From sleek espresso bars to bustling cafés, our city takes its coffee culture very seriously. So seriously, in fact, that even a global giant like Starbucks couldn’t survive here. After burning through $143 million trying to win over Canberrans, Starbucks had to admit defeat, retreating from the capital with its tail between its beans.

The truth? Canberrans want more than just a quick caffeine fix—they crave quality, a rich flavour profile, and the full café experience. But while that may make opening a café sound like a golden opportunity, the reality is much tougher. If you’re thinking of starting your own coffee shop here, you’re stepping into a fiercely competitive, high-risk market. And that’s just the start of it. Let’s dive into the challenges and what it really takes to succeed in Canberra’s coffee scene.

Here’s the deal—around 60% of small cafés in Canberra close their doors within the first three years. Why? Low returns on investment. Opening a coffee shop might sound like a dream, but when you factor in skyrocketing rent in prime locations, you’re looking at a slim chance of seeing any profit in your first two years. According to local business stats, the ROI for most new cafés hovers around a measly 2-5% in the first few years. Those quaint, high-street spots? Overcrowded with cafés, all fighting for the same flat-white fanatics.

Competition is cutthroat, and even with Canberrans’ insatiable love for their morning brew, there’s only so much caffeine people can consume. High foot traffic doesn’t always mean high profits—just ask the unlucky owners who underestimated overheads, from rent to ridiculous insurance fees. The price of quality, ethically sourced beans fluctuate wildly, and when costs spike, margins shrink even further. Then there’s Canberra’s seasonal swings—when winter hits, outdoor seating becomes a no-go, cutting down your capacity and revenue. Add to that the constant pressure to stay ahead of trends—vegan options, specialty milk alternatives, Instagram-worthy interiors—and you’re juggling more than just coffee cups.

The local café scene is buzzing, but unless you’ve got something truly unique—a killer brand, niche product, or next-level service—you’re toast. Some places nail it, like The Cupping Room, turning coffee-making into a performance art. But they’re the exception, not the rule. If you're planning to set up shop, you might want to think outside the box. Start small with a coffee truck or pop-up stall before diving headfirst into brick-and-mortar.

So, before you start daydreaming about latte art, let us help you brew up a business strategy that’s set for success. Coffee here isn’t just a drink; it’s a lifestyle. Join the ANU Entreprenuership Club today for more such insights and GTM help.