Inflation & Interest rate rises

tea

RBA's reporting labor pressures, higher inflation and interest rates to come. Could this mean harder times ahead for most cafe owners?

With suppliers increasing cost, will you increase your prices? Will this mean less customers?

I know a number ppl who own fish and chip stores and they are saying their takings are decreasing because customers not spending as much due to higher interest rates.

I am abit concern as I am planning to open a cafe but now thinking twice due to the current economic conditions...

taz

People always find money when it comes to food, coffee and beer.  

askthecoffeeguy

and people always find reasons not to follow their heart's desire: don't worry about inflation, that just  means folks will have to work twice as hard to make ends meet, and that means more coffee...

tea

Well, coffee is addictive but they might think twice about getting that muffin with their coffee.

askthecoffeeguy

mate if you don't start with an abundance mentality you may as well not be in business!  no doubt owning a successful cafe takes commitment, know-how, expertise, and hard work but at the same time you need to know your market before you start, and to be able to deliver a product and service that is not readily available in that area but more than that you need to be able to carve out a unique market niche for yourself and be confident that you can make it work - all the more so because your chosen team is going to be looking to you to follow your example its natural to be nervous about any new risky financial venture - I should know I'm on the verge of opening two new cafes - but if you're not confident in the first place that you have what it takes to service your chosen market, that would suggest to me the need to go back to basics: go back to your business plan (no good business can survive without one) and re-examine your product mix and your costings remember its not just enough to provide a service, you must also create a REASON for patrons to frequent your establishment - bearing in mind that 80 per cent of the reason that patrons frequent any establishment is due to force of habit what reason do you have for patrons to visit you that is going to snap them out of their routine of getting the same cup of coffee from the same person for the last ten years or so... that's what you need to be thinking about!!!