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Your Guide to Starting a Cafe

Now that you’re up to speed on our general guide to starting your business, it’s time to get to the nitty-gritty details of opening a coffee shop.

Your Guide to Starting a Cafe

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Pros
  • Ability to be your own boss and have more control over your career
  • If successful, financial reward will be superior to working for somebody else
  • Open and peak hours are more likely to be during normal business hours and daytime weekends, in contrast to restaurants or bars
  • Ability to utilise a range of different skills that you may not get as a regular cafe employee
  • Ability to meet a lot of new people, and establish the ‘goodwill’ of the local community
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Cons
  • Running a cafe is not a job and ‘business hours’ don’t exist: it requires a significant investment of personal time and planning
  • Cafes can fail – meaning huge drain and stress on financial resources and time lost
  • Subject to seasonal variances, meaning cash flow can be a notable stress point for cafe owners
  • You will need a range of different capabilities beyond hospitality to be a successful owner of a cafe; including business and finance management skills
  • Employee tenure can be lower than other industries; meaning higher time investment required to find and train staff

Download the guide and get started with our bonus checklist!

Download the guide and get started with our bonus checklist!

Licencing Requirements – Which Cafe Licences Do I Need?

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Business Licences

You’ll need to apply for a business licence and registration from the local council. The local council will ask you to provide information such as:

  • Your food business classification
  • The type of food to be served
  • Whether food is pre-packaged
  • The name of your food safety representative

For information on the process with your local council, visit the Australian Business Licence and Information Service.

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Council Certificates

You’ll also need to apply for a number of certificates from the local council, including perhaps:

  • A zoning certificate
  • A construction certificate
  • A fire safety certificate
  • A compliance certificate
  • An occupation certificate

You’ll then need to pay the associated fees and fill out the required paperwork.

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Food Licensing

If you plan to serve food in your cafe, you’ll need to follow food business licensing requirements, which also vary from state to state.

Food business licensing ensures your venue can produce safe food before it is supplied or prepared for the local community. Licensing requirements vary depending on the size of the venue and state or territory where you’re establishing the business. You can view the relevant licensing requirements for your bar below:

There are also several other licenses that you may require, so it’s best to seek advice.

Owning a Cafe: The Rules and Regulations

Food Authorities and local councils work together to inspect coffee shops on a regular basis. Before you start trading, a representative will need to inspect the food premises to ensure it meets requirements. The onus is on the business owner to arrange this final inspection.

These inspectors will also complete regular food inspections to ensure your cafe continues to comply with regulations.

If you want to use a public space to serve food or drinks (for example, the footpath) you will need to apply and receive approval from council.

And ensure you’re across smoking regulations for your state; most states have banned smoking in outdoor areas.

You must also understand and comply with Fair Work laws, national employment standards and work, health and safety law.

Additionally, owners of a café franchise are subject to the rules and regulations put forth by the franchisor.

How to Find Your Perfect Cafe Shop Venue: Choosing Your Location

Location can make or break your café business, so it’s important you consider every aspect of it, including the pros and cons of a specific location before setting up shop. A coffee shop is a versatile business that can really make the most of many kinds of locations.

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Questions to ask yourself when choosing a location for your cafe.

  • How many people reside locally, and who are they?
  • Is the area densely populated and are they the sort of people who will want to leave home for a coffee and a bite to eat? Check out the area for yourself.
  • Is there parking?
  • Is there foot traffic?
  • What else is in the neighbourhood?
  • Are you in or close to a shopping precinct?
  • Is the café near an industrial park or a business community?
  • Are you close to a beach, a park or a tourist destination? It’s rare for the café to be a primary destination for customers, so consider what makes the area special.
  • What can you offer to the community that is new and innovative?If you plan to move in somewhere with a lot of competition, you will need to really stand out from the crowd.
  • What are you planning to offer that is different to or better than potential competitors?

How to Choose the Right Staff for Your Cafe

Advertise everywhere

Putting up a ‘Help Wanted’ sign is a great way to find staff. A loyal customer could end up being your best employee. Advertising online will give you a greater pool of applicants and a greater ability to find qualified staff.

Don’t be afraid of training

Qualified staff may be hard to come by, so don’t be afraid of hiring under-qualified staff. Sometimes the best staff haven’t had an opportunity to prove themselves.

Staff should add value to your business

Look for staff who put a lot of stock in presentation. In the age of Instagram, taste isn’t the only important factor in food and coffee. Just look at how the popularity of foam art has grown. Charisma and ability to keep a cool head under pressure can also make a huge difference.

For good staff, you have to be a good employer

Reward your employees hard work and treat them with respect and you will be rewarded with dedicated, hardworking and loyal employees.

Download the guide and get started with our bonus checklist!

Download the guide and get started with our bonus checklist!

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