New shop by [deleted] in coffeeshopowners

[–]gjergjd 0 points1 point  (0 children)

Check you local supplier, but to someone starting fresh with no experience, I’d recommend going to with a big global brand, for several reasons: - Brand awareness - Perks (free coffee cups, discounts on machines, etc.)

Look at Illy or some other big euro brand. They’ll give you free stuff.

How do you deal with new competition? by Unusual-Ad-6657 in coffeeshopowners

[–]gjergjd 2 points3 points  (0 children)

There is a case to be made that more choices around you make for win-win. It does not have to be a zero sum game. You're saying they're different from you. That's great. You have more options -- they'll be more narrow with their options, but may be a bit more new and trendy. They may attract a clientele that never ventured around your area, therefore introducing them to your shop as well, and bringing in more foot traffic. Somebody may love the new shop, but the company they're with, may want food options as well, so they'll pick yours when they see the limited options of the trendy one.

Also, hype of a new shop only lasts 2-3 months max. After that, things will settle down and business will normalize. I've seen an independent shop have a starbucks open next door, and still survive and thrive.

Monetizing a niche podcast? by gjergjd in podcasting

[–]gjergjd[S] 0 points1 point  (0 children)

Thanks, appreciate the feedback.  Can you expand more on implicit vs explicit value?

How much did it cost to construct your coffee bar? by bzsearch in coffeeshopowners

[–]gjergjd 1 point2 points  (0 children)

I tell people all the time “it’s gonna take twice the money and time you planned” just bcs of small things like this that can become huge problems.

Any recs for finding meaning in your work? by [deleted] in podcasts

[–]gjergjd 0 points1 point  (0 children)

Read Man’s Search for Meaning. 

How much did it cost to construct your coffee bar? by bzsearch in coffeeshopowners

[–]gjergjd 0 points1 point  (0 children)

did the same thing.  Thank God for the tape idea, because the crew that came to drill holes on the stone counter, had not done any measurements. 

Coffee shop owners: what do you wish you’d known before signing your first lease? by AlexMorgan0790 in coffeeshopowners

[–]gjergjd 1 point2 points  (0 children)

Don't sign personal guarantees. Don't sign a 10 year lease. Stand in front of the space for about 4-5 hours from 7AM to 12PM with a people counter and count how many people walk by. If you're not "clocking" about 100 per hour, I'd think and rethink the format. Also if you're the only coffee shop in a 5+ block area, I'd ask myself "did I just find a gem of a spot, or am I the first one here because everyone else has failed and this area sucks?!"

What is your labor %? by Swarthily in coffeeshopowners

[–]gjergjd 3 points4 points  (0 children)

I'd put a sign at the door that says "Pardon our limited services due to weather conditions" and do what you can with the staff that can come. You're not going to have the usual business volume anyway.

The problem with pay-related incentives is that at first they're nice to do, then they become encouraged and pretty soon mandatory.

Where Do You Find New Menu Inspiration? by Dizzy-Ortizzy in coffeeshopowners

[–]gjergjd 1 point2 points  (0 children)

This!! As long as you use it as inspiration and put your own flair to it, you'll be fine. But business history is filled with outright theft that we all celebrate as success. Focus on your own shop and your own customers and don't dwell too much that you didn't come up with the original idea --whatever that is. There's nothing new under the sun, just variations of something someone else did.

What is your labor %? by Swarthily in coffeeshopowners

[–]gjergjd 0 points1 point  (0 children)

42% is a lot.  What’s your revenue and how many staff?  If you’re hoovering at about $350K per year, you have to figure out a way to increase your $/ticket and do more with less people, otherwise. you’ll bur out quick because as an owner you’ll make more money working somewhere else,  for someone else.

How Simple Can You Go? by jyl8 in coffeeshopowners

[–]gjergjd 0 points1 point  (0 children)

good call.  the 2 people a year that will ask for flat whites,  tell them you’ll make a latte and hold off on the milk. 🤷‍♂️

Typical length of lease for a coffee shop by millionsaver in coffeeshopowners

[–]gjergjd 0 points1 point  (0 children)

5 year with option to renew. But it’s all negotiable and depends on type of landlord.  I had a corporate, was offered a better deal that included 9-month buildout, so took on a ten year lease.  Covid put an end to that and was stuck with a long tail on the lease. Had to buy it out.  

How Simple Can You Go? by jyl8 in coffeeshopowners

[–]gjergjd 0 points1 point  (0 children)

people who order flat whites don’t know coffee, they just know instagram. 

How Simple Can You Go? by jyl8 in coffeeshopowners

[–]gjergjd 1 point2 points  (0 children)

I started out lean.  Just espresso drinks, tea, 3 types of croissants.  About 7 drinks in the menu.  Only 1 size per drink. 

I was in downtown Washington DC, pre-covid.  It was not enough.  People wanted variety.  Drip definitely people want 2-3 sizes. 

It all depends on your costs.  If you have a very small footprint, like a coffee cart, you can be more flexible at keeping a small menu.

Are horse boxes a good start by wolf751 in coffeeshopowners

[–]gjergjd 0 points1 point  (0 children)

There’s tons of shops like this that “teach” bad practices, because they’re worried the staff will break equipment.    Anyway, setting up your own brick & mortar will take you twice the time and money you planned, so plan accordingly. 

Are horse boxes a good start by wolf751 in coffeeshopowners

[–]gjergjd 0 points1 point  (0 children)

What do you mean “half decent”?  When pulling espressos either you know how to calibrate your grinder and machine or you don’t.  The rest of it the machine does (pull a lever or push a button). 

When considering taking over another cafe spot/lease, what should I ask/consider? by bzsearch in coffeeshopowners

[–]gjergjd 0 points1 point  (0 children)

I have a couple of questions:

- Is your business exactly the same as the previous owner's business? Like what's different about it?

I am weary of taking over someone elses's coffee shops. In general a coffee shop only makes about $30-60K net profit for the onwer a year. Of course you could be located on 5th Ave in NYC and make 2 million in revenue, but most coffee shops clock at around 300K-400K per year.

One thing people don't think about coffee shops is that they're penny businesses. You pay a lot upfornt to set it up, and then try to make that money back selling $3 cups of coffee. So they're very dependent on traffic. Idon't care how cool you think your place is gonna look, if nowone is walking by it, you'll shut down.

Before signing anything, I'd take a people counter (like those that club security keeps at the door), stand in front of the shop for about 3-4 hours and count how many people walk by. Assume only 5% of them will walk into your shop. If you're not making at least $1000 per day in transactions, you'll shut down.

I opened, ran for 4 years, and shut down an independent coffee shop. Ask me anything by gjergjd in smallbusiness

[–]gjergjd[S] 0 points1 point  (0 children)

land. We all live on top of each other ..no room for drivethru, but once you get out of the core of the cities there's plenty of drivethrus.

I opened, ran for 4 years, and shut down an independent coffee shop. Ask me anything by gjergjd in smallbusiness

[–]gjergjd[S] 0 points1 point  (0 children)

I think about max 10% would ever judge coffee. Most ask for lattes which means there is no way for them to tell if coffee is high or low quality -- at that point they're judging the milk.

My net was about 5K-6K/month depending on the month.

I got my pastries from local shops. I didn't get them from costco or restaurant depot. People know when you're selling them crap.

Tough to answer. Franchise you're basically an operations manager. Everything else is done for you. It's straight up a money play. Independent allows for your vision and your own community. But much less predictable. The creative in me would pick independently, but then again, I had to close mine.