Owning a cafe does not have to be expensive, complicated, or an unattainable dream. People around the world do it daily on low budgets. It is helpful to know some marketing basics to make your cafe a success. Buying cafe equipment like a small commercial ice maker can be costly if you do not know where to look for the best prices. The final step is renting a space. Use these tips to get started on opening a cafe on a low budget.
Ask for Help
Brainstorm all the people you know who can help you launch your new cafe. Do you know anyone who can plan a social media marketing campaign? Someone who is good with numbers? Someone who can tell you more about the neighborhood you want to work in? Get all those people into a meeting and plan together.
Know the Four P’s of Marketing
When planning for a new business of any kind, it is important to consider the four Ps of marketing:
● Place: Where will the cafe be located?
● Product: Will you sell anything besides coffee? Pastries? Lunch?
● Promotion: How will you advertise your business? What promotional offers will you give?
● Price: What is the right price point for your product? From your location, your target customer, and the cost of operation.
★ People: It is common to add a fifth P for People. This refers to your target market as well as your stakeholders. Stakeholders are everyone with an interest in your business.
- Create a Target Population
To decide what to sell at your cafe, you must know who you want to attract. Take notes on your existing plans first. What do you envision? Do you have a theme in mind? A particular neighborhood, style, or price point? You may start with an idea for a businessman’s lunch spot, college kid’s hangout, morning coffee hub, or something else. Go with your gut and build from there.
Draw a map on paper of your ideal customer:
–Demographic (age, gender, education, employment, ethnicity, etc.)
–Geographic (zip code, city, state, etc.)
–Psychographic (socioeconomic class or lifestyle preference)
Use this information to write a ‘day in the life’ of your customer. Who is she? What does he like besides coffee? What does she do all day? Does he have pet peeves? See if you can get inside his or her head. Use the information you generate to inform your next steps.
Research Kitchen Equipment
Make sure to only buy commercial-grade beverage equipment. It is not worth risking your customer’s or employee’s health and safety to save a buck. It’s a good idea to buy only new equipment since used machines are prone to bacteria. Look for the NSF (National Sanitation Foundation) logo on all your equipment. If you don’t have it, the health department may fine you. When you are working on a low budget, buy only what you need. For example, a small commercial ice maker is essential for iced coffee and blended drinks. Buying things that don’t increase productivity is a waste. Careful planning and research will give the best results.
SC Beverage is the preeminent company serving all your beverage needs. We provide sales and distribution of a wide range of manufacturers. Contact SC Beverage today to learn more about commercial ice machines!
Decide on a Location
There are several low-cost location strategies to consider. The first is opening a cafe inside an existing business. You could buy a coffee cart, which can be set up anywhere. Or you could have a cafe in a museum, bookstore, music venue, or shared workspace.
The next idea is to sell at farmer’s markets. This gives you a chance to see if setting up a coffee business is really what you want to do. It also gives you a controlled environment in which to test your product. You will need a permit, a business plan, and your product.
You could also buy a food truck and use it as a mobile coffee shop. Like a coffee cart, this gives you the opportunity to move from location to location. When one market dries up, you’re on to the next. It is lower cost than renting a building space and you own the truck fully.
Finally, you can take the tried-and-true option and rent a shop. This may cost a bit more than the other options on the list. The good news is you can bring your dream to fruition. A shop is a good longer-term option. So, if you have confidence that your business is going to last, this could be the right move for you.
Small Commercial Ice Maker and Other Beverage Equipment
SC Beverage is the preeminent company in the beverage service industry. Since 1998, we have been an installation and service agency in the Southern California area. We provide service to any beverage equipment needs including sales and distribution of a wide range of manufacturers. Contact SC Beverage to get your new cafe started on the right foot!
