The startup costs for a cafe can vary greatly depending on whether you’re buying an established business or setting up a small little coffee shop.

Here are some of the major costs of opening a cafe:

1. Company Setup – Incorporation, Licenses, Legal, Finance and Tax Fees
2. Business Acquisition – Purchase of existing business (if buying a business)
3. Franchising Costs -Franchise fees and startup costs (if franchising)
4. Property Acquisition – If buying the business premises
5. Property Rental Deposit – If leasing the business premises
6. First Month Rental – Be prepared to pay the first month’s rental in advance
7. Utilities Deposit – A deposit is often required when opening an account with the utility companies
8. Outlet Renovation – The interior design, renovation and decorating costs will vary according to the plans
9. Furniture & Fittings – Furnishing the café will be a large part of the start up costs
10. Kitchen & Bar Equipment – Another major cost to bear in mind
11. Point of Sale & Service Equipment -Don’t save on these essentials
12. Marketing & Branding Items – Cups, Uniforms, Menus, Namecards, Flyers, Napkins, Coasters, etc
13. Food & Beverage Stock Items – A key cost that will depend on the menu items and inventory size
14. Minimum 2 months Working Capital – As cash to rollover and cover wages and essential expenses in the first few months

The main factors that will significantly affect the total capital required are:

• The Premises – Buying vs Leasing
• Equipment – Buying New vs Used
• Working Capital – Budgeting for 3 or 6 months
• Rental – The Size & Location of the Cafe