The process of opening a coffee shop is actually very straightforward. The reason why most coffee shops fail is because of lack of planning. The marketplace has becoming very competitive in the past few years. So, you need to do research on various methods to differentiate yourself from the existing coffee shops in town. There are basically three methods you can do so. You can differentiate your coffee shop in terms of quality, experience and price.

The first type is quality differentiation. You make your coffee shop stand out by offering quality products. This is a good way to convert existing customers into fans and also attract new customers to come. For ths to be effective, you need rigorous quality control at every step of the business.
That means from checking the sources of your products to managing the systems, motivating the staffs and right down to the equipment you use.

To be perceived to be unique, you need to offer good quality products. To achieve that, you need to survey your customers to find out what they want and ensure that none of your competitors are offering the same products. Research is very crucial to success. It is even better if you are able to invent your unique products so that no one can copy you.

Next, the model for experience differentiation works well for customers looking for unique experience. There are a lot of customers looking for a place they can relax and have a good time with. The food is not that important compared with the unique experience. Some coffee shops offer some merchandise for the customers to buy while they are enjoying their cup of coffee. To create an unique environment, you must be willing to invest in the beginning.

The last type if price differentiation. As you reach lower and lower prices for a basic cup of coffee, your shop can tap in to a much larger market by converting users who would making their own coffee. However, once you shoot to be one of the lowest price coffee shops in your neighborhood, it can be difficult to find other ways to distance yourself from the pack.

When you are competing based on price, there is not much profit left for other marketing efforts. It is only a short term measure to capture market share until you have enough funds to create other unique selling propositions. It can also work if you are tight fisted about your expenses and still have a lot left for branding.