What I Learned From My Failed Coffee Shop

Summary

The speaker shares the challenges and lessons learned from running a specialty café with their sister, which opened in December 2022 but closed just a few months later in March 2023. They discuss key mistakes, including choosing a poor location and underestimating expenses. Despite putting in hard work and making quality coffee, they struggled to build a customer base in a rural area. The speaker reflects on the experience, the importance of community, and staying true to quality. They also mention their future plans, including a new product, 'The Brew Ledger,' for espresso lovers.

Takeaways

• 📅 The cafe was opened in December 2022 and closed by March 2023 due to challenges.
• 📍 The location, a small village in Cambridge, was not ideal for building foot traffic, which heavily impacted the business.
• 💸 Financial management was tough, and the lack of enough upfront capital (9-12 months of expenses) became a key reason for the cafe's failure.
• ☕ Consistency in quality was a priority, but the cafe struggled with limited equipment and resources to maintain high standards.
• 🛠️ The startup was bootstrapped, with most of the work, including renovation, done by the owner and sister to save costs.
• 💬 Building community was crucial, but it was difficult due to the rural location and the onset of winter shortly after opening.
• 🌍 Traditional digital marketing methods were ineffective in driving local foot traffic, as many village residents weren’t active on social media.
• 🧊 The cafe faced severe issues due to the cold weather, including low customer turnout and high energy costs during a national energy crisis.
• 📈 The cafe experienced slow growth, but not fast enough to sustain operations, forcing a closure after a few months.
• 📖 The owner has since pivoted to creating a product—a journal called 'The Brew Ledger' for espresso enthusiasts, which will be launched soon.

Q & A

What was the main reason for the cafe's failure?

The main reason for the cafe's failure was its location. It was set up in a small village with low foot traffic, making it difficult to attract enough customers to sustain the business.

What did the owner learn about the importance of a cafe's location?

The owner learned that location is crucial for a cafe's success. Setting up in a high-foot-traffic area or a community with an established coffee culture is essential, especially for specialty cafes.

Why did the cafe struggle to attract customers despite having quality coffee?

The cafe struggled to attract customers due to its rural location, low visibility, and the challenge of creating a community space. Additionally, marketing through social media was not very effective in reaching the local audience.

What financial mistake did the owner acknowledge when starting the cafe?

The owner acknowledged the mistake of not having 9 to 12 months of expenses saved up before starting the cafe. They underestimated the time and financial buffer needed for the business to become sustainable.

What was the second important lesson learned from running the cafe?

The second important lesson was the significance of keeping promises to customers, such as being open on time and maintaining consistent quality, as these build trust and loyalty.

How did the owner try to create a community around the cafe?

The owner organized events like coffee cupping sessions and participated in local community activities, such as the warm hub event at the village hall, to attract people and build a sense of community around the cafe.

What kind of equipment did the cafe use, and how did it impact the business?

The cafe used mid-range equipment like a La Spaziale E5 compact espresso machine and a Mahlkonig K30 grinder, which were decent but limited compared to high-end alternatives. This impacted the quality of the coffee and the overall experience they could provide.

How did the weather and timing of the opening affect the cafe’s performance?

The cafe opened in mid-December during a cold winter and an energy crisis in the UK. The cold weather discouraged people from visiting, and the cafe's inadequate heating made the environment less inviting.

What challenges did the owner face personally while running the cafe?

The owner faced personal challenges, such as the physical strain of running the cafe in the cold, resulting in 'Barista wrist,' and the emotional strain of adjusting to life back in the UK after living abroad, compounded by isolation in a rural setting.

What steps did the owner take after the cafe closed?

After the cafe closed, the owner moved to a more urban area closer to London, took a full-time job managing a successful YouTube channel, and eventually started working on a new product—a journal for espresso lovers called 'The Brew Ledger.'