How to Start a Coffee Shop in South Africa That People Love

Ever dreamt of running your own cosy coffee spot? One where regulars know your name and the espresso hits just right?

Coffee shops are popping up everywhere, in neighbourhood corners, office parks, even petrol stations. And it’s easy to see why. A good cup of coffee brings people together - for a quick catch-up, a work meeting, or just a quiet pause on a busy day.

If the idea of owning a café has ever crossed your mind, now might be the perfect time to give it a proper look. There’s still room for more local coffee spots that serve great coffee, offer good service, and create a space that feels warm and welcoming.

But let’s be real, dreaming is just the start. You’ll need to figure out your setup, manage your budget, and find the right tools to keep things running smoothly. That’s where iKhokha comes in. From taking payments to managing tips and tracking sales, it’s all very doable.

This guide will walk you through how to start your coffee shop in South Africa, with practical tips to help you save time, money and a few headaches along the way.

Know your coffee crowd

Before you spend money on gear or rent, take some time to figure out who your coffee shop is for.

Coffee lovers in SA? They’re all kinds of different. Some people want a takeaway before work, others need a reliable spot to plug in their laptop. And don’t forget the regulars, they’re the ones who’ll swing by every morning if you just remember their name and their usual order.

Big brands like Starbucks and Vida e Caffè are well-known, sure. But there’s something different about local cafés that feel like part of the community. People still want that. You don’t need to compete with the big names, just offer something real, consistent and yours.

The clearer you are about your customer, the easier it’ll be to make decisions about location, pricing, and even the type of coffee you serve.

And with iKhokha in your pocket, you’ll be able to track what sells best, when your busiest months are, and how to keep your coffee crowd coming back.

Pick a coffee business model that works for you

There’s more than one way to run a coffee shop and picking the right business model can help you save money, work smarter, and grow faster. Your model affects everything: your setup costs, your staffing needs, your equipment list, and how you serve your customers.

Here are three common models in South Africa:

1. The sit-down café

Perfect for suburban hubs, high-foot-traffic areas, or neighbourhood hotspots. You’ll need space, comfy seating, a decent menu and friendly staff. This setup gives you more room for events, loyalty programmes and upselling and when you add iKhokha’s built-in tipping and detailed sales tracking, you've got a winning combo.

2. The kiosk or coffee bar

A kiosk is your go-to if you’re thinking mall corners, campus buzz or busy office parks. The focus here is speed and convenience. With a small footprint, you still need a reliable card machine and fast checkouts, which make iKhokha’s portable card machines the perfect payment solution for this type of business.

3. The mobile coffee cart

If you love moving around, a coffee cart gives you flexibility. Think weekend markets, corporate gigs, or pop-ups. You’ll want a lightweight setup, mobile data, and a card machine that works wherever you go, like the iK Flyer or iK Flyer Lite.

Budget for success: what it costs to open a coffee shop

You don’t need a millionaire’s budget to start. Just a clear plan, smart choices, and a little hustle. Knowing what you’ll spend upfront and each month can save you some stressful surprises later. It also helps you price your menu right and track your breakeven point from day one.

Here’s a breakdown of the typical expenses:

Once-off startup costs may include:

Espresso machine and grinder
Furniture and décor
Shop signage and fittings
Initial inventory (coffee, milk, snacks, packaging)
iKhokha card machine
Business registration and licensing

Monthly operating costs include:

Rent and utilities
Staff wages
Stock replenishment
WiFi
Marketing and advertising

This is where having a lean, mobile-friendly payment solution like iKhokha gives you the edge. No long contracts. No bulky terminals. Just a fast, secure way to get paid that fits your budget, with zero hidden fees.

And with real-time reporting through the iKhokha app, you’ll always know how your coffee shop is performing – from your daily sales to your top-selling items.

Location, location, location: where to open your coffee shop

You can have the best beans and the most Instagram-worthy cups, but if your coffee shop is in the wrong spot, you’re going to struggle. A good location isn’t just about visibility, it’s about accessibility, foot traffic, vibe, and convenience.

Think about where your target customers spend their time. Are you catering to commuters? Students? Office workers? Freelancers? Parents doing the school run? Choose a location that fits your customer profile and gives you enough traffic to stay busy.

Top things to consider when choosing a location:

Foot traffic: Is there a steady flow of people nearby?
Accessibility: Can people park or walk in easily?
Safety: Is the area safe during your trading hours?
Zoning: Is the area legally approved for food and beverage businesses?
Competition: Are there other coffee shops nearby (and are they thriving)?

You don’t need a massive space to get started. Some of the most loved cafés in SA started in garages, containers, or small courtyards. Just make sure the space reflects your brand and that your setup, including your payment system, works seamlessly. With iKhokha, your card machine goes where your business goes, no matter the size of your countertop.

Get the paperwork right: licenses, permits & registration

Before you start steaming milk and pulling espresso shots, you’ll need to tick a few legal boxes. Running a coffee shop in South Africa means complying with food safety laws and getting the right permits in place. It might sound like a mission, but it’s actually not too bad once you know what’s needed.

Here’s what you’ll need:

1. A Business License

Any business that sells food or drink for public consumption must have a license under the Businesses Act. You can apply through your local municipality, and processing usually takes a few weeks.

2. A Certificate of Acceptability (COA)

This certificate proves your coffee shop meets health and hygiene standards. You’ll need to outline your food handling practices and have your premises inspected.

3. Company Registration

While you can operate as a sole proprietor, registering your business with the CIPC adds legitimacy and makes it easier to open a business bank account or apply for funding.

Need a step-by-step guide? Check out our blog on how to register a business in South Africa.

Once you’ve got your paperwork sorted, you can start trading with confidence – and set up your iKhokha profile to begin accepting card payments, managing your sales, and building your business the right way from day one.

Gear up: equipment & essentials for your coffee shop

Setting up your coffee shop is like building your stage and your equipment is the star of the show. You don’t need the fanciest machines to get started, but you do need the right tools to serve consistently great coffee and keep your operations running smoothly.

Here’s a checklist to get you started:

Essential equipment:

Espresso machine and coffee grinder
Hot water urn or kettle
Fridge and storage for milk and perishables
Blender (if you’re doing smoothies or frappés)
Cups, stirrers, napkins, lids, takeaway packaging
Cleaning supplies and bins
Point-of-sale (POS) system or card machine

Furnishings and fittings:

Tables and chairs
Display counters for food
Signage and menu boards
Decor that reflects your brand’s personality

With iKhokha, you don’t need to invest in bulky tills or pricey POS systems. Our card machines are compact, cost-effective, and connect seamlessly with the iKhokha app, so you can manage inventory, create a product catalogue, and accept payments all in one place. Plus, if you’re on the move or operating in a tight space, our mobile POS options are a game-changer.

Build your dream team: hiring and training staff

Even the best coffee shop concept falls flat without great people behind the counter. Whether you're hiring one barista or building a full team, the goal is the same: friendly, reliable staff who care about the customer experience as much as you do.

Start small and hire for attitude over experience. It’s easier to teach someone how to steam milk than it is to teach them to smile. That said, investing in basic barista training – either online or through a local programme – can level up your service and set your business apart.

What to look for in your team:

Good communication and customer service skills
A willingness to learn and grow
Attention to detail (especially when it comes to cleanliness and consistency)
Reliability and punctuality

And when your staff goes the extra mile, make sure they’re rewarded. iKhokha card machines come with built-in tipping functionality, so happy customers can easily show their appreciation. It’s a simple way to boost morale and create a workplace culture where your team feels valued and it costs you nothing extra.

Coffee might be the heart of your business, but your menu is what keeps people coming back. A well-thought-out food and drink offering not only increases your average sale, but it also helps you appeal to a wider audience.

Start with the classics, think buttery croissants, gooey brownies, and warm muffins fresh out the oven. Then think about add-ons like smoothies, teas, or flavoured coffee syrups. These small extras can boost profits without complicating your workflow.

Want to earn even more? Get creative with:

House blends or signature drinks: Create something your customers can’t get anywhere else.
Coffee merchandise:Think mugs, tote bags, or gift packs.
Retail coffee: Sell your own beans or collaborate with a local roaster.
iK Prepaid: With iKhokha, you can sell prepaid electricity, airtime, gaming vouchers and more from your counter.

And if you’re using iKhokha’s product catalogue feature, you can set up and manage your entire menu in the app making your daily operations smoother and more professional.

Spread the word: marketing that brings customers in

You’ve got your space, your coffee, and your team – now it’s time to get people through the door. And good news: you don’t need a big marketing budget to make a big impact. With the right strategy (and a little hustle), word of mouth can travel fast.

Start by telling your story. People love supporting small businesses that feel real, relatable, and local. Share why you started, what makes your coffee special, and what kind of vibe customers can expect when they visit.

Here’s how to get the word out:

Social media: Instagram and TikTok are your best friends. Post behind-the-scenes videos, customer photos, and daily specials.
Launch specials: Offer a free coffee with every purchase, or run a loyalty card programme to keep regulars coming back.
Community events: Thinking of hosting a quiz night or poetry slam? That’s the kind of vibe people remember.
Digital receipts: With iKhokha, you can include promo messages and review links on every receipt, a subtle but powerful way to stay top of mind.

And don’t forget to track your busy times, top-selling products, and repeat customer patterns through the iKhokha app. It’ll help you make smarter marketing decisions and grow faster.

Expect challenges and know how to tackle them

Let’s be real, running a coffee shop isn’t always smooth sipping. There’ll be quiet days, tricky customers, supplier issues and the occasional equipment failure. But every challenge is also an opportunity to improve, adapt, and strengthen your business.

Here are a few common hurdles and how to overcome them:

Slow foot traffic?

Rethink your marketing. Promote time-limited deals, collaborate with local businesses, or run social media giveaways to boost visibility. Also consider adding takeaway options or delivery if your area allows it.

Feeling the pinch on cash flow?

Keep tight control over stock and spending. The iKhokha app shows your daily sales, top performers, and expenses at a glance, so you can make informed decisions fast.

Tough competition nearby?

Differentiate your brand. Create a signature drink, host community events, or offer something extra, like fast card payments, friendly baristas, and prepaid services. Your uniqueness is your superpower.

Staffing problems?

Train, reward and retain good people. Use the tip feature on your card machine to motivate your team and create a work environment they want to be part of.

Remember, every successful coffee shop owner faced these same obstacles. The difference? They didn’t give up, and they used the right tools to stay one step ahead.

Brew the dream: start your coffee business using iKhokha

Starting a coffee shop in South Africa is about building a space where people connect, slow down, and feel at home. And when you combine your passion for coffee with the right tools and planning, you’ve got a recipe for real success.

At iKhokha, we’re more than just a card machine provider; we’re your business partner from day one. Whether you’re starting small or dreaming big, our ecosystem is built to support your growth:

☕ Sell anywhere with a range of affordable, mobile card machines.

☕ Keep your team motivated with easy tipping and boost your business with extra income from iK Prepaid.

☕ Work smarter using the iKhokha app to track sales and run your café from your phone.

☕ Stay in control with real-time reports, customer insights and seamless point-of-sale tools that grow with your business.

The best part? You don’t need to wait to get started. With low start-up costs and no long-term contracts, iKhokha makes it easy to take the first step – and every step after that.

So why wait? Brew the dream, serve up something special, build your spot on the block and serve your community, one cup at a time. We’ll be right there with you, every step of the way.