What would be the start up cost to open a coffee shop in Brooklyn, NY?

What would be the start up cost to open a coffee shop in Brooklyn, NY?

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0 thoughts on “What would be the start up cost to open a coffee shop in Brooklyn, NY?”

  1. Generally speaking, food establishments are really expensive operations to start. And you haven’t provided enough information for anyone to form a meaningful cost estimate.
    Are you taking over an existing coffee shop and keeping the interior design the same or are you doing a new build out and taking over an auto body shop? This dramatically affects your costs. Hiring an interior designer, architect, general contractor, consultant?
    What is the size of your shop? The size directly affects your costs on everything, the bigger it is, the higher your startup costs. But it also means you’ll be able to occupy more customers, which means you can make more money if your business does well.
    If you’re going to serve diner style food, you need to think about all of the stoves, ovens, vented hoods, sinks, refrigerators, freezers, racks to keep everything off the floor, toasters, coffee makers, specialty coffee machines, ice maker, glass display cases, decorative shelving, paintings, etc. There are tons of places that buy and sell used equipment but it’s probably going to be $20,000 to $30,000 if you go cheap. If it’s a higher end place with higher end equipment, this cost can jump to $100,000 to $200,000 or more….think gourmet restaurants with chromed out kitchens
    General liability and any other appropriate insurances, corporation formation, business license, local permits, fees like insurances depend on if you pay for your insurance monthly or annually. You may also want to obtain specialty services like due diligence services, or if you’re a newbie you probably want to hire an attorney to help you with your rental agreement/lease, a CPA to handle tax planning, you probably don’t want to open to crickets so you’re going to need to advertise your Grand opening which could cost anywhere from a few thousand to many thousands, you’re going to need the money to pay payroll for the staff you’ll need like servers, cashier, dish washer, helper, cook, supply shopping, stocking, inventory counting…depending on your hours of operation and plan, some will be part time and some full time.
    You might want to do some retail sales there so you’ll need money to purchase your inventory of mugs, french presses, whatever else crap is sold inside coffee shops.
    Security deposit, first and last months rent. Look up the zip code and surrounding businesses to get an idea of cost per square foot for rent.
    All of the small things like light fixtures, decorations, furniture, napkin holders, alarm and security system, fire sprinklers, extinguishers, motion sensors, several other things I’m forgetting….
    And this list is without even putting any serious thought into it so you can see how quickly it adds up.
    Brooklyn has cheaper areas and more expensive areas, prime time locations, shitty locations with no parking and high crime rates, you really need to know specifics but to give you really lose ballpark, you should expect a few hundred thousand dollars on the low end and 1–2 million on the high end.
    A good way to approach it would be to work with a business broker who is established in that area and then go from there. Study up a lot because as you know, the survival rate of restaurants at the 3 to 5 year mark isn’t very high…since humans have to eat 3 times per day, lots of people have this same food dream…but the food business is extremely difficult.
    This gives you a starting point for some things you’ll need to think about.
    My suggestion would be to start a digital internet business instead. Blog, review site, ecommerce selling restaurant equipment, etc…anything is going to be less risk, less stress, less hours, less investment. Restaurants are really hard in my opinion. If you decide to go for a coffee shop or any type of restaurant, just make sure that you have the BEST food/pastry/muffins/chow mein/whatever EVER. If you can accomplish that, and work really hard at running it well, you might have a shot at surviving.
    To minimize your risk and to benefit from an established establishment and existing customer base, look for businesses that are offering Owner Financing which means that the seller has enough confidence in the business to finance the sale out of their own pocket while the buyer makes payments from the money he earns from the business. This can be great and may cost you nothing out of pocket but keep in mind that high performing businesses for sale, don’t need to offer Owner Financing because lots of people want to buy it.

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  2. I grew up in Brooklyn. My parents were like gypsies, we lived in many neighborhoods. There are many questions that need to be answered before costs for your coffee shop could be approximated. My family and I have own/managed several restaurants. Whatever number you generate for costs add 25%.

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