Starting a coffee shop can be quite daunting. Zoning codes, building regulations, health code guidelines, power and water lines, business licenses, and permits are all important ducks that need to be in a row before opening day. With over 30 years of experience, Dilworth is here to help you accomplish all that so you can fling open those shop doors and turn on that neon sign. So read on, good people–we’re spilling the intel on how to make your shop dreams turn into a reality…
A good business plan is a roadmap for your small business, and is a key component that will guide you to success. There is not necessarily a right or wrong plan, but rather one that meets your needs. The key sections of a business plan include: an executive summary, a company description, market analysis, organization and management, service or product line, marketing and sales, funding request, financial projections, and an appendix to list all supporting documents.
This is one of the most important questions you need to ask before taking the leap. How much will it cost? And how much am I willing to spend? The costs will vary depending on location, size, quality and amount of equipment, and kind of coffee shop. A standard coffee shop will range from $80,000 to $300,000. A coffee kiosk will range from $60,000 to $125,000. A coffee food truck will range from $50,000 to $175,000.
There will be many questions during the purchasing process concerning what is needed, and what is preferred, but Dilworth is here to help you answer those questions every step of the way.
Choosing the right location is one of the most critical decisions when opening a coffee shop. It’s not just about securing a space—it’s about finding the right environment that aligns with your target customers, offers visibility, and supports long-term success.
Start by identifying your ideal customer base. Are you catering to commuters, students, or neighborhood locals? Your location should match their habits—high foot traffic areas, bustling downtown districts, or community-focused neighborhoods. Accessibility is key, so consider factors like public transit, walkability, and parking availability. A location with good street visibility can also help attract new customers who happen to pass by.
It’s also important to think about your neighbors. Being near complementary businesses—like bookstores, office spaces, or fitness centers—can help drive traffic to your shop. On the flip side, setting up too close to another coffee shop could mean stiff competition unless you’re targeting a different niche.
Lastly, research local zoning laws and permitting requirements before signing a lease. Not every space is suitable for opening a coffee shop, and navigating these legalities early on can save you from costly setbacks. If you’re unsure where to start, partnering with an experienced coffee consultant (like us!) can help you make informed decisions and set your shop up for success.
Read our blog on How to Pick a Coffee Shop Location!
Opening a coffee shop takes more than just great beans and a solid business plan—it also requires securing the right licenses and permits. Before signing a lease, check that your location is zoned appropriately. If not, you may need to apply for rezoning or a variance permit. Additionally, zoning laws can impact parking, signage, and even building modifications, especially in historic districts.
Once you have your location, you’ll likely need construction permits for any renovations, including electrical, plumbing, or HVAC work. Since building codes change frequently, it’s essential to research compliance requirements or consult an architect or contractor to navigate them. In some cases, an attorney specializing in property law may be helpful.
To legally operate, your coffee shop will need the following to meet health and safety regulations...
Additional permits may include...
Read our blog on What Licenses Do You Need To Open A Coffee Shop!
The layout of your coffee shop is fundamental to the success of your business. Not only will it affect the ambiance and experience of your guests, but it also affects how the baristas will move and create drinks behind the bar. What you don’t want, as a barista, is having to walk back and forth needlessly behind the bar because your essential equipment is spaced too far away. Things should be aligned and installed in such a way where minimal movement is required to take a customer's order and hand them their coffee a few minutes later.
There’s a few different approaches to this, but a common one is placing the POS on a corner of the bar, and then the customer walks down past the espresso machine to pick up their coffee, on the other end of the bar. This makes the distance the barista has to walk minimal, and gives the guest a chance to observe the espresso machine, and even chat to the barista if they’re a regular.
Ultimately, the design should fit the goal of the owner, and enable the barista to make great drinks. Dilworth can help you identify those goals, and the optimal layout for your vision.
When first conceiving a restaurant, coffee shop, or food service operation, the very first thing finalized needs to be the menu. A menu is a blueprint. It will inform every other decision that you make such as: the design, color scheme, furniture, equipment, products, number of staff, skill required of staff, and POS requirements. There’s nothing that the menu does not have influence over, and everything is in service of the items you serve to customers on the menu.
Coffee is always changing. Drink trends come and go. State of the art equipment is being designed and released every year. As a new owner, it’s impossible to keep track of the never ending list of variables a new coffee shop needs to keep an eye out for. That’s where Dilworth comes in. We can help you design and price a menu for your specific area, specific coffee needs, the equipment you’ll need to fulfill the menu, and your specific customers. Ultimately the vision is yours, but you can rely on our expertise to guide you all the way through from conception to opening day.
What should a cup of coffee cost? The answer to this question is relative, and will depend on a number of factors: location, type of coffee, desired food cost, other menu items, and goal of menu item. Generally when pricing a menu, the ideal food cost percentage after every item has been averaged should be 30%.
Food cost is the amount of money spent on ingredients to make food, expressed as a percentage of revenue. Some menu items can be higher or lower than that, but averaged they should be around that number. The lower the food the higher the profit margin will be for you. For example, including dry goods, a 12oz latte costs the operator around $1 to make. If there’s been no wasted product, the operator needs to sell that latte at $3.30 to be at a 30% food cost. You can sell it for whatever makes sense, and whatever a customer will pay for it, but 30% is the goal for profitability.
Of course, other factors affect the price as well. The quality and price of the coffee going in to make the drinks. The average income of the customer in your location. The price of your competitors in your area. Is your shop going to serve food as well? Sometimes you can charge more for certain items that cost less to make, and raise the price on other items to make up for it. Check out our blog How Profitable Are Coffee Shops? (Menu and Pricing Strategies) to learn more.
What kind of coffee should your shop serve? A more important question is how you choose the coffee your coffee shop should serve. The kind of coffee begs the question, what kind of drinks will you serve? For example, if your coffee shop is going to specialize in fun, colorful, flavorful beverages with lots of fancy syrup combinations and garnishes galore, you likely do not want a light and delicate coffee. You will want to use a coffee that is dark and bold that can stand up to and stand out in those very flavorful drinks.
In contrast, if your coffee shop is going to focus strictly on the coffee, then you are going to want a variety of roast profiles, processing methods and so on, to show your customers all the different flavors that coffee can have.
Most coffee shops have a “house” espresso and drip coffee. Coffees that never change and are available at all times. So that customers who desire consistency can have it. Having house blends makes it easy to introduce new coffees for those customers that like the environment of your shop, but desire a different tasting drink whenever they’re there.
The point is: the “right” coffee is relative to your menu and your vision of your coffee shop. Good news is Dilworth can help you identify the vision for your shop, and the right coffees for you! Plus, check out our blog Choosing Coffee For Your Business.
Starting a coffee shop or upgrading your current setup can feel overwhelming, but getting the right equipment is key to making it all come together. At Dilworth Coffee, we make this process easier by guiding you through the important considerations and offering the right tools to meet your goals.
When selecting equipment, think about things like volume—how much coffee you'll be serving—and the layout of your shop. For instance, do you need one or two espresso machines? What kind of brewer will fit your needs? And, if you're planning a drive-thru, you'll need to factor in equipment designed for that environment. It's these kinds of details that can make or break your shop’s efficiency and success.
We can help you figure out the right fit, whether it’s choosing between different espresso machine options, calculating power requirements, or determining how much fridge space you'll need. Plus, our team can help you navigate any licenses or permits that might be required in your area.
Once you've selected the equipment, we’ll also make sure it’s set up properly. Installation, calibration, and maintenance are all part of the process. While other retailers may leave you on your own after checkout, we stay with you every step of the way to ensure everything works exactly as it should. We also help create a regular maintenance schedule to keep everything running smoothly, which is crucial for maintaining the quality of your drinks and minimizing downtime.
Whether you're opening your first coffee shop or adding a drive-thru, Dilworth’s equipment services are here to help you make the right choices for a successful and smooth-running business.
Read our blogs on Helping You Get the Best Coffee Shop Equipment and Picking the Right Commercial Espresso Machine for Your Coffee Shop!
Square, Toast, Touchbistro, Clover, and Lightspeed are a few of many POS systems that a coffee shop owner such as yourself could choose from. Let’s focus on a few major considerations: Cost, User-interface, Features.
Whatever POS system you choose, it must help you achieve the vision you have for your coffee shop.
Running a smooth coffee operation is like a well-practiced magic trick—fluid, effortless, and impressive. But behind that seamless service is intentional training and practice.
Baristas are at the heart of your shop, and proper training ensures they’re not just making drinks quickly but also delivering an exceptional customer experience. Efficiency isn’t just about speed; it’s about accuracy, quality, and reducing unnecessary stress for both staff and customers.
At Dilworth Coffee, we offer customized training programs to help your team master everything from espresso techniques and latte art to scheduling, inventory management, and business planning. We even provide training on how to train your own team—ensuring consistency, confidence, and a well-oiled operation.
Efficiency starts with knowledge, and we’re here to help your newly-opened coffee shop thrive. Let’s make the magic happen together!
Keeping track of products and consumables is a key aspect to operational success in a coffee shop. The first step to successfully managing inventory is nailing down your menu. Your menu will inform whoever is managing your inventory, what products are meant to be there. Once you have a list of products, dry goods, and consumables you’ll need to create a par list. A par list is a list of products, with a minimum quantity number you need to have in stock at any point in time.
For example, your coffee shop uses 16oz plastic cups. Let's create a par of 2 for 16oz plastic cups. You keep one opened box of plastic cups in the front of the house, and you keep two unopened boxes of cups in storage. Every week when inventory is counted, only the cases in storage count towards the par, and you place orders to meet that par. Any opened boxes or cases of products outside of storage do not count towards the par list. This way, you will never run out of any products that are essential to keep the coffee flowing.
Read our blogs How To Buy Bulk Coffee: Order Quantity, Storage & More and Weekly Order Tips From Your Local Coffee Shop Supplier.
So you have a new coffee shop opening, how do you tell the world about it? In 2025, the most effective avenue is social media. In the weeks and months before opening, creating social media pages with a logo and branding will be key to advertising your business. As the build-out of the shop progresses, you should be posting updates of the inside, updates of machines being purchased, updates on menu development, anything at all that could get your future customers excited.
Once your operational setup is complete, start filming your drinks being made. Post fun videos of your espresso machine pulling shots and steaming milk. Show your future customers the kind of quality of drinks they can expect when they come into your shop.
Another important step is getting your businesses Google page up and running. Customers need to be able to Google your business name and post a review. This will do wonders to bring new customers through your doors.
Read our blogs Coffee Shop Marketing Strategies On A Budget and New Year-New Shop Marketing Strategies.
You’re all ready to open, should it be grand or soft? This is really up to you. We recommend having at least 2 or 3 days of “soft opening”. This means only advertising that your shop is open to close friends and family, just to give your staff a feel for how they’ll move around the bar, and how to make drinks to order. In those 2 or 3 days you will learn so much about things you’re missing, ingredients you didn’t order, signs you need to put up and so on.
A grand opening assumes that you have all those details figured out and are ready to rock and roll for 8 hours straight. So if you’re planning a grand opening, be sure your baristas are ready to rock. Amenities could include banners, balloons, music, giveaways, free coffee tastings from the roaster, featured new menu items and more. Whatever you would like to highlight, now's the time.
Our experts here at Dilworth love to help coffee shops with starting up or getting going. We take a holistic view of your business by asking the right question—questions about the coffee, the menu, and the place you want to be. Here's how we can help you turn your dreams into a brick and morter...
There are always challenges that exist in starting and operating a business. Even the most successful businesses must navigate new issues daily. After more than 30 years, we like to think we’ve seen it all and have a deep bench of folks who have managed retail coffee shops for literally decades. Our team of coffee pros is ready to assist you in the journey of opening your coffee shop—let’s talk shop!
