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This site is brought to you by Bellissimo Coffee InfoGroup, the specialty coffee industry’s #1 source for information about starting a coffee or espresso business. The purpose of this site is to provide information and answer general questions about starting a:
There are mountains of gold to be mined out of the coffee shop business; but if you do not educate yourself as to where it might be and how to find it, if you do not understand how to properly dig a mine shaft, if you give up before you hit the vein, you will not be a beneficiary of the wealth that exists. You will either dig in the wrong place, ending up with worthless piles of rocks, have the mine shaft collapse on you, or give up, bitterly proclaiming that, "there weren’t no gold in them hills!" Coffee shop business owners, who are not realizing financial success, cannot blame the viability of this business. If you would like to know more about Bellissimo, Bellissimo’s products, and how Bellissimo’s Consulting Services can help your existing coffee shop business or help you with starting your coffee shop business, please call 541-683-5373 or visit us at www.espresso101.com. To place an order by phone, call our toll free number 1-800-655-3955. Why a Specialty Coffee Shop
Business or Coffee
Drive-Thru?
Friends, business colleagues were all perplexed by the concept. It was as if they envisioned little shacks sporting multiple "Mr. Coffee" drip brewers awaiting the arrival of weary commuters in search of a Cup of Joe. The greatest challenge in getting support for his idea was establishing the viability of the idea itself. Oh, how the times have changed. Today, the specialty coffee industry is one of the most impressive and fastest growing industries in America. Even with the recent downturn of the economy, the specialty coffee business continues its phenomenal growth without missing a beat. The Specialty Coffee Association of America predicts that approximately 5,000 new coffee bars will open every year in the United States. They estimate that this industry will not peak until the year 2015. Starting
a Coffee Shop Business What other business will offer you this? Let’s plan to open a clothing store…with inventory fixtures build out you’re probably looking at an investment of close to $1,000,000 dollars. Once you are open can you compete with the GAP or Banana Republic? In almost every industry or business opportunity I can think of, there are major chains that dominate the landscape. Is there in coffee? No. There is one major coffee shop chain, and we all know who that is…and then there are many smaller coffee shop businesses. The good news is, you can open your own coffee shop business. If you educate yourself and do the right things, you can compete with any coffee shop franchise, chain, or business. Can
You Compete? For example Starbucks (coffee shop chain) has done a wonderful job in their marketing department and the build out of their stores. They have truly opened the market for espresso business in the United States. It’s not bad news that at last count Starbucks has 4,500 stores; it is good news. Without this one large coffee shop chain, educating the consumer with the differences between institutional coffee and specialty or gourmet coffee would be much more difficult. This company has done the industry and the new coffee shop business start up a huge favor by their numbers. Chains and coffee shop franchises have helped independent coffee shop businesses by educating the consumer on coffee products and preparing them to a premium price. Can you compete with a coffee shop franchise? The answer is yes you can. Will you need to do everything right? The answer is again; YES!! I (Bruce Milletto, President of Bellissimo Coffee InfoGroup) have a friend in the Bay area that owns a coffee shop business on one corner and a Starbucks on the opposite corner. On a Saturday last spring, I did a quick head count of the number of people in my friends store…inside and outside sitting at tables there were in excess of 70 people. Out of curiosity I walked twenty steps across the street and went into her main competition; Starbucks. There were 17 customers total!! This owner is extremely savvy, constantly changes her marketing techniques, and thoroughly trains her people, so they make every drink to perfection. She is beating all her coffee shop business competition by being able to make alterations quickly as the market evolves. A small company cannot go toe-to-toe with a big company on price and win alone. Make an adequate profit on each pound or cup of coffee you sell. If you have an excellent product and charge a fair price, your loyal customer base will support your coffee shop business. Don’t assume that your guests know you have quality products. The
First Step...Education and Research There are no such things as plateaus---you are either growing or regressing. Unless you stay in a constant mode of self-improvement and growth, you will be moving in the other direction. You need to take advantage of all the educational resources and embark on a program of improving yourself, and your coffee shop business, on a month-to-month basis. Be prepared to spend $500 to $1,500, and six months to a year to learn all you can about starting and operating a coffee shop business. This will be the wisest investment you’ll ever make.
Buy videotapes about the espresso business and its products. It’s a quick way to absorb an abundance of information, and best of all; it is visual. Our video, Spilling the Beans, will provide you with a complete overview of the specialty coffee industry. You will hear predictions about the future of this industry from highly respected individuals, as well as real — life experiences and advice from those on the front lines: baristas and coffee shop business owners. Our award-winning video, Espresso 101, has become the definitive industry standard to teach people interested in starting a coffee shop business about coffee and the espresso business. Espresso 501 is a perfect companion tape to Espresso 101, and provides a detailed understanding of the variables essential to create a superior espresso beverage experience. To learn about the history of coffee, click here. Financing Very rarely is somebody realistic and sensible enough to say: "I would like to open a coffee cart, and if the concept is good, and if it is profitable, and if I enjoy the industry, then I will plan on opening more operations in the future." Rather than starting out by investing a lot of energy into preplanning your business concept, the first thing you need to determine is, how much money can I pull together? You need to plan in accordance with the total amount of money you will have available to work with. Another factor is that you cannot spend your entire budget on the initial opening; you will need operating capital. If it turns out, as it often does, that your dreams are bigger than your pocketbook, do not give up and get discouraged. If your ultimate goal is to own a nice sit-down coffee shop business, but you do not have enough money to achieve that goal initially, it does not mean that you cannot go into the coffee shop business. What it does mean is that you may have to start with a more modest plan; perhaps with a coffee cart or coffee kiosk. This will give you an opportunity to find out if you like the coffee shop business. Once you learn about the business, and can turn a profit, it will be easier to go back to the bank and say, "This is what I’ve done! Look at how successful I’ve been! Now I would like to borrow money because I want to open a beautiful, sit down coffee shop business!" Have
a good Business Plan In most cases, a coffee shop business plan is created to explain and illustrate the vision you have for your espresso business, and to persuade others to help you achieve that vision. To accomplish this, your plan will need to demonstrate on paper that you have a firm visualization of what your coffee shop business is going to be. It needs to convince others that your business concept can be successful, and that you possess the expertise–alone or collectively–to assure that it will be both successful and profitable. The process of developing your coffee shop business plan will require you to focus on exactly what you are trying to achieve, precisely where you want to be going, and exactly how you plan to get there. It will force you to detail the expenses involved on starting a coffee shop business, the projected sales and monthly expenses of actual operation, and the volume of business you will need to generate to meet your obligations. All of this information will greatly influence your many choices, including the kind of location you will be looking for. For help on how to create the best coffee shop business plan possible, purchase our manual Bean Business Basics. It has a complete overview on how to develop a business plan that will let other people understand the concept you are trying to achieve. Bellissimo's consulting services include writing coffee shop business plans for their clients. Your
Coffee Shop / Espresso Business Location One compelling reason why location is critical in this business is that research in the Seattle area indicates that while people love coffee, they will rarely go more than a block and a half for it. You have to put your business "where the action is," so to speak. Because coffee is primarily a convenience product and an impulse buy, your customers are not likely to go far out of their way to find you. You have to count on high visibility and high numbers of people passing by your location on a daily basis. Do not expect your customers to drive around on one-way streets and go three blocks out of their way to find you. Your coffee shop business needs to be in a convenient location. In our work, we frequently have clients who have been looking for the right location for six months to a year, and we always try to temper their eagerness and encourage them to be patient. It will be worth waiting for the right location. It really will make a difference. It is important to keep in mind that you can call on professionals to help you find and evaluate the right location for your business, and we highly recommend that you do so. If you have to spend a thousand dollars to get a professional opinion from someone who has been in the coffee shop business, someone who has been through all this a number of times before, do it. Clients have taken us to eight locations they have picked out in a given town and all eight locations were absolutely disastrous. To us, they were obviously disastrous, but not to them. The message: If you do not have the retail experience, hire a professional to help you. At the very least, talk to other people who are successful in retail and ask for their opinions. Bellissimo's consulting services include helping their clients find locations. Business
Politics From a national perspective, state and local codes and ordinances vary widely in the hoops they require you to jump through. In one state in the Midwest we were called in to consult with a woman who was halfway through developing an extremely complex coffee shop business operation. When we came on the scene to help her, we just about had a heart attack when we realized she had not checked with any government authorities…. on anything!! We went down and checked with each one of them–health department, city planner, fire marshal–and every one of them said, "Fine! No problem! You don’t need anything!" In certain states however, the picture can become much more complicated. Check with your local government officials to find out what the requirements are for your locality before you purchase your equipment and sign the lease. Pick up a copy of the local health code. Bellissimo’s Bean Business Basics is a valuable resource that will help you in all aspects of the necessary steps that you’ll need to take on starting a coffee shop business. Always remember the importance of working closely with your local, county, and state officials in every aspect of your future coffee shop business operation. Design
& Construction of your Coffee Shop / Espresso Business Example–A client in the Midwest had already designed and built a beautiful coffee bar in a large downtown metropolitan area when we were called in. He had a one-group machine and already needed a two-group machine, even though he had only been open for a few weeks. He had done a poor job of designing his work area and had not allowed enough room to expand to a two-group machine, let alone a three or four group. In addition, the workflow patterns were horrendous, at best. If we had designed that coffee bar from scratch, we would have definitely done many things differently. This is the kind of situation you can avoid by hiring professionals like Bellissimo to assist you. It is much better to spend a few dollars up front, rather than thousands of dollars later, go back and retrofit and redesign your coffee bar. Remember, even if you are working with an architect, you should get coffee professionals such as Bellissimo to get involved and review the architect’s plans. Your architect may not be knowledgeable about the operational requirements–the importance of equipment layout, work, and customer flows–in coffee shop business design and food service establishments. Bellissimo's consulting services include designing coffee shop layouts for their clients. Menu Planning Case in point — A retired psychologist from Connecticut knew that he and his wife wanted to move to Colorado, and the two of them spent 10 weeks traveling around the state looking at prospective cities in which to open a coffee shop business. They had narrowed their list down to eight towns when they hired us to spend a week with them to assist in their decision making process. Before we set off to join them, we talked quite a bit by phone and they told us that they only wanted to do coffee and some pastries. They made it clear they absolutely did not want to get involved in a food service operation. So we went looking at various locations, with that in mind, but, in every town we went to, we kept hearing the same message from coffee shop business owners: We were planning on only coffee and pastries, but we have since decided that we also had to serve some light lunches. By the end of the week, our clients said to us: You know, we keep hearing the same thing over and over---so we think we ought to incorporate some light food into our operation also. More and more food product companies are expanding the variety of products specifically crafted for gourmet coffee drinkers. Both retailers and suppliers are responding to the booming specialty coffee market. Besides the fact that serving food will create satisfied customers, you always want to take into account that you are paying rent on your space 24 hours a day. You want to try to generate sales during as many hours of the day as possible. If you are only serving coffee and pastries, then basically what you have is a morning operation. If you add some light food and some additional beverage options, you can fill those dead or slow times in which you are already paying rent, without having to make a big investment in equipment or significantly increasing you labor costs. Bellissmo's video Everything But Coffee will help you learn the essentials that enhance coffee shop profitability. Since you are already paying rent and hiring people to be on hand to serve your customers, you can find ways to produce additional income with the same amount of bottom-line expenses. When you can increase your sales without increasing your bottom-line expenses, you increase your profit. Bellissimo's consulting services include helping their clients plan their menu. Equipment
Selection Before you make a substantial cash investment in an espresso machine, do your best to get unbiased information from as many sources as possible about the manufacturer’s history and reputation for the particular brand you are considering. Shop and compare at least three brands of machines. Make a checklist and compare and evaluate their features. As each dealer points out the superior features of their machine, you will begin to understand how espresso machines work and what features are important to producing a quality product. Remember to:
If you are in need of information contact Bellissimo for equipment selection. Our consulting services will be able to narrow down your choices to accommodate your specific needs. Hiring,
Managing, and Training Employees What is really needed in this business is for you and your employees to work as a team. Their job is equally as important to the success of the operation as is your function. How important is training? In our opinion it may be the most important job the coffee shop business owner faces. Unlike many facets of management, training is ongoing. Training is not something you do once and then never think of again. With the high turnover of employees in most food service operations in the U.S., it is essential to develop a structured training program and to stick with it. Never surprise your staff members with their job responsibilities. You can take the very best coffee beans and produce a product that is not drinkable. Great coffee beans and expensive machines do not assure a great product; they only provide the potential. You have to receive the proper training before you can create the quality beverage that will be the centerpiece of your business. Remember, your employee’s skills are critical. When one receives a poorly prepared beverage, 95% of the time it will be the result of improper training. Many entering the specialty coffee industry have been told and taught that espresso is so simple to prepare that someone can train you to prepare it properly in just a couple of hours. This is a widespread and fundamental misconception. Should an entry-level employee be expected to research correct brewing methods and drink? Of course not!!!! This is your job as an owner because your bottom line will be the one that will suffer if you do not train your employees properly! Bellissimo's consulting services include on-site visits for store opening and training. Remember to:
To learn more on how to keep you and your employees trained on a continual and consistent basis we recommend our manual Bean Business Basics, our training video Espresso 101 and Customer Service for the Retail Coffee Bar. We also carry a variety of other books and videos that will help your coffee shop business perfect making excellent espresso beverages and how to maximize customer service satisfaction. Serving the Best Coffee In
Town
Our video Espresso 101 will ensure that your customer’s are getting the best espresso beverage possible. Marketing
Your Coffee Shop / Espresso Business
Presumably, the primary reason you own (or want to own) a coffee shop business is to make money. To make money you will need customers coming through your door to purchase your products. You can accomplish this goal using sound marketing practices. Your overall marketing program needs to implant your coffee shop business identity in the public’s consciousness in positive ways. Your coffee shop business should reflect your personality. Building a loyal customer base includes making your coffee shop business a destination location. Personal loyalty goes a long way and customers who feel like welcome guests will likely become repeat customers.
While you may never have the marketing budget that a major coffee shop chain or coffee shop franchise does, you do have an important advantage. You can possess a better understanding, and be able to adapt to your specific market. You can certainly produce a better quality product, and provide a superior level of customer service. Some products that will boost your marketing program are Achieving Success in Specialty Coffee and The Passionate Harvest. Remember, coffee will first arouse the senses; an educated staff and customer base, however, will set you apart! Coffee is what you do---be the best! Why did we start Bellissimo over
ten years ago? Why use a consultant? We often use this analogy. You’re in New York and you need to get to San Francisco. You have no map and you don’t speak the language well. Will you eventually get to California by asking questions and getting free information? Probably. Will you at times get very poor directions and go hundreds of miles out of your way? Spend huge amounts of time and money that could otherwise be saved if you had had a road map and spoken the language? In so many words that’s what a good consultant does for you. They are your navigator. Someone that has traveled the road a thousand times before. A qualified consultant can save you time, money, and prevent you from making fatal mistakes. The bottom line is that there are always risks associated with opening your own business, but there are also impressive rewards. Having control over your future, income, and time are possible with coffee shop business ownership. Let’s face it, if you were making a million dollars a year in your present job with complete freedom to control your own time and destiny, you wouldn’t be looking at the opportunities that exist in coffee shop business ownership. Click here to read about Bellissimo's consulting services. Do you
need a consultant? Following are a series of questions for you to ask yourself. Be honest!! If you can’t answer every one of these questions with confidence and certainty you should seek help from a qualified consultant to ensure your chance of being successful. 1). Do you know how to produce a business concept that will:
2). Do you know what to offer? Do you know all the product options that can be added to your product line to create greater appeal and income, while producing insignificant increases towards your operating costs? If working with a limited budget, do you know which additional items to choose in order to maximize your income? Do you know the minimal and optimal amount of space that will be required to facilitate your concept? 3). Can you project how much capital it will take to open your business and operate it until it becomes profitable? What will your capital improvements, equipment, furnishing, and opening inventory cost? How much negative cash flow will you experience building your business? How many daily transactions will you need to do? Will that number be attainable in the location you are considering? 4). Do you know how to find a good location? Do you know how to judge if a location is viable? Can you identify the capital improvement that may be necessary and estimate what they might cost? Do you know if your business will make money at the lease rate the property manager has proposed? Do you know how to make the property manager want you and your business on the site? Do you know how to negotiate a lease that will be beneficial to your business success? Do you know what terms you should ask for? Is it okay to pay a percentage rent? Do you know how to provide yourself with an escape clause should your business not be successful? 6). Do you know how to design your business space, so that it maximizes sales and minimizes operating expenses? Do you know exactly where each piece of equipment should be placed to maximize operational efficiency? 7). Do you know which equipment to select, the manufacturers who produce the best equipment, and the distributors who will be there to help you should the equipment malfunction? Do you know how to find the best price? 8). Do you know how to present your menu ideas to your customers and sign maker? Can you project your menu sales mix and determine the menu prices that will produce the gross margin necessary to achieve profitability? 9). Do you know how to find and select the best coffee and food products available? 10). Can you train your new employees to understand the subtle nuances associated with the proper preparation of your products? Can you teach them how to utilize their speed and efficiency at their jobs? Can you teach them customer service principles that will maximize sales and encourage your customers to return? 11). Do you know how to promote your new business, so it will grow quickly and minimize your negative cash flow? 12). Can you create and execute the operational systems and controls necessary to:
13). What will you do if your proposed business does not produce the results you expect? How will you fix it? Do you know how? Click here to read about Bellissimo's consulting services. Why use Bellissimo for your
consulting needs as opposed to other consultants? While others within the industry may be able to instruct you and your employees to the proper preparation of espresso beverages and brewed coffee, you must ask yourself, do they really know? Who taught them? Where did they gain their knowledge? Sadly, the majority of those in the specialty coffee industry still do not understand the subtle nuances required to achieve excellent espresso beverages. This includes espresso bar owners, equipment sales people, technicians, coffee roasters, and most consultants. You can take the very best coffee beans and produce a product that is not drinkable. Great coffee beans and expensive machines do not guarantee a great product; they only provide the potential. You have to receive the proper training before you can create the quality beverage that will be the centerpiece of your business. Remember, your employee’s skills are critical. Many entering the specialty coffee industry have been told and taught that espresso is so simple to prepare that someone can train you to prepare it properly in just a couple of hours. This is a widespread and fundamental misconception. It is simply not the case. We at Bellissimo understand in detail, all the nuances related to the proper preparation of espresso and coffee. We learned these principles from respected Italian authorities. The most renowned being Dr. Ernesto Illy, considered the Godfather of espresso. You will want to establish an immediate advantage over your present and future competitors through a commitment to excellence. Without a doubt, we can help you attain this level! Unlike many other consultants within this industry, we also possess years of hands on experience on food service operations and management. You will be a running a business. Will the consultant you choose be able to help you with the many aspects of store management and operational controls or will they merely help you with coffee? While preparing excellent coffee beverages will be an essential element of your success, it will only represent a small portion of what you will need to manage. We can help teach you the administrative aspects of this business. Another thing to consider is the fact that we have created the majority of this industries award winning training tools. Many other consultants sell or recommend our educational products to their clients. However, wouldn’t it make more sense to work with those who have demonstrated that they have full and intimate knowledge on these subjects? One other thought related to consultants. Some consultants are providing their clients with information, which is actually detrimental to their success. While we’re sure this is not intentional, the information they are providing is outdated, as it relates to the current trends that have been proven to lead to success. This industry is constantly evolving. What worked five years ago will not necessarily be a formula for victory today. Because we are out in the field, helping people open their businesses, seeing first hand what works and what doesn’t, we’ll be able to help you fashion a concept that will maximize your likelihood for success. For more information on Bellissimo consulting services, click here. |
We
can also help you:
"I’ll
never forget the initial reaction of people when I told them I wanted
to open a specialty 
Buy
books about coffee, and especially manuals dealing with the how to’s
on starting a coffee shop business. We believe our manual, 
If
you are planning a particularly small operation, or have very limited
capital, then you may not have the option of providing any type of food
service. But, increasingly, owners of gourmet coffee shop businesses
are finding it difficult to ignore a rising consumer demand for a special
menu to go along with the beverages they sell. Many coffee shop businesses
treat their menus as afterthoughts. This is a big mistake. You should
base your menu on the personality of your customer base and a practical
assessment of your resources.
Bellissimo, Inc. Copyright 2005
1028 SE Water Avenue, Suite 275, Portland, Oregon 97214
Phone: 800-655-3955
E-Mail: contact@bellissimocoffeeinfo.com