Different Types of Coffee Shop Business

Coffee shop business is blooming these days. It was one of the most in demand business to engage with.

However, there are people that wonder if there are any more business to squeeze out of this tight market.

They are not wrong, we all know about the thousands of coffee shops that is just around your area.

According to researches, Italy has 60 million populations and has 200,000 coffee shops.

In the United States with 300 million people, there are ONLY 15,000 coffee shops.

Here, we are using two of the most affluent coffee market, and it is almost definite that your locality have much lesser competition that these two areas.

So, the competition is there, but the opportunities exist.


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When starting a coffee shop business, make sure that you have profound knowledge about the business. Experience is key. (PS: Check out the link for more information on the various aspect of coffee shop business)

Also required is a very strategic and effective coffee shop business plan in order for your business to succeed.

Here are 4 business model to consider when you are setting up a coffee shop:

Start Up

Start up means that you do everything that must be done by yourself alone. From choosing the location to buying the coffee beans, it all depends on yourself.

You’ll be the one to decide and buy the necessary equipments needed in your coffee shop business. You’ll be the one choose and look for the most liked coffee beans.

The decorations and designs on your shop also depend on you. Also, a thorough training on your staffs will be performed by you. You get the idea...

Franchising

Franchising is the most important among the four to consider because this serves as the foundation of your coffee business.

When buying a franchise, you might want to consider purchasing the most well known brand, i.e. Gloria Jeans and Starbucks.

These brands have an effective coffee shop or coffee house business plan which is proven and tested over the years.

Having a franchised coffee shop business is much better than starting up a business from scratch. This is because you will be able to benefit a lot from the parent company.

You’ll be able to get training manuals, management advice and marketing supports which will contribute to the success of your coffee shop business.

Joint Venture

Aside from the start and franchising, joint venture is also another business model that you can consider.

You have to make partnership to a well known or popular chefs and baristas and use his/her name. One example is the Wolfgang Pluck Coffee shop (if Wolfgang Pluck decided to be in your business:)

Sponsorship

Sponsorship has similarities with start up. In here, you are promoting the company’s products and you get free things and services in return.

You’ll be able to get free things like products, equipments or machines, marketing materials, renovations and many more.

For example, your coffee cart business is using nestle products, in return nestle company will give you marketing funds.

These are the four business models that you can consider when starting a coffee business -all the best:)



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About US | OCM Profile

OCM (OnCoffeeMakers.com) was started in 2007 with the first webpage about coffee machines. And for a number of years, we focused on helping people find their desired coffee machine (we still are helping folks with that! So, if you are looking for coffee machines for office or restaurants - check out the link). 

In 2010, we started getting enquiries on restaurant marketing and we start to help food and beverage brands with their marketing. Below are campaigns and events that we have done over the years: 

OCM's campaigns: F&B Marketing Ideas by OCM 

OCM's Events: F&B Industry events by or with OCM

Check out this restaurant marketing guide to learn more about the many campaigns and companies we have worked with. 

Since then, we have also created many marketing workshops and classes for the F&B industry. Many of these modules are still running in tertiary institutions such as Temasek Polytechnic Skillsfuture Academy and also ITE College East COC classes, below are some snippets of our lectures and workshops: 

OCM’s F&B workshops: Food and Beverage Marketing Lectures | Workshops - click to watch classes on customer journey map, JTBD and more. 

So, if you are looking for industry practitioners to help you scale your coffee or F&B businesses, do drop us a message or book an appointment. Do also check out our various social media platforms on regular F&B and coffee market updates: 

For regular coffee (F&B) related videos: OCM Youtube

For Daily Coffee Inspiration (fun coffee content): OCM IG

For insights into the coffee (F&B) industry: OCM LinkedIN 

PS: For the coffee lovers, we continue to share coffee articles (and videos) and have also started a free coffee class section (with free online coffee training supported by coffee partners).


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