1. Why Knowing Café Startup Costs Is Important
Before opening your café, you need a clear budget. This ensures:
- You secure the right amount of funding.
- You avoid unexpected financial surprises.
- You plan for profitability from day one.
2. Average Cost to Start a Café
The cost to start a café in the UK generally ranges from:
- Small takeaway coffee shop: £20,000 – £50,000
- Medium sit-down café: £50,000 – £120,000
- Large, fully equipped café: £120,000 – £250,000+
3. Key Factors Affecting Startup Costs
- Location (high street vs. suburban area).
- Size of the premises.
- New vs. second-hand equipment.
- Whether you buy or lease the property.
- Level of interior design and branding.
4. Breakdown of Café Startup Costs
Premises and Lease
- Rent and deposit: £5,000 – £25,000 (depending on location).
- Renovations and fit-out: £10,000 – £50,000+.
Equipment
- Espresso machine: £3,000 – £15,000.
- Coffee grinder: £500 – £2,000.
- Brewing equipment: £500 – £2,000.
- Refrigerators and freezers: £1,000 – £5,000.
- POS system: £500 – £2,000.
- Tables, chairs, décor: £5,000 – £20,000.
Licences and Permits
- Food hygiene registration: Free.
- Premises licence (if selling alcohol): £100 – £1,900.
- Music licence: £200 – £500 per year.
Initial Stock
- Coffee beans, milk, syrups: £500 – £2,000.
- Pastries, snacks, or food items: £500 – £3,000.
Staffing Costs
- Barista wages: £18,000 – £25,000/year (full-time).
- Training costs: £200 – £1,000 per employee.
Marketing and Branding
- Logo and signage: £500 – £2,000.
- Website and social media setup: £500 – £3,000.
- Opening promotions: £300 – £1,000.
Contingency Fund
- At least 10–20% of your total budget for unexpected expenses.
5. Example Startup Budget for a Small Café
- Rent & deposit: £12,000
- Renovation: £15,000
- Equipment: £18,000
- Licences & permits: £1,000
- Initial stock: £2,000
- Marketing: £1,500
- Contingency: £5,000
Total: ~£54,500
6. How to Reduce Café Startup Costs
- Buy quality second-hand equipment.
- Start small with a takeaway kiosk before scaling.
- Lease equipment instead of buying.
- Use local suppliers to reduce stock costs.
- DIY some renovations if possible.
7. Funding Options for Starting a Café
- Personal savings.
- Bank or business loans.
- Government startup loan schemes.
- Crowdfunding campaigns.
- Private investors or business partners.
8. Ongoing Monthly Costs After Opening
- Rent and utilities.
- Staff wages.
- Stock replenishment.
- Marketing and promotions.
- Maintenance and repairs.
Frequently Asked Questions
Q1: Is it cheaper to buy an existing café?
Yes, often cheaper than starting from scratch, but check for hidden repair or upgrade costs.
Q2: How long before a café becomes profitable?
Usually 6–18 months, depending on location, pricing, and customer loyalty.
Q3: Can I start a café from home?
Yes, but you must comply with food business regulations and zoning laws.
Q4: Do I need a business plan before starting a café?
Yes, it’s essential for budgeting, funding, and operational planning.
Q5: What’s the most expensive part of starting a café?
Typically equipment and renovations.
Q6: Can I run a café with no staff?
Yes, if it’s a small operation, but it limits service capacity and opening hours.
Conclusion
The cost to start a café varies widely based on size, location, and setup style. While a small takeaway coffee shop can start from around £20,000, a full-service café can exceed £120,000. Careful budgeting, cost-saving strategies, and a strong business plan will give you the best chance for a successful launch.