James Sinclair's Business Broadcast £65k/month in Coffee Sales, but why is this industry so tough? (4k)
Apr 2, 2025
The challenges of running a coffee shop are laid bare, revealing a harsh reality behind impressive sales figures. Discussions dive into the emotional toll of operations, staffing struggles, and the financial nuances that define success. The podcast also touches on the shifting dynamics of customer loyalty, with independent coffee shops gaining traction over major brands. Entrepreneurs share insights from their journeys, emphasizing the need for adaptability, networking, and innovative strategies to thrive in a competitive market.
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Coffee Shop Profitability is Challenging
- Coffee shops often have low revenue per year, around £150K, making profitability very tough.
- Even shops with £350K revenue struggle due to high staffing, rent, VAT, and operational costs.
Josh's Coffee Hog Origin Story
- Josh started Coffee Hog to create a family-friendly coffee shop after running a hog roast business with his sister.
- They quickly expanded from one to two sites and built a strong family vibe with a kids' area for parents.
Test New Sites with Pop-Ups
- Test new locations like train stations with low-risk pop-ups or short-term leases.
- Avoid committing to long leases until the site’s revenue potential is validated.