest, tasks that you will have on your plate as a business owner.

Even with all of the planning and steps that you can take to ensure that you have budgeted enough capital, there is still no planning for the unknown; entrepreneurship is fraught with the unknown. Be mindful of your expenses and expenditures. Be frugal with what you have and cognizant of your financial situation at every turn.

Mismanagement of Resources

The prior topic was a great segway into this one. Not only can you mismanage your finances, but really anything else that you have at your disposal in this process. These items will fall into one of two categories: tangible resources and intangible resources.

Tangible resources, simply put, are physical assets. These include things like your building, any equipment that you own, vehicles required for business, computers, point-of-sale systems, supplies, permits, and much more.

Intangible resources are assets that you can’t see or touch and mostly include what is known as intellectual property. To you, this means things such as the recipes you create for coffee drinks, branding, marketing, and even your employees (human capital).

Each item suggests risk in the loss. With tangible resources, we are mostly talking about risking capital, but with intangible it’s more of an existential loss.

Creating the Guest Experience

This starts with how you are intending on getting patrons through the door and ends with how they feel and what they thought after they left.

First, what does your marketing plan look like? What is the image you are putting forth to your target audience? That is a risk in itself as to how you will be received and what your imagery will mean to potential patrons.

Next, how are you going to tailor their experience when they are inside your building. You will have to look at everything from how the flow moves from the front door, through the line, payment, and ultimately how they will leave. Set up the workspace to ensure the efficiency of your baristas.

Give them the tools and space they need to make great drinks and happy guests. How do the mugs, glassware, and to-go cups look and feel? Sounds silly but even these are small risks that you’ll need to take when deciding how you’re going to create your individual identity.

Unless you have unlimited capital to re-concept you are essentially putting all your eggs in one basket on a lot of important and costly things in creating this. How’s that for risk?

Business Strategy

This will be included in your business plan but will be entirely something separate as well. Your business strategy will include your set of values with which you operate your business, your goals, and how they will be measured. Below is a 6-part breakdown by Keap for a successful small business strategy.

• Passion – There is a tough road ahead when you decide to open your shop. You’ll undergo trials and tribulation but what will get you through is your passion for what you’re building.
• Take Time Off – Let’s be clear here, you’re going to work a lot and probably won’t think that you can take a day to yourself. Plan for it and make it happen. Taking time away from your business to focus on your business is important as well.
• Shared Values – Seek out and hire people that share your core values and remove those who don’t. This will be the foundation for building your culture.
• Marketing – Be sure to invest in marketing. As a small business, getting the word out is as important as anything else you’ll do. When times are tough, marketing tends to be the first thing cut from the budget. In actuality, marketing will be the thing that keeps the cash flowing and gets people through the door.
• Email Marketing – Like social media, it’s free. It’s also still one of the easiest ways to reach new and existing patrons.
• Loyalty – Stay focused on your current patrons. They have already come through the door and if they trust you and your product they are likely to continue to frequent your coffee shop. Build relationships and get to know them and their needs.

Staying true to yourself and your business values is a risk in itself. Not saying that there won’t be moments that you’ll need to pivot and adjust, but you risk everything if you aren’t able to operate within your values.

Big Picture Ramifications

Last but not least, let’s talk about everything you risk personally when you leap into starting your coffee shop. You’re risking your financial stability. You won’t have another source of income while you are running a business.

You’re risking your time. The time that you won’t get back. You’re risking your family and friends. The stresses of running a coffee shop and the time required to be successful can and will push some people away.

None of this is meant to deter you but is all calculated risks in achieving your goals and dreams. Take heed. You got this!

What Makes a Coffee Shop Successful?

It may seem obvious, but the foundations of a successful coffee shop business need to be rock solid. The clear vision for the venture that stirred you into action, your deep-rooted passion for service, an excellent understanding of the market, knowing the numbers, all these things will be crucial to support your business during its development stages.

The Metrics

Probably the number one factor leading to success is getting the balance of overheads to the turnover right. Get it wrong? Disaster. Getting it right means you have enough profit to grow and develop. The total cost of rent and rates should be less than 10% of your sales.

Location Location Location

Match what you do to the local community’s needs and your business will flourish. Increasingly people are looking for a ‘third place’ to spend time that’s neither home nor work. Create different zones in your coffee shop as customers drop in for many reasons: whether it’s for work, meetings or just chilling, you need to have a zone that matches.

Consistency

All successful companies need consistency. Too many ‘barista centric’ coffee shops make their drinks in different ways depending on who is on shift, so the customer doesn’t always get their preferred style of drink. No matter how loyal they are, we reckon that it only takes three problems for them to go somewhere else.

Relationships

Building a strong relationship with the local community gives you the advantage over bland big brand neighbours. This is easy to achieve: a good notice board, offering your space for meetings, making friends with clubs and societies, donating to schools and charities all build a relationship with people very quickly.

Innovation

Customers get tired of the same thing; the successful coffee shop will stay relevant in their minds by continual innovation and development of service while remaining true to their inherent values

Keep Relevent

Keep up to date with food, health and nutrition developments but being selective is the key to success. Bringing in too many new initiatives often causes confusion. By following your values and filtering out the fads that are not relevant, you will have a clear proposition that your customers will understand and increase loyalty.

Local Experts

Today’s coffee drinkers are fussy. Through the expansion of the 4th and now 5th wave coffee shops consumers are more open to trying new brew methods and roasting styles. Successful independents are becoming the local experts and adding to the collective knowledge of their consumers, thus steering them away from commodity suppliers.

Lifecycle

There is an unfortunate three-year cycle in the independent coffee shop business: Year 1 honeymoon period; Year 2 reality hits home if the bar is not as profitable as forecast; Year 3 decline and closure. The successful independent will have a very different first three years: Year 1 high growth phase; Year 2 consolidation and solid profit; Year 3 refurb and expansion. A well-executed refit will increase sales and pay for itself in a few months

People

The long-term success of any business is down to the people who work there. Aim to become the best place in town to work as this will make sure you attract and retain the best people. Through a combination of good selection and recruitment, ongoing training and above average reward package, your coffee house will flourish

Marketing

Good marketing (and not just on social media) should be planned and focused on the local community. Getting the names and email addresses of your customers allows you to talk to them regularly and share your story. It’s your duty to shout about what makes your business so special.

Know Your Numbers

Finally, being on top of the numbers by knowing weekly your costs and what profit you have made is non-negotiable. The variance in sales day to day, week to week can be volatile and unpredictable and affected by many things outside your control. Remember: never be caught napping by the espresso machine.

What is a Good Profit Margin For a Coffee Shop?

the product margins in a cafe are high, 65-70% Gross Profit is common (Gross profit is the amount you have left after taking out the cost of ingredients & GST). However Net Profit (the amount left after paying rent, staff & everything else) is often quite modest.

How modest? According to the most recent  ATO industry benchmarks, the average Net Profit for a Cafe in Australia is around 10% of sales.

So it works out like this:

For a middle of the road cafe turning over $500k / year, that leaves the owners with $50k to pay off loans, taxes and then finally take home something themselves.

Not particularly compelling if you’ve just worked a 70 hour week.

How Can I Start a Coffee Shop With no Money?

It’s true that opening any kind of business can be an expensive endeavor. But, with many kinds of businesses, and especially with coffee shop businesses, there are some pretty good ideas for ways to open a business without very much money.

Let’s say that your dream is to have a full-blown café where you serve the tastiest coffee drinks and delicious food to go with them. This kind of coffee shop will cost well into the six-figure range to get started. Nothing wrong with that, you just don’t have that kind of dough.

Read Also: Make Money As An Immigration Consultant

Now let’s take a look at one of the low-cost ways you can start a coffee shop business with little money.

Start an Online Coffee Business

This is probably the cheapest way to start a business. It does cost some money, but not much, according to SmartPassiveIncome.com. The biggest cost to you with an online business will be in terms of time, not money.

All of the same things apply to start an online coffee business when it comes to planning. You still need to have a well-thought-out business plan. You need ideas for marketing your products and services. And you’ll need to provide good customer service, including timeliness, providing for customers’ needs and wants, and competitive pricing.

This isn’t going to be a shop where you hand freshly made coffee over to your customer, obviously. You’ll be selling packaged coffee beans and grounds, and other products that can go along with the coffee. If you’re really creative though, you might be able to start a coffee delivery service online.

Starting your coffee business online is a great way to spend time building a customer base around your products. Basically, you can start popularizing your brand of coffee. Get people excited about your coffee for a while.

Then, when you’re ready to, you can open a physical location. When your customers hear about it, they’re almost certain to want to come experience what they already love about your coffee in a more personal space.

You’ll want to keep your online space too, though. It’s a low-cost piece of your business that you can continue to make money with. Plus, it’s a part of your coffee business that can reach people in a much wider market.

Conclusion

You don’t have to have a ton of money to start a coffee shop of your own. There are some really lucrative low-cost ideas for opening coffee shop businesses.

You can start your business completely online, get yourself a coffee cart, open a mobile coffee shop, piggyback your coffee shop off of another business, or even open a drive-thru coffee stand. And if you don’t have quite enough money for these ideas, there are ways to get the money that you need with little effort.