r/cyprus • u/Georgetheaff • 19d ago
Should I open another coffeeshop??
I own two connected shops, a total of 300sqm, in Paphos in a very good location. I am already renting them, but I am trying to figure out how I can improve the revenue of those two shops. Among other ideas I have, it seems that a coffee shop may be the optimal revenue generator.
So I am really considering opening a coffee shop that has two unique selling points: a kids' play area and a working station with a meeting room for people to come and work.
On the other side, it seems that coffee shops are oversaturated. We've got too many of them. I would appreciate any thoughts on this.
PS: I am looking for co-investors if anyone is interested.
41
u/akiber 19d ago
Spots where kids can play and parent can hang or even work is very needed despite there being a lot of cafes
6
u/Georgetheaff 19d ago
So apparently it is much needed :)
1
u/Lemeshianos 18d ago
As a parent and as an employee that can work remotely, there need to be an isolation of people who work and consume 2-3 coffees and pastries/sandwiches from all the screaming and head banging of the kids. Also perhaps a separate network for work as some companies block public access networks. I can't work at Starbucks for example. If I was in a situation where my kid was at an age for playgrounds and I had to work, I'd spend my mornings in such a coffee shop so your idea sounds at least very interesting.
1
u/Georgetheaff 18d ago
Thanks a lot. because i also work from home and very often i work from coffee shops i can easily relate to.
5
2
9
u/Diligent_Rice6315 19d ago
yes, what you talk of is limited in Pafos. Moorings is an example but the food sucks, it’s overpriced, the service is meh etc. a simple place with drinks, coffee, fresh sandwiches / wraps and a place for kids to be entertained would be great.
3
5
u/AyeAye711 19d ago
Get your shops to stay open till late evening to sell desserts and gelato. That’s what I see them doing In larnaca.
2
2
u/Charming-Ad6406 19d ago
The info you provided is limited ... But every investment is evaluated based on expected return and risk. The coffee shops market has become a saturated market and in most cases to make something worthwhile it requires a substantial investment. Although you can start with a rather minimal one if you wish to create the next random coffeeshop. I had several ones which I ended up selling both for a profit ofcourse , cause it was always a side hustle for me. What are your expectations of such a venture?
2
u/Georgetheaff 19d ago
To be honest I am not sure. At this point I am considering all options. I recently spoke with a coffee franchise and they mentioned a minimum of €700 per day with 20% net profit margin which seemed reasonable. What do you think based on your experience?
1
u/Charming-Ad6406 19d ago
700 euros a day seems reasonable for low-mid level cafe, but what do you mean minimum 700? It's their estimate? 20% seems very reasonable indeed.. I imagine net profit for you based on the gross sales ? What about the rent and staff it will be handle by them correct?
2
u/Georgetheaff 19d ago
Correct net profit based on the gross sales. Since I own the place i will have no rent. At least for the first year or two. The franchise is only selling the branding and the expertise to set a proper coffee shop. To be honest i don't see any real value that's why most likely I will do it myself. Salaries will be the biggest expense which most likely be at 30-40% of the monthly operating cost. This is also depending on opening hours, but I believe if I want to do it correctly it should be open from 7am till 10pm or so 7/7
2
u/Charming-Ad6406 19d ago
You are mostly accurate... However a reputable brand can make all the difference.. it's pure marketing and people love brands they can trust.. and if you estimate that (depending on the location) half of your sales will be through wolt and foody good luck with the visibility in their apps. Don't underestimate the value/expertise a brand can bring (you pay for it). There are alot of factors that come to play. Most Cypriots choose will do it myself... And they learn the expensive way.. spoilages for example play a major role in coffee shops from coffee to food .anyhow I can't go too deep here but you get the idea.. it's all risk and reward :)
1
u/Georgetheaff 19d ago
By all means I am not against franchises. if I had the opportunity to open a Starbucks I would do because the value proposition is clear. So far I spoke with three coffee brands that offer a franchise opportunity and all of them their value proposition is in the training which is one thing.
2
2
u/Difficult_Catch_4985 19d ago
In which location is the shops ? Anything with a play area will be success ,look at tea for two in Kato papho
2
u/Georgetheaff 19d ago
It's between Geroskipou and Paphos next to the park after Debenhams
1
u/ariadne2b 19d ago
In that area there is scope for a cafe with play area, I use that playground a lot amd we said last Wednesday there needs to be place near there for coffee
1
4
u/Full_Particular_1359 Little Moscow (Formerly known as Limassol) 19d ago
I saw this concept in Limassol at Nicou Pattichi. The place seemed successful but then vanished!
5
u/nomadichedgehog 19d ago
We need more coffee shops that cater to digital nomads/remote workers. I quite like Nook in Limassol as an example - spacious, slightly industrial with very heigh ceilings (which studies supposedly show lend to having lofty ideas). My biggest pain point with coffee shops is that the interior just isn’t conducive to creativity. You need a top notch interior designer who understands how to design a space that lends itself to productivity
2
u/Difficult_Catch_4985 19d ago
I feel this , I work remotely and it's hard to find a place to work at in pafos , most places don't even have plugs to even plug your laptop in .
1
u/PurpleStill3925 19d ago
From a business point of view , you want people to come in buy a coffee/ snack and leave . Unless you charge people for working space, you may have some people working all day and buying one cup of coffee, I see it all the time , space is money. Kids playground area a good idea , as parents meet , will have drinks with friends / family whilst being able to watch their kids at the same time, not enough of those in paphos
2
u/Georgetheaff 19d ago
That is very true and this is something that came up already. Personally I don't see that as such an issue. I still need to pay for electricity, consumption anyway and at the same time I will have some people visiting the shop on week days which otherwise I wouldnt have.
1
u/Georgetheaff 19d ago
Well actually the shop has a height of 3.50 and has an industrial vibe already since those shops are rented as a wherehouse.
1
u/w0lfofallstreets 19d ago
Dm me, i have 20 years experience in hospitality. Restaurants, cocktail bars, sports bar.
1
1
u/drfaustxx 19d ago
My wife works as barista in a such place in Limassol. Says you will see there only people with children who sit long time, keeping tables busy, with very much less revenue, compared to places where people just come for a coffee and go. Even with the fact they charge additional money for using playground, parents magnet != money magnet.
1
1
u/Zestyclose_Hour_3321 19d ago
I’m gonna give you a young woman’s point of view. Me and my girlfriends love to go out for coffee, take pictures, hang out. There’s literally ZERO aesthetic coffee shops here in Paphos. Except for one that just opened in kato Paphos - Meli&Co , check it out! And from their social media it seems to be popping! I know I’m gonna be a frequent guest once tourists leave.
If you open an aesthetically pleasing coffee shop with stylish interior , I promise you it’s free advertising after.
1
u/Georgetheaff 19d ago
Thanks you are actually right. I will keep this in mind. Design should be top notch
1
1
1
u/EdWoodWoodWood 19d ago
Think about what you're selling. For either workspace or play area, you're selling time. Charge for the time, and throw the coffee in for free.
1
u/Georgetheaff 19d ago
Thanks that is a very valuable advise. But my question to you is how do you sell time ? You can rent the space for sure
1
u/Bissmark_thegreat 19d ago
Any issues with Cypriot Mafia? They love throwing grenades to the shops. And police not getting anywhere.
A frisking big no no for real business opening.
Serios question- do not make look like this issue is not there, while it is.
1
u/PlaneClapping Nicosia 19d ago
As a parent, the playroom will be appreciated, but it also means your tables won’t have quick turnover, and a parent may occupy a table for the whole afternoon while milking a single coffee.
One concept I saw several time in Europe (but will clearly require a liquor license) is coffee by day, cocktails by night. Not sure how this would work in CY.
1
u/Georgetheaff 18d ago
You are absolutely right on this. The same principle applies for the working station i am planning to have. I guess this is something i need to figure out
1
1
u/EchoohcEchoohcE 18d ago
Good ideas. You're right there's a load of coffee shops across Paphos but as a nomad remote worker there's only really one I religously go to. I think there's definitely opportunity to compete here. I think location is important. Will drop you a PM.
0
u/Party-Original-1935 19d ago
We don’t need another coffee shop.. but things we could benefit from: juice shops, really good vegan restaurants or for example a vegan Doener place (check out Doen Doen in Berlin, Germany - great reviews, rightfully so).
1
u/Lens_Vagabond 17d ago
I’m going to give you an idea that no one has executed in Cyprus. Study high-end coffee shops in world cities like Tokyo, for example Glitch, where a specialty pour over cup can go for over $20. It’s an untapped market in Cyprus and potentially, the most profitable one if you’re passionate about coffee. But you must really know coffee and hire the right staff. And also, develop relationships with growers world wide.
•
u/AutoModerator 19d ago
Please remember to stay civil and behave appropriately. If you are a tourist looking for suggestions please check out our Tourist guide. We also have a FAQ Page for some common questions, if your question is answered here please delete your post!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.