

One compelling reason why location is critical in this business is that while people love coffee, research indicates they will rarely go more than a block and a half for it. You have to put your business "where the action is," so to speak.
Finding a good location generally requires effort, persistence and patience. Your location considerations will, of course, depend upon your concept. You will need a different type of location for an upscale, sit-down coffee bar than for a cart or drive-thru operation. One factor common to all desirable locations, however, is the proximity of a large population of potential coffee drinkers. Finding such locations can often prove difficult, but the net result will be profit.
High Visibility
Because coffee is primarily a convenience product and an impulse buy, your customers are not likely to go far out of their way to find you. You have to count on high visibility and high numbers of people passing by your location on a daily basis.
High visibility is more important in some businesses than others. If you are going into business for yourself as an accountant, it's probably not important to have an extremely visible location. A dry-cleaning establishment is another type of business known as a destination business, where location is not a critical factor. People will drive four or five blocks out of their way because you are the only dry cleaner in the area and they like your work.
Gourmet coffee businesses, on the other hand, are convenience businesses. Most of your customers come to your espresso cart or kiosk because it is convenient for them. Do not expect your customers to drive in circles on one-way streets and go three blocks out of their way to find you. Your business needs to be in a convenient location for customers-on their way to work in the morning, around the corner from their place of work or in the mall where they shop.
Exercise Patience
Probably one of the hardest things for people to realize is that the right location is worth waiting for.
Generally people get excited about starting a business -preparing a business plan, tasting the coffee, visualizing the store-and they just want to swing the doors open and get going. They might grow impatient and frustrated during the process, compromising their values on the type of location they want. This is a decision you don't want to regret. Take time to find the right location, even if it takes six months to a year.
Two Types of Locations
There are basically two types of locations appropriate for coffee retail: high-migratory locations and captive-audience locations.
The scary part of marketing and serving your customers in high-migratory locations-particularly airports-is that you will usually not have repeat business to support you. Even though bodies are flowing by, you will not see the same people more than once.
You have to market in a different way than in a captive-audience location, where repeat business accounts for a large part of your intake and you rely on drawing the same people back day after day.
Examples of captive-audience locations include large office buildings, business and industrial parks, hospitals and medical centers, college and university campuses, core downtown sites, military bases, and densely populated neighborhoods.
Of these locations, colleges, hospitals, and large office buildings are excellent options, given the unusually high numbers of coffee drinkers as revealed in most demographic profiles.
Many university-based operations do their best business during finals and midterms. But unless a school has a well-attended summer program, business could drop by 20 to 40 percent during vacations. Hospitals, on the other hand, usually supply a steady flow of customers year-round.
Large office buildings with a couple thousand occupants are also ideal. One appealing factor is the hours of operation of an average office building: Monday through Friday from 7 a.m. to 5 p.m. Yes, you can have a normal life and own a foodservice operation.
Captive-audience
Captive-audience locations are more appealing to most of us, because many of the same people will come back five to seven days a week, and you can keep building your business on a solid customer base.
On your first day of business in a captive-audience location, you may sell 35 cups of coffee, but if you produce a good quality product and deliver good customer service, you will probably get 25 to 30 of those same people back the next day. Maybe half of them told their friends. If you constantly build on a captive audience, you should succeed.
Carts
Look for:
The functional advantage of a kiosk over a cart is the extra room it provides, allowing you to offer a wide array of products. With a cart you may have to choose between a granita machine and pastry case. A kiosk usually provides enough space to do much more.
The same factors that dictate the location of a cart should apply also to a kiosk operation.
Drive-Thrus
Heavy automobile traffic for a drive-thru location is an absolute must.
To discover streets that may qualify as good drive-thru locations, go to your city or county planning departments and ask for traffic flow maps. Those black rubber cords people drive over on the street count the numbers of cars traveling a specific stretch of road at various times of day. These numbers typically appear on annually produced maps. The maps are public information and you should certainly request one. Pay attention to the following:
Find a location on the morning inbound commute side of the street (you are going to do most of your coffee business in the morning).
Visibility from the street is essential. If you are located on a parking lot adjacent to a street, it's much better if you're right on the curb where you can be seen from a block-and-half away than if you are 75 yards from the street and no one can see you until they're immediately in front of you.
Utilities will enter into your decision. Check on the types of utilities, how you will hook your drive-thru to them, and obtain estimates on the cost.
Also be sure to talk to your city or county planner to learn about:
So what should you look for in such a location?
The factors that add up to a great location may not be visible to people who don't have retail in their blood. Newcomers often don't see what the professional sees; they do not understand the subtle nature of the business. At the very least, talk to other people who are successful in retail and ask for their opinions.
Bellissimo Coffee InfoGroup carries a full line of business manuals and video tapes on how to get into the specialty coffee business. Visit espresso101.com to order.
Bruce Milletto is president of Bellissimo Coffee InfoGroup and founder of the American Barista & Coffee School.
Ed Arvidson is a senior consultant for Bellissimo Coffee InfoGroup and an instructor at the American Barista & Coffee School

