How Much Money Does it Take to Start a Coffee Shop: Budget & Costs 101

This guide will help you learn more about the costs involved, what influences how much you’ll have to pay, the process for opening a shop, ways to save money, and more.

June 7, 2025
Blue “We Are Open” sign in front of a moka pot, coffee cup, coffee beans, and shelves in a cozy café.

Generally, opening a coffee shop costs between $50,000 and $300,000, though some may be higher or lower in certain cases.

A small kiosk or food truck in a quiet town would be on the lower end while opening a large coffee shop in a bustling area of a major city would be on the higher end. The most expensive option is opening a franchise with a popular coffee chain, which can cost closer to $1 million.

However, there are a few ways to reduce costs while opening and operating your coffee shop, such as doing things yourself, starting small, reducing waste, and finding a partner. 

Factors That Influence the Cost of Opening a Coffee Shop

Coffee shop counter with espresso machine, pastries, two barstools, and soft hanging lights in a cozy setup.

Let’s take a closer look at the factors that dictate how much opening a coffee shop usually costs.

Location

The location of your coffee shop has a major impact on how expensive it will be. Different cities have vastly different rent and lease costs and varying utility prices. 

In some cities or towns, you may be able to rent a decent-sized space for a few thousand dollars a month, whereas in others, you may need to pay over $10,000 every month for a similar space.

Even the location within a city may lead to higher or lower costs. For example, renting space in an area with limited foot traffic is much cheaper than renting somewhere with thousands of people passing daily. But that lower rent may mean you're sacrificing more random passers-by through the door for a cup of joe.

Size of Your Coffee Shop

Of course, the size of the shop also determines how much it’ll cost. In general, the larger the space is, the more expensive it will be. Many commercial spaces are priced by the square footage, so every bit of extra space in your coffee shop may cost you.

In addition to higher rent and utilities, you'll also need to spend more to decorate and furnish a larger space. You'll want to spend serious time thinking about your coffee shop's layout, size, and design before deciding on a space. If not, you could end up paying for a space much larger than you actually need.

Equipment

Opening and running a successful coffee shop requires a collection of different pieces of equipment, such as:

  • Coffee machines (the exact types depend on the brewing methods you’d like to offer in the shop)
  • Grinders
  • A point-of-sale (POS) setup
  • Refrigerators 
  • Ice machine
  • Dishwashers
  • Shelves and cabinets
  • Blenders

Not every coffee shop will need every type of equipment, but they will need a few. Costs vary depending on the quality of the equipment you pick out, but it's not uncommon to spend thousands of dollars (if not tens of thousands).

Ingredients & Inventory

You’ll also need to stock up on inventory and the necessary ingredients. In general, you’ll want to pick up a range of options, including dark roast coffee beans, medium roast beans, and lighter roast beans.

Unfortunately, the coffee bean market is volatile, with prices steadily increasing. The drink is more popular than ever, and growing gets harder due to climate change. According to a recent study by the Food and Agriculture Organization (FAO) of the United Nations, world coffee prices rose by 40% in 2024. The organization also said that prices may continue to rise further throughout 2025.

With how volatile coffee pricing can be, it’s more important than ever to factor in the price of ingredients when deciding how much it costs to open a coffee shop. 

In addition to beans, some other inventory you’ll need to keep stocked may also have fluctuating prices:

  • Milk
  • Cream
  • Sugar
  • Nut milks
  • Cups and mugs
  • Lids
  • Napkins
  • Sleeves
  • Cleaning supplies

Of course, if you serve any food at your coffee shop, you’ll also need to stock up on cutlery and plates, ingredients for the food you make, toasters and ovens, to-go bags, and more.

Staff

For your coffee shop to open and run successfully, you'll need to hire a team. Even if you plan on working in your shop full-time, you'll need at least a couple of employees to help on your days off, if you get sick, or need support on busy days.

A barista's hourly wage varies throughout the country but is often between $15 and $20 an hour. In addition to the payroll, there are other staff-related costs you’ll need to pay for, including training, uniforms, benefits and insurance, and even the act of hiring staff itself.

Decor & Furniture

On top of the necessary equipment to operate that we covered earlier, you’ll likely want some decor and furniture in your coffee shop to help it not only function properly but also look amazing. 

Some examples include:

  • Chairs and tables
  • Signage
  • Art 
  • Lighting
  • Paint
  • Flooring
  • Plants

These prices vary depending on how much of this decor you buy and its quality. For example, you can save money by having a minimalistic and basic design, but you could also spend thousands on outfitting your coffee shop with high-quality modern decor and furniture.

Some coffee shops elect to hang local artists’ work as their decor, giving the artists exposure and potential sales. Sometimes (but not always), the shops charge a commission fee, between 20 to 30% of sales. This can help offset some decor expenses and make you a bit more money, though it’s hard to factor in something as inconsistent as art sales when considering budgets.

Of course, if you’re opening a drive-through-only coffee window or small kiosk, you may not need to worry much about decor and furniture.

Permits & Licenses

You’ll also need to pay for the proper licenses and permits before opening your shop to ensure it’s operating legally. The exact permits and licenses you’ll need depend on what your coffee shop offers, but here are a few things you may need to secure:

  • A business license
  • A sales tax license
  • Insurance
  • A sign permit
  • A Department of Health permit
  • A food-handling permit

If you're not sure exactly what permits or licenses you need to open your shop legally and successfully, don't hesitate to contact a professional in your area to learn more.

Marketing

The type of marketing strategy you use and how much advertising you do also directly tie into how expensive the coffee shop is. Some shops open with zero paid marketing, while others pay thousands every month. There’s no real right or wrong choice; it all depends on what you believe is best for your business.

However, the average coffee shop or restaurant generally spends somewhere between 3 and 6% of its annual revenue on marketing every year. So, a smaller company with $100,000 in annual sales may only spend $3,000 to $6,000. On the other hand, corporations like Starbucks spend over $500 million on marketing in a year.

Some lower-cost options for marketing include word of mouth, passing out flyers, having eye-catching signage, building a website, and using social media. If you want to spend a bit more money, some effective high-cost options include advertising on TV or billboards and hosting events.

Some strategies, like influencer marketing, come with flexible costs depending on how you approach them. For example, if you work with smaller local influencers, getting the word out may not cost you much. But it'll be much more expensive if you want to work with an influencer with millions of followers and fans.

Maintenance & Repairs

While maintenance and repair costs may not appear as soon as you open, you’ll eventually have to pay for them. You’ll want to plan for these costs before opening to ensure you can afford them when they inevitably come up. 

Exact costs vary, but budgeting a few thousand dollars annually for maintenance and repairs is a good idea. Some suggest budgeting 2 to 5% of your yearly revenue towards maintenance and repairs.

The Process for Opening a Coffee Shop

Business proposal, money stacks, coins, cappuccino, and coffee cup symbolize coffee shop opening steps.

Now that you’re aware of the average cost of opening a coffee shop and what factors influence the total cost, let’s go through some of the steps you need to take.

1. Create a Business Plan

The first step in opening any business, coffee shop or otherwise, is building a business plan. It details and outlines your strategies, goals, and the steps you need to take. It serves as a roadmap for your business and should include information like market research, competitor analysis, a company description, and marketing strategies.

While creating this plan, you should also research how much coffee shops make so you can set your expectations and know what you're getting into.

2. Secure Your Funding

Next, you'll need to decide how to get the funds you need to start the business. If you've been saving up for a while, you may be able to use your savings to get the business off the ground. If not, you might need to take out a loan or get help from family or friends.

You can also try to crowdfund your idea or find a partner or investor to help cover some of the costs.

3. Find a Location

With your business plan figured out and having the funds you need, the next step is to find the perfect place for your coffee shop. Look for a space that fits your vision for the shop in style, size, and budget. Working with a real estate agent familiar with commercial spaces may help you find the right spot.

4. Getting Set Up

Once you’ve chosen and secured a location, you should start setting it up. This includes purchasing and putting together your equipment, buying the best coffee beans and other inventory, and designing the space with furniture and decor.

5. Hire a Team

Before opening your doors, you’ll need staff members to help you run the business. You can post job ads to attract workers or even use social media to share that you’re looking for employees. Once hired, make sure your team is trained and understands their roles before you open, to ensure things go as smoothly as possible.

6. Get the Right Permits

Before you can open, you must secure all the permits and licenses. You may want to start this process as soon as possible so you're not waiting for a license or two, delaying your opening.

7. Market Your Location & Open

Once you’re fully compliant, the space is ready, and your team is trained, the last remaining step is to open your doors and start operating. Of course, before you open, it may be a good idea to market your shop to drum up some interest from potential customers and get the word out about your coffee shop.

Ways to Save Money When Opening a Coffee Shop

Coffee cup filled with gold coins and coin stacks.

Even when opening a simple and basic coffee shop, it still generally costs tens of thousands of dollars to start. But thankfully, there are a couple of ways you can save some funds in the process.

Start Slow

By starting slow, you can "test" the business before diving in headfirst. Some ways to start slowly include offering a smaller menu, having basic decor, and hiring a small team. Then, depending on your needs and the business's success, you can expand your products over time.

If you put the horse before the carriage by doing too much too quickly — like having a huge menu with complicated, expensive ingredients — you may waste time, money, and resources.

DIY When Possible

The more you can do yourself when setting up and opening your coffee shop, the less you'll spend. If you can handle things like painting, installing some equipment, and designing the space, you have the potential to save thousands.

Of course, while DIYing some things can save you money, it’s also important to remember your limits. If you try to do something far out of your skill set, you may end up doing more harm than good and need to hire a professional anyway.

Buy in Bulk

Many suppliers offer discounts on inventory, ingredients, and equipment if you buy large amounts at once. You can buy coffee in bulk and other essentials like cups, sugar, syrups, and more. Doing this may cost more initially than buying small amounts, but it generally saves you money in the long run.

Of course, only buy things in bulk if you’re confident you’ll use them all. If not, you could end up wasting money and throwing things away.

Find a Partner & Investor

Instead of funding the entire business on your own, you can often cut your costs in half by finding a partner or investor to work with. This could be an active partner that helps you with the day-to-day operations and shares your passion, or someone who fronts some funds to operate in return for a portion of your profits or revenue.

Frequently Asked Questions: Opening a Coffee Shop

Here are a few common questions about opening a coffee shop, along with their answers.

1. How Much Does it Cost to Open a Coffee Shop?

While the cost can vary widely, opening a coffee shop is generally between $50,000 and $300,000.

2. What Factors Influence the Cost of Opening a Coffee Shop?

Some factors include the location, the size, the decor, how much you spend on equipment, your marketing costs, your ingredients, how big the team is, and more.

3. Is Opening a Coffee Shop Profitable?

While every company is different, opening a coffee shop can be a profitable business opportunity if it's done correctly.

4. Where Can I Get the Funds I Need to Open a Coffee Shop?

To secure funding to open your coffee shop, you can use personal savings, take out a loan, ask friends or family for help, work with a partner, take on investors, or even use crowdfunding.

5. What Kind of Equipment Should I Buy to Open a Coffee Shop?

When you want to open a coffee shop, you'll need to buy coffee makers or machines, grinders, a point-of-sale system, a fridge, shelves, cups, glasses, and other items like decor, chairs, coffee tables, and a dishwasher.

6. How Long Will It Take to Open a Coffee Shop?

It often takes anywhere from a couple of months to a year and a half to open a coffee shop, depending on the amount of work needed and how quickly the process of getting licenses and permits is.

7. What’s the Biggest Cost of Opening a Coffee Shop?

In many cases, the biggest expense when opening a coffee shop is securing a location, as renting or leasing a space can often cost thousands of dollars every month.

8. Do I Need a Permit to Open a Coffee Shop?

Yes, you'll generally need some permits and licenses to open and operate a coffee shop. This includes a business and sales tax license and permits from the Department of Health for food handling and your sign.

9. Are There Ways to Save Money When Opening a Coffee Shop?

Yes, if you're looking to open a coffee shop on a budget, a few ways to cut costs include starting small, doing some of the work or repairs yourself, buying bulk supplies, reducing waste, and finding a partner or investor to work with.

10. How Should I Market the Coffee Shop?

There are a variety of ways you can market your coffee shop. This includes email marketing, social media marketing, using word of mouth, partnering with local influencers, hosting events, sponsoring events, and having a strong online and social media presence.