Coffee Shop Startups, an online resource for cafe owners, estimates the cost of starting a coffee kiosk at around $5,000; a mobile business between $10,000-$45,000; and a coffee bar between $50,000-$155,000. 

Commercial leases are normally a minimum of three-seven years, meaning it’s crucial to negotiate a break clause and the ability to sub-lease. In the UK, the Landlord and Tenant Act gives tenants security of tenure after the lease ends.

Try to wangle a couple of months free at the start of a lease as it will probably be several months before you’re ready to make income – most landlords are flexible on this. 

There are three main points of insurance: buildings and content insurance; business interruption insurance; and employer’s liability (if you have employees). The total could be between £350-£500 per year for a startup cafe, according to Will Ellis from Premier Insurance Centre.

A common tip is that rent should not exceed 15% of sales projections. 

The supplier relationship is crucial – along with the beans, roasters can be invaluable sources of advice on every aspect of making and selling coffee, and often rent out equipment. 

With water making 98% of most hot drinks, installing a water filtration system is essential – though you’ll need to test your water to find out what type to get. Commercial systems range from £500-£4,000.

The most common size for an espresso machine is the ‘2 group’ machine, which is capable of turning around 20kg of coffee a week (1kg = 100 cups). They can cost anywhere between £1,000-£5,000 to buy, or £10-£50 per week to lease.

This article was first published in Courier issue 34, April/May 2020. To purchase the issue or become a subscriber, head to our webshop.