It might seem like there’s a coffeehouse on every corner, but there’s still room in the market for indie neighborhood joints if you have the moxie to go up against Starbucks, Coffee Bean and Peets. The key to success in these competitive markets is to brand yourself as unique and find the ideal location near either large residential segments or in business centers. Many small towns across the country don’t attract the big three, so your start-up coffeehouse has a great opportunity to educate the community on the finer points of coffee, past Folgers. And for coffee lovers who are already espresso-savvy, you’ll be the hottest place in town. The first steps in planning your coffeehouse include:

1. Setting the menu and prices.
2. Creating a business plan.
3. Scouting the competition.

Action Steps
The best contacts and resources to help you get it done

Barista training

The first essential step in starting up a coffeehouse is to educate yourself on the product and the specific industry training that it takes to be a professional barista.

I recommend: Learn all the basics of starting a coffeehouse with a six-day startup program at The American Barista Coffee School. The program will teach you how to choose your concept, design the coffee bar, construction, menu planning, recipes and pricing, operational systems, financial projections and budgets, and marketing. Another great resource for startup information on coffeehouses is the"A to Z Coffeehouse Manual" from specialty coffe magazine Fresh Cup.

Find the right bean

The main thing that sets Starbucks and its competitors apart is the taste of the coffee and espresso. Your market research should include what type of roast appeals to the majority of your customer base. This is the fun part of starting a coffeehouse, tasting the possibilities.

I recommend: Gillies Coffee has a large selection of beans from country of origin to type of roast and blend. They also offer retail packaging with your own coffeehouse label. Longbottom Coffee and Tea offers Arabica coffee beans and a wide selection of teas to retailers. Illy, the quintessential Italian espresso and coffee, is available throaugh distributors nationwide. Learn more about beans including world growing regions, roasts and coffee facts at National Geographic’s Beyond the Buzz website.

Source your products and equipment

It's important not to purchase equipment until you've decided which coffee you'll serve. Some suppliers of beans provide leased or free equipment as long as you continue to purchase their coffee.

I recommend: Greenware makes printable clear cups for iced drinks. Order cups, lids, sleeves and carriers from baristaworks.com. Espresso Supply provides barista accessories such as steamer pitchers, thermometers and carafes. Whole Latte Love sells commercial equipment including automatic or semi-automatic espresso machines, water filtration systems, bean grinders and blenders. The website enables you to find the right equipment for your coffeehouse based on a capacity indicator for each machine.

Brand yourself

Your coffee, your espresso and your name should set you apart from the competition. But there's more to branding your coffeehouse than simply a name. You need to decide on the atmosphere you want to create. Some coffeehouses encourage loitering with free Wi-Fi and comfy sofas. Will your coffeehouse cater to this crowd or do you prefer to appeal to business customers who stop in for a quick cuppa and newspaper?

I recommend: Get help from CafeMakers, a consulting firm that assists new coffeehouses in branding, barista training and marketing. The website also includes a guide to the 12 Fundamentals of Coffee Business Success. Learn how to brand yourself on your website with tips from INeedCoffee.com.

Industry trends

Keep up with industry trends, suppliers and conferences by subscribing to trade magazines and joining coffee trade organizations.

I recommend: Tea & Coffee Trade Journal, Barista Magazine, Specialty Coffee Retailer magazine, Roast Magazine and Fresh Cup Magazine will keep you abreast of coffee trends and suppliers. The Specialty Coffee Association of America and Roasters Guild are industry associations that hold national and regional competitions and trade shows. Also check out other coffee-related tradeshows from Tea & Coffee World Cup Exhibitions, www.coffeefest.com, www.specialtyfood.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You'll need to decide if you prefer a semi-automatic or automatic espresso machine. If you plan on constant lines and high volume, then an automatic espresso machine is your best bet. But don't be fooled by the term 'automatic,' however. You still have to steam the milk manually on automatic machines.
• •  Call your local, county or state department of health when planning the design of your coffeehouse. Since regulations differ from area to area, you may need to incorporate food safety regulations into the design of your kitchen area.
• •  When planning your coffeehouse, consider offering other amenities such as complimentary newspapers, wireless Internet and food items such as sandwiches and snacks.