How to Start a Cheese Shop

Part 1 - How to start a Cheese Shop business - Background

There’s something invigorating about walking into a market and being surrounded by all your favorite things. This is particularly true for the foodies of the world. Opening a cheese shop offers many rewards. After all, how can you go wrong surrounding yourself with your passion and sharing the experience with fellow cheese lovers?

Our guide is in 3 parts:

• Part 1 - How to start a Cheese Shop business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a cheese shop?

Your storefront location will be top priority. Many cheese shop owners choose to rent space for the first year or so to help get a feel for the business and its needs. Once you’ve put down a deposit and first month’s rent, it’s time to start outfitting your shop. A few items you’ll need are:

• Refrigeration systems – Selecting the right refrigerator for your space is critical to the quality of your cheeses. The average cost of a new unit is $5,000.

• Refrigeration engineer – Chilling a space draws all the moisture out of the air, so be sure to invest in a system that isn’t too aggressive. While hiring an engineer will cut into your start-up costs, they’ll analyze the details of the space to ensure proper refrigeration.

• Proper lighting – The last thing you want to do is invest in proper refrigeration, only to have it sabotaged by your lighting. Invest in high-quality LEDs for more natural lighting that doesn’t give out too much heat.

• Shelves and display cases for unrefrigerated cheese and non-cheese inventory.

• Point of Sale software (POS) – The right software will not only assist in ringing up your sales, it will track inventory and notify you when running low on products.

What are the ongoing expenses for a cheese shop?

In any business, it’s important to pay close attention to the details. The three components that will keep a steady flow of customers are: quality of inventory, store location, and employees. These are also your top ongoing expenses. Good businessmen are always looking for ways to cut costs. But they also understand which areas require top quality.

Who is the target market?

Food enthusiasts who are passionate about artisan cheeses. Cheese isn’t just something they eat, it is, in a sense, a way of life. They enjoy conversations about the various types of cheeses and which regions produce the best cheese. They savor cheese platters and have friends who share the same passion. These are the individuals that will not only become regulars, they’ll become friends. And they will tell all their friends.

How does a cheese shop make money?

Cheese shops generate revenue through individual and bulk sales of their inventory of cheese and accompanying products.

How much can you charge customers?

Prices vary from cheese to cheese and producer to producer. Cheese shop owners report a profit margin of 35%, although some gourmet food margins can go as high as 100%.

How much profit can a cheese shop make?

The average annual sales for a shop carrying 125-150 cheeses is between $750,000 and $1.6 million. Subtract annual expenses from total sales and most have realized a significant profit.

How can you make your business more profitable?

There are several strategies you can implement to ensure a more profitable business:

• Cross-merchandising – Offer a variety of items to complement your cheese stock. This could include anything from crackers and honey, to artisan bread, condiments, and nuts. Some cheese shops have even found success carrying complementing kitchenware and books on cheese.

• Sell part of your inventory in bulk to local restaurants – Restaurants that offer cheese plates or prefer high-quality ingredients in their dishes can be a great source of income. Build relationships with just a few restaurants and you’ve added some stability to your company’s revenue.

Day-to-Day and Growth

What happens during a typical day at a cheese shop?

A cheese market entrepreneur’s days are centered around cheese. Relationships with cheese producers must be built and nurtured. Inventory is restocked on a regular basis to assure fresh, quality product.

Customers will come to you for advice, so it’s important that you and your staff are continuously educated on the latest trends, packaging and storage methods, and pairing options. Depending upon the cheese, some cheese wheels will be cut-to-order, while others are pre-cut and packaged for customer convenience.

What are some skills and experiences that will help you build a successful cheese shop?

If you’re considering this career choice, you likely know a good bit about cheese already. The cheese trade is, however, much more intricate than most of us realize. If you haven’t already, you’ll want to spend some time engulfed in the industry, learning the ins and outs of the trade. You’ll gain invaluable knowledge regarding the regions, styles, and pairings, and offer a deeper understanding of the creation and distributing trades. This experience will also offer you the opportunity to network and connect with cheesemakers and distributors in your area. If you’re unsure where to begin, the American Cheese Society offers a wealth of information on everything from cheese educators to conferences and suppliers.

Once you’ve gained this knowledge and experience, your passion for everything cheese will influence you to work hard, be flexible, and continuously strive to grow and ameliorate your business.

What is the growth potential for a cheese shop?

With more and more consumers realizing their devotion to cheese, the industry has realized a spike in growth over the last decade. With an expected increase in value to over $100 billion by 2019, it’s showing no signs of slowing down.

Despite its continued growth, however, many shop owners choose to maintain small, Mom and Pop stores. This keeps overhead costs down and ensures the intimate setting that food lovers associate with food and wine.

What are some insider tips for jump starting a cheese shop?

• Location is top priority. Choose a community that is most likely to want your product. Try to situate yourself close to complementing businesses, such as wine shops.

• Stock shelves with items that can sell within 2-4 weeks.

• Store cheeses at 45-55 degrees Fahrenheit and in butcher or waxed paper. Store away from fans, direct sunlight, and vents.

• Avoid pre-cutting whenever possible.

• For items you must pre-cut, take care to not slice too thin or too small. This helps keep proper moisture inside.

• Encourage customers to try the cheeses. Always taste the cheese first before offering it to a customer.

• Offer competitive prices, but don’t sell yourself short. Cheese lovers are willing to pay extra for quality products and are suspicious of rock-bottom prices.

How and when to build a team

The number of employees you employ will depend upon the hours you keep. You’ll want at least two staff members present at all times to ensure the shelves are stocked and the customers are given the attention they deserve. It’s critical that you have a knowledgeable staff who is passionate about cheese. Choose staff members who are a little older and more experienced – individuals your clients can relate to.

Part 2 - Is a Cheese Shop business the right fit for you?

Part 3 - Action plan to launch your Cheese Shop business in 90 days