Step-by-Step Guide On How To Open a Café in Australia

The coffee culture in Australia has made the business a very lucrative one. 75% of Australians drink at least one cup of coffee daily, with 70.8% having it as part of their daily routine and the coffee segment generating over $7.7 billion as of 2021 (Gjorgievska, 2023). The thriving coffee industry hinges firmly on social-cultural factors whereby most customers drink coffee as a lifestyle, creating a low entry barrier for those starting a café in Australia. This article will describe a detailed step-by-step guide for opening a cafe in Australia.

Research the coffee business:

Research into the coffee business needs to be undertaken to ensure your cafe is set up for success. The market environment needs to be analysed to ensure that target consumers are correctly identified, as well as their tastes, needs and preferences. An additional clinical focus needs to be placed on existing and emerging competition in the market. Points of comparison to take note of include product offering, pricing strategy and proven marketing techniques. It is important to have a comprehensive understanding of both internal and external factors within the market such as political, economic, socio-cultural and  technological issues to develop an overarching understanding of opportunities, threats and market risks. This helps to develop the most effective positioning strategy for your cafe to achieve success. 

Get properly licensed & insured:

Obtaining correct licensing and insurance are crucial prerequisites when opening and running a cafe. Without the correct licensing and permits your cafe has the potential to risk compliance across several legal areas. Within Australia in order to operate legally licences must be acquired that include: outdoor dining permissions, waste disposal and liquor licences. There are also several different areas of insurance that should be acquired to mitigate excessive financial risks. Examples include general liability insurance for issues such as food poisoning and slip hazards, property insurance to protect physical assets such as buildings, equipment and inventory, and workers’ compensation insurance for work-related injuries or illness. Obtaining the correct documents within these areas will help safeguard against legal and financial issues. 

Create a Business Plan:  

After being legally secure and acquiring sufficient information, the café is ready to kick off. A carefully devised business plan is essential at this stage, defining the business goals, vision, and objectives with clear strategies to meet them. The business plan is vital because it covers all aspects necessary for the start-up café. The program covers marketing and sales, financial plan, competition, management, mission and vision statement, pricing, human resources, logistics, SWOT analysis, etc.

Choose a Location:  

The sensitivity of coffee to the average Australian influences the choice of a café location. A location should be selected after the target market is clearly defined. There is no exact or perfect site description as the customers determine this, and it will most times vary. Some factors to consider are:

·         Aesthetics

·         Access to raw materials,

·         Passer-by concentration

·         Parking availability

·         Customers demography

Find the best suppliers:

Intelligentsia Coffee, a leader in the industry, shares how they pay 25% above average price and are rewarded with some of the world’s highest quality coffee beans (Honan, 2009). Statistics show that 78% of Australians value the taste and quality of their coffee (Gjorgievska, 2023), showcasing the importance of bean quality. Leading coffee businesses in Australia have generously shared the nature of their relationship with their suppliers as very crucial to the success of their business, as it is linked to their ability to source the best coffee bans globally. According to Coffee Di Bella, the qualities of the best suppliers are not limited to sourcing the best beans but extend to the supplier’s ethical and environmental values and responsibilities. This showcases that the customer-supplier relationship is crucial to business success.

Invest in staff:

When considering how to open a café, sourcing and keeping the best employees is as critical as the organisation’s survival. The employees run the organisation and should be given as much attention as the strategies developed to make profits. Some reasons are employees’ direct customer interaction and involvement in daily business activities.

Design your café:

Anyone considering how to open a café already has a visualised picture waiting to be brought to life. The physical establishment of the café expresses the owners’ vision, and every design should be thoughtfully considered. Some factors to consider include indoor or(and) outdoor sitting, layout, lighting, serving counter, colours, space, accessibility, flooring, etc.

Market your café:

Marketing and advertising remain the engine for increased sales. Opening a cafe in a saturated industry requires a strategic marketing campaign and an experienced marketing team to target the right market, showcase the café’s differences and cost-effectively monitor the sales funnel.

Source commercial equipment & furniture:

The quality of any product is just as good as the equipment used to make and serve them. Bad equipment will have an adverse effect on cost and time, and the choice of equipment should satisfy factors like safety, durability, economies of scale, efficiency, etc.

As furniture contributes directly to the intangible customer experience to customers, any business must carefully consider the indoor and outdoor furniture displayed because they greatly affect value offering. Generic factors to consider when choosing furniture include comfort, beauty and aesthetics, durability, functionality, etc.

Conclusion

The choice to open a café in Australia requires careful consideration and strategic decision making as the market is already greatly saturated. As there are already set systems in place and availability of structured data it is relatively simple to access the information required to start your café. Here at Felton, we offer a range of café aluminium outdoor furniture, timber and recycled furniture that meets the growing needs of alfresco dining spaces. For questions about the most suitable café outdoor furniture our friendly sales team are happy to provide advice and additional information. Get in touch on 1800 834 016.