Skip to content
English - Australia
Contact us
  • There are no suggestions because the search field is empty.

HOW TO ARRIVE AT A REALISTIC BUDGET FOR CAFE START-UP EXPENSES

Opening a café is exciting—but it comes with serious financial commitments. One of the most common reasons new cafés fail is because owners underestimate their start-up costs. Whether you’re self-funding or seeking finance, a clear, detailed budget is your foundation for launching with confidence.

20250528_131846A STEP-BY-STEP GUIDE FOR FUTURE CAFE OWNERS

This guide gives you a practical, research-backed method to budget your café start-up costs—no guesswork, just clarity.

🧾 WHAT ARE START-UP EXPENSES?

Start-up expenses are all the once-off and upfront costs required to get your café open, legal, equipped, and ready to trade. These include rent, fit-out, staff training, initial stock, marketing, and compliance.

A well-researched budget gives you:

  • A funding target to aim for
  • A reality check before signing a lease
  • Confidence that you’re ready for what lies ahead

🧱 10 KEY CATEGORIES OF START-UP EXPENSES

Group your budget using these ten categories. For each one, list individual items, gather real quotes, and tally your costs.

1. LEASE & BONDS

  • Lease setup (advance rent, legal fees, security bond)
  • Lease registration or stamp duty (if required)

💡 Tip: Negotiate rent-free periods for fit-out.

2. FIT-OUT / RENOVATIONS

  • Plumbing, electrical, joinery
  • Tiling, painting, lighting
  • Builders and trades

💡 Tip: Get at least 2–3 quotes. Add a buffer for surprises.

3. FURNITURE & FIXINGS

  • Tables, stools, seating
  • Front counter, display shelving
  • Décor, mirrors, plants, internal signage

💡 Tip: Commercial-grade furniture lasts longer. Check second-hand options.

4. EQUIPMENT – PURCHASE OR LEASE

  • Espresso machine and grinders
  • Fridges, freezers, ovens
  • Dishwasher, blenders, kitchen gear

💡 Tip: Leasing can ease your cash flow. Some coffee suppliers offer equipment packages.

5. DIGITAL & TECH SETUP

  • POS system and software
  • Wi-Fi router, tablet, printers
  • Music system and speakers
  • Security cameras

💡 Tip: Choose systems that scale with your growth.

6. LICENSING, LEGAL & INSURANCE

  • Business registration
  • Council and food safety permits
  • Public liability, workers comp, equipment cover

💡 Tip: Call your local council early—approvals take time.

7. MARKETING & BRANDING

  • Logo, brand identity, signage
  • Website and social profiles
  • Photography, launch promotions

💡 Tip: Start building awareness and hype before you open.

8. INITIAL STOCK

  • Coffee beans, food ingredients
  • Takeaway cups, napkins, packaging
  • Cleaning chemicals, paper towels, bin liners

💡 Tip: Start with minimum stock and reorder based on demand.

9. STAFF RECRUITMENT & TRAINING

  • Recruitment ads or agency fees
  • Uniforms and onboarding packs
  • Pre-opening wages and training time

💡 Tip: Budget for at least 1–2 weeks of staff pay before trade begins.

10. CONTINGENCY & BUFFER

  • Extra funds for overruns and unexpected issues

💡 Tip: Set aside 10–20% of your total budget as a contingency line.

 

🧠 DO YOUR RESEARCH (DON’T GUESS!)

 The most accurate budgets are built on real data. Use a mix of the following:

  • Supplier Quotes – Reach out for actual pricing (espresso machines, POS, signage, uniforms, etc.)
  • Online Research – Check websites like Hospitality Hub, eBay Business, or local fit-out contractors
  • Industry Benchmarks – Refer to expert guides like PRIMECAFE or the Zest Help Hub
  • Peer Insights – Ask other café owners what they spent (and what they wish they knew earlier)
  • Zest Advisors – Tap into our network for realistic expectations in your area

 

💡 TIPS FROM THE FIELD

  • Always budget for delays – Council approvals and trades often take longer than expected

  • Get multiple quotes – Prices vary wildly between suppliers

  • Buy second-hand where smart – Great for furniture, but don’t skimp on core equipment

  • Don’t forget pre-opening wages – Training and soft opening days still cost money

 

🧮 HOW TO BUILD YOUR BUDGET

  1. List every item under the ten categories

  2. Research and record real costs

  3. Add supplier notes and installation timelines

  4. Tally each category total

  5. Add your contingency buffer

  6. Review your total required capital against savings or funding plans

 

✅ FINAL CHECKLIST

  • Every category is covered and itemised

  • Costs are based on research, not guesses

  • Contingency buffer is included (10–20%)

  • You’ve considered pre-opening staff costs

  • You’ve shared it with an advisor or accountant

 

🔧 BONUS TOOL: DOWNLOAD THE CAFÉ BUSINESS PLAN WORKBOOK

To make life easier, download our free Café Business Plan Workbook, which includes a fully structured Start-Up Costs Template. Simply plug in your figures and let it calculate totals and shortfalls for you.

👉 [Download the Café Business Plan Workbook]