Big Coffee Shop Ideas for Small Spaces

Small Coffee Shop Ideas

Big Coffee Shop Ideas for Small Spaces

Let’s talk about small coffee shop ideas

Coffee is the perfect product for resilient entrepreneurs. That’s because coffee can be sold anywhere where coffee drinkers live, work, and play.

In other words, coffee is a winning product. As a result, coffee is not only universally loved; it’s ingrained in our culture – and just about every other culture worldwide.

Knowing this allows us to find the best way to serve coffee and make a profit. And regularly, that means starting small. Yet, small can be a positive asset when it comes to retail.

We’ve seen many successful small coffee businesses produce significant profits and ultimately improve the livelihoods of their owners.

In this post, let’s have a little fun. Let’s discuss how you can step into retail coffee with a small coffee shop idea. This conversation will add to our previous posts on this topic that you may want to explore:

• How to Start a Coffee Shop With Little Money
• Low-Cost Coffee Shop Ideas
• Coffee Shop Ideas & Concepts

But first, let’s talk about why starting a small coffee shop may be a good idea. 

Small Coffee Shop Ideas Make Sense

Sometimes starting a small coffee shop makes sense. In tight quarters and dense city centers with little available space, coffee can be brewed and served to reach many potential customers. To be effective (and profitable), you don’t always need to have ample space.

Additionally, small coffee businesses make sense in markets where the rent is astronomically high because your fixed rental costs may be more manageable.

Small spaces that may not work for many other retail businesses may work for a coffee shop business.

Depending on the location and customer interest, you may encounter menu and capacity issues due to space. However, per square foot, you can make a healthy profit because your overall expenses will be smaller.

In addition to reaching coffee customers, starting a small coffee shop may reduce some of the initial startup costs that make starting a large coffee shop challenging.

By going small, you can get your “foot in the door” and give yourself a chance to grow into something bigger.

Small Coffee Shop Ideas That Fit Your Target Market

Whether you have a small coffee shop or a large coffee shop operation, it needs to be tailored to fit the needs of your target market. You can invest a million dollars into a large coffee shop, but if it’s not in the right location or your concept and menu do not appeal to your market, you will struggle to make any profits.

Therefore, you will want to focus on small coffee shop ideas that fit your target market and don’t ruin your budget. In other words, your business – no matter how small – will need to satisfy a “pain point.”

Your coffee business will address your customer’s pain points – this is a win-win scenario.

To be clear, your small coffee shop idea can bring significant revenue if you choose the right coffee shop concept and place it in the right location (no matter how small).

In other words, having a small business doesn’t mean that you should ignore other business axioms. A small business still has to have:

• Adequate budget for its size
• A well-thought-out business plan
• A great location
• A menu that appeals to the right market
• A value to deliver & excellent customer service
• A valuable brand

We’ve addressed many of these coffee business topics in our coffee blog, which I encourage you to read. We believe it’s an excellent coffee business resource.

I have found that many aspiring entrepreneurs often fail to plan or write a coffee shop business plan because they think their small business can all be planned out in their minds. Yet, an unplanned business – at any size – can cause you pain and money losses. It is one of many reasons why coffee shops fail.

Small Coffee Shop Ideas

Small Coffee Shop Ideas

Important Considerations Before Starting a Small Coffee Shop

As you consider potential small coffee shop ideas, it’s essential to view a few practical items that may be easily overlooked.

The Capacity of a Small Coffee Business

Smaller coffee businesses may have a more limited capacity to serve high volumes of people. For example, a small one-group espresso machine can only serve so much coffee per hour. In addition, restrictions on space, water, storage, and room for your customers to order can restrict and limit your ability to serve.

Power and Water of a Small Coffee Business

Power and water is an obvious consideration, but it is often overlooked. Will you need a power generator, or will an electrical outlet hook you up? Where will you get your water from, and how will your gray water be disposed of? All of these must be figured out before you open. Additionally, it will need to satisfy the requirements of a coffee business with your local health department.

Transportation of Important Items

If you use a mobile or semi-mobile coffee business concept, you’ll need a lot of supporting equipment and inventory. Everything from your cups, lids, coffee beans, sugar, syrups, small wares, and cleaning supplies. Water weighs 8 lbs. per gallon, so you’ll want to ensure that you can easily transport these items to and from your location. Without this ability to transport your coffee equipment, coffee inventory, and supplies will make things impractical. If you are planning to have a small mobile coffee truck, consider the supplies, inventory, and commissary issues prior to opening.

Small Coffee Shop Ideas

Let’s highlight general categories of small coffee shop businesses and some examples of the types of businesses you might find within that category.

Small Coffee Shop (Brick & Mortar)

The central theme of tiny brick-and-mortar coffee shops is that they are small. Small can work to serve coffee customers who want coffee at a specific location that may be convenient for them.

A smaller coffee shop will likely mean a traditional lease and requirements usually required for a more extensive coffee shop.

A small coffee shop can incorporate numerous coffee shop concepts, themes, and unique elements that make your independent coffee shop special.

Coffee To Go

A variety of small coffee shop ideas should be entirely focused on convenience. One of the benefits and advantages a small coffee business can have is its ability to be convenient for customers.

Small coffee shop ideas based on a “coffee to go” concept can be profitable if it’s able to secure a good location and meet the demand with its inherent small capacity.

Usually, these small business ideas have no or limited seating and are built for speed. This means a limited menu with packaged-only items, fruit, or other menu items that require little preparation, cooking, or serving time.

A Piggy Back Coffee Shop

A piggyback coffee shop is a term we coined many years ago, essentially when a coffee business opens up in an existing business. For example, we’ve seen flower shops invite coffee business owners to open their espresso businesses into their retail space. Depending on the arrangement, the flower shop may charge rent (sub-lease) or ask for a percentage of the profits and utilities.

A Small Drive-Thru Coffee Stand

Americans love their cars and convenience. A drive-thru coffee stand business in the right location can capitalize on America’s love for cars.

Starting a drive-thru coffee stand can really be a tremendously lower-cost coffee shop idea. Depending on the type of drive-thru stand – its size and design – a drive-thru can cost significant money. However, there are lower-costing drive-thru designs that may help you save money.

For more in-depth information, please read, How to Start a Drive-Thru Coffee Stand.

Coffee Cart

A variety of coffee cart businesses can work wonderfully for your market.  Sometimes finding a segment of the market that could use a convenient cup of coffee first and determining just what type of coffee cart would best serve the volume of customers may be the best route to take.

A coffee push cart, a coffee bike, a coffee trike, or any other type of cart that provides you with enough capacity to serve your potential customers should be explored.

Don’t limit yourself to standard coffee carts. You may need to get creative and think about the practical aspects of serving coffee (water, power, and other elements), but also your branding and how you will stand out.

Coffee Kiosk

What’s the difference between a coffee kiosk and a coffee stand? Typically, in the United States, we refer to coffee stands as those designed to drive cars up to them. Kiosks are generally for pedestrian traffic. Both can be very effective at serving a number of customers and generating healthy profits.  

Mobile Coffee Business

Mobile coffee businesses are those coffee businesses that can be easily moved – being towed or self-driven. These are among my favorite coffee businesses today because they give you, the owner, a tremendous amount of flexibility. As a mobile coffee business, you will still have to choose a favorable location and sign a coffee shop lease, which can be challenging. However, a mobile coffee business can provide your business with incredible flexibility and options.

Small Coffee Shop Considerations (Continued)

Small Coffee Shop Equipment

It seems rather obvious, but smaller coffee businesses will often require smaller pieces of equipment. Counter space, water capacity (potable and gray water), power, and other considerations will play a significant role in your coffee equipment choices. For more information, read our post, Choosing Your Coffee Shop Equipment.

• Espresso Machine (One group)

Your choice of espresso machine may be determined by your access to a reliable power supply, space, and water.

While smaller “home” espresso machines exist, we strongly recommend that you still use commercial-grade machines. Commercial-grade options are built with superior materials better able to handle the heat and repetitive use. Additionally, commercial-grade espresso machines may be the only ones allowed by your local health department.

• Coffee Grinder

The ability to grind coffee may be an essential consideration for your coffee operation. If you are on a coffee bike, you may not have the space or power functionality, but you'll most likely have this option in a larger space (coffee truck or trailer). Smaller handheld grinders may be suitable, but the time and effort to make multiple drinks will be difficult, if not impractical.

• Refrigerator

If you have milk or cold items for sale, you’ll need to solve the idea of having a refrigerator and ice cubes. Fridges take power, so depending on your setup, you’ll need to work out an excellent solution to keeping your milk and other items cold. Smaller coffee shops and mobile coffee trucks can have a small fridge that can hold only a certain amount of milk and other drinks. With a coffee cart or bike, it might be more challenging. However, if you are creative enough, you can work out a solution for any type of small coffee business.

Small Coffee Shop Ideas:

How to Get Started

1. Settle on a Concept

Settling on the right small coffee shop idea comes down to your ability to see your community’s specific needs. For example, an excellent small coffee shop idea in one neighborhood could be horrible in a different community.

You will want to research everything from the competition, available space, location, and types of customers you’ll be serving. From there, you’ll be able to develop your menu, pricing, and other elements.

2. Determine Your Location

The success of your small coffee shop or coffee business idea will often come down to your location. Your location will give you the customers you need to generate profits.

To determine the right location for your coffee business, you’ll need to factor in several things: Current competition and substitutes, accessibility, and other practical elements. These functional elements include having a nearby restroom, and access to water and electricity.

3. Write Your Business Plan

You will want to write down a coffee shop business plan. This plan will help you save money and keep you focused on the essential details that need to be considered before you open your business.

Any investors or property managers you would like to work with may also need your business plan. For a more in-depth discussion, read our post, How to Write a Coffee Shop Business Plan.

4. Create Your Funding Mix

No matter how small your coffee shop is, it will still require some money.

So, then, how will you pay for your coffee shop? One practical way is to develop your coffee shop funding mix. Your funding mix will help you determine how much money will come from any particular funding source.

To create your funding mix, you’ll want to read our post, How to Develop Your Coffee Shop Funding Mix.

5. Get the Knowledge You Need

While setting up your coffee shop may seem intuitive, you’ll want to get some help.

Getting the knowledge you need will help you avoid heavy financial losses and, instead, help you develop your coffee business effectively. We recommend studying as often as you can. We also encourage you to get our Complete Coffee Shop Startups Kit. It’s packed with much information you’ll want to know before you start.

Conclusion

There is nothing small about starting small. But starting small could lead to your big success and growth. I encourage you to look around and see where your small coffee shop idea might work in your community. Think out of the box but get the information you need to start.

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.