Opening a new coffee shop is not extremely difficult in and of itself, but opening one with a competitive advantage that allows it to thrive rather than flood into the local market is a challenge that requires planning ahead. However, there are several proven routes to competitive advantage used by coffee shops, and one may be successful for yours.

quality differentiation

The quality of your products can convert current drinkers at other establishments to yours and hook potential one-time visitors back. To ensure high quality, you need to check quality at every step of the service process, from the sources of your coffees and other products, to the systems, personnel, and equipment you use to store, grind, brew, and serve. You may need to have unique or unusual fonts for your products so that you don’t compete closely with other stores that share the same vendors. Researching vendors may be the best method for this type of advantage, unless you have a specific talent for developing your own products that will make your store stand out.

Differentiation of experiences

Some retailers recognize that the visit experience is a compelling differentiation for customers, regardless of the products sold. By offering a specific atmosphere, theme or entertainment, your store can stand out even with relatively standard products. There will be costs associated with any unique setting you try to create, so be sure to research these and show how it will allow you to charge a higher price or attract more customers than you otherwise would.

price differentiation

As you achieve lower and lower prices for a basic cup of coffee, your store can tap into a much larger market by converting users who would brew their own coffee. However, once you’re trying to be one of the lowest-priced coffee shops in your neighborhood, it can be hard to find other ways to distance yourself from the rest. Although you’ll make up some of what you lose in dollars per customer in volume, you’ll probably have little money to play with and try unique marketing or décor to build a brand, and you’ll always fear direct price competition from both independent stores and chains that They try to serve at low prices too. A price differentiation strategy will work best for you if you have a unique way to substantially reduce your costs, leaving more room for profit or branding.