How to be a successful cafe owner (2024)

The following article is based on thechapter "attributes of a successful cafe owner"from "The Complete Guide to Buying a Cafe" by cafe expert Craig Reid.

Craig's books are available for purchase via his website www.thecafeninja.com

Knowing where your strengths and weaknesses lie is an essential part of running your business, since those facets determine your style of management.

If you are thinking about buying a cafe, there are a number of crucial questions you should ask yourself which can help you to identify the role which would suit you best.

Are you a people person?

A significant part of life in a café revolves around dealing with customers. No matter how good your food is, if you can’t make people feel welcome, they won't continue to bring you their custom. Equally, if you are unable to cope with the pressures of facing difficult customers, you will be unable to maintain a pleasant atmosphere in the café and your business is likely to suffer.

However, if this aspect worries you, as the owner, you can simply choose a more suitable role; try making the coffee, rather than serving, for example. The important thing is to recruit staff who have the attributes you lack.

Are you well organised and numerate?

Good time-management skills are vital, so you can ensure suppliers and staff are paid in a timely and accurate fashion and appropriate supplies are ordered when necessary, as well as other crucial aspects of a business' day-to-day running, such as completion of accounts and advertising.

Obviously, to cope with complicated financial issues, your numeracy skills must be of a high standard. If you don’t have sufficient capability, there is plenty of expert assistance available, as long as you recognise the necessity to ask for it.

Are you IT literate?

Whatever level of involvement in the financial dealings of the café you feel able to undertake, you will need a reasonable amount of competency at using IT. Software packages will make life easier for you, if you master their use, and the higher the percentage of the accounts completed by you, the less you will need to rely on your accountant.

This will save you money. Additionally, much of your communication can be carried out more efficiently using the internet, via e-mail and through your website and social media, providing a low-cost additional form of advertising.

Are you physically and mentally strong?

The food industry is a hard taskmaster. You can be certain to spend long hours performing physically demanding activities such as serving customers, cleaning work spaces and organising heavy containers of supplies.

Furthermore, you will need to withstand a considerable amount of stress, most of which relates directly to running a business. In busy times, you will have the stress of providing a good service in a limited time, while quieter periods can bring the stress of lower earnings.

Which role should you take?

By answering these questions honestly, and also by appraising your general skills and preferences, you will gain insight which will equip you to decide what your optimal role would be within the business.

You must assess how much trust you could place in others, for the purpose of delegating, and weigh up the pros and cons of each position. When all is said and done, it is likely that the role you adopt will be the one for which you are most suited.

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How to be a successful cafe owner (2024)

FAQs

What skills do you need to be a café owner? ›

Excellent customer service skills are essential for creating a loyal customer base and a positive atmosphere. Leadership and team management: A coffee shop thrives on teamwork. Being able to recruit, train, and motivate your staff is key to maintaining high service standards and a productive working environment.

Is running a café hard? ›

It is no secret that starting any business from scratch isn't easy. If you dream of owning a coffee shop, however, with hard work, solid experience, analytical skills, and a well-designed business plan, you can succeed. Understanding the economics of owning a coffee shop is a vital step in making your dream a reality.

How can I be unique in a cafe? ›

Incorporating a combination of novel elements like ambiance, menu, and customer service can set your café apart from the rest. Creating a unique café atmosphere starts with the design and décor. It's essential to invest in an interior that reflects your vision and highlights your brand identity.

How to increase profit in a cafe? ›

To maximise profit, a cafe can create a strong brand, increase footfall, offer clever promotions, provide customization options, host events, and ensure the pricing strategy is right. Remember, a strong brand and clever promotions can go a long way in boosting profitability!

How should a café run? ›

Cafes thrive on aesthetics and presentation. Make sure that you're showing off your beautiful decor as well as your quality food and drink selection. You can even run seasonal menus that will be available for a limited time only. Share these on social media and create a buzz around your cafe.

What makes a café profitable? ›

Coffee shop revenue depends on factors such as location, menu offerings, and labor costs. Major expenses for coffee shops include rent, wages, and cost of goods sold, which influence profit margins. Choosing the right location is crucial for attracting customers and achieving success in the coffee shop business.

What is the role of café owner? ›

The café owner manages a café, ensuring customer reception, drink preparation, and overall establishment management. This role requires versatility, a sense of service, and management skills.

How much can a café owner make? ›

Coffee shop owners' salaries can vary depending on factors such as location and business success, with average earnings ranging from $30,000 to $100,000 or more per year. Calculating profit margin is crucial for assessing your coffee shop's financial health, and it can be determined using a simple formula.

How can I be a good café manager? ›

Café managers should be motivated but also know how to motivate their teams. They should have integrity and responsibility. But they should also have empathy and understanding of people in order to succeed in this service-oriented business.

How profitable is owning a café? ›

The average profit margin for a cafe ranges between 2.5% and 6.8%. However, if a coffee shop also roasts its own coffee, the profit margin can increase to 8.79%. Maximizing profitability requires a combination of efficient operations, effective marketing, good location, and managing COGS.

How much does a café owner make a year? ›

On average, small coffee shop owners make between $60,000 and $160,000 a year. The coffee industry generates approximately $70 billion a year in sales nationwide, with coffee selling at higher profit margins than other food products.

What is the success rate of opening a café? ›

However, not all coffee shops are successful. According to an April 2019 survey, around 62% of independent coffee shops fail within the first five years of opening, while 17% close within the first 12 months.

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