Most cafes compete on the same things. Price. Location. Signage. But the best ones play a different game. They create their own space in the market. They don’t just fight for customers, they make their own category.
Here’s how.
Location
The old saying is “location, location, location.” It is true. But not in the way you think.
People often imagine the best spot is the one next to the train station. Or the one with the widest frontage. Or the one on the beach with lots of foot traffic. Or the one in the CBD. Those things help, but they are not the full picture.
A good location is one that makes financial sense: it generates 11 to 12 times the revenue for its rental cost. The simple rule is this. Your annual rent should be roughly equal to one month’s sales. That means around 8 to 9 percent of your gross sales. If you forget this, nothing else matters.
So while all the other factors matter and should be considered, don’t overpay for your lease. Do your due diligence on the actual potential of sales through looking at foot traffic, other business, numbers or residents and workers and other similar factors.
Think of rent as the foundation of a house. If it is not solid, the whole thing falls apart. Read more about commercial lease essentials you need to know as a cafe owner.
Principle to explore: cost discipline and strategic fit. A bad lease is like building on sand.
Brand and design
Brand is not just a logo. It is how your cafe feels and how it tells its story. It comes through in your colours, fonts and language. It shows in the furniture, lighting, signage and even the shape of your cups. It is the whole experience.
The most important thing is cohesion. Everything should feel like it belongs together. If you want a retro theme, then your menu names, your posters, your sounds, even your uniforms can lean into that. If you want a minimalist, modern look, then keep everything sharp, clean and stripped back.
Design is not decoration. It is strategy. It helps you attract the right customer and sets the stage for how they feel in your space.
Principle to explore: brand coherence and architectural unity. Everything must work as one story.
Coffee
Coffee is everywhere. But that doesn’t mean it cannot set you apart.
It starts with your roaster and the beans you choose. Then the machine, the grinders, the bar flow and the service style. Even the way your baristas dress and carry themselves. These things all add up.
Then there is the menu. Do you offer batch brew? Cold brew? Signature drinks? Do you showcase rare or premium coffees? Do you tell the story of where your coffee comes from and who roasts it? Is it ethical? Does it change the world for the better?
Coffee should never feel generic. It should feel special.
Principle to explore: product differentiation and storytelling. The “why” behind your coffee matters as much as the taste.
Food
Food is often the forgotten piece. Many cafes serve the same dishes with the same names. Customers can almost predict the menu before they sit down.
That is a missed opportunity. Food can be a point of difference. You can still serve the classics but make them your own. Use different ingredients. Present them in your style. Give them names that reflect your brand.
And let your values show. If you care about sustainability, make sure your menu makes that clear. If you are inspired by another culture, let that influence your flavours. If innovation is your angle, bring it through in your food.
Food can tell a story just as much as coffee.
Principle to explore: brand expression through product design and customer expectations.
Personality
A cafe is not just a business. It has a personality.
Think of Virgin Australia. Their personality is playful and fun, and you feel it in every interaction. A cafe can be warm, serious, quirky or creative. Whatever it is, it has to be real. Customers can smell fake. Authenticity is the key and that creates meaningful connections for your customers.
Principle to explore: brand authenticity. Personality only works when it’s true.
Vibe and atmosphere
The best cafes are more than four walls and a counter. They are social spaces.
How does your cafe look from the outside? Is it inviting? Can people see in through the windows? What happens at the entrance? How does the layout guide people once they walk in?
Inside, do the lights, chairs, and tables match your brand? Is the counter clean and intentional? Does the space make people feel like they want to stay? These little details are the unspoken service signals that speak louder.
Atmosphere is architecture. It shapes how people feel without them even realising.
Principle to explore: architectural coherence and emotional design. Space is silent hospitality.
Digital presence
Most customers now discover a cafe online before they ever step inside. The search starts with Google, Instagram, or TikTok. That means your digital presence is not an extra, it is part of your cafe.
Ask yourself: if someone searches your name right now, what will they find? Do you have a complete Google profile with current hours, contact details and good photos? Are there recent reviews that reflect your true experience? Do you reply to reviews? Is your Instagram alive with updates, behind-the-scenes moments, or new menu items? Do you have a website that makes it easy to find you and understand your story?
Digital presence is also about tone. The language, the images, the colours and all of it should match your brand in the same way your menu or your fitout does. Customers notice when there is a gap. A slick cafe with a tired Facebook page feels disjointed. A modern, playful space with a fun TikTok account feels aligned. But it’s also worth asking if your cafe should follow every online trend.
Your digital face is your shopfront just as much as your physical one. Ignore it, and you risk being invisible to new customers who haven’t walked past your door.
Principle to explore: discoverability and digital brand experience. First impressions now happen online.
Warm hospitality
This might be the most powerful point of all. Hospitality is more than service. It is about how people feel when they are with you.
It begins at the door. A smile, a greeting, even a small gesture can set the tone. During the visit, it is in the details: remembering a name, noticing a regular order, offering help when someone looks unsure. When someone leaves, it is the farewell that lingers in their memory.
Hospitality is not complicated, but it is intentional. It is about creating moments of care that make customers feel welcome, seen and valued. In a world where most interactions feel transactional, genuine warmth cuts through. That’s how you can craft small but meaningful hospitality moments.
Great hospitality also builds resilience. A customer may forgive a slow coffee or a busy day if the staff are warm and attentive. But no amount of delicious, world-changing coffee can cover for cold or indifferent service.
Principle to explore: hospitality as emotional value. Care is the real retention strategy.
Mastery of excellence
There is always the temptation to do more. More menu items, more specials, more offers. But too much can blur the focus and lower the quality. Doing many things badly is far worse than doing a few things with care.
Excellence comes from choosing. What are the things you want to be known for? Is it your batch brew? Your pastries? Your customer service? Once you know, give those things your attention, training and investment. Make them remarkable, consistent and unmistakably yours.
Excellence also travels. Customers tell friends about the place that makes the best toastie in town, or the smoothest flat white, or the warmest welcome. That story spreads faster than any marketing campaign because it is rooted in trust.
The key is not always variety. It is mastery. Read is busier always better?
Principle to explore: focus and operational excellence. Strategy is as much about what you don’t do.
Community
Cafes are more than coffee shops. They are anchors in a neighbourhood. They can be the heartbeat of a street, a meeting place, a little home outside of home.
Great cafes understand this. They don’t just sell coffee and food, they weave themselves into the life of the community. They showcase local artists on their walls. They host small events or workshops. They sponsor a local team or support a nearby cause. They learn their regulars’ names and stories, and those regulars in turn bring friends and family.
When a cafe belongs to its community, loyalty is deeper than price or convenience. People return not only because of what they get, but because of what they feel they are part of.
This is where cafes shift from being businesses to being places of meaning. And that kind of belonging is hard to copy.
Principle to explore: place making and social capital. Cafes thrive when they are woven into the fabric of life around them.
Final Word
Cafes don’t win by copying each other. They win by telling their own story. Through brand, design, world changing coffee, food, personality, atmosphere and hospitality. Through mastery and community.
A cafe is not just a place to get coffee. It is a place to feel something. And when people feel something, they return and they tell others.
That is how you stand out. That is how you create your own market of just one.
