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Many individuals, not necessarily entrepreneurs, dream of owning their own café. The idea has an immersive component. In my career I have come across countless people who were excited at the mere thought of the possibility. Unsurprisingly, I’ve also come across quite a few with decent savings, family money, or disposable income who decide to turn that dream into reality. The hard truth usually comes out a few months after most of the investment has already been injected into the project.
When considering this investment, keep in mind that it is common today for brands to be judged on their online presence and following. Most importantly, potential customers notice what the company wants them to see through social media and what their influencers choose to promote. Since decor and atmosphere influence the first impression, the most “Instagrammable” cafes are often added to many must-visit lists. As with many cafe startups in the UAE, it seems somewhat justified that entrepreneurs tend to splurge on interior design and branding.
But at what price?
Initiating hype on social media before opening a business is always a good idea, but know that overnight success is a myth. Many new owners tend to get a false sense of security and are prone to slacking off when they find their establishment booming in the first few months. Consumers are curious enough to capitalize on the hype of a new cafe with at least one visit, and they will come with high expectations, so be prepared for diligent follow-throughs and remember that hype is short-lived.
Related: Harnessing the Power of Social Media
The clock officially starts when a customer first walks through the doors of the establishment. An immediate success means that a customer leaves very impressed with their experience and eager to return. Conversely, if their overall experience isn’t satisfying, their negative feedback is more likely to spread.
Our survey of cafe and restaurant trends in the UAE in 2019 found that only one in 12 people would post about their positive experiences online without being encouraged by the establishment. However, a dissatisfied customer would talk to an average of eight people about their negative experience. We also found that one in three people would post online about their negative experiences. A whopping 82% of customers do not return to a cafe or restaurant when they experience erratic customer service or inconsistencies in the quality of food and drink.
Related: How to Start a Restaurant
With all that in mind, it seems sensible for your launch to include some vigilant and progressive strategies. In a market that can be considered oversaturated, we have witnessed the hardship and demise of many avid entrepreneurs who have underestimated the demands of starting and maintaining a cafe in the UAE.
Here are five common mistakes I’ve seen firsthand and some opinions to consider before embarking on your journey.
1. Overestimate your location
Considering the investment of starting a cafe, it is safe to assume that you have done your due diligence and quantified the costs and benefits based on your location. But pay close attention to all tangible aspects of the property, such as visibility, foot traffic, customer parking, environmental noise, local clientele and local competition. If there are many similar establishments around, how do they perform throughout the day and how do you stand out in your particular location? In addition, keep in mind the limitations of your space and future neighborhood developments.
Forecasting revenue too much, in part because of the wrong location for your particular brand, can be a costly mistake in terms of time and money.
2. The blatant carbon copy strategy
Customers are seemingly tired of the constant replicas of interior design, in many cases exact copies of menus and dish styles here. Aesthetic elements of successful establishments are often copied. This practice, without restraint, will lead your customers to compare you directly to your inspiration models.
When it comes to the overall design of your space, start with your menu in the foreground. This approach helps you plan equipment and exact space requirements, including kitchen and behind-the-bar workflow. You’ll quickly find that the menu is more relevant to your space than the aesthetics.
Find your niche and create credibility through your offerings or individuality, while ensuring the highly efficient workflow layout of your space.
3. Neglecting your staff
Since customer service is at the heart of hospitality, it’s surprising how often the ‘wrong’ staff find themselves in customer-facing roles. Because they have to show their ‘A’ game every shift, many employees are simply not made for hospitality, and your customers will notice. Many employers prefer quantity over quantity by hiring substandard staff with lower salaries rather than attracting highly skilled and efficient staff with better salary offerings.
Have a comprehensive workforce plan and strive to hire the right people. Personality wins repeat customers in the hospitality industry. An inherent willingness to learn, coupled with core competencies, ensures that your employees steer your business in the right direction.
4. Choosing Unsuitable Suppliers
As an owner, you should be involved in the supplier selection process and, before making a commitment, look for real testimonials and references. There’s nothing worse than premature stock depletion, delayed deliveries, or receiving bad ingredients when you’re trying to run your business. The cheapest options are usually that for a reason. A flaw in your supplier’s quality control means your business reputation suffers. This purchasing strategy is not the most sustainable option.
Keep in mind that side deals or crowds are a thing. Certain suppliers can not only influence the selection process, but many also have their ways of deliberately increasing the order frequency. Being actively involved in the cafe industry in the UAE for over ten years, I have often witnessed such unethical practices.
Work with suppliers who have achieved their integrity through experience and reputation. Identify individual representatives who want to understand your business and put your interests first. These suppliers exist.
5. The Early Inconsistencies
You can mitigate day-to-day inconsistencies with the right leadership and assigned teams and by ensuring strict policies through detailed work procedures and regular training. Well appointed management must ensure that detailed checklists and recipes are accessible and followed closely by all staff.
Customer incidents should be recorded and included in the daily discussions with the team. Through regular open communication and team encouragement, any shortcomings can be a powerful training tool. Keep your team happy and motivated, and remember that superior customer service, product quality and consistency leave less room for error.
Related: 18 Brutal Business Failures By Wildly Successful Entrepreneurs
Final Thoughts
An owner’s commitment to his own business is an irreplaceable personal touch. Many customers feel at home and appreciate the soul of a cafe with a present and active owner. It is imperative to understand your day-to-day activities and interact with your early clients to build rapport. Build on your customers to learn what sells and what doesn’t.
Be aware of your competition while ready to evolve and innovate. Adding new items to the menu or replacing the non-sellers will keep it fresh and exciting for your guests. Ultimately, provide detailed measures to ensure that your business is run and delivered consistently from day one.
