alanleak started this topic @ 14:09 on 17/12/2003
I am considering opening a coffee shop/cafe bar from scratch (some small business experience but none in retail or catering).
I have researched franchising in great detail and it remains a possibility; however there are some considerable downsides (as well as up), not the least of which is a minimum royalty fee of 8% on turnover - sometimes 10%. Also your hands are very much tied and you pretty well have to operate precisely as the franchisor dictates (not necessarily a bad thing I suppose if you can find the right franchise).
Anyway I wondered if anyone knew where I can source the multitude of information and advice that would be required to set up a catering business such a a cafe bar....yes I've tried google but it's not really that helpful. A 'How to set up a coffee shop from scratch' is available from various American websites but I don't know how relevant that would be for a UK startup...
Any thoughts, hints, suggestions would be greatly appreciated.
Many regards,
alanleak
RE: Starting a coffee shop from scratch
marketeer | 17/12/2003 05:07 PM
Personally I have always seen franchising as almost a final resort. Conducting some market research by speaking to people in the area etc etc will give you a greater feel as to what will be the best way forward.
You need to consider:
Health & Safety Laws (a whole myriad of them!)
Public Liability Insurance and numerous other insurances
Competitors
Planning Permission from the council
Sourcing suppliers
Branding
Marketing
There is a whole lot more you will need to consider too. Try www.bestforbusiness.com for a few tips on various matters.
Also, try speaking to cafe owners in other areas of town and see the issues they faced.
I hope I've been helpful (I'm a little rushed) and I'm sure you've thought of some of this before!
Good luck though!
PS US info can be helpful as long as you understand the differences!
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Marketeer
marketeer@lycos.co.uk
RE: Starting a coffee shop from scratch
emplaw | 17/12/2003 06:29 PM
Marketeer is right about the law and also there are licensing considerations if you want to serve alcohol on the premises as well as a number of food hygiene laws as well as Health and Safety.
I would suggest you start with the premises ( preferably those already in use recently as a coffee shop/cafe bar) and with the planning permission already in place.
Once you have done the figures then email me for a free fact sheet on legal areas to look at.
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Lee Schwartz Lime One Ltd www.limeone.com 01244 852550
RE: Starting a coffee shop from scratch
julesbrad | 18/12/2003 04:54 PM
Hi - cant get Startups forum to email you directly but after reading your post I think you may be interested in :-
www.BottleBar.com
(The investors section gives info which I think you will find interesting)
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www.makemoneyonline-makemoneyonline.co.uk
RE: Starting a coffee shop from scratch
alanleak | 20/12/2003 07:58 PM
Hi,
many thanks for your helpful comments. Still haven't decided which way to go - franchise, new startup, established business...?
I'm feeling uneasy about franchising because I've researched several catering and food franchises over the last 3 months and, for one reason or another, they've all fallen at the final hurdle. Bottom line is that you have to cough up 8-10% of T/O and you don't really own the business - only the licence to operate the business. Also you can't even change the price of a cappuccino without authorisation in triplicate! You catch my drift.
A new start up looks like a logistical nightmare especially without any previous business experience - and time is not really on my side. I think buying an established business is looking like the favourite option though I'm sure this is fraught with potential disaster if one is not extremely careful.
Anyway the question is:
Is it adviseable to appoint some sort of business agent to deal with the intricacies of purchasing an established business - or is it sufficient to let your accountant and solicitor get on with it.
Any advice, as usual, much appreciated. Many regards....
RE: Starting a coffee shop from scratch
youriv | 15/01/2008 09:36 PM
Hi,
We have just launched a new website that should help you out a little. It's called
http://www.howtostartacoffeeshop.co.uk.
You probably already started your coffee shop but it might help others.
Regards,
Youri
RE: Starting a coffee shop from scratch
nick@boomerang | 17/01/2008 03:40 PM
Hi
I’m going to be a real killjoy now and say, if you don’t have any direct experience - don’t start a coffee shop from scratch! Its way too competitive, as well as all the other reasons people have given above.
If you don’t like the idea of a franchise (which I can sort of understand) why not do some part time work at a local coffee shop, or even go the next town, find a local one and offer to work for free.. I guarantee you will learn loads there.
You also mention, that time isn’t on your side – what’s the rush? I set up a business once on what was really an artificial deadline and it didn’t go well..
Understanding the business you are going into is key, as is location of your shop - don’t rush into something as you may regret it for a very long time.
I hope that helps.
RE: Starting a coffee shop from scratch
jim4042 | 01/04/2008 11:15 AM
Hope this helps, went to their show last year and got lots of help, also met other people in my situation. There are no strings attached, just get free tickets to the startup show in london. Check our the site first though.
starting a business - Business Startup. Useful show and advice, and its all free!
Cheers
John