I’m excited to be able to invite all of our readers to come by the Aizai Cafe starting this Friday. We’re still doing some training and won’t have our full food menu ready, but we will be serving coffee, tea, frappes and a few food items. Come by this Friday or Saturday 11am-11pm. Our current hours are Monday through Thursday 10am-9pm and Friday/Saturday 10am-11pm, but if you’re looking to connect in person with me, I’ll be there on Mondays all day, Tuesday/Thursday afternoons and evenings, Wednesday mornings, Fridays till about 5pm, and most of the day on Saturdays. Here’s a coupon for Middle Kingdom readers that’s good through the end of June. Right-click, Save As, then print it off.
I’m not going to pretend that I know everything that it takes to start a cafe here (yet), but I did want to write about the process as we walk through it. There are going to be unique challenges to doing business anywhere, but I feel like the challenges of China are uniquer (real word?) than most. One of the big challenges is that most Chinese people don’t like the taste of coffee. We have a lot of things going for us, though, like the fact that, while there are lots of “coffee shops” (the quotes are necessary) in Beijing, most of them serve terrible coffee.
So what does it take to start a coffee shop in Beijing?
1. Money. I’ve talked to several other people who have been thinking about opening a coffee shop, and I would say you need at least ¥500,000 to start, more if it’s in a high-rent area.
2. Location. Obviously one of the most important things for a coffee shop is a great location. We expect our location to be a bit slow at first, but it’s in a cool complex and there is supposed to be a subway stop going in on our corner within a year or two.
3. Name registration. You need to register a unique Chinese name. Our Chinese name is 爱在路上 (ai zai lu shang) which means “love is on the way” or “I love being on the road.” It’s intentionally ambiguous; it makes it poetic. It took us about 3 weeks to get our business registered. Since the owner is Chinese, this was quicker than if it had been a foreign-owned business; that’s a whole different can of worms.
4. Multiple inspections. You’ll need to pass fire-safety pre-inspection, possibly a building management inspection, a second fire inspection, a sanitation inspection, and environmental inspection. They all have to be done in the right order. Each one of these inspections probably takes two weeks on average.
5. Renovations. We put about ¥150,000 into renovations. The space was just cement walls and exposed ducts and vents when we started. We spent another ¥20,000 on furniture. We also put in a lofted second level so that pushed our costs up. We have a very small space (52 sq/m downstairs and about 40 sq/m upstairs)
6. Espresso machine and other equipment. We will be using my espresso machine which would normally be a ¥30,000 or more investment. The rest of the equipment cost about another ¥30,000.
7. Business registration. After all of the inspections are done you can finally apply for a business license that will allow you to issue official receipts and install the point of sale system.
8. Other considerations. Since this is a Chinese business it was a quicker, easier process. If I as a foreigner wanted to open a business it would require opening a wholly foreign owned entity (WFOE). The Chinese partner also owns the space, so we have flexibility on rent. We have also set aside about ¥100,000 to cover 3 months initial operational costs. Since I have expertise in the coffee I’m doing all the training and recipe creation. If you don’t know anything about coffee you’ll need to pay someone for that. Finally, there can be a fair bit of corruption connected to the restaurant and small business set-up and registration process. Under-the-table transactions have been known to occur and likely grease the wheels of a business start-up, but I don’t suggest engaging in that.
Obviously not a complete list, but it’s a start. Hope to see you at the Aizai Cafe sometime soon.
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{ 7 comments… read them below or add one }
Congrats! Finally ! I’ve already followed your instruction and got the coupon printed out. Can’t wait to try it. BTW, there is a popular website where everyone could give comments to shops, cafes, restaurants etc. I added Aizai on to it days ago. I’ve got a first comment this Monday. Really good comment!
Ask: I paid a visit to Aizai Cafe last night after dinner around 22. But I didn’t find it. Saw some Chinese restaurant, BBQ place and a coffee Lin or something. Where are you?
Well we just got the sign up this morning, you were in the right place. It’s around to the left of Coffeeling and SPR.
Can I make a couple of suggestions for the menu please? Add 2 Antipodean items, and Aussies and Kiwis would like it.
Flat white coffee, and vegemite sandwich (do spread it over buttered toast, though).
I will seriously consider adding flat white to the menu (although technically it’s just a properly made latte as opposed to a bucket of milk with a shot of espresso in it), but I’m not sure about the vegemite. Can you get vegemite easily in Beijing?
Yes, Jenny Lou’s and April Gourmet regularly have stock. And also the supermarket at Solana.
http://www.jennylou.com.cn/index.php?main_page=product_info&cPath=291_301&products_id=84