Starting a new coffee drive thru business (lender, fee, profit)

[julie1056]

We are looking into starting a new drive thru coffee business. We have been business owners in the past and this will be a new veture for us. My husband is a contractor and can build the drive thru for us. We have been looking at other similar business and know what size and look we want. We already own the land (on a busy street) to build it but we could use help on:
What machines will be needed and types of machines to buy that are efficient, low matanience, easy repair etc. (we understand we can save a lot on used machines)
Good lay-out for the inside of the building.
Start up costs spread sheet
Items needed for start up
Costing/pricing of items
Good POS system.
Best places to buy in our area
Trends. Should we add smootheis?
Anyone have a business pland and marketing plan we could use for the bank?
Anything else you can think of.
We live in the South Puget Sound area
Thank you!

[j_k_k]

Wow. You have a lot of learning to do. No offense meant, but the only question about the business you didn't list is 'what is coffee and why would one drink it?' So my suggestion is that you find a coffee place at least ten miles away, that will not be in competition with you in any way, and start frequenting it. Once you develop a rapport with the proprietrice, you can start asking questions and explain your plan (and that it will be far enough away that you won't cut into their business). If she shows any helpfulness at all, tell her that you'll put an ad sign for her business on your place for free in appreciation. And do it. You might make a real ally.

That might not work, but that's your best chance of getting the info from a person who knows exactly what it takes. Oh, and make sure it's someone who makes good coffee cheerfully and seems well organized. Last thing you want to do is go to someone who can only tell you how to screw things up.

[Dendrite]

It's a book of business with a very slim profit margin. If you remain determined it might be simpler to buy one from somebody rather than start from scratch. I suspect you could easily buy an existing booth from someone in the area going out of business as I have noticed quite a few of these for sale over the past year or two as I travel about the NW. No government bailout money for the drive through coffee shops I guess!

Perhaps one of the on line coffee boards such as HomeBarista or CoffeeGeek could give you more precise input. I've seen similar threads on those sites from people wanting to venture in to this line of work in times past. Many of the folks on those boards own shops such as what you're considering thus you'd get it "straight from the horses mouth".

As you already know, when economic times are hard people are less inclined to pay $3 or $4 dollars for a cup of coffee. Even Starbucks has down-sized in this economy.

Good Luck!

[Vianeth]

As a former barista/smoothie maker/baker/cake decorator I can give you a few pointers.
Do not buy a cheap espresso grinder or a cheap espresso maker. We didn't have to get ours serviced for three years. They were pretty expensive, I *think* around $3,000 for the whole machine, which includes 2 milk steamers on each end, and 4 espresso drippers in the middle. Not only are you going to pump out high-quality espresso, but you'll probably save money in the long run because they won't be breaking down for a good long while.
A few of my co-workers went to classes provided by our coffee bean supplier, and told us what they learned, and it really helped us to learn how to not cut corners and how to make them properly.
We used a PLU system for our register. For example, if someone ordered a double white mocha, you would type in PLU 355. If someone wanted a double latte, you'd type in PLU 344. For a single, 343. Made things really easy and quick.
I worked in a bakery inside a grocery store, that had a bar at the other end which we could serve espresso, smoothies and wheatgrass shots. We even had a huge juicer, where customers bought their own produce and brought them to us to juice, for a fee of about $5. We needed one giant freezer for the frozen fruit and frozen yogurt, a refridgerator under the register for the milk and juice, enough counterspace for the grinder, espresso machine, wheatgrass machine, the 2 blenders, and the frappucino machine.
I live near Bremerton, Gorst and Port Orchard, there are drive thru coffee stands EVERYWHERE. If you want business, you're going to have to stand out from the rest and be the only stand in your area. There's a few half-naked coffee stands in our area, and while thats a great way to get business (atleast from men), the coffee usually tastes like crap (atleast to me).
You could always sell the idea of organic coffee and healthy alternatives like we did, with the wheatgrass shots and organic coffee and espresso beans. Offer soy milk too! Try to set yourself apart from all the other stands and I think you'll get great business.

[desertsun41]

I agree with everyone else basicly.

You want a marketing plan for the banks? May I suggest the only plan I know of in this economic depression to deal with a bank is a sub machine gun. I really doubt any bank will lend you money on a business that is suffering badly. Like some one said, the grand daddy of them all, Starbucks is in serious trouble and closing stores everywhere. Sure their product sucks but people never minded till they started losing their jobs and could not afford it anymore.

I believe the only place with half a chance of survival is the Seattle or Vancouver BC area where sitting under an umbrella with coffee is a way of life and considered a need rather then a want. Of course they are the coffee capital of the world.

I suggest you come up with another idea if you own that nice land. I know you will open the coffee place anyway despite advice otherwise so good luck to ya.

[harry chickpea]

Vianeth has the "in the trenches" advice. The other comments are good as well.

You REALLY have to stand out. Going the health food route is one way, another is going the bakery route with exceptional scones and other treats. One place in our area is going head-to-head with Starbucks. I suspect it may be underwritten by Nestles, as it is coffee and fresh Nestles Toll House Cookies. It looks like it is going to work.

Personally, I would avoid going into the coffee business and try to bring back some of the old "Tea Room" idea with an updated selection of teas. There is much more growth potential.

[Spac3d]

Since no one has tackled the RE issue ... just because it is a busy street doesn't mean it is a great place for coffee.
Is it on the going to work side?
Is the land just before a freeway, right before a major commercial park, or just after massive subdivisions?
How are the curb cuts?
Where will turn lanes be?
Can people pull back out after pulling in?
Does your lot cater towards people waiting in the drive through?
What are the rules for signage in your community?

Why your new business and not Dunkin Donuts/Starbucks? What is your advantage?

[julie1056]

Originally Posted by Spac3d

Since no one has tackled the RE issue ... just because it is a busy street doesn't mean it is a great place for coffee.
Is it on the going to work side?
Is the land just before a freeway, right before a major commercial park, or just after massive subdivisions?
How are the curb cuts?
Where will turn lanes be?
Can people pull back out after pulling in?
Does your lot cater towards people waiting in the drive through?
What are the rules for signage in your community?

Why your new business and not Dunkin Donuts/Starbucks? What is your advantage?

Thanks you for your reply. I really appreciate all the input from people willing to share their thoughts. Our property is located about 1 1/2 blocks from the freeway on the main street going through town and surrounded by outlet shopping center, a city park and 3 hotels down the street. We are working with the engineers and city on how the curbs will be cut and there is a left turn lane into onto our site. Until we further develope the site we are planning on having cars enter of the main street, with a drive up similar to jack in the box where people can order their drinks and then continue to drive around the building to pick them up. This is done for a couple of reasons as we do not want to block traffic on the street and we feel that if people see too many cars lined up they will not stop to order coffee. We will also have a small walk up window with a small patio and seating in front for those that walk down the street and the "hotel" people that might enjoy a short walk down the street for their coffee. NOTE: None of the hotels have restaurant in them, they are more like motels" We have the signage info from the city which will not be an issue. There is a starbucks on the other side of the freeway but it is difficult to get to and parking is difficult as well.

[julie1056]

Originally Posted by Vianeth

As a former barista/smoothie maker/baker/cake decorator I can give you a few pointers.
Do not buy a cheap espresso grinder or a cheap espresso maker. We didn't have to get ours serviced for three years. They were pretty expensive, I *think* around $3,000 for the whole machine, which includes 2 milk steamers on each end, and 4 espresso drippers in the middle. Not only are you going to pump out high-quality espresso, but you'll probably save money in the long run because they won't be breaking down for a good long while.
A few of my co-workers went to classes provided by our coffee bean supplier, and told us what they learned, and it really helped us to learn how to not cut corners and how to make them properly.
We used a PLU system for our register. For example, if someone ordered a double white mocha, you would type in PLU 355. If someone wanted a double latte, you'd type in PLU 344. For a single, 343. Made things really easy and quick.
I worked in a bakery inside a grocery store, that had a bar at the other end which we could serve espresso, smoothies and wheatgrass shots. We even had a huge juicer, where customers bought their own produce and brought them to us to juice, for a fee of about $5. We needed one giant freezer for the frozen fruit and frozen yogurt, a refridgerator under the register for the milk and juice, enough counterspace for the grinder, espresso machine, wheatgrass machine, the 2 blenders, and the frappucino machine.
I live near Bremerton, Gorst and Port Orchard, there are drive thru coffee stands EVERYWHERE. If you want business, you're going to have to stand out from the rest and be the only stand in your area. There's a few half-naked coffee stands in our area, and while thats a great way to get business (atleast from men), the coffee usually tastes like crap (atleast to me).
You could always sell the idea of organic coffee and healthy alternatives like we did, with the wheatgrass shots and organic coffee and espresso beans. Offer soy milk too! Try to set yourself apart from all the other stands and I think you'll get great business.

Thank you! Thank you! Thank you!This was very helpful and just the type of information I was looking for!!! I know we do need to do some research on what type of coffee to use. There are a couple of local roasters that we are considering and knowing that they will help you is great. I've seen some companies offering 2-3 day barista classes and how to run your drive thru classes and they are quite expensive. Any other suggestions? I'm not afraid to seek the information and come up with questions if I can just get some help with finding out what type of questions I should begin to ask. I have been in the hotel business and I know there are sources out there that can help us get this started. While doing some research I saw something very interesting called "white coffee" This may just be our niche. Can you tell me what type of expresso machine/grinder you purchased. I figured it would be somewhere in the 3K range to get a good one. Would love any other suggestions as to what type of machines, coffee, mixes, etc are good and what to stay away from. Where are good places to buy etc. All info is really appreciated if you have the time to respond. Thank you again!

[julie1056]

Originally Posted by harry chickpea

Vianeth has the "in the trenches" advice. The other comments are good as well.

You REALLY have to stand out. Going the health food route is one way, another is going the bakery route with exceptional scones and other treats. One place in our area is going head-to-head with Starbucks. I suspect it may be underwritten by Nestles, as it is coffee and fresh Nestles Toll House Cookies. It looks like it is going to work.

Personally, I would avoid going into the coffee business and try to bring back some of the old "Tea Room" idea with an updated selection of teas. There is much more growth potential.

Great advice on the bakery items, I know that once you start looking and word gets out that many vendors will seek us to purchase their product. Any suggestions regarding baker items. Funny you should mention tea as we were thinking about having it on our menu even thoug we are a "coffee" drive thru. Any suggestions on possibly bottled drinks? IE Italian sodas, etc?