How to Start & Run a Coffee Bar Volume 1

How to Start & Run a

Coffee Bar VOLUME 1

MAY 2015

www.thecafelife.co.uk

Welcome!

Welcome to this new How to Start and Run a Coffee Bar supplement by Café Culture magazine, launched in time for this year’s popular Caffè Culture show – an event during which many aspiring coffee shop owners are putting together their plans and ideas, and getting creative when it comes to all things coffee-related.

Café Culture magazine’s intention is for this supplement to not only offer helpful advice from the experts to those about to take the plunge, but also provide some insight into who’s doing what and why, in what can only be described as a dynamic coffee sector that the UK has come to know and love.

Clare Benfield - Editor clare@jandmgroup.co.uk

Contents 04-06: New start-up profile - Boo

Boo Coffee.

08-17: Raising finance - banking or crowd-funding?

18-22: Planning permission for coffee

shops - an independent

planning consultant’s view.

23-24: Calculating footfall - top tips.

26-29: So much more than a location -

Café Britannia and Café Relish.

30-32: New start-up profile -

Velo Espresso.

34-36: Coffee shop considerations -

equipment thoughts.

38-41: Choosing a coffee machine -

insider advice.

42-43: Find a supplier.

Editorial Address Café Culture, Association House, 18c Moor Street, Chepstow, Monmouthshire, NP16 5DB, UK. Tel: 01291 636338 Advertising/sales contact: Paul Steer Tel: 01291 636342 E-mail: admin@thecafelife.co.uk www.cafeculturemagazine.co.uk Opinions expressed in Café Culture and its How to Start & Run a Coffee Bar are those of the contributors and not necessarily those of J&M Group Ltd or Café Culture. No responsibility is accepted for the opinions of contributors.

Café Culture is published by J&M Group Ltd. and supports the Café Society. It is circulated to managers, executives, buyers, retailers and traders in the café industry. © 2015 J&M Group Ltd

How to Start & Run a Coffee Bar

3

profile

Boo Boo Coffee When Matt Eagles and his brother-in-law, Keon Heidarinia (left and right, respectively, main picture), were looking for premises to launch their virgin coffee shop venture, only one location would do - the Birmingham suburb of Harborne. Fiona Griffiths found out more...

B

ack home The pair had grown up in Harborne and after a period away, had come back and decided they wanted to bring something new to their local area.

“We’re passionate about our city and having lived away for a number of years, we came back and wanted to invest in the area with something that we had experienced in the various cities we’ve lived in over the years – namely an independent coffee shop that offers great products and a welcoming vibe,” explains Matt Eagles.

“There is definitely a burgeoning coffee scene in Birmingham with some great offerings, but they’re largely based in the city centre. We’re in a leafy, affluent suburb and whilst we wanted to indulge a passion, we also needed to ensure it was commercially viable.”

Matt, who owns and runs a PR company, and

4

Keon, a bricklayer, had no experience of running a coffee shop, but they were confident their passion for coffee and the ideas they’d picked up from frequenting coffee shops over the years would stand them in good stead. They were also convinced that Harborne had the right demographic to support an independent coffee shop.

“We live locally – less than a kilometre to the

shop – so we knew the area well and the average house price, likely spend, and type of customer we could attract if we executed it right,” adds Matt.

Lucky break So when a former fabric and interiors shop just off the main drag in the centre of Harborne came up for sale, it seemed the perfect site for Boo Boo Coffee (the shop takes its name from How to Start & Run a Coffee Bar

profile the nickname for Matt’s daughter). Matt and Keon knew the proprietor who told them he was relocating, so they asked who the landlord was and expressed their interest before the property had even been marketed.

“We just got lucky as we’d seen about five other properties that were on our shortlist but none of them felt right. We weren’t adverse to doing a build job but some were in such a dreadful state they should’ve been condemned, and they wanted so much money for them,” recalls Matt.

So they put in an offer on the fabric shop via the commercial property agent and although a tattoo parlour operator and a hairdresser were also after the same unit, the landlords were won over by Matt and Keon’s obvious passion for their new venture.

“The landlords are a family and we came in with this passion, saying we live locally and we want to create a destination venue and really do something for the local area, and I think they really appreciated what we were trying to do,” reveals Matt.

However, although the unit appeared to be the perfect site for Boo Boo, before signing the lease the pair made sure that they analysed footfall around the How to Start & Run a Coffee Bar

shop and assessed where potential customers might come from.

Footfall “The foot flow is good around the shop,” says Matt. “There is a traffic light for a pedestrian crossing in front of the shop so there is a natural attention drawn to the shop fascia.

“We watched our potential customers over the course of a few days before we signed the lease. We sat out in the cold and counted the numbers of mums with pushchairs and people going to the gym, as well as the number of people going to the adjacent salons and independent shops, and totted it up. Just watching the flow of people and when they were around the area was really valuable as it meant we had a good idea of natural passing trade.

“The nearby high street is quite crowded and pavement space is limited, so we deliberately chose to be off the main path, laid back from the road and with more of an open front and a less cramped feel.

“The gym and swimming baths is glass fronted and right opposite our shop, so our coffee drinkers can watch people working out on the running machines, and vice versa. It means we’re on show all the time which is ideal: we wanted to be in a highly visible area.”

5

profile The premises The shop was a basic rectangle with a suspended ceiling, which Matt and Keon completely stripped out and opened up. They carried out all the work themselves with the help of family and friends, so start-up costs were kept to a minimum.

“We stripped it all back to brick and started again.

Opening up a ceiling that is 25 foot tall gives a great sense of light and space.

We can fit about 28 covers in, and built our counter out of reused scaffolding boards and supports, with exposed lighting to give the place an urban edge,” explains Matt.

“We also fitted a disabled toilet as there is a special needs school and a college very close, so we wanted to ensure we could cater for students from there. We needed enough space for pushchairs to come in and turn around for takeout, and wheelchair access was a must, as was having enough space for a kids’ area.”

Making sure their offer appeals to the diverse range of potential customers on their doorstep – identified during their footfall analysis – has really paid off for Matt and Keon, who opened Boo Boo in April 2014.

“We see a pretty diverse customer breakdown. Being right opposite the swimming baths, people coming in for a pre-workout espresso are

6

a big group, plus we have a growing smoothie crowd who are detoxing or wanting a refreshing drink after a workout,” explains Matt.

“Mums are a key group. They love coming in because of our child friendly area where their kids can play, complete with a blackboard zone. The students from the special needs school across the road, where Keon’s mum works, have been coming in for work experience and have become customers too, and students from the blind school over the other side of the road have also started using us.”

In fact, business has been so good in their first year that Matt and Keon have had to take on more staff, and are already upgrading furniture and equipment in the shop.

“Business has been really strong so far. We’ve grown the team to have three baristas, three waiters and a chef. Financials have been positive, but we’re reinvesting all the money we’ve made so far back into the shop – trying out new things and buying new furniture, chairs and kitchen equipment,” says Matt.

“We wanted to create a space where people felt at home and could interact with each other and our staff on a friendly basis, and we’re told we’ve done this.

We’ve still a long way to go.

to get better and achieve more but it’s a journey.

There’d be no fun if we opened and there weren’t things we needed to change – that’s part of business, getting better and learning every day.”

How to Start & Run a Coffee Bar

Hire who you want

Designed by designship Ulm

The perfect espresso. Handmade automatically.

Introducing the new WMF espresso.

We know many great people out there but only a few well-trained baristas. With the new WMF espresso you can hire anyone to be your Barista. It’s revolutionary technology that grinds and tampers automatically into the portafilter, controls the brewing ratio and temperature. That allows everyone to make a perfect espresso, effortlessly and consistently. Handmade automatically.

For further information: Please phone 01895 816100 or email sales@wmf.uk.com www.wmf-espresso.com

raising �inance

Raising �inance Q

&A (James Cliffe, HSBC UK head of business banking) When should a small business in the drinks industry approach a bank?

The light bulb goes off – you’ve got a concept for a new café in town. Sure, hundreds of cafés already exist in the UK, but you are confident that with the menu you have in mind, the location you have already spotted on the high street, and your work ethic, that you can build a sustainable, strong local business.

Your next step is to put a business plan together. Making a plan is a great way to ensure you have thought about all the various aspects of your business, from being clear about your objectives, your customers, operating aspects and of course, financial projections.

Once you have done your plan and are confident that the business is sustainable, it’s time to think about your banking needs. You will almost certainly need a business bank account to receive and make payments. You may also need to talk to a bank about financing, perhaps for working capital or to purchase assets needed to get the business up and running.

But before walking into your nearest local bank branch, I recommend doing some ‘homework’ first. Look at the different banks and what they have on offer in terms of business banking, and see which one best suits your needs as a business. Are you a brand new start-up looking to set up a simple, cash-based business account?

If so, you could benefit from special offers.

For example, HSBC offers start-ups 18 months of fee-free business banking.

Perhaps you already own a few

8

businesses and are looking for the most competitive rates on the market? Perhaps you just need a bank which has a branch that is near to your future café. Whatever the criteria, it is worthwhile for new businesses to consider the many available options.

One easy way to compare and contrast the different business bank accounts that are available to you is through the Business Banking Association (bba.moneyfacts.co.uk/) or other helpful sites, such Money Super Market (www.moneysupermarket.com/currentaccounts/business-bank-accounts/) and Business Banking insight: www.businessbankinginsight.co.uk/.

C

M

Y

CM

MY

CY

CMY

K

How to Start & Run a Coffee Bar

Untitl

mosst of e th g n i k a m u o y A re your Drinking Chocolate Offer?

With Cadbury there is a great opportunity for outlets to offer a more expansive, premium menu of chocolate beverages.

As the Number One Hot Chocolate brand we’ve developed a range of menu ideas‌to help you drive your sales.

C

M

Y

M

Y

A n d yo u c an s e r ve i t c o ld!

Y

MY

K

erry r ry us Strawbberry o i t p m u r Sc Surprise

Oreo Chocolate Crush

So for a mug full of sales go to www.Cadburydrinks.co.uk or call 08456 038 314 to request fabulous chocolate drink recipes and POS suite!

Untitled-4 1

30/03/2015 13:49

raising finance Once you have made up your mind about the bank that will be best for you, visit your nearest branch armed with the right documentation. This could include your business plan, together with documentation needed to verify your identity, the legal status of your business and the evidence of the source of funds being used to open and operate the account.

How important is it for a small business to build a comprehensive business plan?

Could a bank help with this?

The business plan is your opportunity to tell your bank a comprehensive story about your future or current business, the stage that it is at (is it a start-up, or a few years in?), what your hopes and dreams are for the future, details about your market, and how you will target customers.

In the case of a café, a strong business plan could include a detailed breakdown of your menu, how much you will charge, labour costs, and the rental agreement for the space in which you plan to operate.

The more detail you can provide on these points, the better a bank can understand your business and help you find solutions to either set up shop, acquire a new premise for your café, or establish an overdraft to help your business with cash flow.

HSBC, for instance, has an online business plan tool which can help you put together a compelling business plan (www.knowledge.hsbc.co.uk/business_ plan). This tool can help you ensure that your business plan answers all the questions that a bank will ask of your new business and any loan applications you might make.

We also have some useful informational guides on the different types of funding that small businesses can try to access – and how (such as www.knowledge.hsbc.co.uk/ video/access-to-finance-workshop).

10

Our Knowledge Centre (www.knowledge.hsbc.co.uk/) is also a great starting point when initially drafting your business plan – or when you’re even just thinking of putting together a business.

I encourage any entrepreneurs and would-be business owners to visit such business support sites to learn more. On the other hand, if face-to-face meetings work better for you, the managers in bank branches will always be happy to speak with you about your business plans and how they can possibly help you.

What factors should people consider when putting together their business plan?

A bank will look for several things when reviewing a business plan. Namely: • Does the customer understand the business and the market?

• Do they have the experience and expertise needed to run the business?

• Has the customer performed adequate market research and been able to demonstrate that he or she understands the competition, and has a new or unique product or service that will be in demand?

• Does the business plan include projected cash flows, including breakdowns of various operating costs (such as rents, labour, taxes)?

• Is the customer working with an accountant?

• All of these things can help make a business plan more, or less, compelling.

• Cash flow (it is not well known that businesses get into difficulty because they manage cash poorly. In some cases profitable businesses fail because cash runs out, so how will you manage these risks?)

• Credit rating (most SMEs do not have a clue about how their behaviour affects their credit rating, but it’s something a bank examines closely before making a lending decision).

How to Start & Run a Coffee Bar

raising finance How could someone interested in setting up a coffee shop go about securing finance?

If you have a solid business idea and plan, the best thing to do is look into the various kinds of available funding in the market to determine which is best for you and your business needs.

HSBC, for example, provides free Access to Finance workshops all around the UK to help inform people about the different kinds of available financing, and how to go about trying to secure a loan (simply speak to your nearest branch to find out when the next event will be held. HSBC also has a Guide to Business Borrowing which is designed to help you understand the various funding options available to you: www.business.hsbc.co.uk/1/2/borrowingguide/introduction).

Before you approach your bank with a lending request, carefully consider how

much your business really needs. Banks will lend what they deem is appropriate for your business – that includes both how much your business actually needs to grow or acquire a new premise, for example, and how quickly you will be able to repay the loan. Applying for an overdraft for your business should only be done if you can demonstrate that you actually need one.

Is it a long process? What support would I be likely to receive?

Every application for a loan is different, and therefore the amount of time that it takes to secure a business loan from a bank or other financial organisation will vary. The majority of HSBC small business loan applications, for example, get an answer in 48 hours, and in many cases, on the spot. In fact, we currently approve 84% of all small business loan applications.

Enterprise Investment Scheme Stephen Rapoport, founder of Pact Coffee, accessed R&D tax credits and the Enterprise Investment Scheme (EIS) to help secure investors’ support for his coffee business. “When looking for investors, make sure they understand your vision deeply enough to really, truly challenge you on it. If they don’t, you’re just raising money from them and not getting any other insight beyond that,” he says. “EIS is one of the most valuable things that the government has done to support earlystage, high innovation companies. It’s a tax break that encourages successful people to support other aspirant, successful people and something I suggest every business looks into.”

12

How to Start & Run a Coffee Bar

raising finance

Froth on Top

Froth on Top is a small chain of coffee shops located at train stations across the UK. Founded in 2007 by Rennie Manning, this coffee-onthe-go chain owner first consulted HSBC when it was initially starting up.

“Knowing what first steps to take is the hardest part of starting up your own drinks-based business. We had an idea, but approached HSBC in order to make sure we did things right,” says Rennie Manning. “We visited our local branch and

spoke with a relationship manager there about the idea for our coffee shop model. We had already projected what cash flow would be like, how much we could invest in the business upfront, and asked the relationship manager for advice on how to make our dream a reality.

“Ultimately, after a few conversations we opened our business account with HSBC and also took out a small business loan to help us acquire the right equipment that we needed for our coffee shop. The bank also offered us an overdraft line worth £10,000. We could count on this to help us with any cash flow problems – such as when we have less commuters (and therefore fewer

coffee-drinkers) because of the summer holidays, for example.”

Rennie Manning and his partners credit ample market research with paving the way for the success of their chain, which saw turnover of about £450,000 within a few years’ time.

“It’s about knowing your customers, your competitors, and offering something different or new,” adds Rennie Manning.

Today, Froth on Top has now expanded into a chain of coffee shops.

More recently, Rennie Manning and his team have also started to open traditional English tea rooms thanks to additional financing in the form of an EFG-backed loan from HSBC.

Find a supplier (continued page 44) T +44(0)117 317 8600 E contactus@planglow.com W www.planglow.com

Enhance the image of your coffee bar’s grab & go

How to Start & Run a Coffee Bar

13

Proje

raising finance

Help from the crowd F

ar from being a last resort for businesses, investment crowd-funding is now a well-established way of turning plans to launch or expand a business into reality, argues Luke Lang (pictured), co-founder of investment crowd-funding platform Crowdcube.

An alternative With banks, venture capitalists and angels reticent about lending or investing, particularly when it comes to start-ups, the approach provides an alternative way of raising capital, while at the same time building relationships with existing and future customers.

With crowd-funding, investors are able to use online platforms to browse investment opportunities from a diverse range of businesses of varying stages, and select those they want to back. The investor profile on these platforms tends to be very diverse – more so than with traditional investments – and people are often keen to back businesses they find unique and interesting, have growth aspirations, and share their own values.

14

For equity crowd-funding, investors receive shares in the business in return for their investment. On Crowdcube, for example, our investor community can invest anything from £10 to over £100,000 (although the average amount invested is around £2,500). While investments of this nature offer potential rewards there is of course an element of risk, as with any form of investment.

A breath of fresh air Since we launched in 2011, eight restaurant and café businesses have successfully reached their funding target on

Crowdcube – sometimes coming back for a second helping – raising more than £7.5million between them.

The entrepreneurs behind the businesses often tell us that the crowd-funding approach has been a ‘breath of fresh air’ for them. They like the flexibility, simplicity and speed of the process compared with traditional routes to finance, and the control they have over their own fundraising process.

Cafés and coffee shops need to be able to get a high number of customers through the door every day, and taking an innovative approach to raising finance can help an independent coffee bar attract potential customers as well as investors.

When it comes to building a loyal base of customers who’ll keep visiting day after day – and bring their friends along, too! – the crowd-funding process allows businesses to build more direct, personal relationships with supporters. As well as potentially profiting from its success, investors are often keen to be a part of the company’s journey, and many are willing to get

How to Start & Run a Coffee Bar

Project1_Layout 1 19/02/2015 16:18 Page 1

Serve award-winning, top quality hot chocolate. Each cup contains 40g of premium single-origin chocolate flakes

DE WITH FL MA

ES AK

MIL DARK, WHIT K VA E OR RIET IES A E OF

RE

Try our range of flavour syrups, developed to perfectly complement hot chocolate

LC T HOCOLA

ALL NATURAL FL AV OURS

REQUEST A CATALOGUE

(01279) 714527 • sales@marimbaworld.com • www.marimbaworld.com

raising finance involved by sharing any relevant knowledge and contacts they have, for example.

Mini bonds: ready to grow There’s another type of crowd-funded finance available for more established businesses who

Baristas, for instance, raised money using a Crowdcube Mini-Bond earlier this year.

It beat its £1.5m target, finally raising over £1.8m and attracting more than 490 investors from its own customers as well as Crowdcube’s investor community.

in surveys of the country’s best coffee shops.

Taylor St plans to use the funds it raised to double the size of its business in the next two years, and expand its barista training programme which is key to differentiating its cafés from the scores of neighbouring

may not want to go down the shareholder for equity route, called mini-bonds.

Mini-bonds enable businesses to go directly to their customers and private investors to borrow money in return for attractive fixed interest rates, and rewards such as vouchers, events and free coffee.

London-based speciality coffee chain Taylor St

Established in 2006, Taylor St now has nine shops in locations including City, Mayfair, Canary Wharf and Brighton. The business was founded by Australian siblings Nick, Andrew and Laura Tolley at a time when there were few quality coffee shops in London.

They’ve helped blaze a trail for speciality coffee in the capital, regularly featuring

competitors. The owners also plan to extend the brand through sales of Taylor St-branded coffee and merchandise in-store and online.

16

Putting together a perfect pitch If you’re considering raising finance through crowdfunding, it’s important to recognise that investors How to Start & Run a Coffee Bar

raising �inance want to see something that sparks their enthusiasm.

Show you have a great idea with clear market potential, and a strong team behind you.

Outline what makes the business unique. Tell them your own story – your history and expertise, why you’ve decided to open a coffee bar, and what excites you about your business.

We’ve found that people are more likely to invest in a business if the proposition is something they’re already passionate about or if it’s just too interesting or compelling to ignore.

You also need to take care of ‘due diligence’, providing detailed business plans and financial forecasts. The pitch must be clear, and not misleading in any way. Don’t be over-ambitious with your target or put people off by overvaluing your business.

How to Start & Run a Coffee Bar

Ask for only the amount you need, and explain why you need it and exactly how you’ll spend it. Explain your strategy for growth, and prove that the business is scalable. Investors will want to know about the potential for return on their investment, so it’s essential that you can outline how and when that could happen.

Invite potential investors to contact you directly with questions, and consider having face-to-face meetings where people can meet your team, network with each other, and also taste your coffee! This will build relationships, and could well turn interest into investment.

Register your company with Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS). This will give equity investors substantial tax breaks and make your

pitch very attractive (SEIS offers up to 50% back, while EIS could give 30% back).

Finally, keep your investors and pitch followers up-to-date with your progress by publishing and sending regular news updates. Compared to those who participate in other forms of investment, investors in ‘the crowd’ tend to be much closer to the businesses they support, so they’ll love being kept in the loop.

If you decide to take the crowd-funding route to launch your coffee bar – and you have a really strong proposition for investors, and are willing to put in the necessary legwork – you can expect to gain much more than the finance you need.

You’ll be creating a buzz around your business and, most importantly of all, a loyal base of ‘fans’ who love your coffee and your brand.

17

planning permission

Planning permission for coffee shops There’s plenty to think about if you’re planning to open a coffee shop, and making sure you’ve got the right permissions in place is not always straightforward, warns Chris Green.

The need for planning permission There has been a longstanding confusion over the treatment of coffee shops in the planning system, but there have been some important changes in planning law recently that may make life a little easier.

However, there are some limits that you’ll need to be aware of, and we take a look at these below.

Past confusion has largely been a result of the rather rigid ‘use classes system’.

If you are only selling food and drink to take away, you will be treated as a ‘shop’ falling under Use Class A1 ‘Shops’ and consequently, you would not need planning permission to use an existing shop as a coffee shop. However, where customers will also consume their purchases within the premises, you may be classified under Use Class

18

A3 ‘restaurants and cafés’ and planning permission would have been required.

Coffee shops are normally a mixture of the two, and the planning system has always struggled to get to grips with this.

Thankfully though, the government has recently published some significant changes to ‘permitted development rights’ that might make things a little easier. These allow certain forms of development to take place without the need for planning permission, and the changes mean that from 15 April 2015, planning permission will not always be needed to change from a shop (Use Class A1), to a restaurant or café (Use Class A3). The new legislation will also apply to buildings currently occupied under Use Class A2 ‘Financial and Professional Services’ (such as a bank, building society

or estate agent), so they can also be used under Use Class A3.

Importantly, the legislation will also allow for the installation of ventilation and extraction (including external flues), as well as buildings needed for the storage of rubbish.

This is great news for those looking to open coffee shops or restaurants, and should make it much easier to take premises in high streets. However, there are some significant restrictions that will limit the benefits in the real world.

Limitations Firstly, the permitted developments rights will only apply where the change of use covers a floor space of 150 square metres or less.

So if you’re taking premises that are larger than this, then planning permission may still be needed.

How to Start & Run a Coffee Bar

hut

hutamaki_a5_ad.indd 1

30/03/2015 14:00

planning permission In addition, the permitted development rights will not apply if the unit is within a listed building.

There are other restrictions that may apply in some circumstances, and it is possible that the council may have imposed specific restrictions or conditions on a unit in the past to prevent changes of use. It is worth checking these carefully with your local council or by seeking professional help to be absolutely certain.

You may still need ‘Prior Approval’ Secondly, while the new legislation does in theory allow the change of use to take place, you will need to notify your local planning authority…and they could decide that their consent is still required after all. This process is referred to as ‘prior approval’.

You will need to apply to the council and tell them what you are proposing to do, providing them with plans of the proposals including any extraction or ventilation equipment as well as rubbish storage.

The council will then decide whether their ‘prior approval’ is needed. In reaching their decision, they will be able to take account of factors such as: • The noise impacts of development • Odour impacts • Impacts from the storage

20

Chris Green is a Director at Town Planning Services.

He has over sixteen years experience as an independent planning consultant, with particular knowledge of retail and leisure proposals. His experience including restaurants, ‘drive thru’ proposals, retail parks, foodstores, hotels and conference centres. He acts on behalf of coffee shop operators and has advised major retailers as well as developers and landowners.

and handling of waste • Impact of opening hours • Transport and highway impacts • The siting and design of extraction and ventilation equipment etc Of particular importance, the council will also be able to consider whether the change of use would “undesirable” because of its effect: • The adequate provision of shops or services in the area; or • The effect on the sustainability of a key shopping area

demanding that their ‘prior approval’ is needed and subsequently refuse it.

This is perhaps the most important limitation of the legislation, and could mean that in reality, there is little change in some places.

The effect of the new legislation The government’s changes to permitted development rights are the latest in a series of amendments that have promoted a more flexible approach to changes of use across our high streets. This is to be encouraged, and while in the past, the changes have This does of course mean offered little benefit to those that those councils that have in the coffee shop and strongly resisted changes restaurant sectors, it is good of use and the ‘loss of to see that they are now shops’ can still be difficult, being embraced to a much

How to Start & Run a Coffee Bar

kni

The stages and advantages of acquiring an existing business Many would be business owners who aspire to own and run their own cafe or coffee bar are now considering embarking upon the route of purchasing an existing business rather than establishing a new one from the ground up.

Starting a business from scratch can be a lengthy, complicated and expensive process. Establishing a customer base, procuring finance, recruiting a new staff base and acquiring all of the relevant equipment are just some of challenges that you will face on a lengthy road to seeing the financial rewards.

Although it will usually require an initial lump sum, an existing business is more likely to have established itself within its market and area as well as already having an existing team of staff which will provide you with a head start to hit the ground running from the off.

The first thing to consider when purchasing a business is the costs and your own budget. The initial costs may seem steep and overwhelming to a first time buyer, but it is worth noting that banks may be more likely to grant a loan to facilitate the purchase of an established business than they are to a start-up.

The next stage will be to consider where you are going to find a business for sale. You may think that it is much easier to find a business independently through classified adverts in a newspaper or a for sale board outside a premises from a local property agent. However finding a business through a trusted business sales broker will provide you with a wide range of opportunities that are available, giving you the option to compare several business and choose the right one for you in terms of costs, location and a number of other variables.

A trusted business sales broker will also provide invaluable assistance during what can be a daunting process. They will ensure that the sale is as uncomplicated as possible and can advise potential buyers on aspects of how to buy a business such as the legal process.

A start-up business will involve recruiting a new team of employees (the costs of which the owner will forgo) as well as developing a customer base and establishing a reputation within the local area. It is likely that an established business will have this in place, allowing the new owner to build on this credibility and further increase its customer numbers.

Purchasing an existing business will also avoid various other costs such as stock and equipment, both of which an existing business is likely to have already procured and is typically negotiated as part of the sale transaction.

For more advice on purchasing your own business, and to view current businesses for sale, contact Knightsbridge Business Sales on 0844 38 77 339 or by email at: buy@knightsbridgeplc.com Visit our website: www.knightsbridgeplc.com

knightsbridge_full_page_ad.indd 1

13/04/2015 14:29

planning permission greater extent than they ever have been.

However, while the new legislation might at first appear to answer all our problems, the ‘prior approval’ process is a considerable limitation, and simply means that those authorities that have resisted such changes of use in the past can continue to do so. That said, the changes to the law send out a very clear message that coffee shops and restaurants should be welcomed in the heart of our town centres and high streets.

If you are intending to sell alcoholic drinks, a personal licence and a premises licence will be required. Be aware that if you plan to sell alcohol, the planning authority is more likely to view your proposals as a ‘restaurant’ or ‘cafe’ category under Use Class Other things to think about A3. Such premises would As well as thinking about the typically be open later in the evening and customers ‘change of use’, be aware would tend to stay longer. that you may also need As a consequence, they planning permission for other alterations and works, usually have a different character when compared such as alterations to the to most coffee shops, shop front.

Internal works will require and this may change the Building Regulations and an planning authority’s view architect will be able to help of your proposals. For here. Be mindful that if it’s a example, issues such as the impact on amenity may be listed building, then Listed Building Consent might also raised. be needed.

Timescales You may be thinking One of the biggest problems about outdoor seating. can be the timescales This can require both associated with the planning planning permission and a process. The prior approval license from the highway process will take up to 56 authority. Applications for days, and where needed an outdoor seating can often application for a change of be problematic, especially use will take two months to where there is restricted determine. You may wish to space for pedestrians to secure the permission before pass.

22

you complete a lease. Then you’re sure that you can use the premises lawfully and minimise your risks. But the landlord may put you under pressure to exchange contracts, especially in popular locations where other parties are interested.

An ‘agreement to lease’ subject to planning may be appropriate and give some comfort to all parties.

Getting help The planning system is far from simple when it comes to coffee shops and it can be very difficult to get clear and consistent advice. In my experience, different councils take very different approaches, and it is important to discuss proposals with the local authority before applying.

Clearly explain your proposal, being honest about what you want to do - if you only tell them what you think they want to hear, you can come unstuck later and find your permission doesn’t allow you to operate your business in the way you need.

But don’t always take their advice as gospel - the planning authority may not always suggest the most commercial route, and their responses can often be extremely cautious. If initial discussions raise more queries, it could be time to seek specialist advice from a planning consultant.

How to Start & Run a Coffee Bar

footfall

Calculating footfall When thinking about setting up your dream café or coffee shop business, being able to accurately predict the footfall of the location you have in mind will go a very long way towards enabling you to decide whether or not your site is potentially viable.

Footfall assessment Footfall figures provide insight into the number of pedestrians who actually pass through a certain area – namely, the site of your proposed café or coffee shop.

These people could be regional shoppers, pedestrians who walk up a certain high street every day, or the simply the number of people who visit a specific shopping mall.

Needless to say, the more people who are in, or who visit, the area, the more passing trade there is likely to be for the local retailers located there. This, in turn, means that a street or area with a high footfall figure is likely to be the most lucrative to most local retailers, and not least a new business aiming to make a profitable start.

It is also important to consider changes and trends in footfall figures, as this will help you to work out when your seasonal peaks and troughs will be. For example, footfall almost always rises during the Christmas shopping season, but often tails off during the first few months of the year.

Having such information to hand before you take the plunge and start your business will enable you to plan your cashflow for the year in advance, and so let you be in a position to work out how much you need to save when times are leaner. Alternatively, it may well prompt you into coming up with some innovative ideas for your café to still be able ‘draw the crowds’ when your immediate vicinity is quieter.

How to Start & Run a Coffee Bar

Predicting footfall figures The British Retail Consortium (BRC) publishes a monthly Retail Sales Monitor which includes footfall figures, but for figures more specific to your location, it may be helpful to contact your local Regional Development Agency (RDA), Chambers of Commerce or trade association (your local council might also be able to point you in the direction of some reliable figures).

At the very least, you should, from personal knowledge and the building up of additional local knowledge about the specific site and area you plan to open in, be able to get a feel for who lives and works there - the volume of people who typically go past the site at various times of the day, whether they are young or old, office

23

footfall workers or local residents. These people are all your potential customers.

Having an idea of how footfall is likely to vary across different times of the day, week, and even months and seasons, can be very informative to a new business start-up, and costs very little to find out about, other than your time and some keen observation. Do not assume what you have been told about a site, but rather take time out to carry out your own research. It will pay off in the long run.

Footfall will impact upon many aspects of your business from the peaks and troughs in your cashflow to your pricing policies and tailored promotions, so it’s important that you have a built up a detailed knowledge of your local area and potential customer base.

Local newspapers frequently publish information regarding trading conditions, so why not take out a subscription to your local rag for statistics on footfall as well as what the demographics are like in the area you’re planning to set up shop in?

While it’s unrealistic to expect to make a sale to every person who ever passes your proposed site, you can use footfall figures to estimate the number of sales you might make using local demographics to help.

The presence of local offices would tend to indicate demand for take-away coffees and meals, for example, whereas an affluent, residential area could suggest families looking for somewhere to a take break for a treat.

FOOTFALL RESOURCES • The British Retail Consortium (BRC).

• All the Regional Development Agencies (RDAs) in the UK. • The British Chambers of Commerce (BCC).

• Directory of UK local councils.

24

Professional Outstanding

The new Monte Carlo, engineering for espresso For more information or to find out where you can see our next demonstration, please email info@conti-espresso.co.uk or visit our website www.conti-espresso.co.uk

01763 249 398 CONTI-Espresso UK, Unit 7, The Quadrant, Newark Close, Royston SG8 5HL

How to Start & Run a Coffee Bar

Coffix Ltd is an independent engineering company that works with the UK’s leading coffee machine manufactures and hot beverage suppliers to provide a professional and friendly all round equipment supply and repair service.

Bean there, fixed that!

The perfect coffee machine is a vital ingredient for fuelling your business. Coffix Ltd liaise directly with manufactures to supply solutions that suit your individual needs, at the best price. We also have a range of reconditioned machines in stock, and can provide barista training with the equipment you choose.

Coffix engineers are available for emergency repairs, services, boiler inspection attendance and reconditioning for a wide variety of traditional barista machines and bean to cup machines, on location, or in our centrally located workshop. Our network of service partners enables us to provide nationwide coverage. For a full list of equipment and areas covered, just check our website!

With over 12 year’s experience, our slogan, “Bean there, fixed that!” describes Coffix to a tee. Our engineers have repaired countless coffee machines and diagnosed a variety of faults in thousands of venues across the UK – and repaired every single one.

For a FREE quote and advice

call now on 01530 242800 Web : www.coffix.com Email : info@coffix.com

pro�ile

So much more than a location Here, Davina Tanner OBE (main picture, co-founder of Norwich social enterprise and shabby chic Café Britannia) and Hugo Hercod (co-founder of Relish Café in Cornwall) share some insight into what’s required in addition to a good location for new coffee shop businesses to launch successfully, and thrive.

L

ocation, location, location... So important, they always say it three times! When it comes to opening a café, location is a factor which can make or break any business and it’s always been that way. Getting the location in itself right is crucial, but I’m not just talking about securing a spot on the high street. There are so many other factors associated with location which are key to making a success of a café business.

Footfall and passing traffic can help to secure a steady stream of customers but I’m a firm believer that if you offer a great product and your marketing is right, people will come to you. Café Britannia isn’t based in the heart of Norwich city centre,

26

but it’s our reputation and advertising and PR activity, which have helped to earn us regular customers and new ones coming in all the time.

Providing good parking – or being near to it – is a key thing to consider for any potential site. You want your customers to know they can take a while to enjoy their coffee or sandwich and always have time for cake or dessert without having to clock watch or keep their eyes peeled for traffic wardens! Parking doesn’t necessarily have to be free either. It might help, but there are other options to consider such as being able to validate parking tickets or offering discounts on parking for café purchases, How to Start & Run a Coffee Bar

pro�ile which can be a good marketing opportunity too.

In terms of size, unless you’re opting for just a takeaway, I would always go for premises which are over 500 square feet.

Although you can be very clever with interior design, space is key to creating the right atmosphere and also ensuring you have the right equipment in situ to be able to service your customers. Also be aware of hidden costs such as asbestos, which can add a huge chunk of time and money onto your project.

If you’re keen to attract lots of summer trade, room for outdoor seating is essential.

We’re very fortunate that Café Britannia has this and a stunning view over Norwich to boot. I think this is one of the things that attracts customers to us, even though we are not in a central location.

Don’t forget to consider planning permission. Some premises may already have the correct status but others may not and would require you to go through a change of use to gain A3 status. Take some advice on planning before you commit as it can be lengthy and costly to get sorted out, before you can even start thinking about the rest of the work needed on the site.

The environment you create inside your café is vital. When putting together Café Britannia, I wanted to create a very relaxed, welcoming atmosphere. Shows like The Great British Bake Off have done wonders for baking and I knew there was an opportunity to tap into this rekindled love of cake and tea rooms but in a contemporary coffee bar way. I also thought it was important to create an environment where people could meet friends, family and colleagues or just come and enjoy a cuppa on their own without feeling awkward or pressured to ‘drink up and go.’

We always have nice magazines and newspapers in too as well as comfy chairs and cushions for a more homely feel. Do your homework and get to as many chain How to Start & Run a Coffee Bar

Café Britannia (Davina Tanner) Based at the former Britannia Barracks with spectacular views over Norwich, Café Britannia is a social enterprise, shabby chic cafe offering freshly cooked British cuisine. Open seven days a week, the café is staffed by category D low risk prisoners that have volunteered to learn new skills, improve their lives and make a fresh start. All tips and profits generated from the café go to rehabilitating prisoners and charitable causes.

and independent cafés as you can in a variety of locations. Take away ideas on the things that you love and think work well – as well as making note of the areas you would change.

I was lucky enough to have my own team to do the works in the café – almost all of whom came from Norwich Prison – so we were able to get the interior fixed up and how we wanted it within quite tight timeframes and keeping costs to a minimum (although the prisoners were still serving sentences, I still had to pay their weekly allowances).

As a former officers’ mess, the premises had a kitchen in it so we were able to utilise a lot of the equipment which was already

27

pro�ile there. I’d fixed up houses before so I used my experience and eye for detail to get the décor as I wanted it and sourced all the furniture and finishing touches from auctions and eBay. We did the whole lot in six months and for £30,000.

It’s a bit of a cliché, but it’s also important to have a good feeling about the premises

and I’m a firm believer that you will know when you have found the right ones for your business. Do your homework and draw up a list of the essentials before you start looking at premises. Figure out what you could compromise on and what would compromise your business if you went without.

Relish Café (Hugo Hercod) Hugo Hercod, co-founder of Relish Café and Delicatessen in Cornwall, will be a speaker at this year’s Caffè Culture Show (London Olympia, 13-14 May 2015).

I don’t understand the complexity of international politics, I’ve also never got to grips with electricity, but I do understand how children behave in a playground and how hot water behaves in a central heating system! If I’m struggling to understand something, I like to think of it in terms I do

28

understand. International politics is like a playground, electricity a bit like plumbing.

It’s never a perfect analogy but it beats actually learning about it and from time to time gives you a really quirky angle on stuff.

I do the same with my business. I don’t actually understand how it works so I

How to Start & Run a Coffee Bar

pro�ile imagine it as a living, breathing… ‘thing’.

All living things exist in an ecosystem, they are sustained and they in turn sustain.

They grow fat, they grow lean, they suffer disease, they’re a victim of their environment and they always, eventually, die. While they’re alive they’re in constant competition with one another and they exist in a very specific form because they have evolved that way. So I’ve got a coffee shop and delicatessen called Relish Food & Drink, it’s in a market town called Wadebridge in North Cornwall. Set around two sides of a quaint old foundry courtyard, it’s just off the main pedestrianised shopping area in a spot that looks just like the sort of place you would find a great cafè and deli.

It didn’t get there by accident. Before we opened, we hunted from Cornwall to the Cotswolds, coast to coast and in cities, towns, villages and on beaches. We had designed our ‘thing’ very carefully, and if we planted it in the right place there was a better chance it would survive and thrive.

When a species finds a niche and exploits it, it multiplies. In the case of the speciality coffee shop, it couldn’t be truer.

As customers have tired of the fast food grade offerings of the high street chains, so the number of independent coffee shops in every town has multiplied. This has been exacerbated by the demise of the traditional high street, lots of empty premises and a surplus of people drawn to being their own boss.

Wadebridge is no exception. On top of a baffling number of hairdressers we now have an equally absurd number of coffee shops. The problem is because there are so many, they’re not all surviving. Why not?

Because either they opened the wrong thing in the wrong place or they didn’t evolve.

So how has Relish survived? How have we coped with the upsurge in competition, the increasingly crowded ecosystem? For starters, we were a partnership with years

29

How to Start & Run a Coffee Bar

of experience in the catering and hospitality trade. From the moment we opened the doors we knew all our assumptions about our customers, environment and suppliers would be challenged and we would have to change, adapt and evolve to stay ahead.

Before we opened in 2006, I entered barista competitions and learnt how to make really, really good coffee. This set Relish apart immediately - it was the best coffee in Wadebridge. Within two years I’d won the UK Barista Championships which established us as the best place for coffee in Cornwall. Without a single visit from a journalist we found ourselves listed in the national press as one of the best cafés in the country. Nice.

We made everything fresh, ourselves, from real ingredients. In a town full of packet openers and microwave button pressers we stood out a mile. We used deli quality ingredients in much of our food and customers noticed. We also did customer service properly, something the UK can be pretty average at.

So, it worked and we got busy, and then we got too busy. We were turning away customers because we didn’t have enough tables and we couldn’t service them fast enough. So what did we do? We evolved.

We sacked our worst customers, the ‘just a coffee’ table-hoggers. We put our prices up. We added 40% more seats between the courtyard and delicatessen. When the coffee couldn’t keep up, we bought the fastest grinder we could afford and trained more baristas, and when the waiting staff couldn’t keep up, we spent a fortune on a till system that nearly broke the bank. And then things got quieter, so we let dogs in, offered free WiFi, changed the menu and opened more days a week and now we’re open evenings. In the next few months I’m planning on filling a space in the deli with a coffee roaster. Why not? What I’m not planning on doing is sitting still, if I did Relish would likely die.

29

profile

Velo Espresso For Neil Lee, finding a suitable site to open his first ever coffee shop business wasn’t just about good footfall, but good pedal pull as well. That’s because Neil’s vision was to open a cycling-themed coffee shop combined with a cycling accessories boutique, as Fiona Griffiths found out...

Following a dream “I had always wanted my own coffee shop, and have a passion for cycling, both track and road. I also enjoy watching the cycling events on TV,” says Neil Lee. “So I was looking around for premises for a cycling shop, and I started to get the idea of combining cycling and coffee together as both sectors have been showing large growth over recent years.

After all, as every cyclist knows, the first thing you plan on your journey is where to have coffee and cake!”

30

Neil Lee, who quit his job in field sales in 2013 to follow his dream, wanted to stay around the Greater Manchester area too, so he contacted British Cycling and Greater Manchester Transport to ask for some initial help and advice.

“Greater Manchester Transport were going to assist me at one stage with finding a property as long as it was on one of the new Velocity 2025 cycling routes out of Manchester – within 10 years we will have a full cycle path network linking the city centre with the suburbs. However, Greater How to Start & Run a Coffee Bar

profile Manchester Transport were too slow and a lot of the recommended sites they came up with were already taken when I enquired with landlords,” recalls Neil Lee. So he started looking himself at the towns located on the Velocity 25 network, and the commuter town of Altrincham particularly stood out.

“I could see that a lot of money was being invested in Altrincham and many of the buildings were being refurbished – it was getting its buzz back. I spoke to a lot of shopkeepers in the town and I got the feeling it was entering a good period,” explains Neil Lee. What’s more, there was a new ‘cycle hub’ being built at the back of Altrincham’s tram and train station: a glass domed cycle store where people could pay a small yearly membership fee to park their bikes securely. It just so happened that a stone’s throw from this cycle storage facility was How to Start & Run a Coffee Bar

an empty shop unit in one of the town’s oldest and most prominent buildings, Stamford House.

The right location The building, which dates back to 1905, had just gone through a two-year refurbishment project to restore it to its former glory, with the offices on the top floor having been turned into apartments and nine shop units created on the ground floor.

Some of the units were already occupied by the likes of a health food shop, a florist and a hairdresser, but there was an empty one which Neil Lee felt would be perfect for his new venture. To be sure, together with wife Marie, he started analysing footfall by standing outside the unit at various times and days of the week to count people traffic.

“We spent a good amount of time standing out in the cold counting how many people passed by during the morning rush hour and on Saturdays and Sundays.

We counted an average of 200 people passing in a 10-minute period, with many people accessing the train or tram station or visiting Tesco who offer free three-hour parking,” recalls Neil Lee. “I also approached Costa and Caffè Nero, pretending I was an independent surveyor to ask how many coffees they would sell a day. Another one of the other things I liked about Altrincham was that there wasn’t a really decent independent coffee shop there.”

Neil Lee already had some money of his own to put into the project, but not enough, so he approached business startup and growth support organisation Blue Orchid, who helped him tweak his business plan and secure a £19,000 loan from the government’s Start Up Now programme.

The owners of Stamford House were impressed by Neil Lee’s business plan, and although there was some competition for

31

profile the unit, he ultimately won the race.

“We spent a lot of time writing our business plan, explaining the reasons why we thought the idea would work. There was a juice bar operator after the same unit but I submitted our business plan to the landlord and they liked the concept of what we were going to do and the design for the interior,” says Neil Lee. “I think that would be my biggest piece of advice for anyone wanting to do this: choosing the right location is vital and you need to check out your competition and offer quality products, but most of all a rock solid business plan is key.”

“There was an 88% rise in people commuting by bike in Manchester last year and this seems set to increase even further.

Velo Espresso is well placed to meet this growing demand but ultimately we want to be a destination where cyclists and noncyclists alike can relax over a coffee, enjoy a healthy lunch, find out about cycling events locally or just chill and watch one of the classic races to be shown on TV this year,” says Neil Lee. “In the short period of time we’ve been open we’ve had a high percentage of everyday customers, but as the cycling season is starting we’re seeing more

Opening So in December 2014 Velo Espresso opened its doors, offering a 25-seater artisan coffee shop on the ground floor and a cycling boutique in the basement.

The coffee shop is decked out with reclaimed materials and cycling memorabilia including cycle art, photos, cycle frames on the walls and a display of hand-built bikes from top British manufacturers.

cyclists visit us. We’ve joined the cycle hub scheme so if we get a group of 10 cyclists coming in for coffee and cake and their first question is ‘where can we park our bikes?’ we can give them our swipe card and they can park them securely in there.

“The feedback we’ve had so far is all positive, with many people commenting on our fantastic sandwiches and wonderful light Japanese cakes, and many saying we serve the best coffee in Altrincham!”

32

How to Start & Run a Coffee Bar

equipment

Coffee shop considerations Starting a new coffee business is a very exciting and busy time, but there are also lots of fundamental decisions to be taken before you can go too far down the road of deciding what exactly what type of coffee machine will suit, as Mark Harrison (managing director of coffee and coffee machine supplier, Verde Coffee), outlines here.

Hot water supply It’s well worth taking the time to think through all the options and how you envisage your coffee service will work. This goes beyond simply deciding which style of machine to choose. You must also think about menu choices, service and support and staff training.

Although hot water is available from espresso machines, if you plan to use lots of it for pots or large cups of tea, you will impair the performance of most espresso machines during busy times (this is because a coffee machine needs to stay at

34

optimum temperature to ensure the group head and water temperature at point of infusion stays at 92-93°C).

A single serving of coffee is made from only around one fluid ounce of water, allowing the machine to remain stable during slow and busy times. Taking out lots of hot water for tea, however, means replacing it with cooler water which has two main effects - espresso coffee being under extracted (weak and poor flavour) and reduced steam availability for milk.

Therefore, it is highly advisable to consider a separate water boiler if tea or How to Start & Run a Coffee Bar

equipment large volumes of hot water will be required.

Automatic or semi-automatic?

Semi-automatic traditional espresso machines are often preferred by experienced baristas who like to have complete control over every coffee they create. In simple terms, to make a coffee you turn the group switch on until the desired quantity of espresso has been expressed, then you turn the switch off.

With an automatic machine, there are buttons which electronically control the amount of water pushed through the coffee, with options typically including single espresso, single ristretto, double espresso, double ristretto and continuous coffee (similar in operation to the semiautomatic switch).

If using an automatic coffee machine to make a single shot of espresso for cappuccino, for example, simply press the single espresso button and let the electronics do the rest, leaving the barista to continue with preparing the milk.

In today’s fast service environment, automatic espresso machines certainly offer a quick, efficient and accurate production of coffee, but it is the style and nature of your outlet and its beverage offering, together with the barista skills you have to hand that will ultimately influence your decision-making process.

Space Consider where you wish to locate your machine. I would recommend where possible positioning the machine to face your customers as they approach the buying position. This helps sell coffee as well as promote the high standard of everything else you offer.

Keep in mind that it may be worth altering the space you have to ensure the machine you decide on is the best to suit your business. There are commercial espresso machines on the market which are ergonomically designed to fit into tight How to Start & Run a Coffee Bar

work spaces, so this could be a good option if you are short on space.

Capsules or coffee beans?

You may already have a particular coffee blend in mind, but it’s worth considering whether you would like to use coffee beans or capsules, or a mixture of both, as this will also influence your choice of machine.

Whereas coffee capsules are a luxury item for the at home market, for the foodservice market they represent an opportunity to increase sales by offering a wider range of coffee blends.

Consumers are becoming ever more accustomed to quality coffee and this means being able to offer a blend to cut through milk in cappuccinos and lattes as well as a blend that produces a robust espresso or Americano. Coffee capsules, for example, will potentially allow you to offer a wider choice of coffee blends, as well as decaffeinated options, more easily.

Coffee capsules are also compatible with most traditional espresso machines (all the user has to do is insert a capsule converter basket into the espresso machine handle, insert a capsule and then use the handle in the usual way).

In my opinion, capsules perform best on machines with a 24v vibration pump, so if you know you only want to use coffee capsules this type of machine would be best (if you want to switch between capsules and beans, however, a rotary pump espresso machine would be the best choice in my opinion).

Staff training Will you be training staff to produce barista quality coffee, or would you prefer something more automated? This is an important consideration and there are options available for both choices. You can buy the best espresso machine on the market, but if it’s not used and maintained correctly you will have the worst coffee.

35

equipment If you would like to train your staff to create barista standard coffee, then a traditional espresso machine is best for you. However, it’s very important that your staff are then properly trained to use it and get the best espresso from it. So make sure you choose a supplier that provides barista training as well as installation (the option of refresher training is always a good idea as well).

If you would prefer something more automated – or are likely to experience high staff turnover - then a bean to cup machine could well work best for you.

This is where the grinding, brewing and milk preparation all takes place within

and ensuring your machine comes with a comprehensive support package. We recommend you find a supplier that has their own service team and specialise in your brand of machine; some companies use external service teams which may mean waiting longer for your machine to be repaired or serviced as they do not stock and carry all the spare parts required for your espresso machine brand.

the machine, so all your staff have to do is press a button! There are some excellent models of bean to cup machine on the market and many can make a wide selection of different drinks, using fresh milk and coffee beans.

There are currently a number of different options on the market such as leasepurchase (where you pay instalments for the machine over a number or years and at the end of the agreement you own the machine), rental (where you never own the machine and pay for the use of it) and freeon-loan (where you buy the coffee and can use the machine for free - similar to renting in that you don’t ever own the machine.

Keeping all of these considerations in mind will help you make a successful start in the coffee shop business.

Service and support Your coffee machine is the lifeblood of your coffee business, so it’s vitally important that it’s not out of action for long periods of time. This means making sure it is regularly serviced (this is also a legal requirement)

36

Cash flow Most start-up businesses need a healthy cash flow to get things off the ground so it could be worth considering other options than buying your machine outright.

How to Start & Run a Coffee Bar

Say hello to just two members of our exquisite GIGA and XJ collections

XJ9 GIGA X3c

The GIGA collection of bean-to-cup coffee machines are top of the range machines with two or three thermoblocks, dual ceramic grinders, delivering superb coffee effortlessly and in seconds through Swiss precision engineering make the GIGA collection, ideal for use in hotel restaurants and bars.

Jura’s Impressa XJ collection is the perfect marriage of form and function. The high end coffee experience is as much about ambience and mood, with an immaculate, stylish design, this commercial coffee machine is as much a triumph of interior design as it is a dispenser of top quality specialist coffees.

For more details on the GIGA and XJ collections and our range of professional machines contact: JURA Products Ltd, Vivary Mill, Vivary Way, Colne, Lancashire, BB8 9NW. t: 01282 868266 f: 01282 863411 e: sales@uk.jura.com w: juraproducts.uk

coffee machines

Choosing a coffee machine The phrase ‘it’s a minefield’ is frequently uttered when looking at and choosing a new espresso machine, just like it is when choosing a new car, phone or a laptop. The major difference is that the latter products are all subject to numerous independent reviews, which are easily accessed by the consumer, to make an educated and calculated decision relatively simple. The same, however, cannot be said for espresso machines. In this article, Chris Austin of Conti Espresso UK highlights a few key mistakes that he sees every day at the machine acquisition stage, and also offers a few pointers to help make the decision a little less daunting.

An investment Espresso machine purchases are not done with pocket change, so spend some time researching the products, understand what makes them ‘tick’; you may not think you have the time to do this, but trust me, the more time spent now, the less money it will cost you in the long term.

It is widely believed that many espresso machines haven’t changed much internally for 50 plus years.

They apply heat to a copper or stainless steel boiler which creates hot water and steam. A rotating pump is used to apply nine bar of pressure to force (often too) hot water through finely ground coffee and the steam is released via an outlet to heat and texture milk. Simple I hear you say?

38

of the re-seller to make sure you have the right features married to your requirements.

As a new start business, it may be difficult to estimate how busy your venue will be, but having done your homework, you should have an idea.

In addition, the roaster or company that you are purchasing the said machine from should be able to draw on their extensive local knowledge and experience to help with this.

Well, not really!

Manufacturers work tirelessly to improve the original concept, by introducing new ideas and technology on a regular basis. It’s then the job

Cups per day or per hour?

‘Cups per day’ or ‘cups per hour’ is often stated in technical specifications within machine brochures and I find this a confusing and misleading factor to determine your machine How to Start & Run a Coffee Bar

coffee machines choice. Compare it to the mpg (miles per gallon) figures that car manufacturers boast somewhere in a lab with no wind resistance on a perfect rolling road the car achieved 72mpg for ten seconds, in the real world this translates to 45mpg at a push!

A few reasons why I don’t like this labelling of machine capacity… Firstly, it never states what size the cup is. A 16oz drink cappuccino requires a lot more steam than a 6 or 8oz equivalent. It also doesn’t mention how many shots per cup? A 25ml/g single espresso poured in 25 seconds using 7-8g of ground coffee actually needs around 40-45ml of machine water, a double shot of 18g of coffee to produce a 50ml/g drink requires nearer 80ml of machine water.

It also never mentions what happens if you use the steam boiler to access hot water for Americano or the occasional cup of tea (remember it’s called an espresso machine not a tea machine)?

This process robs the boiler of water, dropping the boiler temperature therefore slowing the barista down as they have to wait for the machine to heat back up.

Ask yourself the above questions and you will be one step closer to How to Start & Run a Coffee Bar

understanding the type of machine you need.

Many manufacturers have vast portfolios of equipment, ranging from low capacity entry level machines through to technical masterpieces that do all of the hard work for you or allow you to craft the perfect espresso by making all parameters adjustable.

To make things easier to understand I am temporarily going to make things more complicated by explaining some of the different heating methods employed within the traditional machine world.

An espresso machine has to do two fundamental things very well, create consistent steam for milk and produce stable, consistent hot water for espresso. The problem here is that steam requires water temperatures to exceed 115 °C (inside a pressurised boiler) yet this temperature would usually create water that is far too hot for our delicate coffee, so a compromise has to be reached, not too hot for your coffee, not too cold so steam does not generate.

THERMOSIPHON OR HEAT EXCHANGE This system is usually found in entry level or lower capacity machines. Here a tube is inserted through the main steam boiler which houses the fresh water for

espresso. This water heats up on its way through the steam boiler, much in the same way as a combi boiler works in our homes. The theory being is that the water only heats on its way through the main boiler and doesn’t sit at the bottom of the boiler becoming stale or too hot as it is constantly heated. Some manufacturers are adding some neat improvements to this system, such as cold water injectors directly into the group heads. This allows the main boiler temperature to be higher, therefore more steam, but the cold water injection creates a lower temperature for great espresso.

This system is great for a low – mid volume environment.

DUAL BOILER In this configuration, steam and coffee production is separated, one boiler for steam, one boiler for coffee.

This allows the user to have maximum pressure, therefore temperature within the steam boiler whilst not affecting the second coffee boiler, which can then be set at a much lower temperature (usually between 88 and 94 °C). Because of this temperatures remain very stable regardless of volumes, great for the busy outlet not wanting to compromise on quality.

39

coffee machines MULTI-BOILER This set-up is often regarded as the ultimate in espresso machine design.

Not only do we have a dedicated steam boiler, but each group head has its own mini boiler supplying the water for espresso.

This configuration allows the barista to set different temperatures per group, allowing them to introduce a guest espresso or have a dedicated group just for a decaf bean (did you know that not all coffees taste at their peak at the same temperature?). Not surprisingly these multi boilers machines are almost always the flagship models within a manufacturer’s portfolio, so this means that they also tend to include many additional features giving you every chance of producing that ‘perfect’ drink time and time again.

stage, the budget is all but exhausted and valuable bar/ counter space has been occupied meaning huge compromises have to be made. The message is simple, if your business has coffee as its core product (or even one of its core products) then please, please make the choice of espresso machine a priority at the beginning of your project. I believe this is what many speciality cafés do. We often assume that that the increasingly popular scaffold board, BUDGET reclaimed furniture and Sadly, most espresso stripped wooden floors, are machine purchases a design choice, but I think are driven by the two it’s because these shrewd least important factors, café owners have invested Aesthetics and price. As their money in quality a revenue generator, it equipment and begged and has always bemused me borrowed the furniture! how often I see business If you cannot afford owners concentrate all to buy new, then used of their efforts choosing or second hand can be the correct lighting, paint/ a sensible decision, but wallpaper combination, style of crockery and cutlery make sure you buy from a reputable source such as a then leave the espresso machine choice to the bitter coffee roaster or technician. eBay is not what I consider end of the project. By this

40

a reputable source. Unlike cars, coffee machines do not usually come with service history and buying from a stranger on auction sites guarantees you nothing, other than a long list of bills in the future.

SERVICE AND BACK UP Most espresso machines are worked hard throughout their lives so it is imperative that they are looked after and serviced on a regular basis. In my opinion we should be more proactive when it comes to servicing our machinery, that way we can almost eradicate the potential for breakdown. Regular planned maintenance will save money and also loss of sales in the long term.

It’s very simple; the more coffee you sell the more regularly you should expect to see an engineer, so save the stress and plan to see them and not in an emergency! Some machines even have counters built into them to remind when How to Start & Run a Coffee Bar

coffee machines service is required – this feature is definitely one to look out for. Ask the vendor to give you an expected cost for basic ‘front end’, six monthly and annual servicing. Ask about water filtration, boiler inspections breakdown and labour charges.

Don’t forget to ask about cost of spare parts. If the vendor doesn’t have this information to hand or can’t supply it very quickly then chances are they won’t be great at helping you fix that machine when it goes wrong.

In addition – have a plan B, there is no such thing as a machine that doesn’t breakdown. Having a spare machine is not always practical or affordable, but by offering a great quality alternative such as brewed coffee, you will always be able to keep the coffee flowing without losing too much business.

is tested properly at time of installation and that the correct filter is fitted. Ensure that you monitor its lifespan (some machines can do this for you) by fitting a water gauge. Expect to change the filter often, annual changes are frequently quoted as being sufficient, but in reality this is often not the case. This small piece of housekeeping and relatively low investment can save you a fortune in the long term.

Lastly and most importantly, please do not forget to leave plenty in the Final thoughts budget for your grinder(s) Water filtration is often seen and water filtration. as a necessary evil and Grinders sadly tend to tends to be an afterthought, be an afterthought, I often but I can assure it is not. see £4-5000 espresso Water makes up the vast machines sat next to sub majority of what we drink £500 grinders – this is, in in our coffee, so filtration is a nutshell is wrong! The a great way to improve the grinder plays a significant taste and overall quality, role in the huge equation ignore it at your peril. that makes great espresso.

Over 50% of breakdowns I’m not saying that good are linked to poor or badly grinders don’t exist in this managed water filtration. price bracket, but your setMake sure that your water up needs to be balanced, How to Start & Run a Coffee Bar

look to spend 20-30% of the machine value on a suitable grinder.

‘The perfect grinder’ is a whole different subject and would require an entire magazine devoted to it, but to start with, look for a reputable manufacturer, big blades, slow motors, systems to control temperature (this has a huge factor on consistency of grind) and little or no static build up in the ground coffee (it will drive you nuts if your grinder creates static as it throws coffee everywhere!).

On demand grinders certainly seem to be the most popular choice these days, and in my opinion, rightly so. The concept is very simple, each espresso shot uses coffee that has been ground fresh to order, so coffee doesn’t sit in a dispensing chamber going stale. They ensure coffee remains fresh, increasing consistency amongst multiple users and also reduces significant wastage.And remember, don’t be afraid to ask for recommendations, take time to visit some great cafés. Baristas love to talk about machines and grinders – pick a quiet time and ask them for help, I’m sure it will give you a head start in finding your perfect set-up, and you can have some great coffee while you work!

41

Find a supplier Capital Refrigeration Services Ltd Unit 16 Lea Rd Waltham Cross Hertfordshire EN 9 1 AS Company Registration No 918599 Place of Registration London, UK

Casa Espresso Ltd Unit 5 Briar Rhydding House Briar Rhydding Otley Road Shipley West Yorkshire BD17 7JW T: 01274 595841 E: contact@casaespresso.co.uk W: www.casaespresso.co.uk

T: 01992 788844 / 07768 256217 W: www.capitalref.com For all your commercial refrigeration contact Capital for quality, value and expertise.

Sales and service since 1967.

cream supplies

Bradford’s first Micro Roastery and UK’s original Sanremo distributor. Small batch hand roasted coffees from ethical & sustainable coffee green importers.

Free Barista Training & support.

www.

Unit 25 Hill Lane Close Larkhall ML9 2PY

.co.uk

Visit www.creamsupplies.co.uk for all your beverage requirements.

Hot chocolate, Syrups, Smoothies, Frappes, Sauces, Disposables, Barista Tools & Cafe Equipment.

Edgcumbe Tea and Coffee Co Ltd Wicks House, Ford Lane, Arundel, W.SX BN18 0DF T: 01243 555775 / 07713 984790 E: sales@edgcumbes.co.uk W: www.edgcumbes.co.uk Edgcumbes are a specialist coffee roaster and tea blender based in the South East. Supplying cafés and independents since 1981 with a full service – specialist training, products, espresso machines, brewers and water filtration.

Impress Sandwiches The Good Food Company of Harefield Limited T: 01895 440123 E: info@impress-sandwiches.com W: www.impress-sandwiches.com Extensive product range with new outstanding shelf friendly packaging designed to the food-to-go category.

Reliable friendly service since 1989. Please do call us to discuss your requirements.

42

T: 0845 257 4316 M: 07790 402144 E: info@coffix.com W: www.coffix.com

Bean there fixed that: - Repairs - Servicing - Sales Installation Delivery Training

Huhtamaki (UK) Ltd. Rowner Road Gosport Hampshire PO13 0PR T: +44 (0)2392 512434 E: sales@gb.huhtamaki.com W: www.foodservice.huhtamaki.co.uk Global specialists in packaging for food and drink, Huhtamaki manufacture disposable foodservice packaging including hot and cold cups, tumblers, lids, food containers, plates and carry trays.

The environmentally-friendly Bioware range is made from renewable plant materials and certified as biodegradable and compostable under European standards EN13432. Huhtamaki also manufacture disposables from recycled material, rPET.

Bennett Opie Ltd Chalkwell Rd Sittingbourne Kent ME10 2LE T: 01795 413705 E: dling@b-opie.com W: www.b-opie.com With over 100 years of experience, MONIN is the brand of choice for top baristas and coffee shops. Over 140 MONIN flavours available including syrups, sauces, frappes and smoothies.

MONIN’s expert development team can help create premium beverage solutions for your business - contact us to arrange a visit to the MONIN Studio London.

How to Start & Run a Coffee Bar

Find a supplier

T: 0800 0461570 E: info@pantheonce.co.uk W: www.pantheonce.co.uk The reliable, cost efficient brand for all your plug-in cooking equipment requirements.

Ovens, contact grills, griddles, fryers, heated display, pie warmers, bains marie.

Polypouch UK Ltd 1 Station Approach, Watford, Herts, WD18 7FR

· Stock Coffee Pouches · Bespoke Coffee pouches T: 0203 475 3456 · Box style Pouches E: sales@polypouch.co.uk · Unbeatable prices!

W: www.polypouch.co.uk

The Printed Cup Company Paper Cup House Taylor Street Clitheroe Lancashire BB7 1NL E: sales@tpcc.co T: 01200 449900

Seda UK Limited Salvatore D’Amato Court 10 Hawtin Park Gellihaf Blackwood Gwent NP12 2EU T: 01443 811888 E: sales_uk@sedagroup.org W: www.sedagroup.org Part of Seda International Packaging Group, Seda UK produces rigid packaging solutions for the food and foodservice industries. Its comprehensive range includes paper double wall and single wall cups ideal for hot and cold drinks together with compostable variants which conform to the EN13432:2000 standard. Hot food tubs, snack and confectionery pots and salad bowls are also manufactured. A full range of lids completes the product line up.

Tri-Label Unit 4, The Arena Mollison Avenue Enfield Middlesex EN3 7NL

Tri-Star Packaging Unit 4, The Arena Mollison Avenue Enfield Middlesex EN3 7NL

T: 020 8443 9120 E: info@tri-label.co.uk W: www.tri-label.co.uk

T: 020 8443 9100 E: info@tri-star.co.uk W: www.tri-star.co.uk

Experts in food labelling and labelling software for the coffee bar and foodservice sectors.

UK’s leading supplier of packaging and disposables to the coffee bar and foodservice sectors.

The Cupshop PO Box 2379 Gresford Industrial Park Chester Road WREXHAM LL11 0LJ T: 01978 857245 W: www.thecupshop.co.uk - A complete range of high-quality paper hot cups in stock designs or custom print - Meets all the service needs of Coffee to Go - All Cups Made in the UK - Full PEFC Chain of Custody Accreditatation

How to Start & Run a Coffee Bar

Williams Refrigeration Bryggen Road North Lynn Industrial Estate King’s Lynn Norfolk PE30 2HZ T: 01553 817000 E: info@williams-refrigeration.co.uk W: www.williams-refrigeration.co.uk Williams is a leading UK manufacturer of commercial refrigeration equipment, providing practical energy cost saving solutions.

43

Small but surprising Based on our popular CC100 range, the Conti Compact offers all the power in a smaller package. With a four-espresso output capacity and PID temperature control, it delivers a full-bodied coffee experience when space is at a premium. Leaving more room for the rest of your business.

For more information, email info@conti-espresso.co.uk, visit our website www.conti-espresso.co.uk or call us on 01763 249 398

CONTI-Espresso UK, Unit 7, The Quadrant, Newark Close, Royston SG8 5HL

conti_back.indd 1

07/04/2015 10:06