It can be difficult to open a cafe, especially if your budget is tight. But you can do it even if you lack capital and knowledge. Be sure to familiarize yourself with the basics of opening a café before you begin.
You can make your dream café a reality if you have passion, a plan or an idea in mind, and you have done enough research and planning.
We’ve put together tips on how to open a café with a small budget.
1. Decide what Type of Cafe you Want to Open.
You can save money by creating a concept for your coffee shop that is tailored to your budget and audience. You should focus on the experience you want to give your customers.
The coffee industry in Malaysia is growing rapidly, and a significant portion of that growth comes from consumers who buy coffee on-premises, outside their homes. The first thing to think about is what type of café you would like to open, and who you’d like to attract as customers.
This business offers a variety of ways to enjoy coffee. You can select from a variety of different types.
- A coffee shop is a cafe that allows customers to dine in.
- Coffee bar is a coffee shop that offers high-quality coffee.
- Convenient coffee kiosks – grab-and-go – where customers can grab an instant cup of coffee or a bite to eat, and then be on their own way
When making your choice, you’ll need to take into account the type of customer that you plan to attract. You may want to target people who are looking for a quick bite and a coffee before they continue their day. Do you want your customers to hang out in your cafe or just grab a quick coffee and eat before going about their day?
Coffee trends confirm that, regardless of the models chosen, customers will still come. The first step would be to choose which model is best for your business.
2. Find the Right Location
After deciding on your concept for a cafe, you will need to decide where you want to open. If you are not careful, the location of your café can make or break your business.
Remember that you should choose a location that minimizes your costs and maximizes your income, particularly if you are on a budget.
You may be tempted to choose a mature township as the location of your cafe, but it is best to avoid this area as they are already heavily populated and have intense competition. Rent would be very expensive.
Search for areas that are close by.
The growth of these locations can be a great opportunity for your business, as they benefit from the spillover effects from overpopulated towns. You can benefit from the reputation of the location, and also save money on rental costs!
If there is a low supply but high demand in an area, then that’s the one you should choose.
3. Plan Your Menu
Your menu will be either primarily beverage-focused, or food-paired depending on the concept and type of café you are going for.
A large menu can be expensive in either case. Consider simplifying your menu and offering unique items to make it stand out. You can also take advantage of lower-priced seasonal produce.
It’s best to start small and simplify your menu. You can always add more as you go.
Consider the following when planning your menu:
- Portion size to prevent leftovers and waste
- Finding local suppliers and establishing relationships will help you get the best price on ingredients
- Calculating the Food Cost Percentage for each Menu Item
Prioritise the quality of your product over quantity.
4. Rent or Buy Your Equipment
What you intend to serve on your menu will determine the equipment that you choose.
Understanding how often each piece of equipment will be used will help you make the right purchase decision. If the equipment will not be used often, consider buying a second hand option rather than a brand new item.
You can determine which equipment to invest in, and which you don’t need by creating a list of equipment in the order and priority that you use it.
You can also avoid spending too much by investing in equipment that is multipurpose.
To get the best deal, you should create a spreadsheet or list to compare the prices of the equipment that you are interested in purchasing.
5. Digital Marketing
We all know that people are always online. Digital marketing allows you to easily reach your audience, both current and future.
Although it may appear daunting at first, it is not as hard as you might think. It’s a relatively simple and cost-effective way to increase brand awareness and sales.
You can still run three ideas without spending a dime.
- Social Media Marketing
- Blog writing
- Claim your Google My Business Profile
Social media marketing
Social media is a part of our daily lives. We cannot deny that. It should play a role in your business. Even before opening, you should have a Facebook Business Page and Instagram Profile.
Consistency is the key to success in social media. Constantly sharing content and engaging your audience will help you build a strong social media presence. This will ultimately help your café increase sales and customer loyalty.
Blog writing
As people today turn to the Internet for information, blogs can be an effective marketing tool for your café.
By sharing useful and informative content, you can establish yourself as a leader in your industry. This will give you an edge over your competitors. Your audience will trust you more if they perceive that you are knowledgeable. They may even become loyal customers.
Still not convinced? Here are some other reasons to start blogging.
- Increases organic traffic to your site by using SEO and regular blog postings.
- Creates opportunities for to generate leads by adding a call-to action to each blog post, such as a free demonstration that customers are willing to trade their information for.
- Long-term results once a blog has been indexed, it will remain there for months or even years. This means that your blog can continue to generate traffic and leads.
Blogging as a strategy for marketing has so many advantages, that you should take full advantage.
Claim your google my business profile
Google My Business allows you to manage your business’s presence on Google. This includes Google Maps and Google Search.
By claiming, validating and editing your profile your customers will be able to discover more about your café.
6. Omnichannel Management
It’s hard enough to open a cafe on a budget, but the idea of having multiple channels of sales take-outs, deliveries and dine-ins and keeping track of them can be overwhelming.
It is for this reason that introducing omnichannel to your business will help automate and streamline your daily workflow.
Our System has all the features you need to expand your business, especially on a budget!
We allows you to:
- Cloud-based accessibility allows you to access real-time data anywhere, anytime.
- Automated employee management systems can streamline HR processes and improve operations.
- You can collect customer data to turn them into repeat customers
- Easily manage your inventory with composite Inventory Management
- There’s more!
Do not give up your dreams yet!
Even if you have limited resources, opening a café can be challenging. But with persistence and constant effort, you will be able open your cafe successfully!
These tips will help you make your dream of opening a coffee shop a reality.