Making Money From Coffee Shop
Jakarta's specialty coffee industry has grown so much since 2013, there are lots of new coffee shop opened, but it seems to me that the Jakarta still haven't got that coffee culture. It's not yet a necessity for the people here to have their coffee every morning, during work, after lunch, or in the evening. No matter if it's brewed coffee or espresso based, overall there's not enough coffee drinkers in the city. Jakartans look for coffee shops when they need to chill, hang out with friends, or work with their laptop, not for the quick caffeine fix. The demands are not so big, yet there's always new coffee shops opened, it seems to me that they're fighting to grab that tiny niche market. So how can coffee shop here in Jakarta makes money? Let's see..
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| Americano and Latte by Caturra Espresso, Surabaya, Indonesia. |
1. Small location, Small Rent
With a small location, you can have a cheaper rent. Ideally to be profitable, the monthly rent supposed to be around 10% - 15% of your revenue. Think about it this way, if your revenue projection is around IDR 200 million / month , the ideal scenario here your rent is around IDR 20 million - 30 million / month. Having a small location also means that you don't need to spend much on your renovations and furnitures.
2. The "Right" Menu
If your coffee shop is in the office buildings, bottled cold brew is an easy grab and go option for the busy people. If the coffee shop is near to an university, try sell cheap manual brewed coffees and ice blended. It's just about knowing what the customers want, and the easiest way to do that is by asking them.
3. Sell Food
Let's put it this way, will the customer pays IDR 70k for a cup of latte? Most people will say "Hmmm..no, I don't think so", but they'll pay that much for a lunch or dinner. And on top of that, they'll still buy the drinks. It's one of the key to drives bigger revenue in the business. So why not selling food?
4. Reduced Waste
I know many of the coffee shop owners don't really wanna stay in the coffee shop all day everyday of the week, so the one that have a big role on the waste control is actually the barista team and the cooks. The way they store the coffee / food / milk, or how they do espresso calibration really effect the waste calculations. So talk to them, keep them close, appreciate their hard work, make them have that sense of belongings to the coffee shop, so they'll remind each other when it comes to coffee / food waste.
5. Roast Your Own
If your coffee shop already profitable, the next thing you might want to consider is roasting your own coffee beans, do not open a branch just yet. Get a roasting machine from the profit, consider that as an investment. This way you can reduce the cost of the roasted coffee beans that you use in the coffee shop and learn new skills to become the coffee roaster.
6. Sell Roasted Coffee
After roasting coffee beans for your own coffee shop, why not selling them to others as well? Not necessary your signature house blend, but there must be other blends that you can create or single origins coffee that can be offered to others.
7. Beers After Hours
Yes you'll need extra license to sell beers and wines, but if your coffee shop have some outdoor areas to smoke, you might want to sell beers after office hours. Since there's some people that don't want to drink coffee in the evening.
8. Keep The Best Sellers Only
Some coffee shops are pretty persistent and that's a good value to have. But not so much when it comes to being persistent to sell the unpopular items on the menu. Coffee shops need to keep on changing their menu, keep on exploring new menus. And only keep the best sellers. If not, it's like throwing money down the drain with all the ingredients that they cannot sell. Remember that you cannot force customer to like a menu just because you like it, if they think it's sucks, get rid of it from the menu.
That's roughly the things that the coffee shop owner needs to pay attention to, so you can make money out of it. I hope this list will help a little, but if you need more practical help to safe your coffee shop, feel free to contact me for a business consulting. Cheers!
xoxo
AP
With a small location, you can have a cheaper rent. Ideally to be profitable, the monthly rent supposed to be around 10% - 15% of your revenue. Think about it this way, if your revenue projection is around IDR 200 million / month , the ideal scenario here your rent is around IDR 20 million - 30 million / month. Having a small location also means that you don't need to spend much on your renovations and furnitures.
2. The "Right" Menu
If your coffee shop is in the office buildings, bottled cold brew is an easy grab and go option for the busy people. If the coffee shop is near to an university, try sell cheap manual brewed coffees and ice blended. It's just about knowing what the customers want, and the easiest way to do that is by asking them.
3. Sell Food
Let's put it this way, will the customer pays IDR 70k for a cup of latte? Most people will say "Hmmm..no, I don't think so", but they'll pay that much for a lunch or dinner. And on top of that, they'll still buy the drinks. It's one of the key to drives bigger revenue in the business. So why not selling food?
4. Reduced Waste
I know many of the coffee shop owners don't really wanna stay in the coffee shop all day everyday of the week, so the one that have a big role on the waste control is actually the barista team and the cooks. The way they store the coffee / food / milk, or how they do espresso calibration really effect the waste calculations. So talk to them, keep them close, appreciate their hard work, make them have that sense of belongings to the coffee shop, so they'll remind each other when it comes to coffee / food waste.
5. Roast Your Own
If your coffee shop already profitable, the next thing you might want to consider is roasting your own coffee beans, do not open a branch just yet. Get a roasting machine from the profit, consider that as an investment. This way you can reduce the cost of the roasted coffee beans that you use in the coffee shop and learn new skills to become the coffee roaster.
6. Sell Roasted Coffee
After roasting coffee beans for your own coffee shop, why not selling them to others as well? Not necessary your signature house blend, but there must be other blends that you can create or single origins coffee that can be offered to others.
7. Beers After Hours
Yes you'll need extra license to sell beers and wines, but if your coffee shop have some outdoor areas to smoke, you might want to sell beers after office hours. Since there's some people that don't want to drink coffee in the evening.
8. Keep The Best Sellers Only
Some coffee shops are pretty persistent and that's a good value to have. But not so much when it comes to being persistent to sell the unpopular items on the menu. Coffee shops need to keep on changing their menu, keep on exploring new menus. And only keep the best sellers. If not, it's like throwing money down the drain with all the ingredients that they cannot sell. Remember that you cannot force customer to like a menu just because you like it, if they think it's sucks, get rid of it from the menu.
That's roughly the things that the coffee shop owner needs to pay attention to, so you can make money out of it. I hope this list will help a little, but if you need more practical help to safe your coffee shop, feel free to contact me for a business consulting. Cheers!
xoxo
AP
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