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If you are serious about starting a
coffee shop then you are ready to dig into the details.
You may be wondering what types of costs are involved
and how to set a budget. Below is a quick summary of
the estimated range of coffee shop start up costs. For
more coffee house start up information please also refer
to how
to open a coffee shop, our program
for success, and qualifications
to start a coffee shop.
.
ESTIMATED INITIAL INVESTMENT
FOR COFFEE SHOP START UP
| |
Low |
High |
| Leasehold Improvements |
$ 40,000 |
$ 135,000 |
| Retail Equipment |
$ 40,000 |
$ 80,000 |
| Fixtures |
$ 20,000 |
$ 40,000 |
| Pre-Opening |
$ 15,000 |
$ 25,000 |
| Inventory |
$ 3,000 |
$ 8,000 |
| Total Initial Costs |
$ 118,000 |
$ 288,000 |
| |
|
|
| Plus Working Capital |
$ 10,000 |
$ 30,000 |
| |
|
|
| Total Required Capital |
$ 128,000 |
$ 318,000 |
CAPITALIZATION OF ESTIMATED INITAL INVESTMENT
| |
Low |
High |
Cash investment of 1/3 of
Total Initial Costs |
$ 39,000 |
$ 96,000 |
| Cash for Working Capital |
$ 10,000 |
$ 30,000 |
| Total Cash Requirement |
$ 49,000 |
$ 126,000 |
| |
|
|
| Loan Proceeds |
$ 79,000 |
$ 192,000 |
| Total Required Capital |
$ 128,000 |
$ 318,000 |
DETAIL OF ESTIMATED COFFEE SHOP INITIAL
INVESTMENT
LEASEHOLD IMPROVEMENTS
$ 40,000 - $ 135,000 Estimated costs to finish the leased space including the coffee bar, floors, electrical, plumbing & HVAC.
RETAIL EQUIPMENT
$ 40,000 - $ 80,000 Espresso Machine, Coffee Brewer, Grinders, blender, Point-of-Sale cash register, refrigerator, freezer, computer, ice machine & display case.
FIXTURES
$ 20,000 - $ 40,000 Includes signage, furniture & Decor
PRE-OPENING
$ 15,000 - $ 25,000 Estimated costs to cover insurance, deposits on utilities, retail license fees, store installation, costs, introductory marketing and advertising, promotional costs, and travel expenses for training.
OPENING INVENTORY
$ 3,000 - $ 8,000 Coffee, Tea, Syrups, Chocolate Sauces, Smoothies, Cups, Lids, filters, freight
TOTAL INITIAL COSTS
$ 118,000 - $ 288,000 Total of the above items in the Estimated Initial Coffee Shop Investment.
WORKING CAPITAL
$ 10,000 - $ 30,000 In addition to the initial investment costs estimated above, over the first few months of the business, you will need a cash reserve equal to at least 4 months’ operating expenses (rent, utilities, payroll, taxes, inventory restocking, etc.)
TOTAL REQUIRED CAPITAL
$ 128,000 - $ 318,000 Initial investment costs are estimates only. Actual costs will vary depending on type of store (coffee house, coffee bar drive thru, coffee kiosk) store size and geographic location.
DETAIL OF CAPITALIZATION OF ESTIMATED COFFEE SHOP INITIAL INVESTMENT
| |
Low |
High |
| Cash Investment of 1/3 Total Initial Costs |
$ 118,000 |
$ 288,000 |
| Cash for Working Capital |
$ 10,000 |
$ 30,000 |
| Total Cash Requirement |
$ 49,000 |
$ 126,000 |
| Loan Proceeds |
$ 79,000 |
$ 192,000 |
| Total Capitalization |
$ 128,000 |
$ 318,000 |
*An initial cash investment of at least one-third of the Total Cost is required. This initial investment must be in unencumbered liquid funds. Low estimates are based on a 1,200 square foot coffee shop/drive thru located in a strip center in a small-sized Midwestern city or a coffee kiosk. High estimates are based in an urban area. Actual costs will vary depending on store size, geographic location, etc.
| For more information about opening a coffee shop, contact us by filling out our Coffee Shop Contact Form, or call our office at 888-800-9224 between 8 a.m. - 5 p.m. EST. |
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