 The number one thing I've always wanted to do as a kid was to build a coffee shop. Five years ago I did that and today I'm going to be sharing with you the eight tips in building a successful coffee shop. Hey, it's Wilson here, your friend in helping you build a successful profitable restaurant. Huge huge shout out for these two people out here giving us support and inspiration in creating these videos for you. If you want the shout out, make sure you guys comment in the section below. Let us know how you are doing with your restaurant business. Now without further ado, let's dive right in. Number one tip in starting a successful coffee shop is to know your audience. It is crucial for you to understand the profile of your customers so you know what to serve them and you know that they'll like it for sure. It is so detrimental to your business if you serve them something that they don't like. Someone that tailors and enjoys Starbucks coffee is very, very different than someone that enjoys Dunkin Donuts coffee. So we need to understand our customer profile in order for us to serve them what they need. And this is the reason why your customers will come back to your coffee shop again and again because you serve them exactly what they want. Second tip in building a successful coffee shop is to leverage your location. Understanding the components that makes your location unique is crucial as well. What are some of the components? Number one is visibility. Is your shop visible for drive-by traffic? If it's not, that means it's a neighborhood environment coffee shop then you need to understand you're doing business for your neighborhood. Second thing is your community. Understand what type of community you're serving within your location. If the community you're serving is in this high rise building full of office people then you know exactly the type of clients you're serving and to leverage your location properly so quick grabbing go is what you would want to do. And the third thing is accessibility. Is your location accessible by car or by transit or by walk-in? Understanding this allows you to create and garner this experience for your ideal customer by leveraging the type of location that you have. So then that way you can always have people coming into the doors and out the doors all the time. Third point is to make sure that your interiors and your food is aesthetically pleasing and what I mean by that is because people now eat with their eyes. They come in based upon the pictures that they see on Instagram, on review sites and if your interiors are not nice it's not pleasing. It's not on brand. People would not come and try out your food. Same thing with your food. It does not matter what the quality of the food is. If it doesn't look good people are not even going to come in and give your items a try. Making all your items and your interiors pretty and aesthetically pleasing is your foot in the door. That's what wins the first chance. Give you an example. A local mechanic shop recently did a complete facelift. They renovated the whole thing, took out all the equipment and built a cafe inside. And within this cafe it was modern, it was clean, it was aesthetically pleasing. On top of that their food looks amazing and that's the reason why they have lineups out the doors every single day. Although having said that the quality of the food is just meh but it is because the feeling that it gives their customers which got them tons of business. Now that you got your foot in the door and you got this aesthetically pleasing interior and food item the fourth step is to make sure that the quality of your food item is really good. Getting the foot in the door is only one step. The second step to get people to come back again is to make sure the quality of the food is good. If the quality is no good people are not going to come back and at the end of the day you're just going to spend tens of thousands of dollars on renovations and marketing yet people don't like it. That's the reason why you need to have good quality food in order for people to come back again and again and in order for you to build a long term successful coffee shop. If you guys like this video whatsoever make sure you guys hit the like button so then that way I know this is the type of content you enjoy. Now let's get back to regular programming. The fifth step in a successful coffee shop is to build a community. Now that we have people coming in again and again we want to turn these regular customers into advocates of you, into loyal fans that spreads the word for you to introduce and get people to come in and that's where the community comes in. You need to help them feel like they belong in this environment. Help them feel like that they are one of you guys and that's how you're going to be able to have them as part of your community. Build a relationship with them and that's how you're going to be able to convert regular customers into loyal fans that would always choose you over your competitors. The sixth step in a profitable coffee shop is to know your numbers. So many restaurant owners go out of business because they don't understand the numbers. They don't know what their costs of goods are. They don't know what the prime costs are. They don't know what is the labor cost. That's the reason why you need to understand your numbers. Not only in order for you to actually know which levers to pull in order to change your business, to improve your business, but also to know when someone is stealing from you, when someone or when operations and systems can be improved upon. It is all down to the numbers. The seventh tip in building a profitable coffee shop is the average order value, AOV. What does it mean? Means that how much people are paying you per transaction. As an example, in a coffee shop, how many coffees do you need to sell in order for you to make enough profits to pay rent? If every coffee you sell makes you 25 cents. That's a lot of coffees we're talking about just in order for you to make rent. And that's the reason why a lot of coffee shop owners, they have pastry, they have fruits, they have soup, they have salads, all these types of items that uplifts the average order value. And that is in hopes to get a bigger profit in their pocket. So we should always, always be looking at ways to increase the average order value in order for us to make a bigger profit. The final tip is to diversify. It is crucial to diversify and as you can see through this whole pandemic, if you only rely on dine-in service, then unfortunately most likely you're going to be out of business by now. Which is the reason why we should always diversify. Now how do you diversify? We're talking about doing catering, different events, third-party delivery apps such as Uber, Postmates, Grubhub. Check out this video if you want to learn more about the nuances and how do you leverage third-party delivery apps. And also you can actually utilize under-utilized assets within your business. Just like how Kyle did, he created a course which made him an extra $50,000 doing bartending. Which is the reason why you should always diversify and not put all your eggs in one basket. So there you go, the eight steps in building a profitable coffee shop. I know this video might be a little bit short, maybe a little bit in the surface, which is the reason why I invite you to check out our hour-long free masterclass in the link below which we talk about the three steps in building a profitable restaurant. Tons of valuable insight for you. So make sure you guys sign up, otherwise make sure you subscribe along the journey as I'll be shooting these videos for you every single week. I will see you guys in the next video.