Opening a new coffee shop is not extremely difficult in and of itself, but opening one with a competitive advantage that allows it to prosper rather than fail in the local market is a challenge that requires advance planning. However, there are several proven routes to competitive advantage used by coffee shops, and one may be successful for yours.
Quality differentiation
The quality of your products can turn current drinkers at other establishments into yours and hook those who might be unique visitors to return. To ensure high quality, you must verify quality at every step of the service process, from the sources of your coffees and other products, to the systems, personnel, and equipment you use to store, grind, prepare, and serve. You may need to have unique or unusual fonts for your products so that you don’t compete closely with other stores that share the same vendors. Vendor research may be the best method for this kind of edge, unless you have a specific talent for developing your own products that will make your store stand out.
Differentiation experience
Some retail stores recognize that the visit experience is a compelling differentiation for customers, regardless of the products sold. By offering a specific atmosphere, theme or entertainment, your store can stand out even with relatively standard products. There will be costs associated with whatever unique environment you are trying to create, so be sure to do your research and show how it will allow you to charge a higher price or attract more customers than you would have otherwise.
Price differentiation
As you reach lower and lower prices for a basic cup of coffee, your store can access a much larger market by converting users who would make their own coffee. However, once you try to be one of the lowest priced coffee shops in your neighborhood, it can be difficult to find other ways to distance yourself from the crowd. Although you will make up in volume part of what you lose in dollars per customer, you will probably have little money to play with trying unique marketing or décor to build a brand, and you will always be afraid of direct price competition from both independent and independent stores. chain that try to serve at low prices as well. A pricing differentiation strategy will work best for you if you have a unique way to cut your costs substantially, leaving more room for profit or branding.