Coffee Shop Startup Costs
Starting a coffee shop is a dream for many coffee lovers and entrepreneurs, but understanding the true costs is vital before you begin and to managing expectations. Coffee shop expenses vary depending on size, location, and design, but with careful planning you can budget effectively.
Typical Startup Range
In the UK, opening an independent coffee shop typically costs £20,000–£100,000. A small local café may fall at the lower end, while larger high-street shops or branded franchises can exceed £100,000.
Where the Money Goes
- Premises & Rent Deposits – Expect several months’ rent upfront plus legal fees.
- Fit-Out & Design – Counters, flooring, lighting, and décor often cost £10,000–£20,000+.
- Equipment – Espresso machines (£3,000–£20,000), grinders, blenders, espresso tools, fridges, and POS systems can total £10,000–£15,000.
- Furniture – Chairs, tables, and shelving usually cost £3,000–£5,000.
- Licences & Insurance – Food hygiene certification, liability cover, and council permits are essential.
- Initial Stock – Coffee beans, milk, pastries, and packaging add £1,500–£3,000.
- Marketing & Branding – Signage, logo design, and a launch campaign may cost £1,000–£3,000.
Working Capital Matters
Beyond setup costs, plan for £10,000–£15,000 in working capital to cover wages, utilities, and supplies in your first few months while building a customer base. Coffee shop startup costs are sometimes kept lower through the use of favours from friends and family when you’re an independent coffee shop, but it’s worth making sure there is some money in reserve.
Bottom Line
The cost of opening up a coffee shop has a wide range, and its never cheap. But it can be the realisation of a dream for many. Opening a coffee shop requires a solid financial plan. By understanding your costs upfront and securing enough funding, you’ll be in the best position to create a welcoming café that thrives long term.
Getting the right coffee equipment can be exactly where to start when achieving this! How to know which professional espresso machine is right for you?