How to Choose the Best Location For Your Coffee Shop

Deciding the best place to set up your coffee shop is an exciting decision, but it is one that needs careful consideration.

Esquires Coffee is a leading coffee franchise, so we have plenty of advice to offer on the subject.

We explain how to decide on the best coffee shop location by considering the demographic of your target customer, and other functional factors such as size and accessibility. 

Choosing The Right Location For Your Coffee Shop

There are couple of key factors that you'll need to consider when seeking the perfect spot to set up your new coffee business: 

  • Your target audience
  • The surrounding businesses
  • Your branding 
  • The demand of the area 
  • Accessibility 
  • Size of the interior 
  • Budget

Esquires Coffee infographic on Choosing the Right Location for Your Coffee Shop

Think About Your Target Audience

A fundamental step in choosing a coffee shop location is knowing who your target customer base is. Once you know who you are trying to reach, it is essential to get to know and understand that audience as much as possible.

Once this has been decided, you can determine which locations they are most likely to travel through or visit during their day to day schedules.

An area for consideration is where your potential customers commute to and from as they pass the store and what time of day they will be purchasing coffee. For example, will they require a coffee late in the morning, after dropping their children off at a local school? Will they be using their local coffee shop as a hangout at lunchtime during their day at university?

Each audience base will differ, and you need to ensure your coffee shop is in the correct location to catch them at the right time of the day.

what makes a good coffee shop experience

Consider the Surrounding Businesses

The type of coffee shop you want to create ideally needs to be amongst other businesses that appeal to a similar customer base. Your own products and services need to reflect a similar perspective to the businesses around you.

Suppose you hope to create a coffee shop that is proud to offer Fairtrade and ethically sourced produce. In that case, you will want to surround yourself with local businesses that also strive to do the same but in a different industry, such as a bakery or greengrocery.

Is the Location in Line with Your Branding?

This consideration ties in with looking at the other local businesses. When looking for the ideal location, your branding should be at the forefront of your mind.

Does the area mirror what you're striving for with your coffee shop business? If you are looking to attract a young, university crowd, are you located in the right part of the area? If you are hoping to catch the early morning commuters, is the location in an accessible spot for them to quickly pop in and out?

Two baristas making coffee wearing face masks

Research the Demand in the Area

It is essential to ensure that you understand your competitors in the area beyond identifying the obvious such as other coffee shops. If you are planning to offer food, for example, you may need to research the types of other food businesses in the area, such as sandwich shops or smoothie bars.

Once you understand more about the other local businesses, you should consider if the market is oversaturated with competition or not. To thrive as a coffee business, you need to ensure that the products you provide are in high demand.

Ensuring Accessibility

Inclusivity is vital when creating a welcoming atmosphere. Easy accessibility should be something you ensure when choosing a coffee shop location.

Providing wheelchair access means everyone can come to your coffee shop to enjoy what you have to offer.

Size of the Interior

Coffee shops require a certain amount of space. Firstly, a decent workspace is required to maintain a coffee machine and all the necessary equipment. This needs to be a practical area with plenty of space.

As coffee shops tend to be a place to relax, an ample amount of floor space is needed to contain various types of furniture, including tables, chairs, stools, sofas and armchairs.

Finally, if you hope to have a breakfast and lunch menu, a kitchen space will also be required.


The most decisive aspect when considering a location for your coffee business is no doubt your budget.

Here at Esquires Coffee, we thoroughly research our coffee shop locations before choosing the final site as part of our franchise business model. We do this on behalf of the franchisee to ensure you get the best start when opening your coffee shop with us.

If you are considering starting a coffee shop business of your own, why not find more about the franchising opportunities at Esquires Coffee? Fill out an application and discover how we can support you on your business venture!


About the author - Jack Anderson

Jack has been working in the franchise sector for over 12 years and is our in-house guru on all things business! Jack is also a keen hiker and can be found in some of the UK's best walking spots on the weekends.