Neighbourhood cafe in a small unit

Local residents, office workers, students, parents and people running daily errands.

Sales of drinks and food at a margin over ingredient and labour costs, with extra from loyalty cards, catering orders and selling beans or retail items.

• Making good coffee consistently
• Cost control and stock ordering
• Customer service and managing staff

• Food premises permit and inspections from your local public health unit, plus food handler certification (rules vary by province)
• Commercial general liability and property insurance, and WCB/WSIB coverage once you hire (check your province)
• Lease terms, rent and fit-out costs, which can be the biggest risk before you have steady customers
• Slow winter months and thin margins, so plan your cash flow
• Zoning, signage and building rules, and in Quebec, French-language requirements

Startup costs are typically estimated at around $40,000 to $200,000, depending on the unit, lease terms and fit-out. Lease terms, rent and fit-out costs can be the biggest risk before you have steady customers, so check them carefully.

Monthly revenue is typically estimated at around $12,000 to $50,000, depending on location, opening hours and menu. Slow winter months and thin margins mean it is worth planning your cash flow carefully.

Check food premises permit and inspection requirements with your local public health unit, plus food handler certification, as rules vary by province. Also check zoning, signage and building rules, insurance, WCB/WSIB once you hire, and French-language requirements in Quebec.