How to Start a Coffee Shop in New York
How to Start a Coffee Shop in New York*
Learn How To Open a Successful Coffee Business in New York City
Starting a coffee shop in the biggest city in the United States can be an exciting opportunity. High octane coffee is what makes the Big Apple run. If you live in New York City, you know that opening a coffee shop presents a good business prospect.
In fact, recently, the Wall Street Journal noted exceptional retail coffee growth in New York City. Nearly 4,000 new coffee shops sprouted up in the Big Apple in three years (2017 – 2020).
So, how do you open a coffee shop in New York?
Starting a coffee shop in New York is no different from starting it anywhere else – with the exception that the stakes are higher. The cost of real estate, taxes, and labor costs exacerbate the costs.
That's why it's more important than ever to do your coffee shop research and planning first. Then, you have to develop a thorough coffee shop business plan.
Because competition is so fierce in NYC, you will want to do a competitor analysis and see what coffee customers are already enjoying in your area. Then, you want to develop a winning coffee shop concept that resonates with your target market.
Additionally, after researching your target market, you want to craft a menu around their tastes and expectations. For example, will you be serving beautifully designed latte art beverages for New Yorkers who like their coffee fast? Your coffee shop concept – which entails your type of customer service – will need to be specially tailored to your ideal customer.
Next, you want to choose your coffee shop name and develop your coffee shop brand. Your brand will help you stand out in the mass of corporate or independent coffee shops.
How to Start a Coffee Shop in New York City
How to Start a Coffee Shop in New York (Permit & License Requirements)
You want to establish the legal structure of your business. While you have various options, many independent coffee shops establish their business entity as a Limited Liability Company (LLC).
Keep in mind that you will need to establish your company through the New York Secretary of State. After which, you can register your coffee company with the city of New York (or whichever city you are planning to do business in).
Opening an LLC protects you from personal liability and helps usher in your business's essential elements, such as an EIN. It also allows you to open up a separate business account.
Doing business legally in New York State and New York City requires a variety of licenses and permits. The licensing and permitting process can seem intimidating at first, but it's pretty straightforward. Simply go through each one – one at a time.
Each one will be important before you open your dream coffee shop and serve your first vanilla latte.
Let's review the various licenses and permits below:
- City Business License
- New York State Business License
- Employer Identification Number (EIN)
- Department of Revenue Retail Sales Tax License
- NYC Reseller's License
- Certificate of Occupancy
- Retail Food Establishment License
- Health Department Permit
- Fire Department Permit
In New York City, you will have to work with the New York Health Department and the buildings department. These are two agencies that are meant to protect customers and workers from food-borne illnesses and structural dangers.
Trending Articles on Coffee Shop Startups:
| Coffee Shop Ideas & Concepts | Coffee Shop Budget and Planning |
|---|---|
| 50 Coffee Shop Ideas & Concepts | 7 Ways to Open a Coffee Shop with No Money |
| Low-Cost Coffee Shop Ideas | Open a Coffee Shop Bookstore |
| How to Open a Drive-Thru Coffee Stand | How Much do Coffee Shop Owners Make? |
Your NYC Business Requires Permits and Licenses
Start With a Business Plan
Before you get started, you will want to develop your coffee shop business plan. Having a business plan is really the best way to build your coffee shop concept and your budget and address the needs of your coffee business. Additionally, it will be a tool to help you raise funds or capital. Finally, your property manager will most likely review your business plan before they offer you a lease.
Your business plan covers important topics:
- Description of your coffee shop
- Ownership and management team
- Coffee shop vision
- Coffee shop menu
- A market analysis
- Your target market
- Competitor Analysis
- Budget Analysis
- Financial Projections
- Timeline and benchmarks
- Marketing and Promotion
- Exit Strategy
Ultimately, your coffee shop business plan will serve as your compass or guide as you move forward. When starting a coffee business, you can juggle many things, and your plan will help guide you through the noise.
Fortunately, we make it pretty easy by offering a Coffee Shop Business Plan Template. For more information, please read, How to Write a Coffee Shop Business Plan.
How to Start a Coffee Shop in New York (Permit Requirements)
Pick a Coffee Shop Concept
What kind of coffee shop would you like? Would you like to have a coffee shop bookstore, be a kid-friendly coffee shop, or perhaps offer live music and serve alcohol?
The exciting thing is that there are countless coffee shop concept ideas to choose from! Your coffee shop business plan will articulate your coffee shop concept for you, your investors, or and your property manager.
You will want to have a well-thought-out concept written in your business plan. Additionally, your concept will impact the type of licenses and permits required to legally open and operate your coffee business. For example, if you have a mobile coffee truck business, espresso catering business, or a full-blown coffee shop.
Developing Your Coffee Shop Menu
Starting a coffee shop in New York City is like nowhere else. After all, New York City is Big Time. We're in the big leagues. Your concept needs to be spot on, or your coffee shop will fail. New York customers will let you know why your coffee shop stinks or why it's great. Therefore, you have to invest the time and energy to develop a winning coffee shop menu.
Bottom line: You have to research your customers. You can't just “think you know what your customers want.” Hunches don't work in New York City. Instead, you have to do your market analysis, get a real sense of who you are serving, and then develop a coffee shop menu around that ideal customer.
Network Like Crazy
As you begin the process of opening a coffee shop in New York, you will need help. Don't be afraid to reach out to people and ask for help—network like crazy. Ask people what they think of your coffee shop concept, your menu, and your coffee shop branding.
Additionally, start putting your feelers out there for contractors, such as electricians, carpenters, plumbers, drywall specialists, and painters. Additionally, you want to know your local espresso machine technicians and, of course, baristas.
In good time, you will begin to hire staff. Don't just hire anyone. In New York City, you want the best baristas. You won't experience baristas that will pull consistent espresso shots and warm to your customers. Your staff is the silent secret of your coffee shop's success, so start looking to hire people early in the process.
Start Spreading the News!
Your coffee shop needs a marketing plan. With so many coffee shops and potential substitute businesses in New York City – From giant coffee chains to your neighborhood bodega, you need a strategy to start spreading the news about your coffee business.
Develop a winning coffee brand. Start with a plan that includes:
- Your coffee shop website
- Social media accounts
- Branding
- Merchandise (t-shirts, mugs, etc.)
- Signage
- Loyalty cards and programs
How to Start a Coffee Shop in New York City
How to Start a Coffee Shop in New York Permit Requirements
Opening a Coffee Shop in New York*
Permit Requirements to Open a Coffee Shop in New York City
If you are researching how to open a coffee shop in New York, congratulations! The caffeine-fueled growth of the coffee shop retail industry across America is warming up – and it’s expected to get even hotter, including in New York. Promising towns for coffee shop businesses are Buffalo, Albany, Rochester, Syracuse, Brooklyn – and many others!
A new generation of customers who want high-quality coffee offered in beautiful spaces with great customer service is changing how people get their coffee. This means that your coffee shop business has the potential to be quite profitable.
However…. without the research and dedicated planning that you need to do, your once-potentially profitable business could turn into a disaster! Many new and aspiring business owners make too many mistakes when starting their coffee shop and go out of business – needlessly.
Data scientist Nathan Burns created a map of New York City's coffee shops. The map reveals a variety of data points, but ultimately it reveals the level of density in New York City's boroughs. “The updated map reveals a high density in Manhattan and northern Brooklyn. On the other hand, Staten Island, Queens, and the Bronx appear to be lacking in coffee shops — relatively speaking.” So, if this were the case, it would be apparent that the level of high coffee shop competition may sway you to open a coffee shop in a different part of New York City.
How to Start a Coffee Shop in New York City
New York Business Permit Links:
NY Business Structure
Where to set up a Coffee Shop Business in New York
Register Your NY Business
Where to register your business in New York
New York City Business Express
NYC Food Handler's Info
New York Food Safety Information
Coffee Shop Licenses and Permits for New York
Licenses and Permits for NY
How to Start a Mobile Coffee Business in New York
Start a Coffee Truck in New York
Coffee Shop Startups
Requirements to Start a Coffee Shop in New York
Once you're ready to make your business office, you will need to structure your coffee business.
You likely create an LLC for your coffee shop through the New York Secretary of State's office or a similar office that handles business formations.
There are a lot of benefits to forming an LLC or a corporation. It generally protects you from personal liability in an unfortunate event, accident, or negligence. Further, it will help you apply for your EIN, open a business banking account, and other essential business activities.
In addition, doing business in New York means acquiring various permits and licenses at the state and local levels.
A few of the coffee shop requirements are below:
- Business formation (LLC or Corporation)
- EIN (Employee Identification Number)
- City Business License
- State Reseller's License
- Fire Department Occupancy Permit
- County Health Department Permit
- Building's Department
- Food Handler's Permit
There may also be other permits and licenses that you'll have to have, so be sure to check.
Further Reading: Requirements to Open a Coffee Shop
Start a Coffee Shop in NYC
How Do You Start a Coffee Shop Business?
Starting a coffee shop business can be challenging, especially in cities like New York and Los Angeles.
After all, where do you begin? Where do you turn? The first thing you should consider doing is start off with your business plan. Our Coffee Shop Startups business plan will help you get you started in the right direction.
But where can you talk to coffee shop owners who won't be your competitors? Where can you find out the real advice without spending time, energy, and consulting fees? Right here. Utilize our resources to help you launch your New York coffee business.
Conclusion
Starting a coffee shop in New York can be an exciting and very profitable venture. New York is truly like nowhere else. With the right help, knowledge, and research, you can be well on your way to starting a successful coffee shop in New York City.
Featured Coffee Shop Business Resource Articles:
Starting Your Coffee Shop in New York:
Steps To Open a Coffee Shop in New York
- Research
- Develop Your Coffee Shop Concept
- Plan Your Coffee Shop Budget
- Write Your Coffee Shop Business Plan
- Create an Action Plan
- Explore Local Coffee Roasters
Research
New York is a beautiful and highly energetic state with various people. Therefore, you must honor the need to do the necessary research for your specific location. Every region and county in New York produces its own challenges and opportunities. Explore the existing competition, target market, and needs of the community. Investing in The Complete Coffee Shop Startups Kit is a perfect research method.
Develop Your Concept
Developing your coffee shop concept specifically tailored to your target market will be one of the most important things you want to focus on. Start with the basics: Do you want to open a brick-and-mortar coffee shop? Are you interested in setting up a mobile coffee business, or do you want to start a drive-thru coffee shop?
If you want to spend less money, you might consider setting up a coffee cart or setting up an online coffee business.
Your concept choice depends on several factors, including your budget, existing competition, and figuring out where your interests and passions lie.
Plan Your Coffee Budget
Setting up a coffee shop in New York can vary in cost. Certainly, larger cities or trendy neighborhoods will increase real estate costs and higher labor costs. Therefore, you will want to thoughtfully develop your coffee shop budget based on your concept, location, menu, equipment needs, design, and layout.
Write a Business Plan
You must have a plan before starting your coffee shop in New York. So, I’d recommend writing a business plan and getting all of your thoughts down on paper. If you need help starting your business plan, consider reading our post, How to Write Your Coffee Shop Business Plan.
Develop an Action Plan
After you’ve developed your New York-based coffee shop – including the concept, menu, and written business plan – you’ll want to create an action plan. Your coffee shop action plan will detail your first steps with a timeline.
Explore Local Coffee Roasters
Exploring local roasters in New York is a lot of fun. Get out there and meet coffee roasters you might want to work with. Discover new coffee roasting profiles and determine what kind of roasts you would like to serve in your coffee shop.
For more information on coffee shop startup steps, please read 30 Steps to Starting a Coffee Shop.
Additional Questions:
What is the best borough in New York City to start a coffee shop?
Ultimately, the best part of the city is where you live. New York City is so dense that nearly every borough has pedestrians and potential customers.
However, with that said, you need to decide who your target market will be. Will it be university students at Columbia or SUNY? Will you cater to tourists in Times Square or office employees near Wall Street? First, determine your ideal customer and move forward from there. You also might want to estimate your commute factor to work. Do you want the extra hassle of carrying boxes of coffee cups, bags of coffee lids, and coffee beans that are halfway across town on a subway? When you own a retail coffee business, convenience will be a big factor for your daily commute and personal schedule.
How much does it cost to start a coffee shop in NYC?
The costs for starting a coffee shop in New York City vary on a number of factors, including your concept, location, and menu options. It's no secret that premium retail locations in New York City demand higher real-estate prices, which will factor into your coffee shop menu pricing. Other cities have the same challenges. Starting a coffee shop in Los Angeles, for example, also has higher-than-average real-estate costs.
A large coffee shop with lots of square footage will demand higher prices than a smaller compact coffee shop. The depth of your menu will also require a certain space for coffee equipment, storage, shelving, and workflow.
For an in-depth discussion on how much your coffee shop business will cost in New York, please read How Much Does It Cost to Start a Coffee Shop.
Coffee Business Articles You Should Read:
How to Successfully Start a Coffee Shop Business
Coffee Shop Concepts and Ideas
How To Choose The Right Coffee Shop Location
How to Start a Coffee Shop on a Budget
What Equipment Do You Need for a Coffee Shop?
Start Planning. Order Today.
Get The Complete Coffee Shop Startup Kit
Comprehensive. Convenient. Affordable.
Coffee Shop Startups is the premier coffee shop business resource for aspiring entrepreneurs. We provide the most comprehensive way to research and plan your coffee shop business.
Our Complete Coffee Shop Startups Kit is packed with everything you need to know before you open your coffee shop business. With hours and hours of one-on-one interviews, you'll hear from real-world coffee shop business owners and experts.
When you purchase The Complete Coffee Shop Startups Kit, you receive an invaluable collection of exclusive resources designed to help your coffee shop business grow.
These tools will get your coffee business on the right track and give you the motivation to move forward with confidence.
There’s never been a better time to start a coffee shop business. And there’s never been a better resource to help you get started the right way.
Now’s the time to take action – but only you can do that.
The Complete Coffee Shop Startup Kit
(Instantly Delivered To You)
While The Complete Coffee Shop Startups Kit is not necessarily state-specific, you should verify the changing laws, rules, and regulations for each state you do business in as due diligence on your part.
