The US is the leading market for coffee in the world. So throwing a dart on a map of the country may be as good a method as any for finding the right location to open a coffee shop. But if you really want to know where the best markets are, the new Frontier Business report has come up with 50 of the best cities in the country to open such a small business.
Best Places to Open a Coffee Shop
Would you have guessed cities like Laredo, TX; Oklahoma City, OK; Charlotte, NC; Greensboro, NC, and Tulsa, OK would be the top five locations to start selling lattes? Not surprisingly, the report is filled with small cities across the country. And the biggest reason might be the over-saturation of coffee shops in major metropolitan areas.
Winston-Salem, NC; El Paso, TX; Hialeah, FL; Birmingham, AL; and Lubbock, TX wrap up the top 10, also small cities — and all in the southern United States. As a matter of fact, the top 12 cities overall were from the South.
Frontier Business compared the best large cities to start a business and the best coffee cities with the fewest coffee shops per capita. Researchers looked at factors such as labor costs, rent affordability, cost of living, household spend on coffee, highly rated coffee shops, and coffee shops with free WiFi.
But Before You Open Your Coffee Shop…
According to Frontier Business, your shop will stand out if you find a niche with specialty coffee. The organization recommends targeting coffee lovers by offering dedicated techniques for roasting, brewing or serving their cup. You can also make your place animal-friendly, provide amenities for freelancers and target different segments of your neighborhood.
Frontier Business also has four suggestion for opening a successful coffee shop. They are: understanding business basics, developing coffee expertise, having a curated atmosphere and getting the best possible location.
The US Coffee Market
Americans drink more coffee than any other country in the world. In real numbers, this translates to 2.7 cups per day for the average coffee drinker in the US. The amazing total comes out to 400 million cups of coffee per day or 140 billion cups per year for the approximately 150 million Americans who need their cup of Joe.
It is not surprising sales in US coffee houses is growing. According to market intelligence agency Mintel, in 2017, coffee sales reached around $23.4 billion, which was a growth of 41 percent from 2011. The firm is forecasting they will jump to $28.7 billion by 2021.
So if you have been looking into opening a coffee shop, the Frontier Business report is a good place to start.
Here are the Top 50 Cities for New Coffee Shops
Image: Frontier Business
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2.7% of the population makes minimum wage. Raising minimum wage only affects people who make below the new minimum wage. (if you make $15 per hour and they raise the minimum wage from $7.50 to $15 per hour, you do not get a $7.50 raise… you still make $15 per hour and, are now a minimum wage employee)
Raising the minimum wage raises the cost of everything else (companies don’t just eat that loss, they pass the extra wage costs on to consumers plus a little more). When I was a kid and minimum wage was $4 per hour, McDonalds cheeseburgers cost $0.39, a 6 pack of tacos from Taco Bell was $2.99, gas was $0.87, a nice car was $10,000, a 2 bedroom apartment was $350.00 per month, and a 3 bedroom house was $30,000.
Raising the minimum wage caused these prices to go up.
Raising the minimum wage only creates more poor people who make minimum wage.