How much does it cost to open a coffee shop – Cost and investment guide
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If you’re drawn to entrepreneurship and want to step into the world of coffee shops—where customer relationships play a big role—opening a coffee shop can bring exciting opportunities. And if you choose to invest not only financially but also with your full commitment, it can be very rewarding.
Before you get started, it’s natural to ask how much it costs to open a coffee shop and what you need to consider. To help you, we’ve prepared this guide with all the key information about opening a coffee shop—from a simple coffee shop business plan to costs and other important details.
Why open a coffee shop?
Coffee has increasingly become a symbol, not just a simple drink. If in the past coffee consumption was tied to certain hours or social moments, today “coffee” means much more and carries cultural implications. We socialize over coffee, go on dates over coffee, work in spaces where we drink coffee, or simply spend time at a café.
Consulting services for opening a coffee shop highlight the modern meaning of “let’s grab a coffee,” combining economic and social components so that when you open a coffee shop you fully understand why it’s worth investing in this business.
Factors that influence the cost of opening a coffee shop
If you want to start a coffee shop business, know that the process requires specialist support through consulting. Experts can provide details on variable costs that depend on several factors, so a final cost can only be an initial estimate.
Factors that influence costs include:
Location and rent
When it comes to a coffee shop business plan, the first thing to consider is the location. It’s important to choose an area with good foot traffic and a rent you can sustain long-term, especially until the business becomes sustainable. Keep in mind that prices vary significantly depending on the area and city size, so general estimates can be misleading.
Square footage and interior fit-out
Another key factor is the space size and the necessary fit-out work. Even if you find an affordable rent, the budget can increase significantly if the space needs major renovations, electrical or plumbing repairs, or a modern ventilation system. Also, if you want to open a specialty coffee shop—where visual experience and customer comfort matter as much as coffee aroma—you’ll need to invest in a coffee shop interior design that reflects your brand identity and creates a welcoming atmosphere.
Type of coffee shop (specialty, to-go, classic, etc.)
In recent years, more and more formats have appeared, from specialty cafés to to-go or classic coffee shops. The type influences costs because, for example, a to-go café requires more standard, less expensive equipment, while a specialty coffee shop needs higher-performance equipment and therefore higher purchase costs.
Initial costs for opening a coffee shop
When you put a coffee shop business plan on paper, it’s important to consider all initial expenses, as they can significantly influence your budget and the pace at which the coffee shop becomes profitable. From the legal side to investments in equipment, furniture, inventory, or interior design elements—each aspect plays a part in long-term success.
Below are the main cost categories so you have a realistic picture of the entire process.
Legal fees and documents required to open a coffee shop
Opening a coffee shop first and foremost requires meeting legal compliance requirements. The steps to set up a coffee shop as a legal entity are:
- Company registration – costs amount to a few hundred lei;
- Obtaining CAEN codes;
- Authorizations: DSVSA, DSP, ISU, Environment, City Hall;
- Legal or accounting consultancy – optional but recommended, since complex situations can arise beyond your expertise level;
- License for the music you’ll play in the café.
Equipment and furniture for setting up a coffee shop
Other opening costs largely come from purchasing furniture and specific equipment. These are essential for the coffee shop’s operation and performance, and their type varies by business model. For specialty cafés, equipment is naturally more expensive, while a to-go coffee shop won’t invest as much in these details.
Equipment and furniture you’ll need include:
- Professional espresso machine – absolutely essential; prices range from a few hundred to a few thousand lei;
- Coffee grinder, boiler, filter, blender, etc. – other small but very useful equipment in any coffee shop;
- Water filtration system – to ensure coffee quality and taste;
- Precision scales – correct weighing ensures coffee quality;
- Refrigerated display case for cakes or pastries;
- Oven, toaster – if the café has a broader food offering;
- Furniture: tables, chairs, counter, shelves;
- POS system, cash register, sales and inventory management software.
Initial stock of coffee and consumables
A coffee shop needs raw materials paid in advance to operate properly. You’ll need to purchase coffee and consumables essential to daily activity. Raw material costs must be managed carefully to support the business sustainably.
Branding and launch marketing for opening a coffee shop
In the era of technology and public exposure, promotion and branding are very important to a coffee shop’s success. To launch, focus on:
- Logo and visual identity;
- Interior design aligned with the brand;
- Website, social media, flyers, banners;
- Launch campaign: influencers, events, promotions.
Recurring costs of a coffee shop
Beyond the initial costs, there are monthly recurring expenses that must be managed carefully because they affect profitability.
Rent and utilities
Rent is one of the essential monthly expenses and underpins the entire project. Utilities are just as important for smooth operations. These costs can’t be ignored and are the most significant long-term.
Salaries for coffee shop staff
A coffee shop can be run by one person, but for a larger café with table service you’ll need staff. In this case, salary and other benefits appear and must be included in the overall total.
Raw materials and consumables
Raw materials—coffee, milk, syrups, teas, cakes or ingredients for light dishes—are consumables that must be replenished constantly. Add to these cups, cutlery, napkins, espresso filters and other necessary supplies. Monthly costs depend on sales volume and shop type; efficient stock management can significantly reduce losses and expenses.
Promotion
Long-term, a coffee shop must invest consistently in promotion to retain existing customers and its market position. Promotion involves finding innovative ideas that differentiate the business from competitors to attract both loyal and new customers.
Maintenance
Maintenance includes upkeep of the space—from electrical or plumbing equipment to renovations and improvements that add value to the café.
Tips to reduce costs at the beginning
Opening a coffee shop can seem challenging, but there are solutions to reduce initial costs. Consulting specialists can offer valuable recommendations for efficient budget management and navigating tough periods.
Essential vs. optional investments
Especially at the beginning, clearly distinguish what’s truly necessary from what’s optional—based on needs vs. wants. Focus on essential investments your business needs and separate them from optional expenses you’d like to make to enhance it.
Equipment rental
An effective way to reduce costs is to rent coffee shop equipment instead of buying it. This gives you more time and flexibility to manage your cash, avoiding locking a large sum in a single installment.
Collaborations with local suppliers
Working with local suppliers is another effective way to save money. By partnering with local producers for raw materials, transport, and logistics, you can significantly cut costs compared to external services. Plus, this helps you build important community ties, and promotion can come naturally through local recommendations without extra marketing spend.
Estimated budget for opening a coffee shop
Setting a clear, realistic budget is essential, since costs vary greatly depending on space size, shop type, and desired level of equipment or design.
Minimum investment (€15,000–€25,000)
This range can be enough to open a small coffee shop with limited space and a simple menu—coffee to-go and a few pastries. The main advantage is lower financial risk and a shorter capital payback period. The downside is that limited space and simpler equipment can restrict your ability to attract a more diverse audience and offer a wider range of services.
Medium investment (€30,000–€60,000)
A budget in this range offers more freedom, allowing an attractive interior design and a diversified menu that can include higher-quality coffee, pastries, and light dishes. This investment enables the purchase of quality professional equipment and fully furnishing the space to create a pleasant customer experience. It also offers more flexibility in promotion and building a strong brand identity, which can help attract a steady flow of customers.
Large investment (over €70,000)
A large investment allows you to fit out a generous, well-equipped space that’s attractive to customers and operationally efficient. The major advantage is the ability to build a strong brand and promote it more easily. The downside is a longer amortization period; recovering the invested capital can take more time.
What should a coffee shop business plan include?
The business plan is the foundation of a coffee shop’s development, as it includes all details related to the business direction and vision. Based on this document you estimate necessary resources and set clear stages for building a successful business.
Management structure
Without clear rules, nothing works efficiently, so the first rule is correctly defining roles for each person. You can create a simple org chart as follows:
- Owner – the person who owns and manages the coffee shop;
- Staff – with branches as needed, based on roles and responsibilities.
Market analysis
How you position yourself relative to the market and competition is essential. Consider the following when making comparisons:
- Target market;
- Competitor analysis;
- Trend analysis.
Marketing and sales plan
Detail how the coffee shop will be promoted and how customers will be attracted. Include communication strategies, online and offline promotion, special offers, loyalty programs, and collaborations with influencers or local partners to build awareness and drive sales.
Operational plan
Defines how the coffee shop operates, including workflow details, space layout, equipment used, and collaboration with suppliers. It should address:
- The physical space and its description;
- Suppliers and relationships with them;
- Daily workflow and operational processes;
- Equipment needed for optimal operation.
Financial plan
Include all initial expenses for opening as well as estimated monthly operating costs: rent, utilities, salaries, raw materials, and marketing. It’s also important to estimate expected revenues and calculate the break-even point to assess how profitable and sustainable the business is in the medium and long term.
Divide planned expenses into:
- Initial expenses;
- Estimated monthly expenses.
Frequently asked questions about the costs of opening a coffee shop
What are the biggest initial expenses?
Furniture and equipment. More precisely, the café furniture, grinders, and coffee machines are the most expensive.
What documents are required to open a coffee shop?
You must obtain all the necessary documents to operate legally and comply with current legislation. The process starts with company registration at the Trade Register and obtaining the appropriate CAEN codes. Then you need mandatory authorizations from DSVSA, DSP, ISU, and the City Hall. Depending on services offered, you may also need a license to play music on the premises.
How important is branding when opening a coffee shop?
Very important. Good presentation and a well-chosen identity are a true business card for the café.
What financial risks should you consider?
Many—from not generating enough to cover expenses, to competition, unforeseen risks, tax increases, or inflation.
How long does it take to recoup the initial investment?
Typically the investment starts to be recovered after the first year, but it depends on the investment amount, challenges, and the café’s size.
What budget is needed for a neighborhood vs. a central coffee shop?
Set a medium budget for a central location, somewhere between €30,000 and €50,000, to keep better control over processes. For a neighborhood café—like a to-go concept—choose a smaller budget and test the market.
Is it better to rent or buy the space?
Both options can work, depending on context. If you have liquidity you can buy, but that ties you to the location. Renting is often more efficient, giving you the flexibility to expand or move whenever you want.
What is the average cost of an espresso machine for a café?
Prices start from €6,000 for a budget solution and can go up to €20,000 for high-end options.
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