Because running a café takes more than just a good roast
Updated
March 18, 2026 6:29 PM
A cup of espresso being brewed. PHOTO: UNSPLASH
Coffee has grown beyond being just a drink—it’s part of culture, connection and even a daily productivity hack. Think about it: friends catch up over cappuccinos, professionals start the day with a quick espresso and students practically live on iced lattes during exams. It’s woven into routines, with two-thirds of American adults consuming coffee on a daily basis and averaging around three cups per day. That is much higher than other beverages like tea, juice and bottled water. It is therefore no surprise that the global coffee shop industry is projected to reach about US$123.43 billion by 2030. For entrepreneurs, that makes coffee shops more than cozy corners with good aesthetics. They’re a real business opportunity. But before you open a coffee shop, here are five things you should know.
Like any small business, the success of your coffee shop often hinges on where it is. Coffee may have broad appeal, but daytime foot traffic and visibility can still make the difference between a busy café and one that struggles to stay afloat. Opening near universities, office parks, co-working hubs or residential neighbourhoods with young professionals can instantly give you a strong stream of potential customers.
That said, choosing a coffee shop location is not just about picking a busy area. You also need to know your target market. For example, opening a third-wave specialty coffee shop in a low-income neighbourhood may not work if your prices are beyond what local residents want to pay. The same café might perform much better in a more affluent or fast-changing district.
Competition matters a lot in the equation too. Walk around the area and see what other coffee shops are doing. The goal is not always to avoid competition but to find a gap in the market. If nearby cafés focus on quick grab-and-go drinks, there may be room for a slower, more community-driven coffee shop built around hand-poured brews and a relaxed atmosphere. Simply put, your shop’s exact street address could make or break your business.
It’s important to understand this early on: running a coffee shop is not just about serving coffee. Customers today have endless options, from making coffee at home to buying from major chains like Starbucks. What brings them through your doors is often the overall experience.
According to a report by Salesforce, 91% of customers say they’re more likely to make another purchase after a great service experience. That means your café needs to give people a reason to stay, come back and recommend it to others. Maybe it is the interior design, the playlist that feels just right, the reliable Wi-Fi, the convenient charging points or simply the way the space feels. Remember, good coffee gets people in once, but a strong customer experience gives them a reason to return.
Opening a modest-sized sit-down café in the U.S. can cost anywhere between US$100,000 and US$350,000. The final number depends on your location, your coffee shop concept, your equipment and how much you spend on the fit-out and interior design. Beyond those startup costs, your monthly expenses—like rent, utilities, staff salaries and coffee bean purchases—will play a huge role in whether your business survives the first year.
Profit margins in coffee retail are thinner than new owners expect. On average, small to medium-sized coffee shops make a 3-10% profit margin, which means efficiency is key. Selling higher-margin items like snacks, light bites and pastries can help lift revenue. A US$2 slice of banana bread, for example, may cost cents to make but can still raise the average spend per customer.
You also need to factor in seasonality when planning your coffee shop revenue. For instance, in warmer months, there is usually higher demand for iced and cold beverages. Many cafés respond by introducing cold brew, iced teas, smoothies or limited seasonal drinks to their menus. That helps keep sales steady and protects the average ticket size throughout the year. At the end of the day, running a café is just as much about managing the numbers as it is about serving great coffee.
A barista isn’t just someone pulling espresso shots; they’re often the face of your coffee shop. A warm smile, remembering a regular’s order or sharing a fun fact about the beans can create the kind of connection that keeps customers coming back.
As specialty coffee culture boomed in the early 2010s, baristas became more than brewers—they are now guides and storytellers. By talking about coffee origin, processing methods, bean varieties and roast profiles, they help customers understand what they are buying and why it matters. That mix of knowledge and personality can have a real impact on customer loyalty.
That’s why hiring and retaining great baristas is one of the smartest investments a café owner can make. Beyond competitive pay, creating a workplace where people feel valued also matters. Training, room for creativity and a sense of pride in the craft can go a long way in helping staff stay engaged.
Opening a coffee shop is exciting, but opening the doors and hoping people walk in is not enough. Good coffee shop marketing today is less about spending big and more about telling a story people want to follow. Well before you launch, start building hype and share behind-the-scenes snippets on Instagram, whether that is taste-tests, design decisions or even the messy parts of setting up the space. That kind of content feels real and helps build anticipation.
Once your café is open, think beyond basic promotion. Loyalty programs, collaborations with local businesses or even hosting events like poetry nights, art exhibits or coffee cupping sessions can all help bring people in. Social media is useful here too; it is not only a place to post latte art but also where you show what your brand stands for. Do you focus on sustainability? Do you source coffee ethically? Do you support local artists? Those details humanize your brand and make your café more than just a pitstop for caffeine.
Overall, opening a coffee shop blends passion, community and entrepreneurship. It also requires clear thinking and strong business decisions. From choosing the right location and creating a memorable customer experience to managing costs and building a great team, success takes more than just brewing good coffee. If you treat your coffee shop as both a craft and a business, you give it a much better chance of becoming a local favourite.
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The hidden cost of scaling AI: infrastructure, energy, and the push for liquid cooling.
Updated
January 8, 2026 6:31 PM
The inside of a data centre, with rows of server racks. PHOTO: FREEPIK
As artificial intelligence models grow larger and more demanding, the quiet pressure point isn’t the algorithms themselves—it’s the AI infrastructure that has to run them. Training and deploying modern AI models now requires enormous amounts of computing power, which creates a different kind of challenge: heat, energy use and space inside data centers. This is the context in which Supermicro and NVIDIA’s collaboration on AI infrastructure begins to matter.
Supermicro designs and builds large-scale computing systems for data centers. It has now expanded its support for NVIDIA’s Blackwell generation of AI chips with new liquid-cooled server platforms built around the NVIDIA HGX B300. The announcement isn’t just about faster hardware. It reflects a broader effort to rethink how AI data center infrastructure is built as facilities strain under rising power and cooling demands.
At a basic level, the systems are designed to pack more AI chips into less space while using less energy to keep them running. Instead of relying mainly on air cooling—fans, chillers and large amounts of electricity, these liquid-cooled AI servers circulate liquid directly across critical components. That approach removes heat more efficiently, allowing servers to run denser AI workloads without overheating or wasting energy.
Why does that matter outside a data center? Because AI doesn’t scale in isolation. As models become more complex, the cost of running them rises quickly, not just in hardware budgets, but in electricity use, water consumption and physical footprint. Traditional air-cooling methods are increasingly becoming a bottleneck, limiting how far AI systems can grow before energy and infrastructure costs spiral.
This is where the Supermicro–NVIDIA partnership fits in. NVIDIA supplies the computing engines—the Blackwell-based GPUs designed to handle massive AI workloads. Supermicro focuses on how those chips are deployed in the real world: how many GPUs can fit in a rack, how they are cooled, how quickly systems can be assembled and how reliably they can operate at scale in modern data centers. Together, the goal is to make high-density AI computing more practical, not just more powerful.
The new liquid-cooled designs are aimed at hyperscale data centers and so-called AI factories—facilities built specifically to train and run large AI models continuously. By increasing GPU density per rack and removing most of the heat through liquid cooling, these systems aim to ease a growing tension in the AI boom: the need for more computers without an equally dramatic rise in energy waste.
Just as important is speed. Large organizations don’t want to spend months stitching together custom AI infrastructure. Supermicro’s approach packages compute, networking and cooling into pre-validated data center building blocks that can be deployed faster. In a world where AI capabilities are advancing rapidly, time to deployment can matter as much as raw performance.
Stepping back, this development says less about one product launch and more about a shift in priorities across the AI industry. The next phase of AI growth isn’t only about smarter models—it’s about whether the physical infrastructure powering AI can scale responsibly. Efficiency, power use and sustainability are becoming as critical as speed.