Coffee Concepts
- Profit Sharing
- Espresso Catering
- Espresso Carts
- Mobile Espresso Units
- Espresso Bars & Kiosks
- Drive Thru
- Coffee Houses
- Coffee in Churches
Profit Sharing
This is how we started our business in 1992. We purchased an espresso machine, grinder, and air pot brewer to be placed in a friend’s ice cream operation. We supplied the equipment, coffee, and syrups. He supplied the location, milk, cup and labor. We received 50% of the profits from the coffee drinks. Many compatible businesses are shocked by or do not want to make the initial financial investment ($7000 in my case), or are intimidated by their lack of knowledge of specialty coffee drinks and how to train employees.
The advantages include
- No working hours
- No rent
- No employee wages and benefits
The challenges include
- Honest partners to report drinks sold
- Passionate partners about your products on their menu
- Continual training of part time help
The agreement is an important ingredient to this concept. Here are some important issues to include:
- Quality accountability
- Scheduling of trained staff at all times
- Cash register receipts
- Equipment maintenance
- Forming a policy to dismiss poor baristas
- Rewarding accomplished baristas with a pay increase
- Using a testing tool for baristas
Some possible partnerships may include some of the following:
- Ice cream operations
- Delicatessens
- Bakeries
- Upscale restaurants
- Bagel stores
- Dessert stores
Espresso Catering
Here’s a good way to get into the coffee business on a lower budget. For the price of an espresso machine, a grinder or two and a self-contained tabletop bar you can be in business. However, this kind of operation does require some marketing skills, and works best in a location with an existing coffee culture.
The advantages include:
- The ability to make a fair amount of money in a relatively short amount of time
- Less investment than a cart, kiosk, drivethru, or coffeehouse
- A way to expand into a secondary business
- A way to have a part-time income
The challenges include:
- You may need a vehicle to transport the portable self contained bar
- Most events are weekends or evening hours
- The need for help setting up and tearing down
Possible contract events include:
- Weddings
- Open houses
- Sales promotions
- Grand openings
- Parties
- Sales meetings
- Banquets
- Church functions
- Concerts and shows
- Trade shows
Possible cash bar events:
- Festivals
- Concerts
- Plays
- Sport events
Espresso Carts
Espresso carts have become popular due to the need for espresso based drinks in small spaces, with no water or drain lines. The espresso carts are self contained, and may include water tanks , pump systems, electrical systems, waste tank, as well as sinks and water heaters. The cart owner usually has to cover the expense of having a 30-50 amp electrical outlet installed. Carts usually come in 4,6, or 8 foot lengths, and often have fold out wings of 12-18 inches on each side, lengthening the top service as much as an additional 3 foot.
A 4-foot cart should be considered if the cart has to be moved every day. County health departments vary in their requirements. Many are not familiar enough with carts to list the requirements for the prospective owner. If the cart is placed in a facility near a 3-compartment sink or a hand sink, it may be possible with written permission to not require the normal sinks. If a prospective owner is looking at a location to roll a cart into and will not be moving it to other locations they may consider a self-contained bar or kiosk. It would save a fare amount of funds because a self-contained bar may be built using a couple of base cabinets with a space for a refrigerator and a finish facing. Eliminating the wheels and metal frame will save a substantial amount of money.
Pump systems, tanks, and electrical systems can be purchased through a select group of espresso distributors (check Guido's pricing).
The advantages include:
- Low initial investments
- Ability to change locations easily
- Ability to sell and recover part of your investment
- No build-out is required
- It is often easier to secure a location if the location owner sees it as temporary
- It is an easy way to test a location
- It is compact
- It is easily to expandable with side carts
- Heating and air conditioning are provided
The challenges include:
- The inconvenience of filling water and waste tanks
- The limited work space
- The added maintenance of pump systems
- Security challenge
- Limited business hours
Possible locations:
- Hospitals
- Office complexes
- Malls
- Strip malls
- Established business
- Amusement parks
- Sports complexes
- Government buildings
- Schools
- Universities
- Bases
- Library
- Art gallery
Mobile Espresso Units
As the espresso culture grows people come to expect drinks at festivals and other special events that create a new niche for the coffee entrepreneur. Complete espresso bars can be installed in a van, step van, trailer, bus, or in some cases out of the back of a car.
The advantages include:
- Little to no set-up required
- Mobility
- Signage is often incorporated
The challenges include:
- Initial cost of a vehicle
- Limited work space
- Leveling is required
- Electrical hookup varies
- Generator expense
Espresso Bars & Kiosks
The desire of existing businesses to add specialty coffee or to create a coffee ambiance is growing and with it comes a new opportunity for the coffee business. Bars and kiosk are similar to the cart business in that they are placed in an existing location, but they often hold the advantage of having water and drain lines, as well as providing more work space.
The advantages include:
- Smaller initial start up cost compared to a coffeehouse
- Heat and air conditioning are provided
- Provides more work space than a cart
- A more noticeable business
- Often will have water and drain lines
- Seen as more permanent
- Can be self contained
The challenges include:
- A larger investment than a cart
- A greater design challenge to match existing design
- Could provide a security challenge
- Limited business hours
- Possible locations (see possible cart locations)
Drive Thru
As the coffee culture grows in a given area the need will increase for the drive thru. People desiring good coffee on the go are coming to expect the convenience of the drive thu. New opportunities are opening from many new and existing business centers around the urban populated areas. While some defunct photomats or similar drive thrus are being converted into coffee businesses more are being built. Some are temporary tailored like units while others are built on sight. Many coffeehouses are planning a drive thru in their coffeehouse location by seeking an end or separate location.
While drive thrus can be profitable, statistics show that it usually takes a strong coffee culture of at least 4-5 coffeehouses to make a successful drive through. Many have made the mistake of thinking that if they are the only coffee bar in the area it will be successful.
People must have developed a taste habit before they think of getting a specialty coffee drink on the go. Some only think of specialty coffee as a comfort experience in a pleasant environment often enjoyed at a slower pace.
The advantages include:
- A more reasonable initial start-up cost (compared to a coffeehouse)
- A good choice of location opportunities
- A natural incorporated advertisement
- A faster customer count gives higher profit margin
- Usually a lower monthly lease
- May be advantageous for the less social oriented person
The challenges include:
- Usually a smaller work space
- A faster more challenging pace
- Usually do not have a toilet
- Can be more susceptible to sub zero freezing
- A less social environment
Coffeehouses
Coffeehouses are a cultural phenomena. It doesn’t take long to discover that themes and décor play an important role in attracting different clientele. This is where being intentional about your concept becomes vital. Potential coffee house owners do well to visit various coffee establishments to note layout, themes, and décor. It is also helpful to engage Guido's’s and A.W. Coffees for planning help. Consulting and training are of no extra cost when purchasing equipment and coffee related products.
The advantages are:
- No tearing down or setting up
- A recognized place that continues to build clientele
- An opportunity to socialize with regular customers
- An opportunity to build community in a neighborhood
The challenges include:
- A higher start-up cost
- Usually a longer lease
- The cost of build-out must be left if you go out of business
- Utilities that carts and catering bars don’t incur
Coffee in Churches
Coffee in church settings has changed greatly over the past decade. Over extracted coffee made in percolators is becoming a thing of the past. Today more and more churches invest in fresh roasted and fresh ground coffee of all types, from espresso bars serving up espresso based drinks to state of the art drip brewed coffee. People are slowing down and meeting over coffee. Churches are being started by opening coffee-houses in a targeted community, providing a fresh way of meeting people and an informal atmosphere for worship services. Others see a business opportunity to open a coffee bar in a large church enabling them to sell more drinks in a shorter period of time, as a part time business.
The advantages include:
- People slowing down to meet each other
- It is a statement about the make up of the church
- It creates an environment for the arts (music, poetry, art shows)
- It can create revenue
- For church planting it creates a place to engage a community
- For church plants it provides a worship space
- For church planting it creates revenue
The challenges include:
- Start up cost
- Much training for unskilled volunteers
- Spills
