Challenges of Starting and Running a Café Business

The saturation of cafes in the market demands caution before starting a new venture. Success hinges on attracting weekday customers and careful market analysis.

### Challenges and Considerations for Starting a Café Business in South Korea
* ☕️  The café industry in South Korea is booming, with approximately **110,000 cafés in the country**, surpassing even chicken shops in terms of **franchise startups and individual cafés**.
* 💼  Many new café owners are facing challenges, with **more than half of small businesses like cafés or restaurants closing within a year**.
* 📊  The success or failure of a café often depends on its weekday sales, as **weekday foot traffic can be significantly lower** compared to weekends.
* 🏙️  Location is crucial, with the **population distribution nearby** and the **surrounding environment** being more important than the quality of coffee or concept.
* 🏗️  The rent for a café typically ranges from **3 to 5 million won per month**, making it necessary to maintain a certain level of **monthly sales to cover costs**.
* 📈  Despite the saturation of the café market, the number of café locations is expected to **increase significantly**, leading to concerns about **oversaturation**.
* 📱  Social media plays a significant role in promoting cafés, with many people visiting to take photos, but this often doesn't lead to **repeat visits**.
* 👨‍👩‍👧‍👦  The café business is considered a **stepping stone** for many, with some owners eventually moving on to **other ventures**.

A lot of large cafes were emerging, and the word hap hap was trending a lot. However, last year, I noticed that many of those cafes were disappearing. It made me realize that starting a cafe has become a common entrepreneurial venture. So, are there any points to be cautious about? The weekdays are important. The question is how many customers you can attract when there aren't many people around during the week, as that could determine success or failure. I think if I have a good concept, delicious coffee, and tasty pastries, customers will come. However, I believe it will be difficult to recover the investment costs. It's nice to see you on this business trip. So, what should we start with today? Oh, today, our expert, Kkang, is here, right? Yes, that's right. So, if I want to travel somewhere, for example, if someone is going to Pohang, they would search for Pohang and look for famous tourist attractions.

When planning a route to a destination, I usually pick the most famous and trendy café as my main stop. Then I think, Shall I check out some tourist spots while I'm at it? It's a style where I explore those additional places as well. Let's check in for a café tour. It turns out there are about 110,000 cafés in our country. Wow, really? In fact, I've heard that in terms of franchise startups and individual cafés, the café business is now surpassing even chicken shops. Recently, I've been going out to cafés a lot on my own, so I feel like they hold a significant spatial meaning for me. For instance, when I'm at home, I tend to just lie around and nap. So, in the afternoons, I always make it a point to go out. When afternoon comes, I head to a café, and I often go there to work.

I often go to book cafes these days. When I go there, I find not only the books we usually see in bookstores but also many curated books that give off an independent bookstore vibe. While browsing, if I come across a book that catches my interest, I sit down in the café. Nowadays, there are so many different types of cafés. When you go to a café, you can choose coffee or tea and sit down to read your book. There are various types of cafés; some charge a space rental fee based on time. In some places, the books in the book café are not free, and in those cases, you have to purchase them to read. What are some famous book cafés? Well, to be honest, the concept of famous has lost its meaning these days, and instead, smaller local cafés are gaining more attention.

북카페가 많이 생겨나고 있어요. 그래서 최근에는 어린이 대공원 쪽에 있는 북카페를 다녀왔는데, 거기는 3층 건물을 사용하고 있더라고요. 2층은 카페이고, 3층도 카페인데 반은 출판사 공간이었어요. 그래서 그 입구에 어디 어디 출판사 입구라고 적혀 있었고, 딱 보니 미팅 룸처럼 책상 두 개 정도가 있더라고요. 그곳이 너무 의미 있었어요. 출판사의 직원 입장에서는 고객과의 접점이 바로 그곳에 있는 거죠. 그렇죠? 그런데 특징은 사실 대형 출판사가 아닌 이상 그렇게 많은 책을 발행하지 않잖아요. 그렇기 때문에 여러 개의 출판사에서 만든 책을 모두 큐레이션해 놓고, 그곳에서 출판사가 지향하는 점이나 대표님의 관점을 서로 공유하는 자리인 것 같아요. 그런 큐레이션 감성을 좋아하는 소비자들이 많더라고요.

There are many, and in the case of large franchises, they tend to have locations in places like university streets or Samcheong-dong. It seems that in the past, large franchises led the way, but now the trend is shifting towards smaller establishments. There are brands that operate like franchises. However, on weekends, the characteristics of cafes these days—this isn't something that has emerged recently—are that they have unique concepts and interior designs that stand out. They are also great for taking photos, especially when young people or families come in. Each place has its own unique features, and they are very capital-intensive. It seems that polarization is becoming increasingly severe. Some places invest over 10 billion won to create large establishments.

Do you like places that have elevators almost like a department store? At first, when I couldn't see such things, I found them really fascinating. I think of them as tourist attractions, similar to going to Everland. So, when I go there, I look around at this and that. I also notice trends in interior design and popular colors because those places are often led by hot trends. When you visit a trendy spot, you can see similar styles. For example, there might be a plant concept, a palace concept, or a Saipan concept, and it usually falls into one of those categories. The plant concept is nice, but that trend has actually been around for about three to four years. Adults really like it even now, and I also appreciate nature.

I really like plants, so I generally go to places that have them, but I feel a bit tired of the same old spots. However, it's interesting that, for example, there are large cafes popping up in rural areas. I sometimes take my mom there when I have time on weekdays, and it's fascinating to see that a cafe that just opened a month ago is already filled with local elders gathering to drink coffee. It's not just a casual neighborhood cafe; it feels almost like a department store. I was quite surprised to learn that they were the first to know about it. It made me realize that coffee culture is really changing. Nowadays, large cafes are becoming a trend, and their openings are even reported in the newspapers. The local transportation around these places is also quite significant.

Ah, but there was this thing where they remodeled churches and cathedrals, and they tried an open run. It's really interesting because those places have a kind of trend. Marketing agencies get involved and help promote them. They use social media, press releases, and influencers to spend on advertising, and they even choose from among the influencers who will promote it. Since there’s a basic level of capital involved, they can at least ensure a certain quality. After all, spending money on coffee isn’t that much, so there are consumers who go just to experience it. So, let’s do this: What are your top three memorable cafes? First, there’s a cafe in Hwaseong, which is about a 40-minute drive away, or you can take the SRT. What are the characteristics of that cafe? The guide map is laid out perfectly.

I think I went there during Halloween because there were so many things to see. They had decorated the outside with props and interior designs related to that theme. The moment you step in, it's a space where everyone, from children to grandparents, can enjoy together. The person behind it has incredible planning skills, and they do this for each season. I realized that, compared to amusement parks or tourist spots, cafes like this have become places where families can gather. It was the first time I felt that a cafe is not just a place to drink coffee, but a cultural experience. There are a lot of trees, and over here, there are little hut-like areas where two or three people can sit. It feels like you could camp there in the winter, and they usually have activities scheduled by time.

You can rent it out, so only family members can chat and eat there. It's a space where you can have a great time, and the kids really enjoy it. On this side, there are areas where everyone can lie down, so no matter where you look, you want to sit here or there. It's an incredible design for a space that people can share for relaxation, right? Yes, yes. If you walk through this spacious area, you reach the main space where orders are taken, and there are pastries and a small eating area arranged in a tiered manner. This side has been designed with a botanical garden concept, and the garden is really enormous. But what I'm curious about is that despite all the planning and investment that goes into making it so large...

Is that level of profit possible? I think that's a bit of a problem. To be realistic, on weekends, there is really no space to step. Even parking is an issue. But if you go there on a weekday... I'm not talking about the café, but there are places that don't even run the air conditioning. This is because it doesn't provide good value for money. Most businesses don't have a problem during peak seasons, but the real challenge is how much you can invest in attracting customers during the off-season. It can be really empty, right? Yes, that's right. But then, after a year, you go to that spot and think, Oh, here it is, but there’s no location available. There were quite a few situations like that last year. The economy was not good, and the self-employment rate was rising. The year before that, it felt like cafés were really booming, and I visited a lot of them. The year before, many large cafés were opening, and the word huffle was trending a lot.

It was a time when I wondered if there were so many places with so much money. Last year, I saw many cafes disappearing, and I thought, Wow, I invested heavily, but it seems many actually went bankrupt. That's right; if they really went bankrupt, the losses must be enormous. I think you would need to invest at least 10 billion won for something like that. So, shall we go to Namhae? I went there with my mom back then. Usually, I go with my mother. I have a bit of a thing for cafe tours, and my mom really enjoys them. For those of you watching, if you don't have anyone to go with, I recommend searching for pretty cafes to visit, especially since mothers really love them. At that time, we were on a tour of Namhae, and we went to one of the famous places there. The view from the cafe was truly stunning.

As soon as I arrived, I saw some stairs, and there was a huge crowd of people lined up. I wondered what was going on. It turned out to be a photo zone. If you take a picture on those stairs, you can see the beautiful ocean in the background, and anyone can be a model there. It doesn't matter how you look or whether you have makeup on; the background is really important. 

When you go into the shops, the unique feature of the view is the large windows. You get a panoramic view of the ocean right in front of you. It's like you're on the water. There are many cafes like that, but you shouldn't just rush to go there because of the promotions. Always check the reviews to see if it's real or not. The photos are indeed real, but if they only show the pretty spots, what about the places that aren't as nice?

There are photos that show the overall view. There are large spaces that are very spacious and pleasant, and there are also many quiet, small, and cozy cafes like the one I visited recently. I went to a place in Hongcheon, or somewhere in Gangwon-do. Since you love driving across the country, it was a great trip. This was a book cafe, and I went there alone on a weekend. Oh, it’s a quick drive, and on Sundays, there’s no traffic. You know, traffic is bad on Saturdays. Although Wonju in Gangwon-do isn’t far, the name Gangwon-do gives a strong sense of travel. So, I went there, and it was a book cafe with about ten pyeong (approximately 33 square meters). As I mentioned earlier, there were books on display for reading, and afterward, there were curated books from the bookstore along with notes.

Instead of being an editor, the owner writes notes saying, I recommend this book for this reason, and I recommend that book for that reason. I look at those notes, and when I go to a bookstore, I see that the bestsellers or the heavily marketed books are all lined up. I think those are great for reading trends. However, when I go to independent bookstores or book cafes, I often find myself thinking, Oh, there's this book! In that moment, I realize I was interested in this kind of thing, and it helps me discover aspects of myself that I didn't even know about. On that day, I read a book by Hisai, and I was really captivated by it. So, I bought it and listened to Hisai's music on YouTube, trying to understand how the music was made. As I watched the explanation of how the music was created, I thought, Oh, so this is how this person makes music!

I had a conversation about the time I spent there. The interesting thing is that the owner was there, and he referred to the customers as teacher. This person has a lot of content to offer, so I thought I should come back again. This place is one I visited recently, about a month ago. I occasionally go to Jeju Island, and there’s a café I used to like that was transformed from an old fishing village warehouse right by the beach. Initially, it was just a shabby warehouse that had been remodeled with minimal interior design, and since it was right in front of the sea, it had a certain charm. I really enjoyed it and visited every time I went there. However, at some point, I noticed they were renovating the interior. They were making it very neat and using more modern materials, investing more into the place.

I did it, but after that, it failed. It was really unfortunate. In my opinion, even before that, there was no need to invest more there; the power of the sea itself was enough because the sea is right in front. You can see the waves crashing just by going down the stairs. It's a sea like that, yet they invested a lot, and it seems like the cost-benefit ratio didn't work out. So it ended up failing. I think it would have been better if they had just kept it simple. With minimal investment, customers would have continued to come, and that was really unfortunate. Near our neighborhood, there is a big mill in Aewol. It's right by the sea, and I go to Jeju Island occasionally. Sometimes I visit that café because the mill is there. The parking lot is huge, and there’s a lawn in front that’s about the size of a school playground, where kids can run around, and there’s a café too.

Since it was converted from a factory, it's really huge. There's one spot that has become a landmark, and it looks beautiful in photos. I heard it closed down recently. Oh, it seems that when you invest a lot, you encounter these kinds of problems. Even with minimal investment, I feel like the space has enough potential to do well. It's a bit sad to see landmarks disappearing one by one. Recently, I noticed that many people who had moved to Jeju Island to open cafes are returning. It seems that running a cafe is quite easy. Since you, Mr. Kang, have seen so many cafes, don't you ever think, Oh, this cafe seems like it would do well? No, because what I'm usually interested in is quite different from business. However, I do think that content is really important for cafes these days. Because inside...

People come here to gain experiences and, for example, there could be study cafes since they have cafe in their name. Nowadays, there are many pet cafes as well. In the past, there were only a few, but now in each area, there are about two or three pet cafes out of ten. This culture is being reflected significantly. Recently, I noticed that a large cafe has opened, and when I went there to have coffee, I was amazed at how systematically everything was organized. The design and layout didn't feel like a typical personal interior; everything about the service was different. Even the bakery items were made with a certain professionalism. When I searched for it, I found out that it was a brand launched by a company that specializes in creating cafes. The brand has a name, but...

It's not just about having a brand; it involves everything from marketing to manufacturing, and you could say that it's like a factory in a negative sense, but positively, it can be seen as being systematically managed. However, the moment I saw that, I felt a bit reluctant to go there. It seems to lack a bit of individuality. So, we should talk about franchise coffee shops, right? Yes, that's right. There have been discussions about Starbucks lately. These days, many cafes are releasing merchandise, and there is quite a lot of it. They sell it, but there's also the point system where you get stamps, right? That has become overwhelming. In the past, people would order hundreds of cups just to get those stamps, and there were even news reports about it. But now, the value of that has somewhat diminished. Why is that?

I don't know if they are implementing policies, but I hear these kinds of discussions. According to the statistics, the usage rate of Starbucks is about 65%, while Mega Coffee is at 35.5% and Paul Bass is at 30.2%. That's surprisingly high. Then, there's Foz at 21.3%, IAA at 18.7%, and Baekdabang at 16.5%. They are quite similar. The franchise landscape has really changed a lot, right? Mega Coffee is in second place, correct? So, in fact, just like with chicken franchises and convenience store startups, café startups have become a very common type of business now. Are there any points to be cautious about? One thing that really struck me from what Kanguro pointed out earlier is that weekdays are important. The thing is, on Saturdays and Sundays, especially during busy times on Saturdays, there isn't much difference because everyone...

Because of the location, I think the success or failure will depend on how many customers can be attracted during the weekdays when there are actually not many people around. When thinking about starting a business, one might believe that having a great concept, delicious coffee, and tasty pastries will bring in customers. However, if we look at the bigger picture, factors like foot traffic in the area and the population distribution nearby seem to be much more important. No matter how well I create a café in Seoraksan, it will only be viable for a season. There are even people who only open their shops on Saturdays. If you go to the outskirts, it’s really hard to make money just by doing that. I think it would be difficult to even recover the initial investment. Most small businesses, like cafés or restaurants, end up closing within a year, with more than half of them shutting down.

Cafés are very accessible, right? After drinking a lot of coffee myself, I think I could do it much better. But it seems that most of these seemingly easy startups end up failing. I have a friend who is a coffee enthusiast, and after leaving his job, he started a café. It's not a franchise; it's a personal venture in a neighborhood in Gyeonggi-do, and it seems to be doing really well. This friend used to work as a key member in one of the country's top conglomerates, and now he is deeply involved in this business. However, sometimes when I hear updates from him, his biggest concerns are about difficult customers. For example, there are people who come just to use the restroom, and then there are those who sit down and only order a single cup of coffee.

It seems that even small things, starting from the people who are there for hours, can cause tremendous stress. Customers are in line, and because of such issues, we couldn't attend to them. There are excessive complaints, starting with Why is this like this? and Why does the cake look like this? This café is known for its very distinctive cakes and is doing well, but there are people who don't appreciate the effort that went into making them. The biggest concern is the weekday sales. Many people start businesses, but it seems that those who are truly immersed in their work are the ones who survive. Those who start with shallow knowledge or just one or two ideas don't seem to last long. The biggest challenge when running a café is the rent, which is usually around 3 million to 5 million won a month. To manage that, the monthly sales need to be at least at a certain level.

If you want to run a café or restaurant for breakfast, lunch, and dinner, no matter how hard the owner works, it’s tough. So, the whole family gets involved, but even just that is often not manageable. Outside of weekends, weekday sales are only about 20-30% compared to weekends, which means it’s almost at a loss. When starting a café or restaurant, the biggest issue is that initially, the rent is low, but if the business does well, the rent keeps increasing. This is a typical gentrification problem. It would be good to be more thorough when signing contracts. Essentially, it seems there’s no way to prevent this. Ideally, a business should last 5 to 10 years, but if it does well and regular customers start coming in, moving to a new location means losing most of those regulars. If you have good capital and a solid concept, it might be better to invest in real estate.

It's unfortunate that capital is so concentrated. When we hear about large cafes in the provinces, it seems that many of the owners are operating them. This is actually a typical case of exploitation. If you look at successful businesses, they tend to take over. The cultures of Japan and Korea are very different. Japan has many long-established restaurants. It seems that tenant rights are very well protected there. There are many long-standing popular eateries that have been around for 20 or 30 years, and it's common for the owners to be replaced by someone with a similar name or even the same type of cuisine. In contrast, famous areas like Garosu-gil often see businesses pop up and then fail quickly, leading to a decline in the area. It feels like there’s a pattern of public auctions happening. In this regard, it would be nice to have some social consensus, at least to recognize the value of successful businesses and not overlook the obvious exploitation.

Watching how people take things away playfully, I think it would be good to find ways to win together. Recently, one downside of cafes is that young people often go there to take photos. However, they visit these spaces to experience the unique benefits they offer, which means they usually don't go back a second time. There are differences between weekdays and weekends, but I feel there are not many elements that encourage repeat visits to these spaces. So, no matter how much I might say I love a famous cafe and call it my favorite, I wouldn't necessarily want to visit that cafe again. I think it's because the same experience can only be enjoyed once. There are so many new cafes opening up that can provide more diverse experiences and satisfaction, so there's no need to seek out the same experience again.

Is it really necessary? I think that if I feel this way, regular consumers would feel similarly. So, that consumer group might start with one or two people and eventually grow to 100 or 1,000. However, the customers from the initial group have already moved on to other places. In that sense, I wonder if cafes can sustain themselves. On the other hand, low-cost coffee brands are doing well for one simple reason: people just want a quick drink after lunch. Honestly, it doesn't matter what the brand is. When you go to places like Starbucks, the waiting lines are too long. But with these low-cost coffee shops, you can get your drink quickly, usually within 5 to 10 minutes, and the prices are affordable. This creates conditions for continuous consumption. While concept cafes and those with unique content have their significance,

In the long term, it seems difficult unless we continue to change and create something to express. Recently, when I went to take the KTX, I wanted to have a light sandwich and coffee. However, the coffee was really expensive. It was a regular store, and the coffee wasn't from a particularly good café. Then, I noticed a vending machine with an espresso machine right in front of me. It was 1,300 won, and surprisingly, it tasted better than the café's coffee. So, when I can't think of a decent café, I just go for the convenience store machine, which costs about 1,500 won. I usually buy that unless the beans are particularly good or something. I don't think the coffee is bad just because it's cheaper.

When you look at cafes in our country, it really seems like they are already saturated. First of all, if I were to consider starting a cafe, I would really think about whether to do it or not, and I don't think I would start one. It's a complete red ocean; there are just too many. I think it would be good to have this kind of thought when starting a business. In our country, there are too many convenience stores and restaurants. The current number of restaurants needs to be halved to create a structure where they can all survive. If there are about 800,000 restaurants, that's too high a ratio for the population. It should be around 300,000 to 400,000 for those restaurants to be able to survive. Right now, there are too many suppliers, which makes it fundamentally hard to make money. While there are some successful businesses, those are truly exceptional cases. If possible, I should consider whether I really need to open a restaurant or...

When considering starting a café, it would be good to look at the density of cafés in the area. There are many cafés around, but I have a special idea. I really like the taste of coffee, which is just one of many factors and only has about a one-minute impact. The other aspects, like being able to operate on weekdays and managing costs, are crucial. Typically, when it comes to starting a café, I believe that after about three years, around 90% of them will fail. Even those few cafés that don't fail often operate in a structure that makes it hard to make money. It's rare to find cafés that are truly profitable. The owners might just cover their labor costs and make a little extra, but if they do well, they often have to move to a better location or face rising rent, which can lead to losses again. Moreover, even cafés that are established with large capital investments can struggle to succeed.

I don't think the probability is very high when it comes to starting a café. Typically, it is said that there are about 110,000 cafés in the country, but I believe there are many that are not accounted for in the statistics. It seems to be in a state of oversaturation. Therefore, I think it should naturally decrease so that everyone can make a living. I believe there should be about half as many cafés as there are now. There are just too many in my neighborhood as well. I think the coffee-centric café business has a bleak outlook. So, if someone is going to start a café, they need to be very cautious. I have a slightly different perspective on this. One of the reasons many people start cafés is that it is an easily accessible item. So, if ordinary people have a bit of capital and want to start a business, we...

Is there any item you can recommend? If those individuals don't have any special skills or experiences, then I don't think there's much I can specifically advise. So, whether it's a café, chicken shop, or convenience store, the type of business doesn't seem to matter much. The coffee market is continuously growing, and it's a fact that the number of café locations is expected to increase significantly. While it's easy to focus on the positives and think that success is guaranteed, there were definitely various factors mentioned today that could lead to failure. If you look a little closer at the surrounding circumstances, you'll find many practical examples of failure. So, as you learn about these, consider how you can overcome them.

I think you should first draft a scenario for that. And honestly, even if you start a café, I don't see it as the final destination. This person could open a café and then move on to other ventures, so I think of it as a stepping stone that might lead to other opportunities. A friend of mine absolutely advised against starting a café, but if you do decide to go ahead, the first thing I recommend is to conduct a market analysis. It would be good to analyze the market, look at the foot traffic in the area, and see how many similar businesses are around. Understanding the population distribution and the surrounding environment is much more important than just how well you can run the café. However, if you ignore all that and just think, It's delicious, and I’ll open a small café by the beautiful Jeju sea, people will come just because they saw it on Instagram.

They say they won't come, but if the tourist population in the capital decreases, everything will fall apart. No matter how delicious the coffee I make or how beautiful the space is for Instagram photos, it won't work if it doesn't work. Ignoring that and thinking, I'll be fine, means you won't achieve good results. I hope you consider this deeply. Anyway, we've talked a lot about cafes today, and our dear Kkanggu, we need to check out now. I don't know what cafes mean to you, but for me, I use cafes as a time to have conversations with myself. They are great spaces, so I hope you all create good experiences as well. Now, today's secret to success.

하루 30개씩 폐업! 커피맛, 인테리어보다 중요한 게 있다

Technology(기술), Trend(트렌드), Transformation(혁신)에 관해 
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티타임즈TV

The café business is booming in South Korea, surpassing even the popularity of chicken shops.

There is a growing trend towards smaller, unique café establishments rather than large franchises.

Cafés are now known for their unique concepts, interior designs, and photo-worthy spaces, attracting young people and families.

The Evolution of Trendy Cafes and Their Impact on Culture

Trendy cafes are now becoming cultural experiences for families, offering seasonal decorations and various activities for both kids and adults.

These cafes are not just for drinking coffee, but for providing a space for relaxation and gathering.

The design and concept of these cafes, such as botanical gardens and unique seating areas, make them stand out as cultural attractions.

The Impact of Café Tourism on Local Businesses

Café tourism has fluctuated over the years, with many businesses facing challenges and some even going bankrupt.

The trend of visiting aesthetically pleasing cafes, especially with mothers, has contributed to the popularity of unique and scenic locations.

Café tourism not only impacts the café industry but also influences bookstores and independent music artists, shaping consumer preferences and trends.

The Transformation of a Cafe in a Fishing Village

A cafe in a transformed fishing warehouse by the beach underwent extensive interior renovations, ultimately leading to its failure.

The narrator believes that minimal investment and maintaining the charm of the seafront location would have been more successful.

The conversation also touches on the growing trend of themed cafes, the increasing number of pet cafes, and the rise of professionally designed and organized coffee shops.

The Changing Landscape of Café Franchises

Starbucks and other café chains are facing a decline in the value of their merchandise and loyalty stamp system.

The success of a café business is now heavily dependent on attracting customers during weekdays, rather than just focusing on weekends.

Despite the commonality of café startups, many small businesses in this industry end up closing within a year, with the majority struggling to stay afloat.

Running a café can be extremely stressful, with a constant struggle to meet high rent costs and low weekday sales.

Gentrification and increasing rent prices pose a significant challenge for café owners, often leading to financial strain.

The café industry also faces the issue of attracting repeat customers, especially with the growing trend of people visiting cafés for the sake of novelty and social media, rather than for the quality of the experience.

The Challenging Reality of the Cafe Business

The oversaturation of cafes makes it difficult for them to sustain a profitable business model.

Even well-established cafes struggle with rising rent and location issues, leading to financial losses.

The high density of cafes contributes to a competitive red ocean market, where the majority of new cafes fail within a few years of opening.

The Challenging Outlook for Starting a Café

The café industry is currently oversaturated, making success challenging for new businesses.

A market analysis and understanding the local environment are crucial before starting a café.

Despite the growing coffee market, the high competition and potential failure factors require caution for aspiring café owners.