How To Turn A Historic Building In Turkey Into A Popular Coffee Shop: Interview With An Entrepreneur From Alanya

Dogan Solmaz, the owner of Ms. Neilos Coffees cafe in Alanya, told us about his experience of opening and running a business in Turkey. After many years of working in the travel industry, he decided to start a new chapter in his life by opening a coffee shop in a historic building. In this interview, Dogan shared with us practical tips on opening a cafe in Turkey, financial aspects and secrets of attracting customers.

The specifics of opening and doing business in Turkey

— Dogan, please tell us about your path to opening a coffee shop in Turkey.

— The pandemic has greatly affected our family, and after 28 years in the travel industry, my wife and I decided that it was time for a change. After moving to Alanya, I spent 4 years in senior positions in construction and real estate. Then we noticed the growing popularity of coffee and decided to expand my cousin’s business from Istanbul to the Mediterranean region. This is how Ms. Neilos Coffees appeared in Alanya.

— What is the concept of your coffee shop?

— We are developing the idea of self-service, which is popular among young people. But the main thing is the quality of the coffee. We import grains from 12 countries, roast them according to our own recipes and use modern brewing methods. We have playgrounds and workplaces for students and freelancers. All this creates a special atmosphere.

— What steps should be taken to officially open a cafe in Turkey?

— It is necessary to obtain a tax certificate, open bank accounts, install systems for orders and payments, and obtain a business license. You also need permissions to broadcast music and produce food. I recommend that you always consult with lawyers and accountants.

— Can a foreigner open a business in Turkey?

— Yes, it is quite possible. Next to us, for example, a Dutch couple runs a bar. But you definitely need to get qualified legal assistance.

— What are the main difficulties you faced when opening a cafe?

— The main problem is the creation of a system. Everything is important: assortment, taste, supply stability, logistics. We solved issues with the target audience, the choice of location, and developed a marketing strategy. Legal support played a key role – it helped save time and money when processing documents.

If there are difficulties with setting up the system, it makes sense to join some major player in the market by opening a franchise cafe.

— What are the advantages and disadvantages of running such a business?

— Turkey is developing as a gastronomic destination, which creates opportunities for food & beverage business. But there is seasonality – there are much more customers in summer than in winter. It is important to evaluate competitors correctly and stand out for quality and atmosphere.

The choice of premises and the financial side of the issue

— How did you choose the room for the cafe?

— We were lucky to find a 140-year-old building in the center of Alanya. It is under the protection of the Ministry of Culture, so we rent it. We were attracted by his story and how his colors matched our corporate identity. Now it’s not just a cafe, but an attraction – people often take pictures of the building as they pass by it, and we conduct mini-tours.

— How much does it cost to rent or buy commercial real estate in Turkey?

— It depends a lot on the location. The cafe can be located on an area of 20 to 1000 square meters. In the center of Alanya, the rent starts from 4,000 euros per year and reaches 150,000 euros. Your concept and target audience are the main factors determining the rental price. Of course, you need to take into account the costs of repairs, maintenance and equipment.

— As a real estate expert, how do you assess the situation on the commercial real estate market in Turkey?

— Now is a great time to invest – prices have dropped significantly. I expect that in 2-2.5 years the real estate market will revive again. It is important to invest the available funds correctly. For example, a property that you bought in Alanya a year ago for 150,000 euros can now be found for 100,000 or even 90,000 euros. Working with the right brand and team will protect your investment.

— What initial investments may be required when starting a business in Turkey?

— It depends on the industry, but you can start with about 200,000 euros. I recommend adding expenses for the first year of work to the initial investment.

— What are the costs associated with doing business in Turkey?

— The main ones include the costs of:

Energy
Water
Salary for employees
Rent
Equipment
The costs of starting and registering a business
Income tax
Deductions

I strongly recommend seeking legal and accounting advice when conducting market analysis so that all processes run smoothly.

Tips for aspiring entrepreneurs

— How profitable is it to be a businessman in Turkey? What does the success of a business depend on?

— It depends a lot on yourself. What kind of person are you? What do you like — the service sector, buying and selling or investing? Turkey still provides opportunities for foreign investment. Success depends on how well you understand the market, choose a niche and adapt to local realities.

— What advice would you give to those who want to open a business in Turkey?

— Start with a dream and move towards it with firm steps. Don’t be afraid to experiment and bring your ideas to life. Strive to give customers a unique experience. Do everything efficiently, but at a reasonable price. If you have no experience, work in a similar business first – this is invaluable knowledge for the future.