How to Start a Coffee Shop: Permits, Equipment, and Food Safety

To start a coffee shop, you choose a format and location, write a business plan and register the business, submit your layout for health department plan review, build out with the sinks and equipment the code requires, get a food establishment permit, and pass inspection. Many jurisdictions also expect a certified food protection manager on staff.

People think of coffee shops as low-risk because the main product is a hot drink. Health departments see it differently. Milk is a time and temperature controlled food, ice is food, and pastries and sandwiches bring their own rules. A cafe gets permitted and inspected like any other food establishment, and the buildout is where owners lose the most money when they skip that conversation.

What type of coffee shop are you opening?

Your format drives your permit, your equipment and your food safety risks, so decide it first.

The line between an espresso bar and a full cafe matters. Selling a wrapped pastry from a licensed bakery is a lower-risk activity than making breakfast sandwiches. Many health departments assess risk this way, and it can change your inspection frequency and your fees.

What licenses do you need to open a coffee shop?

Requirements come from your state, county and city. The typical set looks like this.

• Business registration, plus a federal Employer Identification Number if you will hire staff
• Zoning approval and a certificate of occupancy for the space
• Health department plan review, for the layout and equipment, before you build
• A food establishment permit from your local health department
• A sales tax permit in states that tax prepared food and drinks
• Sign and building permits for construction and exterior signage
• Food manager certification for the person in charge, where required
• Food handler cards for staff, in states and counties that require them
• Business insurance, which most landlords require

The U.S. Small Business Administration has a general guide to registering a business and applying for licenses. Our guide to restaurant licenses and permits explains the health department side in more detail, and most of it applies to cafes.

What equipment does a coffee shop need to pass inspection?

The espresso machine gets the attention. The inspector looks at the plumbing.

Handwashing sink. A dedicated handwashing sink, stocked with soap and paper towels or a hand dryer, where baristas can reach it without walking through the dining room. It cannot double as a dump sink for coffee grounds or milk.

Warewashing. A dishwasher approved for commercial use, a three-compartment sink, or both, depending on what your plan review requires. The dishwashing and three-compartment sink hub explains the wash, rinse and sanitize steps.

Food prep sink. If you wash produce or prepare food, many jurisdictions require a separate prep sink.

Refrigeration with thermometers. Undercounter refrigerators at each bar station keep milk cold during service. Each needs a thermometer you can read. See the thermometers and calibration hub.

Ice machine and backflow protection. Equipment connected to the water supply, including espresso machines and ice machines, typically needs backflow protection. The equipment, water and utilities hub covers why.

Cleanable surfaces. Counters, floors and walls in prep areas must be smooth, durable and easy to clean. The facility design hub covers materials.

Submitting plans before you build lets the health department catch a missing sink while it is still a drawing.

Food safety rules that matter most in a coffee shop

Milk is a TCS food. Dairy supports bacterial growth, so under the FDA Food Code it must be held at 41°F or below. A pitcher left on the counter between rushes is the most common coffee shop violation for a reason. Many shops make it a rule to dump steamed milk left in the pitcher rather than re-steam it later. The TCS foods hub explains which foods count.

Ice is food. Ice that goes into drinks has to be made from safe water and handled with a scoop, never a glass or bare hands. Store the scoop so its handle never touches the ice, either in a clean holder or with the handle sticking out, as your health department directs. Ice machines need regular cleaning to prevent mold and slime.

Pastries and food from an approved source. Food you sell must come from a source the health department approves. A friend's home kitchen is usually not one, even in states with cottage food laws, because many of those laws limit sales to direct-to-consumer. Ask before you stock the case. The approved suppliers hub explains the principle.

Allergens. Coffee shops handle milk, soy, tree nuts in nut milks and syrups, wheat and eggs in pastries, and often sesame. Steam wands and blender jars move allergens from one drink to the next if they are not cleaned between uses. The FDA recognizes nine major food allergens. The food allergens hub covers cross-contact.

Cleaning the equipment. Steam wands need purging and wiping after every drink. Grinders, brewers, blenders and cold brew containers need scheduled cleaning. A written schedule is the heart of a cleaning program.

How much does it cost to open a coffee shop?

There is no reliable national figure. Startup costs depend mostly on your format and the space. A cart costs far less than a full cafe, and a space that was already a restaurant can save a large share of the plumbing and electrical work a raw space would need.

Budget for the lease and deposit, buildout, espresso machine and grinders, refrigeration, ice machine, sinks and plumbing, furniture, point of sale, permits and plan review fees, insurance, initial inventory and staff training. Get local quotes for each. Online estimates rarely say which format or city they assume.

Is owning a coffee shop profitable?

It can be, but no authoritative source publishes coffee shop profit margins, and figures online come from equipment vendors, roasters and consultants. What drives profit is simple to name: rent, labor, drink volume per hour and your ticket size. Food sales can raise ticket size but add risk and labor. Build your numbers from your own quotes and a realistic count of cups per day.

What this means for you

If you are planning a coffee shop: make the health department an early call, before you sign a lease. Ask what plan review needs and what the space will require in sinks and plumbing.

If you will manage the shop: plan on holding a food protection manager certification. Our guide to the certified food protection manager explains who needs one. Cold holding, allergens and cleaning all appear on the ServSafe Manager exam, which passes at 70%, at least 56 of the 80 scored questions.

If you will hire baristas: check whether your state or county requires food handler cards. Our free Food Handler track covers what they need to know.

Frequently asked questions

How much does it cost to start a coffee shop?

No reliable national figure exists, because costs depend on format and location. A coffee cart costs far less than a full cafe, and taking over a former restaurant can save on plumbing and electrical work. Get local quotes for the lease, buildout, equipment, permits and insurance, and check your health department's plan review fees before setting a budget.

Can I open a cafe with no money?

Not with nothing, but you can lower the cost. Some owners start with a cart or kiosk, lease equipment instead of buying it, or take over a space that already has plumbing and a permitted kitchen. Whatever the budget, the shop still has to pass plan review and inspection, so required sinks and refrigeration are not optional.

Is owning a coffee shop profitable?

It can be. No authoritative source publishes coffee shop profit margins, and figures online usually come from vendors. Profit depends on rent, labor, drinks sold per hour and average ticket size. Build a break-even estimate from your own local costs and a realistic daily cup count rather than an industry average without a source.

Do I need a food permit to sell coffee?

Yes, in almost every jurisdiction. Selling coffee and espresso drinks to the public makes you a food establishment, largely because milk is a time and temperature controlled food. You will usually need plan review and a food establishment permit from your local health department before opening, even if you sell no food.

Can I sell homemade pastries in my coffee shop?

Usually not unless they come from an approved source. Food sold in a permitted establishment must come from a supplier the health department approves, typically a licensed commercial kitchen or bakery. Cottage food laws in many states cover direct sales to consumers, not wholesale to a cafe. Check your state's rules and ask your health department.

Do baristas need a food handler card?

It depends on your state and county. Some states require food handler training for most food employees, and others leave it to the employer. Baristas handle milk, ice and ready-to-eat food, so training is worth doing even where it is not required. Check your local health department's rules before your first hire.

Managing the shop yourself? The ServSafe Manager track covers cold holding, allergens and every other topic on the certification exam.

Sources

• FDA Food Code 2022, including cold holding, approved source and ice handling requirements
• FDA: FDA Food Code overview, how states and localities adopt the Food Code
• FDA: Food Allergies, the nine major food allergens
• CDC: Food Safety, foodborne illness and its common causes
• ServSafe Manager, the food protection manager certification
• ServSafe Food Handler, the food handler program
• U.S. Small Business Administration: Apply for licenses and permits