What is the Best Location for a Coffee Shop?

02nd October 2024

Owning a coffee shop can be a great idea. You get to meet new people all the time while taking life at a slightly more relaxed pace than if you were in, say, app development. And there’s nothing like the ambiance of a coffee shop: comfortable seating, lowlights and a library-like level of discourse. Of course, before you can immerse yourself too deeply in the marvellous aspects of coffee shop ownership you need to ask one very important question: “What is the best location for a coffee shop?”

Why Location Matters

There is no way to underestimate the power of location. One area can be non-stop hustle and bustle all day with a steady stream of customers and yet, one block away, crickets. If you want to be sure your coffee shop becomes a neighbourhood mainstay and not something that comes and goes without anyone noticing you will pay close attention to the following key considerations:

• Foot traffic: You will want to personally investigate areas you are considering in order to see if they have the necessary levels of foot traffic. If the location you had in mind turns out to be little more than an attractive ghost town you need to look elsewhere. Areas near universities, cultural attractions and busy shopping districts are good for generating foot traffic.
• Visibility: Okay, you found the ideal area near a popular attraction but the cost to secure space on a busy street there seems prohibitive. So, you put your coffee house 25 meters away on a side street. The result? 3 customers per day. What happened? 99% of people will not go out of their way for something, even if that just means turning the corner.
• Competition: A little competition can keep you on your toes and ensure you always provide a quality product. Too much competition can spell the end for your coffee shop before it ever gets off the ground. Take a close look at that area you like so much, keeping in mind there are only so many customers to go around.

Business is a real-world exercise. There is no place for pie-in-the-sky thinking or ignoring unpleasant truths. If you can find a legitimately good location that dovetails with your budget you have a chance to succeed. On the other hand, if you convince yourself that a poor location can be somehow made into a good location, well, good luck with that.

Can You Afford It?

You may have found the ideal location with lots of foot traffic, high visibility and little competition. Now there’s only more question to ask: “Can I afford to open a coffee shop here?” You have to sit down and do a realistic assessment balancing costs against potential revenue, and both figures need to be firmly grounded in the real world.

As far as costs go your biggest single one will be rent, which, depending on location, may be several thousand pounds per month, or more. After that you will have to consider the cost of building the space out to your vision, buying the equipment, the cost of various permits, the cost of hiring staff and more. Can you sell enough coffee and muffins to cover all those costs and provide a little something for yourself as well? With the right location, probably. With a bad location, no.

The Bottom Line

Finding the right location for your coffee shop won’t be easy. But if you remain patient and persistent you may well find what you’re looking for. If that happens make sure you source your beans from John Street Beverages. We provide the finest coffees and blends from all over the world.

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