Last updated on June 7th, 2024 at 10:12 am
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.
There’s a lot of information to unpack in this post. And the café business in Thailand, particularly in a big city like Bangkok is extremely competitive.
The business environment is very different today. It all comes down to how cool your brand is. And how well you treat people.
Is it Cheap to Start and Run a Cafe Business in Thailand?
I originally published this post 10 years ago. Since then I’ve been updating this post as time went by.
Everyone wants to know if it is cheap to start a coffee business.
It never was cheap. I understand cheap is a subjective term, however.
I rather say it’s affordable when you compare it to your home country. For instance, I’m from New York City where everything is overpriced.
So in Thailand, opening a café business is indeed affordable. And as of writing it still is at least to a certain degree.
But for me, the bigger question is can it generate income? I’ll talk more about that below.
What About Registering a Coffee Business in Thailand
The easiest way to register a small business in Thailand is with a Thai partner. For me, my partner is my wife who is a Thai national.
However, registering a business under your Thai spouse, girlfriend, or boyfriend by this method means you are not legally attached café business.
I am sure most of you reading this most likely have a good relationship with a Thai partner. Am I right?
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.
If you want your name legally attached to a coffee business or any business in Thailand you need to register a company.
Which would involve these 3 key details:
- 2 million Baht running capital
- 51% Thai ownership
- Minimum 4 Thai employees
There’s more to it but those are the primary details. To keep this post from getting too long you should seek the advice of law firms or even accountants in Thailand. A quick search on Google will yield a list of Thai firms providing Thai company registration.
Now let’s get to the bottom of the beans!
What is The MOST Important Aspect of a Coffee Business in Thailand – It’s Not What You Think
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 fine selection of coffee beans from Thailand and around the world provides an amazing experience to your prospective coffee addicts.
BUT what if I told you high-quality equipment and amazing-tasting coffee beans are not the most important factors?
Even though I have not owned a café business for nearly a decade I still follow Thailand’s coffee culture. And I have close local friends within the coffee industry.
And I learned that the secret sauce today is not just great coffee.
You might think I’m crazy. But hear me out.
Pictures and (Videos) are Worth a Thousand Words
The old saying is the best form of advertisement comes from word of mouth. Whether you have a small or big cafe advertisement is important. This is especially true during the first 3 months of opening.
Because you want to build up as much cash flow as possible to sustain and grow your business from the get-go.
Today advertising is easy and affordable through Social Media and Google Maps. But if your paid advertisements aren’t enough to motivate customers to your doors it could end up costly. I know from first-hand experience. Many times the ads I paid for did not get the results I wanted.
Word of Mouth from Customers is THE Single Best FREE Advertisement
Out of everything you will learn from this blog, what you will read next will shock you.
Excellent, amazing-tasting coffee is NOT the number one priority. Of course, your coffee should taste good. I am not at all suggesting you stock cheap coffee.
Having great coffee alone is not enough to get customers to spread the news about your café.
You need to create a beautiful café space and have people snapping selfies left and right holding your coffee.
A trendy Instagram-worthy comfortable space, great coffee, and friendly service are crucial to success.
The Power of Social Influencers
Having a nice-looking café space will attract social media influencers. You don’t have to pay them a penny. If you build a trendy place for them to take selfies or post videos to their followers they will come. That’s what they do after all.
Today there are so many social media influencers, especially in Thailand. It’s a whole new job sector for young Thais as well as foreign tourists. Let them spread the news about your café.
You usually do not need to ask for people to share your café through Tik Tok they’ll do it if your space is nice enough. So plenty of natural lighting, and aesthetic pleasing to the eye ambiance like warm undertones with a minimalistic look works well.
Or you can just go all out quirky living room feel. One example of that is Sunny Bear Café. I like to use them as an example because are not in a particularly heavy foot traffic location. But they are located in a residential area and people walk there because it’s a cute coffee shop. Most importantly their coffee is good.
I’m not a social media influencer, but I am an active Google business reviewer and millions of people do the same. Make your café business stand out in all aspects and the 5-star reviews drives in more customers
Location is everything, no doubt about it. But 90% of it is all about perception. Design your café to look as cool as possible.
Café Business was Tougher Back Then
I had a little café business in Bangkok for more than a few years. That time I didn’t take advantage of the burgeoning social media exposure.
Nor did I understand the importance of a beautiful café space. I was focused solely on providing the best coffee for my customers. I would bring roasted coffee beans back from Vietnam, Indonesia, and Malaysia.
I didn’t even register for Google Maps!
Take advantage of social media platforms. Make posts as often as possible. There’s no excuse to.
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 at the end of the day.
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.
You must take a good look at your target demographics. Are they able to afford your coffee? One way to do that is to check out how much your nearby competitors charge. And do not charge too low thinking that’s what it takes to get them to spend money at your café instead.
Because at the end of the day, the most important thing is you want to turn a profit.
Only cafés like Starbucks or other international coffee house chains could get away with charging a cup of coffee for a premium price.
Spending over 150 Baht for coffee is an amazing feat. They’ve still got customers lined up through the door. Starbucks is easily one of the most popular cafés in Thailand. If they can convince locals to spend that amount on their coffee then you’ve got stiff competition.
See, I told you it won’t be easy.
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 necessities 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.
DO NOT rent a space just because the location is very affordable. What’s the point if there are no people walking by? I know many people make this mistake and have lost their hard-earned money.
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.
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
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 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.
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 Coffee, Coffee 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.
The bottom line is that 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 45B, 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.
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.
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 can provide warranty service for repairs.
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 repairs.
Which can be expensive.
The 7-Eleven Hack
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 and not the repair company.
Do you get the idea? You might have to slip a 100THB note, just a little bit of cash or you might not.
Every 7-Eleven is contracted with a company to repair their 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.
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.
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.
The key to attracting customers is a well-designed café space. Minimal designs work well for large spaces. A quirky design for a smaller café would probably work better.
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.
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
- 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.
- 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.
- **Set a penalty fee if construction passes the date of business opening.
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.
Paying the Contractors
For small businesses when starting a construction project contractors request payments in three phases:
- First payment for initial construction start: 50%
- Second payment when half of the construction is done: 40%
- 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.
Because designing a trendy coffee shop is essential today for attracting customers.
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.
It will be very difficult to find experienced baristas. Most if not all of the best professionals either have their own cafés or work for a corporate coffee chain with a high salary. It is common for new independent cafés to train novice baristas on location.
Sorting Out the Go-Getters
You are not going to find experienced baristas. You will have to find one to train your staff. Usually, the shop that sold you the espresso machine will teach you.
That said, get ready to put on your learning cap. As a café owner, you can’t just rely on your staff. You must learn the craft as well.
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.
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.
Invest in Learning the Art of Latté Art
When you show your coffee customers you can make cute animals and flowers with foamed milk they will go crazy. But seriously if you or your barista can make latté art it just pushes your café up another level or two.
Even though in Thailand people prefer iced coffees because it’s hot in Thailand you should still learn how to do it. You can learn for free on YouTube especially if you have your espresso machine. But you will be wasting a lot of milk. However, you can practice on hot cocoa instead of wasting pricier coffee beans.
But if you want a hands-on learning experience there are schools in Bangkok but it’s not cheap.
If you can afford it I highly recommend learning latté art. Once you master it your coffee customers will recognize you as a professional barista.
Plus you can create a YouTube channel and just make latté art videos. Those video types rack up a lot of views.
To Sum it All Up – Advice for a Successful Café Business in Thailand:
- Take full advantage of social media. Instagram, Facebook, Tik Tok, YouTube etc.
- Get a location in a high-traffic area. I know this is a no-brainer. But trust me on this.
- Have the best café design you can afford.
- Have plenty of space. As big as you can afford.
- In the coffee business, food is a must on the menu.
- Carry organic coffee. It costs more but people are willing to pay.
- Offer a wide variety of coffee beans to your customers.
- Do not buy coffee franchises. No matter how cheap or enticing their business structure looks.
- Hire the best people you can afford. Nice people, polite people.
I Do Not Recommend Buying Thai Coffee Franchises… Unless…
That’s just me. I would not buy a Thai coffee franchise because I would 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 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.
Small coffee franchises are the best option if you truly want a business-in-a-box model. A good small Thai coffee franchise grows its beans and has its batch roast raw beans to perfection. While also providing the know-how from coffee recipes to espresso machine repair and coffee supplies.
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.
Good luck with your coffee business venture! If you have any questions please leave a comment below.
It all comes down to how cool your brand is. And how you treat people.
112 responses to “Opening a Coffee Shop in Thailand”
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Hi warren,
I stumbled on to your blog while reading articles on how to run a restaurant. I really enjoyed reading this article that you have written. It is detailed and filled with pictures. Very very inspiring and informational. I hope to hear from you soon. Take care.
Regards
Marcus-
Hello Marcus, thank you! It means a lot to hear some feedback from readers such as yourself!
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Hi Warren,
My Thai wife and I are planning to start a coffee bar in Thailand. Now we are looking for some designers and/or constructors to build our place. I would appreciate it if yo could help us with some contact info. Thanks, best regards, Peter & Nok
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What’s up Peter? I knew a few contractors depending on your budget. One can do a fairly decent job for a decent price. The other does construction work for Starbucks. Would you like me to send the contact info to your email?
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Hi, Warren.
I would like to have the same information that Peter would need. It will be thankful if you share it with me as well. Chris..-
Hello there Chris! Who’s Peter?
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He means Nok above with regards to the designer/construction.
I too would appreciate the information.
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Hi Warren,
How are you? I myself am looking to open a cafe in Bangkok. Can we get in touch as I would like to find out more about your experience. Thanks – Jen
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Hi Jen how are you? Sure, I’d be more than happy to hear your exciting venture! What’s the best way to get in touch?
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Hi, I have coffee shop space in a good area in Sukhumvit, am considering operating or renting it out and welcome your advice.
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Hi Kanin, which part of Sukhumvit? Could have potential if you’re located along the BTS line or high end condos and apartments.
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One things I think Thais do need is an A/C room?
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Yes! A/C is a must! Not even for the customers but for me also =) Though having some outdoor space would be nice as well. Thailand’s temperature can be quite pleasant during evenings, especially late November through late February,
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Hey there! How much does it cost to rent a coffee shop in Bangkok that has a good location? (e.g. next to a new BTS Sky Train)
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Hello! Good location meaning high foot traffic, front of soi, near BTS Sky Train I’m going to assume a minimum of 60,000THB. I wouldn’t rent a shop too deep in a soi where rent is cheaper.
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Hi Warren,
How are you? I read your article and I find it very interesting. Do you think we can get in touch? I’m thinking Thailand is a good place to invest and I would like to have more information. cheers Avraam
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Hi Avraam, how are you? you can get in touch with me right here. Invest is a very broad term my friend. What you have in mind?
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Hi Warren, hope you are doing well. Do you have time these days to talk on Skype?
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Hello again Avraam, sorry I didn’t have the chance to chat with you. To be honest I don’t think I can help you much further as I am not in the restaurant business. I recommend searching for someone who can provide legal and professional services in Bangkok to help you with your venture. Best of luck and do let me know when you get your business up and running =) Cheers!
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I really enjoyed reading this, I have been thinking about going into the coffee business and you have opened my eyes. Any advice would be appreciated. Thanks
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Hello Gavin, it’s a good business to run and enjoy. Biggest advice is of course location. The better it is the better your chance for success.
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Hi Warren, how are you? I’m considering opening a very small business selling food and beverages possibly from a stall or food van. Not sure if I’ll sell alcoholic beverages as yet. I don’t have much knowledge of Thai business law so have a few questions if you wouldn’t mind answering.
Do you know if I would have to pay for a specific spot to conduct business say on the pathway near or on the beach?
Do I need a minimum amount of cash in a Thai bank account?
Do I need to employ a certain amount of Thai people?
Also is talking to a legal team like Siam Legal to help with paper work etc a must do or is it quite straight forward to do on my own to save on expenses?
Thank you for your time.-
I’m fine Gary, hope all is well with you! Yes on paying rent for a spot on pathway near beach. Though some beaches allow sale of food and some don’t. You’ll have to speak with local police precinct regarding rent. Also, do you have a reliable Thai partner? Let them do the talking.
If small business and you have a reliable Thai partner the answer is no you won’t need a Thai bank account. If you’re own your own then yes you will because legally as a foreigner you’re required to register your business and have a few million Baht in an account. You’ll also be required to have a Thai partner. If you’re an American citizen you can own 100%. Yes you will need to have Thai employees.
If you want to register your business with your name on it yes I highly recommend getting a reliable Thai lawyer. The lawyer fees are hefty but you’ll save yourself a lot of headache.
The easiest route, which 95% (not a scientific estimate) of foreigners owning businesses in Thailand do is to register a business under a Thai partner (girlfriend or wife).
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Hello, Warren! Very interesting and useful information, thank you!
I’m planing to open sweet drinks shop/bakery, with my thai girlfriend of course.
And I really like your idea about townhouse (3 floors). How do you thing gonna cost all equipment for making drinks? (Not just coffe, but thai tea, and many other kinds. Planing to sell it just for middle lvl thai people) And what can you suggest in this case?-
Hi Alex. So there are many prices for espresso machines. Some are as cheap as 30,000THB and are usually not commercial grade. If you’re looking to be in a medium to high traffic area you need a 2 group espresso machine and the good ones cost at least 250,000THB brand new. Then you’ll need a good espresso bean grinder which could go for around 35,000THB.
Then you’ll need a very good blender for fraps. Commercial grade blenders could go around 60,000THB. Remember to also purchase a sound proof cover for the blender because it is noisy. Thai tea you don’t really need any extra equipment because you can use the espresso machine to make Thai tea. That’s what we did and it turned out just fine.
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Hey,
I am exploring to open up a venture in BKK. So doing up the maths now.
I would like to find out more on the renovation cost on your set up. And is this a typical renovation price range? Assuming you started from scratch.
Appreciate your sharing!-
Hi Zul, renovation prices are never typical. Because every shop size and location is different. So there’s really no magic bullet figure or formula. I’ve had several coffee shops previously, the first I spent about 750,000THB for equipment, shop design, build and 2 months deposit for rent. Second shop I spent 125,000THB total. Good luck Zul, if you have any other questions let me know. Cheers!
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Great blog warren!
I’m considering starting up a coffee shop in cnx. Would be good if we could get in touch .
Cheers.
Alan-
Hey Alan, how’s it going? Sure, if you want I’d be happy to hear out your idea. What’s the best way to get in touch with you?
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very helpful for everyone. thanks for sharing info with us
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Hi Warren,
I am married to a Thai citizen and have significant financial backing. Only really interested in opening up Starbucks in prime Bangkok locations but I read they only license. Do you have any knowledge on how best to start this process? Thank you and great article.
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Hey Robert, How’s it going? Okay Starbucks. They don’t franchise. Good news they do license. Bad news is you have to own an airport. Joking aside if you have that amount of cash to invest why not just start your own. I understand with the Starbucks brand you won’t have to worry about attracting customers. If you have the cash to open at a very good location just invest some money into building the shop to look very nice and carry the best beans and desserts and you have a decent chance of success. Most importantly, invest in top notch employees, very important to do so. That’s just my opinion of course. Good luck Robert! If you have any questions do let me know!
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Hi Warren, great blog. Want to open a small shop in Isaan. Me and my Thai wife will have a small budget, so have to go the Thai franchise route. Any thoughts as to who are the good and bad ones? Thanks for your help and best of luck!
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Hi Rick, How’s it going? I really don’t recommend going the franchise route. Because you can really do it all on your own, that’s just my opinion. You can try Chao Doi Coffee if you really feel like buying an affordable coffee franchise. But I’m not endorsing them and I am not familiar with their franchise policy. You can easily find Chao Doi Coffee with a search. Ask your wife to speak to a rep and see if it’s right for you. Let me know how it goes. Cheers!
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Thanks Warren for your quick reply and advice. I guess I was more thinking along the lines of a place that sells equipment and has training. Also, a company like Coffman coffee. If you don’t mind, just a couple of more questions. Would you say the cost of the coffee, cup, ice and milk would be about 20 baht? Do I have to connect directly to a water line for my machine? Last, we probably won’t do big volume daily, but I do know we should have some busy periods, can we get by with a 1 group machine? Thanks again for your help and time.
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Hi Rick, no worries, that’s what I’m here for. The places I mentioned on my blog post will train you or your staff on how to use and maintain the espresso machines. Sorry I don’t have any info on Coffman Coffee franchises or any franchises matter of fact.
To answer your first question regarding milk most importantly is that Thai coffee franchises recipe requires a mix of evaporated and condensed milk. You’ve seen them I’m sure it’s the canned Carnation Brand. Canned evaporated and condensed milks are cheaper than the actual fresh dairy milk. So yes, its possible for the cost of your coffee to be 20THB including carnation mixture, ice, cup, lid and straw. Plus you’ll have to make your own sugar syrup to add to coffee too, which is easy to do, just google it.
If you use fresh dairy milk cost of your cup will be higher. For instance if you’re making a 16oz. iced latte, you’re going to have to fill half of the cup with fresh milk, 8oz or 9oz. before putting adding the shots of espresso and ice.
It is not necessary to connect to a water line, however it will be more convenient. Because if you don’t connect direct to a water line you will have to have like large container below your espresso machine. There is a pump within commercial grade espresso machines that can siphon water from the container. But you you will have to manually refill that water container.
Usually a 1 group espresso machine already has a small reservoir built into the machine so you won’t have to worry about direct water line. But I believe there are 1 group models that you can buy that are able to siphon water from a water container as well which is what I would recommend.
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Hi Warren, awesome and thanks again, but I still need your opinion if I can get by using a 1 group machine. Remember, I won’t be doing a big volume per day, but I do know we will have several very busy short time periods. I see some machines say they can do 60 cups per day. Is that ok?
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Hi Rick, yeah I think one group machine will be fine if you think you won’t be doing a big volume. But if you say you will have busy short periods you have to consider during your short period how long it takes for that particular machine to extract shots. Since I don’t know the exact model of the machine you’re looking into you should ask the seller how fast a shot can be pulled. Because if it’s a smaller machine it could mean less wattage which equals a longer period to heat the water properly for extraction.
Now if you think your customers can wait, then no problem. If not, consider purchasing a one group espresso machine that can heat up the water fast.
I always wondered when I hear a machine can pull 60 cups a day. So what happens when it goes over 60? Will it break down? Probably not lol. I wouldn’t worry about that 60 cup per day. I would worry more about how fast the machine can heat up the water. Because that’s the key element for proper espresso pull so the machine has to have a good thermometer as optimum extraction is at about 90°C.
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Hi Warren
Thank you for all the information. Can you please email me the contact details of the contractors for design off coffee shop.
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Hey Peter, will email the info as soon as I can find it again, I misplaced it somewhere.
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Peter, I sent the info to your email, good luck!
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As always, thanks Warren. A big problem I have is that I don’t trust the suppliers. FYI, I expect to do 30 cups per hour for 3 hours and then very little the rest of the time.
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No problem Rick, if you can sell 90 cups per day consistently that’s actually really good figure for a small coffee shop. I think you mentioned opening a cafe in Isaan and I really don’t think you’re going to have any problem finding a proper supplier of coffee beans, cups etc.
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Hi Warren, I am Leon from Singapore.
I am planning to open up a food store in chiangrai. But I do not have a thai partner. Both my gf and I are Singaporean. Do you recommend to get a thai friend to setup the business under their name. Perhaps giving them some percent return. Or what is the procedure like to set up a business. Would appreciate your advise.-
Hey Leon, How’s it going? This is the hardest step for foreigners that want open a small business in Thailand, and that is legally you have to have a Thai partner owning 51% of the shares. Which means foreigners in a business partnership in Thailand won’t have majority shares. I strongly urge you not to partner with any Thais that you do not know 100%. I am speaking from experience.
My article is particularly geared towards foreigners that have solid relationships with Thai girlfriends, wives, boyfriends etc.
That said, there are legal ways for foreigners to own businesses without Thai partners. It is costlier because you need to pay for a lawyer and their are government regulations and so on. I recommend speaking with a lawyer at https://www.siam-legal.com though I never used their services they are more capable of answering your legal questions. And they do answer questions for free by email.
Good Luck and do let me know how well things turn out!
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Hi there, Warren. Thanks for the great article! My biggest question as I get ready to go this route with my Thai gf is about Thai work permits. How big of an obstacle do you find the work permit situation for yourself as you manage and run your shop? This is my biggest hesitation as I will need to have my hand in the way this shop is run day to day. The requirements as I understand them for a work permit aren’t exactly friendly to a small shop just getting started due to laws about the 4:1 Thai to foreigner employment ratio(not including your Thai business partner). Not to mention the minimum capital requirements.
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Hello Jordan, yeah the tricky part for a small business, the cost and requirements for a work permit is just not worth it. So I never got a work permit yet I managed on the side, and sometimes I would take orders but I let my staff and my Thai wife do most of the work. I was still hands on that way and it worked perfectly fine. Let your Thai staff do bulk of the work.
I too wanted to be hands on and I too was worried about how the coffee would come out etc. which was why I wanted to do all the work. But somewhere along the line you should let your Thai staff do the work you hired them to do.
Like I mentioned elsewhere most foreigners with small business in Thailand have a Thai wife, girlfriend, boyfriend or whatever as the sole owner. Me included and this way I never had to incorporate a business in my name here.
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Dear Warren
Thanks a lot for your valuable information about coffee shop business. I have learned a lot really.
I’m from Bangladesh & planning to start a franchise style business here because coffee shops are getting popular here.
May I request you to advise me how may I start to buy complete necessary equipment & daily usable usable accessories. Brand logo printed cups plate etc.
For the commercial espresso machine. Coffee bean grinder & blender etc I need medium priced range.
Do you think roasted beans are good from Vietnam ?
One more question- if there any facility in Bangkok to obtain practical classes to know how to make good coffee. Bakery etc with mixer juice etc ? Against course fee, so that I may invite my enlisted franchise members to Bangkok to obtain course to run their own shop.
So I would provide them timely basis coffee beans and other stuffs.Thanks Warren.
Regards
Khurshed-
Hello Khurshed, How’s it going? Thank you very much I put in a lot of work on this post, it’s nice to be appreciated. So, most of the questions you’ve asked from sourcing equipment to instructions on how to make coffee and other beverages were already answered on this post. Just go into one of the equipments shops I mentioned on this post, explain to them your needs, and if the prices are right for you, hand them the cash and you’re in business. It’s as simple as that.
If you’re planning on franchising your own coffee company I recommend doing further research on your own as I don’t have any information on this.
Finally, yes, I do believe Vietnam is really good coffee beans =)
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Hi Read your Artical . It was good to have information regarding opening coffee shop (cafe) in Thailand .. I am interested to open one in Phuket or phitsanulok .. can you advice me on this Thanks Regards Rakesh Malhotra
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Hell Rakesh. My advice is get the best location you can get! Good luck!
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Hello Warren. I am looking to open a small coffee shop on a prime location
in Cha Am . As it is not any real good coffee shops there,most is restaurants which serves coffee or bars do the same. I have a location and would like some advice-
Hello, go ahead and ask away, I’m more than happy to offer up advice!
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Hello Warren,
Thanks for sharing this detailed article.
I know this might sound rude, but it would be very helpful to know how much your gross income was? or the net profit?
Much appreciated
Ash
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Hi Ash, at our last cafe we made about 20,000THB per month gross. It was less during the rainy months.
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hello mr Warren thank you for your information.
i would like to start small coffee business with about 20,000 $ so i know this is small money but i want to know is possible to do this business with this money in bangkok ?-
Hello, yes that is a decent amount to start a business in Thailand.
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Hi Warren,
Ive always had a passion for brewing coffee and I have just completed a Barista Professional Training course in Jakarta. I did it there as I always buy my beans from the coffee shop which they roast in house and offer a selection from regional locations.
Im the thought process of opening a coffee bar just outside and agree that location is key.
I agree that you cannot survive with just making coffee. Apart from offering food, I want to o sell coffee beans (or grounded) as a value added to the business. This would be beans from Aceh, Java , Sumatra etc.
In your experience do you think the Thai would accept coffee from Indonesia or are they more patriotic to the local bean ?.
Im not in this to compete with evaporated and condensed milk brigade and not in a position to charge as high as that “bitter” stuff from Starbucks.
Interesting article by the way-
How’s it going Graham? It really depends on the area you want to open. I think if you open near an international office building in the Sukhumvit area you might have a good chance especially because so many expats and long stay foreigners could be potential customers.
My opinion is I don’t think Thais favor Thai beans over Indonesian or Vietnamese etc. I know this sounds kind of silly but they’ll probably care more about your cafe ambiance. If you make your shop instagram photo worthy you’ll attract quite a large segment of paying customers. And yeah I do agree you will have to add some food either savory or dessert. I’m still dying for some sweet martabak.
Don’t get me wrong there are coffee enthusiasts in Bangkok but you’ll have to find a way to advertise and get them to try out your coffee.
As for grounded coffee beans I suggest doing some sort of in cafe demonstration on french press technique. I was interested in this as well seeing more and more locals picking up french press coffee kits. But never really followed through due to other projects I am working on now.
However, I do believe expats and long term stay foreigners might be more in favor of trying your coffee seeing as you’re a foreign business owner offering Indonesian coffee.
To answer your main question I wouldn’t worry about locals being loyal to Thai coffee only.
Good luck and if you have any more questions do let me know and I’ll get back to you as soon as I can.
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Hi Warren I’m Fredy, Indonesian and living in Bandung area. Just browse the coffee and how to make a little coffee shop and find your home page. Thus your writing are so inspired. Sincerely I have to Thank you for your kind sharing. I’m also familiar with Bangkok especially area in Ratchadaphisek and near there just like the crowded sukhumvit and Asok 😊. Yes I note there so many Thai people that make a cofee business there and actually I would like to find about their style lucky me found your article. One thing that I’m notice that you also have a page for Indonesia, if you would like to ask about Indonesia feel free to contact me I will answered it gladly for what I know.
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Hello Fredy, How are you? Sure I will definitely contact when need more info on Indonesian coffee!
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Very generous of you to write such a detailed and informative post, and to freely share your knowledge. Can a foreigner register a small business (the way you mention above and in the linked post?) or must it be in the local partner’s name? What foreigner : local shareholding ratio is permitted? What kind of a work permit must a foreigner have to register a small business? Thank you.
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Hello Dave, how are you? It’s a local partner name. If you’re dealing with shareholder type agreements it’s best you speak with a law firm in Thailand. I am no lawyer or can not directly refer a lawyer to you. If you do a google search you can an international law firm in Bangkok that will answer your legal questions for free. Good luck Dave!
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Hi Warren,
Your in-depth article really helped me on deciding factors. Very close to opening one of my own small cafe in Bangkok. Keep up the good work.
Lastly, may i have your LINE ID or whats app just in case if i need some insights on how to improve the business in the future.Much appreciated 🙂
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Hi Albash, good luck with your new venture! You can contact me right here and I will do my best to answer questions about coffee business. If I shared my LINE ID here I’ll probably get hit with many spam messages. Cheers!
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Great article! Very helpful. Regarding equipment, I would say the best choice for sure is Expobar since it more or less never breaks down and then of course the price which is outstanding. I´ve been using their 1 Group, 2 Group and 3 Group for a long time.
Warren, what is your view on pricing for standard coffee drinks? Do you have the same view as me, that people in Thailand in general are more willing to pay those extra bahts for great in-cup quality?
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There are lots of mistakes in your article. Especially as far as prices of equipment is concerned. And best place to buy
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Hello Phil! How’s it going? Be mighty helpful if you can point out the errors, cheers!
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Hello Warren,
Your article sharing was really helped me lot on deciding factors. Planning opening one of my own small cafe in Bangkok.
Lastly, may i have your whats app just for contact up if i need some insights on how to improve the business in the future.
Thank You.-
How you doing Nigel? When the time is right just shoot me an email. Don’t want to put up my whats app contact on this here interweb =)
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Yo bro , i need your e-mail address? thank you ^^”
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Hello again Nigel! No problem at all, if you scroll all the way down on this website you will see a contact page. You can contact me directly from there. Cheers!
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hi warren i am thinking of opening a coffee shop near to chiang mai university with my partner of 15 years.her daughter will be a professor there next year. have you any tips for attracting students in particular. will try to keep prices reasonable as students dont always have a large budget. i think your bakery idea is very good and depending on costs may also start noodle bar nearby. i dont have a website yet but my stepdaughter says she can design one and maybe another member of her family can become involved. any approximate estimates to what this would cost renting a place for first 6 months with option to buy. wil purchase all furniture and kitchen equpment myself in bangkok. i am planning on making 2 or 3 visits before making any concrete decisions. thanks pete uk
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Greetings Peter! I’ll answer the easy questions first =) Okay, so you want to attract university students. The key is to have the best cafe shop design you can afford. Take advantage of Chiang Mai’s natural environment by incorporating an outdoor setting if possible. Lots of young (and old) Thais love to take pictures and post them on social media. Which will create more buzz about your cafe and bring in more customers that see you on Facebook or Instagram.
You don’t need to have an extensive bakery menu. Chocolate brownies and Japanese toast varieties will do well and not difficult to make. Yes noodle bar will work too. Even in Bangkok they have these restaurants serving very small portions of boat noodles for 15 baht. But because the bowls are so small customers usually buy more than one bowl.
I really don’t know anything about the rental spaces in Chiang Mai. But if you’re near a university it helps. But is there direct foot traffic from the university to your proposed cafe location? Best to look for a space on a main road near an intersection with traffic lights too if possible.
Finally, you may not have to buy equipment or coffee beans if you’re in Chiang Mai already Pete. The past few years the coffee industry in Chiang Mai is increasing. So do check for coffee machines in your local area first before deciding on coming down to Bangkok. You definitly don’t need to buy coffee beans in Bangkok is Chiang Mai is Thailand’s coffee bean capital.
Keep in touch and let me know if you’ve got anymore questions. Good luck!
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Hi Mate,
This is wealth of information! Thanks a lot for your wonderful selfless service! I have been contemplating with the idea of setting up a coffee shop in Bangkok (I am a coffee connoisseur!). After googling so much yours is the one that has been so informative, crisp and to the point. Will visit JJ Mall and explore a bit. Hope you don’t mind if I bother you with more questions in future! Thanks once again. Have a nice day! cheers-
Hello Sam, glad I could help out. Go ahead and bother me as much as you want =) Cheers!
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I live North East Thailand village outside of Udon Thani. My wife has strayed a village style our food thia food restaurant and is doing real well. I want to add coffee shop. We live in a farmers village and wondering what you. Think of the idea. She opens early morning to late evening because you village lives here cooking natural Thai food recipes and jungle food recipes. I think the coffee will go good with the restaurant. And build on with other shops in the future. The area is growing every year. And all of our properties are on. Are land sort of a strip mall idea.
Thanks for your time
Mark & Suchada🇹🇭🌴 -
Warren – Very generous of you to share all this great information. I’m not looking at a coffee shop/cafe myself, but I have to evaluate several proposals that the business director for the organization where I work has obtained because she wants to put a coffee shop inside the organization’s offices. I had already done some research, but this detailed blog posting you wrote really fills out the background information. I was already questioning some the proposals submitted by smaller Thai coffee franchisers. Having comments from someone who has been in the business and is looking to get back into it in spite of the challenges was a great help in understanding the cafe operations issues that were causing me to be concerned. Other than the outrageously optimistic pro forma’s that the franchisers were pushing to support their proposals.
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Hi, Warren,
Your article has replied a lot of questions I was wondering about our newly born project of opening a small coffee shop/bakery in Bangkok. Thanks a lot! But here’s another question you might be able to answer for me: do you know if alcohol can be served in coffee shops? or do you need a special license? (how about Irish coffee for example? or what if I wanted to serve draft beer?). Thanks for your time and keep up the great work -
Hello Warren,
I absolutely loved your article, very helpful and I needed the most at this moment. I will save this page and read it later again, like i said, its very helpful. Thank you! -
Such a nice article/blog..really appreciate
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Hi Warren, I really appreciate your brilliant article and thank you very much but my question is that, How can I start the business and open a coffee shop without funds or insufficient money?
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Hello Ibrahim, you will have to figure your question out on your own. Take care and good luck!
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Hi Warren. This was very helpful and useful information you shared, and well written too. Thank you. I am thinking of investing into a small business in Bangkok, opening a small coffee shop offering healthy snacks and food options. Do you think this attracts Thai customers ?
To open up a business, does one solely need to be married to a Thai national or have a Thai partner under whom the business will be named? Is there any other way for a foreigner moving to Thailand to open up a business, without having a Thai partner (married or concubine), but have a friend instead, or no one for that matter?
Were you able to change location and what is the name of your new coffee shop?
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Yes I do believe Thais would be interested in a coffee shop offering healthy alternatives, especially super foods. I’d open up near a gym or fitness center if possible.
You don’t need to marry a Thai to start a business. You just have to have a trustworthy Thai partner, doesn’t matter if it’s a Thai girlfriend or best friend. How you find one I can’t help you with that one.
If you are not an American citizen then sorry to say it will be nearly impossible to start a company in Thailand that is yours 100%. I say nearly because, well, it’s Thailand. There are most likely loopholes. But you’ll need a Thai law firm to assist you.
No, no coffee shop as of yet. Currently I am busy working on other projects with my wife. I will update though if I find a suitable location.
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Hi Warren,
Interesting. I am about open a coffee shop in Phuket.
Few questions here:
You mentioned that the coffee shop design is highly important. I also agree on that. But to get it design perfectly, are you using a designer consultant, company or improvising by yourself?
I actually find a location that look good. Rental is very affordable and no much work to do inside (except design). The shop will be setup through my wife only (Thai).-
Hi JP, yeah because Thais love to visit coffee shops and take selfies and all that. Which is one a good design will bring in customers.
Usually, a contractor will have in-house designers. I do not recommend hiring a contractor and a separate designer. That’s asking for trouble and I am speaking from experience. It’ll end up costing you more too.
Be sure to interview contractors. Ask them if they can provide you any sample construction plans for coffee shops that they have previously designed. Also go take a look at shop that they’ve constructed. Check with at least three construction companies.
Also, speaking from experience. I’ve never had any smooth sailing with construction contractors. So be sure to be on top of them. Don’t be a hard ass too because that’ll just complicate things.
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Hi Warren,
Very helpful notes, can you advise is it easy to obtain license to operate a cafe in Bangkok? Having a start-up of 250,00THB will it be reasonable?-
Sam, sorry for late reply. As long as you have a Thai partner, which in most case most foreigners in Thailand have a Thai wife, Thai husband, etc it is easy to open a business. No license required. It is very easy to open a small food based business in Thailand. Food and safety inspectors are virtually non-existent in Thailand.
From your email address I can see you’re from Singapore. And in Singapore there are stringent health checks regarding food. Not so much here in Thailand. However, as you know already you just have to make sure your shop is clean as can be.
250,000B is a good amount, depending on the size of location of shop. If you want to open in a busy area like Sukhumvit or Silom business district you’ll need double if not triple the amount.
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Hi Warren,
Your article was really inspiring. Thank you for sharing your knowledge with the rest of us!
My girlfriend and her family are also planning on opening a cafe shop near Pattaya. And since we are going to Bangkok next week, I was wondering if we could get in touch to learn more about your experience?
Kind regards,
Patrick-
Hello Patrick, sure you can send me an email from my contact page.
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Howdy,
It is good article on what you written about operating the coffee shop. However, one thing that you left out is the average cost for starting your own cafe in ballpark figures. That is one of the most difficult aspect of trying to figure out what it would take to start the coffee shop, that is located in nice location with good seating and ambience environment, along with list of equipment.
So from your experience and looking to start another, what is your ballpark figure for setting up your ideal shop? I been working on the business plan to model the income and expenses for running the cafe and the startup costs and operating costs on daily, weekly and monthly basis.
It would be great if you can provide some details and you can contact me directly by email. Thanks!
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Hi Russel, how are you? It’s really difficult to come up with a ballpark figure. There really isn’t a one size fits all scenario. Some rental agreements require 3 month security deposits, some 6 month. If you’re the sole owner on paper your startup cost will be higher due to foreign business registration. While if open under a Thai spouse you wouldn’t need worry about that extra cost.
Though speaking from experience opening cafes and other businesses here in Bangkok, I’ve always had to exceed my budget 20% and as high as 35%.
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[…] inside a local coffee shop with an incredibly super friendly café owner. I wrote an article about opening coffee shops in Thailand and this owner has the perfect location. You can enjoy a drink while waiting for the train to come […]
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Hi, have a guesthouse and thinking of coffee. Would appreciate advice
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Hey Gary, yeah I think serving coffee is going to add some extra income. So you should go for it.
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Greetings,
Is it true you can’t work in your own cafe?-
Hi Alvin, the answer is yes and no. Yes you can work as long as you have a work permit. That said, I know there are many foreign shop owners that do hands on work in their businesses and don’t have work permits. But that’s because it’s a small business so they can fly under the radar.
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Thank you very much for this extremely informative article. It is something I have been looking for for a while now and was very pleased to have found your post. It looks like, when done right, coffee shop can but a decent business opportunity. Probably not something that will allow you to quit your job but definitely something that can supplement your income. Thank you once again for this very informative article.
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Yes Marcin, coffee shop business is very competitive in Thailand. And depending on the location you can’t really charge as high as Starbucks can. I mean, if you get really lucky it is possible to quit your day job I suppose. Anything is possible =) I answered your email by the way. Thanks for dropping a comment.
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Hi Warren , May i have your email please . Would like some advices from you please .
Thank You-
Hi Maxx, I just sent you my email address. If I send you an email there’s likely chance it’ll end up in your spam box.
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Hello , first of All thanks for the informative website , you mentioned to know some good contractors for decorating and building a shop and that would help me alot becouse i’am thinking to open a shop in Bangkok , thanks for your Time ,
Joeri-
Hi, it’s best to shoot me an email on my contact page. I’ll send you his detail from there.
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