Opening Notes is a new content series from La Marzocco focusing on the information everyone should know before they open their first café. Over the next few months, this series will examine topics that cover business practices, marketing ideas, and café operations, each featuring a coffee expert in that field.
Erica Escalante is a cafe & bakery consultant, specializing in holistic operations, profitability, and leadership. Previously, she was the owner/operator at The Arrow Coffeehouse & Cafe Reina, Head of Retail for Canyon Coffee, Director of Operations at Goodboybob Coffee Roasters, and President of Little Lunch Coffee. For Erica, dedicated financial systems are integral for running an efficient business where budgets are met and employees can thrive. But before implementing these systems, Erica believes everyone should understand how cafés operate. To learn more, we spoke with Erica about the importance of café business literacy and why it’s key knowledge for business owners and baristas alike.
Why is it important that café owners understand the details of the business side of their café?
To me, it’s everything. Cafe owners hold the livelihoods of their teams, their vendors, and themselves in their hands. Taking on that responsibility means becoming an educated business person so the whole ecosystem can thrive. When a cafe business closes, it doesn’t just hurt people—it creates massive waste. As ethical leaders, we owe it to everyone involved to take the business side seriously.
Why is it important that baristas have an understanding of the business side of the café they work at?
There’s a few reasons—my favorite one is career development. Being a life-long barista is typically not a sustainable occupation and if people love the work/industry, being empowered with business knowledge can help them navigate the capitalist landscape in front of them and strategize on their futures. It can be the difference between feeling stuck behind the bar and being able to carve out a long-term career in coffee. They also directly impact the business they are working in and the team of people around them. If they can do that from an educated standpoint, their contributions can be more meaningful and targeted.
What are some of the differences between what café owners need to know vs. baristas?
It’s really important for each key player to know where their power lies—what they can influence and what they cannot. Cafe Owners hold power over most areas, so that knowledge needs to be pretty vast and all-encompassing. Baristas, on the other hand, have very specific areas of influence, mostly in raising sales and accomplishing the day to day goals in the shop. I also think it’s important to build empathy and understanding between the two roles—giving baristas enough information to help them understand WHY an owner might make certain decisions in the business, like how many people are scheduled at any given time or why their pay rate is what it is. The more each side understands and cares about the other’s pressures, the stronger, more united, and happier the business and the industry will become.
What is the one thing you wish you knew before opening your first café?
Everything! I was just a dreamer like most entrepreneurs. Similar to parenting or marriage or any other major life commitment, no one can truly prepare you for that journey. Education on all things—finances, business strategy, leadership, personal development—would have made my life better, my employees happier, and the journey more easy. If I had known the weight of financial literacy and leadership, it would have saved me years of heartache.
What is your most basic advice for anyone who is preparing to open their own café?
Hire a consultant! Haha… But besides that, I cannot emphasize education, planning, and strategy enough. Having a financial plan directly impacts your operational decisions, like what kind of offerings you have and how you’re going to offer them. When you go head-on with your ideas with no financial planning, you will eventually run into some major issues and your life will be so incredibly stressful. There are tried and true paths that make the journey far less painful for all involved—learn them!
What are some ways a café owner can learn more about managing the business side of their café?
Social media is full of people right now sharing their experiences and advice – it’s an incredible free resource. I post a lot of educational things on my page alongside other amazing experts like Laila Ghambari, a fellow consultant and friend. Classes are also growing in their availability – I teach courses throughout the year virtually as well as at prominent conferences like CoffeeFest, SCA Expo, and a new exciting one happening this year for baristas called Level Up. The resources are out there – owners have to seek them out and invest in them. I even launched a cafe business accelerator program this year because I see how much need there is for this education and mentorship.
What are some business skills that baristas can develop to help them further their careers?
I highly recommend baristas get educated on the financial side of the cafe business – how money flows through the business, how to raise sales, control costs, etc. Even personal financial things like understanding the money taken out of your paycheck for taxes – understanding what all that is and how to influence it is vital. It can set a barista up to better negotiate pay raises for themselves and strategically decide what career moves they want to make, and what that will take. The more you understand money, the more power you have in shaping your own path.
What are some signs that a café owner should look for that tell them it’s time to reevaluate their business processes?
If they are constantly feeling in a state of stress and frustration or they’re constantly putting out fires and scared to look at their bank account, it’s time to reevaluate. There are some aspects of this business that will always be in flux and some grade of chaos, but you should not be living in a constant state of stress, unknown, and frustration. Every fire is a signal that your systems need to be improved. Every point of frustration signals that you need more development as a leader. This can be a profitable business that can be fun to run, but it takes that planning, refinement, and a high level of execution that can be learned. Stress isn’t a badge of honor – it’s a signal that your systems and leadership need work.
How important is it that baristas are involved in the business side of a café?
I think it’s vital that all team members understand their position and impact in the business. Every action in a cafe is business, and baristas are at the heart of it. From how we pull espresso, to the equipment choice, to the hospitality and cleanliness standards and how you communicate on a team – it all impacts the bottom line and ultimately, everyone’s livelihood.
What’s your favorite piece of advice for anyone looking to improve their business literacy?
Seek answers for everything… if every difficulty is a signal that there is more needed, be the seeker of what more could be. I opened my first cafe at 21 years old and the top quality that contributed to that business growing for almost a decade was the constant search for answers, betterment, and growth while also caring about the people around me in the process. There are answers out there. There are strategies and methods and techniques – go find them. Curiosity and humility are the best business tools you can carry with you.
To learn more, visit Erica Escalante’s website. You can also follow Erica on her Instagram page.
