How to Operate an Ethical Coffee Shop Business

There are real benefits of operating an ethical coffee shop business.

How to Open and Operate an Ethical Coffee Shop

Your Principles and Values Carry On In Your Business

When starting a new coffee shop, you create a company with an ethical, clean slate and full of potential for greatness.

A new coffee shop is a tremendous opportunity to create the dream business you’ve always wanted – and always wanted to work for.

If you have worked for others, you know just how important it is to run an ethical business. Many of you may have been hurt, let down, or disappointed in the actions of your previous employer’s management or ethics. But now that you have your own business, you can create an ethical company that reflects your values and vision.

As a coffee shop consultancy that generates most of our leads through our online platform, we create a lot of written content to help our readers and customers.

Unfortunately, we’ve seen other unethical websites copy our articles – unapologetically copy and paste our words from our site. It’s hurtful, frustrating, and unethical. Of course, we could challenge article piracy through Google, but the process is long and cumbersome. In many respects, the internet relies on the honor system. And there will be many people who dishonor that etiquette. This is unfortunate not only for us but for you, our readers.

In the end, we hope that online readers can see the difference between original and quality content versus plagiarized work. However, we also hold firm to the notion that nobody likes to do business with cheats.

We believe our ethics extend to our business. At Coffee Shop Startups, we aim to help ethical coffee businesses succeed. So, in today’s post, we’ll discuss how to operate an ethical coffee shop and reach your business’s full potential.

How to Operate an Ethical Coffee Shop

Long before you start a coffee shop, I believe that we hold certain principles, values, and ethics. These values will drive your business practice. You will likely want to see your business operate in the same way throughout the organization – from your manager to your employees to your vendors.

To affirm your values, begin to:

• Develop a mission statement
• Create a list of core values
• Come up with a plan to communicate these values

Develop a mission statement:

We believe in creating a mission statement for your business. It will serve as the rallying cry behind your whole business effort. It doesn’t have to be fancy or poetic. Just offer an honest synopsis of what principles your coffee business is founded on.

Create a list of core values

In addition to your mission statement, you may create a list of values important to you and your business. For example, values may include honesty, transparency, and protecting specific rights.

Ultimately, how you run your business will embody those values that you list.

Come up with a plan to communicate your values

You have two general audiences for your communication – your staff and your customers. Have a plan to communicate your values to each audience – separately and individually – to make the most impact.

An excellent tool to communicate your values would be through your employee handbook, website, social media posts, organizational emails, printed customer receipts, posters, and other postings in your employee breakroom or work area.

Of course, you can continually reaffirm your communication during staff meetings or individual meetings. However, modeling them is the most effective way to communicate your values.

Demonstrating your values every day – both to your employees and your customers – makes it very clear what direction you want to take your company. As the owner of a coffee business, your customers and your employees will look to you to set the stage for how your business will operate.

For a more in-depth discussion, read our post, How to Be an Amazing Coffee Shop Manager.

Your Competition

Never talk poorly of your competition (even if what you have to say is true). How you speak about your competition will reveal just as much about you as it does them. Consider taking the high road and let your actions, products, and service speak for themselves. Instead, concentrate on other real ways to beat the coffee shop competition. 

Ethical Business Practices

There are various real-world examples of demonstrating a high ethical standard for your business. These business practices can create real benefits, such as repeat business, customer loyalty, lower employee turnover, and a good reputation.

Let’s discuss a few business practice categories below:

How to Operate an Ethical Coffee Shop

Regarding Employees:

Treating your employees well is critical to your successful business. Not only because it’s the right thing to do but because employees will often respond positively to how they are treated.

Competitive pay – giving your employees a fair wage and other benefits is essential. Paying your employees on time is a big part of this. Unfortunately, I have heard far too many stories of coffee shops and restaurants consistently delaying the payment of salaries and wages to their employees. We strongly urge you to avoid missing any paydays.

Protecting against bullying or harassment – codifying the protection of your employees against unwanted treatment, harassment, or intimidation from staff, management, or customers is critical. Having clear policies and taking action to correct or remove any negative behavior.

Communicate your ethical principles

The ethical principles of your coffee shop can be communicated through an employee handbook and occasionally updated. It can come under a Code of Ethics section. In this case, every employee will have to read through and agree to your ethics. Both employees and management can refer to these guidelines if they have any questions about following the ethics you want your coffee shop to adhere to.

Don’t force your employees into unethical practices – making your employees do unethical things may backfire and lead to unwanted consequences. For example, serving food or beverages after expiration may fall under this quality. This could lead to customers getting sick, a health department revocation of their health permit, and other civil matters and penalties.

Other ethical practices regarding your employees, such as hiring, firing, or treatment, fall under this category.

Open the type of coffee shop that you would want to work for. Create an environment that you would like your children to be a part of and which you can be proud of.

Customers

Treating your customers to the highest customer service possible always benefits your business. While we know there can be many challenging customers and some who are hard to please. Yet, operating with a high ethical standard will protect you, your employees, and your brand and demonstrate to the world what type of business you are.

Serve only high-quality products – serving expired milk and food is not only unethical, but it can also be dangerous.

Serve what you say – if you serve organic and fair-trade coffee, then fill that coffee. Please don’t give your customers the idea that they are buying something higher in value than they are.

Customers with disabilities – ensure that you follow the ADA standards to protect the rights of people with disabilities.

Other ethical practices center around the treatment and service of your customers, including fair pricing, protecting vulnerable populations, and biased customer service, which you will need to address. Often, this starts with hiring the best baristas and investing in barista training. The barista training you consistently give your employees will pay off in various ways.

Further Reading: Requirements to Open a Coffee Shop

How to Operate an Ethical Coffee Shop

Ethical Business Practices

Expect your ethics will filter through every aspect of your business. Depending on your coffee shop concept, the number of your employees, and other factors, you will want to always follow the principles of ethics in your day-to-day operations. Whether you open a small drive-thru coffee stand or open a cafe bakery, your ethics will play out in everything you do as a business.

Pay your taxes

Paying your taxes and any other fees should be done honestly and ethically. Taxes can be a considerable quarterly expense, but they should be delivered on time and correct.

The process of keeping up on your tax obligations may be overwhelming (it often is) for retail businesses. Owing back taxes can land you with penalties, interest payments, and having your business shut down. Any shenanigans can also lead to other unwelcome legal problems.

Pay your bills on time

As a coffee shop owner, you will work with many vendors, from wholesale coffee roasters to bakeries and restaurant supply companies. Some vendors offer 30-day credit payment opportunities. Such vendor bills can add up quickly and lead to significant short-term debt. You will always want to pay your bills on time. In other words, you will want to be a business that you’d like to do business with.

Additionally, choose vendors who embody similar values to what you believe and strive to achieve with your business.

Honor coffee farmers

As retail coffee shop owners in the United States, Canada, Europe, and elsewhere, we owe our business fortune to hard-working farmers in other countries. Therefore, in our business operations, we should consider aligning our values that lend to the general improvement of the lives and well-being of coffee farmers. That is, working with ethical coffee brokers, wholesale coffee roasters, and other vendors.

There may be a time when you wish to roast coffee for your coffee shop business. Consider your relationship with green coffee brokers or direct trade relationships as vital opportunities to generate ethical and equitable value.

Your environmental impact

Coffee shop businesses can generate a lot of trash and litter. Creating a coffee shop that reduces its impact on the environment will be essential while offering customers great opportunities to reduce their waste.

From having separate compost and recycling bins to promoting multi-use coffee cups and other small steps can lead to environmentally sound practices. Creating an eco-friendly coffee shop is one way to be an ethical business.

Be ethical towards your investors

If you are seeking investments to fund your coffee shop business, be sure to comply with the contract you sign with your investors. This means regular and timely payments on the credit and interest and providing clear and transparent information about the financial health of your business.

Operating an Ethical Coffee Shop

Other Related Questions:

Should I start a sustainable coffee shop?

Developing an eco-friendly coffee shop has various benefits, including saving money and strengthening your coffee shop brand. Therefore, I think it’s a worthwhile effort to start a sustainable coffee shop with some simple but effective changes.

For more information, read our post, How to Start an Eco-Friendly Coffee Shop.

How much does a coffee shop make?

Coffee shop owners can make significant sums of revenue. However, determining how much money you will make depends on various factors. For example, your coffee shop concept or business type, sales volume, and how much your average receipt is will often determine your coffee shop revenue. In addition, of course, you will have costs that will impact your net income.

For a more thorough explanation, please read our article, How Much Does a Coffee Shop Owner Make?

What if your values disagree with your customers or others?

You shouldn't expect everyone around you to agree with everything you believe in. I recommend operating under the virtue of respect – regardless of whether there is a difference of opinion. But this can be hard to do if your customers or stakeholders have extreme views. 

Ultimately, you must decide what is best for you and your business and then take action. Sometimes, this action might mean acknowledging your differences or changing vendors or moving forward and saying goodbye.

Further Reading: How to Start a Coffee Shop Successfully

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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.