How to open a cafe: Do it in this order

Thinking about opening a cafe in Australia? Before you sign a lease or buy a coffee machine, get your decisions in the right order: concept and feasibility, site selection, fit-out and setup, then launch and operations.

As coffee roasters with a cafe here at the roastery, and having owned and operated for 10 years, then sold a specialty coffee shop, we understand the allure of opening your very own coffee venue. We also know how much work happens before that first coffee is served.

There is plenty to love about running a cafe, but careful planning matters. Be organised, plan your pre-opening moves with care, and seek guidance from people who have done it before.

That's where our friends at Clever Cafe come in. They guide people through opening a cafe, and also support existing cafe owners who need business guidance or are looking to sell.

Here is Clever Cafe founder Tim Noye with some prudent words of wisdom:

Opening a cafe: Why the order matters

If you make good coffee at home, you've probably wondered about doing it for a living. Plenty of people across Australia have. But making coffee is only one part of running a coffee shop. Commit to a site before your plan is ready, and every later choice gets harder. Start the fit-out before the approvals are in, and you can end up paying twice.

The four phases of opening a cafe

This is the order we'd follow, taken from the Clever Cafe Pathway. It has 49 steps across four phases, built by Clever Cafe Company with people who have opened and run cafes. Each phase opens only when the one before it is finished, so decisions have the information they need.

1. Concept and feasibility, 23 steps. Test your concept and your market, then plan your menu and your funding.
2. Site selection, 7 steps. Choose where to trade, and check the site before you sign.
3. Fit-out and setup, 10 steps. Plan the build and the equipment, and get the approvals in the right order.
4. Launch and operations, 9 steps. Open the doors, hire your team and settle into your routines.

Nearly half the steps sit in phase one. That's where people want to skip ahead, and it's the wrong place to rush.

When to choose your cafe's coffee supplier and equipment

Your coffee is part of your menu and your equipment, so it comes up in phase one and again in phase three. In phase one you plan your menu and its revenue potential, and the coffee you serve is a big part of that. In phase three you plan the build and the equipment, which is when the machine and grinder models get selected.

The Pathway's Cafe Guides cover coffee too, along with leasing, fit-out, insurance and more.

Decide what coffee you want to be known for early. Taste a few roasts, and talk to a roaster before you buy equipment. A roaster can help you work out what suits your menu, your expected volume and your machine.

Build your cafe business plan as you go

Every Pathway includes a business plan, and you don't need one before you begin. Each step adds to it, so you start with an idea and finish with a written plan and sound numbers.

Every answer goes into the plan with a note of which step it came from, and it carries into the next step, so nothing gets retyped. The plan is saved as you go and ready to share when you choose.

Check the cafe site before you sign

Test your rent against your sales forecast before you sign. The industry benchmark is 8% to 12% of sales. If the rent only works on a best-case forecast, walk away. Take the lease to your solicitor as well, because the Pathway gives general information and not legal advice.

Start with an idea, a site or an existing cafe

You might have an idea, a site in mind, or a cafe to take over. The steps work from any of them. For a site or a takeover, they show what to check before you sign or buy.

Ask someone who has run a cafe

Every Pathway includes 3 hours with a Resident Expert, a person who has run a cafe. You message them on WhatsApp with the question in front of you.

Because your plan is already up to date, the session starts from your real numbers. You don't spend it explaining your concept, so the time goes on the decision you need to make.

Take the first step towards opening your cafe

Pick your starting point and begin with the Clever Cafe Pathway. The Clever Cafe Marketplace sits alongside it, for the suppliers and services you will need along the way.

Find out more about the Clever Cafe Pathway here

The coffee scene needs entrepreneurs just like you! If you're planning a cafe and want to talk beans, equipment and on-going support send us a wholesale coffee enquiry and we can organise a time to chat about coffee for your cafe.