How Much Does it Cost to Start a Coffee House?

Are you dreaming of opening your own coffee house? You’re not alone! Coffee culture is booming, and starting a coffee shop sounds exciting. But one big question often comes up: How much does it cost to start a coffee house? 

According to our Deep Research, the average cost to start a coffee house is approximately £60,000 to £22,0000, but it depends on size, structure, inventory and location as well. Today, We’ll try to break down the cost of a coffee house to make you guys more comfortable. 

How Much Does it Cost to Start a Coffee House?

Initial Inventory and Other Supplies

When you are starting a coffee house, you need to buy some basic things before you can open your doors to customers.
This is called your initial inventory and supplies. It’s like filling your shop with everything you need to make coffee, serve people, and keep the place clean.

Here’s a simple list of what you’ll need:

  • Coffee beans and tea 
  • Milk and syrups
  • Cups, lids, and straws 
  • Napkins and stirrers 
  • Cleaning supplies 
  • Takeaway bags and boxes – If you plan to sell pastries or snacks to go.

How much does it cost to start a coffee house when it comes to inventory?
You should plan to spend around £2,000 to £6,000 on your first big shopping trip.
It might seem like a lot, but these are things you must have to run your shop properly.

Tip

Buy a little extra of the small supplies (like napkins and straws) because they run out faster than you think!

What Do Coffee Shop Startup Costs Include?

Location

Your location will be one of your biggest costs.
Prices vary depending on whether you rent or buy.
Typical rent for a small coffee shop in the UK can range from £800 to £3,000 per month.

Key things to consider:

  • Foot traffic
  • Nearby businesses
  • Parking space
  • Size of the area

A high-traffic location might cost more, but it usually means better sales!

Projected Sales

When planning costs, you must estimate your projected sales.
Think about:

  • Daily customer numbers
  • Average spend per customer
  • Expected monthly revenue

This will help you decide how big your coffee shop should be and how much inventory you’ll need.

Equipment

Coffee equipment is essential and can be a big investment. Basic items include:

EquipmentEstimated Cost (GBP)
Espresso Machine£2,000 – £10,000
Coffee Grinder£500 – £1,500
Refrigerators£400 – £1,200
Blenders£200 – £500
Ovens / Toasters£300 – £1,000

In total, expect to spend around £5,000 to £15,000 on equipment.

How much does it cost to start a coffee house? Well, a big part of it goes into buying high-quality machines!

Drink Ingredients

Fresh ingredients are key to your success. You’ll need:

  • High-quality coffee beans
  • Milk (dairy and plant-based options)
  • Sugar, syrups, and flavorings
  • Tea varieties
  • Seasonal ingredients (like pumpkin spice or peppermint)

Monthly ingredient costs can vary but typically range from £800 to £2,000 depending on your sales volume.

Training

Don’t underestimate the power of good training.
Well-trained baristas mean happy customers!
You might spend £500 to £2,000 for professional barista training courses.

If you’re serious about running a successful shop, training costs are worth every penny.

Payroll Expenses

Hiring staff is essential as your shop grows.

Common positions include:

  • Baristas
  • Shift managers
  • Kitchen assistants
  • Cleaners

Expect to spend at least £1,500 to £4,000 per month on salaries, depending on the number of employees.

Opening a Costa Coffee Shop Checklist

Ready to get started? Here’s a simple checklist to guide you!

Create your coffee shop business plan

A solid business plan helps you:

  • Set goals
  • Plan your finances
  • Secure loans or investors

Include your vision, target customers, competition research, and a detailed budget.

Find your Coffee Shop Location

Choose a place with good foot traffic.

Check rent prices, accessibility, and nearby competition before signing a lease.

Determine your Costa Coffee Shop Menu

Decide on the drinks and food you’ll offer.
Options might include:

  • Lattes
  • Cappuccinos
  • Teas
  • Pastries
  • Sandwiches

A strong, focused Menu makes it easier to manage inventory and train staff.

Choose your coffee

Work with a trusted coffee bean supplier.

Costa Coffee, for example, is known for its rich, high-quality blends.

Good coffee keeps customers coming back!

Order your coffee shop equipment

Based on your menu, list all the equipment you need and place your orders early.

Determine your coffee and food pricing

Make sure your prices cover costs while remaining competitive.
You can use simple formulas to set pricing margins based on ingredient and labor costs.

Craft your Unique Coffee shop brand

Your brand should reflect your vibe, values, and target audience.
Think about:

  • Logo design
  • Colour theme
  • Interior decoration
  • Staff uniforms

Branding helps you stand out in a busy market!

Choose your accounting strategy

Decide how you’ll manage finances:

  • Hire an accountant
  • Use accounting software
  • Track every sale, expense, and tax

Financial organization is crucial for long-term success.

Create your coffee shop’s marketing strategy

Marketing helps you attract and retain customers.
Ideas include:

  • Social media promotion
  • Local events
  • Loyalty programs
  • Paid ads

A strong marketing strategy answers not just “how much does it cost to start a coffee house” but also how to make it profitable.

Choose a POS system

A Point of Sale (POS) system makes it easy to manage:

  • Orders
  • Payments
  • Inventory

Look for POS systems that are user-friendly and affordable for small businesses.

Start the staff hiring process for your coffee shop early

Start hiring and interviewing early to ensure your team is ready before the opening day.

Train your staff

Well-trained employees create a great experience for customers.

Invest time in customer service and barista training.

Conclusion

Starting a coffee shop is exciting, but it comes with a lot of planning and investment.
So, how much does it cost to start a coffee house? On average, in the UK, it can cost anywhere from £30,000 to £100,000 depending on your location, size, and goals.

Here’s a quick recap:

  • Rent and location: £800–£3,000 monthly
  • Equipment: £5,000–£15,000
  • Inventory and ingredients: £2,000–£6,000
  • Staffing and payroll: £1,500–£4,000 monthly
  • Training, marketing, branding: Variable

Planning carefully, investing wisely, and building a strong brand can set you on the path to success.

FAQs – Cost to Start a Coffee House

A coffee house can be very profitable if you manage it well. Many coffee shops make good money because coffee has a high profit margin and loyal customers who come back often.

To start a coffee business, you usually need between £30,000 to £100,000. The cost depends on your location, shop size, and how fancy you want your coffee house to be.

Making coffee at home is much cheaper! On average, it costs around £0.20 to £0.50 per cup, depending on the coffee beans and equipment you use.

Opening a small café can cost between £20,000 to £50,000. Costs include rent, equipment, furniture, ingredients, and setting up the shop.