6.10 Risk Register
Purpose
Every independent hospitality business carries risk.
The objective of this register is not to eliminate uncertainty, but to identify the principal risks facing LAMBA and establish practical strategies for reducing their impact.
Regular review of this document should form part of the long-term management of the business.
Commercial Risk
Premises unsuitable for the concept
Likelihood
Medium
Impact
High
Mitigation
Do not compromise on the building itself. Use the Site Evaluation Checklist before entering lease negotiations. Prioritise natural light, ceiling height, neighbourhood fit and long-term suitability over short-term availability.
Insufficient customer demand
Likelihood
Low–Medium
Impact
High
Mitigation
Build a loyal local customer base before focusing on destination visitors. Maintain consistent community programming and continue leveraging the existing My Analog Journal audience.
Average spend lower than forecast
Likelihood
Medium
Impact
Medium
Mitigation
Review menu pricing regularly, introduce seasonal dishes and signature drinks, strengthen retail sales and encourage balanced purchasing without increasing pressure on guests.
Financial Risk
Construction costs exceed budget
Likelihood
Medium
Impact
High
Mitigation
Maintain a contingency allowance of at least 10–15%. Prioritise essential works first and phase non-essential improvements over time.
Cash flow pressure during the first year
Likelihood
High
Impact
High
Mitigation
Maintain sufficient working capital before opening. Avoid excessive borrowing and allow realistic time for the business to establish itself.
Rising rent
Likelihood
Medium
Impact
High
Mitigation
Negotiate favourable lease terms where possible and avoid premises where rent exceeds the financial assumptions without exceptional strategic advantages.
Operational Risk
Founder burnout
Likelihood
High
Impact
High
Mitigation
Recruit reliable staff from the outset. Delegate operational responsibilities gradually and avoid designing a business that depends entirely on one individual.
Difficulty recruiting suitable staff
Likelihood
Medium
Impact
High
Mitigation
Prioritise personality, curiosity and cultural fit over technical experience. Invest in training and create a workplace that encourages long-term retention.
Equipment failure
Likelihood
Medium
Impact
Medium
Mitigation
Maintain preventative servicing schedules, retain relationships with equipment suppliers and keep essential spare parts where practical.
Supply Chain Risk
Coffee price increases
Likelihood
High
Impact
Medium
Mitigation
Work closely with trusted roasters, maintain flexible pricing where necessary and diversify supplier relationships.
Ingredient shortages
Likelihood
Medium
Impact
Low
Mitigation
Maintain a focused menu, use seasonal ingredients and avoid dependence on highly specialised products with limited availability.
Construction Risk
Delays in renovation
Likelihood
Medium
Impact
Medium
Mitigation
Allow realistic construction timelines, appoint experienced contractors and maintain contingency within both programme and budget.
Building constraints
Likelihood
Medium
Impact
High
Mitigation
Undertake thorough technical surveys before signing a lease and confirm ventilation, electrical capacity and planning requirements at an early stage.
Reputational Risk
Declining quality
Likelihood
Low
Impact
High
Mitigation
Protect quality above growth. Maintain high standards across coffee, hospitality, programming and maintenance regardless of business performance.
Loss of authenticity
Likelihood
Low
Impact
High
Mitigation
Continue making decisions according to the principles established within this handbook rather than following short-term hospitality trends.
External Risk
Economic downturn
Likelihood
Medium
Impact
Medium
Mitigation
Maintain accessible pricing, preserve strong local relationships and diversify revenue through events, retail and educational programming.
Increased competition
Likelihood
Medium
Impact
Low
Mitigation
Focus on what cannot easily be replicated: genuine hospitality, thoughtful curation, community, consistency and authenticity.
Overall Risk Philosophy
Risk cannot be removed entirely.
However, careful planning, disciplined financial management and a clear long-term vision significantly reduce uncertainty.
The greatest protection for LAMBA is not a single financial forecast or marketing strategy.
It is remaining consistently aligned with the principles upon which the project was founded.