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Looking into opening a coffee shop? Here’s a breakdown of the start-up costs and equipment prices involved, from coffee roasters to espresso grinders.
With so many people relying on a cup of coffee to make it through the day, starting a coffee shop is a way that you can make money while serving up a product people already love. Although coffee itself is fairly inexpensive, coffee shop start-up costs can quickly add up.
According to Bellissimo Inc, you can expect to invest between $200,000 to $375,0001 to open a standard sit-down coffee shop. Though these costs may vary depending on the coffee shop’s location size, and equipment needs. With a little hard work, opening a coffee shop can soon start to become worth the investment. To help you get the ball rolling, consider the following estimated costs when crafting your coffee shop business plan.
How Much Money Does It Cost to Start a Coffee Shop?
The average cost for starting a coffee shop can vary depending on several factors. Location, size of premises, licensing requirements, equipment costs and more all come into play. For a brick-and-mortar coffee shop, start-up costs can range from anywhere between as little as $25,000 to as much as $300,000 or more2. Once established, the average income for coffee shop owners ranges from around $60,000 to $160,000 per year3. Learning how to start a coffee shop business is undeniably challenging, but the financial reward is definitely there for entrepreneurs that make a success of it.
How much does it cost to open a coffee stand?
A coffee stand generates cheaper start-up costs than a traditional brick-and-mortar store. Espresso stands and coffee carts can often be established for as little as $16,000 to 25,0004. They offer the benefit of flexibility, allowing the owner to move locations according to where the most foot traffic will be passing. However, the smaller space means there are limits to how much can be served each day, which can reduce potential profits.
Coffee Shop Equipment: Cost Breakdown
Espresso machine
An espresso machine is essential to opening a coffee shop. It allows you to serve cappuccinos, lattes, and other popular beverages. A semi-automatic machine requires a trained barista to operate and costs between $2,000 and $5,000. Super-automatic machines do all the work and are simpler to operate, but the starting cost is around $5,000, and prices can soar to approximately $20,0005.
Where to start? Seattle Coffee Gear offers a large selection of semi-automatic and super-automatic espresso machines from top brands, like Rancilio, La Marzocco, and Nuova Simonelli.
Coffee makers
Basic black coffee can account for as much as 30 percent of your shop’s sales. An industrial drip coffee maker is essential for keeping up with the morning coffee crowd. Costs range from as little as $50 for a basic 12-cup machine to $2,500 per coffee maker6.
Where to start? Grainger carries commercial coffee makers in various capacities from top manufacturers like BUNN, Mr. Coffee, Newco Coffee, and more.
Coffee and espresso grinders
If you’ve already decided on a super-automatic espresso machine, then you can skip the espresso grinder. Otherwise, you’ll need to purchase one separately. The average cost is between $500 and $2,500. Coffee grinders produce a coarser grind that is ideal for drip coffee makers. Prices range from $800 to $1,5007.
Where to start? Find high-capacity coffee and espresso grinders for coffee shops at Seattle Coffee Gear. Top brands include BUNN, Mazzer, and Curtis.
Coffee roaster
When starting a coffee shop, roasting your own coffee beans allows you to create in-house flavors that are unique to your brand. The volume of beans the machine can roast dictates the cost. Small roasters are available for less than $3,000. A 3-kilo model costs around $14,000, and sizes go up to a 25-kilo model, which costs around $58,500.
Where to start? Probat manufactures quality coffee roasters for any capacity, no matter if you plan to roast a few kilos or thousands of kilos per hour.
Blenders
You’ll need industrial-grade blenders for smoothies, frappes, and other cold drinks on your menu. The blender needs to be powerful enough to pulverize ice for several drinks back-to-back without burning out the motor. Commercial blenders range in cost from $300 to $2,0008.
Where to start? Check out high-speed blenders and accessories from brands like Vitamix, Blendtec, and Waring at Everything Kitchens.
Refrigeration system
Milk and cream go hand in hand with coffee drinks, and they also need to stay cold. A commercial refrigeration system should maintain a constant temperature even when the doors are opened over and over again throughout the day. Sizes vary from small refrigerators that fit neatly under the counter to large walk-ins for shops with large amounts of chilled stock. Prices range from $500 to $12,000 or more.
Where to start? Check with local installers about refrigeration equipment available in your area. Top brands include Carrier, Honeywell, and Barr.
Water filtration system
A cup of coffee starts with water, and minerals or other deposits can greatly affect the taste and quality of the beverage. Additionally, these deposits can damage your equipment over time. A water filtration system protects the quality of your drinks and the lifespan of your coffee shop equipment. Commercial water filtration systems can process more than 12 gallons per minute and come at a cost between $1,500 and $10,000.
Where to start? You can have a filter installed to purify all water coming into your shop or visit suppliers like KaTom Restaurant Supply for filters for individual pieces of commercial equipment.
When opening a coffee shop, the cost of equipment makes up the bulk of your initial expenses. Look for the sizes that fit your needs and new or used equipment to match your budget. By using our coffee shop cost breakdown, you should be able to work out what you can afford and plan accordingly.
For more advice on how to open a coffee shop, become a Groupon Merchant today. Discover expert advice along with tips and tricks on how to grow your new business into a successful brand.
Editor’s note: This article was originally published in May of 2017 and has been republished with updated content.
References
- https://www.investopedia.com/articles/personal-finance/010816/economics-owning-coffee-shop.asp
- https://howtostartanllc.com/coffee/cost-to-start-coffee-shop
- https://smallbusiness.chron.com/open-coffee-shop-estimated-annual-revenue-17563.html
- https://howtostartanllc.com/coffee/cost-to-start-coffee-shop
- https://www.seattlecoffeegear.com/shop-gear/espresso-machines
- https://www.grainger.com/category/furniture-hospitality-and-food-service/food-service-and-food-processing/food-service-appliances-and-equipment/coffee-makers?optOut=0&searchQuery=coffee+maker&categoryIndex=1
- https://www.seattlecoffeegear.com/shop-gear/grinders
- https://www.everythingkitchens.com/catalogsearch/result/?q=blenders&item_class=Blenders
