How to Start a Coffee Shop in Washington State

How to Start a Coffee Shop in Washington State

Permits and Requirements to Start a Coffee Shop in Washington

Coffee (and craft brews) are king in Seattle.  And certainly, starting a coffee shop in a region that loves coffee can be exciting. There's no doubt that coffee is what makes the Evergreen State go round.

A recent water quality study showed that the Puget Sound has high levels of caffeine from water runoff. While this isn't something to be proud of in an environmental sense, it tells you much about the region.

Coffee is king in Washington State.

Starting a coffee shop in Washington is no joke. Washington is a large, diverse state with various regions. One thing that Washingtonians love – Spring cherry blossoms, apples, craft beer, and coffee.

So, if you live anywhere in the Pacific Northwest, you know that coffee is in high demand pretty much everywhere. So, indeed, starting a coffee shop in Washington is an exciting prospect.

Washingtonians love coffee.

Recently, a study found that Seattle has the fourth most coffee shops in the United States (1 coffee shop for every 1924 people). Seattle is behind only San Francisco, Portland, and Honolulu have more coffee shops per capita.¹

Yet, despite being fourth, I would argue that Seattle has the highest level of high-quality coffee shops and coffee roasters than anywhere else, making this state a very competitive retail coffee market.

What these studies tell us about coffee in the Northwest:

Washington state needs more coffee shops! Yet, while there is room for coffee shop growth, a specific type of coffee shop is necessary to succeed here in Washington.

There will be pressure to open a high-quality coffee shop or drive-thru stand to succeed in Washington State.

Coffee shops with unique menus, coffee offerings, customer experience, and brand development will help them stand out in this competitive market.

This is also a great place to start a Washington-based Drive-Thru Coffee Shop.

Permits and Requirements to Start a Coffee Shop in Washington

Open a Coffee Shop in Washington State

How do you open a coffee shop in Washington State?

From Bellingham to Vancouver, Seattle to Spokane, coffee is more popular here than beer (and Washingtonians love their beer!) Naturally, therefore, the demand is intense.

While starting a coffee shop in Washington is practically no different than in any other state, it does come with unique challenges.

For starters, nowhere else are coffee drinkers more educated and savvy on coffee quality than in Washington State.

Additionally, some cities in Washington have high real estate costs, pushing up the risk and financial barriers. So along with higher taxes, and higher-than-average wages, the cost of doing business will be… you guessed it – higher!

However, these costs will be countered by higher-than-average demand and customers who are used to paying higher prices for coffee too!

Still, the higher startup costs mean that it's more important than ever to do more upfront research and planning. So my strong recommendation is that you develop a well-written coffee shop business plan before doing any actual spending.

Since Washington State – especially in certain cities like Seattle, Vancouver, and Spokane – has a lot of coffee shops, you will encounter some stiff coffee shop competition.

Unique Selling Proposition

Therefore, in addition to research and planning, you will want to do a competitor analysis and develop a solid Unique Selling Point.

You will want to develop an appealing coffee shop concept that resonates well with your customers by studying your target market.

This coffee shop concept will include an attractive coffee shop menu that attracts and adds to your profits. All this – your coffee shop concept, coffee shop menu, location, and ambiance – will all need to focus entirely on your customer.

In a competitive market like Washington State, you will want to develop a strong coffee shop brand. Your coffee brand will help you create a connection with your customers and allow you to stand out in a crowded field.

How to Start a Coffee Shop in Washington State

How to Start a Coffee Shop in Washington State

Permit and License Requirements in Washington State

If you are giving yourself the green light to start, you will want to write a coffee shop business plan.

Next, you will want to create your legal business structure. There are various ways to create a business structure, but many coffee shop owners choose to open a coffee shop LLC.

You will need to apply for your LLC through the Washington State Secretary of State's office.

Certainly, there are a lot of benefits to forming an LLC or a corporation. For starters, it generally protects you from personal liability in case of an unfortunate event, accident, or negligence. Further, it will help you apply for your EIN and open a business banking account.

Doing business in Washington State means that you will need to acquire various permits and licenses. While taking care of the initial legal setup might seem overwhelming, it's pretty straightforward.

I recommend browsing the agency websites and clicking on the relevant links to your coffee shop business formation. You will need to have several different permits and licenses before you can open your doors.

Let's take a look at a few of the requirements below:

• Business formation (LLC or Corporation)
• EIN (Employee Identification Number)
• City License
• State Reseller's License
• Fire Department Permit
• County Health Permit
• Washington State Department of Labor and Industries

Depending on what county you are in, you will have to work with your county public health department – as well as the State Department of Labor and Industries. These are two important state and county agencies that help to protect customers and workers from foodborne illness and structural safety issues.

Permit and License Requirements in Washington State

Setting Up Your Washington State Coffee Shop

(Requirements, Permits, and Licenses)

For a full coffee shop requirements list, read our post, Requirements to Open a Coffee Shop.

Step 1

Write a Coffee Shop Business Plan

Before starting a coffee shop business in Washington State, I strongly recommend writing a business plan.

Indeed, a coffee shop business plan is a great tool to help you articulate your vision – your coffee shop concept, startup budget, and determine your coffee business's needs.

However, maybe, more importantly, it can help you get the funding you need to get your coffee shop off the ground. So it's going to be an essential tool as you look at your coffee shop funding mix.

Finally, a business plan is helpful when trying to raise funds and introducing yourself to prospective property managers.

Your Coffee Shop Business Plan covers:

• Description of your coffee business
• The Business Team & Ownership
• Your Coffee Shop's Vision
• Your Coffee Shop Menu
• Target Market & Customer Base
• Market Analysis
• Competitor Analysis
• Budget and Financial Projections
• Operations
• Calendar & Timeline
• Marketing & Promotional Strategies
• Exit Strategies

Your business plan isn't just busy work. Your coffee shop business plan will be your road map and layout of your action plan. It will help keep your actions focused on success.

For more information on how to write your business plan, please read our post, How to Write a Coffee Shop Business Plan.

How to Start a Coffee Shop in Washington State

(Permit Requirements)

Step 2

Determine Your Coffee Shop Concept

Figuring out what type of coffee shop you would like to start is your first step. For example, would you like to start a coffee shop bakery, café bookstore, or a coffee and wine bar? This may depend on your location, your budget, and where your passion rests.

Whichever you choose, you can be sure that you have a broad spectrum of coffee shop ideas! In addition, your coffee shop business plan will help you better cohesively describe your concept – for your potential investors or property owners.

To be sure, your coffee business concept may determine the type of permits you will need. For example, you may need an alcohol or wine and beer license. If you decide to have a mobile coffee trailer, you may need a Department of Transportation permit.

Step 3

Developing a Coffee Shop Menu

Washington State has a lot of great food options. Indeed, in terms of the competition, the culinary possibilities are something your coffee shop will have to contend with in places like Seattle, Bellevue, and Spokane.

Since Washington customers are used to the wide variety of menu options, your coffee shop menu needs to be well-developed.

Do the necessary customer research: Find out what your customers want and what your competitors are serving.

Step 4

Get the Help You Need

 As you set up your coffee shop in Washington, you may probably need the help of others. I recommend reaching out to a variety of people and increasing your network.

While you can hire coffee business consultants, I say start with what you got.

For example, you can get your friends to read your coffee shop business plan, business concept, and logo development. Then, network to find the necessary skilled help you need, including electricians, plumbers, coffee equipment repair techs, accountants, etc.

Step 5

Recruit The Best Baristas You Can Find

Washington state is a great place to find well-trained and experienced baristas. One of your jobs as a coffee shop owner is to hire the best baristas.

Indeed, one of the best ways to improve your coffee shop sales is to hire excellent baristas. You want to find the best baristas and hire them to work for your coffee shop – not for the competition. Additionally, I recommend hiring for trainability, reliability, and personality. Finally, consider barista training online to save money.

Step 6

Develop a Coffee Shop Marketing Strategy

If you start a coffee shop in Washington's many cities, you'll need to find ways to stand out.

You will want to promote the heck out of your business. But before you do that, you want to develop a marketing strategy that will appeal to those you wish to sell to.

 For example, if you're going to sell to students at a local university, tailor your marketing and promotion towards them in various channels. Along with your marketing, you will develop a coffee brand.

Promote your coffee shop using:

• Exterior and interior signs
• Your social media accounts
• POS marketing opportunities
• Your coffee shop website
• Loyalty programs
• Connecting with local coffee bloggers

Further Reading: How to Start a Drive-Thru Coffee Stand in Washington

How to Start a Coffee Shop in Washington

Open a Coffee Shop in Washington

Permit Requirements to Open a Coffee Shop in Washington

It's an exciting time to start considering opening a coffee shop in Washington State.

Washingtonians love coffee, from Aberdeen to Whidbey Island to Wenatchee to Puyallup. As a result, the market is primed for growth in retail coffee. You must decide which location is best for your Washington state coffee business.

Promising areas for development in Washington State are:

Aberdeen, Anacortes, Auburn, Bellevue, Bonney Lake, Bothell, Bremerton, Burlington, Centralia, Chehalis, Cle Elum, Covington, Enumclaw, Federal Way, Gig Harbor, Hoquiam, Kent, Lacey, Leavenworth, Milton, Mount Vernon, Everett, Long View, Maple Valley, Ocean Shores, Pasco, Pullman, Puyallup, Renton, Seattle, Tacoma, Tumwater, University Place, Walla Walla, Vancouver, Yakima, Woodinville, West Richland.

Indeed, a new crop of customers who crave high-quality coffee, offered in elaborate spaces along with excellent customer service, change the way we consume coffee. So, the demand for high-quality coffee and service is there. This means that your coffee shop has the potential to be very profitable.

But you have to do the research. Without planning, your potential for profitability decreases, and your potential for failure increases. With all the work and money you will put into it, you don't want to own a failing coffee shop. 

Further Reading: Requirements to Start a Coffee Shop

Washington State Coffee Shop Startup Links

• Washington State Secretary of State

• Department of Labor and Industries

• Register your business in Seattle

• King County Health Department

OTHER RESOURCES:

• Washington State Licenses and Permits Needed for Coffee Shops
• How to Start a Coffee Truck in Washington

Further Reading: How to Start a Drive-Thru Coffee Shop in Washington

Start a Coffee Shop in Washington State

How Do You Start a Coffee Shop Business?

Starting a coffee shop can be an exciting and challenging venture that can be very successful. So, how do you start?

First, decide on your coffee shop concept and start writing your coffee shop business plan. Our Complete Coffee Shop Startups Kit comes with a business plan template and guide to help you finish your plan very quickly.

Without a well-written business plan, you'll likely spend more money and be frustrated with the development of your coffee business. Additionally, finding additional funding or capital will be more challenging.

Conclusion:

Starting a coffee shop in Washington is exciting and very promising. There is no place quite like the Pacific Northwest. Its diversity and high concentration of people in certain cities can create a good demand for coffee in nearly every neighborhood. 

With its diverse target markets, shorelines, islands, and coffee shop roasters, you'll have no problem getting the items you need to start your coffee shop.

Starting Your Coffee Shop in Washington

First Steps To Open a Coffee Shop in Washington

• Study Your Target Market
• Settle on Your Coffee Shop Concept
• Workout your Anticipated Budget
• Create a Funding Mix and Strategy to Pay for Your Business
• Write Your Coffee Shop Business Plan
• Create an Action Plan

We offer a lot of resources here at Coffee Shop Startups. We encourage you to visit our blog and read our coffee shop business articles.

For more information on how to start a coffee shop, read our 30 Steps to Opening a Coffee Shop.

Additional Questions:

What are the best neighborhoods in Washington State to start a coffee shop?

I recommend that the best neighborhood to start a coffee shop is in your neighborhood. Washington is so diverse with people and neighborhoods – all of which crave specialty coffee. You have potential coffee customers everywhere in Washington – from bigger cities to small towns with high traffic.

However, the best location is best determined by defining who your target market is. For example, do you want to serve local college students or commuters on their way to work? Will you want to serve students at Seattle University or WSU? Do you want to be Georgetown or SODO or serve tourists near Pike Place Market?

The trick is to make your coffee shop location serve the right customers with the right sales volume and be convenient for you.

How much does it cost to start a coffee shop in Washington State?

The costs of starting a coffee shop in Washington state can slide widely on the spectrum. Various essential factors impact cost – including location, coffee shop concept, and menu.

Overall, real estate costs are generally higher than most of the rest of the country. The exception is maybe starting a coffee shop in California or a coffee business in New York.

Nevertheless, the hope is that the real estate costs will be offset by the sales volume and your price point.

For a more in-depth look at the costs of starting a coffee, please read, The Costs of Starting a Coffee Shop.

Get The Complete Coffee Shop Startup Kit &

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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.

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¹ zomasleep.com/blog/most-awake-city