Coffee is the drink of choice for most Americans. According to data trends compiled by the National Coffee Association, 60% of Americans had consumed at least one cup of coffee in the past day, more than any other beverage, including tap water. Because of this, coffee shops are one the fastest growing concepts in the restaurant industry, with a global market expectedto reach$237.6 billion by 2025.
So, investors looking to open a coffee shop will have a large market to draw customers from. But, like any business, there are costs to consider — some you may not have thought of.
Not all coffee shops are created equal
The type of coffee shop you are interested in opening will directly impact the cost. For instance, a coffee truck is less expensive than a drive-thru kiosk, which is less expensive than a sit-down coffee shop. With a sit-down shop, you have the cost of décor and furnishings, which you don’t have to worry about with the other coffee shop models. A large sit-down coffee shop can cost between $200,000 and $375,000 to set up.
Location also plays a role in the cost of running your coffee shop, as rents are more expensive in areas where the residents’ incomes are greater.
What kind of coffee do you want to serve?
The quality of the coffee you serve your customers is another cost you need to consider. If you are operating an upscale coffee shop in a high-end neighborhood, you’ll probably want to spend more on a better-quality coffee bean. You also need to consider whether you want to roast the beans yourself. This will require additional funds to buy a coffee roaster.
Fixed vs. Variable Expenses
The fixed expenses associated with the cost of running a coffee shop are things that don’t change month-to-month. They include rent (or your loan payment, including interest), insurance, utilities, and labor costs (employees’ wages, insurance, and payroll taxes.) You might employ an accountant, or you might partner with a company to handle payroll. You’ll probably need a janitorial service to clean the store on a regular basis.
Variable expenses are directly proportional to the amount of sales you have each month. These include the coffee itself, disposable cups (including lids and sleeves), stirrers, milk and plant-based milks, flavoring syrups and other condiments, bottled water, and any food products you sell.
It’s important you don’t overlook marketing and advertising when calculating the monthly cost of running a coffee shop. Most markets are saturated with coffee shops. If you don’t have a recognizable name and a strong brand, you need something to make you stand out so customers don’t drive by your business and buy their coffee at one of your competitors.
Consider Franchising with Scooter’s Coffee
One of the benefits of franchising with Scooter’s Coffee®, rather than opening your own coffee shop, is being associated with our strong brand. We are known for our kiosk model that provides high-quality products with fast, friendly service. And we provide the marketing support to make sure potential customers in your area are familiar with your location and the products you sell.
We are also able to save you money on those products. We have built our own distribution company, Harvest Roasting. Because we buy supplies in bulk for the entire system, it costs franchisees much less than if they were buying the same items on their own as independent store owners.
Get Started with Scooter’s Coffee Today
If you are interested in becoming a Scooter’s Coffee franchisee, fill out the form to request franchise information today. We’ll answer all your questions about the cost of running a coffee shop and the financing available to help you with those costs. We’re always looking for enthusiastic entrepreneurs to join the Scooter’s Coffee fam
FAQs
LEARN WHAT IT COSTS TO START A SCOOTER'S COFFEE FRANCHISE
At Scooter's Coffee®, our startup costs range between $894,500 and $1,393,000, which includes our $40,000 initial franchise fee. Our franchise qualifications include $250,000 in liquid assets and a net worth of $500,000.
Is scooter coffee a good investment? ›
Scooter's Coffee®, which was ranked a top franchise in Entrepreneur's annual Franchise 500 for 2020, is an amazing opportunity for anyone opening a coffee shop. This ever-growing brand has more than 275 locations across 17 states, including coffeehouses and drive-thru kiosks.
What is the average monthly operating expenses for a coffee shop? ›
The average monthly operating cost for a coffee shop can vary depending on factors such as location, size, and staffing. In general, expenses like rent, utilities, payroll, and inventory can range from $5,000 to $20,000 per month.
How much money do you need to run a coffee shop? ›
Start-up costs typically run from between £20,000 to £100,000 depending on the size, style and location of your coffee shop. Money will need to be spent on rent, rates, refit, furniture and fixtures opens in new window, equipment, staff, food and drinks.
How profitable is owning a coffee shop? ›
The profitability of a coffee shop can vary widely, with an average profit margin ranging from 15% to 25%. Starting a coffee shop involves various expenses, including location, equipment, and permits, with an average opening cost typically ranging from $100,000 to $200,000.
How long does it take to build a scooter coffee shop? ›
Scooters Coffee is a drive-through only cafe built from the ground up. This project took under eight months to complete from start to finish.
How much does a coffee shop franchise owner make? ›
The Profitability of Coffee Franchises
The average annual income for a franchise owner with a business open for 2-10 years is $130,000, according to a survey of 35,000 franchisees across 375 leading brands conducted by Franchise Business Review.
Why is Scooter's coffee so popular? ›
In more than two decades of business, Scooter's Coffee's success is simple: stay committed to the original business principles and company core values. The Scooter's Coffee Brand Promise, often recited to franchisees, customers and employees is: “Amazing People, Amazing Drinks… Amazingly Fast!
How profitable are scooters? ›
Despite these challenges, the electric scooter business offers substantial profit potential, with the e-scooter sharing industry boasting an estimated 30% gross profit margin on scooter rides, as per a report by Joyride.
What should food cost be in a coffee shop? ›
Food Cost Percentage Pricing for Coffee Shops
Ideal beverage and food costs for cafes are typically 15-25% per item, depending on the ingredients. So, food cost percentage pricing involves using this important metric to guide pricing decisions.
On average, small coffee shop owners make between $60,000 and $160,000 a year. The coffee industry generates approximately $70 billion a year in sales nationwide, with coffee selling at higher profit margins than other food products.
How much should a coffee shop make a day? ›
On average, a coffee shop can bring in about $873 in revenue per day, processing around 79 transactions at $11.11 per ticket. However, these figures can vary greatly depending on the specific coffee shop and location. Some coffee shops have a profit margin between 3% and 5%, while others can range from 0% to 15%.
How much money can you make with a small coffee shop? ›
Coffee Shop Owner's Salary
Owners of small to medium-sized coffee shops can make anywhere from $60,000-$160,000 annually . Usually, the owner's salary is between 2% and 6% of the restaurant's sales. In a small operation, your salary may be a higher percentage of the profits, relative to how much labor you put in.
How many people does it take to run a small coffee shop? ›
As a general rule of thumb, you'll need at least one barista to prepare and serve coffee, one cashier to handle transactions, and one or two support staff to assist with cleaning, restocking, and other tasks. You should plan on having at least 3-4 employees for a small coffee shop.
Is selling coffee a profitable business? ›
Selling coffee 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.
How profitable is a scooter business? ›
Despite these challenges, the electric scooter business offers substantial profit potential, with the e-scooter sharing industry boasting an estimated 30% gross profit margin on scooter rides, as per a report by Joyride.
How much does it cost to start an electric scooter company? ›
For a fleet size of 50 scooters, the upfront costs incurred in the first month of operation would total approximately $50,000—this is taking into account the hardware (roughly $650/scooter), insurance, city permits and scooter software.
Is Scooter's coffee privately owned? ›
Scooter's Coffee is a Private company.
Who are Scooter's Coffee competitors? ›
Scooter's Coffee main competitors are Sidwell, Stumptown Coffee Roasters, and Peet's Coffee.
