How to Start a Coffee Shop Business?

Want to start a coffee shop? An exciting business idea that is? Congratulations, you’ve come to the right place.

Coffee shops are a great way to make money. Most coffee shops are small, family-owned businesses that people from all over the world frequent. The number of coffee shops in the United States has steadily grown and is expected to increase.

As a coffee lover, you want to set up the best coffee shop and start serving the finest coffee. But more importantly, you want to start as soon as possible. You can start selling coffee through internet marketing and advertising.

To start a coffee shop, you’ll need to know what equipment you’ll need. You’ll also need a large enough area to store your equipment.

Choosing Location for Coffee Shop

Choosing a perfect amazing location for a coffee shop is very important. It is the best type of service in which the customer feels relaxed and can enjoy his/her favorite cup of tea or coffee.

How much amount do you need to start Coffee Shop?

The average coffee shop can cost around $100,000 to $300,000. However, small coffee shop businesses like espresso stand typically cost around $15,000 and $30,000.

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Equipment costs for a coffee shop

A great quality commercial machine will set you back at least $9,000 to $15,000.

Other costs you’ll need to consider include:

  • Coffee maker – $400 to $3,000
  • A Water Filtration System – $1,500 to $10,000
  • Coffee roasters – start from $2000
  • Espresso machine – $500 to $3,000
  • Refrigeration system – $500 to $12,000
  • Commercial blenders – $200 to $600
  • Grills, Ovens, Toasters – $50 to $600

Hiring a Staff

If you want your business to be successful, you need to have a skilled staff.

Another ongoing expense you’ll need to factor in is inventory. Paper cups, Coffee beans, Napkins, Filters, Straws, Lids, Drinks, Sandwiches, etc


Every business needs marketing. Small companies usually spend between 6% to 10% of their revenue on marketing each month. Take advantage of Social Media. You can start as little as 5% of your total budget on marketing.


As a coffee shop owner, you are required to keep paperwork for your own business. The nature of your business determines how much paperwork you need to maintain. And also depends on the type of coffee shop you have.

If you want to own and run a coffee shop, there are many licenses and permits you need to obtain. Among the most important licenses are:

Business License

You must need a Business License to run Coffee Shop.

Food Service License

You need a food service license which the city health departments issue.

Certificate of Occupancy

A Certificate of Occupancy certifies the property’s use.

Employer Identification Number or EIN

The employer identification number is used by the IRS for tax purposes.

Starting a coffee shop can not only be the start of many great careers but it can also be a good source of passive income. Coffee shops are just like any other business. You just need to be able to take care of your customers and run your business well.

We cleared the most important things about how to start a coffee shop business. Hope this helps!

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