Small Business Idea: A Coffee Shop

I love coffee.  I have a wonderful vision of sitting in a little coffee shop, serving biscotti, bagels and all kinds of coffee and tea.  People are chatting, using their laptops, relaxing.  And I’m having a great time chatting, making fantastic-smelling and -looking latte’s, and raking in the money.  Owning a coffee shop is a great small business idea. 

Have you ever thought about running a coffee shop? You may wonder about the market for coffee during the downturn.  The 2009 coffee survey prepared by the National Coffee Association shows that while consumption of cups per day by consumers age 18-24 declined from 3.2 cups per day in 2008 to 2.9 cups in 2009, daily consumption of coffee beverages among consumers remained consistent in  2009 with 54% of the overall adult population partaking.

More than half of the U.S. market is still drinking coffee. While this doesn’t mean they are buying it retail by the cup, it does indicate a consistent market for coffee, despite the downturn. As a matter of fact, coffee stocks are going up, especially Starbucks, which has seen increases in stock prices recently.  So there is still room for coffee houses kiosks.

The trade association for coffee, the Specialty Coffee Association of America (SCAA), says that coffee shops/kiosks/drive-ups are a $12 billion industry in the U.S. While Starbucks might have closed stores, independent coffee shops are finding their niches and thriving.

What makes a coffee shop successful? An SCAA poll showed these characteristics to be most important:

• Coffee quality and convenient location (70% of adults cited this factor)
• Friendly and knowledgeable staff (40%)
• Variety (35%)
• Price (26%)

Do you think the speciality coffee business is (pardon the pun) running out of steam? Or will it survive the economic downturn and come back again stronger? Would you consider opening a coffee shop?