The average cost to open a single coffee shop with seating is between $80,000-$300,000. The cost of opening a coffee food truck or kiosk is on the lower end, closer to $60,000. Including both seating and drive-thru coffee can reach into the $300,000+ range.
Key Factors
The key factors that determine the overall cost are:
- The real estate location,
- Licenses and permits,
- The size and style of the coffee shop.
Despite the expenses, running your own coffee shop can be rewarding and lucrative. The franchising fee for some brands is $35k, and you’ll need at least $100k in liquid cash available. The minimum total investment expected into a coffee franchise is about $227k, with a high estimate of $326k.
Ongoing Costs
Once a coffee shop is running, there are ongoing operating costs like utilities, labor, and inventory. Suppliers are needed for coffee beans, milk, sugar, cups, lids, and napkins. Permits and licenses include a business license, health department permits, and food handling permits.
It can cost about $200,000 – $400,000 to set up a coffee shop with drive-thru service and a sit-down lobby. A small coffee stand might only cost $60,000 to set up.
Starting a coffee shop is not for the faint of heart. The average cost to open a cafe or coffee shop can range from $100,000 to $1 million. Opening a coffee shop franchise typically requires $200,000-$700,000 of investment in addition to long hours and hard work early on.
Coffee franchises can be profitable with good cost management. Owners of a medium-sized shop can make $50,000-$250,000 a year depending on location, due to high margins and low stock costs.