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How Much Does It Cost to Open Up a Coffee Shop? Career Change Risks

September 1, 2023
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Is It Worth Switching Careers to Open a Coffee Shop?

For most middle-aged career changers, opening a coffee shop is not a better bet than a 996 office job. Chain brands such as Luckin, Cotti, and Lucky Cup keep expanding while independent cafes multiply, but barista pay stays low, pure cafes turn tables slowly, and only a few cities like Shanghai offer decent income. The low entry threshold hides heavy ongoing costs, so asking how much does it cost to open up a coffee shop? is only the first question.

The economics explain why. Barista work needs little formal certification, so pay stays transparent and generally below other professions. Franchising and going independent each carry their own costs, and sustained losses plus low-price competition follow. Anyone weighing a coffee shop against office work should look at the industry's real numbers before committing.

The number of chain-brand stores from Luckin, Cotti, Lucky Cup, and the like has grown explosively, and at the same time independent cafés have been springing up like bamboo shoots after a rain. Many middle-aged people have begun to wonder: is switching careers to open a café more worthwhile than working 996? Reality, however, is anything but romantic — barista salaries are generally low, pure cafés have limited table turnover, and only a few cities such as Shanghai offer decent income. Opening a shop may seem to have a low threshold, but franchising and going independent each come with their own costs, and sustained losses and low-price competition follow close behind. This article analyzes the true face of café entrepreneurship layer by layer, from the current state of the industry and practitioners' incomes to career-change cases and the realities of running a business, offering a sober reference for those harboring a coffee dream.

The number of stores from chain brands like Luckin, Cotti, and Lucky Cup is expanding at what can only be called an explosive pace. Autumn has clearly passed, yet independent cafés and baristas keep popping up like bamboo shoots after a spring rain, one batch after another. Take out your phone and look around: if you can't find three cafés within three kilometers, you most likely live on the fringes of the city. For someone entering middle age, is switching careers to make coffee really a more promising path than working 996?

From a barista's perspective, the answer is no. Although this industry also allows you to earn titles through professional exams or certifications, many positions only require a bit of work experience before you can stand behind the bar and serve drinks. Compared with titles like engineer or accountant, "barista" often falls short in terms of the threshold of professional knowledge. On the other hand, because the number of cups a shop produces daily and its number of on-duty employees are easy to tally, barista pay is relatively transparent. Apart from a few shops that lean toward a restaurant model, pure cafés do not enjoy the high table turnover of the restaurant industry. Judging from various job listings, practitioners' incomes are generally lower than those of other professions, and at present perhaps only some stores in Shanghai offer fairly decent income; in many cities, barista salaries are far from ideal.

Setting aside the two realities of low pay and endless dishes to wash, this industry still holds strong appeal for young people. First, coffee as a whole conveys a youthful temperament and is regarded as a marker of a culture of enjoyment; second, the relaxed atmosphere of a café creates the illusion of low work pressure, as if you could finish your shift just by chatting. If you truly can't stand having a boss over your head, a café — something that relies on skill and investment — easily stirs the urge to be your own boss. This was also a lifestyle choice for young people earlier on: at worst, save one salary and go it alone; it doesn't matter if you don't make money — the most important thing is to stop working for someone else.

Saying goodbye to 996 and switching careers to open a coffee shop: the ideal way out for middle-aged people or a 007 trap?

In the past year or two, things have quietly changed, and another force is now converging with young people. Passing by office buildings in the city's core districts every day, the number of rooms with lights on for overtime is now less than one-fifth of what it was three years ago. Among these disappearing people, quite a few middle-aged individuals have also found common ground with young people. Switching careers in midlife to open a café has become a hot topic, and one UP host shared on Xiaohongshu a study list for a planned career change into coffee at age 36, striking a chord with many.

This UP host displayed her preparations, including reading books such as The World Atlas of Coffee, The Coffee Roaster's Handbook, and The Psychology of Feeling. This note received 1,500 likes and 2,300 saves, making it the most-read piece among the content she had posted as a food blogger. Many people participated in the comments section, and their ideas were quite similar. There was a 33-year-old business owner in international trade enrolling in an SCA course to make the switch, and there were also those who had already opened cafés urging people to think twice. Most people did not realize what kind of future they were about to face.

Getting started with opening a shop isn't hard — you just need money. Opening a café comes down to two paths: franchising or going independent. Take the franchise route, and you need to bear site-selection fees and daily expenses, while the headquarters handles matters such as machines and design elements. According to the customer service of a well-known brand, opening an 80-square-meter store costs about 800,000 yuan in total; with a monthly income of 20,000 yuan, you can recoup your investment in two to three years. By contrast, opening independently gives you more control over costs, but recouping your investment within a year would in reality be rather difficult. Sustained losses right after opening — this is the first reality that newcomers know about but never expect to be so large.

This stage may weed out a large portion of competitors, and the remaining shop owners in the coffee world must then face the constant competition of racing to the bottom on price. They never imagined that what they thought would be a stable job — one that wouldn't make big money but wouldn't come with much pressure either — would in reality mean that even if you don't want to compete, you still can't beat others who are desperately losing money. You sell a cup for 20 yuan, and someone next to you sells it for 9.9 yuan; faced with reality, there's simply nothing you can do. In the end, all you can do is mind the shop every day and joke about it: this shop is just opened for me and my friends. A handful of bitter tears — only the shop owner knows.

Coffee shops are appearing more and more densely around us and will become part of daily life — this is an undeniable trend. But within this trend, without a clear business direction, most people who give up 996 may ultimately find themselves "blessed" with 007. Every artsy young person will eventually have a dream of a café of their own, but before that, they may really need one thing — not to be short of money.

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Saying goodbye to 996 and switching careers to open a coffee shop: the ideal way out for middle-aged people or a 007 trap?

The above content is compiled by CoffeeHunters, a coffee news website.

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