Startup Coffee Shop Owners Share What $100k Really Gets You – CoffeeTalk

A recent study by Ohio-based Crimson Cup Coffee & Tea estimates startup costs for seated cafés range from $100,000 to $350,000. Drive-thru-only operations can cost up to $250,000. However, these national averages don’t always reflect California’s higher real estate and labor expenses. Many Central Valley entrepreneurs are launching successful shops with creative cost-cutting strategies.

Alexander Osuna opened Monkey Dog Coffee in Clovis in June 2022 with a mix of personal funds and a loan from the U.S. Small Business Administration. His startup cost was just under $100,000, including all of the equipment, start-up supplies, and furniture. He made possible by doing much of the buildout with a friend, avoiding major contracting costs, hiring only an electrician and plumber for specialized work, and skipping a kitchen hood installation due to zoning restrictions.

Osuna, his wife, and brother ran the shop themselves the first year, hiring just one employee. That lean approach helped the business stay profitable. Unexpected expenses, including taxes and fees, forced the team to adjust on the fly. Menu strategy became essential to controlling costs.

Dawn Golik, district director of the SBA’s Fresno office, urges aspiring café owners to connect with SBA resource partners, such as SCORE (Service Corps of Retired Executives), the Small Business Development Center, the Veteran Outreach Center, and the Women’s Entrepreneurship Center. The SBA also works with microlenders offering loans of $50,000 or less—funding that can be the difference between opening a café or simply buying coffee from one.

Former NFL linebacker Zack Follett entered the coffee world in 2012 with no prior business experience. He launched Kuppa Joy in Old Town Clovis after taking a weeklong course in Oregon and securing a lease. Follett estimated a new café in an existing building would cost about $290,000. He kept his investment to $130,000 by handling much of the remodeling himself.

The one misstep was underestimating customer demand. He soon invested another $50,000 in equipment to meet the surge. As the business grew, he expanded into kiosks, including one at Herndon and Cedar avenues, later adding locations in Madera and Visalia. The total cost to buy and convert the kiosk site was about $200,000. Today, he estimates that same build would cost more than $400,000.

Despite rising costs, Follett sees strong customer loyalty as a reason to remain optimistic. Kuppa Joy has since grown from its Old Town Clovis roots, with five storefronts and three drive-through kiosks.

Crimson Cup’s report backs that up, with specialty coffee now accounting for nearly 60% of all coffee consumed in the United States.

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