Advice on opening a bike workshop in local Cafe/restaurant.

I run something similar out of a bike cafe in Scotland, basically I do a few set days a week and extra if more bikes come in. I don't do it for the money (you'll never earn much out of the bike industry!) but really enjoy my work, interacting with customers and many many tasty free coffee's and food.

Some notes that might be useful to you.
Working days vs evenings, defo days, and in the first instance just go straight in and be 'there' the whole alloted time, for the most part you aren't going to have a lot to do, but when people realise you are there on those days, they will come. It will save you more over even a short period of time (3-6 months) vs. 'I'm going to do mon + fri, but actually the first few weeks its been quiet so I'll just do mon', which quickly leads to a little negativity from locals who can't confirm you're there or not. You'll be amazed how quickly average bike riders (not avid cyclists) catch onto this fact.

Yes do the service + coffee thing. We trialed it for a while, slightly reduced standard service + coffee for less than book price, and we were already cheap compared to others and there was more folk than I knew what to do with! You can also hook up with the 5pm/deal/woucher type websites as they get you some free publicity to average bike rider type folk for a cut of your voucher value (arguably a lot!) e.g. Puncture repair + good coffee = £10!*
*dutchie bikes are extra, cos hatred for all them with their rusty philips screws holding the rear end together.

Be in the cafe, not in a shed outside, unless you live in the med where you can be outside all the time, a lot of folk won't notice you

Manage peoples expectations confidently. E.g. a 1 year old average quality hybrid comes in for a standard service, looking over it your confident it needs nothing other than an adjustment, but later turns out that two teeth on the pressed steel big ring are buggered (kerb) and you won't have one of those lying around. Which means it won't be same day, but +2 days for stock to arrive + 1 day to get it fitted as you aren't in that week.... It only takes a few of those to start bad noises about your business, and whilst yes its nice to be able to confidently say same day turnaround, unless you have infinite stock of parts, don't!

Don't bother selling new bikes, or if you do, just stick to one brand from one supplier and relevant to what your locals want. Everyone would like to see vintage porn and £8k carbon Di2 bikes all around their shops, but they don't sell at least not in any meaningful numbers. We just sell £300-500 town and hybrid bikes with the odd entry level road/commuter bike, and they sell well enough

BTW, most places have three levels of servicing, kind of an adjust only, then a fit some new cables and true wheels properly, adjust cup and cones etc, then a full frame strip and rebuild with fresh everything. In my time I would say 70% is the 1st, 20% the 2nd and 10% the full whack. So money wise you need to make sure your bottom level service is paying off, your aiming for a min of £25/hr labour turnover over the whole day inc breaks, chatting to folk, sipping coffee, changing gloves, ordering parts etc. So the numbers have to stack up**

**for the first 5 months where I'm at now, we had the entry level service about £10 too low, or rather I was doing a £45 job (anywhere else in the city) for £25, I was just about making money but having to work at higher speed and less accuracy than I would have liked. Now amended the price, customers literally are not fussed by the change, I can work at the speed I like to work at and everyone makes money, win!