How to Start a Coffee Shop in 2026

💡 Quick answer: Opening a coffee shop takes eight steps: pick a concept, budget your startup costs, get your permits, choose a location, buy equipment, set your menu and prices, set up payments, then hire and do a soft opening. Free help is available from the SBA and free SCORE mentors.

Step 1: Pick your concept

Decide what kind of coffee shop you are before you spend money.

Format: espresso bar, sit-down café, drive-thru, kiosk or cart.
Customer: commuters, students, remote workers, families or tourists.
What sets you apart: a roaster you partner with, a food program, long hours or a neighborhood feel.
Write it down: the SBA's business plan guide has a free template. A lean one-page plan is fine to start.

Step 2: Build your budget

The SBA suggests listing every startup cost and keeping a cash cushion for the early months. Get real quotes for your own city rather than relying on national averages.

Cost item	What drives the price	How to get a real number
Lease, deposit and build-out	Size, location, plumbing and electrical work	Landlord quotes plus a contractor walk-through
Espresso machine and grinders	Number of groups, new vs. used, service plan	Quotes from two or more equipment dealers
Refrigeration, ice machine, dishwasher	Menu size and health code rules	Dealer quotes, used restaurant suppliers
Furniture, signs and décor	Seating count and style	Local suppliers and sign shops
Permits, licenses and insurance	City, county and state rules	Your city's business office and an insurance agent
Opening inventory	Coffee, milk, cups, lids, food	Wholesale quotes from roasters and distributors
POS and payments	Software plan, hardware, processing fees	Pricing pages and your processor's fee sheet
Working capital	Rent, payroll and supplies until you break even	Months of fixed costs you want covered

If you need funding, the SBA explains loan options, and a SCORE mentor can review your numbers for free.

Step 3: Get permits and licenses (US)

Rules vary by state and city, so check locally. The SBA's licenses and permits guide is a good starting point. Most coffee shops need:

A business structure and registration with your state.
An EIN from the IRS (free) if you'll hire staff.
A general business license from your city or county.
A food service permit and health inspection. Many local rules are based on the FDA Food Code.
A food handler or manager certificate, if your state requires one.
A seller's permit to collect sales tax, where your state has one.
Building, sign and occupancy permits for your space.

Step 4: Choose your location

Foot traffic and visibility at the times you plan to be open.
Parking or transit access for your customers.
Nearby competition, and whether there's room for one more shop.
The lease: term, rent increases, who pays for build-out, and whether the space is already zoned and plumbed for food service.
A lawyer's review before you sign. A long lease is often your biggest commitment.

Step 5: Buy equipment

Espresso machine, grinders and brewers. Ask about service and parts availability near you.
Water filtration, which protects the machine and the taste of the coffee. The Specialty Coffee Association publishes water and brewing standards.
Refrigeration, ice, sinks and dishwashing that meet your health code.
Smallwares: pitchers, scales, tampers, cups and storage.
Buy used where it's safe to, and leave room in your budget for repairs.

Step 6: Set your menu and prices

Start small. A tight menu means less waste, faster service and easier training.
Cost every drink: coffee, milk, cup, lid, sleeve and any syrup.
Price for your area. Visit nearby shops and see what customers already pay.
Plan add-ons like milk alternatives, extra shots and pastries.
Review prices often as supplier costs change.

Step 7: Set up payments and a POS

Your POS rings up orders, tracks sales and shows what's selling. When you're just starting, keep fixed costs low.

Start on a free POS so you don't add a monthly bill before you have revenue.
Read the fine print for contracts, cancellation fees and hardware leases.
Check card processing fees separately from software prices.
Test it with your real menu before opening day.

Pointbunny has a free plan built for small cafés, with no contract and no monthly fee. You can set up your menu and start ringing up orders before you open.

👉 Try Pointbunny free

Step 8: Hire, train and soft open

Hire for attitude. You can teach coffee skills. Learn your employer duties, like Form I-9, with the SBA's hiring guide.
Train on the same drinks and the same POS you'll use on opening day.
Soft open first: invite friends, family and neighbors for a few days with a limited menu.
Fix what breaks: slow drinks, confusing buttons, missing stock.
Then announce your grand opening on your Google Business Profile, social media and a sign in the window.

Before you open

Business plan and budget done
Permits, licenses and inspection passed
Lease signed after legal review
Equipment installed and tested
Menu costed and priced
POS set up with your menu
Staff hired and trained
Soft opening done

FAQ

What are the steps to start a coffee shop?

Pick a concept, budget your startup costs, get permits, choose a location, buy equipment, set your menu and prices, set up payments, then hire and soft open.

What permits do I need to open a coffee shop?

Most US coffee shops need a state business registration, a general business license, a food service permit and health inspection, and building, sign and occupancy permits. You may also need an EIN, a food handler certificate and a seller's permit, depending on your state and city.

How much does it cost to open a coffee shop?

It depends on your city, space and equipment, so get real local quotes for the lease, build-out, equipment, permits, inventory and POS. Keep a cash cushion for rent, payroll and supplies until you break even.

Where can I get free help starting a coffee shop?

The SBA has free guides on business plans, permits, loans and hiring, and a SCORE mentor can review your plan and numbers for free.