Knowing your budget is one of the most important steps when starting a café in the UK. A clear understanding of your startup costs helps you plan effectively, secure funding, and build a realistic café business plan that supports long-term success.
This comprehensive guide covers:
- Realistic startup costs for cafés in 2026
- Detailed expenses across major categories
- Tips for budgeting and financial planning
- Steps to create an accurate café business budget
Average Café Startup Costs
Startup costs vary widely across several factors in the UK. No single formula applies to every coffee shop, as expenses depend on your specific location, the size of your premises, what products you plan to offer, the equipment you need, and your chosen interior design approach. Operational requirements and utility considerations also play significant roles in determining your total investment.
However, independent coffee shop businesses typically require between £20,000 and £100,000 to launch, according to the British Business Bank. Smaller formats like popup kiosks or mobile vans can cost considerably less, while larger establishments in prime locations may push well beyond the upper range.
Cost Ranges for Different Cafe Types
Mobile Coffee Carts and Kiosks
Mobile operations and small kiosks typically cost between £18,000 and £55,000 to establish. Extremely basic coffee cart setups may start as low as £7,500 for simple mobile units with minimal equipment. These setups require minimal overhead since you avoid high rental costs and extensive renovations. Equipment needs focus primarily on a quality coffee machine, grinder, and basic serving supplies.
Small Independent Café
A compact café with limited seating (20-30 covers) generally costs between £20,000 and £55,000. This range includes basic equipment, simple furniture, initial inventory, and essential licenses. These cafes work well in neighbourhood locations with lower rent and minimal renovation requirements.
Standard Sit-Down Café
Traditional café with full service and 40-60 covers typically require £30,000 to £100,000 in startup capital. This investment covers quality commercial equipment, comfortable furniture, professional interior design, comprehensive inventory, and all necessary permits. Average-sized cafes often fall within the £30,000 to £100,000 range depending on location and fitout quality.
Premium and Specialty Cafes
High-end cafés in prime locations with specialty offerings may require £100,000 to £300,000 or more. These venues feature top-tier equipment, custom interior design, premium furniture, and extensive renovations. Specialty cafés focusing on single-origin beans, artisan pastries, or unique concepts fall into this category.
Regional Cost Variations Within the UK
Your café’s location is the single biggest cost driver.
London and Major Cities
Central London cafes face the highest costs, with monthly rent up to around £470/m² as an estimate from market data. A small 500 square foot space could cost £3,000-£10,000+ per month. Total startup costs for London locations typically range from £100,000-£500,000 due to higher rent deposits, renovation costs, and competitive market pressures.
Edinburgh and Other Scottish Cities
Scotland’s major cities present moderate costs compared to London. Edinburgh rent averages £280/m² per month. Startup costs for cafes in these areas generally fall between £50,000-£150,000, offering better value while still providing access to tourist traffic and urban customers.
Suburban and Small Town Locations
Small towns and suburban areas are the most budget-friendly choices. Monthly rent ranges from £1,500-£5,000 for suitable cafe spaces. Countryside locations may see rents as low as £50-100/m². Total startup costs in these areas can be as low as £20,000-£60,000, making them ideal for first-time cafe owners.
NOTE: Regional variations also affect labour costs, utility expenses, and customer expectations. London cafes may charge premium prices but face higher operating costs. Smaller towns offer lower overheads but may have limited customer traffic.
How Much Does it Cost to Open a Cafe or Coffee Shop?
Here’s a complete breakdown of what makes up your café startup costs.
Location and Property Costs
Your cafe’s location determines both upfront and ongoing costs. Key expenses include:
- Rent deposits: Three to six months’ rent upfront (£9,000-£18,000 for a £3,000 monthly rental)
- First month’s rent: Paid in advance
- Legal fees: £500-£2,000 for lease review and negotiations
- High Street/prime locations: £3,000-£10,000+ monthly
- Shopping centres: £5,000-£15,000 monthly
- Suburban cafes: £1,500-£5,000 monthly
- Mobile carts/kiosks: £500-£2,500 monthly
Never skip professional legal review, as lease terms significantly impact your long-term viability.
Renovation and Fitout Costs
Transforming a commercial space into a functional cafe requires significant investment:
- Low-spec fitouts: £1,000-£1,500/m² for basic operations
- Medium-spec renovations: £1,700-£2,200/m² with quality finishes
- High-spec fitouts: £3,000+/m² with premium materials
- 50 square metre cafe: £50,000-£150,000 to fully renovate
- Small cafes (20-50 covers): £150,000-£300,000 complete renovation including equipment
- Simple refurbishments: £10,000-£35,000
Essential work includes electrical installations, plumbing, flooring, wall finishes, lighting, ventilation, and building code compliance.
Coffee Equipment and Machinery
Quality equipment forms the backbone of any successful cafe:
- Entry-level espresso machines: £3,000-£6,000
- Mid-range machines: £6,000-£10,000
- Premium machines: £10,000-£20,000+
- Basic grinders: £800-£1,200
- Mid-range grinders: £1,500-£2,500
- High-end grinders: £2,700+
- Filter coffee makers: £160-£1,400
- Water filtration systems: Several hundred pounds (essential for machine longevity)
- Additional equipment: Commercial refrigeration, blenders (£40-1,000), display cases, dishwashers, ice makers
- Total equipment costs: £8,000-£30,000
- Leasing option: Around £150 monthly for espresso machines
Furniture and Fixtures
Creating a welcoming atmosphere requires quality furniture:
- Commercial cafe chairs: £27.99-£100+ per chair
- Tables: £17.50-£500+ per table
- Small cafe seating (10 tables, 30 chairs): £2,000-£5,000
- Counter displays, POS stations, storage: £1,000-£3,000 additional
- Basic furniture setups (newer buildings): £3,000
- Complete renovations with fixtures: Up to £10,000
Mixing second-hand and new furniture can reduce costs while adding character.
Initial Inventory and Stock
Stocking your cafe with opening inventory requires careful planning:
- Wholesale coffee beans: £9-32/kg (specialty: £16-20/kg)
- Initial coffee inventory: £500-£1,500
- Milk and dairy: £200-£500 initial stock
- Food items (if offering): £500-£5,000 depending on menu
- Disposables (cups, lids, napkins): £500-£1,000
- Complete initial inventory: £2,000-£10,000 (standard cafes: £5,000-£7,000)
Licenses and Permits
Operating a cafe legally requires several licenses:
- Food business registration: FREE (mandatory, register 28 days before opening)
- Premises licence (alcohol/music): £100-several hundred pounds annually
- Pavement cafe licence: £100-115 annually
- Music licence (PPL PRS): £200-400 annually for small cafes
- Total basic licenses: £250-£500 annually
- Extended services (alcohol, live music, outdoor seating): £500-£1,500+
Insurance
Insurance protects your business, employees, and customers:
- Public liability insurance: £60-200 annually (£1-2 million coverage)
- Employers’ liability (mandatory with staff): £68-300 annually (£5 million minimum coverage)
- Contents insurance: £200-600 annually
- Business interruption (optional): £150-500 annually
- Complete insurance packages: £200-£1,500+ annually
Small cafes with basic coverage pay toward the lower end, while larger establishments pay more.
Technology and Point of Sale Systems
Modern cafés depend on efficient POS systems for smooth transactions.
- Free POS options: Square, Zettle, FoodChow (1.49-2.9% transaction fees only)
- Entry-level paid systems: £49 monthly (SumUp POS Pro)
- Professional systems: £69-129 monthly (TouchBistro, Lightspeed)
- eTakeawayMax: £43 monthly (£10/week) with zero commission on orders
- POS hardware: Tablets/terminals (£200-800), card readers (£29-200), receipt printers (£100-300), cash drawers (£80-200)
- Complete hardware packages: £400-£1,500
- Business internet: £50-100 monthly
- Total technology setup: £500-£2,000 for hardware, plus £50-200 monthly for software and internet
Staffing and Wages
Labour represents one of the largest ongoing expenses:
- Barista hourly wage: £12.97 nationally (London: £13.25/hour, major chains: £12.60/hour)
- Small cafe staffing: 2-3 staff per shift, 4-6 total employees
- Larger cafes: 8-12 total staff members
- Training costs: £200-400 per employee (2-4 days paid training)
- Cafe managers: £20,000-£35,000 annually
- Labour cost guideline: Keep around 30-35% of revenue
- First-month investment: £3,000-£8,000 for wages, training, and recruitment
Marketing and Initial Promotion
Once your café is ready, promotion becomes essential.
- Pre-opening activities: £2,000-£5,000 (signage, social media, local advertising, opening events)
- Brand development: £500-£2,000 (logo, menu design, brand materials)
- Digital presence: £500-£1,500 (website, social media, online listings)
- Grand opening events: £500-£2,000
- Ongoing marketing: 3-6% of revenue after launch
- Total initial marketing: £2,000-£10,000
Utilities and Services
Ongoing utility costs begin before opening:
- Electricity: £300-£1,500 monthly (largest expense)
- Commercial water: £50-200 monthly
- Gas (if used): £50-300 monthly
- Business internet: £50-100 monthly
- Phone service: £30-60 monthly
- Commercial waste collection: £80-200 monthly
- Pre-opening utilities (1-2 months before launch): £500-£1,500
Activate utilities 1–2 months before launch to support renovations and equipment testing.
Professional Services
Expert guidance helps navigate complex regulations:
- Accountants: £500-£2,000 initially, £100-300 monthly ongoing
- Solicitors: £500-£2,000 for lease review and business structure
- Architects/designers: £2,000-£10,000 (10-15% of renovation costs)
- Hospitality consultants: £1,000-£5,000 depending on scope
Contingency Fund
Set aside 10–20% of total startup capital for unforeseen expenses. Typical surprises include additional renovation work, equipment repairs or replacements, permit delays, and higher-than-expected utility deposits. This reserve prevents costly delays and protects your opening timeline.
Final Thoughts
Opening a cafe in the UK requires realistic financial planning and adequate capital. Costs range from £18,000 for mobile setups to £100,000+ for established cafes, with London locations demanding significantly more.
Success depends on matching your budget to your concept, choosing the right location, and maintaining a 10-20% contingency fund for unexpected expenses. With thorough preparation and sufficient funding, your cafe can establish itself and grow profitably in the UK market.
Frequently Asked Questions
How much does it cost to start my own café?
Starting a cafe in the UK typically costs £20,000-£100,000. Mobile coffee carts require £18,000-£55,000, while standard sit-down cafes need £30,000-£100,000. Premium locations with specialty offerings can exceed £100,000-£300,000 depending on location, size, equipment quality, and renovation needs.
What Do Coffee Shop Startup Costs Include?
Coffee shop startup costs include rent deposits, renovation and fitout, commercial equipment (espresso machines, grinders, brewers), furniture and fixtures, initial inventory, licenses and permits, insurance, POS systems, staffing and training, marketing, utilities, and professional services. Budget an additional 10-20% for contingency funds.
How much does it cost to open a cafe in London?
Opening a cafe in London costs £100,000-£500,000 due to premium rents (up to £470/m² per month) and higher operational expenses. You’ll need three to six months’ rent upfront as deposit, plus elevated renovation costs and competitive wages (baristas earn £13.25+/hour).
How much does it cost to open up a small café?
Opening a small cafe with 20-30 covers costs £20,000-£55,000 in most UK locations. This includes equipment (£8,000-15,000), furniture (£2,000-5,000), initial inventory (£2,000-5,000), rent deposits (£3,000-9,000), renovation (£5,000-15,000), and licenses (£500-1,000).
