Scaling your coffee shop is a tremendous step forward. How do you know when it is time, and what are the signs?
As a business owner, you dedicate long hours to getting your business on the right track. With many wins and losses on your journey, it’s essential to keep learning more about yourself and your business. With a coffee shop, you have to support the growth of your consumers in a demanding industry. While there are signs along the way that it’s time to scale up, there isn’t a one-size-fits-all formula. So when is it time to scale your coffee shop and take it to the next level? Let’s take a look.
You can’t scale up your coffee shop until you know your finances front to back. With a careful evaluation of your finances, you can make a forecast of what will happen when you scale up. It’s a plan that will give you expectations so you won’t get caught off guard by any surprises with expansion.
Are you tracking your monthly revenue and expenses? We can show some examples of the math to get started (don’t worry, we’ll keep it simple). Let’s say your coffee shop has a monthly revenue of $20,000. Your monthly expenses are around half of that, $10,000. You know that with an extra $10,000, you can scale up, but is it worth it? Perhaps you hire two new employees to meet increased consumer demand and you make additions to your building.
Factor in the two new monthly costs of your new hires and factor in the fixed one time cost of your renovations. Make your own prediction on how this will affect your revenue after you scale up. For example, maybe you predict that your new monthly expenses will be $16,000 per month, but it gives the opportunity to bring in $30,000 per month after you scale up. This would be well worth it since you’re now scaled up to $16,000 instead of $10,000.
Engagement With Marketing
Your customers are your most valuable asset. In 2022, digital marketing channels continue to define your brand and create engagement with your customers. A sure sign that you can scale up your coffee shop is when you have customers engaging every time you market your brand or product. Loyal customers will follow you and support your growth as a company when you make positive changes.
For instance, social media is a powerhouse where your marketing efforts spread instantly. Are your followers and regular customers quick to spread the word if you decide to scale up? Perhaps you add a second location and you’re excited to make announcements about your grand opening. Your followers could easily share and reply to your content and create organic marketing for you.
You Have the Right Staff
As you scale up, you can’t be in several different places at once. Depending on the right people will help you scale your coffee shop that you can trust. Bigger is better when you don’t have to manage everybody. Your staff should be on board with your changes and they should understand your vision and the company mission statement.
As you look for signs of scaling up, evaluate your own staff and think about your brand’s core values. Is your barista making people feel welcomed? Is your manager delegating tasks appropriately and staying organized? How does your staff demonstrate excellent customer service? You can’t always scale up your coffee business alone, so make sure your staff is committed to your goals.
Your Inventory Management is Polished
Inventory management is a complex system that takes years before efficiency is maximized. Part of your inventory system is tracking what is coming into your store and what goes out through sales.
For example, there are instances where you order too much and reduce the amount of space you have. On the flip side, you can order too lightly and not have enough supplies or products to sell. Once your inventory cycle is more efficient, you can adapt the same system to your next location with ease.
Scale With YBC Plus
If you’re well on your way to scaling up your coffee shop, congratulations! It’s an exciting new challenge and it shows that your initial experience in the coffee industry was probably a success.
When you scale, however, you have to be prepared for the growth ahead. Fortunately, Your Brand Cafe offers a program to help you do just that. YBC Plus is a sourcing and distribution service that helps franchisees operate their stores with top-tier efficiency. Every client gets their own online operations hub, comprehensive product sourcing, and rapid order fulfillment that makes replenishing inventory quick and easy.
Best of all, we keep all of your custom disposable cups, coffee sleeves, apparel, and more in space within our warehouse that is specifically set aside for you. With a dedicated customer service team at the ready, we’re here to support you during the challenging yet exciting endeavor of scaling up your business. Contact us today to learn more about how we can help scale your coffee shop!