How To Open An Espresso Bar

Many people dream of opening an espresso bar but there are several factors to consider before this dream can be actualized.

espresso barMany people begin planning about opening their new espresso bar based on their dreams. While it is normal to get swept away by your dream, too much energy and time can be wasted working on your plan when in reality, you may not be able to afford what you need to get started.

New entrepreneurs are able to secure funds to open their espresso bar but find that the little money they have is not enough to pay their employees, their bills, purchase equipment and generate some profit. To avoid being in such a predicament, the following are some of the things that you should consider.

How To Open An Espresso Bar

Raising Capital

The first question you should probably ask yourself is how much capital can you raise? Unless you have a substantial amount of money saved up, you might need to make a trip to the bank and discuss the possibility of securing a loan to fund your business.

There is a high chance that your loan may not be approved because banks are typically unwilling to lend money to businesses in the food industry. This is because such businesses have a 95% chance of failing. They are even less willing to lend to a startup.

To increase your chances of securing a loan, you should invest at least more than 50% of what you need. Many bankers sound like financing your business won’t be a problem when you make your first inquiry but when you go back to actually get the loan, the banker changes their demeanor like the first meeting never happened.

For this reason, ensure that you get honest answers during your initial visit. Inform them that you will base your assumptions, planning and business concept based on what they are willing to lend you.

Consider Securing An Equipment Lease

Espresso machines can be very costly and you might end up tying all your funds in equipment. This will leave very little money for paying your bills, paying your employees and taking care of other business operations.

You can save on a lot of money and boost profits by leasing espresso machines. Remember that the only way you can truly benefit from leasing is to analyze the risks and negotiate with your equipment leasing company.

If the lease terms and rates are not conducive to your financial model, then agreeing to that lease will only be a set up for failure. You therefore have to understand how the lease terms and rates can affect your chances for success.

You cannot get a true picture of how much your lease is going to cost you by simply looking at the rates. A lease with the lowest rate might end being the most costly transaction.

Other factors that can increase the cost of your lease include:

  1. Interim rent
  2. End of lease options
  3. Tax savings
  4. Lease contract renewal
  5. Early termination of a lease

Ensure that your lease has the option to renew for a second term. If this option isn’t included in your lease, two things might happen:

  1. The equipment leasing company may decide not to renew the lease for another term so you might end up searching for another leasing company. Not only is this time consuming but it is also a waste of money.
  2. The equipment leasing company may decide to increase their rates. The greedy ones will increase their rates significantly and this may drive you to look for another equipment lessor.

Never sign a lease without a leasing professional reviewing it first.


The mentioned tips for starting an espresso bar are just to help you secure finances and reduce on your initial costs. Other factors that come into play include finding a good location, interviewing, training and hiring employees, finalizing your menu, creating a business plan, obtaining bureaucratic approval and selecting the type of espresso machines that you need.

While it may not be easy to get approved for a loan especially if you are a startup, you might consider other financing sources such as equipment leasing companies to obtain your equipment. This way, you won’t need to have large cash outlays upfront.

For more information on leasing espresso machines for your espresso bar, simply CLICK HERE.