Café Small Businesses
There’s no question that Australians love their coffee. With a well-established coffee culture that’s gradually grown over the decades from the numerous Mediterranean, European and Middle Eastern migrants to Australia’s shores, coffee is heavily ingrained into daily life across the country. While technically considered a luxury item, it’s clearly one that people are willing to pay for.
Cafés, then, fulfill a valuable space in Australian public life. Ubiquitous in major cities and small towns alike, cafés also offer a space that it is continually ripe for new competition.
Despite coffee’s wide cultural presence, it’s notable that no major players or conglomerates have really been able to dominate the café space in Australia in a fashion akin to the USA. It’s clear that Aussies have a preference for independent outlets, with around 95% of cafés in the country classed as independent.
While COVID-19 has had an impact on café businesses across the country during 2021, it seems likely that the industry will make a swift recovery as the pandemic continues to subside in Australia. So if you’ve got a love for entrepreneurship and the hospitality industry, opening a café can be the perfect way to make your mark in the business. If you’ve got the right skills, the right location, the right people working with you – and the right finance – then you’ll be well-equipped to make your own success story.
Café Small Businesses in Australia – the Statistics
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Cafe Loan Frequently Asked Questions
There isn’t much Australians love more than good coffee. Specialty coffee in a well trafficked area could very well be a good investment.
Banks or lending institutions provide café loans – each one is different though, so thoroughly research the different institutions, loan types and requirements to find the right fit for you. You can find our qualification requirements here for a quick and easy café loan.
Get a good handle on the finances, create a strong brand and market effectively to your ideal customer, and invest in all aspects of your business (equipment, people, and POS/inventory systems).
Strong marketing strategies can effectively bring in new customers through a variety of channels (e.g. online, offline and on-premises). Here are a few marketing hacks to fill your café.
Improving backend efficiency, such as invoice payment and improving cash flow, is one way to make your coffee shop more efficient. Listening to feedback from customers and employees can show you more specific areas needing improvement. POS systems, the quality of food and service, cleanliness, etc. are all things to focus on if there are recurring complaints.
Use the right POS systems to keep track of sales, invoices, payments and inventory. Get a good manager and hire experienced staff. Consistently delivery fantastic customer experience (service, products, atmosphere).
Start by coming up with a business plan, which includes identifying how much capital you need. Once you’ve figured out the resources needed, the next step for most new business owners is to apply for a loan to help with the funding.
This depends on your coffee shop location, the equipment you purchase, and your staff. It could range anywhere from $25,000 to $300,000.
The exact license requirements vary by state; however, typical licenses and permits include general business licenses, food handling permits and a music license.
Major risks include picking a bad location or signing a lease that isn’t the right fit. Hiring the wrong people, poorly designing space layout (especially for your baristas), and not investing in the right equipment can also be detrimental in opening a coffee shop. Knowing the challenges of running a café upfront can help you avoid unnecessary risk.
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