6 reasons to NOT Open a Coffee Shop
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- เผยแพร่เมื่อ 15 ม.ค. 2019
- It seems that almost everyone wants to open a Coffee Shop. And why not? Imagine walking into your store daily to pick up your bag of money - the barista smiling as he brews while the smell of fresh roast and sounds of happy customers delight your senses. Coffee must be a great way to fill your pockets with money - right? Today we're going to take a critical look at opening a coffee shop on Franchise City.
Coffee is another business that carries a lot of emotional momentum. It's kind of the go-to retirement dream or, a business that is the exact opposite of the rat race. No board meetings, no fighting traffic, no stress and no pressure. Or so they think.
So let's get that misconception out of the way first. Owning a coffee shop is operationally no different from most service based food businesses. You'll be dealing with employee theft, spoilage, sourcing issues, high attrition levels and ongoing difficulty in finding quality employees at reasonable hourly rates. It is not rare to see new owners putting in 80 hour workweeks to try and make things happen. if you think there is no pressure running a coffee shop try a vision of payroll coming up tomorrow as well as your rent and you are once again $2800 in the red with no way of paying. Your best selling coffee roast is on back order, your manager just quit, the washroom is plugged again and you just got 4 bad reviews because your washroom is plugged again.
In the coffee business you'll also be at the mercy of very "passionate" customer sentiment. This industry has a fickle and demanding customer base who expect you to be better than their last shop. You will be very hard hit if any of your employees give bad service, or if your coffee is not up to these very high standards of local coffee drinkers. If you receive enough bad online reviews when you first open it can literally turn your coffee shop into a ghost town. Social media has a massive impact on buyer decisions these days and you have to ask yourself are you, as a new entrepreneur savvy enough to understand how to train your staff in great customer service? Because it doesnt just happen. Are you able to source coffee and to have it prepared in such a fashion it blows customers away? Can you source it at rates low enough to make money?
And here is the problem with most prospective coffee shop investors. They have no idea about coffee, no idea about customer service. They just noticed a local coffee shop is often busy and see this as a quick way to make money. If money is your primary focus, and you have no previous skills in food service or customer service this can actually be a very difficult business to operate despite the glorious visions you have in your mind.
Now even if you do happen to have a handle on good coffee, a good handle on running a business and hiring and managing employees the industry itself right now is still tough.
In fact Starbucks, arguably the most successful coffee brand in the world, will be closing 150 stores this year. That's three times as many as it usually closes. Do you hear that? 3 times more than it usually closes. Closing stores is an ongoing, regular event with Starbucks. Closing stores - not opening stores.
A quick search for "coffee shop closed" reveals hundreds of these results, local shops all over the country closing their doors for various reasons, mostly monetary. This owner was quoted as saying "The business hasn't made itself sustainable yet and it's been almost 3 years. Can you imagine struggling for 3 years only to have to close the doors? Prospective investors should take time to click through some of these stories, most of these independent shops were trendy, cool, had pretty solid reviews. Everything was in place and yet they had to close down. Some had been open for up to 30 years.
If we do a search at BizBuySell -which is a listing website for selling businesses we see there are almost 1200 coffee shops and cafes for sale. Are they selling because they are making too much money? Let's take a look. We see locations for sale at $15,000, $19,000, $20,000 with seller financing.
Tim Hortons, arguably the most successful Canadian coffee shop, had owners recently hit with a $250,000 reduction in annual earnings just due to minimum wage increases. Tim Horton's is also seemingly struggling with their rollout and expansion into the US market and even they are closing stores.
There are many businesses and franchise options out there - not just coffee, don't let your emotions guide you as always do your research in a critical fashion. If you are considering the franchise route and need help finding a franchise give the experts a call at franchise city. Our services are free to qualified buyers you can learn more about us here.
www.Franchise.city
#FRANCHISECITY #COFFEESHOP
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As a previous coffee shop owner who worked 80 hour weeks I'll add a 7th reason you might not want to open a coffee shop. When looking at Franchises or even doing your own, the focus always seems to be on the profit margins. You'll hear numbers like "Coffee Shops make 50-75% profit" and for some drinks that's true. However lets look at that in closer detail.
If I'm selling a 12oz coffee at $2 (about the going StarBucks rate) I've just made a whooping $1 - $1.50. How many cups of coffee do you have to sell to pay your rent or to pay your employees? A lot that's how many! Plus those margins go down when you add milk to the equation or if you are doing worker intensive brews like Pour Overs. When you are pulling in just a few dollars per customer in profit you need a lot of customers. A lot of customers require a lot of work. Work = Staff = $$$$$$$$$.
So don't get fooled when you hear about those super high profit margins. Ignore that and calculate how many dollars of profit you will average per customer. Then add up all those other expenses (rent, employees, utilities, etc) you have and figure out how many customers you'll need per day to break even. It will be a lot.
Chinese just took over the Safeway Starbucks...God only knows what they put in the coffee to make a profit!
That's true. Coffee sells for a really low margin for the costs involved, and it has to sell a high volume of coffee daily to make a meager amount of profit. People get allured by that supposedly high % of profit but people who are not business-savvy / educated, they always overlook the Total Costs of their business and what their Net Profit actually is.
I hear you man, everyday almost 400 people come into my coffee shop which has a monthly revenue around 40k usd, but at the end of the month, I barely make it...
Sam...you must be doing something wrong, man!
Seeking advice...I am a barista at a franchise currently and I have seen the slows, and the fasts of the business. I want to open my own place. Where I live, the specialty coffee scene is lacking. Do you imagine a small coffee cart could be successful? Say its just me, a business partner, and maybe two employees. I would be willing of course to be the primary barista and such, is it worth it?
is it weird that this video motivated me even more?
Like wise...heheee
Not weird at all. If you know the obstacles then you are in a position to overcome them.
Mariah so have you yet opened your shop yet. I still love the idea and dream of it opening them big doors every day, but the advice he gave would not have stopped me prior. His words are spot on and see my competitors feeling the pain also. Its hard so so very hard even without the pinch financially. Wish you all the best whatever you do.
Sugar, Salt and food coloring makes customers happy.
Mariah it's not weird. It motivated me more too. The market for everything is super competitive nowadays. I think it helps also that his examples were mostly chains that serve mediocre coffee. If you have a good grasp on your product and know what tastes great, I think you'll be fine. You won't be making millions but you will stay afloat.
"Even starbucks is closing stores"
Welp, that's good! by the time I established my own coffee shop it will be easier to beat them
its my dream to open a cafe and this is the first thing that comes up when i looked for tips-
There are also lot of positives, and many people have had great success in the business. Just be aware of both sides and the challenges you will face - then make it happen! Good luck
SAME
SAME HAHA
Me too, it came u as.my second recommendation..
Sameeee 😭😭😭
I have a dream, and this is where I go to get it pooped on.
In all seriousness, thanks for injecting some reality into our fantasies.
Thanks for the comment. Tons of great businesses out there still! keep those dreams alive
Well I wanted to make something entirely new a custom craft store where people can learn how to make different crafts, buy hand made items, and candy. So would something like that work ?
As an owner operated business these can do well. They key is local marketing, and building a client base. Most people expect when they open the doors that customers will flood in. They dont. be prepared to work like crazy to get customers in the door the first year or two ! @@consumerwatch7479
@@FranchiseCityOnline thank you I should figure out if people like making their own things, what the cost of opening a craft shop and the right marketing.
Depends on the crafts and size of shop. I wouldnt want to open any retail venture without at least 6 months working capital including ad spend, employee wages, rent and inventory. Most indy stores expect to make money day one - doesn't happen. $60-$100k depending on your rents and initial supplies would be a rough guess.
The number 1 reason why I wouldn't open a coffee shop is that it looks like an oversaturated market.
Exactly!
I thought Breweries were oversaturated 15 years ago and they keep popping up faster than ever.
It is about location and promotion. Need to be in a walkable town and you need to have poetry/music/etc nights 1-2 times a week. People love those things and they like going out but not to a bar. It is also a fine line on average ticket as you can only squeeze so much out of a cup of coffee. But if you go too far then you have a kitchen and a full restaurant.
In College Park of Orlando Fla USA there are about 6-7 coffee bars, shops within approx 1.2mi 🙄. 2-3 are okay but the area is WAY over run with coffee-donut-cafe venues. Note: this includes chains: Starbucks, Dunkin Donuts, Einstein Bros.
Leggo My Ego
The number one reason I wouldn’t open a coffee shop is that I don’t like coffee.
Most of these things have nothing to do with coffee shops, they apply to any business and it is the beauty of doing business. The long hours, the risks, the management, the surprises, that's the whole point!! If you're an entrepreneur, this guy is actually very motivational! If you just want to own an "easy business"
Then no business is for you, even coffee.
I've been a restaurant franchisee for over 12 years, and you provide the most honest and relevant information of anyone I've ever seen in regards to the franchise industry. I wish I would have come across this information 12 years ago. It would have saved me a ton of money and made me a much more informed business person. Great content, and I would recommend anyone looking to get into the franchising business to subscribe to your channel and to use your services.
But are u finally making it? Is it doable in the long term? Or is it better to look away from food franchise businesses?
What restaurant did you franchise with?
Besides what you wrote already, Any other advice for someone looking into other business ventures in 2019?
@@Mgamble214 I'm a Subway franchisee, and although I've done fairly well, it's been a tough business. My advice to anyone looking into any business venture would be to make a lot of friends with people already in the business and get their perspectives on their experiences and what it will take to succeed. Also, assemble a team of people you'll need before you get started. On your team you'll need (at minimum) a good bookkeeper and accountant, an attorney, and a business advisor, which is someone who has been in the business who can advise you along the way. I'd start with someone from SCORE.com since they offer free mentors and advisors. Also, get access to as much capital as you can before you need it, but minimize the amount of loans you take. What I like about this channel is that they don't give you any BS and they are unbiased in giving their opinions on these opportunities. Business is challenging, but it can be extremely rewarding if you do it right.
Thank you for the feedback - much appreciated.
@@xSayllusx I am making it and it is doable in the long term, but I'd suggest looking at opportunities that best fit your goals and skillset. If you find that the franchised restaurant business is for you, I'd suggest looking at companies that are in their growth stages with relatively good margins, and have a strategy to purchase several units. You will likely hate this business if you only have one location. Also, you will need to have more of a passion for business (e.g. marketing, managing, selling, coaching, etc.) than for food to really be successful. Read "The E-Myth" by Michael Gerber. It really puts things into perspective regarding franchising and the food business.
You should change your channel name from Franchise City to Reality Check.
Lol
Lol no kidding
Underrated comment
The guy looks like he is in a fog cloud.
I thought it was my iPad.
lll
He’s talking from one of his marijuana café shop franchises
The scenes he is in is a re-edit looks like he wanted to reshoot some scenes. Videographer would be filming in v-log and color graded after. This comes at extra costs $ for re-editing so he would have just had a quick cut paste edit.Im a videographer and hav this issue with clients all the time
Chemtrails
Sorry, but like any other business you will have challenges. This was all negative, low vibrational talk. If it's God's will and I work hard towards it, I'm good!!
Agreed ♡
Ya, let me interview 5 years from now. Your a receipt for disaster...
you successful coffeshop owner yet?
Amen !!
If you can advertise aggressively, you can make it .. share leaflets e.t.c
Couldn’t disagree more, my wife and I started a coffee shop last year and have loved every second of it.
I really enjoyed hearing your perspective though, very interesting 😁
Thank you! And very glad to hear you have had a positive experience. Our videos are cautionary and certainly not meant to suggest that success is an impossibility.
Jack please share how you did it!! How much is the take home? Any advice?
@@RainyTank I'd also like to know
Loved, as in past tense? What happened?
I found a place about to open coffee shop can u plz give advice i really neef it
I'm opening up a specialty cafe real soon and ironically, this video has gotten me so much more pumped up than ever. Thanks!
And that attitude is exactly why you are going to be a resounding success!
You feel that way because you’ve done your homework and you probably have an answer for “how can an independent coffee shop avoid all of the pitfalls mentioned in this video?”!!! I’m hopefully opening up my shop in about 1 week and this video is exactly what I needed to hear. The vigilance never stops. We are the ones who are masters when it comes to balancing profit margins and customer experience!!!!!!
I know this entire channel is an ad, but this is my new favourite TH-cam channel.
I've been wanting to open a coffee shop for about 5 years since I've been in the industry. I don't have money but this is my dream. What I hate more than anything is when a money hungry person opens a coffee business with little to no expertise and zero passion for coffee and watches it drown. This is not a get rich quick business. I've made it a goal to study coffee from every angle and I encourage this video as it guides the right people to open this kind of business. Thank you for sharing!
Have you started your coffee shop now?
I helped a group of friends open and start an independent coffee shop at a town center after the local cafe Franchise shut down and there was no longer a place for people to socialize and work in the area. It's exhausting for the founders, but they were passionate, dedicated and experienced. We got the whole town on a mailing list and one of the founders had a huge friend network that brought in business.
A trend that seemed to work for us is that originally the place is a restaurant at night, and a cafe in the morning. Since the venue is already rented out, the cafe has less bills to worry about. The restaurant owners are shrewd business people and very savvy (They hired a full-time artist to work as a barista and restaurant server while he worked on advanced pieces to decorate the restaurant). Each person had a role to play.
I had a background in art as well, so I did the menu boards while working as a barista.
My advice on starting a coffee shop is not to start from scratch, and find employees that could invest themselves and their talents into your business that could keep them around. And find a venue that has a lot of things already set up. If you're looking for someone quick to pay cheaply, you're probably going to get more turnover.
Great points - thank you for the comment.
Man you do great at capturing my attention. I saw the title of the video. I reacted with the emotions of the stereotypical "yeah how cool would that be imagine how chill!" and then you hit me with the scenario of the toilet being plugged the manager quitting payroll due tomorrow and I'm in the red. Then your comment about how I know better than Starbucks right? Dang that hit home. And then a rational conclusion of how it is possible. If I had several hundred thousand I would be calling right now because this is it chief
Thanks for your content. I have a pest control operation and I can see this myself first hand. About 90% of the customers who goes under are on the restaurant-coffee shop food industry. It is so bad that now I required to get paid on spot (no credit issued for restaurants).
I see so many bright enthusiastic people of all ages pursuing their dreams of making so much money that forget that running a business have nothing to do with how good you brew coffee or how amazing you cater somebody . It is all about supply and demand, stamina, perseverance ( and owning the place and pay no rent helps a lot).
The more people are on a specific industry the smaller the piece of the cake will be...
I see many business owners who believe that because they own a shop (or any type of business) they can delegate a "supervisor" to RUN their daily operations, and guess what happens few months later??? the business is under and the owner spends 100 hour a week trying to get the business back to life
I have learn a few things about this industry and I can tell you without fear of being wrong that the food service industry is by far the MOST stressed, competitive- labor-intensive industry out there. And if in top of that you plan for hiring people at minimum wage and pretend they will outperform well, I wish you good luck in your endeavor.
Thank you for the comment! Very valid points.
One of the rare people on youtube that actually knows what he's talking about not like most "entrepreneur motivational speakers" these days.
Thank you for the kind words!
Everything mentioned could be for any business not just coffee shops
I wish my brother knew this before opening a coffee shop only to close it 2 years later.Love your honest professional advice.👍
Thanks for the comment!
This business is a real grind. Our city used to have a thriving coffee shop that we called the "beautiful people coffee shop". At one point, the owner's seem to have given up. Customer service tanked. They refused to serve me one afternoon because of a "private event". They left their catering equipment at our office and refused to pick it up. A couple months later, they closed down. Starbucks opened later, and then closed down. This is one of the fastest growing, most affluent cities in the state, and it can't support a coffee shop.
What city are you in?
real "grind"! Thanks for the comment.
Good, caffeine is a drug...
truth tellor Not a very strong one. If I ever open one, I'm selling Yerba Mate. :)
Actually, I have a friend who just opened a coffee shop and it’s very successful so far . I think it depends also where your business is located. As soon as people love coffee you don’t have to be afraid if you think you can complete.
When I lived in China and taught adults, many women would almost always say "I want to open a cafe". It was the defacto standard business most would default to for some reason. However when you did visit those tiny little hole in the wall cafe you quickly saw where things stood. Some were virtually empty and closed up shop soon after. Others had high prices and horrendous stale products that made you throw the pastry away after one bite. The wanna be chic place that had everything except normal coffee was always a head scratcher because if I want to give you my money why not give me what you definitely have. Some places sold coffee and beer but nothing to eat except pastries. I would say 80% of the small cafe's failed because they were out of touch with reality. When you did find a great coffee place it had comfortable seating, food, variety of coffee, great service that was fast but not rushed, good music, smoking allowed outside, creative specials for everyday of the week and the feeling that you were transported out of China and into some foreign place you couldn't quite put your finger on (As cheesy and stupid as that sounds). Those places for were packed on the weekends and just great place to sit down on the weekends. It' took business sense and taste of artistry to make it happen it seemed. Even then it could still fail but when they were good, they were very good.
Interesting! Thank you for the comment.
Wow. Perfect timing! Thanks for making this episode.
Thanks for the comment.
Great video. I always look forward to hearing your thoughts on different business models. Thank you again for the video
Thank you!
I had an acquaintance who opened a coffee shop and loved it. It didn't so much business, but he told me it was an excellent way to launder the money he made in his main business, which was selling drugs!
You made my day. Hilarious!!!
Reason 7 not to open a coffee shop: I'm not a drug dealer and don't have any illegal money to launder and don't want to become a "Danny" either.
meth from mexico?
While I love indie coffee houses for several reasons, one being use as a field office, too often they seem to be owned by hippie types who don't grasp the finer points of running a business. In shark tank terms, they have a hobby, not a business.
OTOH, if you are giving advice on locating, tell people to put one right near their county courthouse. You would be amazed there.
100% true - thank you.
AZDuffman thank you
These are some of the greatest videos on TH-cam. Even if you are not looking for a franchise opportunity the information is top-tier the best you can find and what a magnificent thought pattern. Thank you for your great work
One of the big chains in my city closed one of their shops. It was next to a six lane highway and I was told they didn't get enough foot traffic.
These are always entertaining. Keep it up!
You keep visiting we'll keep making! Thank you.
This guy should teach business at a college or something
Probably overqualified and grounded in truth.
You have to be a communist to teach at colleges/universities. I don't think he qualifies.
@@herleikholtan7850 I would if I had the money.
college professors live in a delusional bubble
He clearly has too much integrity to engage in the education racket known as US institutions of higher learning! I will like, subscribe, and share to support him reaching a larger audience.
Thank you for pointing out things many woulden't realize at first by giving us that information. Coffee shop would be great to have i thought but like you point out there is sooo much more involved than first imagined
Thank you for the comment
Work Smarter Not Harder...but most importantly never give up!
great video. owning and operating a business is tough- the only thing that is guaranteed is bills, long hours, endless problems, employees who seem determined to kill your business, and more bills. Yeah. I own 4 businesses and have for 30 years.
Thank you for the sobering but highly accurate comment!
This is my new favorite YT channel!!
Very Relaxing in the coffee Shop With Good Coffee And Scones
I love your videos, very informative. Can you do a video on opening up a liquor store? If you've already done one, where can I find it?
So much knowledge for free... thank you!
Thanks for visiting!
Thank you sir for the constructive suggestions! Thinking about opening a small cafe, now it seems worthy double thinking!
Try running a for-profit business staffed by anti-capitalist employees. Good luck.
I love this channel
I am LOVING these videos. Thank you very much. Could you please do one on bubble tea franchises?
Thanks! I'll check and see what I can find.
Alrightythen @Maiahi
This is great advice, I'll be sure to take everything into account
Can you please make a video on a ESL or Teaching English Franchise ?? Your videos are truly helpful! Thank you so much! I saw an ad regarding an ESL online franchise.
Interesting - I had not heard of that - I'll take a look. Thanks.
Great information and arguments.
Back in NZ I strongly considered starting a mobile coffee van. $10-20k for an entire van set up. Espresso is high priced and production costs are low. And you have the option of moving location to where suits. Park up at 6am and get the morning trade workers before going into the city/town to catch mums on the way to work.
North America with it's popular and cheap drip coffee makes this a lot harder because people expect a $1.50 coffee, but in NZ where it's normal and expected to pay $4-5 it's a lot better of a model.
Watching this video just made me do exactly the opposit. jump into it
Thanks for another new information! Got more request: Super 8 Motels Franchise!
Thank you for sharing informative information
Thank you for the comment!
You are awesome....straight good advice.
Great video as usual, I have seen quite a few people's business go down FAST in the coffee shop business. Would love to hear your thoughts on owning a cannabis dispensary, since it is legal now (in Canada) it seems like everyone wants to open one but I'd love to know more in detail the risks and such so I can lecture people about it, since I have no desire to open one myself haha.
Stay tuned! we are just about to begin the licensing process for producer status. We have acquired the land and zoning - now starting the applications. I created a video before the legalization suggesting we would not be getting involved for various reasons.......th-cam.com/video/3sY9bbBK9hg/w-d-xo.html but we are going to take the dive and see what happens. Thanks for the comment.
Best thing is to have the coffee shop as a front to some other backroom illicit business. ... wink... wink...
thank you for the advises!
Thanks for visiting!
Hello ; I’m so glade I find your video ..I’m making a plan to open a delicafe /import more French deli in it little ice cream .I not looking for a big crazy one but a very small even less than 1000sf with couple seating outside .In Houston what your advice ? I just got discourage by watching this video ...
One of those wi-fi scavengers stole my umbrella at a Starbucks in FL. I will never forget
i used to have a dream of owning a coffee shop somewhere down the road but i'm glad i subscribed to this BRILLIANT channel! ALWAYS ALWAYS SOLID AND SMART ADVICE!!! keep them coming
Those were some excellent considerations covered, not just bashing an idea.
Thank you!
I would name my store The Coffee Joint.
Cannabeans
I'd call it Perk Up! ☕
whatever happened to book stores and overstuffed chairs?
@@dogie1070 I love that, and the old bookstores too. 📚☕🍮they will come back in fashion one of these days...like rotary phones.☎️📞
I thought about opening a coffee shop near 9/11 site called Grounds Zero.
Currently, me and my wife opened a coffee shop franchise overseas in Thailand which is booming of coffee shops. Unfortunately we had opened our shop right at the time of the covid situation. Fortunately we have gas station that comes with the coffee shop which is located on a highway. Like the guy said if your location has minimal competition and lots of traffic then it will be successful.
How is your business going? It seems there is a cafe on every corner in Thailand, especially in the cities.
It doesn't matter what this guy talks about, I'll listen to him. Wish I had teachers like him when I was in school
Thank you for the kind words!
Good thing I love a challenge! While I am so terrified of failing, I feel like I would regret at least not trying to open my dream store :) I have worked at and managed multiple local and franchise stores. Some days and some customers make me ask myself why I would subject my whole life to this. Although, most days I cannot imagine doing anything else. I have so many amazing ideas and plans for a future store, I just hope that my work ethic, knowledge, passion, and hard headedness is enough to make it happen
Coffee shops are the new pubs/bars here in the UK....far too many for the available trade....living in a small seaside town I have witnessed a number started......even Costa closed one of its shops on the seafront.....another in depth and searching video,thanks.
Deciding to open up a coffeeshop is like choosing hard mode from the get go
Do you have any insight on some of the resale type shops that Winmark operates (Play it again Sports, Once Upon a Child, Music Go Round, etc.)? These look interesting - I know I spent more that I should at several of these!
Not offhand but I will take a look. Thanks for the comment.
How insightful
I am a coffee grower myself at Kodaikanal, India.
This video was very helpful.
God bless.
I have two coffee shops. Here are some keys to successfully running a coffee shop, in my opinion:
1. Expect to work it, no employees (or none working by themselves) for the first year. This ties you personally to your clientele and gives you an excellent idea of the day to day cash income which will help you mitigate employee theft. It is so easy to pocket cash in this business as an employee.
2. Buy used equipment, learn to repair it on your own. It's not rocket surgery. It will keep you from drowning in equipment loan repayments the first year. Buy new equipment when you are banking money. But that new stuff is so shiny!...
3. Roast your own. This is a challenging statement, but you can do it. You can pay off a 2.5 kilo roaster in two years from savings on wholesale coffee. On top of that you control quantity, and most important quality. This will likely be your most expensive outlay, including the green coffee and shipping. But do the math, $3ish for a lb. of coffee green, roasted gives you 12 oz. of finished product, sold in the bag for $13-15. When used in an espresso shot (20g) sold for ~$2.50 = about .011 per gram = $.20 in product cost (not including your time and labor).
Cm RA: I bought my first nuova simonelli for 500. Not in working condition, but a week spent learning how it worked, and another 350 in parts it worked for another three years.
I love this Channel.....
This is where I get my advance education.
I really enjoy these videos and I thank you for making them. I noticed that the camera used tends to blur everything into a grainy quality. Is it just me? It's not that bad, but I feel it could be much better. Have you considered purchasing a better camera?
Thanks for the comment. It's actually a very expensive DSLR. we wouldn't have anything less for our viewers. The blur effect is called "Bokeh" and is impossible to achieve with an inexpensive camcorder. It is an intentional film look quality - of course it does not suit everyone and sorry if you don't like it. Here is an explanation of how people achieve that expensive affect without buying the expensive camera th-cam.com/video/azsfUXCxtO8/w-d-xo.html
I'm planning on to open a coffee and ice cream shop. I do appreciate all these negative ideas he's sharing. But, the world is very competitive, it's only better for you is you're a very very rich guy to open a business that less ppl can afford. This is life, help yourself the way you can. Never let the failure of ppl make you retreat. Coffe shop cannot really pay all of your Bill's unless you have multiple shops.
There are 5 coffee shops on one street where I live, it seems they are doing extremely well since they do have their own customers. Then again, it’s right up the street from 2 schools and hipsters everywhere. I think that’s another thing to look forward too
Great video
I think Robert injects realism into the conversation of franchiseeism and business ownership in general. It’s not negativity, it is truth. He’s not trying to discourage anyone from achieving their dreams, he’s trying to make sure you do your homework, do some research and go into any risk taking venture with two eyes open. There’s so many things to learn before you can even start. Where’s a good location for my business? What do the customers want? Then it takes time to build a rapport with people so you can build a customer base. If you’re going to buy a franchise, then what are the terms and conditions of your agreement? What kind of culture are you going to be entering into? Franchisees feel like they have no voice, no support, that the franchiser is just doing what they want at the franchisees expense ( ex Subway). Sometimes franchisees get a voice and support, sometimes a needed renovation is a 50/50 split between franchiser and franchisee. Sometimes you get that enlightened franchiser who cooperates with the franchisee so both can make money, other times it’s a Ponzi scheme where the franchiser is only interested in selling franchise units and screws everyone
Best. comment. ever :-) Absolutely nailed it. There is no perfect business, and knowing the obstacles and challenges of any business before investing might save a fortune. We are very pro-business ownership, but don't rush in blindly! (Sorry YT stuck you in junk for some reason had to rescue it)
Reminds me of people wanting to quit work and follow their passion "making guitars", or woodworking in general.
Very true!
This is exactly what I did. And I make 300x the amount of money I ever did working at a desk job. I'm a functional potter now. You just have to have drive and not give up - nothing is impossible no matter how stupid and over said that phrase is. Some people have the drive and they make things like coffee shops happen and flourish and others do not have the drive. Just depends.
Can we get your take on duct cleaning? Im a heating contractor who bought one, so I have a use for the machine.. however I see others trying to get into it outside the trade.. might be a good one
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Welcome!
Nothing but the truth. Thank you.
Thanks for the comment!
Just wanted to let you know Berlin Bicycle Cafe is back in business, and I think an issue for this cafe like a lot of cafes is location. Cafes need to be in high foot traffic areas like a city center where there is usually more established cafes with regular patrons.
Can you review spherion franchise please?
It has really been saturated the past couple years in the Conway, AR area.
I love your channel, yet I wish to see more global view, & a discussion about small business. Thx
Thank you! Unfortunately we are not familiar with markets outside of Canada and the USA.
Thanks for the transcript. I didn't have to watch the video, though I'm sure you did a good job.
I studied hospitality and catering for my GCSEs
I plan to open a restaurant and a cafe when I'm older and already have a job
Please do a episode on Wataburger. They seem to have good numbers. Id love to see your brief.
I'll take a look!
Good business idea 👌
It depends on the location, some coffee shops have heavy traffic
Really appreciate the video. You do bring many good points, but I'm not sure about the closure part. Like sure many places are closing, but people close a shop for many reasons and not just that its 'not making money'. I can imagine that many people want to open a coffeeshop thinking its an easy thing to manage but only to be shocked by the amount of work needed. As for Starbucks and Tim Horten and the like, there could also be many reasons for that. Starbucks beyond saturated in some areas so it would make sense to pull back from the insane increase in locations. As for Second Cup and Tim Horten, they should feel like they are so outdated and not fashionable. I believe a coffeeshop is more than a place where you go to get your coffee, specially in today is extremely competitive market.
Though I do agree, some coffeeshops do close as they are a hassle to manage and operate. I am planning to open my own coffeeshop business in the next few months and this was very refreshing to hear. I'm glad those reasons were not new to me as I have considered at least most of them. I think the toughest aspect is figuring how to make the place 'special.' You cant buy fancy decor and call it hip. You need to know the community and the people who would go. I think there is a lot more to it than serving good coffee. Again, thank you for the video and wish me luck :)
Thanks for the comment!
I used to work at a coffee shop for 3 years. I think this market is saturated and to some extent it’s a commodity business.
Coffee is very fickle. A bad batch or fungus-bad crop could cause major $$$ problems. It happened to cigar tobacco about 15yr ago.
@Aditya Wardhana yeah, our people have no taste on high quality coffee.
SO few comments? Why do people want to fail so badly? Everything that you need to know about setting up a business is right here. Very good advice which, of course they would never teach you at University, (especially UBC). I wonder if you could do a show about being a pharmaceutical compounder and what all the pitfalls are about that business?
Thanks for this informative video.
Please your advice to baristas running coffee shops and truck business
Should they close or keep on?
Not sure if I understand the question - should a barista open a coffee shop?
@@FranchiseCityOnline I'm a barista recently hired by a new owner to run his new coffee truck business.What advice for me and my new owner. Should we stop or move forward?
Ah - thank you. I dont know much about coffee trucks other than an associate who owned several routes. If the route is good it can be very profitable. There are generally two operational components - the first - selling the service to events or corporate customers - then actually servicing the routes. I recall a single big account could be very profitable so he hired a person to make sales calls - then made sure he serviced those customers very well. Like any other business in that regard. Its pretty low overhead so not much risk. Sorry I could not give you more than that! @@ReneRingnyu
@@FranchiseCityOnline I'm in the Middle East (U.A.E) I guess the market trend here, especially for locally owned "Speciality coffee" is gradually gaining grounds against the locally consumed traditional arabic coffee, to the extent of disfavoring the bigger commercial coffee chains and franchises.
Oh and can you please do one about boba time? They are rather trendy but probably similar to a coffee shop, however they have kiosk options!
Great idea - I'll look into it thank you.
I wanna watch this video all day
recently bought and run a café in Oz, points still relevant. Even knowing this info I would still run a café on where I am.
Thanks for the comment! very different market - more of a gourmet mindset and not Starbucks fixated.
@@FranchiseCityOnline very different, although not at first glance. the differences are inherent. SB couldn't really cut it over here. we are super coffee snobs, with a strong Italian and alfresco background, and nowadays the local, boutique roasters are king. The coffee-makers (couldn't yet call them baristas then) in the US loved me, because I would make them slow down, take their time and make me a good coffee (flat white, NEVER a crappy latte - had to do a lot of teaching, but they were keen), then i would tip them bigtime for their trouble. Everywhere I went, within a couple of days, there would be competition over who would make my Flat White. They were all interested in the Aus coffee scene, perhaps because it was already well-established while America was still making burnt lolly-bean concoctions. just my contribution to your coffee culture (which wasn't huge in '99/2000). I gave too many of my good working years to bosses with no idea of what they were doing, and consequently no idea of how much I (and the other experienced staff) did to keep their business running, despite the owners ignorance/laziness/arrogance/rudeness et al. with the result of long-term injury and a pile of broken contracts, I'll never work behind a machine again... (rsi, carpal tunnel, tendonitis)
I’m in love with coffee.
I remember when I was a kid running an actual coffee shop/restaurant and our customers had a fit when we raised the cost of a cup of coffee to 10 cents. Go figure
Oh my goodness this video made me want to jump on and show this person that this can work.
My uncle has an interesting way to discourage excessive loitering at his coffee shop. He has chairs with front legs that are cut slightly short. He places them in the area they prefer to sit. Amazing results
Genius!
I guess I am not hip or cool because I very much enjoy sipping my cheap no name coffee lukewarm/black.. sitting at my kitchen table looking at my back yard & reading the news. coffee shops have never been my thing. it is a hard business & the employees tend to be a difficult bunch.
I litterly can not drink cheap or super market brand coffee. 🤭 I'm spoiled by web brands, veteran owned firms: Bomb Coffee, Fire Dept Coffee, Alpha Coffee, Black Rifle, BattleGrounds(MA). ☕
me, too!!!