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How To Start A Coffee Shop ☕ [Easy Step-By-Step Breakdown] | How To Open A Cafe Business 2020



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has it always been a dream of yours to

build your own coffee house in your own

cafe if it is then you are in luck

because we're gonna be diving into the

step-by-step process from A to Z and

building your own cafe so make sure you

guys keep watching hey guys its Wilson

here sir owner and owner of multiple

seven-figure business just sold my ice

cream chain and that's reason why I'm

creating this video for you to give you

the step-by-step guide in creating your

own cafe if you guys want to learn more

about restaurant strategy small business

tips tricks hack strategy of all sorts

make sure you subscribe along the

journey because that's where I'm gonna

be sharing a lot more of these with you

now without further ado let's dive right

in the first step in building your cafe

is identify your why identifying your

why is not some kind of cliche out there

it's not kind of things that people talk

about just for the sake of talking about

it

it is the motivating factor that pushes

you out of bed to work 12 hours 14 hours

days and then go back home and they

repeat this whole thing day in day out

for years to come it is the sole reason

of your existence so reason of why your

cafe is inexistent this is what you

stand for and why is it that you want to

bring your creation to the world by you

identifying your why you have now have a

guiding post now you have a lighthouse

in the middle of a storm that guides you

through all the hardship it becomes that

light of yours that is a necessity for

any business out there because when

building a business without this

lighthouse you're gonna get lost you're

gonna be running into hardships you're

gonna be running into issues with your

stomach issues with a city issue with

health authorities issue with cash flow

without this light post without your why

you're gonna become lost you're gonna

give up way way faster then if you were

to identify your why this becomes your

story and this becomes why people come

to you and how people identify with you

and this becomes a reason of you pushing

through all the hardship

now I understand that this concept is

very hard and very difficult for people

to visualize and conceptualize which is

the reason why for every step that we

have we are gonna build this restaurant

together we're gonna build this cafe

together and this cafes name is called

Wilson's cafe now let's dive into

Wilson's cafes why Wilson has a cafe he

wants to build this concept in order for

him and his friends to come and hang out

he wants a place where he doesn't feel

obligated to spend a lot of money he

wants a place to actually hang out with

his friends to communicate with his

friends to play games with his friends

he just wants a place outside of his own

home in order for them to gather

everyone together which creates a sense

of belonging and that's a reason why he

chose to create a cafe concept and that

is his why and as a side note

Wilson's why might seem very very out

there very very in the cloud very very

generalized

and it is completely fine having a wise

statement does not have to be something

not as rocket science it could just be

something that feels right to you

because this is what motivates you to

jump out of bed it is what motivates you

through all the hardship for me for

Wilson's cafe if I can create a place

where all my friends can come hang out

and to feel belonged that's what makes

everything else worth it and that's what

I need to identify my why the second

step in creating your cafe is to

identify your concept and what I mean by

concept is do you want to have a cafe

that has seeds for people to come and

sit and enjoy their food and also their

offerings or do you want to create a

space where people can come in grab and

go or is it going to be a food truck

kind of space kind of cafe where you

know people can come and go as they wish

and have minimal seating at the end of

the day identifying your concept is key

in order for you to know what you're

trying to build if you guys want to know

more about key concepts of restaurant

types and cafe types definitely check

out this video I dive deep into the four

different concepts pros cons etc now as

we build Wilson's cafe Wilson's cafe is

all about creating a space for people to

feel belong for people to connect free

from all the different distractions from

their phone which is the reason why

Wilson's cafe is gonna have intimate

ceilings we're gonna have a lot of

comfortable seats which allows people to

come and sit for hours to come which is

completely fine because all I want to do

is to create a space for people to feel

the loan and thus I'm choosing concept

number one is going to be a dine in cafe

as a side note when we're choosing the

different concept we need to identify

the different types of stress level we

want do we want to have people and we

want to have waitresses go out there and

serve our customers or do we not want to

have to deal with extra labor like that

do we want to have a place that is gonna

be a lot more investment or do we want

to have a smaller space for people with

a grab-and-go all this needs to come

into consideration when deciding on the

concept that you choose for your cafe

and once again check out this video if

you want to understand a little bit more

about the different variables that come

in to the concept of your restaurant the

third step in building up your cafe is

location location location location this

is something that we always hear about

and for us identifier location is key

when it comes down to it we always want

location that has high foot traffic now

with high foot traffic comes high rental

costs now it's your turn to determine

how much traffic you want and how much

money you want to spend if your deep

pockets and you want to spend $10,000 on

rent on a month every single month then

you can perhaps have a coffee shop in a

very highly dense location such as a

downtown financial district etc at the

end of the day it's identifying your

budget and identifying the fact that if

you have lower budget then the walk-in

traffic would be less again with

location there are a lot more variables

for you to consider such as the

visibility how visible is your

storefront how visible is if we're drive

by traffic that's also very important

for you to consider whether this look

is good for your cafe or not the crime

rate whether you want to have a location

in Downtown Eastside that is super a lot

of druggies and so on and so forth or is

that something that you're okay with

while all these different variables

comes into play when it comes to the

rental rate and it should come into

calculation when you're deciding on the

location that you're choosing whether

it's gonna be fitting for your concept

or not we also talked about that there

the accessibility the more accessible

your location the higher the rent as

well

so identifying the different components

is crucial in order for you to decide

the location you want your restaurant

and your cafe to be if you want to learn

you learn more about location selection

definitely check out this video because

I dive in deep about how to choose the

right location for your restaurant and

your cafe now for Wilson's cafe we're

choosing a location that is around two

to three thousand dollars in rent we're

choosing in a location that is 10

minutes away from the University we're

choosing it away at a location that is

right in front of a bus stop we're

choosing at a location that has drive-by

traffic and the location is relatively

smaller because we need to be able to

justify the rent which is at two

thousand to three thousand dollars and

on top of that we need to have a place

that is cozy that has a lot of seedings

around as well so that's a reason why we

chose our first location at West

Broadway additional for you when you're

choosing a location for your cafe is to

look and hunt from multiple locations

never really fall in love with one

location just because everything just

looks right never fall in love with that

because once you fall in love with it

you neglect all the variables you

neglect being analytical you're now

using your emotions you're willing to

pay additional premium because you fell

in love with the location so never ever

fall in love with location because you

want to be able to have the best rates

for the best bang for your best buck so

look at multiple different locations and

by then you're going to be able to

choose the right look

for your cafe the fourth step in

building up your cafe is to have your

budget have your costs all identified

when we're talking about costs we're

talking about the rental cost for your

location understand how much can you

budget for your rent understand how much

the location is gonna cost you for the

build-out I highly recommend choosing a

location that has already filled out

book items for example they're saying

degree shot and that we gonna save a lot

more costs then if you were to choose a

brand-new retail location then you have

to dig up all the floorings create your

own grease trap have your own pipe

plumbing so on and so forth and that's

gonna be super costly for you to have

this build up your renovation cost is

gonna be skyrocketing and that's not

something that you would want which is

the reason why whenever you're gonna go

for your location scouting I would

highly recommend to go with your

contractor because they're gonna have a

better idea of how much things are going

to be for your location mixing with

costs aside from build-out is your

equipment how much are you gonna be able

to spend on your equipment do your

budgeting based upon the different

equipment that you need for your cafe if

you guys want to learn more about the

equipment needed definitely check out

this video right here every setup is a

little bit different but nonetheless the

basic components with ice machine under

counter cooler sound up chest freeze POS

system these are all fundamentals for

your operation and it's not something

that we want to cheap out on but we

always want to have a bargain and

discount for these items now where are

you gonna be able to get them it is okay

to go to auctioneer sites and a lot of

times they these items are from

restaurants that closed within a year

two years of operations and they're in

pristine condition 20 30 even 40 percent

off so this is a place where you're

gonna be able to find a lot of good

bargains and in addition to that make

sure you calculate the cost it takes in

order for you to operate your business

cause it takes for you to break even and

all those goodies for you to identify

all the cost that's involved with

running your

business is key for your success because

now you can budget accordingly without

understanding your costs you're gonna be

basically rolling into dark you don't

know how long it lasts you don't know

how much you can afford from marketing

you don't know how much you can afford

to be without business from four months

an end which is the reason why having

clarity on your cost is essential for

your cafe's success for Wilson's cafe we

basically our cost is broken down into

our location or location is amazing it

was previously a cafe already which is

the reason why we're saving a ton on

renovation costs

we're basically only doing lipstick

renovation which means painting some

wall graphics and new furniture and

that's about it we don't need to do any

structural change which is the reason

why our cost is much lower than expected

in addition to that our furnitures are

leased and on top of that we go to

auction here sites like what I was

recommending and thus we're able to keep

our build-out costs below $100,000 the

fifth way to build out your cafe is

branding what does running mean it's way

way more than just a local creation okay

a lot of people think that branding is

just about the logo unfortunately it is

not branding is everything that your

customers experience whether it be from

the logo to your interior design to how

you put together your menu to how you

you put the uniforms to basically how

your website looks your social media all

this comes into branding and it is

essential for you to understand and

identify all the different branding

pieces right from the get-go so they're

not what you can find alignment across

all the visual aspects than your

customers would see whether it from logo

whether it be your banner whether it be

the sandwich boards all this thing needs

to be able to align in order for you to

create this coherent image for your

customer and identity it's all about the

experience branding is about the

experience that your customers feel when

they come into your cafe definitely if

you guys want to have more resources in

building

we're brand there are definitely

multiple ways to do that you can either

check out online resources such as

upwork or you can check out this video

where we talk about branding and this is

a huge video that we break down

everything from scratch and it's super

super helpful if you haven't had a

chance to a checked out that video make

sure you guys check it out super super

helpful

now the branding for Wilson's cafe is

gonna be hip it's gonna be inclusive

it's gonna be Instagram Abul friendly

because identity

our clientele is amongst friends okay

we're talking about the Millennial crowd

that we want to be able to hit which is

a reason why everything in there is that

modern but Instagram bull friendly vibe

to it we also have a communal table

right in the middle so then that way

everyone can pull in together we're

gonna have board games in the middle so

then people can actually feel belong

they're connecting with each other

they're playing games they're not on

their cell phone we also have side

tables for the couples that just want to

come in enjoy a cup of ice cream enjoy a

cup of coffee and just chat and that's

the ambience that we want to be able to

create the music not we gonna be playing

our smooth jazz kind of music so than

that way it gives us this really

relaxing type of feeling we're gonna

have a lot of greeneries in our shop as

well because young Millennials love

Canaries they love that hip feeling to

it and that's the branding that we're

going for for Wilson's cafe if you find

any value from this video whatsoever

make sure you smash the like button

because it only shows me that this is

the right content that I need to create

more for you in the future now let's

dive right back in the next step in

creating your cafe is menu design many

design is huge when it comes to

profitability of your cafe a lot of

people think that you know what I'm just

gonna sell coffee sandwich and that's it

well attendant date you need to

understand one thing menu items needs to

be up your long items ok what we're

talking about is that every single day

of the year you're gonna be able to be

busy you're gonna have food offering

that is acceptable for your customers

this is one mistake that we made very

early on with our ice cream shop

initially we were selling ice cream and

we were super busy during the summer

months once we got into the winter

months we were

not busy at all we're in the red because

we don't have offerings for customers

during the winter time and in turn we

learned the hard way to have items that

is good for year-round we and we then

offered hot chocolate we offered hot

food and so on and so forth and that

allows us to balance off the revenue for

a whole year's worth of revenue instead

of just banking on the summertime in

addition to understanding that your menu

items needs to be year round you need to

identify high profit margin items and

mix that with items that don't have much

margins as an example if you're creating

a cookie cranium cookie it would cost

you around 50 cents get yourself four

five dollars that allows you much much

more margins to play with and in turn

allows you to actually compensate for

items that has very little margins to

play with and in turn allows you to

create a profitable menu mix and that

allows you to have more profits in your

pockets at the end of the day

understanding the math and the cost of

goods sold behind every item that you

sell is crucial to your cafe's success

now for Wilson's cafe we're gonna be

offering drip coffee we're gonna be

offering expresso we're gonna be

offering ice cream we're gonna be

offering sandwiches and on top of that

we're gonna be offering to Co items and

the reason why we have a wide range of

items that we're serving is because I

want to be able to have a food item that

allows people to come in for breakfast

people that come in for lunch people

come in for takeout people that come in

for dinner time and then that way I can

run up my revenue and on top of that I'm

creating a lot more items that are high

and margins that would subsidize for my

sandwiches which cost a lot more to make

and I'm gonna make a lot less money with

it and that's Wilson's cafe now that

we're getting closer we have our wise we

understand our concept we understand the

location cost branding and menu it's

time to put everything together into a

business plan why is it that you need a

business plan first of all you need a

business plan for your own guidance this

becomes your own roadmap that allows you

to have clarity to go and actually from

point A to point

be at the end of the day business is

only a vehicle to bring us from point A

to point B so identifying this whole

roadmap to the best of your ability is

key to your success if you don't have

this roadmap it's like rolling the dark

you don't know where you're going and

you're just going to be going in circles

and that's the reason why having a

business plan is crucial for your own

success if you guys want to learn more

about how to build a proper business

plan definitely check out this video I

dive deep into all the components

necessary for business plan another

reason why having a business plan is

crucial for your success is because if

you like funding if you want investments

from either angels from banks or venture

capitalists you need a business plan

your family members - angels investors

the venture capitalists none of them

know the vision that you have in your

mind they don't know where you're trying

to go they don't know where you stand

they don't know your road map which is

the reason why if you ask them for money

they're not gonna give you money your

family is not gonna give your money your

friends are not gonna give you money

whereas if you have a business plan that

has everything well thought-out if you

have all these things components in it

and checking out this video you're gonna

be able to create a bulletproof business

plan that answers all the questions that

your investors are going to be asking

and once they have no question no doubt

then you're gonna get your funding and

you're gonna have that investment it

takes in order for you to start your

cafe now with Wilson's cafe I put in the

concept that we have the car target

audience where we want to be in the next

year where we want to be in the next

three years where you want to be in the

next five years we have our financial

projections all this good stuff into our

business plan and we've submitted to the

bank and the bank gave us a $200,000

loan to start our cafe now for the most

important part of running your cafe is

staffing staffing is one of the biggest

components of your team and your project

without

or staff you're gonna be left without

arms you're gonna be left without legs

you're gonna be running everything by

yourself and that's not what we want to

do which is the reason why having proper

staffing is so so important right from

the get-go we need to identify the

culture and that really comes back down

to your why you need to hire people that

believe in your why they believe in the

mission that you want to achieve and in

turn they're gonna be on the same boat

we're gonna be all rolling in sync on

top of that you need to create your own

policy manuals that it manages the

different expectations that your staff

might have for your company and that you

have for your staff at the same time

this creates a much better culture

because now that everything is written

everything is clear it creates and

actually removes a lot of friction from

a lot of the occasions that might happen

in the future

now with Wilson's cafe not only do we

have a policy guidebook that sets the

right expectation we also have manuals

created manuals for every single role

from barista to cashier to general

manager we have a policy and we have a

manual for each of these roles why is

that the case it is because I don't want

to be at Wilson's cafe working 12-hour

days I want to be on a beach sipping on

pina coladas now how do I achieve that I

need a team that knows what they're

doing I need a team that has a proper

culture a team that's gonna fight for

our Y and that's a reason why we have

these manuals I'm going to train the

team properly I'm gonna incentivize them

by giving them proper training and all

the goodness definitely check out these

videos up here we talked about how do

you entertained your all-star team we

talked about how do you hire the best

talent and all this good stuff as a side

note when we're creating a business is

all about a vehicle a vehicle to bring

us from point A to point B so what that

means is the more and the faster that I

can pluck myself out from the working in

the business then I can work on the

business I can create an environment

that is going to be belonging for

everyone that

and I can work on building up a culture

that really works and that's the reason

why you want to be able to build a team

that can serve your customers for you

while you build everything else so there

you go the step by step process in

creating a cafe at the end of the

creating cafe is not rocket science you

just need to follow the steps to do that

basically I broke down how I built my

ice cream shop and turned that ice cream

shop into a seven location chain which

ended up being acquired and I broke down

all the fundamental steps and put it on

the board all for you so then that way

you can - can build a successful cafe

out there if you guys want more

resources make sure you download from

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along the journey because I'm gonna be

sharing a lot more of these goodies with

you I'll see you guys in the next week