Neighbourhood cafe in small premises

Local residents, office workers, parents, shoppers and people passing by.

Sales of drinks and food, with coffee giving the best margin. Takings depend on location, opening hours and keeping food waste and staff costs under control.

• Making good coffee and simple food
• Cash and stock control
• Customer service
• Managing early starts and long days

• Register the food business with your local council, usually at least 28 days before opening (check with your council)
• Food hygiene, allergen information and labelling rules, which you must follow
• Lease terms, business rates and whether the unit has the right planning use (check with the council and landlord)
• Public liability insurance, plus employer's liability insurance once you hire
• Thin margins and high fixed costs, so test your numbers carefully before signing a lease

Startup costs are typically estimated at around £15,000 to £70,000, depending on the unit, fit-out, equipment and opening stock. Margins can be thin, so test your numbers carefully before signing a lease.

Monthly revenue is typically estimated at around £6,000 to £25,000, depending on location, opening hours, menu prices and footfall. This is revenue before costs, not profit, and fixed costs can be high.

Check registering your food business with your local council, usually at least 28 days before opening, plus food hygiene, allergen and labelling rules. Also check lease terms, business rates, whether the unit has the right planning use, and insurance.