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Tips for Opening a Second Coffee Shop

Posted by J on 12/4/2014

Most people interested in investing in the beverage industry have future plans to expand. Opening a second and subsequent stores, when done properly, offers greater exposure and increased profits. Once your business accommodates two stores, your basic strategy can be applied to additional stores.

Where?

The next location should be carefully chosen, taking into consideration rent (if applicable), demographic of potential customers, neighborhood, zoning, competition, and probably a few aspects that will not become apparent until time is spent in the area.

When?

Once your first store is operating at a profit, you should make plans to expand. Keep the momentum going.

How?

Though additional stores may be singular in set up and layout, the approach to establishing them will be the same.

  • Investment
    • projected profits (initially loosely based on first store examples)
    • length of time before sales break even with investment, and you can realize clear profit (after operational expenses)
    • projected profits + length of time to realize cost of investment = estimated reinvestment or approximate payback amount and time for third party lender (if applicable)
    • Organizers, displays, and dispensers can be used in inviting presentations
  • Management

While one store can be more personal and "hands on," subsequent stores require more multi-tasking and personnel. Store policies should be identical, and employees should be able to move freely from store to store as they are needed. This includes language used when addressing customers, prices, refunds and exchanges, even how common foods and beverages are prepared or dispensed. (A Big Mac from McDonalds is going to be the same, no matter which location serves it.) Customers experience conflict when the reality does not fit the ideal.

Opening a new location is the perfect time to re-access and implement better customer service for all locations. A common, standard handbook encourages conformity that benefits employees and customers.

  • Point-of-Sale (POS) system
    • saves money and time through efficiency - information from all stores can be collected at a single location
    • allows reasonable account of sales per item, employee stats, bank deposits, and other data that you can analyze as you see fit
    • specific information can be compiled, recorded, and compared

Expansion is a cohesive endeavor involving your ingenuity, great personnel, and satisfied customers.