Coffee Shops: To Pour or Not to Pour

The popularity of coffee shops has never been more intense as it has in the past ten to fifteen years. It seems as though there is one on literally every corner. From giant franchises like Starbucks to local neighborhood coffee shops.

If presented with the chance to own a coffee shop or a franchise many people might jump without thinking about it first. Sure, it might appear to be a wonderful opportunity to own a business but the pros and cons need to be weighed to make it a wise decision. After looking at all sides, it might prove to be a chance worth taking or it might be that the competition is too stiff in your area.

The Pros

If it is a franchise opportunity, the biggest pro is that the shop owner is not alone. They have a giant corporation behind them to teach them along the way. They make sure the product is being supplied properly, to insure that their name isn’t be tarnished due to mishandling or misrepresentation. Typically franchise owners are given training before they open the shop.

If the opportunity is a local neighborhood shop, the pros are that as a local of the area, the locals will inevitably stop in to check out the coffee. This is the perfect opportunity to make the local coffee shop the morning gathering place. By adding features such as WiFi and newspaper delivery, more traffic will stop in for coffee. In addition, many people like knowing that they are contributing to the local economy.

Another pro side of owning a local coffee shop is the ability to serve whatever is desired. They aren’t limited to a menu created by the franchise. This also means that hours of operation are not set in stone and other variables.

The Cons

The major con when owning a franchise establishment is that there are rules and regulations established by the franchise that must be followed, the upfront money to start a franchise can often be more than starting a business that is not franchises and the number of employees that must be on duty is also typically specified. The bottom line is that there is not much flexibility when owning a franchise.

The downside of owning a local neighborhood coffee shop is that there isn’t a support system like a franchise offers. The owner of the shop has to learn on his own as he goes. There is also not a supply chain already established to help with outfitting the shop.

Decisions

Deciding to open a coffee shop is a major decision that should be approached from every angle possible to insure the maximum benefits of owning a business and going into it with eyes wide open, aware of the possible outcomes. Weigh the pros and cons and make the best decision based on knowledge.

-Katya Coen
 

Tags: business, Coffee, coffee shops, franchise, franchises, small business