With operational costs showing no signs of receding, could the next generation of coffee shops be less brick-and-mortar and more mobile?
It’s estimated opening a café in Australia now costs between $50,000 and $500,000, with the huge variation down to multiple factors such as size of venue, location, anticipated traffic, and renovations required.
With profit margins slimmer than ever for many in the industry, taking on this initial outlay could take years to offset.
The latest benchmark data from the Australian Taxation Office, which is based on statistics from 2022/23, suggests coffee shops with a turnover of between $65,000 and $250,000 per year can expect to make about 20 per cent profit. If a small coffee shop turned over $100,000 per year and cost $70,000 to setup, the owner could expect to offset the initial expense in about three and a half years. That’s a long time not to be feeding any profit back into the business.
While these statistics may be disheartening to those with dreams of opening their own venue, the team at coffee equipment specialist Barista Equip believe there’s a cost-effective alternative to the traditional brick-and-mortar setup.
“Luxury coffee carts are a cheap and easy way to start a coffee business,” says Barista Equip Founder Brett Bolwell.
“Given the current costs of running a café and the significant initial outlay, the point of entry is becoming increasingly higher and therefore pricing a lot of people out of the market. The most basic café fit out might cost $50,000, but a cart with all the equipment needed to craft coffee can be as little as $20,000.”
According to Brett, these carts have become popular in the United States (US), where similar pressures have made establishing a permanent coffee business increasingly difficult. Fixed on wheels, the semi-mobile cafés can be moved around venues for different purposes or completely relocated.
“These luxury carts are everywhere in the US,” he says. “From shopping malls to gyms to outdoor sports grounds, they’re popping up on every corner.
“Their popularity makes sense. As an entry business, you know your rent would be nothing – or next to nothing – and you’re not locked into a lengthy lease. Staff costs are low as you might have one or possibly two baristas, and if foot-traffic falls the cart can be moved to new locations depending on the season.”
Seeing the success of the setups in the States, Barista Equip has collaborated with a local Queensland business to provide flat-pack carts in a range of sleek designs. The compact coffee shops can be customised to reflect a business’ branding and adapted in size and add-ons – such as awnings – to fit its purpose.
“In Australia, I can see these being really popular at outdoor venues like surf clubs, footy fields, and parks, as well as in tourist buildings, retail spaces, and universities that don’t have a permanent café space,” says Brett.
“They really can be placed almost anywhere. They don’t need to be connected to water as we can include an inbuilt water system for both the espresso machine and sink. They do require power, but in cases where there’s no access a silent generator can be introduced. We can even run a battery version when the power needs aren’t substantial.”
For someone starting out with their first cart, Brett suggests using a single-group or small two-group espresso machine alongside a compact grinder and a PUQ Press. Along with other essentials such as a fridge, sink, and rinsers, he says the whole operation could come in at under $20,000 – a much less daunting proposition.
And it’s not only the coffee industry in which Barista Equip sees great opportunity for these custom carts.
“We start with a base design, but the possibilities are endless. You could install a pizza oven, freezer components for gelato, or even blenders for protein shakes,” says Brett.
“I think there’s huge opportunity here for niche setups such as specialised matcha, cold brew, or signature drinks bars. Given the continued rise of cold coffee beverages, the carts are a great chance to try out something quite different to what everyone else is doing without making a huge financial commitment.”
For more information, visit baristaequip.com.au
This article appears in the October 2025 edition of BeanScene. Subscribe HERE.
