With coffee shops growing by 2.4% annually and young adults flocking to them, it’s no wonder many entrepreneurs are exploring this opportunity. But how much does it really cost to open a coffee shop?
From cozy stands to full-service cafés, this guide breaks down the average startup costs, essential expenses, and whether owning a coffee shop is truly worth the investment.
💡 Key Takeaways:
- Depending on the size and concept, coffee shop startup costs can range from $60,000 to over $400,000.
- Starting with a smaller setup and a focused menu can significantly reduce initial expenses and risk.
- KORONA POS offers an all-in-one solution to streamline operations and support your coffee shop’s growth from day one.
How Much Does it Cost to Open a Coffee Shop?
On average, opening a coffee shop can cost anywhere from $60,000 to $400,000, depending on the size, location, and concept. However, it is possible to open a coffee shop for less.
To avoid the overhead of a permanent location, you can opt for a food truck or partner with local businesses to open a pop-up coffee shop in their stores on certain days of the week.
Total Cost to Open Different Types of Coffee Shops
Here’s a quick breakdown of typical cost ranges based on the type of coffee shop you’re planning to open.
Type of Coffee Shop | Estimated Startup Cost |
Coffee Shop with Seating Only | $80,000 – $275,000 |
Coffee Shop with Drive-Thru Only | $100,000 – $300,000 |
Coffee Shop with Seating + Drive-Thru | $200,000 – $400,000 |
Coffee Kiosk / Stand | $50,000 – $100,000 |
Mobile Coffee Truck / Cart | $25,000 – $85,000 |
Franchise Coffee Shop | $250,000 – $600,000+ |
Coffee Shop with Seating Only
A traditional coffee shop with indoor seating usually costs between $80,000 and $275,000. These costs cover furniture, interior design, kitchen equipment, and space rental or renovation.
Coffee Shop with Drive-Thru Only
Drive-thru-only shops typically require $100,000 to $300,000 to launch. While they save on interior furnishings, they need specific permits, site development, and optimized workflows to serve high volumes quickly.
Coffee Shop with Both Seating and Drive-Thru
The most expensive option combines seating and drive-thru elements, ranging from $200,000 to $400,000 or more. However, it allows you to reach both sit-in and on-the-go customers, increasing your potential revenue.
Coffee Kiosk or Coffee Stand
A small stand in a mall, office lobby, or busy corner can cost as little as $50,000 to $100,000. With low overhead and a compact setup, this is a great entry point for first-time owners or low-budget startups.
Mobile Coffee Truck or Cart
Starting a mobile coffee business typically costs $25,000 to $85,000, depending on whether it’s a refurbished vehicle or custom-built cart. This flexible option is ideal for catering events, festivals, or testing locations before opening a physical shop.
Franchise Coffee Shop
Depending on the brand, buying into a franchise can cost anywhere from $250,000 to over $600,000. Franchises, like Starbucks, often include training, marketing support, and a built-in customer base, but they also come with franchising fees and ongoing royalties.
Breakdown of Coffee Shop Startup Costs
From location and rent to equipment and staffing, knowing what to budget for when opening a coffee shop is essential. Below, we break down key startup costs to help you estimate what it takes to get your dream café off the ground.
Startup Category | Estimated Cost Range |
Rent (monthly) | $2,000 – $12,000 |
Build-Out / Renovations | $30,000 – $150,000 |
Equipment (Espresso, Grinders) | $15,000 – $40,000 |
Licenses & Permits | $500 – $5,000 |
Marketing & Branding | $2,000 – $10,000 |
POS System | $1,000 – $5,000 |
Initial Inventory | $5,000 – $15,000 |
Staff Hiring & Training | $10,000 – $25,000 |
💰 Coffee Shop Cost by Square Foot
Build-out costs can range from $150 to $300 per square foot, depending on your design choices and renovation needs.
Renting space varies by region:
- New York City: $8,000–$12,000/month
- Los Angeles: $5,000–$10,000/month
- Austin: $3,000–$6,000/month
- Midwest (smaller towns): $2,000–$4,000/month
📍 Location
Location affects everything—from foot traffic and rent to the number of employees you must hire. A busy urban corner will cost more but bring visibility and higher sales. Lower-rent suburban areas may offer more space but require stronger marketing efforts.
⚙️ Coffee Shop Equipment
Expect to spend $10,000–$25,000 on essential coffee shop equipment, including grinders, brewers, blenders, and brewing accessories. Here’s a complete coffee shop equipment list to help you get started.
🍽️ Kitchen Equipment
If you’re offering pastries or light meals, allocate $5,000–$15,000 for kitchen gear—ovens, prep tables, refrigeration, and sinks. Local health codes may require commercial-grade units.
🔧 Commercial Coffee Grinder
A high-quality grinder can cost between $800 and $2,500. It’s expensive, but a critical investment for flavor consistency and speed of service.
🔥 Coffee Roaster
Planning to roast in-house? Entry-level machines start around $15,000, with commercial models reaching $50,000+. Learn more about how roasting affects what you can sell in a coffee shop.
☕ Espresso Machine
Espresso machines are the heart of most cafés. Prices range from $5,000 to $20,000, depending on whether you choose a semi-automatic or a high-end, multi-group machine.
💧 Water Filtration
Clean water = better coffee. Filtration systems cost $300 to $1,500 but protect your equipment and improve taste.
🫖 Drip Coffee Maker
Commercial drip brewers cost between $500 and $2,000. For high-volume service, look for programmable, multi-batch models.
📝 Permits, Licenses, and Insurance
Legal startup costs vary, but they typically range from $500 to $5,000. Check out our legal startup cost checklist to get started:
Permits, Licenses, and insurance checklist
✔️ Business license
✔️ Food handler’s permit
✔️ Health department approval
✔️ Liability and property insurance
👥 Hiring and Professional Services
You’ll likely spend $10,000–$25,000 on coffee shop hiring, training, legal fees, accounting, and consulting. Don’t underestimate this phase—it builds your team and business structure.
📣 Marketing and Branding
A strong coffee shop brand launch can cost $2,000–$10,000, including logo and menu design, signage, social media, and promotional materials.
🛋️ Interior & Exterior Design
Design and ambiance can make or break your shop. Set aside $10,000–$50,000 for interior decor, signage, lighting, seating, and exterior curb appeal.
💻 Coffee Shop POS Software
Your POS system should handle sales, inventory, loyalty, and reports. Depending on the features, expect to pay $1,000- $5,000. We recommend checking out the best POS systems for coffee shops (hint: KORONA POS is your one-stop POS solution for coffee shops!).
Speak with a product specialist and learn how KORONA POS can power your business.
7 Ways to Cut Down Your Café Startup Costs Without Compromising Quality
With strategic decisions and a little creativity, you can save thousands while still delivering a high-quality customer experience. Here are seven ways to reduce startup costs without sacrificing the charm or efficiency of your coffee shop.
#1: Start Small with a Kiosk or Pop-Up
Instead of launching a full brick-and-mortar café, test the waters with a coffee kiosk, cart, or pop-up stand. These low-overhead models allow you to build a customer base and brand awareness at a fraction of the cost, often under $50,000.
#2: Buy Gently Used or Refurbished Equipment
You can save big by purchasing used espresso machines, grinders, and fridges from reliable sources. Many commercial-grade items are built to last and can function like new when properly maintained. Just make sure to inspect and test everything before committing.
#3: DIY Your Branding and Marketing
While hiring an agency can be effective, consider DIY branding in the early stages. Free design tools like Canva, plus social media and email marketing platforms, can help you launch with minimal expense. Later, you can scale professionally.
#4: Start With a Lean Menu
Keep your offerings simple to begin with. A focused menu reduces equipment needs, waste, and training time. You can always expand once you have more capital.
#5: Negotiate Rent and Lease Terms
Don’t accept the first offer. When possible, negotiate lower rent, longer rent-free build-out periods, or shared utility costs. Landlords may be flexible if they see long-term potential in your café.
#6: Use an All-in-One POS System
Avoid juggling multiple subscriptions by choosing a POS system that includes sales tracking, loyalty, marketing, and inventory management. Look no further: KORONA POS can help you run a more efficient coffee shop.
#7: Partner with Local Bakers or Roasters
Instead of managing everything in-house, partner with a local bakery or coffee roaster to supply goods. This reduces your upfront investment in kitchen equipment and inventory while supporting local businesses.
Real-World Coffee Shop Startup Examples
Wondering what it really takes to launch a coffee shop? Here are a few real-world examples that show the wide range of startup costs and strategies (proving there’s no one-size-fits-all approach to building a successful café).
☕ Example 1: Blue Bottle Coffee
Started with a $20,000 personal loan, Blue Bottle began as a small roastery and delivery service. Founder James Freeman focused on fresh, small-batch roasting and built a loyal following before expanding into brick-and-mortar cafés and eventually selling to Nestlé for $500M.
📊 Example 2: Sojourner Coffee
Sojourner Coffee, a KORONA POS customer, began as a mobile coffee trailer serving rural and suburban communities. With an initial investment of under $50,000, they focused on strong local connections, a lean menu, and workflows powered by KORONA’s POS system.
The result? Rapid growth and plans to expand into a brick-and-mortar location.
🏙️ example 3: vesta coffee roasters
Launched in Las Vegas with an estimated startup cost of around $250,000, Vesta Coffee Roasters began as a small-batch roastery. By focusing on quality sourcing, in-house roasting, and tight branding, the startup quickly expanded with two new locations inside a local hotel.
Ready to Start Your Coffee Shop Business?
Whether you’re opening a cozy café, launching a mobile coffee cart, or building out a full-service drive-thru, success starts with the right tools and smart planning. KORONA POS helps entrepreneurs run efficient and successful coffee shops from day one.
Speak with a product specialist to learn exactly what you need and how we can help.
FAQs: How Much Does It Cost To Open a Coffee Shop?
How profitable is a coffee shop?
A well-run coffee shop can generate net profits of 10–20%, depending on location, menu, labor costs, and rent.
How much capital is needed for a coffee shop?
Startup capital typically ranges from $60,000 to $400,000+, depending on the size and type of your coffee business.
Can I start a coffee shop with $10,000?
Starting a full coffee shop with $10,000 is extremely difficult, but not impossible if you begin with a bare-bones mobile setup or pop-up stand. With creative sourcing of equipment and a hyper-local approach, you might get off the ground—just be prepared to scale slowly and reinvest profits.
