How to Turn a Historic Building in Turkey Into a Popular Café: an Interview with an Entrepreneur From Alanya

Doğan Solmaz, owner of Ms. Neilos Coffees in Alanya, told us about his experience of opening and running a business in Turkey. After years of working in the tourism industry, he decided to start a new chapter in his life by opening a café. In this interview, Dogan shares with us practical tips on opening a business in Turkey, financial aspects, and secrets of attracting customers.

Specifics of Opening and Running a Business in Turkey

— Doğan, please tell us about your journey to opening a café in Turkey.

— The pandemic had a big impact on our family, and after 28 years in the travel industry, my dear wife and I decided it was time for a change. After moving to Alanya, I spent 4 years in management positions in the construction and real estate sectors. Then we noticed the growing popularity of coffee and decided to expand my cousin's business from Istanbul into the Mediterranean region. This is how Ms. Neilos Coffees in Alanya came into existence.

— What is the concept behind your coffee house?

— 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 beans from 12 countries, roast them according to our own recipes, and use modern brewing methods. We have playgrounds for children and workplaces for students and freelancers. All this creates a special atmosphere.

— What steps does one need to take to officially open a café in Turkey?

— You need to get a tax certificate, open bank accounts, set up systems for orders and payments, and get a business license. You also need permits to broadcast music and produce sweets and snacks. I recommend that you definitely consult with lawyers and accountants.

— Can a foreigner open a business in Turkey?

— Yes, it is quite possible. Near us, for example, a Dutch couple runs a bar. But it is absolutely necessary to get qualified legal assistance.

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

— The main problem is creating a system. Everything is important: assortment, taste, stability of supply, logistics. We solved issues with the target audience, chose the location, and developed a marketing strategy. Legal support played a key role — it helped us save time and money on paperwork.

If there are difficulties in setting up the system, it makes sense to join a major player in the market, opening a café on a franchise. 

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

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

Choosing the Location and the Main Costs

— How did you choose the premises for the café?

— We were lucky to find a 140-year-old building in the center of Alanya. It is protected by the Ministry of Culture, so we rented it. We were attracted by its history and the way its colors matched our corporate identity. Now it's not just a café but a landmark; people often take pictures of the building as they walk past it, and we give mini tours.

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

— It depends a lot on the location. A café can be located on an area from 20 to 1000 square meters. In the center of Alanya, rents start at 4000 euros per year and go up to 150,000 euros. Your concept and target audience are the main factors that determine the rent. 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, as prices have fallen 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 investment may be required when starting a business in Turkey?

— It depends on the industry, but you can start with around 200,000 euros. I recommend adding the first year's expenses to the initial investment.

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

— The main ones include costs for:

• Energy
• Water
• Employee salaries
• Rent
• Equipment
• Costs of starting and formalizing the business
• Income tax
• Withholdings

I highly recommend seeking legal and accounting advice when conducting a market analysis to ensure all processes run smoothly.

Tips for Aspiring Entrepreneurs

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

— It depends a lot on yourself. What kind of person are you? What do you like: the service industry, buying and selling, or investing? Turkey still offers 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 start 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 with quality, but at a reasonable price. If you don't have experience, work in a similar business first — it's invaluable knowledge for the future.