Thinking of opening up your own coffee shop? Here are several marketing strategy tips that could help you to start your own coffee shop!
Coffee shops have been recognized as creative people’s meetups. There is no shortage of creative energy at a café, whether it’s writers who spend their days sipping lattes and working on their next novel, or painters at tables crouched over their paintings and iced coffee.
You can give inhabitants a neutral location to concentrate on tasks outside of the office or the house by creating a café in their neighborhood. You’ll surely establish connections with your regular clients as well as other local business owners, and you may mix with others in the coffee circles to further connect.
Depending on how much time and money you have to commit to it, owning a coffee shop may be a full-time job or a side hobby — the choice is entirely yours. A coffee shop is a logical choice if you currently enjoy your profession and want a pleasant side hobby that is also profitable. Many of the more time-consuming responsibilities may be delegated, and you can spend as much or as little time on it as you choose. You can start enjoying the advantages almost immediately after opening your very own coffee shop!
To start up your own coffee business, here are some of the steps we suggest you follow to guide you to open up your very first coffee shop!
The mission statement for your coffee shop:
For both personnel and the target audience, a well-crafted mission statement helps focus the business. It acts as a foundation, providing everyone concerned a place to start when developing the brand. It distinguishes the business from the competition in the customer’s eyes while being true to the company’s mission.
Think about what you want to achieve with your business and turn it into your dream. The mission is different from the goals. An example is the Coffee House’s mission is to become the first stop shop for customers who are located in our zip code in the morning. Which will provide real coffee for coffee lovers.
Identify your goals
Community objectives and profit objectives should be at the forefront of your coffee’s goals and ambitions. Consider incorporating short-term and long-term financial objectives in your profit goal. Community and workers are essential to achieving your objectives and running a successful business.
Composing your goals:
Before you compose your company goals, double-check that they are under your control. You cannot expect to make a large profit if you start a business during a period when the economy is not doing well. As a result, do your best to put down goals that are under your control so that the success of your firm is more recognizable. However, don’t let the necessity to create a reasonable target prevent you from dreaming big for your long-term objectives.
The following examples of Building SMART achievable goals can help process the setting and achieve your business goals. When you use the SMART grid to organize your objectives, you’ll be able to establish more precise, attainable goals and develop and track your progress toward them.
Short-term/long-term goals:
When establishing company goals and objectives, it is critical to consider not just the immediate future but also the long term. This is where your short- and long-term objectives will come into play, and it’s critical that you employ both successfully.
- To become the best local coffee shop in the next 3 years.
- To provide one special handmade sandwich besides coffee and tea.
- To reach break-even after 12 months and generate profit in the second year.
Objective & KPI:
The objective is the ideas or the concept about your outcome, while KPI is the measure of the activities to reach those outcomes. KPI, Key Performance Indicator, is the metric to calculate your business’s performance and results.
- How many customers a day/month your shop will have?
- What is the conversion rate from your advertising to the real customer?
- How much revenue for a month or quarter?
- How many coffee cups do you sell a day?
Market Segmentation:
There are many types of market segmentation. However, a startup coffee shop could focus on 4 main categories: Geographic, demographic, behavioral, and psychographic. Identify the customer based on income, age, occupation, sex, shopping habits, location, characteristics: mental and emotional. Those classifications will help the owner develop the right approach to each group of customers. This step could avoid the unrecovered costs and maximize the value when the new owner does market activities.
Size of market:
It is necessary to have quality research about the market size because that will help a startup estimate its potential profit. This is the key step to decide whether or not to invest money in a new coffee shop. Size of market analytic could conduct through in-house surveys or buy data from 3rd parties.
Implementing the Ideas:
When the new owners have the final decision, this is the time when they need to choose channels, budget, and how to advertise their new shop. They could have benefited from both free and paid marketing channels.
SEO: Optimize Search Engine Optimization could increase the relationship between the coffee shop and customers. Using the website’s content and focus on their own value would increase the organic traffic.
Mobile Ads: When technology is dominating this world, skipping this channel might make the coffee shop lose a ton of opportunities to reach customers. Various channels of mobile ads that the startup can purchase: Google Ads, Facebook, and Instagram, Admob, Tik-Tok, Snapchat…with multiple types: banner, video, native, cross-app pop-up…
Social Media: Building their own social media channels is also very important. This is the key communication between the coffee shop and its customers. Where the owner can deliver their promotions, events. As well as, responding to customer inquiries. This channel would establish credibility for the shop.
Print Advertising and Radio: Do not underestimate traditional advertising, because the coffee is located in a specific area, so print ads and local radio will create an emotional connection with local customers.
Conclusion
Opening a new business after the pandemic is not an easy job. The new owner will face many unexpected challenges. However, if they could build a detailed strategy for their business, they might reduce the chance of loss. Do what you believe is best; the objective is to be realistic while yet giving yourself the potential for improvement.
Authors by Kaitlyn Le & Chi Truong
By Kaitlyn Le: Intern as a Digital Marketing Analyst at International Institute of Digital Marketing™ and international student studying Bachelor’s of Digital Communication at Humber College.
By Chi Truong: Intern as a Digital Marketing Analyst at International Institute of Digital Marketing™ and Marketing Student at The University of Texas at Dallas.