5 Must Know Reasons Why Coffee Shops FAIL In Their First Year | Start a Cafe Business 2022

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Here’s a location tip my dad told me years ago 85-90% turns are to the right so Depending the type of type of business you are about to open, Remember the right n left side of the road. If you r opening a coffee shop which I assumed more of a morning crowd , make sure u are located on the right side of the main road that funnels from major subdivisions before enter the highway . These makes more accessible in the morning traffic to turn right vs left and to return on that same street. If you are a lunch n dinner restaurant try to be on the left of that same road as it s a right turn heading back home. Good luck to all future business owners it’s a tough biz we were in it for 25 years.

TL;DR 1. Poor management (Toxic work culture, high turnover, vendor relationships, etc.) 2. Bad Location (Location, Location, Location. Needs to be in hight traffic area or in neighborhood) 3. No Uniqueness (Specialty drinks, unique environment/staff) 4. Don’t know their numbers (Financials) 5. Bad mindset (Lack of growth mindset)

I’m starting a coffee shop hopefully in a few months. I gotta be honest, these videos have been very helpful. They’re giving me the tools and confidence to get it done. I’m scared asf, but I know I’m gonna make it.

I’m surprised you didn’t mention the menu. I’ve seen a lot of businesses in the food industry who have extensive, complicated menus and that made their quality go down. The ones with simple menus can train their employees to have a consistent quality when making the product. Customers know what to expect going in and they come back for the quality.

Anyone looking to start a coffee shop. Take this from a 10 year barista - Treat your employees with dignity and respect. You need to pay them well because especially in 2022 people are over service jobs. Baristas deal with so much every day so it is very important to show empathy and help when ever you can. Being over demanding or implementing ridiculous rules will defiantly turn people away from your business.

A loan officer told me that some coffee shops fail based on hygiene. Customers have eyes, and can see if the tables and chairs are clean. If they find the bathroom to be dirty, they assume that things are equally dirty throughout the shop. A shop’s reputation is made or broken by word of mouth.

I don’t know why I’m watching this at a nursing student but damn you have inspired me start my own coffee shop. I always wanted to start a business and never really wanted to go into healthcare, so thank you - will continue to follow your channel!

I would also like to point out that "bad management" can mean that YOU are a bad manager. The say is "people quite managers, not companies" and you have a primary say in the culture you create. It's not just hiring the "right" people, but making sure you are the right person to manage them.

I really want to open up a bookstore/cafe/game store with some kind of unique theme.

Me and my husband are trying to open a coffee shop, and the thought of failing is terrifying because we're investing a lot in it. Thank you for the video. It really feels good to act on knowledge and not ignorance. Commented for a boost on your video. 🙂

The one thing I would state - being in the Pricing world for the better part of 30 yrs - DON'T get too hung up on individual product margins - i.e. I have to make 30% on every product, etc... Instead, think in terms of the complete offering and overall profits - not individual margins. You can make a smaller individual product margin and generate the same revenue / profits - it's about volume. It's about being flexible - ex: make smaller margins on a higher unit volume Vs higher margins on lower unit volume. Both can generate the same profits, but not the same revenue. Oh and something to keep in mind - pricing has almost nothing to do with how much it costs to produce the product - I know - counter-intuitive, right? BUT, pricing is all about what someone is willing to pay - not it costs me $2, so I'll sell it for $4. Actually, it may cost you $2, but you will sell it for what someone is willing to pay for it - and they demonstrate that with their business. CAN you make a profit - given the reality of your COGS (Cost of Goods Sold) and the price dictated by the environment you are in? The KEY - as mentioned in the video - is Value. What makes it worth it to buy @ $4 - what makes it different? The product? The ambience? The staff? The Loyalty program, etc? A lot of good points in the video - just wanted to expand on the pricing / profit aspect a bit.

Vendor relationships are accurate. We had a truck driver delivery meat. 600km trip last minute notice. We give him free food every time we see him for years and it saved us upwards of $10000 over 5 days.

This is so true. As someone who often visits cafés, I don't have a problem with a small menu, but I hate when they can't serve multiple things. I also hate small claustrophobic cafes with poor heating during winter and drafts. I hate cafés that don't have comfortable chairs or, even worse, have those "aesthetic" folding chairs. I know multiple successful cafés and restaurants with a "bad" location but everything about them was flawless enough to attract guests regardless.

Thanks so much for making these videos. My dream is to open a coffee shop and you have been my most helpful and honest source.

I love this video. It’s exactly what I think but in an organized and summarized format

Im opening a second cafe and Lee is right. Make your staff and vendors happy, bring something unique to the table and keep up with the numbers. PS. I would add to focus on solving a problem or need instead of selling a product.

Thanks William K. Lee. Keep up the progress, all of us at Midnite Espresso will continually be highly tubed in.

Stumbled upon your videos and got hooked. Thank you for sharing your knowledge for small cafe startups 👍💖

Thank you for great information! I look forward to learning from the rest of your videos!