Is Now the Right Time to Open a Coffee Shop? What You Need to Know About Opening a Coffee Shop During the Pandemic

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The Impact of the Pandemic on Coffee Shops

The pandemic has changed many people's consumption expectations and also altered how people interact with their lives. In the past two years, regardless of the industry, many people have lamented that business is becoming increasingly difficult. Surprisingly, independent coffee shops have been popping up like mushrooms after rain, but many don't survive beyond a year.

Success Factors for Coffee Shop Owners

Although there are many failure cases, there are also quite a few owners who can successfully run their coffee shops. These successful cases are not accidental, nor can they survive just by having money. Recently, the writer had conversations with some coffee shop owners who have been operating well during the pandemic and compiled their insights on running a shop.

"Success is never accidental; only those who make thorough plans and preparations for the present and future will be winners."

Running a Coffee Shop as a Business

"Running a coffee shop is a business, not just a passion."

The opening of a coffee shop is essentially a business venture. Undoubtedly, an independent coffee shop requires passion because it reflects your personal connection to coffee. Only with genuine love can one do something well. However, passion alone is not enough to ensure success.

Loving coffee and being able to run a coffee shop well are two different things. Just because the owner likes something doesn't mean consumers will necessarily like it too. Before opening a shop, the first thing to consider isn't how to decorate, what equipment to buy, what specialty coffee beans to use, nor should you assume that customers will notice and trust your shop as soon as it opens.

Customer Research Before Opening

"Before opening a shop, conduct customer needs research first!"

Before opening, the first thing to consider is investigating the customer base around the chosen location, determining what products are needed, and finalizing the menu. Although specialty coffee culture continues to spread, specialty coffee isn't limited to just the quality of coffee beans. For customers, the service experience during consumption and product consistency are the standards that define specialty coffee.

Therefore, before opening, you need to comprehensively consider the regional characteristics, customer demographics, surrounding business features, and the requirements of nearby customers. Only after fully understanding regional needs should you create a menu that appeals to everyone.

Understanding Customer Preferences

There aren't many consumers who can truly taste the differences between coffees. Most consumers don't have high requirements for coffee quality and haven't reached the level of selecting specific beans. More customers prefer sweeter milk-based coffee.

Although taste preferences may not be particularly precise, product consistency is something everyone can perceive. Customers choose to spend money at independent coffee shops hoping to experience more professionalism and better service. Therefore, regardless of the customer or product choice, approaching from a professional perspective is essential to retain more customers and increase repeat purchases.

Cost Control in the Early Stages

"Control costs well in the early stages of opening."

Opening a coffee shop is a dream for many people, so when they actually start their business, they invest a lot of capital in decoration and spend a lot of money purchasing coffee equipment. When selecting coffee beans, they also tend to choose many expensive varieties. These are major taboos in the early stages of opening a shop!

In the early stages, you must control all costs to recover your investment faster during operations. For decoration, the first consideration should be the space allocation between the customer area and the bar counter, as well as workflow design, ensuring customers have a comfortable dining environment and baristas can efficiently produce and serve coffee. Decorations can start simple and be gradually added later based on needs.

When purchasing coffee equipment, you must act according to your capabilities. More expensive isn't always better - high cost-performance within your affordable price range is most important! It's not recommended to blindly invest in expensive equipment right from the start. You really don't need to throw all your capital into equipment when opening! You can gradually upgrade equipment after your operations stabilize.

Whether it's coffee beans or other supplies, always choose suppliers, manufacturers, and brands with legitimate production qualifications! This is very important! At the same time, the selection of coffee beans shouldn't blindly pursue high prices or industry favorites. You must consider the actual needs of the customer base in your business area, choosing coffee beans that offer good value and are popular with the general public.

Keys to Sustainable Operation

"Consistent quality, innovation, and reasonable pricing are prerequisites for sustainable coffee shop operation."

You need classic products to retain customers and innovative products to attract them. When developing new products, it's not just about appearance but also whether the flavor is acceptable to the general public. Don't sacrifice the balance of flavors between ingredients for the sake of innovation. Both the costs of product development and production must be controlled so that product pricing can be more easily accepted by consumers.

Small Scale, High Efficiency & Attentive Service

"Small scale, high efficiency & professional, attentive service to retain regular customers."

During the pandemic, coffee shops need to be "small and efficient" even more. Therefore, you must continuously improve standardized operating procedures to increase order efficiency. This not only reduces operational pressure but also strengthens risk resistance.

At the same time, focus on providing good service to every customer who visits. Observe what your customers like, when they usually visit, and other characteristics, keeping these small details in mind and making timely adjustments.

Customers will also notice the changes you've made, which will increase their satisfaction with the shop and turn them into loyal customers. The cost of acquiring a new customer is several times that of retaining a regular one! Cultivating regular customers is the most valuable business model.

Product Preferences: Single-Origin vs. Espresso

"Not many people can appreciate single-origin pour-over coffee, but many people love espresso-based coffee."

The coffee circles we move in have created an illusion: "Everyone loves pour-over coffee." However, the demand for single-origin coffee isn't as high as we imagine. Most consumers consider it expensive and therefore prefer espresso-based products.

Espresso-based products are popular because they offer good value, quick preparation, strong consistency, and high versatility. Whether for in-store dining or delivery, their quality doesn't significantly change due to temperature variations, which is why more consumers choose espresso-based products.

Diversifying Services and Products

"Expanding diversified services and products is extremely important."

It's difficult to generate more revenue relying solely on daily foot traffic. Therefore, expanding diversified and popular services and products is an important factor for high repeat purchase rates.

The target customers of coffee shops are general consumers. Besides providing high-value and consistent products, launching delivery services can achieve greater promotional effects. At the same time, introducing reward programs that encourage customers to redeem specific products in-store after ordering a certain number of times through delivery can encourage more people to visit the store and experience more professional service. Offline, you can implement membership systems and membership discount activities to increase customer repeat purchase rates.

You can also launch brand-related merchandise, such as custom eco-friendly products, portable coffee products, etc. Or through online live streaming/social media sharing, launch coupons and promotional activities, share and answer coffee knowledge questions, and interact with netizens, which can effectively increase brand exposure and enhance consumer trust in the brand. Launch more peripheral products.

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