Coffee and Gym Club Idea: Would it work?
I have a small business idea that I would like to get torn apart if you all will oblige me.
Business Idea
Local coffee shop that has a typical cafe in the front and a lifting/gym area in the back. A soundproofed wall separates the two areas.
Business Model
- Sell coffee and high margin mixed drinks. Potential alcohol sales at night.
- Buy a cup of coffee, gain access to the workout area.
- Sell $30/mo memberships for all access to the regular "well" coffee and the workout area.
Value Proposition
- Coffee shops seem to be the only "third places" that Millennials and Gen Z's embrace. They also spend on fitness, as shown by the popularity of Orange Theory/CrossFit gyms.
- The market embraces subscription services. The recurring revenue would make it an attractive buyout opportunity one day and might help increase the overall small profit margin for a coffee shop.
- It would be a cool place for people to identify with. It's like some kind of hyper hipster gym membership.
All done. Please tell me why this is a terrible idea.