If your dream is to open your own café, then you need to conduct a SWOT analysis of coffee shop. The truth is that this is a very competitive industry and you will need careful strategic planning to attract customers and gain a competitive advantage. The SWOT analysis of coffee shop is a framework that will help you analyze everything about your shop, thus allowing you to see the big picture.
In this article, we are going to show you how to conduct a SWOT analysis of coffee shop with specific examples for a coffeehouse and a grab-and-go coffee shop. Keep reading.
What Is the SWOT Analysis of Coffee Shop
The SWOT analysis of coffee shop is just like a regular SWOT analysis but in the context of your café. This means that the SWOT analysis of coffee shop focuses on the internal and external factors of your coffeehouse. To better illustrate this point, let’s see a general example in each section of the SWOT analysis of coffee shop:
- Strengths – unique coffee blend, high-quality coffee brewing, highly skilled baristas, great customer service, food menu items, part of the local community.
- Weaknesses – inconvenient location, really small space, limited menu items, no delivery option available, not many online reviews.
- Opportunities – broaden your menu, introduce food items, create a mobile app, partner with Uber Eats, run a local promotion to raise awareness.
- Threats – numerous coffee shops in the area, increase in supplier costs, competitors offering cheaper options, customers shifting to other beverages.
[Detailed] SWOT Analysis of Coffee Shop
To better explain how to conduct a SWOT analysis of coffee shop, we are going to see a detailed example. This particular case is a SWOT analysis of coffee shop conducted for a café that invites customers to take a table and enjoy their coffee at their own pace. So, the example will look like this:
- Quality Products: we are offering high-quality, premium coffee sources from ethical suppliers.
- Strategic Location: our café is located in a high-traffic area that many people pass by.
- Skilled Baristas: we employ well-trained baristas that always prepare consistent and excellent cups of coffee.
- Innovative Menu: we are offering unique and seasonal coffee blends that have attracted the attention of coffee lovers in the area.
- Limited Seating: our seating space is rather small, which creates customer congestion during peak hours.
- High Prices: to maintain our quality, we need to price our products higher compared to our competitors.
- Limited Marketing: we rely primarily on word-of-mouth advertising, and have neglected our online presence.
- Lack of Menu Diversification: we have only focused on coffee beverages, potentially alienating customers looking for other options.
- Expansion: it might benefit the café to open a new branch at key locations in the city.
- Online Presence: it is the time to start leveraging the power of social media to raise awareness about the coffeehouse.
- Diversification of Menu: introduce more beverage options, like tea, hot chocolate, and smoothies.
- Collaborations and Partnerships: partner with other local businesses. For example, collaborate with a local bakery to add food options to the coffeehouse.
- Intense Competition: many new coffee shops have recently opened in the area.
- Rising Costs of Resources: the fluctuations in the prices of coffee beans affect the shop’s income.
- Economic Crisis: people are trying to spend less on premium coffee when they can find cheaper options.
Grab-and-go Coffee Shop
The following example of a SWOT analysis of coffee shop is about a grab-and-go coffee shop. In this case, the café wants to sell coffee to people that are on their way. Therefore, this example will be as follows:
- Convenience: we are providing quick and efficient service for customers that are on the move.
- Product Variety: our menu includes not just coffee options, but also pastries, snacks, and other non-coffee beverages.
- Strategic Locations: we are located next to the courthouse, which receives a great number of visitors daily.
- Cost Efficiency: we have applied competitive pricing to attract many customers.
- Strong Online Presence: our social media profiles have gathered many followers that engage with our posts and stories.
- Limited Seating: we don’t offer seating options because it doesn’t fit with our philosophy, even though turn off some customers.
- Dependency on Foot Traffic: we aim to have customers that are on the move, so we notice inconsistent sales throughout the day.
- Limited Menu Customization: we don’t offer many options to people with specific dietary preferences.
- Online Ordering and Delivery: we can partner with Uber Eats to include online ordering and delivery options.
- Establish a Loyalty Program: we can attract more customers with a loyalty program, where customers enjoy discounts upon signing up.
- Expand our Menu: we can introduce some healthier food and beverage options, as well as vegan alternatives.
- Invest in Local Marketing: apart from our social media, we can invest in local marketing. For example, we can get involved in the events hosted by the municipality to enhance brand visibility and attract new customers.
- Competition: there are many grab-and-go coffee shops on the same street.
- Coffee Lovers Culture: many customers are interested in having premium coffee and unique coffee blends.
- Regulatory Changes: a new law has changed the health and safety regulations, which will increase our operational costs.
How to Conduct a SWOT Analysis for Coffee Shop Business
These two examples have shown you how to conduct a SWOT analysis of coffee shop on different types of cafés. The process for creating one for your case is very simple, especially if you are using a SWOT analysis template. In more detail, you can create your own example by following these steps:
- Find the strengths of your coffee shop – the first step to conducting a SWOT analysis for your coffee shop is to find all of your strengths. These are all the factors that give your shop a competitive advantage and have won over your customers. For instance, this can include your philosophy, products, and customer service.
- Recognize the weaknesses of your shop – then, a crucial part of a SWOT analysis is to find all of your weaknesses. It is certain that there are some areas where your shop is somewhat lacking. Find these factors and write them down. All of these are the things to consider changing to improve your services.
- Find the available opportunities – this section of the SWOT analysis for a café includes all the external factors that can raise awareness in the general public. For instance, you could use new technologies or expand your menu to cater to a different customer segment.
- Notice the threats – the final thing you should note on your SWOT analysis are the threats in your environment. Of course, the most obvious one is the competition in the industry. In addition to this though, you can also find some new regulations and changes in the whole community.
SWOT Analysis Template & Tool
Now you know everything you need to create a SWOT analysis of coffee shop. In Boardmix, you can find a SWOT analysis template that you can utilize to make the process faster and easier as you won’t need to start from scratch. The template is available for free and you can customize it any way you want. Create your free Boardmix account today to evaluate your coffee shop and start planning a successful future.