Start of cafe
- What does it take?
Here you will first get an overview of the 9 steps you must go through to start a successful café.
It is important that you go through these steps before doing anything, and then it would be a good idea to outline your thoughts on a piece of paper. This forces you to decide on a lot of details.
In the start-up phase, you have to decide which food concept you want to run.
You must choose a concept that makes you happy and with which you have a special relationship. You may go for the one with the greatest potential or the one that is most popular, but only if the ambition is to create a chain of several cafés. This requires you to withdraw from the operation at some point and develop a professional organisation. If it is something you just want to be able to do for a living, you must choose something that suits your temperament and something you are passionate about. Then it's also fun in the tenth year.
Already after this step, you have come a long way, because it helps to set the framework for the target group, location, size and machine park. It will therefore help you to structure and organize the rest of your restaurant.
Test menu
Before you start printing your first menu card, you must have the various dishes tested on the target group. You can invite friends and family for some taste testing, or even better, people you don't know who will be honest about the quality. It may be that you like most of the dishes on the menu, but it's no use if the customers can't, and they won't pay for it either. Plus, it never hurts to have a little feedback.
Furnishing
Today, a visit to a café is not only about getting full, but about having a good experience. There are therefore several different and exciting ways to run a café. It could be that you have an open kitchen where customers can see their food being prepared, or that you decorate with a special theme such as an American diner-inspired decor.
The market analysis is often forgotten, but is one of the most important tasks if you strive for a profitable business.
Target group
It is difficult to meet all customers' needs as we are so different when it comes to food. If you try to please everyone, you end up satisfying no one. The reality is that you will never be able to cover 100% of the market. Therefore, focus on the 10-20% of the market that is most interesting.
Competitor analysis
It is just as important to know your competitors as it is to know your customers. A competitor analysis must be able to provide answers to:
How do similar competitors perform measured on selected key figures?
What concepts and target groups do they cover and not cover?
Check how many businesses are near you, both small and large cafes. These numbers are crucial to whether you have a good chance of entering the market.
In short, a business plan is a "guide" that contains a description of your company's future. A document that will tell you how you want to run and develop your business. It must help you in the right direction, so it is important that it is as detailed as possible.
What should a business plan contain?
A business plan is essential for most businesses, but especially the new one. It can help with financing your business when you have to talk to the bank or a financier who can see the potential in you.
The business plan can help to convince them that you have a clear and concrete plan to start up your restaurant. Based on the information in it, they may consider financing your business.
Get financial support to create a professional business plan!
There are support schemes at the various business houses. They co-finance up to half of the costs of consulting advice that strengthens your business's growth potential. Call us and hear more about this on 42613995. This ensures that you can get the necessary sparring on your project.
We have previously created a complete business plan with market analyses, concept proposals, 3D drawings, marketing plan, profitability analyzes and budgets for a new café. The customer received support for the project, and we prepared a thorough business plan that they can use themselves, and for eventual financing of the café.
The starting capital varies depending on the type of cafe you want to start, how much equipment you need, whether it is used or new kitchen equipment, marketing and the necessary operating capital. But typically you will have to expect a minimum of DKK 150,000 if you rent a place with existing furniture and only need to make a simple coffee bar. A real café with a small commercial kitchen typically costs from DKK 250,000.
Premises (price depends on the stand, size, location and existing fixtures)
- Possibly assignment of lease (when it is an existing café)
- Renovation of ceiling, floor, etc
- Installations, such as electricity, water and drainage
- Light
- Disc line
- Furniture, outdoor and indoor
Machines (100,000 - 200,000 kroner)
- Espresso machine and grinder
- Washing station (Table w/sink, under-counter dishwasher, faucet with spray arm and water treatment)
- Sandwich table/refrigerator table, if you make e.g. salad, sandwiches, tapas
- Hygiene wash (mandatory by law)
- Storage freezer and refrigerator
- Backbar for integration in disc
- Wine fridge if you sell a lot of wine
- Oven if you want to bake yourself or prepare hot dishes
- Ice maker with water treatment
- Waste container, possibly integrated into disk
- Small machines such as mixers, sandwich grills, stick blenders
- Kitchen furniture in general (steel tables, shelves, trolley for washing up trays)
- Shipping and assembly
Other (50,000 - 100,000 kroner)
- Service and other hardware
- Music system
- Dankort terminal + Creation + Mobilepay
- Self-control program and e-smiley
- Work clothes, tablecloths, etc
- Signage and printed matter
- Statutory first aid equipment (fire extinguishing, etc.)
- Homepage
When starting out, it is always good advice to keep the focus on "need to have", and then "nice to have" must come when there is a surplus in the economy.
If you do the processing well, there is a lot of money to be saved!
Revenue: 2,500,000
- Product consumption: 1,675,000
Coverage contribution: DKK. 825,000
Salaries: 500,000
Rent: 250,000
Waste management: 10,000
Food Authority and self-inspection: 2,000
Replacement of BWT bottles (water treatment): 2,000
Soap and conditioner + other cleaning products: 1,500
Alarm system: 5,000
Internet and telephony: 3,000
Insurance: 10,000
Koda (music license): 10,000
Domain and other costs for web: 2,000
Economics programme: 5,000
Miscellaneous: 10,000
Profit for the year: DKK 14,500
Things take time, especially new things. Don't expect your cafe to be the big bang from day one. It takes time to attract customers, get regular customers and brand the café. You have to be prepared to lose money in the first 6 to 12 months, which is why it will be an advantage to have saved up a lot beforehand. You will quickly be surprised at how quickly the money disappears.
Alternatively, you can find a location with many tourists. Then you get revenue from the start, as they visit the cafe mainly because of the location and the facade.
For many people, a café is a lifelong dream, but for the dream to come true, the economy must also be in order. Therefore, a budget must be drawn up, which can help you get an overview.
Location is the alpha and omega of running a successful café. You need a location that can attract people to your place. If the café is located correctly, it will also be able to function as an advertising pillar in itself.
If you do not have the right location, you are 100% dependent on other forms of marketing and not least word of mouth. It can be done for gourmet restaurants and concept restaurants that people will drive to. But a regular café relies on a natural flow of traffic.
Choosing commercial kitchen equipment for your cafe is very important. It can be an expensive pleasure and difficult to change if you have not thoroughly familiarized yourself with things.
Quality
There is a big difference in the quality of the goods you find around. A good piece of advice, however, is to go for well-known European brands, and if something sounds very cheap and you can't find much information about the product, it is often because the product is produced in low quality in Asia. That's not to say that you can't get reasonable machines produced in Asia, but it can be a jungle to find out if it's good enough quality.
Guarantee
Also examine service and the complaints rules thoroughly before you buy. Unfortunately, there are many pitfalls in the industry. The suppliers who sell a lot of cheap goods often have other warranty conditions, such as spare parts warranty, "basic warranty", "budget warranty", etc. This means that you basically get a worse warranty on your product, and it is often you as the customer who himself must arrange for the repair of the machine that has broken down. Meanwhile, the supplier simply sends the spare part to you. We recommend only shopping at places where they have a full warranty on their products.
Prioritization
If finances are very tight, focus on the machines that are most important to the operation and buy them in good quality. If you e.g. sells a lot of burgers, then it is not a very good idea to buy a cheap griddle that can potentially break all the time. You can buy the machines that are not so important for the operation in a slightly cheaper quality if you need to save in the start-up phase. Alternatively, you can start by finding used commercial kitchen equipment at a cheaper price. In short, spend the money where it makes the most sense.
Furnishing of the kitchen
In the kitchen, you must secure enough space to have a good work flow and, not least, enough space for any new investments in machines.
At the same time, the kitchen is wasted space that does not generate revenue in the business. Therefore, you must find the golden mean that maximizes the number of seats in the café, and at the same time maximizes the quality and efficiency of the kitchen.
If you have not run a café or restaurant before, you should pay for advice, as the kitchen is not easy to change once it is finished.
Arrangement of counter space
The counter area is important because this is where you meet the guest. and often there is an opportunity to increase sales by having e.g. cakes and drinks on display. A counter can be decorated in many ways, and you can choose many different materials to cover the front counter with. You can see examples of counter solutions here.
A café will never be successful without the right employees. You will be able to run a small coffee shop yourself, possibly with one or two student employees during the busy hours.
A larger café will typically have 4-10 employees, depending on how many are full-time. Full-time employees are the backbone of the cafe, and provide a lot of stability, but students are good at covering the extra hours at the weekend, so you don't have full-time employees standing around twiddling their thumbs half the time.
Remember that when you hire employees they must have a letter of employment. It must contain things such as salary, place of work, working hours, termination etc
Alcohol licence
If you want to serve beer, wine and spirits, you must apply for an alcohol licence. You must apply through the local police, where you must submit budgets and plans for your future business. It may be easiest to take over an existing café that already has an alcohol licence.
Insurance
As a café owner, you are obliged to insure your employees against accidents, occupational injuries and illness.
Food control
The companies themselves are responsible for ensuring that the food is in order and that the applicable regulations are complied with. The Danish Veterinary and Food Administration will make unannounced visits at regular intervals to check the food and that the hygiene rules are being observed. Among other things, premises, machines, labeling of products, self-checking, hygiene, signage, cleaning etc. are checked. Afterwards, "smileys" are issued which must hang visibly in the restaurant, and which will also be published on www.findsmiley.dk.
The best marketing is you, your personality and your network. This means that if you are the type who takes part in the (local) community, knows the mayor, the butcher and god and every man, then you have a super good starting point for being successful without spending a penny on marketing.
Therefore, you must start by spending all the energy and money on making the best possible product! This means that the food is exceptional, the customer service is top notch and the guests generally feel good when they are in your café or restaurant.
This means that once you've got the product under control and your guests and local food writers start giving you good reviews, you can start using it as an asset in your marketing.
The goal of your marketing is to increase the target group's knowledge of your restaurant. You can use both online and offline marketing channels.
Online marketing allows you to measure the value of your hard work and advertising dollars. But it requires that you have an understanding of how to obtain that data. With Google Analytics, you can see where your website visits come from and how many end up booking a table or viewing your menu card. That way, you know which campaigns and initiatives are worth continuing with. It requires some technical setup, which an online marketing specialist can do for you.
1. First of all, you should get a website made.
The website must represent the cafe's concept and provide the information your customers expect. Unlike social media and other marketing channels, you 100% own your website. So the value you build up with your website cannot be taken away from you.
Before you get your website made, it is important that you think Google into it. Whether Google will show your website on relevant searches in your local area is tied to the website's "search engine friendliness".
If you are at a loss when we mention search engine friendliness, then it is probably best that you contact an SEO specialist who can advise you before you have a website made. And remember that it is often better to have an SEO specialist create a website than it is to have a web agency do SEO.
2. Create your café on all relevant websites.
First, you need to tell Google who you are so they can show you on Google Maps. You do this by creating a Google Business Profile . Fill in all the information you can. Then you create your company on Yelp , TripAdvisor , Facebook and other reference works you can find.
3. Start with social media.
There are virtually no cafes that cannot benefit from social media. It's just a matter of which ones and how to use them. Each medium has its target audience, its strengths and weaknesses. The most important thing is that you include the consequences and give something of yourself.
6. Advertise your restaurant on Google Search Ads.
With Google Search Ads you reach people who search on Google. You can target people in your local area who are searching for e.g. "café". This type of advertising is attractive because you pay per click and because you decide which searches you want to target. So you have almost 100% control. But as with all other advertising, it costs money. And that requires you to get the right revenue and profit from it.
Offline marketing
Classic marketing disciplines such as newspaper ads, radio spots and mailed menu cards can work well, but it is often expensive and so it is difficult to measure its effect. In addition, you don't have the flexibility you get with online advertising, which can be stopped the moment you judge it doesn't make sense.
Having said that, you can use offline marketing as a supplement to online marketing. You can, for example, make cooperation agreements with other companies in the area, or use discount coupons that are distributed in the places where your target group is located. You often have to be creative to be successful in marketing.
In addition, you must remember that a nice facade, parasols and signs on the pavement and menus are also a form of marketing. This is obviously a must have.
If you want to start a cafe or other type of restaurant, you definitely need more knowledge than what you have read in this article.
In addition to looking at the below, you can call Cosina on 42613995 and get even more help.
If you live close to Aarhus, you can look into our showroom and get inspired.
