Size and Cost: Starting a coffee shop on Prime Vandra Lavel Road costs between 80 lakhs to 1 crore INR, with lower costs possible with mid-range equipment.
Space Considerations: A 2,000 sq. ft. space may be more expensive to set up, but a 1,000 sq. ft. space is considered optimal for balancing rent and customer flow.
Location: High-density areas with a mix of residential and office spaces perform better. Pure office areas limit business to weekdays.
Coffee Types in India
Arabica vs Robusta: Arabica tastes better but requires higher altitudes, which India lacks. Robusta is more viable at India's altitudes.
Climate Change Impact: As global temperatures rise, India's ability to grow quality Robusta may become a competitive advantage.
Diversity: India grows multiple coffee species like Arabica, Robusta, and hybrids.
Sustainable Practices
Sustainability attracts a niche audience; it cannot be the sole business proposition.
Hiring and Staffing
Barista and Staff Hiring: Direct approach to existing coffee shops works. LinkedIn can also be a resource.
Pay Scale: Starting pay for baristas is between 21k to 28k INR/month, with increasing demand and categorization akin to mixologists.
Equipment and Suppliers
Machine Recommendations: Brands like Lama Zoko are recommended. Quality machines reduce variability but are costly.
Supplier Recommendations: 31 Engineering is a reliable distributor.
Avoid Indian Machines: Generally, they lack quality and consistency.
Delivery vs In-Store Sales
Delivery Revenue Share: Around 20-35% of revenue comes from deliveries, despite potential issues with coffee quality.
Learning from International Markets
Machine Sourcing: Start with local machines for ease of service, then transition to American machines for higher quality.
Market Trends: Look to the US, Japan, and South Korea for product trends.
Drink and Equipment Recommendations
Non-Alcoholic Beverages: Fever Tree is popular in India. Strange Love from Australia provides good product insights.
Alternative Coffee Shops: Favorites include Quick Brown Fox in Delhi and Gry Soul in Bandra.
Conclusion
Consider the balance between initial investment, location, and equipment quality.
Stay informed about climate change implications and market trends.
Build a unique proposition beyond sustainability to attract and maintain a customer base.