How To Start a Coffee Shop Bookstore

How to open a coffee shop and bookstore

Open a Coffee Shop Bookstore Business

Coffee and books make a perfect pair.  Additionally, both can offer complimentary income streams to an existing or new coffee business.

Many entrepreneurs are interested in starting a coffee shop and opening up a bookstore because of the natural pairing. 

In opening a coffee shop bookstore, you will be marrying two different businesses that are quite independent and require other skills to manage and maintain.

A coffee shop and bookstore can have a positive symbiotic relationship, leading to greater profits for the owner(s). We believe starting a cafe bookstore business is viable in many communities and can be a great coffee shop concept.  

While it is possible to create a business out of each of these ventures separately, the opportunity for even greater success by combining both can be appealing. They can create multiple revenue streams that can be closely related and helpful to each other.

We will outline a few ways to start a coffee shop bookstore business in today's post. 

Open a Coffee Shop Bookstore Business

Scenario 1: 

Start a Coffee Shop Within an Existing Bookstore

In this scenario, you have an existing bookstore owner who would like to offer your customers espresso-based coffee drinks. Another revenue stream would be helpful in an era where bookstores are struggling with online competitors.

If you have the physical space to install a coffee bar area – and your existing bookstore business is properly zoned – then starting your café or coffee bar can be manageable if the right steps are taken.

Since your existing business plan will be changing, a thoughtful updating of your current bookstore business plan should be done. Looking at your already existing space and budget, you will have to decide on your coffee shop menu and the necessary coffee equipment you'll need. Additionally, you will want to research local permits – from your health and buildings departments.  And, of course, you will want to hire great baristas. In addition, training your baristas will help you achieve your customer service and revenue goals.

Additionally, you may need to renegotiate your current lease with your property manager, among other essential items.

If you already own a bookstore, you will need to:

• Confirm zoning requirements
• Secure any additional permits
• Figure out design and layout issues
• Buy and install coffee equipment
• Choose your coffee roaster and other vendors
• Train your staff and update your cafe POS System
• Develop and execute a marketing plan
• Recalculate your break-even point

In addition to the list above, you may want to consider your competition in your general vicinity. Are there any current coffee shops or drive-thru coffee stands that could pose stiff competition? Are there any coffee shop substitutes? Substitutes are those businesses that can provide coffee and other products you might sell in the vicinity. This may be a fast-food chain, a pancake house, or a bistro.

Take a look at the local competitive environment. If you decide that your business will still benefit from opening a coffee shop within your business, you should/may proceed with your coffee shop bookstore planning.

Open a Coffee Shop Bookstore Business

Scenario 2:

Start a Bookstore with an Existing Coffee Shop

Like the first scenario, if you were a bookstore owner already up and running, starting your café/bookstore can be much easier.

This is also true if you already have an established coffee shop business. 

Expanding your space to include books may be an exciting addition to your business!  Managing a bookstore might require different expertise, such as book inventory management and ordering. It may also require you to reexamine hiring, design and layout, and other essentials such as a new POS system. 

• Confirm zoning requirements
• Additional permits
• Rearrange space
• Renegotiate your intentions with your property manager.
• Buy shelving
• Connect with publishers and wholesale book warehouses
• Train Your staff and update your POS System
• Develop and Execute Your Marketing Plan

When you look at both of these, there doesn’t appear to be much of a difference. Well, it might be easier to start or add a bookstore in addition to your café because of the permit and health department requirements.

Spacing always seems to be a big issue for both cafe and bookstore scenarios, so making sure that you have enough space and enough back area space for storage, sinks, a mop sink, etc., will be important as well.

In the coffee shop bookstores we've interviewed, we found that the bookstore and coffee shop often compartmentalize their staff and management, especially if they are a bustling business. 

Scenario 3:

Start Your Coffee Shop Bookstore From Scratch

If you are starting a coffee shop from scratch, you may have an easier time than the other two scenarios because you will be able to dictate your location and physical space and fulfill your coffee shop concept from a clean slate.

If you owned an established space already, it might be hard to build out your cafe area or your bookstore area. Having a well-thought-out coffee shop bookstore business plan written will help you think things through.

Here are the steps you might want to take:

• Start your research
• Write your coffee shop bookstore business plan
• Look for the right location
• Confirm zoning requirements
• Get Necessary Permits
• Sign a property lease
• Rearrange space
• Buy and install coffee equipment
• Buy and install shelving, tables, and chairs
• Choose your coffee roaster and other vendors
• Train your staff and update your cafe POS System
• Develop and execute a marketing plan
• Recalculate your break-even point

Each of these elements is very important to your coffee shop bookstore business. They each require deep thought and reflection. Developing your concept, writing your coffee shop business plan bookstore, your equipment, and your property lease all require some well-thought-through decision making. 

Coffee Shop Bookstore Options Summary:

Start a Coffee Shop Bookstore Steps

Depending on which option you choose above, you will have to take specific steps to open your coffee shop bookstore. These steps will vary depending on your existing business or whether you are starting a coffee shop from scratch.

However, each of the mentioned coffee shop bookstore options does have similar steps, which we would like to outline below.

Write a Coffee Shop Bookstore Business Plan

Whether you are just starting out or have an established business, it's best to start by writing a business plan before proceeding.

A business plan will help ensure that you've taken the time to think about each step specific to your coffee shop bookstore. While it takes work and thoughtful planning, the process of writing out your business plan is invaluable.

Writing a business plan has additional benefits, including saving money and time and determining whether your coffee shop bookstore idea makes sense.

For more information on writing your coffee shop business plan, read How to Start Your Coffee Shop Business Plan.

Develop a Complete Budget

Once you develop your concept, determine your budget. Depending on which scenario you choose above, you'll have different expenses. Ensure that you budget for your complete startup requirements (the coffee shop side, as well as the bookstore side) and determine your operational budget. Your operational budget will include your labor costs, inventory costs, and leasing or rental costs.

Find the Best Location

A coffee shop bookstore can be a fantastic asset to your community – if it's located in the right place. Like most retail businesses, your location decision is often the cornerstone of your success.

While you want to ensure that your target market is served, other practical considerations are also vital. These factors may include having enough parking spaces or being easily accessible for pedestrians, lighting, and safety issues, among others. In addition, it has to fit in your budget, come with good lease terms, and allow you the space to realize your full vision.

Know Your Target Customer

Your coffee shop bookstore location, and your target market are always linked. Spend time understanding who your coffee shop bookstore will be serving – and general coffee shop locations will rise to the surface.

If you need help determining your target market, consider creating a sample avatar description for your typical customer.

Your Coffee Shop Bookstore Avatar description:

Jane is a 27-year-old graduate student who lives and works near City University. She will stop into Coffee & Books almost daily for her favorite latte and choose from an assortment of muffins. She loves picking up the latest books and magazines we feature on science before waiting for her next class.

Helping you understand your customer will help you sort out your business plans, determine your location, and focus your attention on your menu items.

Coffee Shop Menu Items

Determining your menu will significantly affect your budget, equipment costs, and even hiring decisions.

Figuring out what's on your coffee shop menu board will also help you figure out just how much space you'll need. Your menu is a great way to differentiate yourself from your competitors and attract the clientele you are targeting.

Your menu development mixes in many variables:

• Who are your customers, and what do they want to buy?
• How much space do you have?
• Does your menu strengthen your branding?

If possible, you'll want to determine your menu and type of service hours of operation before you spend money on coffee equipment or remodeling.

Pro Tip: It's easy to want to be all things to all people. If you are unsure of how to proceed, focus instead on simplicity. Keep your menu simple, doable, and practical.

Coffee Shop Bookstore Competition

Unfortunately, bookstores aren't as plentiful as they used to be. But that doesn't mean that you won't have any competition.

While online booksellers now dominate the retail book market, you can still carve out a profitable space in the brick-and-mortar realm.  As you determine where you plan on opening your coffee shop bookstore, consider the existing competition in the area. You may also keep in mind the role those substitute businesses can have on your sales.

Whether they are an existing bookstore, stationery shops, fast food joints, corporate coffee shops, or independent cafes, you'll want to fully assess how your coffee shop bookstore will match up against established businesses in your area.

Lease Terms (may need to renegotiate)

The nature of your cafe bookstore business will often require the approval of the owner or property manager. If you have a small bookstore but want to add a coffee bar, your property manager may need to sign off on any remodeling. Look into your current lease terms and discuss this with the property's owner.

You may need to do light remodeling, add a small kitchen, or install a seating area to make your vision work. Additional changes to the plumbing, electricity, or ventilation systems should be pre-approved in writing before spending the time and money on the project.

If your property owner or manager is reluctant to change the lease terms or allow you to remodel, you may consider finding a new coffee shop bookstore location.

For a deeper look at coffee shop property leases, read: Things You Should Consider Before Signing Your Coffee Shop Lease.

Research Your Permits

Take a moment to research the necessary local county agencies involved in your coffee shop bookstore's permitting. For example, if you have an existing coffee shop, you'll most likely already know the staff at your local health department.

If you have a bookstore, you will need to contact the local health department and buildings department. Additionally, you may need to submit a revised floor plan and get approval from the fire marshal to determine occupancy.

In your planning phase, you will want to make the calls, collect the requirements, and determine how they will come together to satisfy each agency.

Buy Your Coffee Equipment and Vendors

Choosing the right coffee equipment will be essential to your planning and constitute a big part of your expenses.

Once you understand your target market, your menu, and your space, you should start shopping around for your coffee shop equipment. Several coffee equipment sellers in the United States and Europe can ship anywhere in the world.

Coffee equipment such as an espresso machine, coffee brewers, ice-makers, coffee grinders, blenders, and toasters may be what you'll need. Additionally, you will want sinks, storage racks, refrigerators, and small wares.

Along with your equipment comes choosing your food vendors, paper suppliers, and your wholesale coffee roasters. I recommend that you develop partners with local vendors. Having the freshest items from local businesses is ideal for coffee shop businesses.

For further information, read How to Choose Your Coffee Shop Coffee Equipment.

Getting Your Book Inventory

As a bookstore café, you'll need to have an inventory of books. If you are an existing bookseller, you'll have established contacts and vendors. If you are starting from scratch or a coffee shop owner, you will need to look at where you will get your books.

Resources like the Nonfiction Authors Association have resources that will point to the wholesale distribution of books.  You can also look at organizations like the Independent Book Publishers Association. Other resources include BookDepot.com.

You may also consider selling used books if you sell new ones. While accepting used books is an entirely other skill, the payoff may be worth it.

Many used bookstores often get books dropped off by people who no longer want them. Some offer store credit or cash for a fraction of the cost. You will have to ultimately decide what the best model for you to get your inventory would be

Market Your Coffee Shop Bookstore Like Crazy

As your established business or your new coffee shop bookstore gets ready to open its doors, you will want to invest in marketing your coffee shop bookstore like crazy.

Marketing like crazy doesn't have to be expensive. But it should be well-thought-through.

Take care of the basics, like developing your logo and brand, setting up your coffee shop website, opening your social media accounts, and reaching out to bloggers and local media. You may also need a total makeover and rebranding, so you will want to figure that into your overall budget.

Your Coffee Shop Bookstore Grand Opening

Having a “grand opening” weekend or month will drive community awareness, buzz, and excitement.

Your grand opening should be the start of your year-long master marketing plan to introduce (or reintroduce) yourself to your community and your customers. Hook them in with loyalty cards and stay laser-focused on building relationships.

Invite local authors to discuss their books. Host music events if possible. Partner with schools, colleges, or senior organizations to boost your traffic as you celebrate your opening.

For more information, read How to Prepare for Your Coffee Shop Grand Opening.

Start a Coffee Shop Bookstore

Successful Coffee Shop Bookstore Concepts

Over the years, we have seen various concepts, whether the storm of today's volatile market for books. I can't emphasize enough the importance of doing the necessary market research, writing your business plan, and picking out the perfect location for your specific concept.

College Bookstore Café

While colleges and universities have their own bookstores, there are often one or two independent booksellers that thrive where students and academics live. Could this be your coffee shop bookstore concept?

If you live near colleges, universities, or other schools – having a bookstore café could be a winning option. You may work with various college departments to supply students books or supplemental learning materials. Or you can add a community space for additional off-campus lectures, music events, and fundraisers.

Adding local school merchandise and offering regular discounts to your neighboring schools could also be a win-win situation. A built-in local fan base wanting school merch could also help drive sales.

Newspaper Coffee Shop Bookstore

Newspaper stands are often relics of the past. But there is still a need for such coffee shop bookstores. And in specific communities, such a bookstore café concept could be a winner.  Your location, target market, and product offerings will play a significant role in exploring this path. Therefore, your market research to determine viability will need to be thorough.

Niche Bookstore Café

Niche bookstores that focus on a particular issue like politics, science, tech, or spirituality may be the most viable option in today's marketplace for bookstores. While trying to appeal to everyone may seem like a good strategy, it can often dilute loyalty, branding, marketing, and sales.

However, the more specific the niche, the more success you might have – as long as the market base is big enough.

If you are the niche bookstore café for all things science or politics in your area, then you set yourself apart from the competition.

Start a Coffee Shop Bookstore

Start a Coffee Shop Bookstore

Additional Questions:

Is a coffee shop bookstore profitable?

Coffee shops can be profitable, and existing bookstores can be advantageous as well. But it's no secret: Bookstores everywhere struggle to stay in business. Only those willing to adapt and cater to a changing market can be sustainable.

Clearly understanding your customer, your competitive advantage, and the ability to market and move your inventory will play a critical role in your profitability.

However, coffee shops can be very profitable. Adding a small selection of books or magazines may be appealing, drive additional sales, and increase profitability.

The idea with a coffee shop bookstore is to leverage the possibilities and sales to serve your market and generate more money from a new revenue stream.

What are other coffee shop concepts good for starting a business?

Starting a coffee shop bookstore is one of many coffee shop business concepts that may work in your city or area.

Once you determine what area you want to start a coffee shop, take some time to figure out what your potential customers want. What would coffee shop concepts resonate with them?

For more information, please read our article, 50 Great Coffee Shop Concepts.

What are the best books to start a coffee shop?

Starting a coffee shop is a comprehensive endeavor. Rarely does one book cover everything you need to know to run a successful coffee shop. With that said, we've written the most comprehensive coffee shop business book, Getting Your Flow, How to Successfully Launch Your Coffee Shop.

We have also written supplementary coffee shop business books that are important to review before you open a coffee shop.

For more information, please read The Best Coffee Shop Books to Start a Coffee Shop.

How to Start a Coffee Shop Bookstore

We've covered much ground here. Starting a coffee shop bookstore can be an exciting and profitable addition to your local community.

Remember:

• Research your concept
• Determine who your customers will be
• Write your coffee shop business plan

Let me summarize a lot of the key points to consider when starting a coffee shop bookstore below:

• Start your research
• Write your business plan
• Confirm zoning requirements
• Get additional permits
• Determine your new design and layout
• Resubmit plans to agencies
• Renegotiate your intentions with your property manager
• Sign your coffee shop property lease
• Choose Your Coffee Shop Menu
• Buy and install coffee equipment
• Buy shelving, furniture, and fixtures
• Develop and execute your marketing plan
• Choose your coffee roaster and other vendors
• Recalculate your break-even point
• Connect with publishers and wholesale book distributors
• Train Your staff and update your coffee shop POS system
• Market your coffee shop bookstore like crazy

Open a Coffee Shop Bookstore Business

Your Coffee Shop Bookstore:

Planning, Planning, & More Planning

Your coffee shop bookstore success all comes down to your research and planning.

We encourage you to plan, research, seek advice, write your coffee shop business plan, and get the expertise of people who are already doing what you would like to do.

We've created a coffee shop startup kit that allows you to hear directly from coffee shop owners and entrepreneurs who have already succeeded or failed.

We believe there is a lot to learn from speaking from those who have already done what you want to do. Our common-sense approach to learning how to start your coffee business can help you develop your retail coffee expertise.

Are You Ready To Get Started?

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Coffee Shop Startups

Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully. Over the last 11 years, we've helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits. We support business owners who want to start a coffee business by providing them with valuable information on starting their coffee business successfully.