Choosing the right location is the single biggest decision a café owner makes. The wrong street can mean years of struggle. The right one can mean a queue out the door from day one.
Morning foot traffic
Look for locations near offices, schools, train stations or gyms. The 7–9am commuter window is where most café revenue is made.
Daytime population
ABS employment data shows how many workers are within 500m. More workers = more coffee buyers.
Competitor density
2–3 cafes nearby is healthy competition. 6+ within 200m is oversaturation unless foot traffic is extremely high.
Rent-to-revenue ratio
Café rent should ideally be under 12% of revenue. At average spend of $8–12 per customer, you need the foot traffic to support the rent.
· Corner or end-of-terrace positions with high visibility
· Street-facing windows or outdoor seating potential
· Proximity to morning commuter corridors
· Car parking or public transport within 200m
· Office buildings, gyms or schools nearby
· More than 5 cafes within 200m
· Rent above $5,000/month without verified foot traffic
· No morning commuter flow nearby
· Residential-only area with low daytime population
The 7am test
Visit the location at 7am on a Tuesday. Count how many people walk past in 10 minutes. Multiply by 6 for an hourly estimate. If it is under 50 people per hour, think carefully about whether coffee volumes will stack up.
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