How much does it cost to open a cafe?

Investment budget for opening a cafe

Opening a cafe is a popular business option, but there are various factors that need to be carefully considered before making the investment. One of the most important factors is the budget. This article will explore the approximate investment budget required to open a cafe.

Rent and renovation costs

First, you need to consider the rent and renovation costs. This depends on the area where you plan to open your cafe and the size of the store. Generally speaking, it is more expensive to rent a store in a busy commercial area, and the renovation costs will increase accordingly. Depending on the area and size, the rent and renovation costs may account for 30% to 50% of the total investment.

Equipment and furniture

Secondly, you need to purchase various equipment and furniture to operate the cafe. This includes coffee machines, grinders, refrigerators, blenders, etc. In addition, you need to purchase tables, chairs, sofas, and other furniture related to customer comfort. Depending on the brand and quality, equipment and furniture may account for 10% to 20% of the total investment.

Raw materials and inventory

Opening a cafe also requires purchasing various raw materials and inventory, such as coffee beans, milk, sugar, etc. These costs will vary depending on your sales volume, so it is difficult to give a specific number. However, generally speaking, raw materials and inventory may account for 10% to 15% of the total investment.

Employee wages

Another important budget aspect is employee salaries. You need to hire the right number of employees to run your cafe and pay them a reasonable salary. Depending on the region and size, employee salaries may account for 15% to 25% of the total investment.

Marketing expenses

Finally, you need to consider marketing expenses before opening a cafe. This includes various forms of promotional activities such as brochures, advertisements, social media promotion, etc. Depending on the level of market competition, marketing expenses may account for 5% to 10% of the total investment.

To sum up, when opening a cafe, the budget can be roughly allocated according to the following proportions: rent and decoration costs (30% to 50%), equipment and furniture (10% to 20%), raw materials and inventory (10% to 15%), employee wages (15% to 25%) and marketing expenses (5% to 10%). Of course, this is just a rough estimate, and the actual investment budget needs to be adjusted according to the specific situation.