It doesn’t matter what time of the year it is when it comes to beverages. India has countless season-specific drinks and eateries. But how to begin your journey to open your dream cafe?
You can smoothly set your feet in the cafe industry by following this step-by-step guide. It is estimated that the cafe industry in India will escalate 6.9% a year to Rs 4,540 crore by 2023. Just prepare yourself well before and hit the right chord. Why do most restaurants fail in their first year?
Checklist To Open A Cafe
The thriving food and beverage industry makes it very challenging to open a cafe. To deal with the competition it is essential to plan in advance and execute it skillfully.
1. Figure out your Vision
Clarity on your intentions can help you fight the competition with ease. Figure out your mission, vision, and motto. Knowing what you are seeking to accomplish helps you stand out from the crowd. Having clarity of goals will also assist you in finding your Unique Selling Point.
- Why should people visit you?
- What is your specialty?
Why exactly you need to open a cafe should be your concern. Once you have found that you are good to go.
2. Analyze the Market
Survey the market you want to set your foot in. Analyze your target competitors and examine the trajectory of their business. Then decide for yourself.
- Who is my target audience?
- What does my target audience prefer?
- How much can I spend?
- How much profit should I expect?
- Which beverage and snack will sell more in my target market?
- Where do I want to open my cafe?
Even before buying a place for your cafe inspect the demography of the place minutely. Think about whether you want to start from scratch or renovate or rent a place. Don’t forget to check why the previous owner is letting out a cafe. Do your research well before moving on to the next step.
3. Prepare a Blueprint
Keep a rough idea of your budget at the back of your mind while building the blueprint.
Developing a blueprint gives you an exact picture of how will your cafe look. List out the following questions before starting your blueprint.
- How is your cafe going to look?
- Do you need an architect to design your cafe and its floor plan?
- How would you like its ambience to be and what furniture will go with your decor?
- How many professionals do you need and how many can you afford? Decide the salary that you can offer.
- What equipment will you need?
- Are considering serving online?
Now jump to figure out your budget.
4. Do the Maths
Finances are indeed the most important part of opening any business. Have you considered hiring a consultant for your cafe?
You need to be ready with your startup capital. You require enough capital to sustain your business in the initial months. In the beginning, you have to cover the cost of establishment, paying staff, and any other expenses from your own pocket.
Figure out how much capital you can put from your side otherwise try to incur money from outside sources. Loan money or look for a business partner.
Always estimate your expenditure to be a little higher than expected to cover up sudden expenses. Avoid the mistakes many businesses make in the initial years.
5. Get Required Licenses
To open a cafe you need to get multiple licenses. Right from getting your business registered to get a Shop and Establishment license. Know all the details to get Shop and Establishment license for your cafe here.
Starting a cafe also requires you to obtain a trademark registration, GST registration, FSSAI license, and necessary license for eating, and playing music. Don’t forget to issue a fire security certificate and obtain suitable insurance for your cafe.
6. Hire your Team
The owner cannot cook, bake, clean, and manage finance all by themselves. A restaurateur needs professionals to establish the cafe of his dreams.
Once you have decided how many professionals you need and how much you can spend go ahead to begin recruitment.
Train your staff well and offer them a good space so they stay longer with you. Keeping the same staff for a long period is always beneficial.
7. Prepare your Menu and Equipment
While doing the market analysis, you have to keep an eye on what your target audience prefers. Everybody now knows what a cappuccino or croissant is. Definitely keep the regular items but also look for items that will make you distinguished from your competitors.
Once you have finalized your menu, get ready to buy the necessary equipment and crockery items. Make sure you don’t miss out on any special requirements. It is best to prepare a category-wise list of equipment and machinery like ovens, refrigerators, frothers, and coffee machines before you begin to shop.
8. Market your Cafe well
Marketing is more crucial than you can imagine. The right marketing can make all the difference for your business.
Reach out to customers online even before you start your cafe. Keep giving suitable sneak peeks of the cafe at every stage of its construction. Build an excellent social media presence.
Once your cafe is ready to unveil, host an opening event with a good discount or offer to attract customers. Giving a flat 50% discount on the first few purchases is always a good idea to make your customers acquainted with your services. Make sure you leave a good impression on your customers and just continue to serve the best you can.
Another important step is to stay resilient and optimistic. It will take time to start getting profit from a cafe business. Your cafe will take time to spread its charm. It happens steadily by gaining the trust of your customers so serve them well with utmost care. It is always advisable to contact a restaurant consultant for clarity and exact figures.
Hope this step-by guide helps you in opening your cafe. Keep yourself updated with recent news in the Food and Beverage industry by following us on Instagram.