Nov
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5 Must-Know Facts If You Want to Build a Successful Coffee Shop or Cafe

Posted on October 19, 2017 by Ash Bennett

Are you planning on opening your own coffee shop and want to do everything in your power to ensure it is a success, or do you already run a cafe and want to improve your annual revenues? Optimizing your restaurant business for success takes effort and a willingness to be analytical in your approach to growth. Consider the following five facts if you want to build a cafe brimming with opportunities.

Competition Analysis is Critical

If you want to build a successful business in the food services industry, competition analysis is absolutely critical. Without a clear understanding of what is and is not working for your competitors, you can’t expect significant growth for your company. Analyze everything from their menu to their restaurant theme and staff attentiveness. Only when you know what customers respond to, will you be able to put your sleuthing to work for your coffee shop/cafe.

Pick the Right Vibe

Speaking of restaurant themes, choosing the right vibe for your shop is another crucial element of building a thriving restaurant. Are you trying to attract a college crowd with a fun and lively environment? Do you want to build a business frequented by entrepreneurs and remote workers who appreciate a quiet environment to work in? Once you understand who your target market is (think spending ability for maximum profit), you can then create a cafe that projects the right vibe to your clientele.

Nail Your Outreach Strategy

Customer outreach will make or break your coffee shop. You won’t build a profitable restaurant if consumers don’t know you exist. Create a detailed customer acquisition strategy if you want to own a coffee shop with significant growth potential. Understand where local audiences hang out online. Develop a plan for attracting tourists. Decide whether corporate catering will be part of your growth strategy. Optimize visual marketing tools like Instagram and Snapchat to entice local customers. The more detailed and specific your customer acquisition strategy, the better your chances are of driving revenues on an ongoing basis.

Trend Analysis

Trend analysis is a brand-building tool far too few coffee shop owners use to their benefit. When you pay attention to what is happening in global coffee markets, you have a clearer understanding of how to use that data to your benefit. Are coffee shares spiking in a specific market? Is there a hot beverage gaining steam on social networking sites like Pinterest? Use tools like Google Trends or Buzzsumo to uncover coffee and/or marketing opportunities before other shops in your area even know they exist. Cafe owners who make trend analysis part of their growth strategy are able to spot trends far in advance of their competitors.

 

Food Service Plan

Coffee shops with a cohesive food services plan do better than those who focus solely on coffee. Restaurateurs who understand the potential of add-on food items and can use their knowledge to drive sales will out-perform owners who don’t have food service experience. Knowing everything from food costs to portion control can impact your coffee shop’s revenues. Offer food items that are easy to produce, have a lower food cost, and are likely to encourage repeat buyers if you want a recipe for success. (This is when knowing what your competitors offer comes in handy.)

Building a profitable coffee shop is made easier when you are strategic about your growth plans. Incorporate these five business-building tips for cafes into your plans and your chances of significant sales drastically increase. What are your thoughts? Are there any tricks of the trade that have worked especially well for your cafe?