Last updated on March 22nd, 2024 at 02:47 pm

Starting a Café Business Could Be One Way You Can Enjoy Living in Thailand…

I know a lot of foreigners who plan on opening a business in Thailand don’t know what to start at first. Coffee shops or cafés are a good choice because of its perceived simplicity.

And who doesn’t know what coffee is? Starting a small café in any of Thailand’s major cities like Bangkok, Chiang Mai and even Hua Hin won’t require a huge start-up budget compared to the West.

Now, the easiest way to register a small business in Thailand is with a Thai partner. For me, my partner was my Thai wife.

However, registering a business under your Thai spouse, girlfriend, or boyfriend by this method means your name won’t be listed as the owner. I am sure most of you reading this most likely have a good relationship with a Thai partner.

I went into more detail in this post Small Business Ideas in Thailand including a couple of business ideas I think work great in larger cities of Thailand.

But the more cash you’ve got to invest in your small café venture the better off you will be on acquiring better equipment. And more importantly more cash to splash on café design and decor. Which is super important.

I highly recommend getting the best quality espresso machine and coffee bean grinder that you can afford. Even if it is secondhand. It makes all the difference.

A good coffee machine and trendy café could ensure a decent return on investment…

Nice furniture and decoration to give it a special café ambiance wouldn’t hurt either. And of course, you’d need an excellent location with plenty of foot traffic and easy-to-see signage.

Unless you have secret marketing skills to attract caffeine-addicted customers to your secluded location.

Before you begin serving coffee to your potential customers, you should know that certain types of Thai coffee recipes are not the same.

A coffee shop is a good business to start in Bangkok or anywhere else in Thailand with a decent local population…

And before I go any further I do want to say that I had a little café business in Bangkok for more than a few years. The operative word is “had”.

That said, I am actively searching for a new location to open up another café as of writing. Because today there is an opportunity to do so. But I would plan carefully as the coffee business is extremely competitive. However, there is a way for you to have an upper hand in the competition.

I’ll explain further about that below.

It’s Not Going to Be Easy – There’s Always a Learning Curve

Starting a coffee shop in Bangkok was not easy when I first opened. There were problems with the construction company we hired. I couldn’t find reliable workers. When all was said and done, profits were okay.

Of course, it could’ve been a lot better. Otherwise, I’d still be in the café business.

My major hurdle was that the location was not that great. But it wasn’t bad either. The price of my coffee drinks was not fairly expensive by Thai standards. I charged 55B for a 16oz. iced latté and this was back in 2014.

I honestly believe that if you’re opening a shop in Bangkok you better charge a bit higher. For example, if I had a shop today in a fairly good location with foot traffic, and plenty of space for customers to lounge around all day, I’d charge at least 100 B for 12 oz. Iced Americano minimum.

Because at the end of the day, you want to turn a profit.

Only cafés the likes of Starbucks or other international coffee house chains could get away with charging a cup of coffee for a premium price. As of writing, Starbucks in Thailand charges 130B for 16oz. lattes.

130B is not a cheap treat in Thailand. Even then, they’ve still got customers lined up through the door. Starbucks is easily one of the most popular cafés in Thailand. If they’re able to convince locals to spend that amount on their coffee then you’ve got some stiff competition.

See, I told you it won’t be easy.

Coffee Fruit – Traveling outside of Thailand searching for coffee beans was what I loved doing…

I Learned a Lot About the Café Business in Bangkok…

I learned a lot about starting a café business in Bangkok including baking. So I know having a coffee shop in Bangkok has the potential to do very well. I know where to buy coffee machines and necessary items like cups, coffee beans, and straws at good prices.

Also through a long and arduous search, I finally found a reliable contractor to build a business from the ground up.

This is one of the reasons why I feel qualified to write this post on how to start a café business in Thailand

In a nutshell, I’d start another café in Bangkok as soon as I can find a good location with heavy foot traffic.

Marin Coffee in Koh Chang – Tasty bakery and good coffee go hand in hand…

Knowing how to bake as well will be an advantage to you. Cakes, pies, cookies, brownies you name it are integral for a healthy café business. Both product offerings go hand in hand and up your profits easily. And possibly one way to sway die-hard Starbucks customers to walk through your doors instead of theirs.

But for now, I’ll share with you some of the lessons I’ve learned. The mistakes I’ve made and where you can go buy the necessary equipment and supplies, particularly in Bangkok.

Also, I’ll share what I learned about opening a business in Thailand.

A small café we visited on the island of Koh Chang…

Below is a primer about coffee in Thailand. If you know the difference already, please feel free to skip it. Otherwise, get ready to learn something new. Which is always a good thing.

Espresso-Based Coffee Drinks in Thailand

If you’ve got latté art on your coffee then it’s an espresso-based coffee…

Thais are starting to enjoy coffee as a daily beverage. And Thailand is no stranger to drinks with caffeinated jolts. Red Bull was invented in Thailand.

It’s a good way to take in some much-needed caffeine to get through the day. And they are starting to get savvy about the different varieties of coffee beans.

For traditional Thai Coffee style if you’ve ever bought coffee off the side of a street then you’ll know it’s very different from Western espresso-based coffee.

I’m sure you’ve seen a Café Amazon and Mezzo coffee chain in Thailand. Both are Thai-operated coffee shops that use Thai-grown coffee beans, never imported.

Both of these Thai coffee chains use espresso machines too. But the major difference is they add a combination of evaporated milk and condensed milk as a substitute for real dairy milk.

Western espresso-based coffee drinks use whole-fat dairy milk exclusively.

Thai coffee uses a mixture of evaporated sweet and condensed milk…

Thai coffee is typically added to a mixture of evaporated and condensed milk for that creamy texture and cloying sweetness. It’s either spooned in or pumped from a bottle right to coffee.

Thai cafés like Amazon Café, Black Canyon Coffee, and Mezzo will use whole fresh milk to create foam for lattes and cappuccinos. Because evaporated milk and condensed milk will not foam when steamed.

Every 7-Eleven in Bangkok sells espresso-based drinks also mixed in a combination of evaporated and condensed milk. That’s the main reason why they can sell their coffee cheaper.

Traditional Thai coffee is sweet due to the addition of sweet condensed milk…

The Invasion of Western Coffee Chain

Starbucks is the best example of a café serving traditional Western espresso-based beverages. Today many foreign espresso-based cafés are joining the ranks like Korea’s Holly’s CoffeeCoffee Bean & Tea Leaf, and Au Bon Pain. Every single one of those shops uses 100% whole milk, following the Western formula.

Plus there are many independent Thai cafés that roast and blend their coffee beans opening up all over the country. These Thai specialty cafés do not use evaporated and condensed milk at all and follow the Western espresso guidelines.

Consider carrying organic coffee beans for the sophisticated customer base…

The bottom line is most of the coffee beverages sold in Thailand still use the evaporated and condensed milk mixture and are thus able to be sold cheaper.

Most small Thai cafés sell 16oz. iced lattes for 35B, which they can get away with because they’re using dairy substitutes from cans.

While espresso-based beverages served in western-based cafés use whole milk and typically charge more money per cup. 100% whole dairy milk is not cheap in Thailand. It’s about 90B for 1 liter of fresh milk.

With Bangkok’s growing coffee consumers many upscale coffee companies are appearing all over the city…

Now that you know what the difference is between both coffee variations, I’ll point out a few places where you can buy the necessary supplies and equipment to power your coffee shop.

Where to Buy Café Equipment and Coffee Shop Supplies in Bangkok

Because I am still based in Bangkok where I had a café once, I’ve already researched a bunch of places to purchase café equipment and supplies to run a coffee shop.

If you’re planning to open a café in Hua Hin, Pattaya, or Chiang Mai you will be able to find coffee equipment suppliers near those cities. Just make sure they have someone who can service your equipment while under warranty. More about that later.

This is especially true when you’re searching for a good commercial espresso machine and other necessary equipment such as a commercial coffee bean grinder.

You can find many commercial espresso machine sellers inside JJ Mall in Bangkok…

In Bangkok, I’ve learned that the best place to buy café equipment is inside JJ Mall, which is next to Chatuchak Weekend Market.

Inside JJ Mall you’ll find about 3 or 4 café supply shops with everything you’ll ever need to stock and supply your café business. From Thai coffee beans to coffee cups, lids and straws.

Here are the names of 2 shops inside JJ Mall for purchasing commercial espresso and coffee grinders and many other products you’ll need to run a proper café in Thailand:

Coffee Boulevard (website)
Double Shot Coffee (website)

Commercial espresso machines and commercial coffee bean grinders are a little bit more expensive due to the country’s high import tax. But it is still relatively affordable. I highly recommend purchasing from a reputable dealer because they are the ones that can provide warranty service for repairs.

First, you have to understand, that Thai coffee is different than espresso-based coffee…

Also, they will train you or your employees on how to use and maintain the equipment. No matter where you end up buying your commercial equipment be sure they include training on usage and instructions on daily maintenance.

A good commercial 2-group espresso machine could cost 200,000THB. A good commercial coffee grinder could cost 25,000THB. Get the best equipment you can afford. You’ll be glad you did in the long run.

Second-hand espresso machines and coffee grinders are also an option to save some money.

Maintenance, Repairs, and Warranty Service for Coffee Equipment

Wherever you choose to buy your equipment, be sure to ask the vendor what type of warranty is available. Because if you buy from Bangkok, but you’re opening a café in Rayong then you will need to find an equipment supplier near Rayong for repairs.

That way, the shop that sold you your equipment can provide service easier and quicker.

I know cities like Chiang Mai, Pattaya, and Phuket shouldn’t have any problems locating a reliable provider of coffee equipment.

But if you’re out in the boonies of Thailand you might want to check out your nearest Makro. There could be coffee shop suppliers on the premises or outside. The lesson here is to never buy anything you can’t get repaired.

What if the Warranty is Over But You Need to Find Someone Who Can Repair it Cheaper

Eventually, your equipment’s warranty will expire. Usually a year or two. Afterward, there’s a chance you’ll get charged a higher price for repairs from the place you purchased from. Usually, a good quality espresso machine lasts for years and years. But if you’re super busy it is inevitable that you will need maintenance and minor repairs.

Which can be expensive.

This is what I would do. Go to a 7-Eleven. Hey, it’s Thailand, don’t worry, you’ll find one. Inside they might have a commercial espresso machine.

Ask the employees if they can give you the phone number of the repairmen’s phone number. Make sure it’s the personal cell number, not the repair company.

Espresso machine repairs should only be done by professionals…

Do you get the idea? You might have to slip a 100THB note, just a little bit of cash or you might not. But small gestures grease the wheels.

Every 7-Eleven is contracted with a company to repair their 7-Eleven espresso machines. When my espresso machine needed some maintenance this was what I did exactly. I went next door to my 7-Eleven, got the phone number of a repairman, and gave him a call. And the repair guy charged way cheaper.

Now, I’ll get to the soul of the coffee business. The fuel (literally) billions of people consume cups of daily. And that is the coffee beans.

Purchasing the Beans

Coffee beans are the lifeblood of your café business. If you’re starting in Bangkok, Coffee Boulevard in my opinion has a better offering of Thai-grown coffee beans. You will have to do your research on where to purchase other varieties of espresso beans. But it is easier today than it was 5 years ago to find a good supplier of coffee beans.

Many Thai coffee bean wholesalers have websites so do a Google search and you’ll find a bunch of wholesalers ready to sell and ship to your location.

Also, I highly recommend attending the World of Coffee & Tea Expo which shows up yearly at Bangkok’s IMPACT convention center. You’ll find lots of coffee bean and tea wholesalers who are more than happy to let you taste their espresso lineup.

This little shop has been there forever. They have a decent variety of robusta and arabica beans from all over…

JJ Mall does have a shop selling whole beans from around the world and is located right across from Double Shot Coffee on the ground floor. This shop is called Bona and it’s more of a retail shop. However, you can speak to the owner and see if they can hook you up with wholesale prices.

I never purchased imported coffee beans from Bona for my café. Thailand is surrounded by several countries with the finest coffee beans in the world. And I can get there with a short flight in a few hours.

A Real Good Reason to Travel – Buying Coffee Beans Around Southeast Asia

When I travel around Vietnam and Indonesia I always bring back loads of roasted whole espresso beans. Because both countries have the right climate and environment for optimum coffee growth. Which yields their farms some of the best coffee known all around the world.

Purchasing coffee beans from countries neighboring Thailand is a great reason to travel…

Buying your coffee from these countries gives you a good reason to travel around and explore. And when you get back you can let your café customers enjoy that same coffee. Without having to leave Thailand.

Building Your Café (Finding a Reliable Construction Company)

Designing your coffee shop from the ground up is exhilarating. It can reflect your style, quirks, and taste. It only gets harrowing when everything that was designed on a computer comes to fruition. I’ve had my fair share of disappointing experiences with build contractors.

Besides a café business, my wife and I also have three nail salon shops. The first two shops and the contractors we hired were horrible. It was only at our third salon we found a professional construction company that works well for small businesses like mine in Bangkok.

Cafe design blueprint
Your contractor will be able to design a 2D and 3D plan of your café

Shopping Around for the Right Contractor

Normally you find at least three contractors and have them bid for your business. Your initial reflex is to hire a contractor with the lowest bid.

Well, sometimes the lowest bidder isn’t your best option.

It could mean you’re getting cheaper material. Or worse yet unskilled laborers that only do shoddy work. Manual labor in Thailand is absurdly cheap. With unscrupulous contractors that don’t care about their workmanship experience.

Focus in the Middle

From my own experience and the experiences of other business owners I’ve spoken to in Thailand, it’s best to go for the construction contractor in the middle.

Meaning when you get three contractor quotations, you may want to consider checking further into the company that didn’t charge the most expensive nor the cheapest.

It’s not that simple of course. There are many other factors to consider, like how far and different the price quotes are.

Three Most Important Tips and Advice While Dealing with Thai Contractors

  1. Do not hire a design and construction company separately. I recommend looking for contractors with in-house designers. This limits the chances of miscommunication which can end up costly and waste time.
  2. Request a detailed list of construction materials used. With breakdowns of costs and labor. This will be written in Thai of course. Unless your contractor has an English speaker which could be rare. So make sure you have someone to help translate.
  3. **Set a penalty fee if construction passes the date of business opening.
Cafe design
Designing an eye-catching café is essential

If you hire a design and construction company separately you might be shooting yourself in the foot. If both are not used to working with each other there could be major miscommunication.

Always check the materials contractors use. One time I got a list of materials for windows with aluminum framing. However, during construction, cheaper wood was used instead of aluminum to frame the windows. It was changed eventually but a headache nonetheless.

We’re not sure if the contractor just wanted to sneak one past us with cheaper materials or perhaps a major miscommunication with our designer, who was hired separately.

**Setting a penalty fee if a contractor doesn’t finish in the time promised could be an issue. Because almost all, in most of my experiences, are late.

As a result, they may not take on your job. But I’m putting this out there in case you have a deadline to open on time.

Quotation for construction
Construction quotation, contractors ask for three payments to be paid in three phases of construction…

Paying the Contractors

For small businesses when starting a construction project contractors request payments in three phases:

  1. First payment for initial construction start: 50%
  2. Second payment when half of the construction is done: 40%
  3. Final after completion payment: 10%

I must warn you, that some contractors may ask for more money in between the first and second phases of construction.

This could be because they’ve underestimated the cost of materials and don’t have any money to purchase what is needed.

In any case, this is a sign of unprofessionalism. A common practice in Thailand among small contracting companies. Could also be just an honest mistake in price calculations too. In any case, it’s a hassle and headache for you.

It’s happened to me numerous times. Normally I just pay what is asked for the sake of finishing my shop to open in time.

If you’re planning to open a business in Bangkok and in search of a reliable contractor to build or renovate space, drop me a message on my contact page.

I’ll be more than happy to recommend a good contractor in Bangkok. They can do everything from design to finished construction.

Now that you’re all set to build your shop, it’s time you start looking for baristas and service staff.

Finding Reliable Staff to Run Your Café Business in Thailand

Finding competent and reliable baristas and servers will be a big challenge. You’ll need at least one extra person to help you even if it’s a small shop. Don’t plan on working alone. It’s not feasible.

As of writing the city with the highest daily minimum wage in Thailand is Bangkok at 400THB for 8 to 10 hours per day. For a café style business, 1 day off a week is typical. And you will have to factor in overtime wages also.

Like any business searching for a reliable workforce, you can start by asking around Thai friends and family. Sticking a help wanted sign on your storefront is helpful too.

Sorting Out the Go-Getters

Interviewing your new Thai staff is important. Please don’t choose anyone just because you’re desperate for somebody to work. Remember, if you’re not inside your café, you want your employees to manage and care for the shop and customers as well as you can.

One way for me to find out if someone is a go-getter is by checking how much their salary request is. On my job application forms, I ask one simple question, “How much salary per month?”

A lot ask for a minimum between 9500THB to 10000THB. But I get a handful of prospective baristas and wait staff asking for 12000THB to 13000THB.

Which would you pick?

When you drill down the application you’ll find those that finished high school and university are usually the ones with higher salary requests. That alone doesn’t mean they’ll make the best workers.

It’s a start. But if they know their self-worth and believe they’re worth that amount in salary then I rather hire someone who knows how much they are worth.

Teach by Setting Examples

Customer interaction is super important. Remembering frequent customer names creates a bond. While training your staff it’s super important for you to ask them to watch how you deal and interact with customers. On how you clean your shop to how you prepare fresh espresso beverages along with the recipe training.

Setting an employer and employee boundary is important too because if you become too friendly it might make it difficult for you to tell them to clean the toilet or a mess a customer made. The bottom line is don’t make it too comfortable or else things won’t get done the way it’s needed to be done.

Training Your Staff to Be Nice

I know this sounds crazy but you have to teach your staff to be nice. Hey, big companies do the same thing. Everyone is not born adept at customer service. It will have to be taught. How you teach it is up to you.

But telling your staff to be nice, yes nice to people, sounds harder than you’d think. Be polite to the customer. Make friends with the customer. If a customer complains, just say you’ll consider their complaints. Even when you think they are wrong. The point is to avoid unnecessary confrontation.

To be nice, yet charge them full price is my motto. Just kidding…

My Biggest Advice on Opening a Coffee Shop in Thailand

As I already mentioned I once operated a café in Bangkok for a while. The reason why it didn’t do well was because the location was not ideal. Luckily I had an amazing and understanding landlord.

In the end, I learned a lot and so have plenty of advice to share about getting into the coffee shop business.

Location is key. Choosing a spot with a good decent amount of foot traffic will get you a big advantage. But getting a location at a high foot traffic will most likely come with a big rental agreement. That’s the trade-off. Having a top location is the difference between success and flopping.

As of writing, Bangkok is a growing city that is aggressively expanding its BTS Sky Train and MRT subway lines.

In essence, now is the best time to start scouting for that perfect location for a café business. I recommend looking for spaces that are near new BTS Sky Train stations. With lots of condos and apartments nearby, you increase your range of customer potential.

Make sure you have enough space for you and your staff behind the counters…

That is what I am personally doing. But I am willing to go one step further and look into purchasing a small 3-story building. Perhaps a townhouse. Where I can operate a café and bakery on the ground floor, rent out the second floor to café staff, and perhaps live on the third floor.

The ambiance of your café is important. Ideally, it should have plenty of space. A high ceiling helps make a small café look twice its size.

My last café space was very limited. Which limited what I could offer to my customers. So do not choose a location with too little space. Unless you are planning on serving takeaway customers only.

You will also need kitchen space. You should incorporate a variety of food and desserts. It does not have to be a vast menu. I recommend specializing in a few special items like cheesecakes or brownies. If you’ve got plenty of space go for the full kitchen so you can cover casual customers looking for a caffeine fix to customers looking for a meal.

To Sum it All Up – Advice for a Successful Café Business in Thailand:

  1. Get a location in a high-traffic area. I know this is a no-brainer. But trust me on this.
  2. Have the best café design you can afford. Contact me if you’re looking for a reliable contractor in Bangkok.
  3. Have plenty of space. As big as you can afford.
  4. In the coffee business, food is a must on the menu.
  5. Carry organic coffee. It costs more but people are willing to pay.
  6. Offer a wide variety of coffee beans to your customers.
  7. Do not buy coffee franchises. No matter how cheap or enticing their business structure looks.
  8. Hire the best people you can afford. Nice people, polite people.

I Do Not Recommend Buying Thai Coffee Franchises… Unless…

Amazon is well-known café based only in Thailand.

That’s just me. The reason why I would not buy a Thai coffee franchise is because I will not have control over my business. When I mean no control I mean I won’t have the freedom, nor the option, to make the style of espresso-based drinks that I like. Or serve the desserts I like and so on.

Let’s take Café Amazon as an example. You have to follow Amazon’s coffee recipes. There’s no deviation from their standard recipes at all. And as I already mentioned Amazon uses a mixture of sweetened condensed and evaporated milk. Which I’m not a fan of.

You also have to buy their cups, and espresso beans, purchase their proprietary furniture, and follow their corporate design structure. On top of that, you have to pay a fee to purchase and operate under their name. And last my wife checked the cost of buying an Amazon franchise in Thailand was 2,000,000THB.

There are cheaper Thai coffee franchises that can get you from the ground up to running for around 150,000THB for a small café. They’ll equip you with the espresso machines, not the best one, but one that will run for a small business. You’ll get roasted beans, hot and cold cups, straws, etc. again, it won’t be the best quality. A franchise includes logos and branding.

If you are interested about a small Thai coffee franchinse you can send me your requirements on my contact page. Smaller franchises are affordable and more personal when it comes to one on one assistance.

Instead of paying hefty franchise fees, it’s better to start a business on your own and use the capital to make your café stand out…

If you want a business in a box and not think too much about how to set up your café and have an ample supply of capital then by all means go ahead and buy a Thai coffee franchise.

But I believe, as an entrepreneurial businessman, that it’s best to go out on my own. Because I can say for certain that in the café business, you have the same chance of success and failure between opening up a café business on your own or buying a Thai coffee franchise.

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110 responses to “Opening a Coffee Shop in Thailand”

  1. Min Kühne Avatar
    Min Kühne

    Hi Warren

    Thanks for your informative post!
    I’m a student from Switzerland and I’m writing a paper about opening a coffee shop in Thailand. For my paper, I have to interview some experts and ask for their feedback for my café concept / business plan.

    I wanted to ask you if you could give me some feedback about my coffee shop ideas and if it would be ok to ask you some more questions about opening a coffee shop?

    Kind regards
    Min

  2. SuperMomBarista Avatar
    SuperMomBarista

    Hi Warren! Thank u for the delightful insights. I’ve been running a mini café myself here in TH but it’s very unpolished. Wish I could also get some infos about contractors that would suit my budget considering the uncertainties. Hope to hear from u!

    1. Darin Nicha Avatar

      “May I invite you to join us at the ASEAN Cafe Show at BITEC, Bangkok, from July 26 to 29, 2023, between 10 a.m. and 7 p.m.? Register in advance to visit the show and avoid queuing, plus you could win prizes: [Insert Registration Link]

      Admission is free for all attendees. Inside the show, you’ll find four zones spanning over 10,000 square meters: Roaster Street, Tea Street, Sweet Zone, and Champion Village.

      There will be plenty of exciting activities, including the Thailand National Roasting Competition, a barista workshop, gelato and bakery demonstrations, and more.

      Explore thousands of products from around the world, including equipment, tools, ingredients, and ready-to-eat/drink coffee, tea, bakery items, and ice cream, all at special prices.

      The show is the perfect place to discover new products, stay updated on industry trends, and network with like-minded professionals. Don’t miss out!”

  3. Rocky Avatar
    Rocky

    Warren
    You gave me a deep understand of Opening a Coffee Shop in Thailand. Your articles are practical and realistic. Hope we can meet one day and have a cuppa,
    Cheer with coffee

  4. Seah Avatar
    Seah

    Hi Warren Very informstive article. I m from Singapore Hope to open a mini cafe at Bangna or Hua Hin. Looking for partners to start. Hope to meet you up one day Cheers Seah

  5. Jova Avatar
    Jova

    Hi Warren, I am planning to open a cafe in Bangkok and in search of a reliable contractor to build or renovate space, do you have any recommendations?

    1. Warren Avatar

      Hello Jova, I do. I’ll send it to your email Jova****@gmail.com. If you don’t see it check your spam box. Good luck!

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