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