How much can I earn?
The café industry is popular, with more and more players are entering the market. Larger chains are constantly attempting to increase their market share. In addition, Starbucks, Pret a Manger and Aroma coffee shops have nearly half of the market between them and close to 400 outlets in the UK alone.
In theory, if you’re offering something different in price, service and reputation to the competition, you will make money. Steve Nottage, owner of Coffee Potshop in West Hampstead, says: “It is a very profitable business. Just look at the major players such as Pret a Manger, Costa and the rest who are all doing exceptionally well but even they are located next to each other. There is a lot of trade and so they share the benefits as well as leaving enough room for smaller outlets.”
However, be realistic and remember that profit – even in a booming industry such as leisure – isn’t guaranteed at any level. John Mckiernan, owner of Moonbow Jakes coffee shop in London, warns:
“The downside is that in certain locations the bigger players are running the small shops at a loss. But people will always need to eat and drink, so if the location is suitable you will make money.”