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Is It Profitable to Open a Coffee Shop in Small Cities? Should Baristas Consider a Career Change Due to Low Wages?

Published: 2026-01-27 Author: FrontStreet Coffee

Last Updated: 2026/01/27, "Hey, have you ever considered opening a coffee shop in a small city/town (hereafter all referred to as small cities)? Think about it, you can't compete in big cities, and rent is expensive. Small cities are different - no competition, cheap rent, and plenty of demand. It must be very profitable, worth considering." I believe

The Reality of Opening a Coffee Shop in Small Cities

"Hey, hey, hey! Have you ever considered opening a coffee shop in a small city/small town (hereafter referred to as small cities)? Think about it: you can't compete in big cities, and the rent is expensive. Small cities are different - no competition, cheap rent, and quite a few people who need it. You'll definitely make good money, you should consider it."

For those of us in the coffee industry, there's always this voice around us:

「Go open a coffee shop in a small city, open a coffee shop, open a shop...」

Let me tell you! Whoever encourages you to open a coffee shop is definitely a "bad person"! If it's so profitable, why don't they open one themselves! I know they'll say: "I don't know coffee, how can I open one!" Someone who doesn't know coffee yet encourages you to open a coffee shop is even more of a bad person! It's precisely because they don't understand this industry that they still hold idealistic fantasies about opening coffee shops... After all, in movies, it's all about chatting with customers, and the coffee shop has been open for decades, everything is so peaceful and quiet, as if you don't need to consider making money.

Is It Really Easier to Make Money in Small Cities?

Is it really easier to make money by opening a coffee shop in small cities? Are there really that many people in these areas who need coffee? These two questions must be carefully considered. Although the rent seems cheaper, the consumption level of people in small cities may not be as high as you imagine. At least when it comes to coffee consumption, since it's not a necessity, very few people are willing to spend twenty or thirty yuan for a cup of coffee.

Is the rent for shops in small cities cheap? That's just an illusion that appears cheap compared to big city rents... Many shop rents are determined by foot traffic. In small cities, places with high foot traffic also have expensive rents, possibly even more expensive than big cities... After all, high foot traffic doesn't necessarily mean business, because the number of people who need coffee is not as high as imagined.

Therefore, whether the rent is appropriate involves too many considerations. It's not simply a matter of comparing rents in different regions to measure cheapness or expensiveness. More importantly, you need to consider the local consumption level and how much you need to price your beverages to find a balance between cost and profit.

Who Are the Coffee Customers in Small Cities?

Those who choose to go to coffee shops in small cities are often those who have lived in big cities and finally chose to return to their hometowns for development. They take on the role of popularizing coffee culture locally; there are also young people who are interested in coffee shops but don't have high requirements for coffee itself - they're more just looking for a social space.

And more people who want to open coffee shops in small cities are thinking of doing specialty coffee, which makes them feel "classy." But when doing specialty coffee, the cost of coffee beans will be very high. Sell it more expensively, and few people understand how to appreciate it, and after drinking it, they'll still complain, "I feel like I spent a lot of money to drink nothing, it's not even as good as instant coffee"... Sell it cheaper, and it makes the coffee you produce seem cheap, and the profit margin is very small, so you'll quickly feel that running a coffee shop doesn't make money at all.

The Harsh Reality of Coffee Shop Economics

Yes, coffee shops that only serve coffee really don't make much money. At least, it's difficult to achieve both ideals and reality. People often say: "Doing business must form a market to have a chance to make money, because only when a business district is formed will more demand gather in this place. Doing it all by yourself, you'll quickly lose interest. Even if you don't lose money, you still have to be in the shop year-round without rest, breaking even every month. It's better to be an employee - at least you get one day off per week.

Yesterday, many people complained about baristas' low wages and heavy workload... Perhaps everyone can try opening a coffee shop and experience that being a boss isn't easy either. You might even find yourself calculating costs 24 hours a day except when sleeping, figuring out how to support your baristas and sustain your shop.

The True Costs of Opening a Coffee Shop

The costs of opening a shop remain high. Let's not even talk about how long it takes to make money - an investment of over 50,000 yuan is basically unavoidable. Once you sign, it's a year's rent, and landlords won't give you a discount just because you're doing coffee. There's also investment in coffee equipment, costs of coffee beans, utilities, labor costs (even if you don't hire people, managing it yourself is also a cost) - it's all money. But the time you spend from the beginning looking for a suitable place is also a cost.

Why Continue in the Coffee Industry?

Why continue working as a barista with low wages? Why open a coffee shop with little profit? I believe everyone knows clearly in their hearts. Those who feel the wages are too low can completely switch to other jobs, and those who feel they're not making enough money can completely transfer the shop and continue being an employee. The fact that you're still willing to do it now proves that you really like coffee and that during your time as a barista, you've gotten what you wanted and learned what you wanted to learn.

Passion can't be eaten as food, but at the end of passion, there is food to eat. Baristas and coffee shop owners don't make much money, but at least the current situation can maintain their daily expenses. At the same time, because they're doing work they truly love, they have spiritual pursuits and peace of mind, which is better than taking a slightly higher salary and facing work with a depressed attitude every day.

That being said, I'm not encouraging everyone, because of their ideals or momentary impulses, to encounter setbacks in things that are clearly more beneficial to their future or to think "Why not open a coffee shop and live comfortably" after making a little money. Every job has its exhausting aspects. Even if you really like it, the frustrating parts will still be frustrating.

When Should You Consider Opening a Coffee Shop?

Only when you truly have sufficient finances to support all your living expenses + support your shop and your baristas should you consider opening a coffee shop. Or treat opening a coffee shop as a side business while you have a job that can maintain cash flow, giving yourself a mental break (of course, don't expect the coffee shop to make money - just aim to break even).