Toronto coffee shop launch: market read, positioning and validation plan

You have been asked to start a new coffee shop in Toronto, Canada. Explain how you would decide what kind of shop to open and who it is for, where and how you would launch it, and how you would know whether it is working. ```hint Look for the gap Before settling on a menu or a street corner, map who already sells coffee in Toronto and which customers or occasions they serve poorly. ``` ### Clarifying Questions - Are you a first-time founder opening a single shop, or an existing coffee brand entering Toronto? - Is the aim one profitable location, or a concept that can grow into several? - Should you assume a budget and timeline, or size the investment yourself? - Is a digital layer, such as ordering ahead, a loyalty program or delivery apps, part of what you are expected to design? ### What a Strong Answer Covers - A stated goal for the shop and what success means, set before choosing the concept - A read of the Toronto coffee market: where demand sits, who the incumbents are, and local factors such as seasons, neighborhoods and commuting patterns - A chosen target customer and a positioning that sets the shop apart from the incumbents, with the reasoning - Launch decisions (location, format, menu, price point) tied to that positioning and checked against rough unit economics - Success metrics with guardrails, the main risks, and a cheap way to validate demand before committing to a lease ### Follow-up Questions - How would you test demand for your concept before signing a lease? - What evidence would make you open a second location, and what would make you close the first? - If a large chain opened across the street a few months after your launch, how would you respond?