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The phrase “location, location, location” doesn’t just apply to residential real estate, it can make all the difference in your coffee shop startup achieving its full potential. We’re here to help you get through the selection process smoother and smarter. In this guide, we’ll talk about key factors to consider, so you can make a well-informed decision on a coffee shop location that positions you for success.
While coffee is universally loved (at least by about 3 out of 4 people) that doesn’t necessarily mean you can plop down your operations on any old street corner. There are plenty of factors that will play into the success you can achieve. For instance, if you’re the only cafe in the radius of some downtown hotels, you’re sure to see a lot of foot traffic just by being searchable, but if you’re in a strip mall in a suburban area, you may have to create buzz around your business in a number of different ways.
Think about who you’d love to be in your coffee shop every day. Is it travelers? College students? Active community members? Once you’ve developed your ideal customer personas, you’ll have to begin researching where they might be. We’re likely going to offer to help a few times throughout this article, but you can always call on the pros if you have further questions about demographics.
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Coffee lovers are always looking out for new places to try, so you want to make sure your coffee shop location is easy to spot. Obviously there are many considerations that come along with putting your name in front of potential customers, but one of the easiest ways is just being where they already are. Take that customer persona we talked about and ask yourself “How are they getting around?” Are they commuting with a car or public transit? Or do they prefer to stay on foot in busy neighborhoods? Wherever they are is where you want to be, especially when it comes to foot traffic.
We recognize that this part can be a bit tricky, as potential customers on foot are almost guaranteed to see your shop, but will they really see it? Having all your ducks in a row when you launch your coffee shop startup is super important, as this is when locals are most likely to notice a change in their environment. Try to have all your signage ready, your decor in place, and be ready to serve up your best cups. Haven’t picked a coffee roaster yet? Check out what we have to offer (hint: it’s all good)!
It's important always to remember you’re not alone in this, and that's both in terms of strategic partnerships and competition. While you can’t always choose your neighbors, you can still do your best to set up shop in the right general area. You of course want to avoid being too close to other coffee shop locations unless you’re after a different demographic, but there are quite a few businesses you could benefit from being around. This list isn’t necessarily exhaustive, but considerations should be made around these categories and more:
Not everyone wants to be a Starbucks with a long drive-through line of cars, but that system definitely works for them. You'll want to make sure your coffee shop is easy to get to for your customers. If they’re driving, a drive-through or pick-up window can be really convenient, as long as it doesn’t change the feel of your place. If so, you'll still want to make sure there’s plenty of parking nearby.
While really any business in the United States should have some level of parking accommodation, the majority of your customers may be pedestrians. ‘Foot traffic’ is the common phrase, but there are of course going to be customers who access your space in different ways, so be sure that you have ADA compliant entryways and adequate space for everyone to comfortably get around and enjoy your shop.
There are quite a few hoops left to jump through even if you have everything we’ve already talked about. Every commercial space will have zoning assigned by the local government, as well as permitting requirements, purchase vs. rental considerations, and a number of other variables that come along with leasing agreements. If this is something you’ve never navigated as a business owner before, we’d recommend sending us a message.
Before committing to a coffee shop location, it's vital to understand the local zoning laws and permitting requirements. Not every space is suitable, as some areas may have restrictions on food service or specific operating hours. Research local regulations to ensure that your desired location is zoned appropriately for a coffee shop. Additionally, obtaining the necessary permits can be time-consuming, so factor this into your timeline when selecting a spot.
At the end of the day, there are many considerations that go into choosing a coffee shop location, on top of every other aspect of running your business. We’re here to make things easier and try to address all the common questions we hear from our blogs. When you’re in search of that personal touch, why not give coffee consulting a try? We’ve worked with hundreds of professionals in every part of the industry and love sharing our secrets!
Reach out today and get the conversation going to make your coffee dreams a reality!
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