Waving goodbye to the boss was the biggest motivation to go it alone, say owners of independent cafés and coffee shops across the UK, but it’s hard work, they admit.
According to new research by the Caffè Culture Show, nearly six in ten (58.7 per cent) independent café and coffee shop owners were lured by the appeal of working for themselves and over a quarter (27.1 per cent) wanted a lifestyle change. But aside from a passion for coffee (33.5 per cent) and food and drink (42.7 per cent), over half (54 per cent) had no previous industry experience at all.
Staff and HR issues (38 per cent) and managing the finances (18 per cent) cause café owners the most headaches, while one in seven (14 per cent) say the hard work and long hours involved are the most challenging aspect of running the business. The most enjoyable parts of life behind the counter are providing great customer service and satisfaction (46 per cent) and being the boss and all that that entails (19 per cent).
Nearly seven in ten (68 per cent) café owners changed careers to start up their business, with hospitality (17.9 per cent), the public sector (13.5 per cent), business and professional services (8.2 per cent), and retail and leisure (8.2 per cent) the most common industries to leave. Their average age at start up was 41 and 56 per cent are women.
Finance
Money matters were the biggest hurdle for café owners at start-up stage. 30 per cent said finance was the biggest challenge, from raising initial capital to purchasing supplies, managing cash flow and costing menus. Savings were the main source of initial funding (60 per cent), followed by loans from the bank (31.5 per cent) or friends and family (30 per cent). More than half (54.2 per cent) say they underestimated initial start-up costs, 17 per cent significantly. Identifying the right location and premises (13.5 per cent) and finding the right staff (10 per cent) were also major challenges when getting the business up and running.
Best advice
When asked to provide the best advice to the next generation of aspiring coffee shop entrepreneurs, today’s café owners said:
- Research the local market;
- Get as much advice, training and industry experience as possible before you start up your business;
- Prepare for long hours and hard work;
- Never compromise on the quality of food and drink sold;
- Customer service is king;
- Keep a close eye on costs.
Optimism
Nearly six in ten (59.2 per cent) owners of independent coffee shops and cafés saw business performance improve in 2014 compared to 2013. 92 per cent are confident and optimistic about their business in the coming year, 80 per cent expect turnover to grow and over half (53 per cent) will increase staff numbers. Three in ten plan to open more cafés within the next two years.
Practical help and imnspiration
Caffè Culture Show Event Director Cheryl Carroll says: “Starting up and running an independent café or coffee shop is not for the faint-hearted, but the rewards are many if the business model is right. There are thousands of successful independent operators across the UK and we’re delighted that so many attend the show to share their knowledge and experiences. Many of the café owners we surveyed talked about the lack of advice, information and support they experienced when getting their business off the ground which is where we can help. Whether you’re hatching a plan to set up a new coffee business or looking for new ways to grow or diversify an established operation, our expert speakers offer practical help and inspiration to help boost your profits.”
Getting all the business ingredients right
Caffè Culture Show speaker, business adviser and ‘Coffee Boy’ John Richardson says: “One of the most fascinating statistics from this research is how many people changed career to open their first shop. Opening a coffee shop is a very appealing dream for many people but the reality of getting the business off the ground and making a profit is often very different.
“Success depends on getting all the business ingredients right from the start which means understanding that you’re going to become an accountant, HR manager, marketing specialist, lawyer and operations manager in equal measure to being a great barista or baker. In the face of huge competition from high street chains, the passion and work ethic of these independent coffee shop owners, especially those with no previous industry experience, is admirable. ”
The Caffè Culture Show
The Caffè Culture Show (#CaffeCulture2015) is the leading annual event for the UK café industry and takes place on 13-14 May at London Olympia. It attracts thousands of visitors with a passion for coffee from across the UK including baristas, café and coffee shop owners, and senior industry buyers. Show features include the Business Theatre and Taste Experience Stage, national barista competitions (#CIGS2015 #CupTasters2015), artisan food and drink products, and the latest kit from hundreds of leading wholesalers, equipment manufacturers, technology companies and suppliers to the café industry.
To claim your free ticket for the Caffè Culture Show click here