Coffee Service between 6 - 8.30am

Dezzie

Hi guys

Ive a business idea doing a mobile coffee run in the morning between the hours noted above. Located on a peninsula with a population of approx 500 residents. Ive an ordering system that doesnt require collecting money, preorders each customers preferred drink and can give an ETA of 5min. Im in the process of conducting a survey to assess if the locals would make this a viable business opportunity. Im reaching out to those who may have done a similar business model and what challenges you have faced to provide a different angle on things.

Thanks
Dezzie

Brett_H

Welcome mate! Not a question I could answer but there are plenty here who’ve given it a go.

Koffee_Kosmo

Please do your homework Ask these questions 500 Residents Q How many are Kids How many drink coffee How many are up at that time of the morning And how many customers will be buying coffee ( some may be tea drinkers ) Then calculate the amount of cups you will sell The math will give you a better picture KK

mycuppa

Personally, I think you will struggle to earn enough revenue to cover your investment and time. The MCS (min cup sale) for any venture is 100+ per day as a starting point for part-time and then 300 - 500 for a full day. Modern times = most people in a hurry, don't have time, spent too long reading on their smart phone during breakfast, already have a machine/appliance of some type at home - whether it's a capsule, pod or other. Also, don't underestimate the influence of a demographic such as comparing the propensity for city workers that buy coffees in higher numbers versus the outer suburban workers/residents who tend not to indulge so often in takeaways and only treat themselves to the occasional weekend visit to a cafe, or rely on instant. What's not clear in your statement - how many other outlets in competition in the area, especially Maccas, 7Eleven, cafes, etc. and any other mobile operators. Are the customers coming to pickup the beverage from you or are you trying to deliver it to their front door (which is unbelievably difficult) like an Uber Eats ? There are ways to research and study whether something might work - sit outside a few cafes in the area and see how many people are ordering takeaways.

mycuppa

Most mobile operators struggle to make a decent living going from point to point on "runs" as it can be hit and miss, particularly if someone tries to cut your lunch by running through a bit earlier. The best rewards for that type of business are doing events, but be careful as most events often allow multiple coffee operators and you can end up getting ready for a big day with lots of stock only to sell a fraction of it because there were too many vendors, alternative options to coffee.......or the weather. The key to any of these gigs is to have exceptional efficiency - that means a lot of $$ on capital for milk systems and the best grinders (multiple). Speed is everything as the customer will always be impatient.

askthecoffeeguy

as someone who does events coffee catering I would say that this could potentially be a hard sell. typically at an event you plan to capture 10 per cent of the market, and that's assuming that they are a captive audience and that you are the only vendor given the scenario that you have described I'm not sure that would be the case. all the best with your plans though best, pat

Dezzie

Good day all and thanks for all of your feedback. Let me have another try to clarify my business model My target market are located on a peninsula which means that all residents have to pass our curbside trailer Predominantly high rise apartment valued between $700k to $1million means theres a high percentage of earners with disposable income. Our service is a mobile trailer with a great location within local council guidlines. An SMS based system that captures the customers order, creates an invoice & gives an ETA of 5 minutes. Customers collect the order on the way out of the peninsula I am unsure of the competition in the area, but there are no retail shops My concerns are keeping up with service around rush hour. What other challenges may i experience that I havent thought of? Appreciate everyobes thoughts Cheers Dezie

Brett_H

It sounds interesting but tricky... keep us up to date with your progress Dezzie!

askthecoffeeguy

I used to do an sms your coffee orders service at my cafe at melbourne uni and promise to have coffees out within 4 mins or the coffee was free! no mean feet when you're doing 1000 plus coffees per day! given that you're planning on setting up in a fixed location, that sounds a lot more viable ( for some reason I thought you were planning a home delivery service) I guess the key thing here is consistency and allowing time to build trade, given your relatively narrow trading hours it sounds like your business model might be built on convenience rather than comfort (folks wanting to sit around and stay longer) as someone who has run successful coffee kiosk might I suggest that you provide some seating for punters, even if its just upturned milk crates with padded cushions on top (presuming that this is allowed by local council etc) to encourage patrons to stay for awhile and to build a sense of community could be worth some thought best, pat

Koffee_Kosmo

I really want to ask the OP to give me / us a little background of his coffee knowledge As this worries me My immediate family has been in the restaurant and cafe trade for decades Many people see them succeed and try to copy and fail I have seen many inexperienced ( get rich quick ) operators fail I personally think that after the “What’s New “ factor wears off The customer numbers will fall off unless the coffee is something very special and to stop for - not as a stop gap measure KK

Brett_H

Well said! The domestic market Atha’s already ticked the ‘convenience coffee’ box. Anything less than specialty coffee well made and served with a smile won’t cut it after the honeymoon period... if there is to be one.