The nature of advertising is display, so it can be said that a beautiful premises will be the purest marketing activity for a coffee shop. If you are having difficulty choosing a business premises, please read the following 5 golden rules!
1. Identify target customer group
Answer the question yourself: Open a coffee shop to whom? How old? What are your habits of using and enjoying coffee? This clearly identifies the behavioral habits of the target customer group, making it easier to choose the right premises for them.
2. Prepare a cost estimate table
Investment costs are a prerequisite factor you will consider in the process of choosing a space to open a coffee shop because rent is considered a fixed cost to pay monthly. There are also repair and decoration costs, operating costs, management costs and other costs.
It is necessary to estimate the revenue and profit of the coffee shop to see if costs can be met. You should compare many different premises to find one with reasonable prices and high profit potential.
3. Choose a business model
You need to clearly determine what type of coffee shop you have: take away coffee shop, traditional coffee shop, franchise shop, coffee shop combined with other services such as books, music, art, etc. pets... Each business model will have different space requirements, such as:
– Take away coffee shop: This model usually does not require a large area, the premises should be located in places with a large number of people passing by, such as shopping centers, airports, schools, offices...
– Traditional coffee shop: This model often requires a larger area, to create a comfortable space for customers to sit and drink coffee and chat. The premises should be located in places with beautiful scenery, quiet, airy...
– Franchise shop: Choose a premises that meets the area of the model required by the franchise brand.
– Combination coffee shop: Large space to design appropriate concepts because customers are looking for new experiences, high prices worthy of quality.
4. Choose location and area
Location and area are two factors that greatly affect customer attraction and revenue of a coffee shop. You should observe to choose a location with a high density of target customers, easy to reach and recognize. You should consider the traffic situation in that location, whether it is convenient for customers to move, whether there is enough space for parking or not... In addition, you should also pay attention to the surrounding area of that location, whether Are there many competitors? Are there many amenities around?
The area of the coffee shop also needs to fit the business model and customer needs. Shop owners need to calculate to have enough space for the service area, kitchen area, storage area, staff area...
5. Lease contract and lease term
To have a stable business and start making a profit, it must be in operation for at least 1 year or more. To feel more secure about the business location, shop owners should choose a contract period of about 2 years. If the business is good and growing, continue to extend the contract, this can be from 5 to 10 years. , depending on financial ability and can buy back if conditions permit. In addition, you should also read and refer to other conditions in the contract such as: payment conditions, maintenance responsibilities, use rights, termination rights...
Being clear about the premises from the beginning with the landlord will limit many problems that arise later and also avoid trouble when the shop is operating well when the landlord demands unreasonable premises back.
Hopefully, through the above experiences, each person will have a more detailed understanding of the stage of selecting coffee shop premises and achieve success in the long run.