3 Sure Fire Ways To Lose Money When You Open A New Cafe

closed for businessOpening a new cafe is undoubtedly tough. As one cafe opens another closes. In fact, according to research around 60% of all new cafe’s, restaurants, and bistro’s that have recently opened will sadly close within the first 3 years and within 5 years, that number reaches 75%. Despite this, opening the right cafe in the right location can be lucrative and this is why many hopeful entrepreneurs ignore the risks and take the plunge. With this in mind, here are 3 mistakes that many start-up cafe owners make that will lose them money and eventually their business.

No USP (unique selling point)

Let’s face it, in any given neighbourhood there are a multitude of cafe’s, bars, and restaurants all vying for a potential customer’s attention. Therefore customers need a reason to step into your establishment and not the one across the road. Firstly, great food and service is not a unique selling point, it’s more of a necessity especially if you want to stay in business. Instead you need to find another angle. It could for instance be nostalgia (eg, putting up pictures and memorabilia of local bygone days). Alternatively how about ‘accommodation’ (we’ll give you your coffee however you want it) or even sex (think US based restaurant chain Hooters ). The bottom line is that people remember emotions long after food and service, so you’ve got to make an emotional connection.

Terrible décor, awful furniture

There’s more to cafe furniture these days than brown tables and wooden chairs and as such cafe owners can really go to town on finding the right tables and chairs to match their décor. You can have the best service and probably the best coffee in the world, but if your furniture is uncomfortable or downright dowdy and your décor is enough to give your mother a fright, then you simply aren’t going to get people through the door. Even if you do, it’s unlikely that they’ll hang around for very long. Instead try mixing it up with a selection of sofas and low tables, funky bar stools and dry bar tables, and even the odd Ottoman or two. Match colours with your interior style or themed design and you’re on to a winner.

Unable to get a handle on your business

Many people dream of running a bustling cafe selling their home cooked wares. However, even though you might make the best Pavlova this side of the equator, if you’re unable to work out your cost to profit margins, or fail to market your business, or don’t have a clue about staffing costs, then you’re domed before you even set sail.

At Cafe Solutions we might not be able to help with business advice but what we can do is supply you with great looking, value-for-money commercial cafe furniture. We have a wide range to choose from so why not check out our website at www.cafesolutions.com.au and see what we have to offer. Alternatively if you can’t find what you’re looking for then don’t hesitate to contact us directly on 07 3205 1616 and speak to our friendly team who can assist. Finally, if you’re in the Brendale area then why not pop into our showroom where you can see all the items first hand.

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