yourbizidea

Scorecard · Austin, TX

Coffee shop with seating

36/100

How much does it cost to open a coffee shop in Austin? $145,000–$240,000 in Austin, TX, on the figures below.

Profit
C
Austin shops average $4.75 a drink and 180–260 drinks a day. That is $27,000–$37,000 a month gross, against food cost near 22% and labour near 32%.
Difficulty
D
Health permit, grease interceptor, ADA restroom and a Travis County food manager certificate. Build-out inspections in Austin routinely run 4–7 months.
Capital
E$145,000–$240,000
Espresso machine and grinder $18,000–$32,000, hood and plumbing $40,000–$90,000, 12 months of $6,500 rent held back, plus a $19,500 deposit.

Break-even

The number that has to be true
212 drinks a day at $4.75, six days a week
Fixed costs a month
$21,800
The assumption
A lease under $38 a square foot with the plumbing already in place.

Opening for less

All three together take $139,000 off: $240,000 becomes $101,000.

  • Take over a closed café with the hood and plumbing already installed

    −$70,000

    Costs you: You inherit their layout and their reputation on the street

  • Open as a 200 sq ft kiosk inside an existing building

    −$55,000

    Costs you: No seating, so the $6 pastry attach rate drops by about half

  • Buy the espresso machine and grinder refurbished with a service contract

    −$14,000

    Costs you: Two-year warranty instead of five, and no financing to spread

How you’d do it

What you need

  • Austin Public Health food enterprise permit and a certified food manager on site
  • A vented space or the budget to cut a hood through the roof
  • $21,800 a month covered for six months before the first regular appears
  • A roaster willing to sell wholesale at 40–60 lb a month

First 3 moves

  1. 1Walk five blocks of your target street at 8am and count how many people carry a cup already.
  2. 2Ask three landlords for the previous tenant's use and whether a grease interceptor exists.
  3. 3Price the same 500 sq ft as a kiosk and as a full build, and compare the two break-even counts.

The hardest part

Getting to 200 drinks a day in a city where three shops already sit within walking distance.

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