Why Do Cafe Startups Fail?

Why Cafe Business Fail

Get the inside scoop on: Why Cafe Startups Fail

One of the biggest questions around when it comes to a small business like a a cafe, is probably “Why do cafe startups fail?” To answer the question why do cafe startups fail isn’t cut and dry and has a variety of different reasons. Generally the reason why cafe startups fail is not one but a combination of reasons you find out about by continuing to read about why cafe startups fail.

 




Cafe startups fail often because those who start them have the wrong idea. They are not a “lifestyle” business or some get rich quick type of deal, instead a cafe is a real business that serves real customers. It is very hard work and anyone who thinks they are going to make a lot of money, especially in the beginning are more than likely to fail.

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Location, location, location, no doubt everyone has heard that before. But it is one of the key reasons why cafe startups fail. Location is key, simply put. Sometimes in order to have a very successful cafe you truly need to pay a higher rent in order to have the best location.

 

The cafe itself needs to be comfortable and easily accessible for its customers. Especially try to avoid a spot that requires customers to climb stairs, many people don’t like stairs and often many simply cannot climb them. Often cafe startups fail simply because the comfort of the customers was not taken into consideration.

 


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Cafe startups fail quite often because the owner doesn’t have a good budget or plan. As the owner one needs to know their numbers, they need to understand the taxes and pay them on time. They need to know how to manage their cash flow and need to keep on top of their business bank accounts. If the business owner is not in control of these issues, the likelihood of failure is imminent.

 

A business of any kind including a cafe must have consistent standards. Consistency is vital to customers or they will never become regular customers nor spread the word. As a business owner you need to make sure that the business opens on time each day and that the food and beverages are consistently of good quality, otherwise it will be difficult to keep a regular clientele.

 


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Poor service is a big one, even worse than a lack of consistency. If a cafe struggles to offer great service each and every time there will be no repeat business. Great service will come by hiring the right people to make the best team. It is the training that they get and the rewards that employees are given that will help you to have better overall service given to your customers. One key thing to remember if you only offer minimum wage you can expect to have a high turnover of staff, so, it might be more important to your cafe’s success to pay a little more.

 

The name of your cafe can sometimes make or break the place as well. Even if you want something that is different and catchy, you need to realize that often by being far too clever with the name of your cafe it might night draw in the people you want. The title of your cafe needs to let the potential customer know what to expect when they walk by. It needs to be inviting so they are willing to take the time to check out. The stranger the name the less likely the cafe will succeed.

 


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Not having backup funds can kill a cafe or any small business. It is always important to make sure that in case something should go wrong, something beyond your control, that you have some money on hand to help pay for unexpected expenses.

One final thing that can often cause cafe startups to fail is having a poor relationship with their suppliers. This generally means when the business owner fails to pay their invoices on time or there is a lack of communication whenever a problem might arise between the cafe and suppliers.

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