Finding the right location for your coffee shop is one of the biggest decisions you’ll make as an owner. It’s not just about rent or square footage—it’s about finding a space that feels right, functions efficiently, and sets your café up for long-term success. Whether you’re opening your first shop or your fifth, here are five things to look for in the perfect coffee shop space.
1. High Visibility and Natural Foot Traffic
A coffee shop thrives on convenience and habit. Look for spaces that are easy to see from the street and near daily destinations like offices, gyms, or schools, and offer ample parking or walkability. If you can, spend a few mornings and afternoons observing traffic patterns. I always go to restaurants nearby at lunch to see what the daytime traffic is like. If the restaurants are full, that’s a good sign there are lots of people around the area.
2. Right-Size Layout and Flow
The ideal space isn’t necessarily the biggest—it’s the one that supports your concept. A cozy 1,200-square-foot café can outperform a cavernous 3,000-square-foot space if the layout is right. Look for spaces that allow for:
• A smooth bar flow from ordering to pickup
• Dedicated areas for seating and circulation
• Adequate back-of-house storage and prep space
Sketch out your ideal bar and kitchen layout before signing anything. A few feet of efficiency can save minutes per drink, and that adds up fast.
3. Local Government Rules
Depending on your concept and your local authorities’ rules, you may need things like a grease trap or certain finishes on certain walls. This is a note to make sure and call your local health department, planning and development, and water resources to see what you may need to have to operate a coffee shop. Coffee shops are in a tough place usually because we do “food prep” out where customers can see. Restaurants hide the kitchen because the finishes are ugly, but a coffee shop can’t do that, and we want our coffee bar to be as beautiful as possible, which usually means expensive finishes.
4. Balanced Rent-to-Revenue Ratio
A beautiful location doesn’t mean much if the numbers don’t work. Aim to keep your rent under 10–15% of projected gross sales. For example, if you expect $40,000 in monthly revenue, your rent should ideally stay below $6,000. Remember to factor in triple net (NNN) costs, property taxes, and common area maintenance fees. A slightly less glamorous space with lower rent can often yield higher profits. Also remember to factor in any loans for buildout or equipment.
5. Neighborhood Vibe and Access
Your café should feel like it belongs. Spend time getting to know the area—who lives and works nearby, what other businesses attract the same audience, and what the general vibe is. Also make sure your café is easy to get to. Good parking can make or break even the best cafés. The perfect space is one that complements the community and invites people to make your shop part of their routine.
Final Thoughts
Choosing a coffee shop space is fun, but don’t get carried away with a dream. Try to predict a conservative sales number for your shop. Then add up all the buildout, furniture, fixtures, and equipment costs and calculate the loan cost for it. If the numbers make sense, go for it!