Starting a cafe in the UK requires passion and determination, but it can be a dream come true for many small business owners. A busy cafe with happy customers, and the satisfaction of creating a community hub are what makes it really rewarding.

For aspiring cafe owners in the UK, going from a concept to a profitable business involves understanding the challenges of the British market – which can change with the times. With competition from established chains and changing consumer preferences, standing out requires resilience, practical know-how and a bit of luck.

This guide walks you through the key steps to run a successful cafe in the UK in 2026, from writing a solid business plan to managing staff and protecting your business.

Whether you've just started your business, are a hospitality professional or just looking to give your cafe a new lease of life - find actionable advice to get your coffee shop up and running and more importantly - thriving and making profit.

_{This content is provided for general informational purposes only and does not constitute tax, legal, or financial advice. You should not rely on it as a substitute for professional advice. Always seek independent advice from a qualified professional regarding your specific circumstances.}

Quick answer:

• Startup costs - Opening a cafe in the UK could cost between £25,000 to £150,000, according to Eu Coffee Roasters.
• Registration - You should register your cafe as a food business at least 28 days before you open. It's free to do.
• Staff costs - The National Living Wage (NLW), the minimum wage rate for all workers aged 21 and over, will rise by 3.9 per cent to £13.21 in April, 2027. For over 21s the minimum wage is currently £12.71.
• Business rates – You'll have to pay a tax for running a cafe, this is called business rates. But you may be eligible for Small Business Rate Relief (SBRR), if you qualify.

Read more details below.

Guide breakdown:

1. How do I create a cafe business plan for the UK market?
2. What licences and permits do you need to run a cafe in the UK?
3. How can I make sure staff are properly trained?
4. Managing utilities and reducing operational costs
5. Choosing the right equipment and suppliers
6. Managing costs while increasing profits
7. Creating a unique cafe concept
8. How to run a great cafe
9. How can cafe insurance help protect your business?
10. Useful advice from real cafe owners and Bionic customers

How do I create a cafe business plan for the UK market?

A well-structured business plan is the backbone of any successful cafe.

For UK small business owners, this means looking into specific market conditions, consumer preferences, and financial realities of running a food service business in Britain.

Calculate realistic startup costs

The costs involved with starting a cafe in the UK can vary – Eu Coffee Roasters suggests cafe startup costs can be anywhere between £25,000 to £150,000, depending on your location, size, and concept. This wide range reflects the various approaches you can take – from a simple coffee cart to a full-service cafe.

For those testing the waters, a coffee cart can be a smart way to check your concept before putting in any more money. An entrepreneur on Reddit shared a detailed breakdown of their coffee cart startup, costing him £4,812. This included a second-hand espresso machine (£950), a portable cart (£1,200), initial stock (£600), and various permits (£350) - which could give you an idea of prices for second hand equipment.

But, if you want to go bigger - full-service cafes need much more investment. You might need a startup loan to get going and there are likely to be initial start-up costs.

Consider:

• Does your premises need renovations or new fixtures/fittings?
• Have you got all essential equipment? (coffee machines, refrigerators, for example)
• How much initial inventory will you have?
• Have you got the right business licences in place?
• Are you set up on social media? Have you got any budget for marketing?
• Have you found the best deal for business energy?
• Have you got the right business insurance in place?

Rather than buying all equipment outright, you might want to opt for leasing options. This can help keep costs lower and allows for equipment upgrades as your business grows.

It's also worth keeping some money aside for the unexpected. A contingency of around 10% of your budget could help cover building delays, broken kit or a slow first few months.

How long does it take to open a cafe?

Opening a cafe could take around 3 to 6 months from finding a site to your first day of trading. The timeline depends on how much building work your premises needs. A rough order of events could look like this:

1. Research your local market and write your business plan
2. Choose your business structure, for example sole trader or limited company
3. Find a site and agree the lease. Check the unit can be used as a cafe, as some need planning permission
4. Fit out the premises and order your equipment
5. Register as a food business with your local council, at least 28 days before you open
6. Sort your licences, business insurance, energy and broadband
7. Hire and train your staff
8. Run a soft launch to iron out any problems before your full opening

Find a busy location in the right place

The success of your cafe can depend heavily on where it is. Before signing a lease, check the areas to understand if it has a high footfall or not – are the surrounding shops busy or not?

You can gather valuable location insights for free, for example:

• Google Maps' "Popular Times" feature shows peak hours for nearby businesses
• Count passersby at different times of day
• Go into neighboring small businesses and ask them about footfall
• Join a Meta group or online community to discuss experiences

Pay particular attention to:

• Morning commuter patterns (for the breakfast and coffee rush)
• Lunchtime foot traffic from nearby offices
• Weekend leisure visitors
• Public transport links nearby
• Parking availability

Remember that what works in a high street location might not work in a rural setting. High street cafes may benefit more from passing trade but could face higher rents and fiercer competition. If you're out in the sticks cafes often need to become community destinations with loyal regular customers to survive.

Know your fixed costs

Before you open your doors - make sure you know your fixed costs and account for expenses that might affect your profitability.

• Business rates - These are taxes on property used for business purposes, such as offices, shops, pubs and cafes. Your council works out what you pay using your property's rateable value and a multiplier. For example, a small cafe in central London might pay more each year than a similar cafe in the North East. As a small business, you may be eligible for small business rates relief, which means you could pay less. Qualifying cafes now pay rates using lower multipliers. This means if your rateable value of your premises is below £51,000 you may qualify. Business rates are different in Scotland, Wales and Northern Ireland. Check on the government site for more info.
• VAT - Once your VAT taxable turnover goes over £90,000 in any rolling 12-month period, you have to register for VAT. Learn more about taxes you need to pay when running a business.
• Staff costs – The National Living Wage is £12.71 an hour for workers aged 21 and over from 1 April 2026. It usually rises every April, which affects your ongoing staff costs. You should also factor in employers' National Insurance contributions, which rose to 15% on 6 April 2025 for earnings above the threshold. You also need to consider pension auto-enrolment obligations – the legal minimum is 3% of qualifying earnings. From 6 April 2026, Statutory Sick Pay is payable from the first full day of sickness absence. The old 3 unpaid waiting days have gone, so it's worth budgeting for staff sickness.
• Energy and gas costs - There is no energy price cap for business customers in the UK. Your rates depend on your contract and how much energy you use, so you'll need to budget for gas and electricity based on your size and equipment and usage. Water rates, waste collection, and business broadband and VoIP also need to be considered in your monthly costs.

Les Roberts, Senior Content Manager at Bionic and former tea shop owner, says: "As a cafe owner, you will use a lot of energy. Coffee machines, cookers, fridges, and heating can drive up your bills. And it's not just your consumption, standing charges can also rise, so it's best to fix your rates for as long as possible so you aren't met with unexpected price hikes."

Find out what the Autumn Budget 2026 means for your business in under 60 seconds.

Get your finances in order

Now you know your fixed costs, you can make financial projections. These should include:

• Monthly cash flow forecasts for the first year
• Quarterly projections for the second year
• Annual projections for years three to five
• Break-even analysis
• Profit and loss statements
• Balance sheets

You can find helpful resources and templates for these on the government website.

Should you be a sole trader or a limited company?

Many cafe owners start as a sole trader because it's simple to set up. Others choose a limited company, which keeps business and personal finances separate. Each has different tax and admin rules, so speak to an accountant about what could suit you. Either way, a separate business bank account could make your bookkeeping easier.

_{Bionic does not provide financial advice. This information is for informational purposes only. You should always consult your own financial advisor for financial planning advice.}

Think sustainably

UK consumers increasingly favour businesses with strong sustainability credentials. Building eco-friendly practices into your business plan can attract customers and reduce costs. You should consider:

• Compostable takeaway cups and packaging
• Energy-efficient equipment (including lighting)
• Local and organic sourcing
• Food waste reduction programmes
• Water conservation measures

Rather than treating sustainability as an afterthought, you can integrate it into your business. There are plenty of people who would take your coffee grounds and use them as fertiliser. Getting in touch with local gardeners is a great way to start.

What licenses and permits are legally required to run a cafe in the UK?

You need to make sure you have the right licences to operate – if you don't you could end up with fines, closures, not to mention damage to your reputation.

A cafe that sells hot drinks and food doesn't usually need a special trading licence. But you do need to register as a food business. You'll also need extra licences if you sell alcohol, play music or serve hot food or drink after 11pm. Read more in our guide to business licences.

Food business registration

All food businesses, including cafes, must register with their local council's environmental health department at least 28 days before opening. This registration is free and can typically be completed online through your local council's website. Your council can't refuse your registration.

Once you're registered, you'll then receive a visit from an environmental health officer who will assess your premises according to the Food Standards Agency's (FSA) Food Hygiene Rating Scheme. This inspection examines:

• Food handling practices
• Physical condition of your premises
• Food safety management systems
• Record keeping

Your cafe gets a rating from 0 to 5, and it appears on the FSA website so customers can check it. In Wales and Northern Ireland, you have to display your rating at your premises by law. In England, display is voluntary but encouraged. Scotland runs its own Food Hygiene Information Scheme.

To achieve a good rating (aiming for 4 or 5 stars), you'll need to demonstrate:

• Staff training in food hygiene
• Appropriate refrigeration and storage
• Clean food preparation areas
• Effective pest control measures
• Proper waste management

You'll also need to give customers accurate information about the 14 main allergens. Since October 2021, Natasha's Law has required food prepacked for direct sale, like sandwiches you wrap before customers order, to show a full ingredients list with allergens highlighted. In March 2025, the FSA published best practice guidance for loose food. It says written allergen information should always be available, alongside a conversation with customers.

Health and Safety

Cafes must comply with Health and Safety Executive (HSE) regulations to protect both staff and customers in your cafe. Key requirements include:

• Conducting and documenting risk assessments
• Maintaining safe equipment and working practices
• Providing appropriate staff training
• Displaying a Health and Safety Law poster
• Reporting accidents and incidents
• Having employers' liability insurance

If you have five or more employees, you need to write your health and safety policy down. Even for smaller cafes, keeping written records is a good idea. Learn more about health and safety for employees.

You could run into the following health and safety issues:

• Slip and trip hazards from spills
• Burns from hot equipment
• Manual handling injuries from lifting heavy items
• Cuts from knives and broken glass
• Electrical safety concerns

Alcohol licensing for cafes

If you plan to serve up alcohol, even just wine or beer with meals, you'll need a premises license – this can cost between £100 to £635, depending on your rateable value. The application process involves:

1. Submitting a detailed application to your local council
2. Providing scale drawings of your premises
3. Displaying public notices at your premises
4. Advertising your application in local newspapers
5. Paying application fees

If you don't need a full alcohol licence, you can give a Temporary Event Notice (TEN) for one-off events. Each TEN costs £21. A single premises can have up to 15 TENs a year, covering no more than 21 days in total.

You'll also need a personal licence in order to actually sell the alcohol, this needs to be assigned to someone on shift. This can cost around £37.

Find more information and to apply, see the government site.

Serving late? If you sell hot food or hot drinks between 11pm and 5am, that counts as late night refreshment. You'll need a premises licence for it, even if you don't sell alcohol.

Music licensing requirements

Whatever your taste in music, if you want your customers to hear the latest tunes by popular artists, you'll need a music licence.

• You can now get a single licence through PPL PRS Ltd. Annual fees depend on your venue size, opening hours, and how much you play the music.
• For a small cafe under 400 square meters and 30 seats, you could expect to pay around £400 annually.

If you don't have the proper licenses, you could get fined...

But if you don't want the hassle of paying – then use royalty free music. You never know, customers might even enjoy a bit of Mozart with a cuppa.

How can I make sure staff are properly trained?

Your team can make or break your cafe's success. Effective staffing involves finding the right people, training them properly, and creating a way of working that is efficient and keep employees happy.

Balancing full-time vs. part-time roles

Full-time employees provide stability and consistency, while part-time staff offer flexibility to cover peak periods like weekends or bank holidays.

If you're just starting out, then you might be thinking of working yourself and getting family members to help. But if you're looking to employ staff, a typical staffing structure for a small to medium-sized cafe might look like this:

• 1 full-time manager
• 2-3 full-time baristas/supervisors
• 2-4 part-time baristas/servers
• 1-2 part-time kitchen assistants (if serving food)

Having this type of staff mix allows you to scale staffing based on demand. Morning and lunchtime rushes typically require more hands on deck, while quiet afternoons can be managed with minimal staff.

When building your team, you'll want to consider:

• Clear job descriptions with defined responsibilities
• Setting up a fair work schedule
• Transparent pay structures
• Right to work checks for every new starter, before they begin work
• Employers' liability insurance, which is a legal requirement if you have any staff

You might find that investing in a core team of well-paid, full-time staff reduces your long-term training costs and improves the quality of your services, even if the hourly rate is slightly higher than minimum wage.

Barista training and development

Quality coffee is the foundation of a successful cafe business. Investing in proper barista training pays off because you get a better quality product offering and more happy customers.

You can attempt to train your staff yourself, but there are other training options if you want to pay for it:

• Barista day courses (prices vary, so compare a few local providers)
• Speciality Coffee Association (SCA) courses
• Manufacturer-provided training for your specific equipment
• CPD-accredited coffee machine safety courses (many available for under £150)

Apart from making coffee art, the best baristas are knowledgeable in:

• Coffee bean varieties and origins
• Grind settings for different brewing methods
• Milk texturing techniques
• Equipment maintenance and cleaning
• Food safety practices

To keep your barista up to speed, some cafes host regular "coffee clinics" where staff practice techniques, try new methods, and share knowledge. This can help improve skill levels and is a great team building exercise.

Reducing turnover through staff incentives

The hospitality industry is known for high staff turnover. But you can do your best to keep staff with creative incentive systems that help keep employees.

One option might be to create a "coffee bean profit share" system. This gives team members a percentage of profits based on their performance like customer feedback, sales figures, and quality control.

Other ways to do this include:

• Skill-based pay increases as staff master new techniques
• Flexible work patterns to accommodate studying or family commitments
• Free or discounted food and beverages
• Opportunities to attend coffee events or competitions
• Clear pathways to management positions

Setting up regular one-to-one meetings with staff members can help identify their goals and challenges. These conversations often reveal simple changes that can really improve job satisfaction and the chances of them staying with you.

Using scheduling and management tools

Modern tech can make many parts of running your cafe simpler. Workforce management software can help you plan staffing levels, track staff costs and make payroll easy. But if you're just starting out with a small team, a simple spreadsheet could be enough.

Managing utilities and reducing operational costs

Energy costs, POS systems and water bills are all big ongoing costs for cafe owners. If you don't keep on top of them, they could really eat into your profits.

Energy efficiency strategies for cafe owners

Our own Les Roberts, Senior Content Manager at Bionic, is a former cafe owner and knows a thing or two about running a cafe efficiently.

"Coffee shops are energy-intensive businesses, and even equipment choice alone can impact energy bills. It's always best to use energy-efficient options from the get-go like bulbs and turning off equipment when you close. A staggered approach to starting up your equipment in the morning can prevent unnecessary usage and charges on your bill."

Watch Les's small business story on running his tea shop business before he joined us at Bionic.

Here are Les's top tips for energy efficiency strategies when running your cafe:

Get the right equipment

You're likely to need a lot of specialist equipment to get your cafe up and running. Budget carefully for it, because the cost can add up quickly. The list below shows some of the most common cafe equipment you may want to consider:

Drink making equipment	Food-related equipment	Other equipment
Espresso machine	Toaster	Cash register
Coffee bean grinder	Microwave	Card machine
Filter coffee brewer	Panini press	POS system
Tea brewer	Oven	Television
Bar fridge	Hot plate	Sports TV subscription
Freezer	Dishwasher	WiFi router
Blender	Fridge/freezer	Phone/laptop charging points
Ice machine	Deep fryer

Remember that you will also have to budget for other tools and equipment, such as:

• Storage and display units
• Kitchen pans and pots
• Food preparation utensils, such as knives and spatulas
• Serving utensils, cutlery and other tableware
• Wares such as plates and bowls
• Bar items such as stirrers, mixing glasses, bottle pourers and tongs.

Try to choose equipment that is energy efficient and has a good energy rating.

Your espresso machine and fridges keep your cafe trading. If one breaks down or gets damaged, it could mean lost stock and lost sales. You might want to look at business equipment cover as part of your of your business insurance policy.

Here are some other ways to run your cafe efficiently and save.

Create daily operational routines

• Create a startup and shutdown sequence for your equipment
• Install timers on energy-hungry appliances
• Train staff on energy-saving practices
• Use lids on pots when heating water or milk

Make your interiors energy efficient

• Install LED lighting throughout your premises
• Add draught excluders to reduce heating/cooling loss
• Install smart thermostats and smart meters to monitor usage

You can also compare business energy quotes to find an energy deal that fits your cafe.

Water saving measures and waste management

Water bills can add up quickly in cafes when dishwashing, making coffee, and cleaning. You'll want to save water where you can, consider:

Water-saving equipment

• Low-flow spray valves for pre-rinsing dishes
• Water-efficient dishwashers
• Dual-flush toilets
• Sensor-activated taps

You'll also want to make sure you're not wasting any water. You should consider:

• Fix leaks promptly (a dripping tap can waste up to 5,500 litres annually)
• Run dishwashers only when full
• Collect and reuse water where appropriate
• Train staff on the above

Waste reduction strategies

Minimising your food waste means you could save money in the long run. It could also help your reputation as a 'green' business to use some of the following initiatives:

• Check your food portions to reduce food waste
• Use digital ordering systems to minimise errors
• Partner with food waste apps like Too Good To Go

Recycling and composting

You can't eliminate waste completely, but being smart about recycling and composting where you can, can help you minimise waste management costs and do your bit for the environment. You should consider:

• Set up clearly labelled recycling bins
• Compost coffee grounds and food waste where possible (even giving them away!)
• Return packaging to suppliers for reuse
• Choose suppliers with packaging take-back schemes

New recycling rules in England

Under Simpler Recycling, workplaces in England need to separate dry recyclables, food waste and general waste for collection. Businesses with 10 or more full-time equivalent staff have had to follow the rules since March 2025. Small businesses, with fewer than 10 employees will have to follow this from March 2027. Other rules may apply for businesses in Northern Ireland, Scotland and Wales, check with your local council for requirements.

Use the right communication systems

You need reliable internet for your cafe – not for customers to browse on Wi-Fi, but for essential operations like:

• Point-of-sale systems that require consistent connections
• CCTV and security systems (that use internet)
• Card payment terminals that need stable connections

Tom Grange - Energy and Connectivity Director at Bionic recommends - "For cafe businesses, we typically suggest business broadband with guaranteed minimum speeds and priority fault repair. Compared to home packages - which can experience prolonged outages - you could make some revenue savings. You could also consider a separate guest Wi-Fi network with bandwidth limits to prevent customers from affecting your operational systems."

Learn more about broadband for business.

Choosing the right equipment and suppliers

The equipment and products you choose can directly impact your cafe's efficiency, product quality, and how profitable your bottom line is.

Equipment decisions: buying vs. leasing

For new cafe owners, the decision between buying and leasing equipment is a big one – what should you opt for?

Buying equipment outright:

• You're in control and the owner
• No ongoing monthly payments
• May be more cost-effective long-term

Leasing equipment:

• Requires less upfront capital
• Often includes maintenance and repairs
• Allows easier upgrades as technology improves
• Frees up cash in your business for other uses

It might be a good idea to use both – buy smaller items outright while leasing major equipment like espresso machines and fridges. This way, you own some items but free up some cash for other unexpected expenses and emergencies.

Remember that the cheapest option might not always be the best. A higher-quality item might cost more initially but will likely require fewer repairs and last longer.

Building relationships with local suppliers

Without suppliers, you'd have no business – they're key to your operations and success. Building strong relationships with local providers can lead to better pricing in the long run, reliable delivery, and unique products – helping you to stay ahead of competitors!

When choosing your coffee, consider:

• Local roasters who can provide, the freshest roasted beans
• Suppliers who offer barista training along with their product
• Companies with ethical sourcing practices
• Providers who can create custom, unique blends for your cafe

When choosing bread and or produce, look for:

• Local bakeries for fresh pastries and bread
• Seasonal produce suppliers
• Artisanal food producers for speciality items
• Wholesalers with flexible minimum order requirements

You might want to create cross-promotional relationships with your suppliers. For example, partnering with a local bakery to offer a free pastry with every coffee using a subscription or email sign-up, benefiting both businesses.

You'll want to make sure your suppliers are up to the job and align with your values as a business owner. When choosing potential suppliers, consider:

• Product quality and consistency
• Delivery reliability
• Payment terms
• Minimum order requirements
• Sustainability practices
• Customer service and support

Regularly review supplier performance and be willing to make changes if quality or service declines. Having backup suppliers for essential items helps avoid issues if your main vendor has issues – no cafe owner wants to run out of coffee!

Managing costs while increasing profits

Running a cafe might not seem complicated, but ensuring you're profitable in these current economic conditions requires a bit of forward thinking and some careful financial management.

Controlling food and beverage costs

The great thing about coffee and tea is the markup. Beans, tea and milk cost far less than the price of the drink, so your margin on each cup could be high. But that doesn't mean you don't need to control food and beverage costs by keeping some measures in place. Consider the following:

• Use standard recipes with precise measurements
• Train staff to follow portion controls (just like the big chains do!)
• Do regular inventory counts
• Track wastage and identify any patterns
• Use seasonal ingredients when possible
• Check your menu pricing every few months
• Analyse item profitability and sales volume

Lots of small changes can make the world of difference across high-volume items. For example, if milk costs rise by 5p per coffee and you sell 200 coffees a day, 6 days a week, that's around £3,120 a year off your profit, if you're busy!

To keep on top of the details, look to:

• Negotiate volume discounts with your suppliers
• Join buying groups for better pricing
• Use an inventory management system
• Reduce menu size to focus on profitable, popular items
• Create specials that use ingredients regularly in stock – for example, a weekly special croissant with different fillings depending on high stock levels.

Pricing strategies for profitability

Setting the right prices is key for balancing competitiveness with actually making a profit. Various pricing strategies can work depending on your location and concept:

• Cost-plus pricing - Calculate the cost of ingredients, add labour and overheads, then apply a markup.
• Value-based pricing - Set prices based on perceived value rather than just costs. Premium locations or unique offerings can give you scope for higher prices.
• Competitive pricing - Look at similar cafes in your area and ensure your pricing is competitive.

How to work out your gross profit margin

Gross profit margin shows how much of each sale is left after ingredient costs. To work this out you could use this simple formula:

Gross profit margin = (selling price without VAT – ingredient cost) ÷ selling price without VAT × 100

For example, if you sell a latte for £3.60 including VAT, that's £3.00 without VAT. If the beans, milk and cup cost 45p, your gross profit is £2.55. That's a gross profit margin of 85%. Remember, this is before rent, staff and energy costs.

You'll have to consider that your brand awareness will be zero when you start out, so you're going to have to work harder to gain the attention of customers than the local coffee shop that's been around for 5+ years.

So, consider using a blend of the approaches above, with competitive pricing on common items like filter coffee and value-based pricing on signature items or specialities you offer.

When setting prices, remember to account for:

• VAT (if registered)
• Card payment fees (usually a small percentage of each sale, so check your provider's rates)
• Delivery platform commission (like Just Eat if you offer delivery)
• Wastage and free items
• Changing seasonal ingredients and their costs

Read up more about how to price your product here.

Creating a unique cafe concept

In a crowded market, having a concept that stands out can help attract and keep customers. Your cafe's identity should reflect both your passion for the business and the best and market opportunity.

Identifying your unique selling proposition

What makes you stand out? Your unique selling proposition (USP) sets you apart from your competitors and gives customers a clear reason to choose your cafe. Strong USPs often focus on:

• Speciality coffee - Featuring single-origin beans, alternative brewing methods, or award-winning baristas.
• Food focus - Offering something beyond standard cafe fare, such as authentic ethnic cuisine, health-focused options, or artisanal baked goods.
• Atmosphere - Creating a distinctive environment, whether it's a quiet workspace, a family-friendly setting, or a vibrant social hub.
• Community connection - Building a cafe that reflects and supports the local community through events, collaborations, and involvement.
• Sustainability - Making environmental responsibility a central part of your brand identity and operations.

Concepts like cat cafes have a very unique concept, as there is an extra charge for playing with cats, while concepts like luxury cafes with high-end interiors can try to charge a premium based on their perceived brand and quality perception.

To identify your USP, research your local market to find gaps in the market. This doesn't need to be overcomplicated. Speak with potential customers about what they want but can't currently find. Test concepts with pop-ups or market stalls to see if they generate interest before committing to a permanent location.

What cafe products and services will you offer?

Before you open, you'll have to choose which products you're going to sell. This may seem like an obvious point, but this can be a more in-depth process than you may have anticipated. For example, you will need to decide whether you're going to serve a primarily drinks-based menu, or have a full food menu and working kitchen, too. Just some of the products that you may want to consider are:

Drinks	Food
Hot drinks - teas, coffees, hot chocolates	Sandwiches, baguettes and paninis
Refrigerated drinks - bottled water, juices	Pasties and pies
Iced teas and coffees	Cakes and biscuits
Milkshakes and smoothies	Soups and stews
Alcohol - spirits, liquors or just bottled beers?	Crisps, nuts and other snacks

You should also consider other food offerings, such as burgers, pizzas and takeaway food, as well as breakfast foods such as fry-ups and porridge.

As you can see, the potential variety of products on a cafe's menu spans a wide range. You'll have to make a number of decisions about what types of products you want your business to sell, as well as consider the implications that selling certain products may bring – for example, a licence to sell alcohol. Different products will have different profit margins, and this is important to bear in mind, too.

You may find it beneficial to keep your menu short and simple, to begin with. As some teething problems are to be expected in your first couple of weeks of opening, you don't need to overcomplicate things for kitchen staff or baristas with a complex menu. It's always possible to rethink your menu at a later date and add to it if you feel capable of handling more.

Designing your space and atmosphere

Your cafe's space should reflect your concept and create the right atmosphere for your customers to enjoy. Consider:

• Layout - You want to make it easy for your staff to work around the tables, but you also want customers to feel relaxed without feeling cramped. Leave enough space between tables for people to move around easily, including buggies and wheelchairs.
• Seating: Different customers have different needs. Laptop workers prefer tables with power outlets, while large families need lots of comfy seating.
• Lighting - Natural light creates a great daytime atmosphere, while adjustable lighting allows for mood changes throughout the day and a cosier late afternoon vibe.
• Acoustics - Hard surfaces create noisy environments that can interrupt conversations. Consider using some soft furnishings to balance this out.
• Sound - The music that you play in your cafe adds to the atmosphere. Think carefully about the style of music that you play, as well as the volume at which you play it.
• Temperature – You should keep your cafe at a comfortable temperature so that customers are neither too hot nor too cold. Keep an eye out for signs that the temperature may be wrong – for example, customers wearing coats indoors.
• Cleanliness – Keeping your cafe clean, especially the toilets, is a big part of giving customers a good experience.
• Furniture and wares – Your cafe's tables, chairs, cutlery and even cups and saucers should all reflect the overall design and décor theme.
• Branding elements - Make sure your visual identity comes through in interior colours, materials, and design elements that reinforce your brand.

Now, we know budgets can be limited if you're starting out so second-hand furniture can be a good way to get going. Using Facebook Marketplace, Freecycle and other online platforms can be great for sourcing furniture items that can be costly.

More importantly, just focus on a few key areas that define your space rather than trying to transform everything at once.

How to run a great cafe

Once your business has opened its doors to the public and started trading, a key aspect to focus on is efficiency - cutting costs and growing your customer base will help to improve the overall success of your business.

Even if your cafe is well established and has been serving customers for years, it can often be beneficial to take the time to assess the way in which you currently operate and make changes to improve your service.

Remember customers are human

When you're caught up in the rush of a busy day in the cafe it's easy to accidentally slip into 'robot mode' and focus solely on churning through as many customers as quickly as possible - something which may mean you forget to add a personal touch to your service.

People are innately social, so a little bit of interaction can go a long way. Just a few ways that you can add a more personal touch to your service are:

• Greet customers as they enter
• Make eye contact as you're serving them
• Engage in small talk and chit chat
• Be honest – if their coffee is going to take ten minutes, tell them
• Anticipate their needs – for example, napkins for a spilt drink

Encourage customer loyalty

Repeat customers form the backbone of sustainable cafe businesses. Building loyalty requires both great products and a memorable experience. Here are some ways to increase customer loyalty:

• Loyalty programmes - Digital or card-based schemes that reward frequent visits. If you use paper stamp cards, a custom-made stamp that's hard to copy could help stop fake stamps.
• Community events - Host gatherings that align with your brand, such as coffee tastings, local art exhibitions, or community meetings.
• Personalised service - Train staff to recognise regular customers and remember their preferences.
• Feedback mechanisms - Create simple ways for customers to share suggestions and respond visibly to this input.
• Social media engagement - Maintain active profiles that showcase your offerings and respond to customer interactions.

Remember that building loyalty starts with consistent quality. The best marketing in the world can't overcome bad products or service.

What to do when it all goes wrong

It's inevitable that your cafe will run into some obstacles on the road to success, and although you may not be able to avoid them, properly preparing yourself to deal with hurdles can minimise the negative effect they can have. Some common scenarios that your business may experience could include:

• Late or incorrect delivery may mean you do not have the correct stock or products to sell.
• Staff AWOL – service standards can fall easily when understaffed.
• Equipment failure – the machine your cafe depends on could break at any time.
• Personal injury – yourself, a member of staff or a member of the public could sustain injury on your business premises.
• Fire or flood – a kitchen fire or burst pipe could force you to close for weeks.

It can be useful to spend time thinking about all the possible hindrances your cafe could experience, and making sure that you have set processes in place to help you cope in the event that one occurs. At Bionic we can help insure your cafe business. Our UK-based insurance team are on-hand to talk through your options. Compare cafe insurance quotes with Bionic.

Useful advice from cafe owners

Now that you've read through all the tips and advice on starting, opening and running a successful cafe, you'll probably have a lot of thoughts about your own business - and perhaps ideas for changes that you'd like to make. Yet there's also a chance that you might be wondering how the advice given here could make a tangible difference to your business in particular.

In order to conquer any doubts you may have, we decided to see what past and present cafe owners – those who have been through the process of opening and building successful businesses – had to say, and what advice they would offer up to those starting out or looking to improve.

Hear some advice on running a cafe from Jeanette, owner of Midway Truckstop in Whitchurch, who has been serving customers for over 50 years. Watch now.

Read more on Midway Truckstop’s story. 

Lady Dinah's Cat Emporium, Shoreditch

"A unique theme can set you miles apart from your competitors." Lauren Hill, owner

Even with the unique premise of being a Cat Emporium, Lauren Hill, owner of Lady Dinah's, felt that her cafe needed something more to really set it apart from any other. “I wanted [an Alice in] Wonderland theme … and also something that was quite British, because obviously there are cat cafes all around the world, and I wanted this one to have its own, unique twist.” The Cat Emporium in Shoreditch is constantly bustling, and customers have to reserve a table to be able to visit – suggesting that it must be doing something right!

Khamsa Cafe, Brixton

“Be passionate. No one will believe in your business if you don't.” Djamel Ait Idir, owner

The importance of believing in what you do is essential to a cafe's success, as explained by the owner of the Khamsa Cafe in Brixton, Djamel Ait Idir. His philosophy is that having a burning passion for running a cafe can not only boost your business's chances of in the long run, but also help to carry you through difficult patches in the short term.

Djamel believes that “you don't need a business studies degree” to run your own cafe, as long as you believe in it.

Real Meals, Saltburn-by-the-Sea

Lorna Jackson, owner of Real Meals cafe, considers this to be the best piece of business advice that she has ever received. If your cafe is able to listen to customers and reflect their wants and needs, you're sure to build a loyal fan base that will keep coming back – and that will spread the word of your cafe to their friends and family. As Lorna suggests, “it's all about bringing people together... the internet has its place but there really is no substitute for meeting people face-to-face.”

“Listen to your customers. Without them, you don't have a business.” Lorna Jackson, owner.

Running a cafe FAQs

Is running a cafe profitable?

A cafe can be profitable business, specially if you work hard. Margins can be tight once rent, staff and energy are paid, so you have to consider that. Hot drinks usually have a high gross margin, so your location, pricing and cost control could make a big difference when it comes to profitability.

Do I need a licence to open a cafe?

You don't usually need a trading licence to sell hot drinks and food. But you do need to register as a food business at least 28 days before you open. You'll need a premises licence to sell alcohol or serve hot food and drink after 11pm, and a music licence to play music.

Do I need qualifications to run a cafe?

You don't need any specific qualifications to run a cafe in the UK. But food hygiene training for you and your staff could help you get a good food hygiene rating.

Do I have to display my food hygiene rating?

It depends where your cafe is. Displaying your rating is a legal requirement in Wales and Northern Ireland. In England it's voluntary, but customers can still check your rating online.

How can I make my cafe stand out?

You can make your cafe stand out with a clear unique selling point. This could be speciality coffee, a food focus, a welcoming space or strong links with your local community. Testing your idea with a pop-up first could help!