Choosing the Right Coffee Shop Location

May 2, 2024 (Published: December 27, 2011)
For lease sign illustrates choosing the right coffee shop location

Retail space is available for leaseWhat’s the most crucial decision you’ll make when opening a coffee shop? Choosing the right location.

Over the past 30+ years, the Crimson Cup team has helped hundreds of people achieve their dream of owning a coffee shop. We’ve seen shops open up in various settings across the country.

Here are a few factors to consider in choosing a successful coffee shop location.

1. Visibility – How visible is your coffeehouse? Are you buried in a strip mall or pushed back from the road? How will you overcome lack of visibility if you choose to open a coffee shop in a location that’s not very visible?

2. Easy in & out access – The majority of customers stop by in the morning, and many of these people will be on the way to work. Make sure there is an easy and efficient way for these customers to enter and exit your coffee house.

3. Neighborhood – Know your neighbors. Do people in your target market live or work nearby? Will they pass your location on the way to work? Is there strong pedestrian traffic in the area during your chosen business hours?

4. Cost – Can you afford the space? If the rent in a particular location is expensive, the cost can be justified only if projected sales will more than cover the expense. We recommend spending no more than 15 percent of monthly sales for your startup business.

Even if you think you’ve found a great space to open a coffee shop, it’s important to do your research.

For more information on choosing the right coffee shop location, check out the second edition of Seven Steps to Success: a Common-Sense Guide to Succeed in the Specialty Coffee Industry which includes a complete coffee shop business plan.

Written by Crimson Cup Founder and President Greg Ubert, this common-sense guide teaches everything you need to know about running a coffee shop while maximizing your profitability and peace of mind.

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