If you are looking to buy coffee shop premises, it is important to understand that there are certain things that you need to understand in order for you to be as successful as you possibly by the time the coffee shop is passed on to you or if the time comes for the franchise for you are purchasing to open its doors. With this in mind, let us get started on the few things that you need to know before you buy coffee shop premises. |
Before anything else, let us talk about location. Location is indeed an important aspect that is worth considering prior to making a decision on whether you ought to buy coffee shop premises or not. Does the location have to be high traffic? The answer may come as a surprise to you, but no, not necessarily. Why? Well, for one thing, do not misunderstand this statement. Of course, the location of the coffee business should be in an area where there are some people around. However, it does not have to be a jam-packed location. Why not? Consider this. If you choose such a location, it is almost guaranteed that you will have to fork out the most expensive rent rate each month. This is counter to your goal of seeing a profit, which is probably one of the main reasons why you want to buy coffee shop premises in the first place.
Second of all, for locations that are considered “high traffic”, there is no doubt that you will experience very fierce competition from A1 tenants. Such tenants include banks, financial centers, franchise chains, clothing store, telecommunication companies, and more. This will make it extremely difficult to establish a stand alone coffee shop business. Last but not least, it is important to realize that a high traffic location does not necessarily mean that your coffee shop will be a big hit or will sell well to your target market. Perhaps it can work for bigger chains such as Seattle’s Best Coffee or Starbucks, but for smaller coffee businesses, understand that people view them as a destination. Having it in a high traffic location will turn your coffee shop into a rush stop for people who are constantly on the fly, and chances are they will not be able to enjoy your unique offering the way you had envisioned. Last but not least, an area where rent rates are lower is favorable to your business as it makes financial success more sustainable and realistic.
Charles Gund works at Cafe2u - the company provides franchise opportunities for anyone looking to buy coffee shop premises. He enjoys writing blogs giving tips and advice on how to go about starting your own coffee van business, and he is also a keen wine drinker and tennis enthusiast.
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