Starting a Coffee Franchise in Hong Kong

If you are thinking of investing in a franchise in the booming coffee industry in Hong Kong, you’ve come to the right place. Starting your own coffee franchise is a big decision and can certainly be daunting, especially in a competitive market like Hong Kong. In this article, we will focus on the importance of location.

Is the location accessible or visible?

When we speak of locations, the level of foot traffic, accessibility and visibility are important factors to consider. As you can imagine, the more accessible and visible the location is, the higher the rent is. As a beginner entrepreneur, you might not have deep pockets. Choosing somewhere less visible yet still fairly accessible would therefore be more realistic. In other words, you can start by identifying an area that is frequented by your target customers: Are you thinking office workers who work nearby or the younger demographic who doesn’t mind venturing out into a hidden neighbourhood? In any case, you might wish to avoid the main roads and look into the alleys. Alternatively, if the budget is less of a concern, you can consider kiosks in shopping malls and commercial buildings, which are more likely to guarantee a stable foot traffic.

Does it adhere to the licensing requirements?

At the same time, it is critical to ensure that your space is suitable for licensing as a coffee franchise. This means that it has to adhere to:
  • Food and Environmental Hygiene Department’s ‘Health Requirements’,
  • Buildings Department’s ‘Building Safety Requirements’, and
  • Fire Services Department’s ‘Fire Safety Requirements’.

What’s in the neighbourhood?

One more factor to consider is the competition and neighbours in your prospective location. While a little friendly competition is always good, it could be challenging for your franchise in the long run if the area is already saturated with other coffee shops.

If you have just started considering the possibility of owning your own coffee shop in Hong Kong, you might want to research the coffee franchises that interest you, and schedule meetings with those franchisors. You will get a better understanding of the kind of franchise package they have, such as the culture of the franchise and what is included in the franchise fee.

With Hong Kong’s persistent high rent, it can certainly be a headache to find that favourable location for your coffee franchise. That’s why going for a professional coffee shop consultant like Lassana can be immensely helpful for your venture. Don’t hesitate to contact us if you have any questions related to establishing your own coffee franchise in Hong Kong.


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