Opening a coffee shop in India can be a dream come true for many people. Just imagine the sound of the espresso machine, the aroma of coffee, and your happy customers enjoying it. Well, you can experience this every day by running your coffee shop.
The prospect of running your profitable coffee shop business in India and being financially independent is incredibly appealing. But how do you get there? How to start a coffee shop? What are the essential steps to launch a coffee shop in India? What are the requirements to run a coffee shop in India? You must have these questions in your mind.
In this blog, this is exactly what we are going to talk about. From developing a business to choosing the right coffee café franchise in India, we will guide you through the entire process in this blog.
Here’s your detailed guide and tips to start your coffee shop in India this year.
Indian Coffee Market Landscape
The Indian coffee market has seen an upsurge over the past two decades and is developing by 10-15 percent every year. It has witnessed a large growth in the number of coffee lovers. This has escalated the demand for coffee shops in India. Some of the common factors driving the demand for coffee café in India are global exposure, lifestyle changes, coffee cultivation in India, etc.
Now, you must be thinking if the coffee cafe business is profitable in India.
Certainly! The coffee cafe business in India is profitable. The demand for coffee has risen and people’s demands and preferences have evolved due to which coffee shop franchise businesses have thrived. India is the major coffee producer in the world. And many branded coffee chains in India have preserved a legacy of brewing excellence. The coffee shop business in India is indeed a profitable business for new entrepreneurs.
However, like any other business, the success of a coffee shop business depends on various factors like location, competition, type of coffee franchise, marketing strategies, quality of products, and product price. Hence, you need a solid business plan and strategy to maximize your chances as a successful entrepreneur in the Indian coffee market.
The Basic Scopes of a Coffee Shop in India
When planning to start your coffee shop in India, you have to consider the basic options first. Here’s what we mean with the basic coffee shop options:
- Start Your Own Business
- Invest in Existing One
- Buy Coffee Franchise in India
Start Your Own Coffee Shop in India
Start from scratch if you want to have your own brand and be an entrepreneur. With this, you get more flexibility and liberty. You can decide the operating hours, you will make the major decisions related to branding and promotions or deals and offers.
Invest in an Existing One
You can invest your money in a coffee shop that is on sale or in need of renovation. Some coffee shop owners who face financial or health issues may want to sell their businesses. Have a keen eye for grabbing such opportunities. Buying an existing shop in a good location will be a great deal for you.
Own a Franchise
One of the best ways to operate a coffee shop in India successfully is to invest in an established and successful business model. Invest in the coffee franchise in India. From staff selection to buying equipment, employee training, branding/marketing, and interior designing of the café, you get end-to-end solutions to start and run your shop.
Essential Steps to Launch Your Coffee Shop in India
We break down the process of starting a coffee shop in India into easy steps so that you can make your dream of owning and running a coffee shop a reality.
1) Have a Solid Coffee Shop Business Plan
Before you start digging into the essential steps to launch a coffee shop in India, it’s crucial to have a solid plan in place. Many young overly passionate business starters do not take this step seriously. Hence, make sure you are not like such aspiring entrepreneurs. Rather, you should be the one who has a solid business plan in hand that will help you in the long run.
Here are the top key points to start your plan:
- What type of coffee shop you will open? And what kind of customers will you manage?
Whether you want to open a standard coffee shop, chain cafe, espresso bar, or other.
- Who will be your competitors?
Research the market to know your competitors and their whereabouts.
- How will your business become profitable?
If a franchise chain will work or you will have a new startup.
- Set realistic goals.
- Have an idea about the equipment needs, budget, target market, price structure, employee needs, food and beverage offerings, etc.
Envision Yourself as a Coffee Shop Owner
You will never see the challenges you may encounter during your journey until you won’t imagine yourself as a coffee shop owner. Set your mind to open a coffee shop. As a result, you will be ready with the backup plans if something goes wrong.
Think about the things you will need to open your coffee shop in India.
Have the Right Mindset
No matter how hard you try, some people would doubt your skills. But, you shouldn’t listen to them and believe in yourself. Stay positive and focused. Believe in your dreams.
When will you make your first real money? This can also make the process complicated for you. However, it would be best if you did not worry about it as coffee shop businesses are rapidly growing, and the return on investment in this industry has high potential. But that doesn’t mean it will become an overnight success story. You will have to work hard for it.
Let’s see the next steps to open a new coffee shop in India.
2) Set Your Budget to Start a Café in India
On average to start a coffee café in India, you need Rs. 5-10 Lakhs. However, the cost varies depending on several factors. If it is a startup the cost can go up to Rs. 25 Lakhs. And, if you want to invest in popular coffee franchise chains in India, it starts from Rs. 3 Lakhs.
Now, it’s up to you whether you want to start your own coffee shop brand or buy a coffee franchise in India.
Whatever the case is, here is a breakdown of the common costs you can expect:
- Rent
- Equipment
- Inventory
- Furniture
- Staff salaries
- Marketing and advertising cost
3) Find the Right Location to Open a Coffee Shop in India
This step and the previous ones go hand in hand. You must include this step while planning and budgeting. Finding the right location is a crucial part of your coffee shop success. The perfect location for your coffee shop would attract more customers and guarantee good ROI.
If you are planning to open a coffee shop in an unknown city, local market research and customer behavior will help you a lot. Here are a few important things to consider for the location that can significantly affect your success:
- Location demographics
- Competition in the area
- Accessibility
- Shop visibility
- Traffic
- Budget
4) Create a Floor Plan for Your Cafe
The setup or ambiance of your café plays a vital role in attracting customers and promoting repeat customers. You will have to plan it according to the target customers. While creating a floor plan think about the space you need for your customers to form a line. Also, lay out the seating area for your customers. Make sure the space is functional for your employees as well. Visualize everything keeping the size of your shop area in mind and put it down on paper to have a clear concept of the café interior.
5) Purchase Equipment and Tools to Open a Coffee Shop
Let us share a few essential equipment and tools that you need to operate your coffee shop in India smoothly.
- Brewing Equipment
- Coffee grinder
- Drip coffee maker
- Espresso machine
- Water filtration system
These are such important parts that no coffee shop can go without costing you approx. Rs. 8.5 lakhs. With this, you know how expensive opening a coffee cafe franchise outlet in India can be. And this is the reason why most people buy coffee franchises in India. because they get from start-to-finish assistance at an affordable price.
Here are some other important things you would need to operate your café:
- Coffee beans and teas
- Cups and containers in different sizes
- Straws, stirrers, napkins, etc.
- Drinks and food
- POS Systems and other Financial Software for billing and taking orders
5) Registration of Your Coffee Café in India
If it is your startup business then the next step is to register your business. You must think of a unique but appealing name free of any copyright issues. While commencing a coffee shop in India, you will have to take some legal steps. Here are the types of legal licenses you need and the registration process you follow to start a coffee shop in India:
- Obtain the appropriate business registration,
- To protect your brand, do trademark registration
- GST registration
For a smooth operation of your café business in India, you need some licenses to ensure the safety of consumer health and food quality. Here are the types of licenses you need:
- FSSAI License
- Health/Trade License
- Eating House License
- Signage License
6) Find Staff and Employees for the Smooth Operation of Your Café in India
Every business’s face is its employees. People recommend a coffee shop to other friends and families based on the staff’s friendly behavior. Also, to serve your customers you need a skilled team member. So, start your hunt for the best employees.
However, you must know how many staff you need for your coffee shop in India. For a medium store, you will need 5-6 staff members whereas you need 8-12 employees to operate a large store.
The type of staff you will have in your café include:
- Manager
- Baristas
- Cashier
- Accountant
- Baker
7) Promote Your Business
The final step in launching your coffee shop in India is to market your business. You are new to the industry and no one knows you. Both online and offline marketing help you to reach the target audience. They will get to know a new coffee café has launched in their area. Hence, you should be very active on all the major social media platforms.
Here are some tips for marketing your business:
- Have your website, post regular blogs, and share them on social media.
- Always post on social media about your new offers and discount deals
- Have a buy 1 get 1 offer.
- Create your niche and stay consistent.
- Actively engage with your customers.
Final Takeaway to Open a Coffee Shop in India
Commencing a coffee shop in India can be a rewarding experience for you. However, you must have a solid plan in place and be prepared to face any challenges. The cost of starting a new coffee shop also varies depending on the area size, location, equipment, etc. The café business in India is rapidly growing hence, it serves as a great opportunity for all aspiring entrepreneurs. And, to succeed in this industry, follow the steps we have already discussed in this blog to launch your coffee shop in India.
If you have any doubts related to coffee shop franchise business, you can always reach out to us at 8353912234. We offer exciting business opportunities to all aspiring entrepreneurs that make them a part of this thriving business.