How Much Does it Cost to Open a Coffee Shop?

If you’re dreaming of opening your own coffee shopCrimsonCup Ribbon 300x253 Is Owning a Coffee Shop Right for You?, you’re probably wondering how much it will cost.

There’s no hard and fast answer, because every specialty coffee business is different.  Your costs will depend upon the type of coffee business you want to open, the costs of retail space in your community and many other variables.  You might need only $25,000 to $75,000 to open a coffee cart or freestanding kiosk or up to $250,000 or more for a standalone coffee house with drive-thru. With some coffee franchises, you might need as much as $500,000.

If you already own a suitable building or have a complementary business such as a bakery, your costs might be much lower.  In addition to start-up costs, you should have cash on hand to cover all of your operating expenses for the first six months.

Here is a brief list of costs to consider, and some recommended maximums:

  1. Rent and build-out costs for your chosen location. As a rule, rent should be no more than 15 percent of projected sales.
  2. Equipment, including a top-of-the-line espresso machine, espresso and coffee grinders, blenders, gourmet drip coffee brewers, refrigerator, etc.
  3. Coffee, milk, chocolate, syrups and other drink ingredients as well as pastries, muffins and other baked goods, which should be no more than 40 percent of projected sales.
  4. Professional fees for architects, attorneys, accountants and business consultants.
  5. Payroll costs, including wages, benefits, payroll taxes, worker’s compensation and costs of payroll processing. As a rule of thumb, payroll costs should be 35 percent or less of sales.
  6. Principal and interest costs (if you plan to borrow money).
  7. Income taxes (usually about 35 percent of operating profit).
  8. Other expenses, including business insurance, supplies (napkins, stir sticks, porcelain cups, etc.), licenses and permits, office supplies, utilities, advertising, and repairs and maintenance.

You’ll find a more detailed discussion of start-up costs, including an entire coffee shop business plan, in Greg’s book, Seven Steps to Success in the Specialty Coffee Industry.

Questions about opening a coffee shop? We’re here to help!  Give us a call at 888-800-9224 or fill out this form, and we’ll get right back to you.

Since 1991, Crimson Cup Coffee & Tea has hand-roasted great-tasting specialty coffee in Columbus, Ohio. We’ve also taught more than 250 independent business owners how to open a coffee shop through our coffee shop franchise alternative program

Want to learn more about our wholesale coffee roasting programs for specialty grocerscolleges and universities and restaurants and food service operators? Give us a call at 888-800-9224 or fill out this form, and we’ll get right back to you!


7 Responses to How Much Does it Cost to Open a Coffee Shop?

  1. Bill Hemby says:

    How current are these numbers? Do you have market demographic information by regions?

  2. The Kray Kray Cafe says:

    We are going to be opening a stand in about 4 years from now, we are excited and are starting to save now! Hopefully some people reading this will come and see us in the future!! #kickass

  3. malou lozasa says:

    Hello I’m interested on opening a coffee shop here in jersey city, nj…. maybe you can guide me on opening a coffee shop. also I need a supplier of a good coffee and a rental equipment. thank you


  4. Jared Cisco says:

    My Wife and I are in the research portion of opening a small coffee shop in a small rural Missouri town. We moved here from Kansas City and couldn’t find a good cup of coffee, in turn we have decided to gather as much information as possible in order to be able to successful. This is a good website in order for us to start.

  5. Ivana Manzo says:

    Would it be wise to take a few business classes or management classes before attempting to open a coffee shop? Or would it be the same to start a business with out having taken classes as long as you have access to the resources to inform yourself on the subject matter?
    If classes are recommended, which classes specifically?
    If classes aren’t necessary do you recommend a website or books for reference?

  6. Tiffany Spencer says:

    My name is Tiffany. I am in the process of finishing up my business plan for a small coffee shop in a small farm town. I am just curious as to what your think my next steps should be.
    Tiffany Spencer

    • Hello,
      Thank you for contacting us about your coffee shop business. We would be happy to speak with you about the next steps. Scott Fullerton will be the main support contact to help you through your business process. He can be reached at:

      Yours in Coffee + Community

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