One of the most important factors in the success of your business is how you run it. The hours that you operate your coffeeshop can have a big impact on the profitability of your business and customer satisfaction.
Here are some tips to help you figure out when might be the best time to open or close your coffeeshop:
The best hours to operate your coffeeshop are usually during the morning rush, lunchtime, or when the night owls are working or gaming. It would help if you looked into your POS data and operating costs to help determine the best hours to operate. Consider opening or closing an hour earlier or later if it increases profitability.
Point of Sale Data
A point-of-sale system will give you reports that can help you make good business decisions. Use your hourly sales and transactions report to help determine the best hours for your coffeeshop.
Focusing on the number of customers you’re getting and looking for patterns can’t be overlooked. Try to do this consistently for 3 months to get accurate operating times.
Determining when your customers are coming in and how busy you are at different times can help you plan your staffing and marketing strategy. For instance, if you see that most orders come between 7 AM and 9 AM on weekdays, it will benefit you to hire an extra employee in those hours because they’ll be the busiest ones. Or perhaps there’s a lull from 7 PM until 10 PM on weekdays—you might consider closing earlier on Wednesdays or Thursdays so that you can save on operating costs.
If you notice that many customers order food but not drinks in the mornings but switch to ordering both when they’re out for lunch and dinner, this may indicate that they’re coming from work and have a change of appetite between meals. So, include more items during this time.
Costs Involved With Opening A Coffee Shop
Operating Costs
Operating costs are the cost of doing business. They include rent, utilities, labor, and supplies and can be the biggest expense for most businesses.
Other operating expenses include wages, payroll taxes such as unemployment insurance fund payments, supplies used during production processes, etc.
For example, suppose you run a coffee shop. In that case, operating costs include your rent or mortgage on the building where you operate, and any utilities (such as electricity) used by your store. These are one-time expenses that would only need to be paid once per month or year, depending on how often you pay them. We’ll assume there will eventually be other changes in circumstances like higher taxes or new fees from local government agencies over time.
Use your profit and loss statement to help determine your operating costs. Try not to focus on months that include holidays because the data will not be accurate since you’re probably running more promotions and sales.
An example of using your operating costs to determine your coffeeshop business hours is to look at the total labor costs. Break them down by employee type (hourly vs. salary), then compare that number to the amount of time you spend open each month. If you have more employees than hours open per month, consider tightening your operating hours or hiring more people to cover those shifts.
Morning Rush
The morning rush is not only the busiest time of day but also the best time to make money. People are out of bed, motivated to get things done, and ready for their first cup of coffee!
Like most things in life, the morning rush has its unique challenges.
For example:
- You might not have a lot of space to prepare food, so you may want to look for ways to streamline your workflow and ensure that no one is standing around waiting for an order.
- You will be dealing with many hungry people who will probably be in a hurry, and some might not pay close attention when they place their orders (which can confuse them).
- Your staff will have less time than usual because they’ll have more customers! You’ll need to ensure they know what they’re doing so they don’t waste time or make drinks too long.
This means more opportunities for you and your employees to interact with new people. It also brings more customers than any other part of the day. Whether you want them as repeat customers or just one-off sales, this is a great chance for any coffeeshop owner who wants to build up a clientele base quickly.
The morning rush is usually between 6 AM and 9 AM. People typically work from 9 AM to 5 PM, so opening any time before 9 AM is the best option. For example, if you decide to open at 10 AM, you’ll miss out on the morning rush. However, if you open at 6 AM or earlier, you can still get some customers before leaving for work.
How to Start a Coffee Shop in Canada
Lunch Time
Lunchtime is one of the busiest times of the day at your coffee shop. If you’re looking for ways to boost sales, consider offering specials and discounts during lunch.
Lunch breaks are usually not more than 30 minutes or an hour, so coffee may be the quickest thing they can grab.
I recommend offering lunch specials that include a drink or dessert. For example, if you sell sandwiches, you could offer a choice between soup or salad as an add-on to any sandwich order. You can also offer a set sandwich meal that includes a drink and dessert on top of the regular price; this will encourage customers to spend more during the busy lunch period.
Even offering pastries by themselves is a great idea so customers can grab and go.
The best hours during this time are from 11 AM to 1 PM. This is when people are in the mood to get their errands done or sit somewhere to relax or socialize. However, some people take their lunch at odd times, so try to accommodate that.
Afternoon slump
The afternoon slump is when people get tired from the day’s activities and are looking forward to going home. This is when they’ll have their second cup of coffee (if they didn’t already), which generally isn’t as strong as the first one. If you’re lucky enough to have customers during this time, they may not be in the best moods or willing to spend much money on your goods and services.
The best hours during this time are from 12 PM to 2 PM. This can be a busy time for businesses that sell food or coffee, especially if you’re located near offices and schools.
5 Pros and Cons of Starting a Coffee Shop
Night Owls
While you may be tempted to open your coffeeshop whenever you want, the hours of operation need to consider your customers’ needs.
If your business is open late, it may be the most lucrative part of your day. The best hours during this time are from 4 PM to 10 PM. People are getting off work and may need an extra kick if they have things to do at home like clean or spend time with family. And believe it or not, people take their work home.
Who is a night owl:
Gamers seek an energy boost late at night. They can be awake for a long time and may not like energy drinks so staying open long enough for them is a great idea.
People with insomnia may need the extra caffeine to stay awake.
Nurses or doctors are creatures of the night and will come in for a cup of coffee or tea before or after their shift ends.
Let’s not forget about college students. They have late nights filled with studying or hanging out with friends. If they lack energy at the end of the day, your coffeeshop can become their go-to.
Considering how many people are awake at night, you can see why it makes sense to remain open at late hours.
Conclusion
In conclusion, the best time to operate a coffeeshop is in the morning and afternoon. You can achieve higher sales during this period due to several factors such as increased customer traffic.
Is A Coffee Shop Profitable In India?
Frequently Asked Questions
You can open a coffeeshop if you don’t know anything about coffee. There are franchises, or you can learn as you go with a mentor. Focus on increasing your knowledge so you can keep up with the competition.
You can make money with a coffeeshop by selling your signature coffee and upselling things like food, desserts, or teas. You can also make money by selling products like shirts or mugs with your logo.
It depends on the size of your shop. To start a small coffee shop, you will need around $80,000 to $300,000. You can even start a small one with less than $50K if you have good equipment and supplies.
To learn more on how to start your own coffee shop checkout my startup documents here
Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.
Hi! I’m Shawn Chun
My adventure in coffee began when I first launched my first coffee shop back in the early 2000s. I had to figure out so many things on my own and to make it worse within 2 years of opening two large corporate coffee chains moved in just blocks away from me!
As I saw smaller and even some larger coffee shops in the neighborhood slowly lose customers to these giant coffee chains and slowly close up shop, I knew that I had to start getting creative…or go out of business.
I (like you may be) knew the coffee industry well. I could make the best latte art around and the foam on my caps was the fluffiest you have ever seen. I even had the best state-of-the-art 2 group digital Nuova Simonelli machine money could buy. But I knew that these things alone would not be enough to lure customers away from the name brand established coffee shops.
Eventually, through lots of trial and error as well as perseverance and creativity I did find a way to not only survive but also thrive in the coffee/espresso industry even while those corporate coffee chains stayed put. During those years I learned to adapt and always faced new challenges. It was not always easy, however, in the end, I was the sole survivor independent coffee shop within a 10-mile radius of my location. Just two corporate coffee chains and I were left after that year. All told the corporate coffee chains took down over 15 small independent coffee shops and kiosks and I was the last one standing and thriving.
Along the years I meet others with the same passion for coffee and I quickly learned that it is not only “how good a barista is” that makes a coffee shop successful, but the business side of coffee as well.
Hence why I started this website you are on now. To provide the tools and resources for up and coming coffee shop owners to gain that vital insight and knowledge on how to start a coffee shop successfully.
Stick around, browse through my helpful blog and resources and enjoy your stay! With lots of LATTE LOVE!
Shawn
