Because running a café takes more than just a good roast
Updated
March 18, 2026 6:29 PM
A cup of espresso being brewed. PHOTO: UNSPLASH
Coffee has grown beyond being just a drink—it’s part of culture, connection and even a daily productivity hack. Think about it: friends catch up over cappuccinos, professionals start the day with a quick espresso and students practically live on iced lattes during exams. It’s woven into routines, with two-thirds of American adults consuming coffee on a daily basis and averaging around three cups per day. That is much higher than other beverages like tea, juice and bottled water. It is therefore no surprise that the global coffee shop industry is projected to reach about US$123.43 billion by 2030. For entrepreneurs, that makes coffee shops more than cozy corners with good aesthetics. They’re a real business opportunity. But before you open a coffee shop, here are five things you should know.
Like any small business, the success of your coffee shop often hinges on where it is. Coffee may have broad appeal, but daytime foot traffic and visibility can still make the difference between a busy café and one that struggles to stay afloat. Opening near universities, office parks, co-working hubs or residential neighbourhoods with young professionals can instantly give you a strong stream of potential customers.
That said, choosing a coffee shop location is not just about picking a busy area. You also need to know your target market. For example, opening a third-wave specialty coffee shop in a low-income neighbourhood may not work if your prices are beyond what local residents want to pay. The same café might perform much better in a more affluent or fast-changing district.
Competition matters a lot in the equation too. Walk around the area and see what other coffee shops are doing. The goal is not always to avoid competition but to find a gap in the market. If nearby cafés focus on quick grab-and-go drinks, there may be room for a slower, more community-driven coffee shop built around hand-poured brews and a relaxed atmosphere. Simply put, your shop’s exact street address could make or break your business.
It’s important to understand this early on: running a coffee shop is not just about serving coffee. Customers today have endless options, from making coffee at home to buying from major chains like Starbucks. What brings them through your doors is often the overall experience.
According to a report by Salesforce, 91% of customers say they’re more likely to make another purchase after a great service experience. That means your café needs to give people a reason to stay, come back and recommend it to others. Maybe it is the interior design, the playlist that feels just right, the reliable Wi-Fi, the convenient charging points or simply the way the space feels. Remember, good coffee gets people in once, but a strong customer experience gives them a reason to return.
Opening a modest-sized sit-down café in the U.S. can cost anywhere between US$100,000 and US$350,000. The final number depends on your location, your coffee shop concept, your equipment and how much you spend on the fit-out and interior design. Beyond those startup costs, your monthly expenses—like rent, utilities, staff salaries and coffee bean purchases—will play a huge role in whether your business survives the first year.
Profit margins in coffee retail are thinner than new owners expect. On average, small to medium-sized coffee shops make a 3-10% profit margin, which means efficiency is key. Selling higher-margin items like snacks, light bites and pastries can help lift revenue. A US$2 slice of banana bread, for example, may cost cents to make but can still raise the average spend per customer.
You also need to factor in seasonality when planning your coffee shop revenue. For instance, in warmer months, there is usually higher demand for iced and cold beverages. Many cafés respond by introducing cold brew, iced teas, smoothies or limited seasonal drinks to their menus. That helps keep sales steady and protects the average ticket size throughout the year. At the end of the day, running a café is just as much about managing the numbers as it is about serving great coffee.
A barista isn’t just someone pulling espresso shots; they’re often the face of your coffee shop. A warm smile, remembering a regular’s order or sharing a fun fact about the beans can create the kind of connection that keeps customers coming back.
As specialty coffee culture boomed in the early 2010s, baristas became more than brewers—they are now guides and storytellers. By talking about coffee origin, processing methods, bean varieties and roast profiles, they help customers understand what they are buying and why it matters. That mix of knowledge and personality can have a real impact on customer loyalty.
That’s why hiring and retaining great baristas is one of the smartest investments a café owner can make. Beyond competitive pay, creating a workplace where people feel valued also matters. Training, room for creativity and a sense of pride in the craft can go a long way in helping staff stay engaged.
Opening a coffee shop is exciting, but opening the doors and hoping people walk in is not enough. Good coffee shop marketing today is less about spending big and more about telling a story people want to follow. Well before you launch, start building hype and share behind-the-scenes snippets on Instagram, whether that is taste-tests, design decisions or even the messy parts of setting up the space. That kind of content feels real and helps build anticipation.
Once your café is open, think beyond basic promotion. Loyalty programs, collaborations with local businesses or even hosting events like poetry nights, art exhibits or coffee cupping sessions can all help bring people in. Social media is useful here too; it is not only a place to post latte art but also where you show what your brand stands for. Do you focus on sustainability? Do you source coffee ethically? Do you support local artists? Those details humanize your brand and make your café more than just a pitstop for caffeine.
Overall, opening a coffee shop blends passion, community and entrepreneurship. It also requires clear thinking and strong business decisions. From choosing the right location and creating a memorable customer experience to managing costs and building a great team, success takes more than just brewing good coffee. If you treat your coffee shop as both a craft and a business, you give it a much better chance of becoming a local favourite.
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How startups can use nostalgia marketing to build trust, spark loyalty and stand out with storytelling, vintage design and emotional connections.
Updated
January 8, 2026 6:35 PM
Vintage beer pong posters showcasing colorful, diverse designs from different eras in one collection. PHOTO: FREEPIK
Turning the subtle power of nostalgia into meaningful marketing.
Think of nostalgia as a time machine for brands—it doesn’t just take people back; it brings their emotions forward. And emotions sell. For those who are unfamiliar, nostalgia marketing is a strategy where brands use elements from the past—like familiar sights, sounds, or stories—to evoke warm memories and emotional connections with their audience.
This emotional pull isn’t just anecdotal—research shows its real impact: according to The Team and Forbes via The Drum, 80% of millennials and Gen Z are drawn to brands tapping into nostalgia, while 92% of consumers say nostalgic ads feel more relatable. And for startups competing in noisy markets, this is a goldmine.
In this article, we’ll explore why nostalgia marketing can be a game-changing strategy for your company.
Out of all the popular marketing methods—like influencer partnerships or attention-grabbing ad campaigns—nostalgia is unique because its impact starts intrinsically, in the brain. By triggering the release of dopamine, a reward-system neurotransmitter, Nostalgia evokes feelings of warmth, happiness and comfort. Consequently, people don’t just remember a moment—they relive it. Take, for instance, your favorite cereal brand bringing back childhood cartoon characters or using retro fonts and colors. You might choose it over a healthier breakfast option simply because it reminds you of the mornings you enjoyed as a kid. Similarly, speaking of stirring fond memories, Coca-Cola has mastered this effect, using classic holiday ads, vintage packaging, and iconic imagery. Those associations make people see Coke as more than a drink—it’s a familiar feeling they’re willing to pay extra for.
New marketing campaigns can spark curiosity but often trigger skepticism—especially when audiences lack prior connection to the brand. Nostalgia marketing breaks down this barrier by tapping into familiarity, using retro jingles, vintage fonts, pastel colors, or familiar packaging that immediately resonate. This recognition builds an emotional connection and trust with the brand. More importantly, it fosters social connectedness by making consumers feel part of a larger community—giving that reassuring “others remember this too” feeling. As a result, this sense of belonging reduces loneliness, strengthens warmth and trust, and encourages word-of-mouth sharing, naturally amplifying the campaign’s reach and impact.
While luxury brands can afford massive campaigns, startups and small businesses can tap into nostalgia as a cost-effective storytelling tool. In a world where marketing often chases the “next big thing”—from AI to futuristic tech—nostalgia offers the opposite: a chance to revisit the past. More importantly, nostalgia allows brands to stand out in a crowded, fast-scrolling feed by delivering something comfortingly familiar with a fresh twist. Think of Polaroid: in an age where smartphones boast crystal-clear cameras, it wins hearts with pastel hues, a vintage lens, and the tactile charm of instant prints—selling not just images, but a moment that feels straight out of the past.
The same principle worked brilliantly for Tiffany & Co., whose 185-year-old brand refresh featured Jay-Z and Beyoncé in a Breakfast at Tiffany’s-inspired campaign, blending timeless charm with contemporary star power and racking up millions of views. In essence, when done right, nostalgia doesn’t just market a product—it invites people to relive a story they already love.
Nostalgia resonates across generations speaking to diverse audiences. For Millennials, it’s a chance to relive the cultural touchpoints of their youth, while Gen Z approaches it with curiosity, eager to explore eras they never experienced firsthand. This crossover creates a unique marketing sweet spot: one group is driven by memory, the other by discovery. Pokémon proves this power by keeping lifelong fans engaged through retro trading cards while introducing younger audiences to its history. Similarly, Nike used nostalgia to bridge two different generations by reissuing retro classics, keeping both longtime fans and new sneakerheads excited. By appealing to both memory and curiosity, brands can create lasting connections that keep different generations engaged at once.
Nostalgia can be your startup’s non-cliché marketing mantra. Imagine a small bookstore that offers handwritten recommendation cards designed like vintage library checkout slips. This simple touch invites customers to slow down and rediscover the joy of reading. Or picture a local coffee shop serving drinks in mugs inspired by classic diner ware, evoking comforting memories of simpler times. Overall, the lesson is clear: combining nostalgic design with stories that connect people to shared moments creates emotional warmth and trust. Thoughtful nostalgia turns everyday products into meaningful experiences—building loyal communities eager to return.