If you want to open your dream cafe but don’t know where to start, you are in the right place. In this article, altitudementor.com will discuss 13 steps to open a successful cafe.
13 Steps To Open A Successful Cafe
Let’s start our article by giving good news to small business owners: People are now flocking to small cafe businesses! Yes, with the increase in the number of operators in recent years, competition in the cafe industry has become even more intense. However, there is something different in this sector: It is not a rule that you will open a big business to attract more attention and make money. In fact, according to research, the number of small cafes has reached twice that of large coffee chain stores.
Of course, after reading what we have said, it is very normal for you to immediately dream of opening a small and cute cafe where you live. But remember, “cuteness” is not enough and most new cafes fail.
However, if you take the right steps with the right planning, your cafe can become a place where people can have fun with their loved ones, enjoy a meal, or work on their new projects. If you want to learn how to open a successful cafe, this article is for you.
Opening a Cafe Step by Step (Summary)
1- Write your business and marketing plans. These plans are important perspectives for all businesses. An action plan will guide you on how you should manage and market your business. If you refer to these documents frequently, you can be sure that your work will go smoothly.
2- Follow all the legal issues required when starting a cafe business. Make sure you have all the necessary licenses, permits, and insurance required by the relevant government agencies.
3- Secure your working capital. In your business plan, indicate how much capital you need to open your cafe. If you don’t have enough capital, contact investors or apply for a loan.
4- Shape your logo, images, business cards, and other promotional materials. It will help you adjust the colors and designs you will use in your decor, menu, and other marketing items.
5- Research many different places. Look for places available to rent or buy. Choose the location that best suits your budget and is ideal for your customers. If the place you choose has been used as a cafe before, this will be to your advantage. In this way, you will not need to waste time and money to turn it into a cafe.
6- If you need additional tools and equipment to run your cafe, purchase them. If your tables, chairs, stands, POS machines, or any other parts you need to improve your cafe are missing, you should purchase these parts.
7- Create your menu. Choose the products you want to put on the menu and determine your price policy.
8- Improve your relationships with suppliers and distributors. You need to provide all the food and other items you need to run your business on a daily basis in the best and most affordable way. Suppliers and distributors will provide all the foods, beverages, kitchenware, menus, and marketing materials your business needs.
9 – Advertise and promote your cafe. If no one knows that you will be opening soon, you will not have the customer participation you desire. Get out there and start spreading the word. Use methods that you think will help you, such as press releases, social media, rumors, and posters, to let people know about your new cafe.
10- Hire and train waiters and those who will work in the kitchen. These people will be the backbone of your business. Be assured that your kitchen staff will prepare everything to the customer’s taste and that your waiters will provide customers with a friendly and satisfying experience.
11 – Open your business when you are ready. When everything is completed and your business is ready for customers, open your doors. Be prepared for the complications that may arise during this process and act quickly to resolve these complications. So everything will work like clockwork.
12- Create a customer loyalty program. This is not only a way to retain customers, but also a good way to build strong relationships with them and understand them. You can organize discounts and campaigns, and give free food service or gifts when your customers spend at certain times and over certain limits. A customer loyalty program is an effective marketing tool to create and maintain your loyal customer base.
Now let’s examine these steps in detail.
Part 1: Planning Phase of Your Cafe
1. Develop a business plan.
Regardless of the type of cafe you want to open, you need to make a comprehensive business plan. In this plan, it will be useful for you to analyze the cafe sector in which you will operate and to reveal your expectations for the next few years. So, this plan is both a road map for you and a sales tactic that can help you impress potential investors.
So how to write a solid business plan for the cafe you want to open? To do this, be sure to take advantage of the following elements:
- Cover page and table of contents
- An executive summary in which you briefly mention the vision of your cafe
- A description section in which you describe your cafe and the services you offer in general terms.
- The product and services section is where you talk about the products and services that make you different from your peers.
- Marketing plan section where you explain how you will introduce your cafe to consumers
- An operations plan in which you explain how your cafe will operate on a daily basis
- A management and organization section that explains the company structure and culture in detail
- A financial plan that outlines your approach to money and your expectations from investors.
2. Do not forget to learn the legal conditions.
In this case, the first thing you need to do is to start researching what licenses and permits you need to open a cafe. Not only do you have to deal with legal hurdles when opening a cafe, you also need to comply with health and safety requirements specific to the food industry. In this regard, you can go to your local municipality and get information or consult relevant associations and organizations. Remember that you need to go to the tax office for tax transactions.
Apart from this, you can make it easier for yourself by getting help from a financial advisor or lawyer to manage the legal processes.
3. Calculate the cost of opening a cafe and find the necessary capital.
No matter what you do, starting without calculating the cost is like diving into the ocean without checking the oxygen tank. For this reason, you should calculate the cost of opening a cafe in detail and thoroughly research the possible expenses. For example, many factors such as the city you are in, and the concept and size of your cafe directly affect the cost. You can calculate what expenses you will incur item by item by reading our article below.
Now it’s time to figure out how to find the capital needed to open a cafe. You’ll probably need to get creative to pay for initial expenses. Therefore, if necessary, apply for a loan, use some of the money you have saved, and use all means to create resources.
Consider all available options for obtaining a small business-friendly loan from a financial institution. You can apply to a bank for a business loan or knock on the doors of organizations that offer grants and interest-free loans to entrepreneurs, such as KOSGEB.
Of course, your financial resources are not limited to bank loans or savings; You can create resources for yourself by impressing investors or entrepreneurs with the solid business plan you prepare. If you are ready to struggle with difficulties in this regard, “No matter what, I will find money somewhere.” If you do, you can go and talk to your family or friends and ask for a loan.
4. Create brand identity.
Design a logo unique to your cafe, create various visuals, print business cards, and prepare the necessary materials for promotion. Also, for this purpose, do not forget to create a theme that suits the vision of your cafe, as it would be better to choose the colors you will use in the decoration, menu, and other elements according to the theme you have determined.
As a result of your observations and research in the place where you will open the cafe, determine your target audience and set some goals for your business. Are you appealing to those who work 9-6, university students, technology enthusiasts, or people who want to relax and chat a little? Lucky you if you have this information! If you know your audience well, then you can do your branding correctly.
Your ultimate goal is to ensure that every detail in your cafe is in harmony with the scope of your branding. In other words, the customer should be able to observe the same style when he looks at the lunch menu or examines the WC decoration.
If you have difficulty creating a brand identity or think that the concept you have created has become confusing, get support from professionals who specialize in these fields.
Part 2: Preparation of Your Cafe
1. Find the right venue.
Search for a few places with entrances facing the main road, and don’t forget to look at different places for rent or sale. Choose the venue that best suits your budget and is ideally located for your customers.
If the place you have chosen has been used as a cafe before, this may be useful because you do not need to waste time and money to turn the place into a cafe. Of course, “I wonder what happened that this cafe closed?” Don’t forget to ask.
Research and visit promising places yourself. Count how many pedestrians and vehicles pass by that location at different times of the day. People generally look for delicious food and quality drinks, so they mostly choose places they know, but if you open a cafe in a place with heavy traffic, your chances of creating a loyal customer base increase.
2. Adjust the layout and decoration of the place according to your brand.
Even if the venue you choose is still a cafe in good condition, you usually need to make some changes and improvements according to the vision you have in mind. Of course, consider your budget before attempting this, and never overdo it.
Of course, we are not saying that wall color and lighting equipment are unimportant, but it is not enough to just deal with such things. In addition to such details, functionality is also extremely important for a cafe. For example, arrange the kitchen area in such a way that the cooks and their assistants can prepare meals without constantly running around, so that kitchen traffic is never blocked and service flow is ensured.
You definitely want your cafe to be a comfortable place and for people to come here, relax, and spend quality time. If you think so, it’s great, but when designing the cafe, do not forget about the customers who will buy their coffee in paper cups, take them into consideration when designing the place. Serving customers who already buy their meals or drinks as packages is cheaper and easier to make these people happy.
3. Get the equipment you need for your cafe.
If you are redecorating a place that was previously used as a cafe, you can choose to use some existing items such as tables, chairs, armchairs and safes. Even if you save money by using such old items, you will need to buy or rent some new equipment.
Whatever you do, don’t forget to save money. For example, collect various items from left and right and use them if they fit the theme of your cafe, thus saving on your expenses.
We said to save money, but never skimp on certain equipment. For example, if you are going to open a cafe, you need to buy a good espresso machine. Remember, most people who pay for coffee know the difference between quality coffee and bad coffee. We explained the required materials in detail in the rest of our article.
4. Create a menu.
Decoration, ambiance, and similar elements are of course of great importance for the success of your cafe. But if the food and drinks you offer are not good, be sure that no one will come to your cafe a second time. Therefore, do your best to prepare a menu that will both fit your budget and attract customers.
While your business has just opened, it will be beneficial to keep the menu relatively short. For this purpose, include basic foods and drinks that complement each other. For example, offer desserts that will go well with the coffees you sell, or add a few soup and sandwich options to the menu without going overboard.
No matter how comprehensive the content of your menu is, learn every detail of all the products you sell. If you haven’t reached the level of a coffee guru before opening your cafe, get to work immediately and learn everything about coffee. Know the origin of the products you sell well so that someone comes to you and asks, “Which part of the country does the meat you use in sandwiches come from?” Have an answer when you ask: Also, be passionate about your drinks and meals so that you have a feature that distinguishes you from big cafe chains.
5. Maintain good relations with suppliers and distributors.
You need to provide the food and all other items you need to run your business on a daily basis in the best and cheapest way. For this, you need to establish solid relationships with reliable suppliers who do not fail in their service and deliver products such as food, cleaning materials, and brand elements to your door without any delay at affordable prices.
Remember, suppliers are the lifeblood of a cafe; If you don’t have a product when the time comes, you can’t do anything or make money.
You can talk to the owners of small businesses and restaurants around your venue to find out which suppliers they work with. After choosing your suppliers, we recommend that you establish good relationships with them and make your cooperation long-term. Of course, by the way, if you find a supplier that provides more reasonable prices and better quality service, stop working with your old supplier.
Part 3: Opening Phase of The Cafe
1. Be sure to advertise your cafe.
If no one knows about your newly opened or about-to-be-opened cafe in the early days, you cannot reach the desired number of customers and therefore cannot earn enough profit. To prevent this situation, advertise your cafe by spreading the news around before opening it. Press releases, social media, disseminating information, posters, and any other method you can think of can be useful in informing people.
Never compromise your brand identity in the marketing materials you use when spreading the news that you are opening a cafe, that is, do not be misleading about your concept.
Also, do not forget to act strategically by using up-to-date advertising technologies such as Google Adwords to spread the news.
2. Be meticulous when hiring kitchen staff and waiters.
Kitchen staff and waiters are the backbone of your business. It is the duty of the kitchen staff to prepare delicacies that suit the customers’ tastes, and the duty of the waiters to provide a pleasant experience that will satisfy the customers.
When recruiting employees, it is of course beneficial to choose those who have previous cafe experience, but apart from that, also consider factors such as personality, mood and attitude. Before hiring anyone, conduct in-depth interviews and ask lots of questions. For example, when asking waiter candidates, “What did you do where you encountered negative customers where you worked before?” etc. Ask questions about the case studies and evaluate the answers you receive. Remember, you may not be able to be at work all the time, and in such times your employees will manage the place.
3. When you are completely ready, open the doors of your space.
When everything is completed and your business is ready, open your doors to customers. Be prepared for setbacks in this process. When you encounter a problem, instead of complaining about helplessness, take action immediately and make an effort to put everything back on track.
Of course, your biggest wish is for your official opening to be perfect, right? Then hold a “soft opening” to do a little rehearsal. For this purpose, invite a small number of guests, such as family members and friends, and test the operation of your cafe. In this way, before the official opening, you can identify the things that are going well and what are not going well.
In order for your official opening to attract attention, advertise a lot, give away gifts, and win people’s hearts by using many other methods you can think of. Also, try to choose the most suitable day and time to hold the official opening. “I wonder on what day and at what time my target audience will arrive?” Ask yourself and act accordingly.
4. Keep your customers coming back.
Let’s say a customer came to your cafe once. That’s great, but it shouldn’t end there because many cafes make money thanks to regular customers. You can impress people by offering excellent products, a pleasant ambiance, and affordable prices, but you can also use other ways that come to your mind to gain regular customers. For example, you can prepare a loyalty program for this purpose. Thanks to such programs, you can not only retain customers but also understand people and establish a closer relationship with them. The free coffee you give after a certain drink within the scope of your loyalty program will attract customers so much that they want to come to your place constantly.
For this, you can use classic methods such as punch cards or coupons, or you can also choose loyalty platforms that use QR codes. Using technological methods such as QR codes is very easy and does not hurt your money financially. Whatever method you use, do not underestimate the positive effects of loyalty programs, and even consider these programs to be extremely effective marketing tools.
Legal Issues to Know to Open a Cafe
You have secured your workplace, now it is time for the procedures. What are these? Let’s count, then detail.
1. Choose your accountant.
2. Start preparing the documents required for installation.
3. Finance documents
4. Municipal documents / Business opening and working license
5. Chamber of Commerce works.
6. Provincial / District Directorate of Agriculture (Food Production Permit Certificate, Food Business Registration Certificate)
If possible, let your accountant be someone you know and trust. However, this will often not be possible. At least go with a reference if possible and try and supervise for a few months. The most important auditing tool is to check whether the VAT amount of the items you show as expenses has been calculated correctly with the VAT totals in the Z reports you will send, and occasionally ask for an account statement so that you know that it is being followed.
An important note: Make all your payments yourself. You can do it from any bank’s internet branch from where you live.
Once the cafe is opened, the payments you will need to make regularly will be roughly as follows:
- Your VAT payments. (Every month)
- Your provisional tax payments (every 3 months)
- Your withholding payments (every 3 months)
- Your income tax payments. (Annually)
- Your SSI premium payments. (Every month)
- Your Bagkur premium payments. (Every month)
- Your book certification payment. (Annually)
- Your information form payment (newly issued)
- Your payment of invoice book certification fee. (Annually)
- Your accounting fee payment. (Every month)
REMEMBER: The accountant must keep and archive every document you send about yourself. Make sure it is organized. You should be able to find the invoice you want in a short time. You usually understand this situation when a fixture (TV, Refrigerator, etc.) breaks down and you need an invoice for its repair under warranty. In such a case, the invoice should be delivered to you immediately when you request it.
By the way, put a copy or photocopy of the invoice in a waterproof file and paste it into a suitable place for the goods you purchased and expensed. This will make your job much easier. Because they will definitely break down…
Materials Required To Open a Cafe
If you want to open a cafe or coffee shop, it can be a challenging task to think through and identify every single object you need to be successful. From industrial coffee grinders to refrigeration systems, from tableware to cardboard products and storage, listing items can be confusing.
When it comes to opening a cafe, gathering the necessary equipment is a priority and you do not want to open an opening where essential materials are forgotten.
This is exactly why we created the list required to open a cafe. With this detailed content, you can make sure you have everything you need before opening your doors.
Naturally, preparing coffee and food is at the core of your business, and you’ll need a wide range of equipment to fully meet your customers’ demands. If you start by meeting all these requirements properly, you will be one step ahead when you open your doors.
Your equipment list should include the following.
- Filter Coffee Machine
- Coffee Pot
- Coffee bean
- High-Quality Espresso Machine
- Industrial Coffee Grinder
- Water Purification System
- Food Preparation Counter
- Food Storage Containers, Boxes and Pumps
- Commercial Blender
- Oven, Toaster, Grill
- Ice Machine
If you are not going to serve products such as hot sandwiches, you will not need a grill. If there are similar differences, there may be a few changes in the list, but the list above generally shows the essentials.
Another important point is that you should have an espresso machine of high quality and model, rather than one that suits your budget. Since good coffee is the foundation of your business, it’s important to have a machine that’s good enough to get the job done. When you enter into such a search, turn to machines with the capacity to make the highest number of coffees per day, so that the machine will pay for itself in a shorter time. Remember that busy periods will put a strain on both employees and machines. Therefore, it is essential to have a machine with the required capacity. Buying a durable machine that suits your needs is the most important advice we can give you on the road to success.
To explain the main needs in detail:
1. Automatic Filter Coffee Machine
Since the majority of your sales will come from standard filter coffee, you should choose a machine that is suitable for this job and has a high capacity. Your machine must be sufficiently durable and long-lasting, be able to make large amounts of coffee in a short time and have a large volume.
Having more than one coffee machine for different coffees is a sensible option, but be careful not to go too far with it. Because the most successful cafe owners recommend using 3 or 4 machines.
2. High-Quality Espresso Machine
Espresso is used in many coffee productions. So, you must have a quality espresso machine. On the other hand, prices in this growing sector may bother you. Therefore, finding the best espresso machine requires good research.
3. Industrial Coffee Grinder
Since most coffee shops use coffee beans to deliver the freshest coffee, you will need an industrial coffee grinder. Having the right grinder is key to the coffee you serve.
4. Transport Solutions
Apparently, grabbing a coffee and going, that is, not sitting inside, is not just a habit acquired during the pandemic, but the choice of most people. Therefore, you should make sure that you have enough cups, carrying containers, and similar products.
5. Industrial Blenders
According to a customer survey conducted in 2019, 38 percent of customers prefer beverages prepared with a blender. To meet this demand, you need to have at least one blender. If the best blender is too costly for you, no need to worry. Because you can find other solid options that will work for you.
Other needs are as follows.
6. Software
Software is a detail that is often overlooked when opening a cafe. However, choosing the most appropriate software for your business is important for long-term success. Those who need:
- A solid security system
- POS system
- Employee and overtime control system
- Payment and accounting system
These products are products that will support your business from start to finish. The way to keep your customers loyal and happy is through your employees and managers.
7. Integration
There’s no limit to the third-party app integrations that can make your life easier. It is possible to find applications operating in many areas, from accounting to listing, from ordering to delivery or payment.
8. Wireless Internet Connection
It is essential nowadays to have a wireless Internet network in the cafe you will open. You can serve them by providing free internet service to everyone, from those who come to spend time to business people. This service can also help your customers stay longer and drink their second cup of coffee. What’s more, this way you can stand out to people looking for a place to work, eat or hold a meeting.
9. Heating and Cooling
It goes without saying, but no business should open its doors without a properly functioning heating and cooling system. If you have bought all the equipment you need, this job is now at the top of your list.
10. Storage and Cooling
You will be working with many perishable foods and different ingredients. This means that you must have a good storage and cooling system so that the products you have can be stored in accordance with the regulations. To summarize:
- Industrial style refrigerator
- Chamber-shaped freezer for large businesses
- Insulated containers for cream and milk
- Industrial shelving for dry storage
- Storage containers for opened food
- Industrial plastic packages
When searching for these requirements, keep interior design and structure in mind. You should find an option that meets all your needs while also being aesthetically pleasing. Make sure you have all of these on hand at the same time. Because you will need it during busy periods.
11. Ingredients
You will need many disposable paper or plastic items. Examples of these;
- Napkin
- Insulated paper cups and lids
- cup protection
- plastic cup and lid
- Pipette
- Paper towel
- Paper or cardboard tray
Although your needs may vary depending on the type of beverage you’ll be serving, the list above is quite comprehensive.
12. Dinner Sets
To provide a good experience for your customers, you will need a lot of dinnerware. The list of required materials is as follows:
- Plate
- Cup
- cup and glass
- Spoon, knife, and fork
- Beverage preparation ingredients
The good thing is that you can choose any style of material you want. To create a more consistent style, you can turn to places that sell on an industrial scale.
You can always introduce small differences that will reflect your own style and create small differences in your equipment.
13. Cleaning and Maintenance
To ensure a good customer experience and comply with health requirements, you will need specially produced cleaning equipment. These can be generally listed as follows:
- A three-compartment sink used for rinsing, washing, and cleaning purposes
- Mop and a cabinet or compartment dedicated to it
- Carpet and industrial cleaning spray
- Dishwasher
- Stand for dirty dishes
- Trash can and bag
- garbage container
Apart from these, you may have different needs specified in the regulations. At this point, the best option is to get information from official authorities.
14. Decor and Furniture
Although furniture is not generally considered cafe equipment, your customers will need a place to sit, and this furniture does not come with the place you rent. Moreover, you need a good decoration to stand out from other cafes. Below are some suggestions you may need.
- table and chairs
- bar stools
- Outdoor furniture and umbrellas
- food preparation counters
- package and boxes
- Menus
- Interior and exterior lighting
- Wall hangings, posters, and paintings
- Sound system
As always, your needs will depend on you. For example, if you don’t have an outdoor space, you won’t have to worry about rain-resistant furniture.
15. A Strong Security System
No matter where the cafe is located, you will need a strong security system. It should be equipped with cameras and alarms both inside and outside. Thanks to these steps, you will be more comfortable and safe. It also becomes easier to keep track of your employees.
16. Other Noteworthy Products
Although it is not classified as equipment, the milk, water, and similar materials you will use are factors that affect what you will offer to your customers. Today, for example, there are dozens of different types of milk. Soy and almond milk are among the most demanded ones these days. Make sure you can meet all these possible demands and get the most ideal products by doing the necessary research.
With a quality water purification system, you can extend the life of your machines and provide a really good coffee service.
Most importantly, you should use coffee beans of the highest quality, obtained using ethical production methods. Although choosing local products is sometimes beneficial for small businesses, investing in a product you know will also increase quality. Our key advice here is that after doing some good research and tasting, you will find the best option. Because the foundation of a good cafe comes from quality coffee.
Documents Required to Open a Cafe and Conditions for Opening a Cafe
You can go to your municipality to learn the conditions for opening a cafe. Although the legislation changes from time to time, we will outline the main procedure below. First of all, you need to apply to the tax office directorate of your district and then;
1- Start of work report
2-Copy of identity card (Notary/Muhtar’s Office)
3-Residence certificate
4-Signature declaration
5-Petition
6- Lease contract (if rented) / Deed (if you own the property)
7- You definitely need to make an agreement with an SM. Because taxpayers now have to work with professionals in financial matters.
Additionally, for a cafe-style place (with food), you need to get permission from the municipality. The process steps will be as follows:
1- You go to the tax office with the above documents.
2- You register the documents through the “Document Registration” service and submit them to the “Registry” service.
3- Within approximately 2 (two) days, the controller comes to the workplace address you declared and checks the start of work, and the next day you go and have your tax certificate approved by the same tax office.
You should definitely buy a cash register, which is an essential fixture for those who will open a cafe/restaurant-style place.
