Coffee Cafes can be a fun and exciting business to open. Owners may believe that they will have no problem opening and sustaining a business, but the truth is that most business do fail. Jonah Engler tackles this problem on his latest presentation.

1. Top 4 Reasons Why Most Coffee Cafe
Startups Fail
Coffee Cafes can be a fun and exciting business to open. Owners may believe that they will have
no problem opening and sustaining a business, but the truth is that most business do fail. The
following are the top reasons that coffee cafes fail.
1. No Budget
Perhaps one of the biggest mistakes that rookies make is not formulating a budget prior to
opening the doors. While it may seem easy to open a coffee cafe, there is a lot of planning that
needs to go into it. The budget should be the first focus. Make sure that there is enough of a
budget allocated for overhead startup costs. Also, know what all of the overhead costs will be
and plan. At first, people will flock to new businesses. However, after time the newness wears
off and the budget must be able to withstand the dip.
2. Names
When naming the business and the products, make sure not to pick too exotic of names,
otherwise there is the risk of customer's not knowing what products are or that the business is
even a coffee cafe. Confusing the customer leads to a decrease in customers, which in turns leads
to the business failing.
3. Size
Whether it is the variety of products on the menu or the actual size of the building, size is an
important thing to consider when opening a cafe. If there are too few products to choose from on

2. the menu, customers may grow bored with your selections. However, if there are too many it can
overwhelm the customers. It is best, at least at first, to have a few varieties and then to slowly
introduce new flavors. The size of the building is important because people do not like to feel
cramped if they are sitting at a table. However, the more space that is present the more the
overhead cost goes up.
4. Location
Most people are not going to drive out of their way to get their morning cup of coffee. They will
go where is convenient. Cafe owners need to make sure that the location of the cafe is their one
of their top priorities. If there is no drive thru, they need to ensure that their location has plenty
of parking. People who are trying to get to work will not wait for a parking spot to open up;
instead they will go somewhere else. If everything else about the cafe is perfect, it will still fail if
the location is bad.
Jonah Engler is a financial expert from NYC.