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5 Reasons Why Coffee Shop Business Fails

Making money running a coffee shop can be challenging. Competition is fierce, supply chains are complex, and the convenience of having your coffee delivered to you in the comfort of your own home is tempting. Despite all these challenges, many people still open coffee shops. Some do it because they love coffee, while others want to have their own business because it keeps them busy during retirement or other down time periods in life. However, if you're thinking about opening a new coffee shop there are five reasons why you should think twice before jumping in. Get all your commercial café equipment from Ekuep! We're your one-stop for all your café needs.

1. A Failure to Prepare

Coffee shop owners that fail to plan, plan to fail. If you're thinking about opening a coffee shop, you should probably know what you're getting into. This means taking time to research the market, understand the competition, look at all aspects of your business plan, and get advice from other coffee shop owners.

A good place to start is by visiting existing coffee shops in your area. Go during non-peak times because this will give you a chance to see how relaxed the shop is during these times. Also spend some time talking with employees and customers so they can give you a realistic expectation of what it's like to run a coffee shop. If you're planning to open a retail location instead of a food truck, it's good to look around and see if the surrounding stores and restaurants within walking distance. The important thing is that you take the time to really get to know your market; otherwise your coffee shop will become just another one on the street.

2. Not Having a Coffee Shop Business Plan

A coffee shop is a business and you need to think like a business owner. To do this, it's important to have a plan for what you'll do and how you'll do it. This will not only help you avoid making mistakes but also save on money and time, as well as allow you to know expectations of your staff and customers.

To get started, take some time to look at other coffee shops in your area. Find out what services they offer, who your competitors are, and what their hours of operation are. You might also want to ask them questions about running a café business so that you can learn from those who have been there longer than yourself. Thoroughly going through the process of running a coffee shop business will help you develop a solid plan for your own.

3. Lack of Willingness to Learn Adapt and Grow

Every business owner has her or his own perception of what constitutes success. Having your own coffee shop may be all you ever dreamed about, but if the business fails it can be devastating. To avoid this, take some time to learn about what is expected of a successful coffee shop owner. If you're not sure how to do this, ask someone who has had success operating a café/restaurant for advice.

To gain insight into what successful coffee shop owners do, it's also a good idea to look at the websites of successful establishments. Take note of how they advertise, attract customers, and even their menus and decor. Now that you have some idea of what the coffee shop business is like, it's time to focus on yourself and your new coffee shop.

4. Not Having a Cohesive Coffee Shop Concept

The concept of your business is what makes it stand out from the competition. For example, if you're opening a coffee shop that serves organic coffee and organic foods, this is your concept. Other examples could be things like having specialty drinks, providing customers with WiFi access, etc.

When developing your coffee shop concept, you need to consider both the interior and exterior of your establishment. It's important to think about how everything will come together because this will make it easier to plan what kinds of décor you'll need for your store as well as help you figure out the location for it. For example, if you're thinking about opening a coffee shop in the downtown area, you might want to get a professional interior designer involved. Also, think about how your clothes will fit into the overall concept of your store. For example, if your clothes are trendy then it may not be a good fit for an establishment that happens to sell shoes and boots.

5. Not Preparing for Your Coffee Shop Rental Lease

The lease is the legal agreement that will outline what you can and can't do inside your coffee shop during your rental period. The length of the lease may depend on the location of your café/restaurant, but it's always a good idea to get one early on. Your ability to customize the interior of your business will also play a role in what kind of space you need for it.

When negotiating with landlords, you'll want to focus on different topics that are important to both of you. For example, what is it that you're willing to pay for rent? Look at other similar locations in your city and see what other coffee shops charge their tenants. You should also look at what kinds of appliances and furniture can be included in a lease.

Another important thing to think about is which amenities make up the key reasons people would want to rent your space. For example, if you're open daily, this means there should be restrooms available. You may also want to include other amenities like children's play areas or other relaxation areas. By doing this, you should be able to get a good idea of what you need for your coffee shop lease and reduce the amount of money you'll have to pay.


Opening a coffee shop is a lot of work. You need to have the right equipment to run it, you need to have all of your furniture and décor ready to go, and you need to have a concept for your business that's unique. However, instead of thinking about all this when you're planning your business, think about these five points when you're planning your business plan. We can help you get started on this project! Get in touch with us today!

Syandita Malakar
Syandita Malakar
Hi guys this is Syandita. I started Business Module Hub to help you all to post updated articles on technologies, gadgets. Although I love to write about travel, food, fashion and so on. I quite love reading the articles of Business Module Hub it always update me about the new technologies and the inventions. Hope you will find Business Module Hub interesting in various way and help you accordingly. Keep blogging and stay connected....!
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