How Much Does It Cost to Open a Cafe: Full Guide


1. Average Cost to Open a Cafe in the UK

Opening a cafe in the UK typically costs between £20,000 and £100,000+, depending on location, size, concept, and whether you’re leasing, buying, or starting from scratch.


2. Premises and Fit-Out Costs

  • Rent deposit and first month: £3,000–£10,000+
  • Shopfitting and renovations: £5,000–£30,000
  • Furniture (tables, chairs, decor): £3,000–£10,000
  • Signage and branding: £500–£2,000

Costs vary significantly by location (e.g., London vs. small town).


3. Equipment Costs

  • Espresso machine: £1,500–£5,000
  • Coffee grinder: £300–£800
  • Refrigeration: £1,000–£3,000
  • Oven, grill, or hob: £1,000–£3,000
  • Dishwasher/sink: £500–£1,500
  • POS system and till: £500–£2,000
  • Small appliances: £1,000–£2,000

Total: Expect £8,000–£20,000+ for full kitchen and barista setup.


4. Licences and Permits

  • Food business registration: Free (via local council)
  • Food hygiene training: £50–£200 per person
  • Music licence (PPL/PRS): £200–£500/year
  • Alcohol licence (if applicable): £100–£1,900
  • Business insurance: £300–£800 annually

5. Stock and Supplies

  • Initial food and drink stock: £1,000–£3,000
  • Packaging, cups, and napkins: £500–£1,500
  • Cleaning supplies: £200–£500

6. Marketing and Branding

  • Logo and branding design: £300–£1,000
  • Website and domain: £500–£2,000
  • Social media marketing: £200–£1,000 (initial launch)
  • Local advertising or flyers: £100–£500

7. Staffing Costs

  • Wages for baristas/kitchen staff: £10–£13/hour
  • Initial wages buffer (1–3 months): £5,000–£10,000
  • Uniforms and training: £500–£1,000

8. Legal and Professional Fees

  • Accountant or business consultant: £500–£2,000
  • Legal fees (leases, contracts): £500–£1,500

9. Contingency Budget

Set aside 10–20% of your total budget for unexpected costs:

  • Delays in fit-out
  • Extra staffing needs
  • Equipment repairs or upgrades

Frequently Asked Questions

Can I open a cafe with £10,000?
It’s challenging but possible with a very small setup, mobile unit, or kiosk and second-hand equipment.

Is it cheaper to buy an existing cafe?
Yes, sometimes. You may save on equipment and permits but pay a premium for goodwill or brand.

Do I need a licence to sell coffee?
You need to register as a food business and follow hygiene standards, but no specific licence just for coffee.

What’s the biggest cost in opening a cafe?
Typically, rent, equipment, and fit-out costs make up the bulk of initial expenses.

How long before I make a profit?
Many cafes take 12–18 months to break even, depending on foot traffic, pricing, and cost control.

Can I get funding to open a cafe?
Yes. Options include Start Up Loans, business grants, crowdfunding, and personal investment.


Conclusion

The cost to open a cafe depends on many variables, but budgeting between £30,000 and £70,000 offers a solid foundation for most small UK cafes. With smart planning, cost control, and community engagement, your cafe can be both a fulfilling and profitable venture.

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