Suppliers' terms and conditions

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Prices are rising every day: for coffee, food, consumables, etc. It is not easy to predict all possible crises and the dollar exchange rate for several years ahead, but you need to be prepared for such a development.

Firstly, it is worth building into the business model a leeway for price increases. For me, this is usually 5% of total expenses, which is quite enough. Secondly, have a pool of suppliers for the same product, which will allow you to always buy it at the most optimal price.

For example, we always have 2-3 suppliers in stock morocco whatsapp phone number for each position. We periodically monitor prices, request an up-to-date price list, and compare. When the current counterparty's prices are higher than others', we ask them to meet us halfway, since we have a good volume of purchases. Usually, the supplier agrees to this.

In addition, it is important to initially find good suppliers. This can be done, for example, at exhibitions that are specially organized for specialists in the HoReCa industry: PIR Expo, Prodexpo, Food Expo.

On the topic. Opening a coffee shop in the region: why this market is more interesting than Moscow

Buying a franchise
There is no guarantee that by opening a coffee shop franchise you will be able to build a well-functioning profitable business. Today, there are many shell franchises on the market, so you should carefully read the contract and evaluate the offers of franchisors.

You should definitely request reports, figures, and find out the projected profitability from the franchise seller. In catering, as a rule, profitability is at a level of no more than 20%. Anything higher may be an empty promise.

In addition, it is important to understand the expense items: how much is the royalty and lump sum, what is included in it, are there marketing fees. If so, how much are they and how often are they paid.

It is important to go to the production, visit the operating points, see what condition they are in, how the work process is organized, try the items from the menu. It is worth talking to entrepreneurs who have already bought this franchise, ask them to share feedback.

Finding a decent option may take time, but it is better to open a point a month or two later than to face the fact that you will be left alone with a non-working business. And, of course, it is also important for the future franchisee to assess his strengths: whether he is really ready to invest in the project.



A couple of final tips
To start a coffee business and make it profitable, you need to, firstly, take it seriously, not perceive it as an easy way. Secondly, you should minimize the risks associated with the listed mistakes, and for this you need to:

prepare a presentation for tenants that will help to tell about the concept of the coffee shop and stand out from the competition;
find a real estate broker who will select the best options for premises;
if possible, choose a high-traffic location for the coffee shop, develop the brand, make it attractive and recognizable;
define your positioning to differentiate yourself from your competitors;
do not use dumping in your strategy: it is better to think about effective options for promoting the point, offer some additional bonuses to guests;
do not spend money on purchasing expensive equipment; it is better to rent it at first;
don't over-inflate the menu, think through each item - this will help optimize the work of employees and reduce the percentage of write-offs;
find 2-3 suppliers for each purchased item, constantly monitor prices in order to be able to quickly change the counterparty;
include fluctuations in prices for products and consumables in the financial model;
calculate all possible expenses, both one-time and ongoing, set aside 5% for unforeseen expenses;
When choosing a franchise, carefully study and analyze the offers, choose a reliable partner-franchisor.
Of course, these are not all the issues that you will have to face when opening a coffee shop. There will probably be other difficulties, and some of them may not be avoidable. But we can minimize the risks.