Any other cafe owners struggling right now?

[DevonshireDumpling1]

I currently operate a 45 cover cafe in the Devon area that I have owned since 2016 - so coming up for 10 years.

It’s been hard work building up the business but we had some great success in the first few years until COVID struck - and then we had to adapt our business model and offer.

Seems ever since COVID, we have not really recovered as a business and our turnover is no where near where it used to be. We are on all the food platforms and this generates about 60% of our business (but I’m finding I’m paying a lot more to these operators for using the platforms…. But without them I’d be out of business!!)

When I opened, I had no other cafes in the local area, I now have 3, it’s hard to increase pricing when I’m in competition with others. The cost of stock is increasing as are business and utilities rates. I also own the freehold to the premises which includes the 3 bed flat upstairs that I rent out. At my peak, I employed 6 staff excluding me, I’m now down to 3 including me - and we are trading the same hours - it’s tough but I simply cannot afford.

I don’t really want to sell up as this is my passion and I’ve tried everything to make it work but I’m not sure what else I can do.

Any one been through this?

Do you do any evenings? I've some local cafes near me have started an evening bistro style menu with a bring a booze rule

Are you advertising? What sort of cafe is it? Do you do brunch? Drinks licence?

I live in the Devon area and I know a few local cafes are struggling especially out of season - you are not alone.

As Hayley1256 said, opening up in evenings if you don’t already could be a possibility- but you’d have to re-arrange your staffing to cover the extended trading hours - could you consider trialing this and taking someone on temp to see how it goes? Offer something unique that other cafes don’t….

What is your lunchtime offering? Do you have sandwiches/baps etc ready to go - meal deal with drinks and crisps perhaps? People on lunch breaks have limited time so they want to be in and out. You could perhaps look into supplying workplace lunches (bulk orders)

I’d be taking food off the menu that doesn’t really sell, why waste money in stock when you could have another strong seller?

JustEat and UberEats and Deliveroo are your bread and butter, as you say but could you not drop down to 2 platforms and get rid of the one that produces the less income. Makes sense.

Is it just a case of not getting enough people through the door, or are you full of table hoggers with one drink?

what is your USP?

It's probably not just you, as I have read the whole hospitality sector is struggling with inflation, rates, NI, wages...I do have a few thoughts though, are you consistent with your hours? We have a number of independent cafes on our high street and there is one that is always packed - which is the one that's open 7 days a week, 7-6pm. All the others have strange and idiosyncratic opening times (often 10-3), are closed Sunday and Monday and close unpredictably for weeks on end for holidays. They seem lovely but you can't arrange to meet a friend there and be sure it will be open.

Also the one that's always packed has a very short but consistent menu of food and cakes compared to the others.

Can you open in the evenings and do supper clubs or private hire?

Thank you all for the replies so far.

The cafe currently trades 6.30am to 2pm. In the summer months when tourists are about, we close based on demand.

Customer base is mixed.

Evening trade is something that I would consider but I would have to look at the offer. I wouldn’t be offering what a standard takeaway would offer - I’d be competing against established ‘evening’ businesses - homemade meals - spag Bol, chilli, lasagne etc would be something I would offer… but it’s whether the demand is there.

I wouldn’t be employing anymore staff - until I know it takes off - I would just increase the hours of the existing for now.

My weekly turnover when the cafe was at its peak in 2018-2019 was on average £7,500 per week. We struggle to do £3,000 some weeks.

If I’m averaging on turnover of £12k a month - and a rental income of £1000 - that’s £13k.

After all costs of operating the business are taken out, I’m left with approx £1000-£1500 and that’s for me to partially live on, my partner has a full time job and the salary is averagely ok but we aren’t really rewarded for the work we put in..

If I sold up and got a full time job then we would be in a much better position but I’m finding it hard to comes to terms with letting go of my dream - it would also be surreal seeing someone else run the cafe that I established.

Is there a reason you close at 2pm? Several cafes around me have done that but have extended their hours as there is a demand from people after school and work. At the weekends could you make it a destination of afternoon tea/coffee offering with home made cakes and stay open later?

The tenant in the flat has also indicated that they will be moving out in November which will make our cash flow tighter - they have lived there since 2019 so we plan to fit new carpets and repaint - and rent out at £1300 - which is the going rate in the area - we never increased as much as we should have as the tenant we had/have was respectable.

When we opened, we only planned to cater for breakfast and lunch. I definitely agree we do need to increase it at least till 4pm even if we don’t do evenings.

If you have other, easier work opportunities that could provide similar income I’d sell up and do that. Uphill battle.

If you have schools nearby with parents doing pick up, I’d definitely look at your options for staying open to at least catch that trade.

I’d open until a bit later than that so people can get something after a walk or shopping and the like. It was so annoying to turn up at a cafe to find they were closed on a Sunday afternoon because ‘there was no demand.’ You can definitely create demand if you have a great product. I hope you can find a solution.

Never run a cafe but constantly trying to business plan in case an opportunity comes up (background in restaurants). Live in an area similar to Devon (rural, touristy for some of the year with naice towns).

There are a LOT of cafes in my town. The cafes that do the best here all have a standout singular product. Everyone in town names a particular place if asked where does the best coffee. Another place has a queue out the door on weekends for it’s homemade pastries and cinnamon buns. They are fast, repetitive products that keep footfall and sales high without people sitting in the shop for ages.

Alternatively another place is THE place everyone would name for a cooked breakfast/avo on toast/french toast with a twist. Another has a license and is an “all day” venue, offering pizzas and burgers and alcohol in the evening and sometimes music. Another focuses on elaborate fancy sandwiches on homemade bread- eat in or take away.

They all hype their USP product on social media. Some even offer classes in the evenings to learn how to make the fab cinnamon buns etc. The places that never seem to last are the ones that have okay coffee, offer a bog standard brekkie menu and the same sandwiches/jackets/salads offered by 5 similar places on the same street. They all have the longest menu and the quietest shop.

What do you do better than the other cafes nearby? Why would people choose you? Can you increase the reasons why people come - is your coffee amazing, is your menu fab, do you have a great view or a good position in town for people watching or a lovely deck, do you have great decor or a cool interior or beautiful staff or loads of good books and board games?

If it’s in an average position with average coffee and you serve baked potatoes with beans and Victoria sponges, at least you have lots of ways you can improve!

How about doing offers such as cake and coffee for x amount etc?

What about engaging with local artists?
Offer to showcase their work in a small gallery setting, extend opening hours for afternoon school pick up. A dedicated table with pots of colouring pens/colouring books 'an After School Snacks' promotion maybe? traybakes/granola bars etc
A tea dance once a month from 5-7pm? Proper old school finger sandwiches/cakes, might appeal to the older generation and something for them to look forward to

Do you have parking? Can you market what you offer into other marketplaces eg post-Parkrun cafe stop, special toddler meal deals to visit after toddler group/nursery (eg order by 12.30 obv depends when they finish and how far to come). Likewise try and find some dishes to offer tea for parents with school pupils on way home from school. Can you offer eg craft parties 'after hours' on certain days of the week - if you cannot organise the craft is there someone offering craft could run the session itself, with you providing the venue and food? Or how about bike cafe (offer events or special deals for cycles, or even motorcycles if you have the parking - they're good in summer, being Devon you could market for motorbikes as far away as 2-3 hours if the food an coffee is good). Can you tie in with other cafes in a broader Devon area and offer a passport so you get cards printed up and they visit each cafe and buy something to get a stamp and there's a reward on completion eg free cup of coffee - could you tie in with others to develop a circular walking route or circular ride for cycles or motorbikes. Or just a loyalty card for your cafe?

When are your quietest times/days? Can you invite eg crocheters/knitters to a session? Start a book group?
Can you throw a special bookable open evening with evening menu once a month to test the waters of opening later, say Fri and St nights perhaps?

I sometimes work from cafes and this is quite popular amongst friends who house share I like somewhere I can get a nice cake or fresh baked bread

One of the cafes near us has done really well adding what is l essentially a ready meal, but cafe standard. They do a big lasagne and garlic bread offer and a chicken curry offer. I love it as it feels ‘homemade’, is cheaper and healthier than a takeaway and minimal effort for me after a day at work. That wouldn’t require you to extend your opening hours, but might bring some extra cash

You need to open later..

We have a village cafe that also closes at 2pm and I have always wondered why? It seems daft as there are tonnes of people about in the afternoon especially on weekends and it’s right near our village school.

They’re missing out on providing afternoon teas for people, and then all the after school trade of milkshakes, toasted sandwiches, cakes, nuggets and chips types of teas, and they’ve really missed a trick and now one of the village pubs does an after school deal with kids activities and nice food for parents too and themes it around Easter/ Halloween and all sorts of other things and the cafe could easily have had that trade!!
Appa the owner is annoyed and I’ve heard that they are really struggling but I really don’t understand why they didn’t think of this??

They could also rent out the village cafe for private hire or as people have said do an evening event like a jazz cafe or something??

I think it’s just a case of “thinking outside the box” or biting the bullet and converting the cafe area into another flat and making a definate £1300 a month x 2 AND getting another job then you’d be much better off minus all the stress.

What about offering board games, a toddler play area colouring with a competition eg design cake or biscuit winner gets one free and you bake it.

is your vibe premade or people choose
sandwich of the day
take home meals,

what would it cost you to make kids school lunches say cheese ham egg or tuna sandewiches, piece of fruit cucumba or carrats and flap jack or fruit biscuit or cheese and vegg muffin?

maybe something to get people coming back each month have a dish a desert and snack from a particular country.

target any local markets eg low calery food pre run carb load.

Can you do catering for kids birthday party’s, contact kids party venues and hand out flyers, have flyers and posters in the cafe, hand out flyers at the school gates

Also catering for office lunches, sandwich trays etc

Closing at 2pm means you’re missing all the afternoon tea/coffee crowd, plus anybody needing a late lunch.

Closing at 2pm is early. Some people only start thing about lunch at 1pm. So by the time they get to your cafe it will be closing shortly after.

Lots of great advice up thread too.

Good luck