Coffee-loving entrepreneurs take note: it seems as if the days for settling with lukewarm, instant coffee are far behind us. With the rapid growth of the coffee business, more and more people are demanding higher quality brews, and more and more enterprises are cropping up to deal with the demand. Because of its accessibility and versatility, a common response to this market growth is the mobile coffee cart. It’s a popular one, seen in parks, concerts, and coffee catering in public and private events. However, just like all other business, the mobile coffee cart business also has a number of advantages and disadvantages that you need to consider before jumping into the business.
Advantages of a Mobile Coffee Shop
1. Affordable
While there are many international chains that continue to dominate the market (such as Starbucks), it may seem daunting to foray into the coffee market. Not all of us could afford the high start-up costs of franchising or start up our own café ourselves. Mobile coffee carts require a fraction of the costs of franchising or start-ups. Many ready-to-go coffee cart packages are for sale in the market, and some even come with the support of a trusted brand.
2. Versatile
Akin to food trucks, mobile coffee carts like butler koffee cart in Singapore are coffee-making stations that you could drive (or push, or bike) around the city. Mobile coffee carts are highly versatile; if it has wheels, you’re good to go. Its versatility means that you could also pick or build a cart that fits your budget.
3. Flexible
A coffee push cart can be operated on a very flexible schedule. Because of its design, you could choose to fit your business around your lifestyle instead of the other way around. You could choose to sell at a few shows or events around your area, do the occasional coffee catering, or create a regular career out of it by sticking to a set schedule and location. Since it just needs one or two people to operate, you don’t have to meet with a large group of people to discuss where and when to go. If you are so inclined, you can even choose to operate your mobile coffee cart as a part-time job, or as a hobby on off-days.
4. Not Seasonal
Coffee isn’t a seasonal product, and people drink coffee year-round. With coffee, the weather doesn’t matter. Even if people tend to drink their coffees hot by default, hot weather could easily mean an iced latte, or a frappuccino.
5. Profitable
Due to the rapidly growing market, many people are expecting their cappuccino to be more artisanal. This growth is attributed to the large profit margins of the business, allowing it to expand at an incredible rate. The coffee business is estimated to have one of the largest gross profit margins. This rapid growth means that it’s the perfect time to hop on board.
Challenges of a Mobile Coffee Shop Business
1. Licensing
In order to operate your mobile cart, you will need to apply for a number of licenses that would require extra time and additional payment. You will also need to check if you are allowed to operate in the locations that you have already chosen. You don’t want to be kicked out and fined simply because you didn’t check your license beforehand.
2. Competition
While the market boom means more profit and more customers, it also means more competition. You will need to figure out how to provide something new and better than your competitors. Of course, you will need to perfect the art of creating coffee like https://www.butlerkoffee.com/ in Singapore has done, so take the time to practice and perfect your skill in coffee making—this doesn’t just mean the fancy pattern on a cup of mocha, but with the very brew of the coffee as well. Attend workshops and seminars to hone your coffee making skills.
You will also need to note of the competition while you are selling, especially at events. There will be a number of carts that will also be selling beverages; carts that are also selling food will have an advantage over you. Customers already lining up for food rarely want to line up again; they would rather pay the same amount (or more) for a product of less quality.
3. Limited Trading Hours
Even though coffee isn’t seasonal, coffee is something that people tend to consume at a set time of the day, namely mornings. People would prefer consuming their coffee before heading to work, or a bit after they have begun their working day. This means that you will have to set up early and choose your locations wisely.
4. Brand loyalty
Brand loyalty is an important facet to note in any business venture, but even more so with a coffee cart business. Global branches like Starbucks already have an advantage of being well-known; more people know of them and would tend to think of them as the default shops to buy coffee from, which means that it’s easier for them to get people to try out their coffee.
It would be hard to find customers if they most are already loyal to a different brand. This means that a bit of creativity is necessary. Think about ways to introduce your coffee to potential customers. One of the ways you could do this is by creating a good website and advertising your business online. You could also hand out flyers. However, the most effective way to gain customers is to hand out free samples. You could hand out free samples during your first few months, or give out introductory discounts and promos.