If you are a regular coffee drinker, coffee takes a considerable chunk of your budget each month.
You probably enjoy visiting various coffee shops to buy your preferred type of coffee. Have you ever thought of owning a coffee kiosk?
Millions of Americans buy at least a cup of coffee every day. Setting up a coffee kiosk in a prime location can earn you between $ 50,000 and $ 250 000 yearly.
You may think it takes a lot to open a coffee shop, but you’ll be surprised at the little capital you need to own one. Here is a breakdown of each essential item you need to start a coffee kiosk business.
The Basics you Require to Start a Coffee Kiosk
You need a few essential items to start a coffee kiosk. These are;
- A business premises
- Business permits
- Furniture and decor
- Coffee brewing supplies and equipment
Let’s look at the money you need to cover the cost of these coffee shop necessities.
1. Rent and installation costs
The real estate costs in the area where you set up your coffee shop will determine your rental costs.
You can set up a coffee shop in an office building, a busy shopping mall, or a residential area.
Storefront property rent for coffee shops in a good area usually costs between $ 1,250 and $ 3,500.
There is also the option of having a mobile coffee kiosk in a food truck which costs about $37,876.
It would be best if you got a licensed contractor to set up your coffee shop decor, which will cost you between $ 600 and $ 5,000.
2. Business Permits
A business attorney can help you register your business and file for any necessary licenses.
Using a legal professional for this part of your business journey is better because they will protect you from future legal issues. It costs between $ 100 and $ 400 an hour to hire an expert business lawyer.
A business license for your coffee shop may cost you between $ 50 and $ 125. Other permits to consider are;
- A retail food license that costs about $ 40 – $ 75.
- A sign permit that costs about $ 50 – $ 250.
- A food handler permit that costs $ 5 – $ 15.
- A health permit that costs $ 50 – $ 1000.
Consider visiting second-hand furniture stores for coffee shop furniture to get your coffee shop off the grounds. There is always room to improve your decor once your business picks up.
The amount you can expect to spend on furniture for your coffee shop is $1500 to $3000.
4. Coffee Brewing Supplies and Equipment
To start a coffee kiosk, you need basic coffee-making equipment such as a coffee maker, refrigerators, a water filtration system, and a dishwasher. These may cost between $ 2,500 and $ 15000.
Inventory for your coffee shop may cost you between $ 300 to $ 5000. That will cover the cost of coffee beans, milk, sweetener, coffee filters, napkins, and coffee stirrers necessary for making and selling coffee.
5. Labor Costs
Coffee shops have lower staff costs than other businesses, especially if you plan to assist in coffee making or serving.
A waiter in a coffee shop is paid $29,010 yearly, while a barista is paid an average of $ 31,960 a year.
Many businesses benefit from setting up payroll software which costs about $ 200, and accounting and invoice software which costs $ 50, to keep their books in order.
You can also set aside some money to advertise your coffee shop. Successful small businesses spend about 5% of their annual revenue on advertising and marketing.
These funds are spent on attracting customers to their establishments through social media marketing, hosting marketing events, and website creation.
A domain name will cost you between $ 12 and $ 200, while an Email hosting service will cost between $ 1 and $ 5 to set up. You can also use google ads to market your business which costs up to $ 300.
Where do you Get Money for your Coffee Kiosk?
You can start a coffee kiosk with your savings or borrow money from friends. Banks are also willing to lend money to business people with sound business plans.
We’ve given you a breakdown of how much it costs to run a coffee kiosk to help you create a realistic start-up budget.
Use it to outline the start-up capital for your coffee kiosk business. The realistic budget to have is between $ 60,000 and $ 200,000, depending on the size of your kiosk or coffee shop.
You may also set up a coffee franchise kiosk. That will necessitate you to pay an initial franchise fee of about $ 39,000 to the franchise owner and commit to giving them a part of your profits.
Now you know the answer to “how much does a coffee kiosk cost?” It’s good to note that these are just start-up costs.
You will likely spend 75 percent of your sales on running your kiosk. That will leave you with a minimum profit of $ 60,000 a year.
If you look for business premises without high overheads, you can break even within two or three years. Start the journey to owning a successful coffee kiosk today!