Why do people still fail in cafes?


Why do people still fail in cafes?

Ten years ago one of the biggest motivations to start Café Biz and Café Culture magazine was to stop the failure rate of new café businesses. Also ten years ago six out of ten cafes in Australia failed in the first six months of trading. Thanks to us and many other café educators we have reduced that number to four out of ten but in this world of information age it still not good enough results.

We have come up with a perfect solution and that is a Café School for new starters or business owners that a struggling. We looked hard all over the world for a good café school model and went into a partnership arrangement with The American Barista and Coffee school that has been running a similar course for new café start ups over the last 15 years. Founder Bruce Milletto of the American Barista and Coffee school has written a string of books also outlining start up business models and success systems. We have jointly “Australianised” the American course structure to our café culture.

What a lot of people outside of Café Culture framework don’t know about us is our team have been involved with business training as the major part of our revenue model. We have been undertaking café training with the national employment industry and have trained thousands of long term unemployed over a ten-year period. We also helped create the original training notes for the industry coffee standards with other coffee movers and shakers.

I honestly can see a major problem with many new café start-ups if they don’t get a complete business plan in place before they open their doors. The café industry is highly complex and it takes many business elements to get the business side right. The Australian café industry is the highest quality business structure in the world and when the business is run correctly it can be very profitable. Many new starters will throw lots of money at a setup and not on themselves as part of the asset behind the business.

The Australasian Café School has been set up in Port Macquarie NSW in a purpose built training space which has been designed with working café equipment including the latest espresso machines so students can get to see the difference between all makes and models. The course will take participants through the full planning stages of a café business looking at the original café concept through to practical elements of cooking a Panini and making a Macchiato. The trainers come from many different parts of the hospitality industry and have years of successful café management backgrounds that will be used to personally guide students in getting their concept café to the reality of a profitable business.

Failure is not a nice step and many people whom entering this business are coming into the café business with good intentions and a lot of the time with their life savings. I always say running a café is more than just liking coffee and chatting with people. You have to be a HR manager, a Financial Controller, a Chef, a Barista; a customer service expert and expect to work at least 60 hours a week.

If anyone out there knows anyone that is about to embark on a café ownership journey send them to us for a chat as we are the industry experts and let us help them to become an industry success story.

Café Culture has set up offices already in China, USA and London UK and are promoting the profitable Australian café culture to the rest of the world as leaders in export of knowledge. So lets keep our backyard tidy and drive café success to the future.

Author: Sean Edwards Managing Director Café Culture.

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