Open a café

Opening a Café: Requirements, Legal Obligations, and Success Factors

Opening your own Café is a dream for many – but between the idea and execution lie numerous challenges that must be carefully planned and considered. In addition to creative concepts and the right location, legal prerequisites play a major role. This article provides an overview of the most important steps and requirements to keep in mind in order to successfully and legally open your café.

1. Personal Requirements

While you do not need a special qualification to open a café, experience in the hospitality industry or in service is a significant advantage. Additionally, you should have knowledge in areas such as Personnel Management, Business Administration, and Customer Service, as you will need to not only prepare coffee but also manage a small business.

If you do not possess the necessary competencies, you can prepare yourself through Further Education and Training in the relevant areas. High resilience and communication skills are also essential to meet the daily demands of the hospitality industry.

2. Legal Requirements

The hospitality industry is heavily regulated by law. To open a café, you must meet a number of legal and bureaucratic requirements:

2.1 Business Registration

• You must register your business with the relevant business registration office

• The costs for this vary by region but usually amount to up to 40 Euros

• The business registration office automatically informs the tax office and the Chamber of Industry and Commerce (IHK) about your registration

2.2 License for Serving Alcohol (Concession)

• If you offer alcoholic beverages, you need a License for Serving Alcohol according to § 2 of the GastG

• The costs for this license can range regionally between 50 and 400 Euros

To apply for the license for serving alcohol, you must present the following documents:

• Police Clearance Certificate

• No Objection Certificate from the Tax Office

• Certification from the Health Department for Initial Instruction (no older than three months)

• Proof of Instruction from the IHK regarding food law provisions and hygiene (costs: around 50 Euros)

• Lease or rental agreement for your premises

• Location and floor plans of the café

2.3 Special Regulations for Outdoor Gastronomy

• For outdoor seating, you need an extended license for serving alcohol and a special usage permit

• These permits incur additional costs (three- to four-figure sums)

• If you plan extensive outdoor seating, a building permit may also be required

2.4 GEMA License

• If you play music or broadcast television programs, you must register with GEMA and pay fees

2.5 Cash Register System

• Your cash register system must comply with the regulations of the cash register security regulation and be registered with the tax office

3. Hygiene Training and Infection Protection

As an operator of a hospitality business, you are required to complete industry-specific training:

• Initial Instruction according to the Infection Protection Act: This training must be completed at the health department

• Hygiene Instruction at the IHK: Here, you will learn about the legal requirements for food safety and hygiene

These certificates must not be older than three months at the time of your café registration.

4. Location and Business Concept

The location of your café and a well-thought-out business concept are crucial for success. Keep in mind the magic triangle:

1. Business Idea: What sets your café apart from the competition?

2. Target Group: Who do you want to attract?

3. Location: Is the location attractive for your target group, and is there enough foot traffic?

A modern café in a senior residential area or a high-priced concept in a student city – such contradictions can jeopardise success. Therefore, analyse your environment, infrastructure, and competitive situation carefully.

5. Financing and Business Plan

Opening a café is costly. In addition to rent and renovation costs, there are also expenses for furniture, equipment, dishes, and supplies. Most founders need external capital to finance their project.

A realistic Business Plan is essential to convince lenders or investors. This should include the following:

• Your business idea and target group

• Planned revenues and costs (e.g., rent, product costs, personnel)

• Financing needs and planned sources of income

• Calculation of living costs

Tip: Plan financial reserves from the outset to bridge periods of low sales. Many cafés fail due to unrealistic expectations or a lack of reserves.

6. Permits for Renovations

If you want to make larger renovations or changes to the room layout, you may need additional permits. Consult the relevant authorities early on for this.

7. Additional Offers and Event Planning

To increase your revenue, you can incorporate additional offers into your concept. Some suggestions include: 

• Rental for evening events

• Readings, movie nights, or small concerts

• Takeaway sales of coffee and cake

• Special courses, e.g., barista workshops

Such offers can not only strengthen your customer loyalty but also open up new target groups.

8. Ongoing Operations and Employee Management

As a café operator, you are not only responsible for daily operations but also for the organisation and management of your employees. This includes:

• Compliance with labor law requirements (e.g., working hours, break regulations)

• Training staff in hygiene and service

Good organisation helps you maintain oversight and deploy your team efficiently.

Conclusion

The opening of a café requires not only creativity and passion but also careful planning and the fulfilment of numerous legal requirements. With a clear concept, realistic financial plan, and adherence to all legal obligations, you lay the foundation for a successful café. Focus on quality, an attractive offering, and a pleasant atmosphere to delight your guests and achieve long-term success.