When you’re somebody who has always loved books and coffee, you’ve probably wondered how to start a bookstore cafe and make your small business dreams come true. But what exactly does opening a cafe bookstore entail?
Our guide will take you through the details so that you can have a clear vision for how to get cozy with books and brews in your community.
What is a bookstore cafe?
A bookstore cafe is a hybrid business that combines elements of a coffee shop and bookstore. It offers a cozy atmosphere where book lovers can browse, purchase books, and enjoy coffee and snacks.
Imagine a space where shelves of books line the walls, and the aroma of freshly brewed coffee fills the air. Customers can lose themselves in a good book while sipping a latte or nibbling on a pastry.
This type of reading cafe business caters to both book enthusiasts and coffee lovers, creating a unique environment that appeals to a wide range of customers. The combination of a bookstore and cafe provides multiple revenue streams, making it a potentially lucrative venture. Whether someone wants to find their next great read or simply relax with a cup of coffee, a bookstore coffee shop offers a welcoming space for both.
Benefits of opening a bookstore cafe.
When your area is already full of cafes or bookstores, opening a bookstore cafe offers several advantages that can make your business stand out.
- Cater to diverse customers. You can appeal to a diverse customer base of book lovers and coffee enthusiasts, which could bring a steady stream of visitors who come for the book but stay for the coffee, or vice versa.
- Generate income through multiple revenue streams. Book sales and cafe offerings provide two distinct sources of revenue, which can help stabilize your income. When one side of the business experiences a slow period, the other can help balance it out, reducing financial risk and increasing the profit potential.
- Foster a sense of community. Your bookstore cafe can become a gathering space for like-minded individuals. Hosting book clubs, author readings, and other events can create a loyal customer base that sees your cafe as more than just a place to buy books or coffee. It becomes a social hub where people connect over shared interests.
- Offer a unique experience. A bookstore cafe offers a unique experience that sets you apart. Customers enjoy the convenience of browsing books and enjoying a coffee in one location. This combination creates a memorable experience that encourages repeat visits and word-of-mouth referrals.
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How to start a bookstore cafe in 9 steps.
To start a book cafe, you’ll need to know both how to open a bookstore and how to open a coffee shop. That way, your bookshop cafe will be able to succeed in both sides of its business model. Luckily, starting a business involves many shared steps. Here’s what you need to do to make your dream a reality:
Step 1: Conduct market research.
Market research is essential to any small business idea. Before you invest in everything involved with how to open a bookstore cafe, you want to know if book cafes are even profitable in your area. When you research, keep track of:
- Your target audience and their preferences.
- Local competitors or similar businesses, including other bookstores and cafes, to see what they offer and if you can fill any gaps.
- Trends in the book cafe space to understand what’s popular.
- Use online research, surveys, and focus groups to gather data from consumers as well as external sources like associations in your industry. That way, you can make informed decisions about your business strategy, menus, and pricing.
Step 2: Create a business plan.
Every business needs a business plan, and yours is no different. When you consider how to open a coffee shop bookstore, you need to outline a clear vision for your:
- Bookstore cafe concept
- Target audience
- Unique selling proposition—i.e., what your coffee shop and bookstore bring that others in the area don’t
You’ll want to make sure your business plan contains a detailed financial plan including startup costs, projected revenue and expenses. On top of that, make sure your marketing strategy and operational plan are described as well. Your business plan will be your north star as well as the model you use to secure investors and funding.
Step 3: Secure funding.
Speaking of funding, do you know how much it costs to start a business? When you really look at the costs, you’ll want to make sure you can cover them before opening your business—otherwise, your business won’t be sustainable. For a business that does both, you’ll need to consider the costs of how to open a bookstore as well as how to start a cafe.
Once you have a budget, you’ll need to acquire capital through methods like:
- Personal savings and the support of family/friends
- Business loans (term loans, SBA loans, equipment financing, short-term loans, or a line of credit)
- Grant funding through a non-profit or local government
- Partnering with a private investor for a share of profits
- Crowdfunding through GoFundMe or Kickstarter
The clearer your business plan and financial projections, the more likely you are to be approved by lenders.
Step 4: Choose a location.
Coffee shop bookstores are especially dependent on location, since they typically cater to the local neighbourhood. Look for areas with high foot traffic, such as busy shopping centers, office districts, or near colleges, and make sure the location is visible and accessible. Be sure to consider whether many businesses like yours already exist in the area.
You should also consider whether the demographics of the area aligns with your target market. If the people passing by wouldn’t be interested in your business, it doesn’t matter how many there are.
Finally, make sure the space itself fits your needs. You’ll need enough space to stock your bookshelves as well as ample space for customers to relax and enjoy their coffee. Try to negotiate favorable lease terms and ensure the space meets health and zoning regulations. And don’t forget to consider whether the space will accommodate the growth of your business.
Step 5: Obtain permits and licenses.
While not a fun step for most, this one is vital to keep your business operating above board. To make sure regulations don’t kill your dream before it’s barely taken flight, make sure you have all the appropriate licenses and permits to run your business. This might include:
- EIN (Employee Identification Number)
- Business license
- “Doing Business As” License (DBA)
- Retail Food Service License
- Resale License for Sales Tax
- Sign Permit
- Insurance
- Food Handler’s Permit
- Building Health Permit
- Live Entertainment License
Other licenses might apply depending on your location, so be sure to do your research. Remember that you can always consult the U.S. Small Business Administration as a resource when you’re unsure.
Step 6: Establish supplier relationships and obtain your supplies.
When you’re selling both books and coffee, you want to make sure you’re building all the partnerships you need. Learn how to source what books you keep in stock and consider what cafe goods and coffee you want to serve to your customers.
You’ll also want to ensure you have all the equipment you need to provide the full bookstore cafe experience. That means obtaining:
- Bookshelves and display units
- Point of Sale (POS) system
- Coffee makers, grinders, and other cafe equipment
- Refrigeration and food preparation equipment
- Comfortable seating and tables
- Inventory management tools for both books and cafe supplies
Step 7: Design your bookstore cafe.
This might have been the first part that came to mind when you were coming up with your business idea: the design of your book cafe! Here are a few factors you should consider when designing your bookstore cafe:
- Be unique. Creating a theme or niche that sets your bookstore cafe apart starts with understanding what makes your business unique. Whether it’s a focus on local authors, a genre-specific collection, or a vintage-inspired decor, your theme should reflect your passion and attract like-minded customers.
- Integrate the bookstore and cafe portions. Designing a layout that seamlessly integrates the bookstore and cafe spaces is crucial for creating a comfortable and inviting atmosphere. Map the flow of the space to see if customers can easily navigate between the bookstore and cafe areas without feeling cramped or confused. Use furniture and decor to define different zones while maintaining a cohesive look. For example, you might use bookshelves to create cozy reading nooks or place cafe tables near large windows for natural light.
- Curate your books. Having a book selection that appeals to your target audience encourages repeat visits, but it involves knowing who your customers are and what they want to read. Conduct surveys or engage with your community to understand their preferences. Stock a mix of bestsellers, classics, and niche genres that align with your theme. Regularly update your inventory to keep it fresh and exciting. Consider featuring local authors or hosting book signings to create a personal connection with your customers.
- Develop a complementary menu. Your menu should reflect the ambiance and theme of your space. If your theme is cozy and vintage, consider offering classic coffee drinks and homemade pastries. For a modern, eclectic vibe, you might include specialty lattes and trendy snacks. Pay attention to dietary preferences and offer a variety of options, including vegan and gluten-free items.
Step 8: Hire and train staff.
To provide a proper customer experience, you’ll likely need to hire staff to keep your business running. This means sourcing and hiring baristas, cashiers, and other employees like inventory managers and back office staff.
Think through the types of employees you need and draft a job description for each. You can reference templates online like this barista job description or see what competitors are posting to ensure your postings are competitive.
You can make the hiring process easier and more efficient using employee hiring and onboarding tools like Homebase, by automatically posting ads to job boards, tracking applicants as they work through the interview process, and creating and deploying employee onboarding programs for new hires.
Step 9: Create a marketing and opening strategy.
You’re almost there! Before you open your doors, make sure to launch your marketing campaign for your bookstore cafe following your marketing plan. That way, customers will have awareness and buzz for your store before it’s even open. Try these strategies to make sure you have customers lining up outside on opening day:
- Create a social media presence to build hype and a digital community
- Advertise in local newspapers, flyers, and through the BIA
- Collaborate with other businesses in town to spread the word
- Host an opening day event with discounts, prizes, and other exclusive offers
- Make engaging signage that catches the eye and aligns with your brand
- Partner with local community groups or authors to be a host for their events
Whether you use the above options or other ideas, just make sure that your messaging is unified and on brand. That way, customers will know exactly who you are, what you’re about, and where to find you.
Brew up a book cafe with the help of Homebase.
Now you’ve got all the steps you need to build your bookstore cafe. But you may have noticed that along the way, you’ll need both people and tools to help make the process of starting a business easier and ensure all the work gets done.
That’s why Homebase was made for small business owners like you. Our all-in-one team management tool is designed for the hourly employees you’ll likely employ at your book cafe, and makes it so that the administrative work gets automated. From scheduling to time tracking, payroll, and more, we can help you make work easier. Get started today to see how we can help you make your small business dream a reality.
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Homebase Team
Remember: This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.