Dreaming of opening a cozy neighborhood coffee shop or a buzzing espresso bar? You’re not alone—and the good news is, it’s absolutely doable. You’ll need a clear concept, a tight budget, and the right tools to run it smoothly.
This guide will walk you through every step of opening your coffee shop, from concept to soft launch. By the end, you’ll know exactly what to do (and what to avoid) when starting your coffee business.
💡 Key Takeaways:
- To stand out in a saturated market, define your concept and brand identity.
- Build a detailed business plan that includes market analysis, financial projections, and operations strategy.
- Secure necessary permits, equipment, and a POS system before your launch.
- Choose a prime location, hire the right staff, and market your shop for long-term success.
How to Open a Coffee Shop: A Step-by-Step Guide
Whether you’re launching a pop-up or thinking about opening a brick-and-mortar location, these 12 steps will guide you in the right direction for starting your coffee shop.
#1: Define Your Vision and Concept
Your coffee shop’s concept is your compass—it guides branding, pricing, and customer experience. Start with these questions:
- What kind of coffee shop are you opening? (Minimalist espresso bar, hybrid café-bookstore, drive-thru, etc.)
- Who’s your ideal customer? Commuters, college students, remote workers?
- What vibe are you going for? Cozy, upscale, rustic, artistic?
Need inspiration?
See the 10 most profitable small businesses to open for insight into what works.
#2: Create a Coffee Shop Business Plan
Your business plan keeps you focused—and gets investors on board. For the best results, break it into sections:
🔎 Market Research
- Identify your competitors and customer base
- Understand local demographics and traffic patterns
📑 Operations Plan
- Detail staffing needs, supplier relationships, and your daily workflow
📈 Financial Projections
- Project startup costs, revenue, break-even points
- Include costs like rent, labor, and equipment
Pro Tip!
For help writing a leaner startup plan, compare it with a food truck business plan.
#3: Legal Requirements and Permits
You’ll need some permits and licenses before you can open your doors. Every city and state is different, but you’ll likely need:
- Business license
- EIN (Employer Identification Number)
- Food handler’s permits
- Health inspections and occupancy permits
Consult your local small business office to ensure you meet every legal requirement before your opening day.
#4: Budgeting and Startup Costs
Before starting a coffee shop, you need to understand the costs and create a budget accordingly. Doing so helps you avoid unexpected financial issues, ensures you have enough funds for startup and ongoing expenses, and provides a clear roadmap for managing your business.
You’ll want to estimate:
- Lease & utilities
- Build-out & furniture
- Equipment (espresso machines, grinders, etc.)
- Inventory (coffee beans, milk, syrups)
- Marketing and website setup
- Hiring and training staff
Pro Tip!
Overestimate your budget and include at least 3–6 months of operating costs.
#5: Choose the Right Location
When it comes to coffee shops, location is everything. Look for:
- High foot traffic areas (near schools, offices, or transit hubs)
- Affordable rent
- Nearby competition (and complementary businesses)
- Zoning and parking
Already thriving?
Here’s how to expand your coffee shop endeavor to a second location.
#6: Design Your Coffee Shop, Inside and Out
Design impacts how customers flow through your space—and how long they stay. This is especially true for coffee shops, which have become many people’s third space. Think about:
- Bar layout and visibility
- Seating capacity and comfort
- Lighting, art, and brand aesthetics
- WiFi and outlets for remote workers
PRO TIP!
Use Pinterest or floor planning tools to map traffic flow before committing to a layout.
#7: Choose Your Major Equipment and Vendors
The equipment you choose will become the lifeblood of your coffee shop. You’ll need to invest in all of the following and more:
- Ingredients such as beans, milks, teas, and syrups
- Espresso machines, grinders, brewers
- Filtration systems
- Scales
- Refrigeration units and dishwashers
- Point of Sale (POS) technology
- Inventory management software
#8: Set Up Daily Workflows
Organized workflow ensure consistent service and a smooth run of show. After all, coffee shops can be very dynamic, bustling spaces. To stay on top of your workflows, plan for:
- Opening/closing checklists
- Prep time routines
- Inventory logging
- POS cashouts and reporting
- Clean-up schedules
Pro Tip!
Create a physical binder or digital manual that team members can reference every day, at any time of day.
#9: Hire Your Team
Your coffee shop employees should reflect your brand’s culture and deliver consistent service. That’s because your staff will shape the customer experience—every shot pulled and every pastry plated matters.
☕ Hiring Baristas
Baristas are your frontline ambassadors. Prioritize candidates with a positive attitude, multitasking skills, and a passion for coffee. Experience is helpful, but a willingness to learn and engage with customers is just as important.
🔥 Hiring Roasters
If you’re roasting in-house or want more control over bean quality, hire someone who understands sourcing, green bean grading, roasting profiles, and quality control. An experienced roaster can help you build a signature taste that sets you apart.
🍳 Hiring Cooks
Offer a food menu? Hire cooks familiar with short-order kitchen environments who can move quickly without compromising quality. They should be trained in food safety certifications (e.g., ServSafe) and know how to work well during morning and lunch rushes.
PRO TIP!
Build a team culture early. Regular team meetings and a shared mission improve retention and morale.
#10: Choose the POS Technology Your Business Will Need
Your coffee shop’s point-of-sale (POS) system will be your digital backbone. It must handle daily sales and support long-term growth, especially in bustling environments where speed and accuracy are key.
Look for POS systems with:
- Sales tracking and analytics to monitor trends and performance
- Employee scheduling and permissions for time management and security
- Inventory control with automatic low-stock alerts
- Loyalty and gift card integrations to keep customers coming back
- Fast, intuitive interface to reduce order time and training needs
- Cloud-based access so you can manage the café remotely
PRO TIP!
Integrate your POS with your accounting, payroll, and marketing tools for maximum efficiency.
#11: Plan a Soft Opening
Soft openings help you test operations, train staff, and gather feedback—all without the pressure of a full launch. Treat it like a dress rehearsal, not a grand performance.
Plan your soft opening with:
- Limited hours and menu to simplify workflows
- Invite-only events for friends, family, and local influencers
- Feedback tools like comment cards or online surveys
- Simulated rushes to stress-test staff and equipment
Soft openings are also a great way to build buzz on social media. Encourage tagged photos, check-ins, and early reviews.
PRO TIP!
Collect emails during your soft opening for your first customer rewards program list and newsletter campaign.
#12: Devise a Marketing Plan for Your Café
Your marketing should reflect your brand’s personality and speak directly to your local community. Start before opening and maintain momentum through your first year. Focus on:
🖼️ Branding
- Cohesive logo, color palette, and signage
- A compelling story behind your shop or name
- Clear tone of voice across all platforms
🌐 Digital Presence
- Claim and optimize Google Business and Yelp listings
- Post regularly on Instagram and TikTok
- Engage with followers through Stories, reels, and giveaways
🧭 Local Outreach
- Collaborate with nearby businesses
- Sponsor community events or farmers markets
- Offer loyalty punch cards or “bring a friend” discounts
🎉 Promotions
- Seasonal limited-time offers
- Grand opening deals
- Birthday drink perks
Pro tip!
Boost visibility using foot traffic optimization tips and take cues from franchise marketing best practices, even if you’re independent.
How to Open a Coffee Shop with KORONA POS
With KORONA POS, your coffee shop will be ready to run smoothly from day one. Get all-in-one tools to track inventory, train employees, and offer fast, reliable service.
Whether you’re starting a local shop or planning a larger coffee shop franchise, our software grows with you.
