Common Mistakes Café Start-ups Make And How To Avoid Them

Opening a café is an exciting and creative endeavour. Whether you envision a cute tea and cake shop, a hip espresso bar, a community hub, or a high-altitude cafe brand identity and experience, cafés have a special place in the hospitality industry. However, knowing how to run a successful café can be difficult as it comes with unique challenges that, if not addressed, can quickly derail even the best-laid plans.

Perhaps more than any other type of hospitality endeavour, people tend to romanticise the idea of working with coffee and running a coffee shop. However, this is a business like any other, with its own pitfalls—and the smaller scale of many cafés can often make them even more vulnerable. Here are eight common mistakes café startups make and our cafe management tips on avoiding them to ensure your café becomes a thriving success.

1. Underestimating startup costs

Equipment like espresso machines, grinders, and refrigeration units and the installation of these come with significant costs. Pre-costs like making the shop fit for purpose, menu tastings, staff training, legals, H&S compliance, any recruitment fees all add up. Add to that rent, utilities, staff wages, and inventory, and it’s easy to see how underestimating expenses can lead to financial strain. All this before any aspirations of interior design. 

How to avoid it:

• Create a detailed startup budget, including equipment, interior design, licensing, and ongoing costs.

• Create a mobilisation timeline to be clear how much ‘non-trading’ time there will be from lease agreement / property purchase to first day of trading.

• Factor in a contingency fund for unexpected expenses like repairs or price fluctuations in coffee beans.
• Work with suppliers to negotiate favourable terms for essential item.

2. Choosing the wrong location 

A café’s success is often tied to its location. A space that doesn’t align with your target market or lacks foot traffic can hinder your growth.

How to avoid it:

• Conduct market research to understand your ideal customer’s habits and preferences.
• Look for locations with strong foot traffic, good visibility, and accessibility.
• Assess competition in the area to identify gaps your café can fill.

3. Overcomplicating the menu

While it’s tempting to offer a wide variety of options, an overly complex menu can overwhelm customers and strain your kitchen.  One of the major cafe management tips that is becoming more commonly known is that when owners actually create their menus they find it hard to make edits. 

How to avoid it:

• Focus on a concise menu of high-quality items.

• Don’t try and please all. Stay true to the brand. 

• Start with core offerings like specialty coffees, teas, and a small selection of food.
• Introduce seasonal items to keep your menu fresh without overloading your team.

4. Neglecting the customer experience

A great café is about more than coffee; it’s about creating an inviting atmosphere where customers feel valued.

How to avoid it:

• walk the customer journey to experience it from their perspective and look for opportunities to improve it.
• put thought into various seating pockets or types to allow people to enjoy the space in a comfortable and pleasing environment. 

• Maintain full perspective at all times – over focus on planning can make things too detail focused and mechanical as much as under-planning can cause chaos. 

• Train your staff to deliver exceptional service, from welcoming greetings to personalised recommendations.
• Regularly gather feedback to identify areas for improvement. Keep staff informed.

5. Ignoring brand identity

In a competitive market, a strong brand identity is essential for standing out. Without clear and consistent branding, it can be difficult for customers to connect with your café. Take inspiration from other successful brands on how to run a successful café and position yours for success among them.

How to avoid it:

• Develop a unique brand story that reflects your values and vision.
• Ensure consistency in your logo, colour scheme, and tone across all customer touch-points.
• Use social media to showcase your café’s personality and engage with your audience.

6. Mismanaging cash flow

Even with steady sales, poor cash flow management can put a café in jeopardy. Seasonal fluctuations in demand can exacerbate the issue.

How to Avoid It:

• Have a cashflow forecast for the first year (at least) and update it regularly so things like VAT and PAYE payments for example don’t come as a surprise.

Monitor daily revenue and expenses to identify trends and adjust accordingly.

• Manage inventory carefully to avoid over-ordering or wastage.
• Offer loyalty programs or promotions to encourage repeat visits during slower periods.

7. Skipping marketing efforts

Opening your doors doesn’t guarantee customers will come. Many café startups delay marketing efforts or rely solely on word-of-mouth, limiting their reach.

How to avoid it:

• Start promoting your café well before opening day. Use teasers on social media and connect with local influencers.
• Leverage local SEO so your café appears in online searches for “coffee near me.”
• Encourage happy customers to leave reviews on Google and other platforms.
• There is exciting new software that can integrate and create smart automated, AI and personalised marketing efforts from data your via your Epos system through the likes of apps or socials. 

8. Overlooking sustainability

Customers are increasingly prioritising sustainability when choosing where to dine. Ignoring eco-friendly practices can alienate potential customers. This is not just a lifestyle choice, its political and people will not tolerate companies ignoring the obvious anymore. 

How to avoid it:

• Use biodegradable packaging, offer discounts for reusable cups, and source ethically produced coffee beans.
• Reduce waste by tracking inventory and optimising portion sizes.
• Communicate your sustainability efforts clearly to customers.

• Create even louder in action in this area such as not using disposables at all or other radical positioning. Research what others are doing well in this area. 

The solution

Starting a café requires more than just a passion for coffee; it demands strategic planning, financial management, and a deep understanding of your market. Avoiding these common mistakes can significantly increase your chances of success.

At The Engine Room, we specialise in helping café startups like yours navigate the complexities of the hospitality industry. Our café consultants have a hands-on, people-led approach which ensures that your café has a strong commercial foundation, a clear brand identity, and the operational efficiency needed to thrive.

Whether you’re in the early stages of planning or looking to refine your existing operations, we’re here to guide you every step of the way. Get in touch or book a free 30-minute consultation to learn more about how we can help turn your vision into reality.