Capital investments – depending on the chosen business format from 390,000 rubles.
Amortization period: from 6 months
Profitability of sales: 50-60%
The fast and busy pace of life leaves its mark on all spheres of life, including business.
And a vivid example of this is a relatively new format for post-Soviet countries: takeaway coffee.
Local entrepreneurs quickly picked up the Western idea, and many have already become convinced of its cost-effectiveness and profitability.
Takeaway coffee, or as it is also called, takeaway coffee is a desirable business in large and developed cities where the population leads an active lifestyle.
Therefore, for coffee lovers, this is a great opportunity to enjoy a fragrant and invigorating drink on the go, thus saving time and money that could be spent in stationary coffee shops.
So, today we will talk about all the nuances and features of opening such a promising and interesting business.
Takeaway Coffee Business Description
What coffee to go?
This business is aimed at satisfying the needs of city residents related to the desire to drink, not sitting in an institution, but on the run.
In turn, the process associated with the implementation of coffee is as follows:
- Behind a special barista stand, the coffee requested by the client is prepared.
- After payment, the buyer receives a drink in a disposable paper or plastic cup with a lid.
This is necessary so that coffee does not spill while driving.
The set comes with sugar in a paper envelope, a wooden stick and napkins.
- The client can then drink coffee at any desired location.
Now there are three formats for doing such a business on the market:
- mobile cafes in the form of a van on wheels;
- equipped stationary kiosks;
- “Island” in shopping and entertainment.
When running a business of this type, it is important to pay attention to two points that are decisive:
- advantageous location;
- the quality of the offered coffee and the variety of assortment.
There is a direct relationship between the chosen location, the quality of the coffee brewed and the amount of profit.
The more people pass through your mini-bar, and the tastier the drink people want to come back for, the higher the revenue.
I would also like to say that many people consider the business of carrying coffee with them to be something that does not require large investments.
In part, there is some truth here, because it is not at all necessary to spend big money on interior design and renovation of premises, equipment, utensils and staff.
But the size of the initial investment will depend on the chosen format of the institution.
Advantages, disadvantages and risks of a takeaway coffee business
If you are seriously considering starting a coffee business, you need to be aware of the benefits, drawbacks, and risks that it can come with to start a business.
|• High demand and demand among the population|
• Relatively small investment
• You do not need too active advertising and many marketing tools
|• High competition, despite the fact that the niche has recently begun to be filled|
• The human factor plays a very important role
The main risks are related to:
- choose an advantageous placeIt is important to find a place with high traffic, but at the same time so that there are no competitors nearby.
- recruitmentAlthough there will be two people on staff, it is important that they do a good job and provide the customer with excellent service.
- established target policyAlthough the cost of coffee in this commercial format is low, it is important to set an adequate price for the drink in order to stay in the black.
Franchising in the coffee to go business
There are two ways to open takeaway coffee:
- own efforts;
- buy a popular franchise.
It cannot be said that it is difficult to open and run a business on your own, but many newcomers want to play it safe, so they choose a franchise.
Franchising is a type of cooperation in which one party, under certain conditions, buys the right to use a brand from another.
Thus, the main company provides an individual with the opportunity to use its brand, concept and help in doing business.
As for franchises in the take-away coffee business, now there are many franchises, whose representative offices can be found in almost all regions of the Russian Federation, as well as in the CIS countries.
Each company provides its own franchise package, so there is no single correct version of the conditions.
But any franchisor should be interested in developing his network, because this is his name and reputation, so the more support services he is ready to provide to his “neighbors”, the better.
The table shows five popular franchises.
As you can see, each of them works on its own terms.
Some companies offer basic and full packages.
Not only the initial investment depends on them, but also the subsequent support of the franchisee.
|coffee forests||A day full of life||coffee like||GO! coffee||Royles Club|
|Year of foundation||2014||2013||2013||2014||2014|
|Number of points||57||over 130||245||over 110||over 80|
|One time, rub.||175 000||100,000 or 490,000||300 000||140 000||150,000 –|
|Investments, rub.||200 000||from 120 000||from 500 000||from 65 000||90,000 –|
|Royalty, rub.||No||No||3% of income||2200 rubles per month||No|
Like any other cooperation, franchising has its advantages and “pitfalls” that must be considered when choosing a way of doing business.
|Franchise Benefits||Franchise Disadvantages|
|• The investment in a franchise is significantly lower than when running a business on your own.|
• After the conclusion of the transaction, the franchisee receives all the “secrets” of doing business from the main company.
• The Coffee to Go establishment will be well received in any region due to the franchise’s already established popularity.
• Baristas receive training related to coffee preparation technology.
• The franchisee will only work with coffee of a certain quality.
• There is no need to spend time compiling a brand book, advertising and searching for suppliers.
|• Lack of freedom of action in the conduct of business.|
• Sufficiently high entrance fees and monthly deductions.
• There are sanctions for derogation or violation of the terms of the franchise.
• The franchisee has no right to experiment with varieties and flavors of coffee.
• Ideas proposed by the franchisee may get “lost” and not reach the parent company due to lack of time.
How to open a takeaway coffee business?
As for the question of how to open coffee to go, the organization of the business will proceed according to the standard scheme: market analysis, location selection, registration, purchase of equipment and consumables, recruitment and advertising campaign.
Let’s consider each of these stages in more detail.
Sales market analysis
Coffee occupies the second position in the world ranking of the best-selling goods. The first is oil.
Without market analysis, you run the risk of opening an extremely unprofitable business.
Therefore, it is important not only to be ready to invest money and count on fast-growing profits, but also to think through every step of the organization.
Market analysis includes:
- Competition evaluationThe following situation has developed here: the take-away coffee niche is quickly filling up, as it is famous for its prospects.Many franchises operate successfully throughout the country and have already won a part of the clientele.But given that every year the number of coffee lovers is growing, and the consumer is more and more indulging, therefore, is in search of the perfect taste.Due to high competition, it is not recommended to open a point next to similar outlets.
- Definition of the target audienceCoffee to go customers are people who are in a hurry to work and study: students and office workers.In addition, the target audience can be attributed to everyone who passes by the mini-cafe.The aroma of freshly brewed coffee has a beneficial effect on the sense of smell of passers-by, who will certainly not be able to resist the opportunity to enjoy a cup of delicious drink.The main age of consumers is from 17 to 35 years old, but we do not exclude the elderly, because the love of coffee does not depend on the number of years lived.
- Description of competitive advantagesAll these institutions compete with each other, therefore, according to these parameters, it must be differentiated from others:
- Price.It should be adequate, that is, it should not be overestimated and brought to the level of full-fledged coffee houses, but it should not be underestimated either.This is because everyone compares prices, and if yours is not too different from what you can buy coffee from a regular machine, then customers will go for the second option.
- Good killing.A coffee shop with you should be located in a convenient, prominent and, most importantly, crowded place.
- The quality and variety of drinks.Of course, coffee to go is not a full-fledged coffee shop where you can enjoy many varieties of coffee, but the choice of 3-4 positions is very small.You should also pay attention to the quality of coffee beans and other ingredients.
- Values.Even in this business format, various promotions can be carried out in order to increase revenue.For example, when buying 4 cups of coffee, the fifth one is free or a 10% discount on the second one.
At this stage, a familiar situation arises – registering a company with the tax service as an individual entrepreneur or LLC.
Depending on personal capabilities and ambitions, choose the form that is relevant to you.
Then you must decide on the form of taxation.
Takeaway coffee does not require a license, but requires the collection of certain documents:
- permission to carry out activities in the sanitary and epidemiological service;
- completion of the fire inspection;
- permission from local authorities.
Choosing a place: half the success
Half the success of the future takeaway coffee depends on the right place.
It should be a crowded place with good traffic.
- To organize a stall, it is better to choose the business districts of the city: near business centers, universities, gyms.
Also pay attention to the seasons, almost everyone can become a potential client.
- To set up an “island” in the mall, choose a prominent location so that people can notice you as they leave the stores.
- If you want to open a mobile mini cafe, you have the opportunity to try your luck in different places.
Choose all the same places as in the first case, but also pay attention to bus stops, metro stations, city parks.
How to open a fast food cafe?
Procurement of necessary equipment for takeaway coffee
Despite the fact that takeaway coffee involves the format of a minibar, you need to purchase special equipment that is used in ordinary cafes and restaurants.
The equipment must be professional, so it will not be cheap.
It is also worth taking care of the bar counter, advertising pole and other points.
|coffee equipment||Cost, rub.|
|Total:||275 000 rub|
|coffee machine||200 000|
|Small refrigerated showcase|
(for storing milk, cream)
|Water filter||20 000|
|Blender and bar equipment||10,000|
|Mini coffee shop equipment||Cost, rub.|
|Total:||70 500 rub.|
As for the organization of a business related to a mobile cafe, here, in addition to equipment, the following work should be carried out:
- Buy a new or used car.
In most cases, Citroen Berlingo, Peugeot Partner or FIAT Doblo are used for these purposes.
- Turn the van into a coffee shop.
This includes installing a bar counter, installing equipment and branding a car.
The second success factor of Coffee to go is qualified and educated staff.
You must not only prepare delicious coffee, but also give advice to visitors and serve them properly.
You can take people who already have experience in this area, or find those who are ready to learn the basics of making coffee.
In total, you need to hire two people who will work in shifts.
|To express||Quantity, pers.||Salary, rub.|
|Total:||44 000 rub.|
takeaway coffee ad
When it comes to advertising coffee to go, it does not require expensive marketing tools, but you still need to think over the name of your brand and give it a specific concept.
The cabin or the car itself needs to attract attention, so you still need to make it stylish and attractive.
As promotional tools to promote your coffee in business, you can use:
- illuminated and marked signboard on the sidewalk;
- creating pages on social networks: Vkontakte and Instagram;
- order placement of banners around the city;
- brochure distribution.
You will learn how to open a cafe and pay quickly from the video:
Financial indicators: initial investment and monthly expenses
As for investing in a business, the amount of initial capital will depend on the chosen format.
So, to open a stationary point, you do not need to spend money on buying a room and re-equipping it, it is enough to pay a monthly rent.
But investments in a coffee shop on wheels can be quite large.
Here, too, there is the option of renting a converted car, but it is not always possible to find a suitable option.
For this reason, many people choose to buy a new or used car and customize it to their liking.
|Expenses||Kiosk / “island” in the shopping center||Mobile cafe on the basis of the car|
|Total:||from 390 500 rub.||from 1 273 500 rubles|
|Write down||from 10 000 rub.||from 10 000 rub.|
|Purchase of premises||—||– Buy a car – from 700,000 rubles.|
– Purchase of 2 batteries – 8,000 rubles.
– Branding and re-equipment of the car – 150,000 rubles.
|Coffee making equipment||270 000 rub||275 000 rub|
|Team for the organization||70 500 rub.||70 500 rub.|
|Purchase of overalls for employees||10 000 rub.||10 000 rub.|
|other expenses||20 000||20 000|
As for monthly expenses, they also depend on the chosen format:
|monthly expenses||Kiosk / “island” in the shopping center||Mobile cafe on the basis of the car|
|Total:||120 000 rub.||98000 rub.|
|Rental payments||30 000 rub.||—|
|Payment of utility services||5000 rub.||5000 rub.|
|Consumables (glasses, napkins) and ingredients||30 000 rub.||44 000 rub.|
|Staff salary||44 000 rub.||44 000 rub.|
|Advertising expenses||8000 rub.||8000 rub.|
|Miscellaneous and contingencies||3000 rub.||3000 rub.|
With an average cost of a glass of coffee from 80 rubles and a daily income of 8,000 rubles, you can already recoup your investment for:
- 5-6 months when opening a stationary point;
- 9-10 months when opening a drive-in cafe.
With the right business organization, the profitability of coffee to go is on average 50-60%.
With an increase in sales, you can increase this figure up to 80%.
Takeaway coffee is a promising small business that, if properly organized, can bring big profits.
The main criteria for success are favorable location, attractive design, delicious, high-quality coffee and excellent service.
Do not be afraid to experiment, offer your customers something new and interesting, hold promotions, expand the range and then people will want to buy coffee in your coffee shop on their way to work, study or a meeting.