Posted by Jimmy Evans

There are many reasons why coffee shops, cafes and restaurants fail to reach the 12 month milestone in business but the good news is that with a little foresight and planning you can easily avoid closure.

In this video Jimmy here at Artisti Coffee Roasters highlights what he believes are three common reasons coffee shops fail in the first 12 months of operation. His reasons which cause the most trouble are around PLANNING, STAFFING & MARKETING.

If you're looking to go into business for yourself and would like further information on this topic or anything else coffee related be sure to reach out as we are always happy to help.


 Unedited Video Transcript

There's three main reasons why cafes

fail and why your cafe is going to fail
in the first 12 months if you don't get
these things right stick around
i'll talk you through them
hey everyone i'm jimmy welcome back to
the artisti youtube channel where we
talk you through
all things coffee if you haven't
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like this video and hit the bell icon so
you don't miss out on any future
videos now my intro was pretty dramatic
and the point was that we
really don't want to see anyone's
businesses fail in the first 12 months
ever really so we're just trying to help
we just want to be a great source of
information so you can be aware of all
the things that
you need to focus on when setting up or
while also running your business
so i'd say the first reason the cafes
can fail would be poor planning
that can be as simple as just running
through a basic business plan
if you're not a business planning kind
of person maybe there's someone in your
family or someone that can help you or
can hire that help but that's going to
be a huge advantage
that's going to give you the benefits of
budgeting for the cost of staff
your stock and just allowing you to have
an overview of what the realistic costs
any cafe setup can be if anything most
totally underestimate the cost of a cafe
there's a lot involved
depending on doesn't really matter what
size there's actually more costs
involved than people
expect so that i would say always
overestimate your spending
going to any scenario that way you've
got a bit of a buffer there
and that buffer also really needs to
include yourself and your earnings and
what you're
expected to earn and what money you've
got to rely on why you're not
actually making money and you're in a
growth period in the first couple of
months your business
and that can take a lot longer than
people expect so
budget for the unexpected so the second
reason that i see cafes fail
and really struggle is always around
staff staff are the
probably the hardest part that i see in
cafes they can be
they can change constantly you you
really do need to factor in the costs of
finding stuff
and also training staff there's going to
be costs like
uniform how much time is it really
costing you to train that staff member
when they've started their job
or pre to their job so if you're
for someone to walk in the door and
serve the premium especially coffee that
you expect and your customers expect
you really want to run through and have
them set up as quickly as possible we
recently did a video on our onboarding
process for all of our new baristas
check that video out that'll be a big
help to you to speed up that process
because that can be a very costly time
for you out of pocket but also costly
time that your customers might be
affected by that change
there is certain baristas that can enter
into a cafe and they can bring
business with them are you paying for
staff based on their experience and
paying a little bit
more for that particular staff member or
are you having to
outlay expenses on training and
onboarding that cost
that staff member a lot faster because
they are a bit cheaper
so you've got to balance between how
much it's costing you to onboard
train versus just hiring quality staff
straight off the bat and whether you
access to those stuff is a big thing too
those staff members
are coming out of other cafes can you
check their references and see what kind
of customers they might bring
and make sure they've got a good
reputation not a bad one that can be
and you don't want to bring that into
your business and finally
it's got to be your marketing budget
your marketing budget always gets left
it gets left to the last minute or just
not thought of
at all people often don't even put a
budget in for marketing because they
don't really understand that space so
they just think it's something that
they'll get to
social media is a great way to share
people your vision and
to show them what you're doing day to
day but you've still got to build that
i did do a video a while ago that talks
you through making sure that you're
capitalizing on
the different areas of digital marketing
that you can
you can access but that is organic
growth and that is going to take
time and if you're trying to build a
business quick and you really want to
increase your customers and you want to
increase your
income you want to make sure that you've
got at least the free stuff set up and
then look at what opportunities you have
for press
or whether it be paid promotions and
marketing spend that can be as simple
as a flyer a brochure if you've got
staff standing around print a brochure
get them to do a mail drop
making sure that you've got some
promotional material so that people can
walk in the door take a menu home
or do something that's going to get the
word out there faster
the more customers you get the more
money you can make and the more
you can be and the less likely it will
be that your
cafe fails in the next 12 months guys i
hope this video has been heaps of help
for you
i'm happy to answer any questions you've
got to put them in the comments below
um if you haven't already be sure to
like this video
hit the bell icon so you don't miss any
future videos and subscribe because we
our community of coffee makers and
business owners we want to be as helpful
as possible
we'll see you next time cheers bye


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