biz cafe business plan example

Cafe business plan template + PDF

In this article, you will find an exemplary business plan for a cafe, offering a detailed framework to guide you through establishing and managing your own cafe. It's crucial to understand that while all names and numbers in this cafe business plan template are invented for illustrative purposes, they can be adjusted to suit the specific needs and realities of your cafe business.

Additionally, for ease of use and customization, a "Cafe Business Plan PDF" is available for download. This article serves as an invaluable tool for entrepreneurs who are keen on developing a robust and practical strategy for launching or growing their cafe, providing a clear roadmap and comprehensive insights into the industry.

How this cafe business plan sample was created

To create a personalized business plan for your cafe, all you need to do is click on "Get your business plan" . You'll be prompted to answer a few questions about your cafe, providing essential details about your business. Our advanced AI system will then use this information to generate a comprehensive business plan tailored to your specific needs and goals. This process takes only 5-10 minutes, after which you receive a fully structured plan. The beauty of this system lies in its flexibility; you can edit and customize the plan to perfectly align with your vision. Once finalized, you have the option to save it to your computer, ensuring that your cafe/restaurant roadmap to success is just a few clicks away.

Cafe business plan sample

Executive summary, business description, market research and analysis, swot analysis.

• Organizational Structure and Management Team

Products or Services

Marketing and sales strategy, operations plan, financial projections, risk analysis.

In today’s bustling cafe industry, standing out entails more than a robust business model; it calls for a compelling executive summary that captures the essence and potential of the venture. BizCafe is built upon this very vision—a cutting-edge oasis for young professionals and students seeking a coffee experience that is both gourmet and homely, in addition to an efficient workspace. Positioned in the heart of New York, BizCafe is poised to challenge the conventional cafe atmosphere by combining specialty coffees, artisan teas, delectable pastries, satisfying light meals, and indispensable modern amenities like high-speed Wi-Fi and charging stations.

Despite challenging industry dynamics such as fierce competition, economic volatility, supply chain obstacles, and shifting consumer tastes, BizCafe’s strategic plan remains solid. It thoughtfully balances the appeal of our signature products and brand-building initiatives, employing distinctive branding and customized loyalty programs to build a devoted customer base. These offerings are intended to meld effortlessly into the lives of our target clientele, creating a sense of community and loyalty. In the event of heightened risks, our backup plans include diversified menus, local sourcing, and continued product development.

Within a varied competitive landscape that includes Java Junction, The Study Spot, Green Leaf Tea House, and Urban Grind, understanding different market positions is crucial for honing BizCafe’s competitive edge and creating a space that is both unique and adaptable.

Operations form BizCafe’s core, with exhaustive planning that ranges from securing key supplier partnerships to appointing trained baristas and support staff committed to unmatched customer service. Our operational strategies underscore regular quality control, smart inventory management, adhering to health and safety standards, and fiscal responsibility with recurrent assessments and careful budgeting.

Our financial projections suggest a positive outlook. We anticipate reaching a break-even point by the end of the first year and foresee a promising 20% revenue increase by the third year. With the projected growth, we aim to pursue expansion and diversification, setting a course towards a $1 million revenue milestone by the end of the fifth year.

Marketing and sales are integral to introducing and embedding the BizCafe brand in public discourse and consumer habits. An ingenious blend of social media activity, loyalty incentives, local events, and partnerships with nearby businesses is designed to uphold and celebrate the BizCafe ethos. This is supported by a robust digital foundation that ensures convenience through online ordering platforms and sustains community engagement with impactful email communication.

Driving this promising enterprise are seasoned leaders such as Co-Founders & CEOs Alex Taylor and Jordan Lee, who bring a wealth of experience in business management and finance. Operations Manager Riley Kim and Marketing Director Casey Morgan complete the leadership team, guaranteeing seamless operations and strong, consistent brand visibility.

As an LLC, BizCafe benefits from the agility needed to adeptly manage the unpredictable nature of the cafe industry, all while taking advantage of a tax structure that encourages growth.

In conclusion, this executive summary portrays BizCafe not just as another cafe in New York’s tapestry but as a beacon in its cafe culture—a sanctuary for today’s discerning, digitally connected patron and a strategic investment opportunity for tomorrow’s wise investor.

Located in the bustling heart of New York, BizCafe is primed to become the go-to destination for the city's energetic young professionals and the academically inclined student population. Designed as a Limited Liability Company, BizCafe harmoniously balances the vibrancy of an artisan coffee hub with the tranquility of a focused work sanctuary. This innovative cafe caters to the tastes and lifestyles of customers aged 20-35, offering an array of specialty coffees, artisan teas, as well as a handpicked selection of pastries and light meals.

Embraced by the convenience of high-speed Wi-Fi and charging stations, BizCafe is not just a place for savoring a cup of freshly brewed java but is also an inviting space for clients seeking a comfortable place to work, study, or unwind. With a central location, this cafe capitalizes on the fast pace of New York City, becoming a social landmark that facilitates productivity and leisure.

BizCafe prides itself on mitigating anticipated industry risks. Facing competition from establishments such as Java Junction, The Study Spot, Green Leaf Tea House, and Urban Grind, BizCafe differentiates itself through its unique branding and customer loyalty programs. In the event of increased rivalry, the management plans to diversify the menu and enhance loyalty incentives to retain customer fidelity. Economic fluctuations will be met with competitive pricing and value deals, while supply chain disruptions are countered with established relationships and buffer stock, complemented by local sourcing as a contingency measure.

Looking to the next 3-5 years, financial projections are optimistic. The first year is focused on reaching the break-even point, with a revenue aim of $500,000, setting the stage for profit as the brand gains recognition. Steadying itself for moderate growth, BizCafe expects to increase revenue by 20% annually in years 2 and 3 and is planning an expansion that may include a second location or enriched services by year 5, hoping to surpass the $1 million revenue mark.

Within the café, operations pivot around supreme supply chain management, premium staffing, unwavering quality control, and sophisticated inventory management. Staff are selected for their skills and commitment to customer service, with a rotational shift system ensuring comprehensive coverage. In-house financial and customer service processes are evaluated routinely to align with the cafe's high standards.

The marketing and sales strategy is equally robust with a dynamic approach to embrace digital platforms. Social media marketing, loyalty programs, community engagement, collaborations, and a formidable digital presence all form pillars of BizCafe's promotional endeavors. Customized email marketing further personalizes the brand experience, resonating with the targeted clientele.

Leadership is the backbone of BizCafe's operation. Co-Founders Alex Taylor and Jordan Lee embody the essence of keen business acumen and financial mastery, while the operational finesse of Riley Kim and Casey Morgan's marketing expertise provides the momentum behind customer-centric initiatives.

Together, the tapestry of a digital-friendly environment, savvy marketing, responsive risk management, and a crystalline growth trajectory present BizCafe as an enterprise that blends traditional café culture with the innovative spirit of modern entrepreneurship. With a client base that revels in quality and a company ethos grounded in adaptability, BizCafe is on the verge of becoming a cornerstone in the cafe industry, directing its compass towards success in the years to come.

In a city renowned for its perpetual motion and varied tastes, BizCafe emerges as an innovative player in the cafe industry. Market research indicates an uptick in demand for spaces that offer both premium refreshments and conducive environments for work and socialising. By focusing on the 20-35 age group, BizCafe taps into a market niche of young professionals and students who seek quality, convenience, and experience in their choice of hangout spots.

Competition within New York's café landscape is intense but distinct. Java Junction is a chain with a time-efficient service model that resonates with customers on-the-go. BizCafe's strategy of personalised service and loyalty programs sets it apart, fostering a unique community feel and customer retention. The Study Spot, with its quietude and scholastic environment, draws in a specific crowd; however, BizCafe's added value of specialty beverages and high-speed Wi-Fi conducts a broader appeal. Meanwhile, Green Leaf Tea House and Urban Grind border on niche appeals, the former stressing on health-centric offerings, the latter on aesthetic ambiance. BizCafe strategically positions itself as a service-centric and versatile establishment that can address the shifts in consumer patterns by adroitly adapting its menu and atmosphere.

Navigating potential risks necessitates diligent planning. BizCafe recognises the threat of economic downturns, intense competition, supply chain volatility, and fluctuating consumer tastes. Each risk is counterbalanced by a strategy designed to not only mitigate but also to create opportunity from adversity. Unique branding and diversified menus cater to competition risks, whereas competitive pricing and efficient operational adjustments safeguard against economic variance. A robust supply chain buffer and local sourcing answer the call of disruptive external factors.

Financial projections posit a promising horizon for BizCafe. Upon surpassing the break-even point in its inaugural year, a steady climb in revenue suggests sustainability and growth. By years 4-5, expansion plans are on the horizon, contemplating a secondary venue or enhancing service diversity, paving the path toward a revenue benchmark of approximately $1 million.

BizCafe's Operations Plan is a well-oiled machine, prioritising impeccable supply management, adept staffing and training, and rigorous quality control. Inventory is precisely managed with cutting-edge software, neatly dovetailing with meticulous facility maintenance and customer service excellence. Financial health is overseen by an experienced CFO whose oversight is crucial in navigating the fiscal waters and securing profitability.

The marketing and sales approach is multifaceted. From savvy social media campaigning to targeted loyalty programs and community engagement, BizCafe understands the value of creating a narrative that resonates with its clientele. Partnerships with local enterprises and colleges further entrench the café within its commune, while an efficient digital presence caters to the tech-savvy customer base.

Leadership is paramount in orchestrating this symphony of business components. A management team with a fusion of experience in business administration, operations management, finance, and marketing provides the tactical expertise necessary to propel BizCafe into a mainstay of New York cafe culture.

In summary, BizCafe is positioned to carve out its market share in the energetic New York cafe scene. Through strategic risk management, financial prudence, operational excellence, and innovative marketing, BizCafe is poised for growth and success in the ever-evolving café industry.

Cafe business plan template

Organizational structure and management.

At the heart of BizCafe’s operations is a meticulously designed organizational structure blended seamlessly with a strategic management approach that nurtures the establishment’s vision of providing premium refreshments in a conducive environment for work and relaxation. Responding to the needs of young professionals and students in New York, BizCafe emerges as a bastion of social interaction and productivity, coupled with the indulgence of gourmet coffees and teas.

The organizational design of BizCafe is anchored in clear-cut roles and responsibilities that promote a collaborative work culture while ensuring efficiency at every managerial and operational level. The leadership team is composed of seasoned professionals with complementary skills and expertise, shaping a cohesive unit that drives forward the company’s objectives.

Alex Taylor, the Co-Founder & CEO, brings a decade of hospitality industry experience and astute business management know-how. Alex’s insight into customer service excellence ensures that BizCafe not only meets but exceeds customer expectations. Jordan Lee, Co-Founder & CFO, with an MBA in finance, navigates the fiscal waters with precision, laying down a robust financial groundwork that underpins the projected growth of the venture.

Directing daily activities is Riley Kim, the Operations Manager, whose operational management prowess and in-depth knowledge of the food and beverage sector ensure that the café operates like a well-tuned engine. With a focus on implementing efficient operational workflows, monitoring inventory, and ensuring staff training is up to par, Riley forms the backbone of BizCafe’s organizational prowess.

Bringing the brand to life is Casey Morgan, the Marketing Director. With a rich background in brand development and digital marketing, Casey is instrumental in carving out BizCafe’s space in a crowded marketplace, pioneering innovative strategies that encapsulate the brand’s ethos and resonate with the target audience.

In confronting industry-specific challenges, BizCafe leverages a proactive risk mitigation framework. To counter fierce competition, the café distinguishes itself with unique branding and customer loyalty programs whilst remaining adaptable, with plans to diversify the menu and refine loyalty rewards should the need arise. Economic downturns are confronted with competitive pricing and keen value deals, backed by strategies to slash operational costs without compromising quality. The threat of supply chain disruption is addressed through multi-faceted supplier relationships and the maintenance of a buffer stock; contingency plans include procuring supplies from local purveyors. Changing consumer preferences are met with a continuously evolving menu informed by customer feedback, with rapid adjustments poised as a standby response to market trends. Regulatory changes are attentively monitored and promptly adhered to, with staff training ensuring compliance.

Projected financial targets are optimistic yet grounded, aiming for a break-even in the first year with subsequent annual growth. Strategic planning anticipates not just the upholding of a strong financial position but also the potential for expansion within the next five years, including the prospect of opening a second location or augmenting service offerings, buttressed by solid profitability and a well-entrenched brand reputation.

Marketing and sales imbue BizCafe with vibrancy, harnessing the power of social media marketing, community engagement, and digital outreach to create and nurture a loyal customer community. Loyalty programs incentivize repeat patronage, and partnerships with nearby businesses amplify the café’s presence and appeal.

In sum, BizCafe stands as a paradigm of a well-structured and astutely managed establishment, blending operational excellence and strategic acumen to deliver an unparalleled café experience and robust business performance. With an eye toward sustainability and another on innovative expansion, BizCafe is well-poised to become an emblematic landmark in New York’s coffee culture landscape.

BizCafe, endeavoring to become the favored haunt for the city's spirited young professionals and scholars, is a burgeoning sensation in the cafe industry. Our establishment seamlessly marries the artistry of specialty coffees and artisan teas with freshly crafted pastries and light meals that answer the call of diverse palates. BizCafe is more than just a retreat for coffee aficionados; it is also a nexus for connectivity, offering high-speed Wi-Fi and ample charging stations, crafted for those who yearn for a comfortable niche to work and study.

Our "Products and Services" section is designed to highlight the values and operational tenets that set BizCafe apart in an industry teeming with competition. We present an inviting atmosphere, friendly to both brisk morning commutes and leisurely afternoons. The sumptuous café offers an expanse where work, study, and informal meetings can unfold in comfort—a rarity in the frenetic pace of New York.

Economic downturns, competition, supply chain disruptions, and changing consumer preferences—the cafe industry is no stranger to these potential risks. To safeguard our venture and flourishing brand against these, we employ strategic forethought. Our robust branding and customer loyalty programs act as our shield against competition, with contingency plans to further diversify our menu and bolster those same loyalty offers if the market demands. We counter economic challenges with competitive pricing strategies complemented by precise operational cost management. We have fostered relationships with a broad network of suppliers and stock contingencies to ensure consistent provisions, with local sourcing as a standby plan against supply chain challenges. We keep our ears to the ground, adapting our menu to reflect market trends and customer feedback, always ready to implement rapid adjustments to meet evolving tastes.

Operational efficiency is the linchpin of our endeavor. With a keen eye on quality and customer satisfaction, we meticulously manage our supplier relationships, staff expertise, inventory, facility maintenance, and regulatory compliance. Our Operations Plan details the measures in place to maintain excellence all-round—from sustainably sourced coffee beans to the engaging customer service delivered by our handpicked team of baristas—all to orchestrate the perfect cafe experience.

BizCafe navigates the marketing arena with as much acumen as it brews espressos. Our Marketing and Sales Strategy is a keen fusion of online dazzle and offline substance. We utilize the sticky webs of social media to captivate our audience, forge loyalty through rewards programs, engage our community through vibrant events, and amplify our reach via collaborations with local businesses.

The coalescence of ambition and management comes into play when we shine a light on the key members of our team. Alex Taylor and Jordan Lee at the helm, their seasoned expertise in business management and financial acumen respectively, ensure that strategic direction and economic stability are a part of the company's bedrock. Bolstered by Riley Kim's operational oversight and Casey Morgan's dynamic marketing campaigns, BizCafe is a testament to exemplary leadership and team synergy.

Financial projections for BizCafe elucidate a narrative of growth and success. We anticipate a breakeven by year-end, which sets the pace for progressive revenue increases in the following years, ideally pivoting towards a significant milestone—potentially reaching a projected revenue of around $1 million by the fourth or fifth year.

Summarily, BizCafe is an enterprise that reverberates with the promise of quality, comfort, and connectivity, grounded firmly on the bedrocks of strategic risk management, operational integrity, and customer-centric growth plans. As we chart our course in New York's dense cafe sector, we remain dedicated to serving not just cups of specialty beverages but also fostering a dynamic hub of activity and relaxation that resonates with the city's beat.

Café business plan

In crafting the Marketing and Sales Strategy for BizCafe, we begin by addressing the fundamental attributes that set BizCafe apart. Our diverse offering of premium specialty coffees, artisan teas, savory pastries, and light meals is crafted to align with the tastes of our target demographic: young professionals and students who desire a blend of quality, convenience, and comfort. With facilities like high-speed Wi-Fi and readily available charging stations, we cater to the productivity and connectivity needs of our customers.

Our marketing framework is designed to communicate these core benefits effectively to our target market. Recognizing the inherent risks in a competitive industry, we've laid out strategies to mitigate these and developed contingency plans. Against competition, we counter with our boutique branding and tailored loyalty programs to foster a strong customer base. Should the competitive landscape intensify, we are prepared to diversify our menu and amplify our loyalty program benefits, further differentiating BizCafe.

In dealing with economic downturns, we focus on positioning our offerings as competitively priced without sacrificing quality. We also streamline operations and collaborate with cost-effective suppliers to maintain healthy margins. For supply chain disruptions, we've cultivated relationships with multiple vendors and maintain buffer stock levels. As an alternative if needed, we have contingencies to source locally.

To keep pace with evolving consumer preferences, we employ ongoing dialogue with our clientele, maintaining flexibility to adapt our offerings swiftly. To ensure readiness for any regulatory changes, we maintain an informed and proactive stance, with training programs to quickly bring staff up to speed on new requirements.

Our approach to market penetration and growth is multi-faceted. We blend organic and paid strategies, including:

• Social Media Marketing : We prioritize engagement on platforms like Instagram and Facebook, where our visual content can shine and resonate with the younger audience. We plan to utilize targeted ads, influencers, and content marketing to bolster our online presence and drive foot traffic.
• Loyalty Programs : We leverage loyalty programs to maintain high customer retention rates, offering rewards that incentivize repeat visits.
• Community Engagement : We understand the value of an integrated community; hence, we host events and workshops aimed at building relationships and encouraging networking within our space. These events range from coffee tastings to productivity workshops, appealing to our demographic of professionals and students.
• Collaborations with Local Businesses and Educational Institutions : Partnering with like-minded businesses and local colleges allows us to extend our reach through cross-promotion while also tapping into existing networks of potential loyal customers.
• Digital Presence and Online Ordering : Given the proclivity of our audience for digital convenience, we maintain a strong digital presence through a user-friendly website and online ordering capabilities for pickups and deliveries.
• Email Marketing : Through carefully curated newsletters, we share updates, promotions, and exclusive offers to maintain engagement with our existing customer base, ensuring that BizCafe remains top-of-mind.

In parallel with these efforts, we recognize the need for a firm foundation. The organizational structure of BizCafe, an LLC, offers flexibility in management with personal liability protection for the owners. Our key management team members, each expert in their field, ensure operations align with strategic goals.

In summary, the Marketing and Sales Strategy for BizCafe is robust, diversified, and perfectly tailored to our target customer's lifestyle. It intertwines BizCafe’s core service offerings with innovative promotional tactics that are set to carve out a significant market share, promising growth, and an irreplaceable spot in our community's daily routine.

BizCafe, nestled within the vibrant streets of New York, is set to reinvigorate the traditional café experience by aligning it with the contemporary lifestyle and preferences of our target market—students and young professionals aged 20-35. Our operations plan is conceived to underpin this dynamic business model by ensuring efficiency, quality, and customer satisfaction.

Our strategic location—a nexus of cultural diversity and a hub for millennial activity—provides BizCafe with the advantage of tapping into a rich customer base yearning for a unique café experience. The provision of high-speed Wi-Fi and charging stations distinguishes us from traditional coffee shops, catering to patrons who seek a conducive place to work or study while indulging in our specialty coffees, artisan teas, and an assortment of pastries and light meals.

Addressing the operational execution, BizCafe will adopt a meticulous approach towards supply management. We shall form strategic alliances with reputable local suppliers to ensure a consistent supply of premium-quality coffee beans, tea leaves, and fresh ingredients for our culinary offerings. These partnerships will enable us to maintain our commitment to quality and sustainability—a fundamental trait of the BizCafe brand.

We recognize that our staff are the ambassadors of our brand. Hence, we will employ skilled baristas and support staff who exhibit a combination of technical expertise in coffee-making and a passion for customer service. A rotating shift system will be implemented to optimize staff utilization across our business hours, ensuring that our service quality does not waver during peak times.

In our quest for excellence, quality control remains paramount. Routine training sessions will be conducted to educate our staff on food safety and the meticulous preparation of our beverages, thereby upholding our promise of consistently high-quality products. We shall leverage advanced inventory management software to monitor stock levels, minimize waste, and streamline the replenishment process.

Realizing the necessity of maintaining an inviting and operational facility, we commit to routine maintenance checks of our café space and the upkeep of our coffee-making equipment. This ensures a pleasurable ambience for our customers and uninterrupted service delivery.

Our financial management, spearheaded by our CFO, will involve regular reviews and proactive budgeting to keep our financial goals on track. This financial foresight, coupled with the implementation of a comprehensive customer feedback system, will enable us to respond adeptly to market demands and elevate our service offerings.

Health and safety compliance is non-negotiable. We pledge to adhere rigorously to local health and safety regulations, conducting regular staff training and audits to foster a safe environment for both our patrons and our team.

BizCafe’s operations plan is not merely a blueprint for daily management but a reflection of our commitment to excellence in providing a compelling café experience. With this at our core, we set forth on a path to build BizCafe into a revered brand synonymous with quality, innovation, and unmatched customer service.

Cafe business plan example

The Financial Projections section provides a forecast that is essential for understanding BizCafe's potential for growth, profitability, and financial stability. This forecast is based on a comprehensive analysis of the current market, comparable business models, consumer behavior, and the broader economic climate. While projections inherently contain assumptions and estimations, they aim to present the most probable outcomes given the business environment and strategies in place.

BizCafe’s financial journey commences with the strategic objective of reaching its break-even point by the end of the first operational year, which aligns with projected revenues of approximately $500,000. Achieving this milestone will signify the successful penetration of BizCafe into the cafe industry and establish a strong foundation for subsequent growth. To facilitate this target, marketing efforts will be ramped up to raise brand awareness and drive traffic to the storefront. Cost management will also remain at the forefront, ensuring expenses are aligned with our growth strategy.

The following years, two and three, are projected to herald a period of steady growth. With established brand recognition and an expanding loyal customer base, we anticipate revenue growth of approximately 20% annually. This growth will be driven by a combination of factors, including an increased adoption of BizCafe's loyalty program, the introduction of new menu items in response to market trends, and strategic marketing campaigns designed to expand our reach. During this period, we anticipate revenues to reach approximately $720,000 by the end of year three, and we project improvement in profit margins due to enhanced operational efficiencies and economies of scale.

Years four and five mark the expansion phase for BizCafe. Fortified by a strong, loyal following and increased cash flows, this chapter will explore new avenues for expansion, which may include the opening of a second location or diversifying service offerings to cater to additional segments, like corporate catering or evening social events. These growth opportunities could further augment revenue, with a possibility of surpassing $1 million by the close of year five.

Throughout this five-year span, BizCafe will remain steadfast in executing our marketing and sales strategies to support these financial goals. Our multi-channel approach, which includes establishing a substantive digital presence, engaging with the community, partnering with local businesses, and consistent brand messaging, will be instrumental in driving sales and increasing profitability.

In preparing these financial projections, we also recognize and plan for potential risks and have formulated mitigation strategies. From the outset, BizCafe will establish a contingency reserve to safeguard against unexpected economic downturns, competitive pressures, or supply chain disruptions, ensuring operational stability and financial resilience.

The projected performance is reliant on the strategic execution by our experienced management team, who will maintain vigilant oversight of financial health. CEO Alex Taylor will lead the charge with a focus on cultivating a high-performing team and elevating the customer experience, while CFO Jordan Lee will enforce rigorous financial controls to safeguard against overspending and cash flow shortfalls.

In summary, BizCafe’s financial projections are rooted in a blend of conservative assumptions and strategic optimism. Our envisioned growth trajectory capitalizes on market opportunities and prudent financial management, positioning BizCafe as a compelling new entrant in the New York cafe sector with robust prospects for enduring success.

Cafe business plan

Risk management is a critical component for the success of any business, and BizCafe is no exception. Our risk analysis outlines potential challenges that BizCafe may face and establishes mitigation strategies and contingency plans to navigate these risks effectively.

Competition

The café sector in New York is highly competitive, with several key players such as Java Junction, The Study Spot, Green Leaf Tea House, and Urban Grind already established in the marketplace. Each competitor brings strengths to the table: Java Junction's wide variety of coffee blends appeals to busy professionals; The Study Spot attracts students and academics with a quiet atmosphere; Green Leaf Tea House draws in health-conscious clientele with organic offerings; and Urban Grind is favored for its trendy ambiance among young adults.

To mitigate this risk, BizCafe’s strategy hinges on unique branding and building a strong customer loyalty program that incentivizes repeat visits. Our contingency plan includes diversifying our menu options and enhancing loyalty programs to retain customers and attract new ones, even in a saturated market.

Economic Downturns

Providing luxury discretionary products such as specialty coffee, economic downturns could pose a significant risk to BizCafe’s profitability. Customers may cut back on non-essential spending during these periods.

Mitigation for this risk involves offering competitive pricing and creating value deals that are attractive to customers looking for affordable luxury. Our contingency includes reducing operational costs, such as renegotiating leases or finding cost-effective suppliers without compromising the quality of our products.

Supply Chain Disruption

Supply chain volatility can affect the availability of critical inputs like coffee beans, specialty teas, and baked goods. This risk could be caused by global events, natural disasters, or other unforeseen disruptions.

To counteract this, BizCafe will establish relationships with multiple suppliers and maintain a buffer stock to safeguard against short-term disruptions. The contingency plan focuses on developing local sourcing alternatives to reduce dependency on distant supply chains.

Changing Consumer Preferences

Consumer tastes in the food and beverage industry are constantly evolving. Failure to adapt to these changes can result in loss of market share.

Our approach includes staying abreast of industry trends and customer feedback to adapt our menu accordingly. As a contingency measure, BizCafe is prepared for rapid menu adjustments and the roll-out of new products, keeping our offerings fresh and aligned with customer preferences.

Regulatory Changes

Operating in the food and beverage industry, BizCafe must comply with numerous regulations concerning health and safety, labor laws, and food standards. Regulatory changes could impose additional costs or require operational adjustments.

Our mitigation strategy involves staying informed of regulatory changes and ensuring full compliance. Should significant regulatory changes be implemented, our contingency plan includes swiftly revising operational practices and investing in staff training to meet new requirements.

Financial Management

BizCafe’s financial health is paramount to its success. Poor financial management could lead to cost overruns, inadequate cash flow, and ultimately, business failure.

To mitigate this risk, regular financial reviews and strict budgeting practices will be instituted, overseen by our experienced CFO, Jordan Lee. Our risk-averse financial strategy involves conservative projections with room for agile adjustments to the market’s ebbs and flows.

In conclusion, BizCafe's risk analysis is comprehensive, taking into account a multitude of factors that could influence the café's success. By employing proactive mitigation strategies and having robust contingency plans, BizCafe is poised to address these risks effectively while remaining focused on delivering exceptional service to our target market.

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How to Write a Business Plan for Opening a Cafe

• by Lightspeed

minute read

So you’re thinking of opening a cafe. We salute you. A well-crafted cafe is a bedrock of your community, a welcome stop in any big city, an oasis in your town and a second home for your regular customers. Before you can open a cafe, though, you have to create a cafe business plan.

Think of your plan as a roadmap for your entrepreneurial adventure—one that’s easier to create than you might think! In this article, we’ll show you how to write a business plan that will set your cafe up for success.

How to write a business plan for opening a cafe

What is a cafe business plan, start with your vision, study other business plans, building your business plan template, section 1: the executive summary, section 2: how will your cafe business succeed, section 3: study your competition, section 4: analyze your target market, section 5: tell us what you’ll sell and how you’ll sell it, section 6: create a marketing plan, section 7: ownership structure, section 8: your operations plan.

• Section 9: Financial planning

Section 10: Plans for growth

Finally, we’ll end with an example business plan to show you what it looks like in action. 

Streamline your cafe’s workflow with the right technology

Watch the free demo to see how Lightspeed’s restaurant POS can optimize and adapt to your cafe’s specific operations.

  Want a quick summary of what to include in your cafe business plan? Consult this handy table. 

At its core, a cafe or coffee shop business plan is a document that explains what your business idea is and how it will succeed. It answers questions like how much it costs to set up shop, how those costs will be funded and how much money you expect to make from your cafe. A coffee shop business plan includes information about your competitors, target market and pricing structure.

When it’s finished, your business plan can be shown to potential investors, bankers, partners and anybody else who will help you open your cafe. As you can probably tell, it’s an extremely important document, so it’s worth your time and effort to get it right. First, you’ll learn about all the different pieces of information that will go into your business plan and then we’ll help you pull the pieces together.

A business plan is the first step in making your cafe-ownership dream a reality, so take time to dream by laying out your vision for your future cafe or coffee shop. What will your cafe look like? How will it be decorated? Where will it be located? Which items will you sell? Who will frequent it? How will your customers navigate your cafe, from the moment they walk through the door to the moment they swip e or tap their credit card to check out?

Pull inspiration from cafes you love, images you’ve seen, your favorite films or books, even your travels. Then write it all down or post pictures on a wall to create an inspirational mood board . As you spend hours working on your business plan, it will be incredibly motivating to glance up at your initial vision and be reminded of the finish line.

Before you pen your masterpiece, look at business plan examples from your industry: cafes, coffee shops and quick-serve restaurants. Study how they planned their business and make sure that your cafe is on the right track.

Real-world examples from business owners are also invaluable. Seek out current or former coffee shop owners or even franchise owners in your town and ask them how they succeeded and what they would have done differently. While you’re at it, you can seek recommendations for, say, an accountant who can help you write your business plan. Even if local business owners are your future competition, they might be willing to share their experiences.

A blank page can be overwhelming, but there are countless business plan templates available online to help get your started. We’ve outlined the basic sections you should include in your business plan below, as well as further tips on how to build out each one. 

At the end of the day, your template doesn’t have to be fancy or include imagery. The most important thing is that it contains all the necessary information and is logically organized so it’s digestible to anyone reading it.

When a reader opens your business plan, they will see the executive summary first. This gives a high-lev el overview of all the sections in your business plan. A well-written executive summary will get your foot in the door, so be sure to read examples to get a feel for how the summary is worded and to see how all the information is presented.

Just as you thought about the customers who will visit your soon-to-be-open cafe, consider who will read your business plan and tailor the opening paragraphs to your audience. As you’re preparing to open your cafe, your executive summary is the most important marketing tool your cafe has.

It’s designed to capture the attention of your reader, and give them an overview that’s brief and compelling. Here are some tips on writing a strong executive summary:

• Clearly state the purpose and unique value proposition of your business at the start
• Highlight what sets you apart from competitors
• Take your audience and potential investors into consideration as you write
• Summarize the business opportunity you’re presenting

The second section answers questions like, “What problem does your cafe solve?” and “How will your cafe be the solution?” Maybe there is no coffee house or cafe in a busy retail center near you. Or maybe a restaurant just closed downtown.

This summary provides a brief overview of your industry, mentions where your cafe will be located and describes how it will stand out. Will your shop specialize in breakfast sandwiches near an airport? Sell your locally famous pie? You’ve envisioned how your future cafe will be a success. Make sure the readers of your business plan understand that too.

You can talk about the following in this section:

• Your cafe’s unique selling points (these could relate to your menu, brand, other offerings, etc.)
• Your location strategy (how will you maximize foot traffic? What factors were involved in your decision?)
• What your menu will look like compared to competitors 
• A sneak peek into your marketing strategy (more on that later, though)
• How you’ll optimize your operations for efficiency, cost-effectiveness, etc.

The next part of your business plan is usually referred to as the competitive analysis . It explains how your cafe will compete with similar food and beverage businesses—including big coffee chains like Starbucks and fast food giants like McDonald’s. Nearby restaurants, coffee shops and even public gathering areas like movie theaters are all your competition. So now is the time to do the research of visiting your potential competitors and making a note of who their customers are, as well as what’s for sale and how much it costs.

By understanding the pricing strategy for similar businesses, you’ll know how much you need to charge for your coffee, pastries, sandwiches and whatever else you’re selling in order to remain competitive in your particular market. Gross margins (the amount of money you make based on what you sell) for cafes and coffee shops can be high, but small cafes have notoriously small operating incomes (read: profits) due to the high cost of overhead.

However, if you put in the time to undertake a thorough analysis of your competition, your cafe has a higher chance of being successful. By writing down how your cafe will compete against similar businesses, you will convince your reader (and, most importantly, yourself) that your goal of opening a restaurant or cozy cafe is realistic and sustainable.

In order for your cafe to succeed, it needs a steady flow of customers. Unfortunately, attracting foot traffic is not quite as easy as “if you build it, they will come.” In your business plan, your future customers are known as your market , the number of potential customers is your market size and how you’ll reach them is your marketing plan. 

In your cafe or restaurant business plan, you’ll then take your market and divide it further into market segments . For example, if your coffee shop or cafe is close to an elementary school, a market segment might be parents or caretakers who stop by for high-end coffee after dropping their children off at school. Or college students studying for exams as they swig espresso. 

Now that you know what the competition charges, it’s time to create a pricing strategy for your cafe. 

When creating your menu and prices , be smart. You’ll be buying ingredients in bulk, so try to use the same ingredients in many different dishes. Are you thinking of selling wine at your cafe? Liquor, like coffee, offers some of the largest profit margins in the industry, but a liquor license will cost you money and there may be a waiting period, so you might want to start with non-alcoholic beverages.

Don’t be afraid to get creative. If you charge less for a croissant and coffee combination than you do for those items alone, you’ll encourage customers to buy more and cut down on food waste . Once you open for business, you’ll probably end up making changes to your menu. But for the purpose of a business plan, you’ll need to know how much you will charge for the coffee or soup you plan to sell, which you’ll determine by breaking down the ingredients needed to make each item and researching your competition.

Take Toronto cafe and bakery Le Beau , for instance. They’re known for their freshly baked croissants, which come in many different flavors. People go to the cafe specifically for their famous croissants, and of course usually end up buying other items as well. If you want to cultivate this type of loyalty, you’ll have to start early. 

Your marketing plan can be part of your sales plan or it can be a separate section. Will you advertise your specials every morning on social media ? Will you partner with another local business for special promotions? In addition to marketing, this is also a great section to explain your plans for retaining your customers. Will you offer loyalty programs or have your employees give your top customers a free cookie on their birthday? With a cafe point of sale system , it’s easier than ever to reward—and keep—the customers who will frequent your cafe. 

It’s also important to create a strong brand identity. Allow this to guide your marketing plan so that the reader is confident that your business will be able to create more successful marketing campaigns. 

You can also include information about:

• Using your online presence to market your business
• Whether you’ll implement customer loyalty programs 
• Events you plan to host to boost your business profile
• The programs and tools you’ll use to monitor the progress of your marketing initiatives

Your business plan will include the ownership structure of your business. Explain how much experience you and your partners bring to the table and why you’re the right person (or people) to go into business.

Clearly outline the legal structure of your business and what form that will take. That could be an LLC, corporation, sole proprietorship or partnership. To further legitimize your business plan, identify the roles and responsibilities that each owner or partner will take on. Explain how you’ll work together to ensure effective management and decision-making. 

You could even include any plans or contingencies for future ownership, as well as the governance structure of your business and how decisions will be made. 

In this section, you’ll include information about your facilities, employees, equipment and supplies. Think about the direct costs of rent, barista wages, ingredients like coffee beans and technology. Try to get many services out of individual tools, like a POS system that lets your customers check out, your part-time employees clock in and also manages the inventory of your cafe. This will maximize your efficiency and allow you to run your business from one platform, which your employees and customers will also benefit from. 

Approximate how often you’ll need to reorder ingredients like flour and eggs. Carefully considering your operating costs during the business planning stage pays off. For instance, a coffee roaster is an upfront start-up cost, but roasting your own coffee at your cafe can save you operating costs in the long run. Save money where you can (secondhand chairs, anyone?) and don’t scrimp where it’s important, like your espresso machine.

Section 9: Financial planning 

Now you’re ready to craft a financial plan for your cafe. This is usually the most time-consuming and important section of your business plan, especially for lenders and investors. It should include an overview of your start-up costs, an income statement, projected cash flow, a balance sheet and a break-even analysis .

Startup costs

You’ve heard the adage that it takes money to make money, and this is because most businesses need initial funding to get them off the ground. A major reason you might be writing a business plan in the first place is to secure funding, like a business loan, for your cafe, but remember that your start-up funds can come from anywhere. How much money do you need to borrow? Will you dip into your savings? Crowdfund from your fans? No matter where you find your initial financing, a business plan lays out how your cafe will be funded and how that money will cover your business start-up costs.

Income statement

Once you know your start-up costs, operating costs, pricing strategy and target market, you are ready to lay out all this information into an easy-to-digest income statement . Take all of your expenses (mainly operating costs) and your projected sales volume (the amount that you are selling each month based on your pricing strategy and market research) to prove that your cafe business will turn a profit. In your case, create a projected monthly income statement for the first year your cafe will be in business. Explore some examples of income statements to see what your final analysis will look like.

Looking ahead to the future

A big part of writing a business plan for your cafe is figuring out the projected cash flow your cafe will earn over time. Depending on the audience for your business plan, you may have to project your cafe’s cash flow up to five years in advance, broken up into months or quarters. Though this exercise might seem difficult, it’s not impossible. You’ve already completed most of the financial legwork.

Combine those crunched numbers with your personal experience as a customer and a worker to project how much money your cafe will make in the future. Consider seasonal differences, like a spike in business around the holidays if you’re in a busy shopping district, or a lull in business during the summer if your cafe caters to college students. Just like your income statement, these cash flow projections will go into your business plan as easy-to-view statements.

Balance sheet

A balance sheet details the assets, liabilities and equity of your cafe business on the day it opens. It’s generally used to determine how much money a business has to work with. For a small cafe, it’s not as important as the income statement, but it’s useful as a realistic snapshot of the financial health of your restaurant.

Breaking even

Now that you’ve detailed how you will make a profit and you know how much money you are working with, you can approximate how long it will take your cafe to turn a profit. This is called the break-even point.

Section 10: Planning for growth

Include a section that discusses potential avenues for expansion in the future. This will show important stakeholders you’ve already started thinking about the future direction of your business.

Review the scalability of your business model and operations to support expansion efforts effectively. Determine whether the infrastructure, systems, and processes you’ll start with can support your visions of growth.

The opportunities you mention could include opening additional cafe locations in new neighborhoods or cities, expanding your product offerings to include catering services or packaged goods, or diversifying into related businesses such as coffee roasting or wholesale distribution.

Example business plan

We’ve created a business plan for a hypothetical cafe called Sip & Savor Café. Keep in mind that it’s shorter than is typical. 

Section 1: Executive summary

Sip & Savor Café is a quaint yet vibrant coffee shop nestled in the bustling downtown district. Our vision is to create a welcoming space where patrons can indulge in artisanal coffee, delectable pastries, and light bites while fostering connections and savoring moments of tranquility amid the urban hustle. With a dedication to exceptional service and a commitment to community engagement, Sip & Savor Café aims to become the preferred destination for coffee enthusiasts and locals seeking a reprieve from the daily grind.

Section 2: How Sip & Savor will succeed

Sip & Savor Café will differentiate itself by offering a curated selection of specialty coffees, locally sourced ingredients, and unique menu offerings that reflect the diverse tastes and preferences of our customers. Our prime downtown location, near office buildings and shopping centers, will maximize foot traffic and visibility. We will optimize our operations for efficiency and cost-effectiveness by selecting suppliers carefully and using a streamlined tech solution while maintaining a strong emphasis on quality and customer satisfaction.

Section 3: Competitive analysis

Through a comprehensive competitive analysis, we have identified key competitors in the area, including national coffee chains and independent cafes. By offering personalized service, a welcoming atmosphere, and distinctive menu items, Sip & Savor Café will differentiate itself from competitors and attract a loyal customer base. We’ll also create a strong loyalty program for our customers to rival the likes of big chains.

Section 4: Our target market

Our target market includes urban professionals, students and local residents seeking a convenient and comfortable place to enjoy coffee and light meals. We’ll create a space that encourages people to sit, stay and work. By understanding the preferences and behaviors of our target market segments, we will tailor our offerings and marketing efforts to effectively reach and engage with our customers. 

Section 5: What we’ll sell

Sip & Savor Café will offer a diverse menu of specialty coffees, teas, and seasonal beverages, accompanied by a selection of freshly baked pastries and sandwiches. We will implement a smart pricing strategy, utilizing high-quality ingredients and creative combinations to maximize value for our customers. Our menu will evolve based on customer feedback and seasonal trends, ensuring a dynamic and appealing selection of offerings.

Section 6: Our marketing strategy

Our marketing plan will focus on building brand awareness, driving foot traffic, and fostering customer loyalty. Strategies include social media campaigns, local partnerships, community events, and loyalty programs to engage customers and generate buzz around Sip & Savor Café. We will also prioritize customer retention through personalized service and rewards programs.

Sip & Savor Café is structured as a partnership between founders Emma and Liam, who collectively bring over 20 years of experience in the hospitality industry. Each partner holds a 50% ownership stake and shares responsibility for day-to-day operations, strategic decision-making and financial management.

Section 8: Operations plan

Our operations plan outlines efficient workflows, staffing requirements, inventory management systems, and quality control measures to ensure smooth and consistent operations. We will invest in modern equipment, staff training, and technology to optimize efficiency and deliver a superior customer experience.

Section 9: Financial plan

Sip & Savor Café will require initial funding to cover startup costs, including leasehold improvements, equipment purchases, and initial inventory. We have secured financing through a combination of personal savings, small business loans, and investor contributions. Our financial projections indicate steady revenue growth and profitability over the first three years of operation, supported by growing customer traffic and cost-effective operations.

As Sip & Savor Café establishes itself as a local favorite, we plan to explore opportunities for expansion, including additional locations and new menu offerings. By maintaining a focus on quality, customer satisfaction, and community engagement, we aim to sustain long-term growth and success in the competitive cafe market.

Keeping the restaurant dream alive

Though creating a business plan can seem complicated, remember that it’s an important step you should take before starting a cafe. A thoughtful business plan proves to others (and yourself) that your cafe can be successful. 

Looking to invest in the right tools for your cafe? Chat with one of our experts to see how cloud software can make your day-to-day more efficient.

1. How profitable is owning a cafe?

Profitability varies, but successful cafes can generate healthy profits with the right management, location, and business model.

2. How do I start a cafe business?

Start by creating a solid business plan, securing financing, finding a suitable location, obtaining necessary permits/licenses, hiring staff, sourcing suppliers, and marketing your cafe.

3. Is a cafe a successful business?

Cafes can be successful if managed effectively, offering quality products, good customer service, and a welcoming atmosphere.

4. How do I write a business proposal for a cafe?

Include sections on your concept, target market, location analysis, marketing strategy, financial projections, and management plan.

5. What is the failure rate of coffee shops?

Failure rates vary, but some studies suggest around 60% of new coffee shops close within the first five years due to various factors like location, competition, and mismanagement.

6. How much do small cafe owners make?

Earnings vary greatly depending on factors like location, size, and business model, but small cafe owners may make anywhere from modest incomes to substantial profits.

7. How much does it cost to run a coffee shop per month?

Costs can vary widely based on factors like rent, utilities, staff wages, inventory, and marketing expenses, but estimates range from several thousand to tens of thousands of dollars per month.

8. Are cafes a good investment?

Cafes can be a good investment if carefully planned and managed, offering opportunities for profitability and growth in the food and beverage industry.

9. Are cafes more profitable than restaurants?

Profitability depends on various factors including location, target market, and operating expenses. While cafes may have lower overhead costs than full-service restaurants, profitability can vary widely between individual establishments.

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Cafe Business Plan Template

Written by Dave Lavinsky

Cafe Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their cafes. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a cafe business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Cafe Business Plan?

A business plan provides a snapshot of your cafe as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Cafe

If you’re looking to start a cafe or grow your existing cafe you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cafe in order to improve your chances of success. Your cafe business plan is a living document that should be updated annually as your cafe grows and changes.

Sources of Funding for Cafes

With regards to funding, the main sources of funding for a cafe are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a cafe is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your cafe business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of cafe business you are operating and the status; for example, are you a startup, do you have a cafe that you would like to grow, or are you operating a chain of cafes.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the cafe industry. Discuss the type of cafe you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of cafe you are operating.

For example, you might operate one of the following types:

• Take-Out Cafe: this type of cafe doesn’t have seating (or has limited seating) and is mostly visited by customers looking to grab a coffee and/or bakery item on their way to work or elsewhere.
• Restaurant Cafe: this type of cafe is most similar to a restaurant and offers a full, sit-down menu in a nice atmosphere with a full wait staff.
• Casual cafe: also known as a corporate, student or co-working cafe, this type of cafe typically offers food and drinks from a counter with no waiters or waitresses. Patrons purchase items and consume them in the cafe, often while performing work on their laptops or conversing with friends or colleagues.
• Coffee Shop: This is a popular type of cafe. Coffee shops usually offer a selection of tea, coffee, pastries and other drinks

  In addition to explaining the type of cafe you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business? What is your business concept? What is your unique selling proposition?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the cafe business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the cafe industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards cafes with ultra high speed internet connections, it would be helpful to ensure your location could offer such a service.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cafe business plan:

• How big is the cafe business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key local suppliers in your market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your cafe. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The market analysis section of your cafe business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: local office workers, college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the target audience you choose will have a great impact on the type of cafe you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most cafes primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cafes (and restaurants and/or bakeries depending on the type of cafe you operate).

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes restaurants, supermarkets and customers making coffee and bakery items themselves at home. You need to mention such competition to show you understand that not everyone in your target market will visit a cafe each day.

With regards to direct competition, you want to detail the other cafes or coffee shops with which you compete. Most likely, your direct competitors will be cafes located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

  With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior cafe products?
• Will you provide cafe products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cafe business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of cafe that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, will you offer pastries, soups, items such as café latte, cappuccino, espresso or macchiato?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your cafe. Document your location and mention how the location will impact your success. For example, is your cafe located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your cafe marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your cafe’s front store extra appealing to attract passing customers
• Distributing samples outside the cafe
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., gym members get a free cup of cafe with each pastry they purchase)
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cafe such as serving customers, procuring supplies, keeping the cafe clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 10,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.  

Management Team

To demonstrate your cafe’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the cafe, coffee shop and/or restaurant business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in cafes and/or successfully running retail and small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your cafe, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 catering contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cafe:

• Location build-out including design fees, construction, etc.
• Cost of fixtures like chairs, tables, signage and cafe decor
• Cost of equipment like grinders, espresso machines, blenders, refrigerators
• Cost of ingredients and maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Summary Putting together a business plan for your cafe is a worthwhile endeavor. If you follow the template above, you will be able to prepare a winning cafe business plan or a coffee shop business plan. You will really understand cafe business planning, business operations, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful cafe.

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how our professional business plan writers can create your business plan for you. Other Helpful Business Plan Articles & Templates

Coffee Shop Business Plan Template & PDF Example

• July 22, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful coffee shop. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your coffee shop’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a coffee shop business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your coffee shop concept into reality. Let’s dive in!

Our coffee shop business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the shop’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers a quick look at your coffee shop idea, market research , your team, and money plans.
• Coffee Shop & Location: Talks about the design, special features, and why the spot is great for customers.
• Operations: Describes how your shop runs daily, like hours, staff roles, and your menu items with prices.
• Key Stats: Gives numbers on how big the coffee shop world is and what’s trending.
• Key Trends : Points out new things in coffee shops, like eco-friendly practices or tech for ordering.
• Key Competitors: Looks at other coffee places nearby and how your shop is different.
• SWOT: Lists strengths, weaknesses, opportunities, and risks for your shop.
• Marketing Plan : Ideas for getting the word out and keeping customers coming back.
• Timeline : Major steps and goals from starting up to the first year.
• Management: Highlights Info on your leading team and their roles.
• Financial Plan : Predicts financials for 5 years, like how much you’ll make, spend, and keep as profit.

Coffee Shop Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary presents a concise overview of your coffee shop’s business plan, encapsulating the essence of your establishment and its offerings. It should articulate your market positioning, the variety of coffee and related products you offer, its location, size, and a brief on the daily operations.

This section should also delve into how your coffee shop will carve its niche within the local community, including an analysis of the number of direct competitors in the vicinity, identifying who they are, as well as highlighting your coffee shop’s unique selling points that set it apart from these competitors.

Moreover, information about the management and co-founding team should be included, elaborating on their roles and the value they bring to the coffee shop’s success. Additionally, a synopsis of your financial projections, including anticipated revenue and profits over the next five years, should be provided here to offer a clear view of your coffee shop’s financial strategy.

Coffee Shop Business Plan Executive Summary Example

Business Overview

The  business overview  section should detail the coffee shop’s specific features, including its size, seating capacity, and concept. This is where you explain what makes your coffee shop unique, such as its focus on specialty coffees and local artisanal pastries, and how it operates.

Example: “Bean Haven,” located in the bustling Midtown area, spans 2,000 square feet and can seat 40 customers. It stands out with its range of gourmet coffees and fresh pastries, all sourced from local suppliers. The shop’s modern POS system ensures efficient service, enhancing the overall customer experience.

Market Overview

In this section, analyze the local and national coffee shop market. Discuss the size of the market, growth trends, and consumer preferences. This analysis should position your coffee shop within the broader industry context and highlight its potential to meet current consumer demands.

Example: Bean Haven enters a U.S. coffee shop market valued at $45.8 billion. In its neighborhood, known for a dense population of young professionals, Bean Haven’s focus on health-conscious options and its role as a community hub align with shifting consumer preferences, setting it apart from six main competitors in the area.

Management Team

This section outlines the experience and roles of your management team. Detail how their background and skills contribute to the success of the coffee shop.

Example: Bean Haven is led by a CEO with 10 years of experience in café management, overseeing daily operations and supply chain efficiency. The CFO, with a background in hospitality sector marketing, handles the shop’s financial strategies and marketing campaigns, ensuring robust business operations.

Financial Plan

Here, present your financial goals and projections. Include revenue targets and profit margins, providing a clear picture of your coffee shop’s financial aspirations and health.

Example: Bean Haven aims for $830,000 in annual revenue with an 11%  EBITDA  margin by 2028. This goal is supported by a focused approach on high-quality offerings, strategic marketing, and community engagement, positioning Bean Haven for success in the  competitive  market.

For a Coffee Shop, the Business Overview section can be neatly divided into 2 main slides:

Coffee Shop & Location

Talk about your coffee shop’s look and feel, highlighting cozy seats and nice lighting that make it welcoming. Mention its location, noting how easy it is to get there, like being close to shops or having easy parking. Explain why this spot is great for attracting customers.

Operations & Offerings

List the kinds of coffee and other items you sell, including snacks or light food. Discuss pricing, making sure it matches the quality of what you’re selling and suits your target customers . Share special features of your shop, such as using local products or offering unique coffee flavors. Mention any deals or events you have to keep customers coming back.

Industry Size & Growth

In the Market Overview of your coffee shop business plan, begin by exploring the size of the coffee industry and its potential for growth. This analysis is key to understanding the breadth of the market and pinpointing opportunities for expansion.

Key Market Trends

Next, discuss current trends in the coffee market, like the growing demand for specialty coffee, the appeal of ethically sourced and organic beans, and the innovation in coffee brewing techniques. Highlight the interest in offerings that cater to diverse preferences and dietary needs, such as plant-based milk options and artisanal blends, as well as the increasing importance of sustainability in the coffee industry.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your coffee shop in the market; it’s also a fundamental component of your business plan.

This analysis helps identify your coffee shop’s unique selling points, which are essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Coffee Shop’s Competitors

The first step in conducting a competitive analysis for your coffee shop is identifying your direct and indirect competitors. Direct competitors include nearby coffeehouses or chains that offer similar services and products, while indirect competitors might encompass local juice bars, tea houses, or even convenience stores selling coffee.

Utilize tools like Google Maps to map out competitor locations and understand their distribution across your area. Online platforms like Yelp, Google Reviews, or social media channels provide invaluable insights into customer reviews and ratings, shedding light on competitor  strengths and weaknesses . For instance, if a rival coffee shop receives praise for its artisanal coffee blends and cozy ambiance, it signifies a notable strength.

Coffee Shop Competitors’ Strategies

To gain a deeper understanding of the competitive landscape, analyze various facets of your competitors’ strategies:

• Coffee Menu Offerings:  Assess the range and uniqueness of coffee offerings. For instance, if a local competitor, “Brew Masters,” is gaining traction with exotic single-origin coffees or specialty cold brews, it highlights a potential trend or gap in the market for distinctive coffee blends.
• Service and Ambiance:  Consider the ambiance and customer service. Perhaps a competitor, “Sip & Chill Café,” is known for its relaxed atmosphere and friendly staff, enhancing the overall customer experience.
• Pricing Strategy :  Compare your pricing with competitors. Are your coffee prices aligned with those of other local cafes, or do you position yourself as a premium establishment akin to “Gourmet Grinds,” offering artisanal blends at a higher price point?
• Marketing and Branding:  Analyze how competitors market their brand. Do they rely heavily on social media campaigns, influencer collaborations, or community events? Understanding their marketing tactics can help refine your promotional strategies.
• Innovative Offerings and Technology:  Look for innovative approaches. Are competitors embracing technology for online ordering or loyalty programs? For example, “TechBeans Café” might leverage an efficient app-based ordering system, catering to tech-savvy customers.

What’s Your Coffee Shop’s Value Proposition?

Defining your coffee shop’s  unique value proposition  is critical. Perhaps your establishment specializes in single-origin, ethically sourced beans, or you have a signature blend that customers rave about. Emphasize these unique offerings to distinguish your brand in the market.

Consider market gaps and evolving customer preferences. If there’s a growing preference for sustainable practices or an increasing demand for specific coffee types (organic, fair trade, etc.), tailoring your offerings to meet these needs can position your coffee shop favorably amidst competitors.

Tailoring your offerings to your location is essential. A coffee shop in a bustling business district might emphasize quick service and convenience for professionals on the go. At the same time, a suburban café could focus on creating a warm, family-friendly environment to attract locals seeking a relaxing spot for gatherings or leisurely coffee breaks.

Start by doing a SWOT analysis for the coffee shop. Point out Strengths (like skilled baristas and a variety of coffee options), Weaknesses (such as high running costs or lots of competitors), Opportunities (for instance, more people wanting unique coffee experiences), and Threats (like economic changes that might reduce how much people spend on coffee).

Marketing Plan

Then, make a marketing plan that shows how to draw in and keep customers. This could include ads aimed at the right people, deals to save money, an active and interesting online presence, and getting involved in the local area.

Marketing Channels

Utilize various marketing channels to reach and engage your audience effectively.

Digital Marketing

• Establish a Strong Online Presence:  Leverage social media platforms like Instagram for visually appealing coffee shots, TikTok for engaging short videos, and Twitter/Facebook for engaging with customers and sharing updates.
• Email Marketing:  Build an email list and send newsletters featuring new coffee blends, upcoming events, or promotions. Offer incentives for signing up, such as a discount on the first purchase.
• Website and SEO:  Develop a user-friendly website showcasing your menu, the story behind each coffee blend, and a blog section for brewing tips or coffee-related content. Optimize for local SEO to attract nearby customers.

Local Advertising

Connect with the local community to increase foot traffic:

• Flyers and Local Print:  Distribute eye-catching flyers in nearby offices, community centers, and partner businesses. Advertise in local newspapers or magazines to reach a broader audience.
• Community Engagement:  Host events like cupping sessions, live music nights, or art exhibitions to create a gathering space. Partner with local artists, musicians, or charities to foster community connections.
• Partnerships: C ollaborate with neighboring businesses, such as bakeries, bookstores, or gyms, for cross-promotions or joint events.

Promotional Activities

Attract customers with enticing offers and loyalty programs:

• Special Deals:  Launch seasonal or themed promotions to attract customers. For instance, during colder months, promote warm beverage options with discounts, or offer a summer-themed menu with refreshing iced coffees or specialty drinks.
• Loyalty Programs:  Implement a rewards system where customers earn points for every purchase. These points can be redeemed for free drinks, merchandise, or even exclusive experiences. This encourages repeat business and fosters a sense of loyalty among customers.
• Referral Incentives:  Encourage your existing customers to refer friends and family by offering incentives. This could be in the form of discounts or free beverages for successful referrals. Word-of-mouth remains a powerful tool in the coffee industry.

Sales Channels

Optimize  sales channels  to maximize revenue and customer satisfaction.

In-Store Upselling

Maximize each customer’s visit:

• Upsell Specialty Items:  Train baristas to suggest specialty drinks, pastries, or merchandise based on customers’ preferences or current promotions.
• Merchandising:  Display branded merchandise like travel mugs, brewing equipment, or specialty beans near the checkout counter to encourage additional purchases.

Subscription Services

Offer subscription-based models for regular income and customer retention:

• Coffee Delivery Subscription:  Introduce a coffee delivery subscription service where customers receive their preferred coffee blends regularly at a discounted rate. Customize subscription options based on frequency and quantity to cater to diverse preferences.
• VIP Memberships:  VIP memberships can provide exclusive benefits such as early access to new blends, members-only events, or personalized recommendations. These memberships create a sense of belonging and offer additional value to loyal customers.

Mobile Ordering and Pickup

Facilitate convenient ordering and pickup options:

• Mobile App Ordering:  Develop a user-friendly mobile app that allows customers to browse your menu, place orders, and make payments seamlessly. Offer incentives such as loyalty points or app-exclusive deals, to encourage app usage.
• Curbside Pickup:  Implement a curbside pickup option, allowing customers to order ahead and collect their beverages without leaving their vehicles. This convenience factor can attract busy individuals or those seeking contactless service.

Strategy Timeline

Lastly, set up a detailed timeline that marks important steps for the coffee shop’s start, marketing actions, growth in the number of customers, and goals for getting bigger. Make sure there’s a clear plan and goal for moving the business forward.

The Management section focuses on the coffee shop’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the coffee shop toward its financial and operational goals.

For your coffee shop business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your coffee shop’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your coffee shop business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Cafe Business Plan

Need help writing a business plan for your cafe? You’re at the right place!

We have helped thousands of entrepreneurs successfully create their business plans with ready-to-use templates and step-by-step guidance.

To help you get started, here’s a sample cafe business plan to use as inspiration. You may use it to outline your business concept, identify target customers, outlay your marketing plan, and project financials.

Sounds good? Let’s head straight to Sip and Savor’s cafe business plan.

1. Executive Summary

Business Name : Sip & Savor Business Location : New York City, NY, USA

Business Description

Sip & Savor is a cozy cafe in New York City. We chose this spot to serve both locals and tourists looking for a peaceful break from the city’s chaos.

Our cafe has a serene ambiance, a simple design, and a touch of greenery to create a welcoming atmosphere for people to relax, work, read, or simply enjoy great coffee.

Mission Statement

At Sip & Savor, we’re all about providing a peaceful escape in New York City. We want to offer fantastic coffee, delicious food, and a welcoming place to connect. Our mission is to create a peaceful environment for everyone who walks through our doors.

Our vision for Sip & Savor is to be a one-of-a-kind cafe, a place where people can find tranquility, inspiration, and real connections. We aim to be a beloved local spot while expanding to other vibrant neighborhoods across the city.

Market Research

Industry Analysis

The cafes in New York City are thriving, with people always searching for unique coffee experiences. Coffee consumption in the morning is a ritual for many Americans, so this industry is thriving.

Competitive Analysis

We have studied our local competitors, and we know that we stand out by focusing on quality and maintaining a serene ambiance.

Customer Analysis

Our target audience includes professionals, students, artists, freelancers, and tourists searching for a nice cozy place to have coffee and snacks alone or with their friends.

Cafe Menu and Other Offerings

Sip & Savor serves specialty coffee and teas, including pour-over coffee, signature espresso drinks, and certain loose-leaf teas. Apart from that, we also offer pastries, sandwiches, and salads.

Marketing and Sales Strategy

We’ll use social media, local partnerships, and community events for the brand awareness of Sip & Savor. Besides that, our loyalty programs and events will make repeat customers feel like a family.

Unique Selling Proposition

Sip & Savor is located in a high-foot area of New York City, with seating for 40 guests.

We’re investing in high-quality coffee equipment and partnering with local suppliers. Also, our team includes skilled baristas, kitchen staff, and friendly front-of-house staff.

Financial Plan

Our estimate for initial startup costs is $200,000, with revenue projections showing steady growth over the first three years.

We are expecting to break even within 6 months of operations. To get things going, we are seeking $300,000 in funding to ensure that our startup costs and working capital for the first year are covered.

We are excited to start our Sip & Savor cafe and invite potential investors to join us in this journey.

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2. Business Description

Business concept.

Imagine a place where the fragrance of freshly brewed coffee mixes with soft live music. At Sip & Savor, we are not just serving coffee, we are creating an experience for all our guests.

Our menu is a combination of both global and local tastes. From rich signature coffees to delicate artisan pastries, each dish on the menu is thoughtfully chosen to make our guests feel comfortable.

Legal Structure

Sip & Savor is legally organized as a Limited Liability Company (LLC). What does that mean for you? It means we’re committed to operating responsibly and protecting both our customers and our team.

We have all the necessary permits and licenses to ensure a smooth and lawful operation.

Location Analysis

Why did we choose New York City? Well, it’s because we believe that everyone, from busy professionals to curious tourists, deserves a peaceful oasis.

Our cafe is perfectly placed in the middle of the city, where the vibrant streets meet the quiet corners. We’re here to provide refreshments to all who pass by.

Sip & Savor is the idea of Jack Brown, a passionate coffee enthusiast with a dream of creating a space where people can relax with classic teas, coffees, and refreshing snacks.

Jack is a gifted barista with 12 years of experience to ensure that Sip & Savor becomes your favorite spot in the city.

Step into Sip & Savor, and you’ll find a peaceful spot with soothing colors, comfy chairs, and a touch of greenery. It’s your place to relax, work, catch up with friends, or simply unwind with a cup of exceptional coffee.

Our Offerings

We’re not just about the ambiance; we’re passionate about coffee and good food too!

Our menu features carefully crafted coffee and tea drinks, along with delicious pastries, sandwiches, and salads made with local ingredients. Every bite and sip is designed to bring a smile to your face.

Why Sip & Savor?

Our commitment to serenity, quality, and genuine connections sets us apart. We don’t just serve coffee; we create moments. Whether you’re starting your day, taking a break, or looking for inspiration, Sip & Savor is where it all begins.

Future Goals

It is just a start for Sip & Savor because we have multiple dreams and goals. In the coming years, we aim to:

• Expand our presence in other high-foot neighborhoods across the city.
• Continue sourcing the finest coffee beans and local ingredients.
• Implement sustainable practices to minimize environmental footprint.

At Sip & Savor, we’re not just serving coffee; we’re creating an experience that you’ll want to revisit time and again.

3. Market Analysis

Industry overview.

The cafe industry in New York City is vibrant and ever-evolving. It’s a city known for its coffee culture and a population that enjoys the coffee experience.

With a strong coffee culture, the cafe industry is always in demand and thriving.

Trends and Opportunities

Rising Coffee Culture

Coffee is no longer just a beverage, it has become a culture now. New Yorkers love specialty coffee and are eager to explore new flavors and brewing methods.

Health-conscious Consumers

The demand for healthier and sustainable food & beverages is increasing, not only in New York, but the whole United States. So, customers are seeking cafes that offer organic and locally sourced ingredients.

Remote Work Culture

After the pandemic, remote work has become the new norm. So with the rise of professionals working from home, the demand is there for the cafes that allow work. This way Sip & Savor fits the demand perfectly and has become an ideal setting for remote workers.

Community and Connection

Customers are not only looking for coffee all the time, sometimes they want to be a part of a community where they can belong. Thus, through various events and workshops, we will build a community.

Target Market

Our target market includes:

• Professionals : Seeking a peaceful environment to work or unwind.
• Students : Looking for a cozy study spot.
• Tourists : Exploring the city and craving an authentic New York cafe experience.
• Creatives : Finding inspiration in a serene atmosphere.
• Locals : Building a sense of community in their neighborhood.

Market Potential

With the increasing trend of having a calm ambiance and connection to the community, Sip & Savor is positioned to capture a share of the market. New York presents ample opportunities for the growth and expansion of the cafe.

The cafe industry in New York City is growing, with a strong demand for quality coffee and welcoming spaces. Sip & Savor’s concept and commitment to quality make us more than capable enough to cater to the preferences of our target audience.

Sip & Savor faces competition from a diverse range of cafes and coffee shops in New York City. However, our unique selling proposition (USP) sets us apart:

• Sip & Savor is dedicated to creating a calm atmosphere, offering an escape from the urban hustle.
• Our commitment to quality coffee, locally sourced ingredients, and a warm community vibe distinguishes us from competitors.
• We prioritize customer engagement and exceptional service, ensuring that every visit is memorable.

4. Products And Services

At Sip & Savor, we take pride in curating a menu that elevates your coffee experience and satisfies your cravings.

Catering and Events

We offer catering services for events, meetings, and various gatherings providing beverages and other preferred snacks to the demanded location.

Sip & Savor hosts regular community events, including open mic nights, art exhibitions, workshops, and other events to bring like-minded people together.

Cozy Atmosphere

Our cafe provides a welcoming ambiance, ideal seating for remote work & meetings, and delicious beverages plus food.

We also provide free Wi-Fi to stay connected with everyone while you enjoy your time at Sip & Savor.

Sustainability and Responsibility

We are committed to eco-friendly practices, from sourcing ethically grown coffee beans to reducing waste through recycling and composting.

We also prioritize partnerships with local suppliers and artisans to support the community and promote sustainability.

Retail Coffee Beans and Merchandise

Take a piece of Sip & Savor home with you by purchasing our premium coffee beans or branded merchandise.

5. Sales And Marketing Strategies

Our marketing and sales strategy is built around creating awareness, creating a sense of community, and ensuring a steady flow of satisfied customers.

Online Presence

We maintain an informative and user-friendly website that shows the menu, events, and ambiance of the cafe.

Additionally, we maintain active profiles on social media platforms with regular posting featuring any special events and customer feedback.

Community Engagement

Sip & Savor hosts various events, workshops, and different open mic nights. We also offer loyalty programs to provide extra benefits to our regular customers with discounts and exclusive offers.

Sales Strategy

We promote our catering services for corporate meetings, events, and private gatherings. We also regularly introduce seasonal specials on a rotational basis to keep our menu fresh.

Our staff is trained to suggest complementary items to customers, such as pairing a pastry with a specialty coffee.

Our marketing and sales strategy is about building a loyal customer base and creating experiences.

6. Operations Plan

Facility and equipment.

Our café space spans approximately 900 square feet, providing seating for 40 guests.

We have invested in high-quality coffee equipment, including espresso machines, grinders, and brewing tools, to ensure consistency and excellence in our coffee offerings.

The kitchen is equipped with modern appliances for food preparation, adhering to strict hygiene and safety standards.

Supply Chain Management

We have established relationships with local suppliers for coffee beans, fresh ingredients, pastries, and other supplies. Regular communication ensures a steady flow of inventory.

Quality control measures are in place to guarantee the freshness and quality of our products.

Staffing & Training

Our staff consists of skilled baristas, kitchen personnel, and front-of-house staff who are trained to provide exceptional customer service.

Schedules are created to ensure adequate coverage during peak hours, and staff members are cross-trained to handle various tasks.

Food Preparation

Food preparation follows strict quality and safety standards, with an emphasis on using locally sourced and fresh ingredients.

We maintain a rotating seasonal menu to keep offerings fresh and exciting.

Operational Hours

Sip & Savor is open all 7 days from 11:00 A.M. to 11:00 P.M. Special events and extended hours may be offered for community gatherings or specific promotions.

Customer Experience

Customer satisfaction is our top priority. We strive to provide a welcoming atmosphere, prompt service, and a personal touch in every interaction.

Health and Safety

Strict adherence to local health and safety regulations and food handling guidelines is maintained.

Regular cleaning and sanitation routines are implemented, with a focus on maintaining a clean and hygienic environment for both customers and staff.

Technology Integration

Point-of-sale (POS) systems are used for efficient order processing and inventory management.

An online presence, including a website and social media, helps reach and engage customers and promote upcoming events and specials.

Sustainability Initiatives

We are committed to eco-friendly practices, including waste reduction, recycling, and energy-efficient equipment.

Sourcing locally and using sustainable materials for packaging are part of our commitment to minimizing our environmental footprint.

Sip & Savor’s operations plan is designed to provide customers with an exceptional experience while maintaining efficiency, quality, and sustainability.

7. Financial Plan

Estimating the daily number of seats and sales is one of the most important parts of finances. Here, we present the projections of Sip & Savor cafe.

Key assumptions

• We anticipate a steady sales growth, from $380,000 in Year 1 to $460,000 by Year 3.
• Effective management of Cost of Goods Sold (COGS) and operating expenses.
• There is continued demand for quality coffee and a serene environment in New York City.
• Effective marketing and community events to maintain a strong customer base.

Use of funds

It is estimated that Sip and Savor will incur an initial startup cost of $200,000 for remodeling, equipment purchases, stocking up on inventory, and other expenses. In the initial stage, there will be other operational expenses like rent, utilities, employee salaries, and marketing.

Sources of Funds

The founder has committed to invest $140,000 in the business. This investment is crucial to cover many startup costs, including space leasing, renovation, equipment purchase, and inventory stocking.

We have sourced a bank loan of $30,000 to supplement the owner’s investment. It will help the business sustain itself by providing a buffer for operational costs in the early months of business.

Projected Profit and Loss (P&L) Statement

Projected Balance Sheet

Projected Cash Flow Statement

Download the Free Cafe Business Plan Template

Ready to write your cafe business plan, start to finish? Not sure where to begin or download this sample plan? Here you go. Download our free cafe business plan pdf , import data directly into the editor, and start preparing your business plan.

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Frequently asked questions, why do you need a cafe business plan.

A business plan is an essential tool for anyone looking to start or run a successful cafe. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your cafe.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your cafe.

How to get funding for your cafe business?

There are several ways to get funding for your cafe business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are!

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your cafe, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your cafe business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your cafe business plan and outline your vision as you have in your mind.

What is the easiest way to write your cafe business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any cafe business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Cafe Business Plan Template

Are you aspiring to open your own cafe but unsure of where to begin? Search no more! Our complimentary cafe business plan template is the ideal resource to kickstart your journey. This all-encompassing guide will lead you through the steps of crafting a robust business plan that paves the way for your triumph. Utilizing our adaptable template, you can tailor your plan to match your distinct vision and objectives, ensuring a confident launch for your cafe with a solid foundation in place.

Get the free business plan template here!

If you're looking to start a cafe and need a plan to get started, you're in the right place. This free business plan template is designed to help you create a comprehensive plan for your cafe that will guide you through the process of starting and growing your business.

Starting a cafe can be an exciting and rewarding venture, but it can also be challenging. With so many details to consider, it's easy to get overwhelmed. That's why a solid business plan is crucial for success. It will help you clarify your vision, outline your goals, and create a roadmap for achieving them.

Our cafe business plan template is designed to be easy to use, even if you have no previous business ownership experience. It includes all the sections you need to create a comprehensive plan, including:

Executive summary: This section provides an overview of your cafe, including your mission statement, products or services, target market, and financial goals.

Company description: This section provides more detailed information about your business, including its legal structure, ownership, and management team.

Market analysis: This section analyzes your target market and the competition in your industry. It includes information about your ideal customer, your competitors, and the overall market size and trends.

Products: This section outlines your cafe products, including any unique spin on them, and what impact you expect them to have.

Sales and marketing plan: This section outlines how you plan to reach and sell to your target market. It includes your pricing strategy and promotional tactics.

Financial projections: In this section, we provide real examples of real cafe financial projections that show you exactly what you should include about your financial projections in your business plan.

Funding request: If you need funding to start or grow your business, this section will help you outline your funding needs and present your plan to potential investors or lenders.

Our cafe business plan template is completely customizable to fit your specific needs. You can add or remove sections as needed and fill in the details that are most important to your business. The template includes helpful tips and guidance throughout, as well as examples of completed sections to help you get started.

To access the free cafe business plan template, simply enter your email address and name in the form provided. You will receive a link to download the template.

With this free cafe business plan template, you will have the tools you need to create a comprehensive plan for your cafe. Whether you're just getting started or looking to take your business to the next level, a solid plan is the key to success. Get started today!

Cafe Business Plan Outline

I. Executive Summary

- Brief overview of the business idea, target market, and goals

II. Market Analysis

- Description of the coffee market, including trends and competitors

- Analysis of target customer demographics and their coffee habits

III. Business Concept

- Description of the coffee shop's unique selling proposition and concept

- Details of the menu offerings and any special features or services

IV. Marketing Strategy

- Overview of marketing and advertising efforts, including social media, promotions, and local events

- Analysis of pricing strategy and how it will attract customers

V. Operations Plan

- Description of the day-to-day operations, including staffing, scheduling, and inventory management

- Discussion of any technology or equipment needs and how they will be procured

VI. Financial Plan

- Projections for start-up costs, ongoing expenses, and revenue

- Breakdown of funding sources, such as loans or investments

- Discussion of the target profitability and growth potential for the business

VII. Management Team

- Brief descriptions of key management members and their experience

- Discussion of any partnerships or strategic relationships

VIII. Conclusion

- Summary of key points and future plans for the business

Cafe Business Plan Frequently Asked Questions

Q: Why is a cafe business plan essential?

A cafe business plan serves as a roadmap for your venture. It assists in identifying your target market, understanding the competitive landscape, and projecting your finances. Crafting a business plan enhances your insight into your cafe business and improves your chances of success.

Q: What should be incorporated into a cafe business plan?

A cafe business plan should encompass an executive summary, company description, market analysis, product lineup, sales and marketing strategy, financial projections, and funding request. Each of these sections should be customized to suit your specific cafe.

Q: What is the ideal length for a cafe business plan?

The length of a cafe business plan can vary, but it typically falls between 25 and 35 pages. It's important to include all necessary details while avoiding overwhelming the reader with excessive information.

Q: Is it necessary to hire a professional to draft my cafe business plan?

While it's not obligatory to engage a professional for writing your cafe business plan, it can be advantageous if you lack experience in creating business plans. Alternatively, you can utilize templates and online resources to guide you through the process.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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• Restaurant Website Builder

Dreaming of opening a coffee shop ? You’re not alone. The coffee industry is bustling with passionate business owners eager to make their mark. However, becoming successful coffee shop owners requires more than just a love for the brew. It demands a clear vision that differentiates your coffee house in a saturated market. A well-crafted business plan not only gives life to your idea but also sets your business on a path to thrive. Whether you’re a newbie or a seasoned entrepreneur, this guide, complete with a free template, will help you craft a business plan that markets and propels your coffee venture to success.

What is A Coffee Shop Business Plan?

A coffee shop business plan is a comprehensive document that explains what your business idea is, how you intend to penetrate the coffee market, and the strategies you’ll employ to run your coffee shop successfully. When opening a cafe, many aspiring cafe or coffee shop owners underestimate the value of a structured plan. However, this document does more than just outline the needs to open a coffee shop; it gives a detailed roadmap for your new business, offering clarity on every aspect of its operation.

More than that, presenting a well-structured business plan to potential investors is essential. It not only showcases your commitment but also your understanding of the industry, making it a vital tool for securing funding. While crafting a business plan can seem daunting initially, it’s the foundation that both clarifies your idea and sets your business on the trajectory for growth and success in the competitive world of cafes and coffee shops.

Why A Business Plan Is Important For A Successful Coffee Shop Business?

1. Clear Vision and Objectives

When you set up your coffee shop, having a business plan establishes a clear vision and defines your objectives. It is the backbone that steers every decision you’ll make. Without a clear outline, you may find yourself swaying from one idea to the next. With a detailed business plan, you can present a clear business proposal to stakeholders, ensuring them and yourself of the path you plan to tread.

2. Financial Planning

A comprehensive business plan is imperative for accurate financial planning. It will include information on how much capital is required to start, what your ongoing costs will be, and the revenues you plan to generate. If you’re seeking external funding, investors will want to see how you plan to use their money, and most importantly, how you plan to make a return on that investment. If you plan to sell specialty blends or unique treats, the financial section can also help you plan a strategy for pricing, promotion, and sales forecasts.

3. Operational Efficiency

Operational efficiency is the linchpin that holds all business operations together. A business plan will map out every detail, from supplier agreements to employee schedules. You may want to create special events or loyalty programs for regular customers, and this is where a business plan can help you plan a strategy for success. It becomes the reference point, ensuring that daily tasks align with the broader objectives, guaranteeing that resources, time, and efforts are used optimally.

Step-by-step Guide To Write A Coffee Shop Business Plan

1. Executive Summary

The Executive Summary is like the introduction of a novel – it provides a snapshot of what is to come. Typically, you write the executive summary last, even though it appears first in your business plan. It encapsulates the essence of your coffee shop’s mission, objectives, and financial overview, succinctly explaining what your business concept is about. This section is crucial because many coffee shops fail to engage potential investors right off the bat. Ideally, it should be concise – a page or two.

What should you cover in an Executive Summary?

• Introduce Your Coffee Shop or Cafe: Provide a company overview, giving readers insight into what makes your coffee shop unique from the myriad of coffee bars in the market.
• State Your Mission and Vision: Describe what drives your coffee business and where you see it in the future.
• Outline Your Objective: Define clear, measurable goals that you aim to achieve.
• Provide a Financial Overview: Highlight projected profit margins, a brief balance sheet, and other pertinent financial data.

2. Coffee Shop Business Description

This section paints a picture of your coffee shop. It’s where you elaborate on how you plan to infuse the local coffee market with your unique brews and pastries.

What should you cover in the Coffee Shop Description section?

• Coffee Shop Concept: Dive into the types of coffee drinks you plan to offer, whether it’s a rich espresso or a classic brewed coffee.
• Unique Selling Proposition: Discuss what makes your coffee shop stand out, be it a special blend of coffee beans, a unique roasting method using a specific coffee roaster, or artisanal pastry offerings.
• Operational Plan: Briefly touch upon how you’ll manage your coffee shop, from sourcing beans to serving cups of coffee.

3. Market Analysis

Before pouring your first espresso, performing market research before starting your coffee business is essential. This section dives deep into understanding your potential customer base and the coffee industry landscape in your area.

What should you cover in this section?

• Target Market: Describe your ideal customer. Are they local residents, office workers, or students?
• Location: Discuss the significance of your chosen location. Are there many coffee shops in the area? How does your location cater to your target market?
• Competition: Analyze existing coffee shops. What coffee and food products do they offer? What pricing strategy do they employ? How will your coffee shop compete or complement them?

4. Organization and Management

Behind every successful coffee shop is a robust organizational structure and a competent management team.

What should you cover in the Organization and Management Plan?

• Coffee Shop Ownership Information: Highlight the business’s legal structure.
• Profiles of Your Coffee Shop Management Team: Include details about your baristas, perhaps a part-time accountant, and someone to manage marketing. It can be helpful to create profiles for each role, detailing responsibilities and expertise.

5. Sample Menu

Your menu is the heart of your coffee shop. It’s more than just a list of coffee and tea; it’s an expression of your brand.

What should you consider when creating a Sample Menu?

• Menu Items: Detail the types of coffee, espresso drinks, and pastries you plan to offer. Maybe consider including non-coffee items like teas or specialty drinks.
• Unique Selling Proposition: Reiterate what makes your coffee or food items different from other coffee shops in the area.
• Menu Pricing : Discuss your pricing strategy, keeping in mind profit margin, competitors’ prices, and your target customer base.

6. Marketing Plan

To brew success, it’s not enough to have a fantastic coffee product; you must effectively market it.

What should you cover in a Marketing Strategy for your Coffee Shop Business?

• Define Your Brand: What voice, theme, or emotion do you want your coffee shop to evoke?
• Lay out your plans for social media campaigns, local partnerships, loyalty programs, SEO for website, and other promotional strategies.
• Considering using an  online food ordering system  in your food truck
• Create a  digital menu with QR code  to make your menu easy for your customers to access online

7. Operations Plan

Efficiency is key to the daily grind of running a cafe. The operations section provides a detailed look at the day-to-day operations of your coffee shop business.

What Operational Issues should you address in your Business Plan?

• Supply Chain: Where will you buy your coffee beans? Who will be your coffee roaster?
• Operating Hours: Consider the best times to cater to your target market.
• Staffing: Detail roles, such as barista, manager, and part-time support.
• Equipment: List down essential equipment, from espresso machines to ovens.

8. Financial Plan

In this crucial section of your business plan, delving into the financial specifics is paramount to lay out a concrete roadmap for the fiscal aspects of your coffee shop.

How Much Does It Cost to Start a Coffee Shop?

Starting a coffee shop is not just about brewing the perfect espresso; it’s also a substantial financial commitment. The cost for opening a coffee shop can range from $80,000 to $250,000. These costs can vary widely based on factors such as location, size of the establishment, equipment quality, and inventory requirements. Moreover, the process of opening a coffee shop might also involve unexpected expenditures, so it’s essential to account for some buffer in your budget.

How Many Ways to Fund Your Coffee Shop?

There are multiple avenues for funding your coffee venture. Traditional bank loans, personal savings, angel investors, crowdfunding campaigns, and partnerships are just a few options. It’s crucial to assess which option aligns best with your business vision and financial situation.

Important Questions to Consider When You Create Your Funding Request If you’re seeking funding, there are several questions you’ll need to answer in your business plan:

• How much money do you need to start and maintain your coffee shop until it becomes profitable?
• What will the funds be used for specifically?
• How do you plan to handle financial challenges that might arise?
• How do you plan to repay any loans or provide a return on investment?

9. Financial Projections

The financial projections section of your business plan forces you to translate your coffee shop vision into numbers, ensuring you’ve accounted for all key metrics that can make or break your venture.

Break-even analysis:

This is the point where your coffee shop’s total revenues equal its total costs. Simply put, it’s when you neither make a profit nor a loss from selling coffee.

Use this formula:  Fixed Costs / (Price – Variable Costs) = Break Even Point

Projected profit and loss statement:

This will provide a forecast of your expected income and expenses, giving a clear view of your venture’s profitability.

Cash flow analysis:

Essential for understanding the liquidity of your business, this tool is especially crucial for coffee shops, considering the fluctuating expenses and incomes coffee shops offer. When drafting this, consider who will read it, as stakeholders like investors or lenders might have specific expectations.

Coffee Shop Business Plan Template

• Mission: To offer the community high-quality coffee in a comfortable and vibrant environment.
• Vision: To become the go-to local coffee spot that fosters community connections and coffee appreciation.
• Coffee Shop Description: “Java Junction” will be a modern coffee hub that emphasizes direct-trade coffee beans and a relaxed, inclusive atmosphere.
• Costs: Estimated initial costs are $125,000.
• Profits: Projected annual profit by year two is $75,000.

2. Description of the Coffee Shop

• Coffee Shop Concept: A community-focused café emphasizing artisanal methods.
• Coffee Shop Name: Java Junction. (Consider using a coffee shop name generator for more ideas).
• Coffee Shop Type: Sit-down café with an adjacent mini-library.
• Location: Main Street, Downtown Area – chosen for its high foot traffic.
• Order Fulfillment: Orders taken at the counter with table service for food.
• Working Hours: Mon-Fri (7 am – 9 pm), Sat-Sun (8 am – 10 pm).

3. Menu Offer

• Type of Food and Drink: Coffee, teas, pastries, and sandwiches.
• Offer: From classic espresso shots to unique blends like “Lavender Latte”.
• Unique Selling Point: Every coffee product uses direct-trade beans, ensuring farmer fairness.

4. Market and Competition Analysis

• Market Analysis: The local population includes a mix of professionals, students, and tourists. Many search for quiet spots to work or relax.
• Target Customer: Professionals aged 25-40 and students.
• Size of the Target Customer: Approximately 15,000 individuals.
• Competition Analysis: Three established coffee shops within a mile.
• Size of the Competition: Ranging from small boutique coffee shops to a larger chain.
• Competitors’ Offer: Basic coffee drinks, with limited specialty items.
• Competitors’ Prices: Average of $4 for a coffee drink.

5. Investment Plan (Detailed Cost Analysis)

• Equipment: $30,000
• Renovations: $20,000
• Initial Stock: $10,000
• Licenses: $5,000
• Miscellaneous: $10,000
• Rent: $3,000
• Salaries: $10,000
• Utilities: $1,000
• Stock: $2,000
• Marketing: $1,000

6. Financial Forecast

Year one is projected to break even, with a profit of $50,000 expected in year two, and $75,000 in year three, considering growth and expanding customer base.

• Owner: Jamie Smith, a coffee enthusiast with a business degree.
• Manager: Alex Brown, previously managed a successful coffee chain for five years.
• Baristas: A team of 4 skilled individuals passionate about coffee.

8. Marketing Plan

Java Junction will use a mix of social media marketing, local print advertising, and loyalty programs to attract and retain customers. Regular events, such as “Buy Our Coffee Day” and collaboration with local businesses, will drive foot traffic and community engagement, integral components for starting your coffee shop and making it successful.

This coffee shop business plan sample is hypothetical and serves as a template. Tailoring specifics to your local market, vision, and unique aspects will be necessary. Every coffee shop has nuances that can make them successful, whether it be the coffee products they sell, the environment they cultivate, or the events they host. Focus on what will make your coffee shop stand out and be sure to engage your community.

Tips For Writing a Business Plan For a Coffee Shop

Your business plan becomes the blueprint of your vision. Here are essential tips to consider:

• Comprehensiveness is Key: Ensure your plan encompasses all sections you should include, such as marketing, financial projections, and operations. A well-rounded plan provides a holistic view of your business.
• Tailor to Your Audience: If you’re presenting to potential investors, focus on profitability and growth projections. For a landlord, emphasize the benefits your coffee shop will bring to their property.
• Specialize in Marketing: Given the competitiveness in the coffee industry, it’s crucial to have a solid marketing plan. If marketing isn’t your strength, consider hiring someone to do marketing for your venture. A strong online presence, loyalty programs, and community engagement can set you apart.
• Research Your Market: Understand what nearby coffee shops include in their offerings. Identify gaps in the market and strategize on how your shop can fill them.
• Stay Flexible: While a business plan provides direction, remain adaptable. The coffee industry is dynamic, and your ability to pivot can prove invaluable.
• Separate Sections for Clarity: If your plan becomes too dense, you might want to create a separate document for specific sections like a detailed marketing strategy or an in-depth market analysis. This makes your primary business plan concise and more readable.

Frequently Asked Questions

1. how profitable is owning a coffee shop.

Owning a coffee shop can be profitable, depending on factors like location, quality of products, and management. On average, after expenses, many coffee shops report a profit margin of around 3% to 5%, with some successful ones achieving even higher. However, it’s essential to factor in initial setup costs, ongoing expenses, and market competition.

2. How do I start a coffee shop business plan?

Starting a coffee shop business plan involves multiple steps. Begin by defining your coffee shop’s mission and vision. Conduct market research to understand your target audience and competitors. Then, detail out sections like your product offerings, pricing strategy, marketing plan, financial projections, and operational procedures. If you’re thinking of opening a coffee shop, a well-thought-out business plan is indispensable.

3. What is a business plan for a coffee shop?

A coffee shop business plan is a detailed document that outlines your coffee shop’s objectives, strategies, and operational procedures. It acts as a roadmap, guiding you from the startup phase to establishing a thriving business. Moreover, if you need a coffee shop business loan or investment, this plan becomes crucial in convincing stakeholders of your venture’s viability.

4. What are the 4Ps in a coffee shop business plan?

The 4Ps stand for Product, Price, Place, and Promotion. In the context of a coffee shop:

• Product: What type of coffee and related products will you offer?
• Price: How will you price your coffee? Will it be premium or competitive?
• Place: Where will your coffee shop be located? Is it accessible to your target audience?
• Promotion: How will you market your coffee shop? Will you offer promotions or loyalty programs?

These elements help in creating a marketing strategy tailored to your coffee shop’s unique needs and market position.

Related Coffee Shop Resources

• How to start a coffee shop with no money
• How much do coffee shop owners make
• Coffee shop names
• Coffee shop name generator

Launching a coffee shop is not just about brewing the perfect cup but weaving a narrative that resonates with your community, fostering an ambiance that people gravitate towards, and maintaining a seamless operation that drives profitability. The meticulous creation of a business plan is a pivotal step in this endeavor. It’s the beacon that guides budding entrepreneurs through the complexities of the coffee industry. In such a competitive marketplace, a well-structured, comprehensive business plan can make the difference between a fleeting venture and a thriving institution. To potential coffee shop owners, embrace the process, let your passion shine through in your plan, and remember that every great coffee shop started with a simple idea, much like a single coffee bean ready to brew greatness.

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Top 10 Cafe Business Plan Templates with Samples and Examples

Sapna Singh

It is well-known that people enjoy a freshly prepared cup of tea or coffee at any time of the day! Experts estimate that over 2.5 billion cups of coffee are consumed globally daily. It is the world’s second-most traded commodity after crude oil. The ready-to-drink sector, which includes cafés, is expected to rise by 67%. Unsurprisingly, cafés are becoming popular as hangouts for friends, family, and other gatherings. This present boom demonstrates that opening a coffee shop may be profitable, if done correctly!

Opening a restaurant, cafe, or coffee shop is both exhilarating and daunting. Explore SlideTeam’s finest Business Plan Templates  to help you transform your culinary passion into a profitable venture.

A thorough business strategy is essential whether you are opening a small coffee and internet café or a coffee house bistro. It will serve as a roadmap for the development of your café and is critical to its success.

Café Business Plan: Roadmap for your entrepreneurial adventure

You can validate your company idea using this document. It enables you to identify your target market, marketing approach, and strategies to set yourself apart from your rivals.

Explore our Bakery Business Plan Templates  as your ideal partner in making your culinary art dreams a reality. Click here  to learn more.

This blog lays the framework for turning your idea of the café into a reality. It provides examples and samples to write your first café business plan. Use SlideTeam’s Top 10 Café Business Plan Templates to develop a strategic plan to present to potential backers, partners, and investors. These templates provide a description of your company’s concept and its success strategy of providing exceptional customer service, a magnificent menu, and a calm atmosphere for customers to enjoy their coffee. The 100% customizable nature of the business plan ppt templates allows you to edit your presentations. The content-ready slides give you the much-needed structure.

Use SlideTeam’s PowerPoint Templates to help you plan, start, and grow your café business!

Create a niche for your café in the market and set a course to success with the PPT Templates listed below.

Template 1: Executive Summary Related to the Company PPT

Use this PPT Template to present a brief overview of your coffee shop business plan. This executive summary template includes your café business idea, with a company overview, services, mission, consumer focus, and success factors. Mention the cafe’s name, website address, year of formation, location, etc. to sum up the business plan. Employ this presentation template to provide a description of the coffee shop's identity and principles, providing potential investors or stakeholders a clear idea of what the company stands for and its goals. Get it now!

Download this template

Template 2: Business Unique Selling Propositions

Highlighting the unique traits of your café marketing plan to help you enhance sales. Use this PPT Template to sell your traits through a café business strategy to attract your ideal customer. It promotes clarity and concentration, premium taste, high-quality beans, etc., to develop a reputation in the industry for quality and dependability. This value proposition positions the café for success in the competitive coffee shop industry with emphasis on these critical differentiators. Employ this download to increase the visibility of your standout elements and attract the attention of new and existing customers, making your brand more engaging. Get it now!

Template 3: Coffee Shop Financial Summary Projections

Use this PPT Template to present a financial projection overview for your café startup plan. This coffee shop business plan temmplate is intended to assist you in estimating revenue based on customer traffic. Use this template to showcase EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), net income, and net income, with significant notes, that demonstrate your ability to repay a loan and the possible return on investment that potential investors can expect. This presentation offers a new set of projections for your new coffee business. Get it now!

Template 4: Competitive Analysis and Competitor Pricing

Need a detailed analysis of key areas of competition to optimize your café business strategy? Use this PowerPoint Presentation to compare and contrast major stakeholders in your café startup plan. This slide depicts competition analysis and price of types of food such as coffee tea, breakfast, lunch, etc., to discover areas where the café may differentiate itself and build a distinct value proposition. The results of this study can be used to modify the company’s offerings to match the needs of its target market and strategically position it to increase market share. This analysis is carried out on products and services, strengths, food types, area/location serviced, and social media presence. Use this presentation template to make crucial strategic decisions for the café. Get it now!

Template 5: Marketing Plan with Promotional Strategy

Create a framework for your café marketing plan with this PPT Template. This slide contains a complete café business strategy to help you launch a new café or create continuing marketing promotions to promote sales. It comprises steps such as reaching out to customers through direct mail, public relations, advertising, etc., to engage with them and create demand. This enables you to display and advertise your company. Deploy this presentation to learn how to establish a restaurant brand that stands out, draws guests, and encourages repeat visits. To know more, click on the Restaurant Business Plan template

Template 6: Management Team for Startup Coffee Shop Business

Use this PPT Template to highlight the organizational structure of your café business. This management summary portion of your café startup plan describes the structure, management team, skills and portfolios etc. This template specifies roles and responsibilities as well, providing a complete framework for the strategy. Use this download to highlight the management team’s talents and experiences that demonstrate their capacity to expand a business. Get it now!

Template 7: Source and Use of Funds

Your coffee shop business plan must include a precise funding breakdown. Use this PowerPoint Presentation to demonstrate the sources and uses of finances, such as owner contributions, commercial loans, lines of credit, etc., to demonstrate where the money you require is coming from and what it will be used for. This will enhance the value of your café business plan by demonstrating to a lender how much finance you require, what you have as collateral, and the size of loan you require. Grab it now!

Template 8: One-Pager Café  Opening Business Plan

This one-page PPT Template summarizes a coffee shop business plan. Use this presentation template to showcase your compelling café business idea and profile that includes your café name, logo, founder, vision and mission statement, business summary, industry analysis, and marketing plan. This template underlines your USP with a pricing plan that ensures profitability and affordability. It helps you navigate marketing strategies and difficulties with answers, as well as identify your competition.  Grab it now!

Template 9: Restaurant Café  Business Idea PPT

A thriving coffee house requires three components to convert visitors into regulars: Selection, quality, and seasonality by stocking up on popular products. Use this PPT Template to create a café business strategy that focuses on providing something distinctive and capitalizing on seasonal phenomena. This complete deck will help you meet specific customer expectations by showcasing your executive summary, challenges, solutions, USPs, financial estimates, etc. Highlight key insights that will not only aid with service sourcing, but also raise consumer demand. Grab it now!

Template 10: Bi-fold Café Bistro Business Plan Report

Use this PowerPoint Template to present a café bistro business strategy. This plan provides an opportunity for financial institutions to assess our vision and strategic emphasis. It includes details on company, products and services, market emphasis, action plans and forecasts, management team, and financial plan. Use this presentation to foresee elements of managing and operating a café and establish a solid foundation for making your café ideas a reality. Grab it now!

The unspoken component of running a successful café business

A café business plan is a basic summary of your company’s concept and success approach. Use SlideTeam’s PPT Templates to create a well-written business plan that shows your investors and yourself why your café is capable of success.

P.S. Do you want to open a coffee business but aren't sure where to start? Check out our Coffee Shop Business Plan PPT Templates  to help you create a complete and effective business plan.

FAQs ON CAFÉ BUSINESS PLAN

What is a café business plan.

A café business plan is a framework for planning and forecasting areas of managing and operating a café, such as the menu, location, competitive analysis, market research, sales, financing, employee development, and much more. It is beneficial to explain your business concept and how it will prosper. This document offers information about your competition, target market, and pricing structure to get investment partners.

How do I start a café business?

• Research the coffee business
• Define your vision
• Create a business plan
• Choose a location
• Find the best suppliers
• Source commercial equipment
• Design your café and a menu
• Hire the right people
• Market your café

Click here to discover more about the many types of information that will go into your café business plan, as well as further tips on how to create one.

How do I attract customers to my café?

Following are some tactics for attracting people to your café or coffee business:

• Set reasonable prices and provide discounts
• Marketing and promotion on social media
• Email and website marketing:
• Loyalty programs
• Use a POS (Point of Sale) system and contactless menus to improve your business processes for your customers. This includes shorter client wait times, faster payments, and so on.
• Offer gift vouchers, freebies, and free Wi-Fi.

Related posts:

Starting a restaurant, cafe, or coffee shop here are 18 best business plan templates for you, how to craft a perfect coffee shop business plan access the best pdf word document, coffee shop business plan templates: a pathway to profitable brews.

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Coffee Shop Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Coffee Shop Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Coffee Shop Business Plan

Whether you are planning to start a new business or grow your existing coffee shop, you’ve come to the right place to create your coffee shop business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their coffee shops.

A coffee shop business plan is used to start and/or grow your business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

Sample Business Plan for a Cafe or Coffee Shop

Below are links to a sample of each of the key elements of a coffee shop business plan example:

• Executive Summary – The Executive Summary will provide an overview of your coffee shop business plan including highlights from each section.
• Company Overview – The Company Overview section provides a brief business description and history of your coffee business, as well as your business model, retail space location, and mission statement.
• Industry Analysis – The Industry Analysis leverages market research to provide an overview of the coffee industry, including trends, growth potential, and competition in the coffee market.
• Customer Analysis – The Customer Analysis section provides insights into the segments of your target market (i.e., business professionals, college students, etc.), including their needs and preferences, as well as how you plan to attract and retain them.
• Competitive Analysis – The Competitive Analysis section provides an opportunity for you to research other coffee shops in your area and identify their strengths and weaknesses. You will also detail your unique selling proposition (i.e., high-quality coffee, specialty coffees, welcoming atmosphere, etc.) for attracting new and repeat customers.
• Marketing Plan – The Marketing Plan offers a detailed marketing strategy for promoting your coffee shop to attract and retain customers, including advertising and social media marketing. It will also include your pricing structure for your products.
• Operations Plan – The Operations Plan includes information on the daily operations of your coffee shop, such as staffing, inventory management, and equipment.
• Management Team – The Management Team section introduces the key players in your coffee shop, their roles and responsibilities, and their relevant skills and experience.
• Financial Plan – The Financial Plan will provide detailed projections for the financial performance of your coffee shop, including startup costs, operating costs, revenue, and expenses. This section should include an income statement, balance sheet and cash flow statement.

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is a coffee shop business plan.

A coffee shop business plan is a plan to start and/or grow your business. Among other things, it includes your company overview, allows you to conduct a market analysis to identify your target market, includes a sample menu, presents your marketing plan and pricing strategy to attract your local customer base, details your sales forecasts, and provides the income statement, balance sheet and cash flow statement for your coffee shop.

You can  easily complete your coffee shop business plan using our Business Plan Template for a Coffee Shop here .

What Are the Main Types of Coffee Shops?

The different types of coffee shops include cafes, coffee bars and coffeehouses that sell coffee drinks and other snacks. Some coffee shops offer lunch and dinner menus and are close to being full-service restaurants. There are also coffee shops that are more accessible for people on the go or those who want to make their own coffee. These are retail coffee shops, drive thru coffee shops, coffee carts and trucks, and roasters or retailers.

What Are the Main Sources of Revenue and Operating Expenses for a Coffee Shop?

The primary source of revenue for many coffee shops come from its food and drink sales, which includes brewed coffee, coffee beans, seasonal drinks and refreshments, and baked goods. Gift card and merchandise sales like tumblers, mugs, and coffee makers also contribute to a coffee shop’s revenue stream.

The expected expenses for a coffee shop are the cost of coffee and food products, salaries and wages, rent, and advertising costs. 

How Much Does it Cost to Start a Coffee Shop?

Opening a coffee shop business can cost anywhere from $40,000 to $100,000 depending on the size and location of the business. Additional costs such as inventory, employee salaries, and marketing expenses can range from $5,000 to $15,000 per month.

How Do You Get Funding for Your Coffee Shop Business?

The best way to get funding for a coffee shop business is through a bank loan or utilizing your personal savings, business credit cards or borrowing from friends and family. You can also look into government grants or loans, or try to find a partner who is willing to invest in your business. Whatever route you choose, be sure to have a solid coffee shop business plan for potential investors including a sales and marketing plan as well as a realistic idea of how much money you need to get started.

How to Start a Coffee Shop?

• Determine the type of coffee shop business you want to open . There are many different types of coffee shops, from small mom-and-pop shops to large chains.
• Create a coffee shop business plan. This will outline your plans for starting and running your coffee shop. 
• Secure funding . You will need money to start and run a coffee shop, so you'll need to find investors or borrow money from a bank or other lending institution.
• Find a location for your coffee shop. This can be tricky, as you'll need to find a space that is affordable and has good foot traffic.
• Equip your coffee shop . You'll need to buy or lease equipment such as espresso machines, coffee brewers, and furniture in addition to the coffee beans and other food products you plan to sell.
• Hire staff . You'll need employees to run your coffee shop, so post job ads and interview potential candidates.

Learn more about how to start a successful coffee shop business:

• How to Start a Coffee Shop Business

Where Can I Get a Coffee Shop Business Plan PDF?

You can download our free coffee shop business plan template PDF . This free coffee shop business plan template can be used to write your own business plan.

CAFE BUSINESS PLAN: How to Write With Templates & All You Need

• by Folakemi Adegbaju
• August 10, 2023

Table of Contents Hide

Why do you need a cafe business plan, tips for writing a cafe business plan, #1. executive summary, #2. business description, #3. industry research, #4. the marketplace, #5. swot analysis, #6. marketing plan, #7. financial plan, #8. operational plan, cafe business plan template, is a cafe a profitable business, how do i start a cafe idea, is it hard to open a coffee shop, how do you attract customers to your coffee shop, do cafes make money, how much does a cafe owner make a month, final thoughts, why do most cafes fail, what does a coffee shop owner do, what are the duties of a café manager.

The first step to a successful cafe is developing a business plan. Make sure your cafe business plan is prepared if you intend to pitch investors for financing because they will undoubtedly request to view it. This article discusses how you can write an impactful cafe business plan for your cafe, and it comes with a cafe business plan template checklist to help you arrange things accordingly.

Get the cafe business plan template

 Let’s start the journey.

What Is a Cafe Business Plan?

A cafe business plan is a simple way to show how serious and committed your business is. It outlines your devotion as a business owner and can be compared in order to gauge how successful your cafe is. It includes an executive summary, an overview, and a description of a coffee shop business, market data, marketing strategies, business operations, and financial plans, among other essential components of a solid cafe business plan.

A cafe business plan is not only necessary to keep your business on track for success, but it also demonstrates your commitment as a business owner. You can sketch out and examine all conceivable outcomes in your cafe business plan, from the advantages to the challenges posed by competitors. Without one, determining whether your company is flourishing might be difficult.

A cafe business plan gives your cafe shop a clear direction while also emphasising any obstacles and competitive businesses you may face. With this knowledge at your disposal, you may determine ahead of time what solutions you will require for any issues you might run into, thus increasing your chances of being a successful business owner.

You can now begin creating your business plan for a coffee shop. Here are some helpful suggestions to help you write more effectively:

• Gather helpful materials to aid you in your writing. This can include how-to manuals, market studies, emerging trends, and real or hypothetical sample company plans. All of these can serve as your source of inspiration and be incorporated into the relevant areas of your cafe business plan.
• Write as much as you can without censoring yourself. Once everything is laid out, you may decide which elements apply to which sections of your cafe business plan.
• Avoid being too focused on a single piece. If you run into writing difficulties, make a note and move on to the next paragraph. When you have more knowledge or are more certain, you can go back and review it.
• Every worthwhile thing requires time. Your cafe business plan will too. If it takes longer than you anticipated, don’t be concerned. You’ll be able to hone your message and articulate your ideas in a cogent and concise manner as time goes on and you continue to work on your plan.

How to Write a Cafe Business Plan

There are numerous approaches to writing a cafe business plan, and we provide important advice from subject-matter experts to get you started. This will help you write the perfect cafe business plan.

Although the executive summary should be the first section of your business plan, it should actually be the last section completed because it provides a summary of the entire cafe business plan. It should be no more than one page in length and is the most crucial section of your business plan. To help your audience save time, the goal is to outline the key ideas of the plan. If they wish to learn more, they can then go back and examine the portions that most interest them. Keep this section brief while still being inspirational.

Your cafe’s concept will be realized in this part. It’s important to give a thorough description of your business, including specifics like how the concept will look, where it will be located, and the type of atmosphere or brand you plan to establish. Your company’s description paints an accurate image of your mission and objectives.

This entails gathering in-depth information about nearby cafes, their average foot traffic, break-even points, and other important insights that can help you run your own cafe successfully. Determine possible locations by analyzing and making a list depending on your target market. The majority of cafes perform better in locations with heavy foot traffic, like malls or shopping centres. The site ought to be convenient for customers and reasonably close to your suppliers and vendors.

Determine possible locations by analyzing and making a list depending on your target market. The majority of cafes perform better in locations with heavy foot traffic, like malls or shopping centres. The site ought to be convenient for customers and reasonably close to your suppliers and vendors. The competitors you face should be mentioned in your cafe business plan.

You want to show in this area of the cafe business plan that you have done a comprehensive analysis of your target market and that you can show there is a market for your product or service. Analyzing your competitors’ strategies is a smart way to collect intelligence. Visit your competition, make notes about their menu items, marketing strategies, operational procedures, pricing, and brand positioning, and then do a thorough analysis of your results.

You can also inquire about the performance of local companies from residents in the neighbourhood where you intend to live. Your marketplace analysis will be realistic and more clearly depict how your business can succeed if you gather as much information as you can.

Strengths, Weaknesses, Opportunities, and Threats are referred to as SWOT. A thorough examination of the numerous aspects, including market- and regulatory-related changes, that may have an impact on how your cafe is run must be included in your cafe business plan. You can make sure that you are better equipped to manage risks by performing a SWOT analysis. It will also provide you with a greater understanding of the industry and enable you to better plan for unforeseen circumstances that can negatively impact your café.

If you don’t advertise your café effectively, it might not be profitable. You should therefore set aside money in your budget specifically for marketing. This should be mentioned in the cafe business plan to provide a thorough account of your marketing plan.

The financial plan is the most crucial part of your business plan for your cafe , especially if you require loan funding or are trying to convince investors to invest. Your financial strategy needs to show the expansion and profitability potential of your company.

For your cafe to be successful, you must have a solid operations plan. This needs to contain every component necessary for you to operate your café successfully every day. These would consist of:

• Choosing the Right Employees: This is essential to running your cafe. All potential avenues for finding suitable staff should be covered in a thorough hiring plan, including recruiters, employee recommendations, and advertising in newspapers, job sites, or on other social media platforms.
• The most important duty, after hiring the correct workers, is to train them. For your personnel to follow, develop Standard Operating Procedures (SOPs) and a training manual. Techniques for managing crises and disasters must be included in the training.

Download our cafe business plan template.

It is important to note that aside from having a business plan, there are more crucial steps to how you can start a cafe business. The essence of this cafe business plan template is to ensure that you follow all the necessary steps that can help you start your business. The checklist below will serve as a reminder. 

• Create a concept
• Select a name
• Compose a business plan
• Have financial projections
• Approved legal aspects
• Employ your management team
• Promote your business
• Provide your menu

Download our cafe business plan template .

Yes, a cafe business is a very profitable business. Depending on food production costs and other KPIs, most coffee shops turn a profit during their first few years of being in business. A cafe can anticipate a double-digit increase in sales by the fifth year. You should also budget carefully for unforeseen expenses, startup fees, and the costs associated with your first year of business.

Following the right steps when you are about to start a cafe business is very important. Succeeding in business will surely be easier once you follow the right steps. We’ve listed below some of the steps you can follow when you want to start your cafe business:

• Define your vision.
• Create a detailed business plan.
• Choose a location.
• Find the best suppliers.
• So source commercial equipment.
• Design your café
• Create a menu.
• Hire the right people.

Even though opening an independent cafe requires a lot of labour, the process doesn’t have to last for a very long time. You’ll position yourself for success early on if you concentrate on building these fundamental components while creating your cafe business plan.

What is the essence of your cafe if you have no customers or an overflow of customers? Here are some steps you need to take to attract customers to your coffee shop:

• Look at your pricing.
• Start a loyalty card program.
• Run a competition, particularly if you can get the local press to give you coverage.
• Tap up your suppliers for marketing materials
• Consider branded takeaway cups

Cafes can have gross margins of up to 85%, but small cafés often have operating incomes of just 2.5% of gross sales on average. Despite the financial obstacles, if you create a cafe, you might discover that you’re doing work you enjoy and making a gathering place that serves as a focal point for your neighbourhood.

A modest independent coffee shop’s typical annual revenue is between £100,000 and £150,000, and 22% of all cafés and coffee shops reach this level. However, just 12% will earn more than £250,000, while only 5% have a turnover of £25,000 or less.

If you’re thinking about opening a cafe, the first thing on your priority list should be preparing a business plan. Keep in mind that you are preparing the way for success. As a result of having your finances in order, you’ll be able to save money and actually obtain funding from banks and investors. The general message you want to convey must be woven into your business plan.

Coffee shops close their doors for a variety of reasons, including weak management, insufficient revenue to pay expenses, unreliable staffing, poor customer service, and excessive debt.

The choice of what kind of coffee to sell at your shop is entirely up to you as the owner. You must also make sure that your brewing procedures are excellent. However, coffee cannot generate all of the sales by itself. In actuality, only around 40% of a coffee shop’s overall sales come from coffee.

Managers of cafés are in charge of day-to-day operations. In addition to ordering café supplies, they hire, train, and oversee café staff, handle client complaints, and make sure that food safety and health rules are followed.

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Last Updated on August 11, 2023 by Folakemi Adegbaju

Cafe Business Plan Template [Updated 2024]

Cafe Business Plan Template

If you want to start a Cafe business or expand your current Cafe, you need a business plan.

The following Cafe business plan template gives you the key elements to include in a winning Cafe business plan.

You can download our Cafe business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a Cafe business plan sample:

I. Executive Summary

II. Company Overview

III. Industry Analysis

IV. Customer Analysis

V. Competitive Analysis

VI. Marketing Plan

VII. Operations Plan

VIII. Management Team

IX. Financial Plan

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Cafe Business Plan Outline

• Cafe Business Plan

Article Index:

2.0 Company Description

3.0 products/services, 4.0 market analysis, 5.0 marketing strategy and implementation, 6.0 organization and management, 7.0 financial plan, 1.0 executive summary.

The Russet Cup will be a one of a kind coffee house / café located in Overland Park, Kansas. The 1,500 square foot café will be located in the newly constructed Market Square Plaza located on the northeast corner of 135th Street and Mission Street. The anchor tenant, the Price Chopper grocery store, has already taken occupancy and the excellent location brings more than 10,000 shoppers weekly.

The Russet Cup, aptly named for the aromatic brown liquid that will fill the cup, fills the void of original cafes in the market area, stands out from its corporate peers with their fast food concepts and fast services. The Russet Cup is the alternative to fast food/commercial/coffee shops and offers a much calmer, civilized gourmet coffee experience. There are no televisions in the café, the background music is subtle and work from local artists will hang on the walls. The café is well appointed with overstuffed leather chairs and sofas in a library like setting. The café is reminiscent of times gone by – yet is cutting edge technologically with WIFI and state of the art espresso machines.

The Russet Cup measures its financial success in terms of increased market share and in earnings. With a total local market of $54 million, this is a tremendous opportunity! The keys to success will be the ability to offer quality gourmet coffees, take advantage of its small size, and reliance on an outstanding barista staff. In order to achieve these goals, the café will offer some the area’s finest gourmet beans from local distributors. Because of its small size, the café can enjoy larger margins in the form of lower overhead. The cafe will hand select baristas and offer salaries comparable to the chains. In turn the baristas will be trained to cross-sell, and sell the higher margin products.

1.1 Business Objectives

The primary objectives of the business plan for Russet Cup are below:

To increase revenues $36,000 or 5% in Year 2 and by $73,000 or 10% by Year 3 Achieve a profit margin of 5.2% in Year 2 and 6.90% by Year 3 Be the Café of Choice in the Overland Park area and recipient of the Best Coffeehouse Award

1.2 Mission Statement

The Russet Cup is committed to its products and employees which they believe is the recipe for market success.

1.3 Guiding Principles

The Russet Cup is committed to values such as excellence, passion, quality, integrity and leadership which allow them to navigate challenges and provide for future opportunities. These core beliefs start with their commitment to their products and their employees.

The Russet Cup rewards excellence and cherishes loyalty. The café will work with its employees to build strong businesses and a secure future.

1.4 Keys to Success

The Russet Cup stands out from the competition. Below are their Keys to Success:

Great Products – providing exemplary products at market prices – will make customers want to return again and again Hire Quality Baristas – Pay employees rates similar to the larger chains with opportunities for long term careers and opportunities for advancement with long term plans to open a second facility Convert Customers to Connoisseurs – Only 40% of the nations coffee drinkers consume premium ground and whole bean coffee – this will aid in continued growth

The Russet Cup will be a coffee house / café located in the Overland Park, Kansas. Located in the Kansas City area, the cozy café will be located in the newly completed Market Square Plaza. The café will serve gourmet coffees, espresso and drip coffee, lattes, and smoothies. The simple pastry offerings may vary with seasonality but the primary line will be muffins, breads, cookies, scones, and rolls. All pastries will be supplied daily by a local bakery.

The café will be owned and operated by Owen Jones, a veteran restaunteur with several years experience running and managing chain restaurants. The café will be open for business Monday – Thursday 7-10, Fridays and Saturdays 7-11 and closed Sundays.

2.1 Ownership

The Russet Cup will be owned 100% by Owen Jones. Mr. Jones a graduate of Kansas State University has an undergraduate degree in business administration. During high school he worked as a waiter in a local hospital coffee shop that purchased its beans from a local roaster. In addition to being an avid coffee drinker himself, this job allowed him to learn about the business first-hand. In college, Jones worked in a campus coffeehouse for four years, eventually rising to the position of assistant manager. Following graduation, Jones secured a business development position for regional restaurant chain, which provided additional first-hand exposure to the food and beverage industry—especially the steps involved in establishing new locations.

2.2 Legal Form

The Russet Cup will be formed as an S-Corporation wholly owned by Mr. Jones.

2.3 Start-Up Summary

The Russet Cup will have seating for 40 patrons. The rent is $2,075 a month, with a three-five-year lease available. The site consists of 1500 square feet of leased space consisting of a dining room, a coffee bar, two restrooms, and a storage room in back. To be used as a restaurant, this storefront needs to be plumbed and wired appropriately. Painting, new floors, and countertops are also needed. A custom coffee bar needs to be built. With materials bought on sale and volunteer labor, the cost to renovate will be $71,725. The coffeehouse equipment will consist of two commercial espresso machines, air pots and urns, a commercial blender, commercial brewer, top loading coffee bins, barista syrups, cold drink dispenser, frothing equipment, a commercial refrigerator, microwave and stainless steel prep bar. The cost for the equipment is $38,275. The furniture will consist of leather couches, and chairs (purchased at auction), coffee tables, bookcases, and window treatment. The artwork will come from local artists and will be sold on a consignment basis. The books were secured via donations. Total cost to furnish is $14,000. Other startup expenses will be dishes, furniture, rent deposit, and marketing.

2.4 Location and Facilities

The new coffeehouse is located in the highly desirable Overland Park, Kansas area at the northeastern intersection of 135th Street and Mission Street in the new Market Square Plaza. The property is located in an excellent location. With an easy 6 minute drive time to I-435 and 69 Highway. The property is 95% leased with Price Chopper as the Anchor Tenant. Other tenants include: Life Spring Med Spa, Jane’s Canines (Pet Store & Boarding), Pride Cleaners Kahn Dental and Swim U. Price Chopper brings more than 10,000 shoppers per week to the center. The location is comprised of a population of 9,420 within a one mile radius, 61,102 within 2 mile radius and 149,550 within a 5 mile radius – with a median household income of $120,856. Sprint / Nextel’s corporate office is located within 2 miles of the site.

Market Square Site Plan

3.1 Products/Services Descriptions

The Russet Cup’s primary offering is gourmet roasted coffees with such varieties such as mocha, carmelicious, white mocha, candy bar latte, and brewed coffee. Complementing the coffee will be a smoothie line including wild berry, strawberry, peach, mango and lemonade. Rounding out the simple menu line will be pastries obtained with an outside supplier, freshly made and delivered daily. The pastry offerings may vary with seasonality but the primary line will muffins, breads, cookies, scones, and rolls.

3.2 Competitive Comparison

The research methodology is based on unique coffee shops/cafes in the greater metro area and omits larger chains or franchises. The findings reveal eight unique competitors.

Roasterie Café 4511 W 119th St Leawood, KS 66209 http://www.theroasterie.com/Cafe/

Take Five Coffee Bar 5336 W 151st St Overland Park, KS 66224-8701 http://www.takefivecoffeebar.com/Welcome_to_Take_Five_Coffee_Bar

Homer’s Coffee House 7126 W 80th St Overland Park, KS 66204-3715 http://www.homerscoffeehouse.com/about.php

Morning Glory Espresso 5606 Johnson Dr Mission, KS 66202-3323 http://www.morninggloryespresso.com/

Revo Cup Coffee 11030 Quivira Rd Overland Park, KS 66210-1239 http://revocup.com/blog/

Daily Dose Coffee and Bar 12056 W 135th St, Overland Park, Kansas

Java Crossing 8830 W 95th St Overland Park, KS 66212-4051

Hattie’s Fine Coffees 4195 Somerset Dr Prairie Village, KS 66208-5242 http://www.hattiesfinecoffee.com/Home_Page.html

3.3 Product/Service Sourcing

The Russet Cup has negotiated supplier agreements with several local food-service wholesalers and coffee wholesalers in the Overland Park area that have a reputation for quality and reliability:

Mean Beans Coffee Roasters Overland Park Brewers Healthy Harvest Bread Co. Mary’s Organics

In the event that one of the aforementioned specialty suppliers cannot meet their needs, the following national suppliers can both provide all of the food-service products that they require. In addition, the following wholesalers will supply the café with general restaurant supplies:

Lawrence Food Products Corp. Gerry Food Supply Inc.

3.4 Inventory Management

3.5 warehousing and fulfillment, 3.6 future products/services.

Young families which comprise the third largest market share in Overland Park, are often overlooked in the coffee market. Coffeehouses traditionally have not been considered ‘kid’ friendly. To overcome this hurdle, the Russet Cup has long term plans (5 years) to open a 2nd coffee shop: A combination indoor play area / coffee bar. This concept allows parents and caregivers an opportunity to meet and relax with other adults while the children can enjoy the indoor playground amenities.

Additional future services will include in-store sales for home purchase as well as an online store.

The website will have an option to purchase prepaid gift card program – Prepaid gift cards not only provide immediate cash, but also reduce credit card transaction charges and draw new customers to the business.

Overland Park, Kansas is an award-winning place to live and work and is considered the leading business community in the Midwest. National publications and organizations recognize Overland Park for its business environment and livability. Here’s a sampling: 6th Place, America’s Best Places to Live Money, Top 50 Cities to Live and Play, National Geographic Adventure, 3rd Hottest Town in the U.S., Money, Among 20 Best Places to Live & Work Employment Review, One of only 72 Sterling Tree Cities in U.S., National Arbor Day Foundation, Top 10 best Locations to Raise a Family, Southern Business and Development, 1st Place, Kid Friendly Report Card, Population Connection, 2nd Best City in America to Live Business Development Outlook.

Overland Park is at the core of one of the most dynamic local markets in the U.S. It offers easy access to the Kansas City region’s amenities and, as part of the Kansas City metropolitan area; it is within the most centrally located major market in the nation. I-35, I-435, I-635 and U.S. Highway 69 all pass through Overland Park, and no point in the city is more than 3.5 miles from a freeway. The city maintains an excellent arterial street network and plans to construct additional lane-miles as the area grows. Three airports serve the region. Kansas City International Airport (MCI) is just 25 interstate highway miles north of Overland Park. Johnson County Executive Airport—the second busiest in Kansas—provides complete services for private business jets and general aviation. New Century AirCenter, just 12 miles southwest of the city, offers general aviation services and accommodates cargo or passenger jets of any size.

Overland Park supplies some of the most highly educated workers in the nation, with 97% of Overland Park adults over age 25 holding at least a high school diploma. Johnson County, in which Overland Park is located, ranks first among the country’s 231 counties with populations greater than 250,000. The county ranks sixth in percentage of adults with at least a bachelor’s degree and 16th in the percentage with a graduate or professional degree.

The Overland Park area has a total population of 175,265 based on the 2010 census. The median household income is $77,881 and the median age is 37.9. (2010 US Census)

4.1 Industry Analysis

The US coffee shop industry includes about 20,000 stores with combined annual revenue of about $10 billion. Major companies include Caribou Coffee, International Coffee & Tea (The Coffee Bean & Tea Leaf), Peet’s Coffee, and Starbucks. The industry is concentrated: the top 50 companies generate more than 70 percent of sales. Coffee shops are part of the specialty eatery industry, which also includes retail outlets specializing in products such as bagels, donuts, frozen yogurt, and ice cream. (First Research)

Competitive Landscape Consumer taste and personal income drive demand. The profitability of individual companies depends on the ability to secure prime locations, drive store traffic, and deliver high-quality products. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete effectively by offering specialized products, serving a local market, or providing superior customer service. Specialty eateries, which include coffee shops, are labor-intensive: average annual revenue per worker is about $50,000. Coffee shops compete with businesses such as convenience stores, gas stations, quick service and fast food restaurants, gourmet food shops, and donut shops. (First Research)

Products, Operations, Technology Major products include beverages and food. Beverages include brewed coffee and tea; espresso drinks (cappuccinos, café lattes); cold blended beverages; bottled water; soft drinks; and juices. Food includes pastries, bakery items, desserts, sandwiches, and candy. Many coffee shops sell whole or ground coffee beans for home consumption. Some coffee shops sell coffee or espresso-making equipment, grinders, mugs, and other accessories. (First Research)

4.1.1 Market Size

The US coffee shop industry includes about 20,000 stores with combined annual revenue of about $10 billion. Major companies include Caribou Coffee, International Coffee & Tea (The Coffee Bean & Tea Leaf), Pet’s Coffee, and Starbucks. The industry is concentrated: the top 50 companies generate more than 70 percent of sales. (First Research)

4.1.2 Industry Participants

Within 5 miles of the subject, are 37 businesses involved in the coffee industry, including chains, restaurants, and tea houses reporting annual revenues in excess of $54 million. Of these 37 businesses, 20 are Starbucks coffee shops capturing $35.7 million in revenues or 66% of the market share. An additional 8 coffee houses are franchises capturing $9.7 million represent 18% of the market share. The comparables – those closely held coffee shops/cafes that will compete for the subject’s business represent $8.3 million in annual revenues or 15% of the total market.

Cafe Industry Participants

Cafe Target Market

The Russet Cup is targeting three primary groups residing in their direct marketing area. These individuals prefer unique venues and avoid the big chains and franchises. They prefer their local neighborhood and will support local businesses if the business warrants.

4.1.3 Main Competitors

This competitor has been operating in the greater MSA since 2005 opening its first café in Brookside, Kansas and then at the Leawood location in 2010. The 3,300 square foot café offers an assortment of pastries, bagels and cookies. Beverages include Harney and Sons teas, signature blends, espresso and specialty drinks. The café has 11 employees and generated $11 million in revenues in 2011. The subject’s advantage is its smaller, cozier environment.

This competitor operates from a 3,300 square foot space. The café has WI-FI. In addition to serving coffees and smoothies, the café offers more food offerings with a full service kitchen offering light breakfasts, and sandwiches and wraps. In the evenings the café has musicians performing on a small stage. The Café also has a full liquor license. The broad offerings of amenities do not make this a true comp for the subject.

This competitor operates from a 6,300 square foot space in a shopping center. The shop was established in 2001 and in 2011 reported $2 million in revenues. The shop employs 21 employees and provides music on the weekends. The subject’s advantage is its smaller, cozier, and quieter environment.

This competitor is similar in size to the subject operating from 900 square feet in a retail shopping center. The Morning Glory Espresso has been operational since 2005 and has 3 employees and reported revenues of $300,000 in 2011. The coffee shop is open 6 days a week and open for breakfast. The shop has a full kitchen and in addition to pastries provides traditional breakfast offerings. The store is for sale, which could potentially impact market share.

This competitor occupies a 2,100 square foot shop and has 7 employees. In 2011 its annual sales were reported to be $700,000. The Revo Cup is a specialized roaster. The owners from Ethiopia roast the Ethiopian coffee in the store themselves, providing a truly unique roasted coffee experience. Due to its unique roasting methods, and its limited food offerings, the subject should do well against this competitor.

Daily Dose Coffee and Bar 12056 W 135th St, Overland Park, KS

This competitor occupies 2,700 square feet in a strip center and has been in operation since 2003. The coffee shop/bar is open 7 days a week and has a full kitchen. The shop occasionally offers live music on the weekends. The shop employs 9 and reported revenues in excess of $900,000 in 2011.

This competitor leases a 2,700 square foot stand alone pad in a shopping center. The shop has drive throughs on both sides with a small walk up. The business was established in 2003 and is privately held. The store employs 9 and reported annual revenues of $900,000 in 2011. Known primarily for its convenience and breakfast sandwiches, this shop does not directly compete with the subject’s indoor sit down experience.

Established in 2005, Hattie’s has a staff of 17 and annual revenues of $1,700,000. The store is larger than the subject and occupies 5,100 square feet. Hattie’s Menu options are similar to the subject with a focus primarily on coffee, lattes, pastries and simple breakfast sandwiches. The facility has a great reputation and following. To capture a portion of this market, the subject will have to convince these customers that a cozier and quieter atmosphere is a more enjoyable café experience.

4.1.4 Market Segments

The Russet Cup is targeting the three top segments of the population representing 39% of the population in the Overland Park area:

Boomburbs (29%) – Younger families with a busy, upscale lifestyle. Median age of 34. Most households operate on two incomes; median household income is $100,000. Product purchases reflect a suburban lifestyle; one of the top markets for SUVs, lawn /garden purchases and casual apparel. Technically savvy; active in golf, tennis and swimming. Enterprising Professionals (10%) – Young, highly educated, working professionals. Single or recently married, median age of 32, median household income is $65,000. Lifestyle reflects youth, mobility, and growing consumer clout. Residents go where the jobs are located. Love to travel and exercise; rely heavily on cell phones, PCs and the internet to stay connected. Prosperous Empty Nesters (12%) – Well educated and experienced, residents are enjoying the transition from child rearing to retirement. Median age is 46; median household income is $64,000. This market segment is active physically and financially. Display interest in homes/communities. Cafe Segmentation

4.2 Market Tests

Research from Yelp, FourSquare, and GooglePlaces, indicates the Overland Park market is in need of a new local café. The locals have been clamoring for the current private shops to improve service and/or reduce prices to keep pace with larger chains and franchises, thus providing a unique niche for the right entrant.

While employed by a national restaurant chain, Mr. Jones was constantly directing patrons to offsite coffeehouses for those seeking that final dessert and cup of coffee prior to finishing their evening. This is the reason he ultimately began seeking the location for his coffee house.

4.3 Target Market Segment Strategy

Most adult coffee drinkers said their lifelong habit began during their teenage years. In fact, 54% said they began drinking coffee between 13 and 19. Another 22% reported their coffee cravings started between the ages of 20 and 24. This means that 76% of adult coffee drinkers began drinking coffee by the time they were 24. So, despite the large amount of marketing and advertising directed at the younger age groups, savvy coffee shop owners will not forget to cater some of their offerings to the adult and senior market. (National Coffee Drinking Study).

The Russet Cup will offer a unique experience for coffee aficionado by offering a quiet and cozy yet sophisticated cafe and offer a sense of refinement and peace in an otherwise hectic and fast paced world. While other coffee shops cater to convenience with drive throughs or loud music venues late into the night, the Russet Cup will stand apart from its competitors with its quiet yet soothing ambience, capturing a truly unique (and much needed) market niche.

4.3.1 Market Needs

Coffee shop customers, by nature, are looking for something special — that’s why they are willing to pay so much for a cup of coffee! Many customers of the big national chains, while satisfied with their daily coffee would be intrigued to find a local coffee that is different. (SBA National Information Clearinghouse)

4.3.2 Market Trends

Unique products (specialized roasts, local ingredients, locally themed or named drinks, custom drinks by the‘star’ barista, etc.) Games, puzzles, mind benders and other activities that encourage customers to linger over their coffee Hosting or sponsoring local events (entertainment, readings, book clubs, etc.) Using technology to creatively compete in marketing with the big chains — services like FourSquare, Yelp, and Google Places can increase visibility in the local market. Delivering amazing service from knowledgeable baristas — spend lots of time training staff and utilize online services like the American Coffee & Barista School Selling coffee-related items (and track down any co-marketing opportunities with a local community college or other student-related group in the area)

4.3.3 Market Growth

Despite the economic woes, 37% of total coffee consumed in the United States in 2011 was classified as “Gourmet.” According to the National Coffee Drinking Study This suggests consumers were set on drinking good coffee and visiting their local coffee shop even in the face of an uncertain economy. (First Research)

The sales of coffee dominate sales of hot beverages, making up 83.3% of the total hot beverage market in the U.S. Coffee consumption is expected to increase through 2015 at an average annual rate of 2.7%, while tea consumption is expected to increase through 2015 at an average annual rate of 3.1%. Positive expectations for continued growth in coffee sales, despite its “mature” product position in the market, are due to the innovations in premium coffee products (pods, single-serving instants, etc.) (First Research)

4.4 Positioning

The Russet Mug will position itself as a local coffeehouse or a ‘suburban’ coffeehouse providing a sanctuary for those in the ‘burbs’ without the hassle of having to drive downtown

By charging similar prices as the large chains – the service and quality of the product will commensurate with the price The Russet Cup is genuinely unique place to gather and meet friends, and enjoy coffee Amenities such as free WIFI, chess games, comfy overstuffed chairs, create a relaxing environment The market does not need a café offering fast food breakfasts or another after hours bar The Russet Cup will position itself as the alternative to the chain/franchise/fast food coffee house.

The Russet Cup will provide a quiet and relaxing environment to enjoy gourmet roasted coffee and smoothies and an opportunity to visit with friends, catch up on one’s email, or read a chapter of a book. The Café will fill the great void providing originality in a sea of facsimile, corporate coffee shops. The café’s baristas will be extremely knowledgeable and offer assistance in any coffee purchase while simultaneously providing customers with outstanding service.

5.1 SWOT Analysis

The SWOT analysis examines the café’s strengths and weaknesses that need to be addressed. Further, this section examines the opportunities presented to Café as well as potential threats.

5.1.1 Strengths

Based on its smaller size, the fact that it is not a franchise, the Russet Cup is a unique coffee shop concept unlike any other in the Overland Park market. The owner has firsthand experience, in operating and starting new restaurants, Handpicked baristas will bring professionalism and enthusiasm to the shop.

5.1.2 Weaknesses

Franchises are the easiest way and often the safest conduit to start a café; the café will not have the backing of one of these established entities. The Russet Cup has a minimal budget and is competing against larger and more established coffeehouses for market share.

5.1.3 Opportunities

The Overland Park demographics support the need for a unique coffee shop. Additional opportunities to target the active and recently retired target market and 45 years+ age group. A small slice of a much bigger pie is the goal. Only 40 percent of the nation’s coffee drinkers are consuming premium ground and whole bean coffee. Encouraging coffee drinkers to become coffee connoisseurs is the key to continued growth. The local coffeehouse/café market is $54 million

5.1.4 Threats

The Morning Glory Coffee shop is currently for sale; should another independent purchase this café, it could pose significant threat to market share.

5.2 Strategy Pyramid

In the short-term, a number of promotions and activities are planned around launch of the business to create awareness. The coffee shop will have a contest offering 20 bottomless mugs and will publicize this promotion via radio advertising, as well as countertop displays and posters in the shopping plaza. In addition, during its first year of operations the coffee shop will pass out a limited number of coupons for a free cup of coffee to prospective customers visiting the shopping center.

5.3 Unique Selling Proposition (USP)

The Russet Cup truly stands out from a crowded sea of coffee chains and franchises. What sets them apart from the competition is primarily its smaller cozier size combined with premium coffees served by knowledgeable baristas providing so much energy and enthusiasm for the products they sell.

5.4 Competitive Edge

The Russet Cup’s competitive edge, its size, is also its greatest attribute. Because they are small there is no red tape, and they can easily adjust business hours to say accommodate an afterhours book reading session whereas the corporate chains do not provide such an accommodation. The Russet Cup will truly cater to its patrons needs.

5.5 Marketing Strategy and Positioning

The Russet Cup utilizes a focus strategy on its market. By specifically targeting three primary segments they can cater specifically to their needs.

Senior Market (age 45+) The Russet Cup will target this market simply by its well selected location. Although this demographic group could readily drive downtown, they prefer a local café to unwind and relax and historically become some of the most loyal patrons.

Newly Hired Employees The café will attract regular customers (weekly or more) – particularly the newly employed (first job) by providing free WIFI services and providing interesting games in the customer area.

Young Families The third targeted markets, younger families, often find that coffeehouse are not ‘kid’ friendly. The company has long term plans to create a combination coffee shop / play area so that parents and caregivers will have a place to meet with other adults while the children can enjoy the bounce houses, slides and indoor playground equipment.

5.5.1 Positioning Statement

The Russet Cup is a gourmet coffee lover’s gem. It is truly one of a kind coffee house offering outstanding gourmet coffees and blends, served by enthusiastic and knowledgeable baristas, in a warm, relaxed environment. It is the place to go to visit with friends or cozy up in a quiet corner with a good book either from the library or from one of the patron’s personal E-Books.

5.5.2 Pricing Strategy

The Russet Cup primarily utilizes competition based pricing. The café does not utilize coupons and discounts (other than opening promotion) because they believe that the most valuable customer demographic of daily coffee consumers is not influenced by discount programs or coupons.

5.5.3 Promotion and Advertising Strategy

Online Advertising – The Russet Cup will advertise regularly on popular social media sites, such as Facebook. Compared to traditional print advertising, this is a cost effective tactic that will allow them to reach prospects in a highly targeted way (e.g., based on criteria such as age, gender, geography, etc.). Web Site – the Russet Cup will develop a simple Web site, which will provide basic information about the business, the menu, and links to their presence on the aforementioned social media channels. Radio Advertising – During the first six months of operation, and during the busy holiday shopping season, the business will advertise on local radio stations.

5.5.4 Website

The Russet Cup will have a simple website identifying its menu items of gourmet coffees, smoothies and pastries, along with the address, map and hours of operation. The website will also have a calendar of any upcoming events or sponsorships . The site will also have links to their social media sites – such as Facebook, Twitter, and Pinterest.

5.5.5 Marketing Programs

The café will also rely on signage and draw to its location. Price Chopper brings 10,000 shoppers weekly to its location.

5.6 Sales Strategy

The Russet Cup will use the following methods to increase sales revenue (as recommended by Andrew Hetzel on Better Coffee, Better Business):

The menu will focus on the most profitable products sold. The café will always draw customer attention to the most profitable products. As warranted, the café will raise prices to bolster brand image. Prices communicate a perceived value of a product; so if set too low, the customers might assume that the beverages are inferior compared to the competition. Monitor flavoring inventory – Excess flavoring inventory ties up capital and valuable back room space for storage. The café will utilize 4-6 varieties, including sugar free offerings. Control waste and theft – audit sales and inventory reports to evaluate ingredient waste due to inefficient preparation, returned drinks and employee consumption. Retail locations can easily waste 20% or more of their daily sales these three key categories, which is a substantial and unnecessary loss. Monitor and evaluate hours of operation Run employee sales contests – The baristas are the salespeople and have a great deal of influence over the customer ordering process. All baristas will have some form of sales and customer service training to make each transaction active, rather than passive. Sales contests will emphasize high margin items or cross selling

5.6.1 Sales Forecast

The sales forecast assumes a conservative 5% increase in revenues during Year Two and 10% increase in Year Three. The following chart shows estimated sales over the next three years.

Table 5.6.1 Annual Sales Forecast

Cafe Annual Sales Forecast

5.6.2 Sales Programs

The Russet Cup will run employee sales contests – The baristas are the salespeople and have a great deal of influence over the customer ordering process. All baristas will be required to have sales and customer service training to make each transaction. The sales contests will emphasize high margin items and cross selling.

The Russet Cup is organized as an S-Corporation formed in the state of Kansas.

5.8 Milestones

Listed below are the milestones for the Russet Cup:

Table 5.8 Milestones

Cafe Business Plan Milestones

5.10 Exit Strategy

In the event the store would have to close for business all assets would be sold at auction.

6.1 Organizational Structure

The Russet Cup is formed as an S-Corporation wholly owned by Owen Jones.

6.2 Management Team

The Russet Cup will be owned 100% by Owen Jones. Mr. Jones a graduate of Kansas State University, has an undergraduate degree in business administration. During high school he worked as a waiter in a local hospital coffee shop that purchased its beans from a local roaster. In addition to being an avid coffee drinker himself, this job allowed him to learn about the business first-hand. In college, Jones worked in a campus coffeehouse for four years, eventually rising to the position of assistant manager. Following graduation, Jones secured a business development position for regional restaurant chain, which provided additional first-hand exposure to the food and beverage industry—especially the steps involved in establishing new locations.

6.3 Management Team Gaps

The Russet Cup will rely on its POS (Point of Sale) system to generate daily accounting and cost activity reports. Mr. Jones will supply these to an outside bookkeeper for preparation of annual income taxes.

6.4 Personnel Plan

Initially the café will hire 1 manager, 5 baristas, and 2 part time servers. In Year 2, the café plans to hire 1 additional full time barista.

Table 6.4 Personnel Plan

Cafe Personnel Plan

6.5 Board of Directors

The financial plan will cover the following:

Required Cost of Start-Up Profit and Loss Cash Flow Balance Sheet Financial Ratios

7.1 Important Assumptions

The sales forecast is conservative and assumes a 5% increase in Year 2, and a 10% in Year 3. The analysis accounts for economic seasonality – wherein some months revenues peak (such as holidays ) and wane in slower months. The analysis assumes the owner will take a much smaller salary compared to his baristas; at any time it is assumed that owner’s withdrawal is available at his discretion. Sales are cash basis – nonaccrual accounting Moderate ramp- up in staff over the 3 years forecast The average barista salary in 2012 is $50,000. In general, most cafes have an 85% gross profit margin In general most cafes have a 3% net profit margin

7.2 Start-Up Costs

Following are the needed start-up costs associated with the Russet Cup:

Table 7.2 Start-Up Costs

Cafe Start-Up Costs

7.3 Source and Use of Funds

Table 7.3 Source and Use of Funds

Cafe Source and Use of Funds

7.4 Break-Even Analysis

Table 7.4 Break-Even Analysis

Cafe Break-Even Analysis

7.5 Projections

7.5.1 projected profit and loss.

The estimated profit and loss for the Russet Cup are as follows:

Table 7.5.1 Pro Forma Profit and Loss

Cafe Pro Forma Profit and Loss

7.5.2 Projected Cash Flow

The statement of cash flow shows the incoming and outgoing cash of the business.

Table 7.5.2 Pro Forma Cash Flow

Cafe Pro Forma Cash Flow

7.5.3 Projected Balance Sheet

Table 7.5.3 Pro Forma Balance Sheet

Cafe Pro Forma Balance Sheet

7.6 Business Ratios

The analysis is based on NAICS (North American Industry Classification System) 722213 – Restaurant / Lodging – Snack and Non-Alcoholic Beverage Bars.

Table 7.6 Business Ratios

Cafe Business Ratios

Cafe Business Plan

Coffee ranks second in the most sought commodities worldwide, the first is crude oil, according to a Business Insider report. That doesn’t come as a surprise. We’re all aware that most of us love drinking coffee. For some, coffee is their morning kick-starter and their fuel to start their long, busy day. Others drink several cups of coffee throughout their daily schedule , especially those who have desk jobs. But simply put, people are fond of coffee in general, which could also mean they’re fond of visiting cafes. So if you’ve been considering opening a cafe business lately, now is the time to go for it. It’ll certainly catch the attention of coffee lovers. But first, you need to plan your business right for that to happen. So, here we invite you to have a look at our Cafe Business Plan Examples !

11+ Cafe Business Plan Examples

1. cafe business plan financial template.

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What Is a Cafe Business Plan?

A cafe business plan outlines the profile, products, services, operations, and strategies of a cafe business. It’s simply another form of a business plan that focuses on a cafe business’s overview. You can also call it a coffee shop business plan . This is the document you need to prepare to start making your cafe plan a reality. You should put everything that you’re envisioning for your cafe business on it.

You might be asking why you need a cafe business plan. We have a good explanation for you. Without a business plan, you wouldn’t have a clear vision or goal of establishing your cafe. And you won’t have any form of a solid action plan to achieve your business expectations. Along the way, you’ll face challenges in preparing your business. But you won’t know what to do to overcome them. With a written business plan , you’ll have a clear roadmap of how to arrive from point A to B and so on until you accomplish your business goals. And lastly, the government will look into your cafe business plan proposal before granting you a permit to open your cafe.

What Type of Business Is a Cafe?

Cafes primarily serve coffee to their customers. Therefore, they’re a food and beverage type of business. Historically, cafes were once called as coffeehouses, and they only served coffee. Today, cafes not only serve coffee. They now also serve entree, main course, and dessert dishes, but on a limited menu . Their primary products are still their  coffee menu  and also  tea menu .

How to Write a Cafe Business Plan

Among the first steps in conceptualizing a business is writing a business plan. It’s the first stage in your journey to becoming a cafe business owner. So to help you get started, we’ll give you a few tips in formulating your sample business plan for a cafe.

1. Establish Your Cafe’s Identity

In the first three sections of your business plan, you should establish your cafe’s identity right away. On the title page, you should state your cafe’s official name and display its business logo . On the executive summary , discuss its general overview. And after that, show its business profile.

2. Showcase Your Menu

If you’ve already prepared your cafe menu , showcase it in your business plan. This makes your business plan more appealing and convincing. It implies that you have a clear idea of what you want for your business, even if it’s not final yet. Make sure to provide descriptions of your products, such as their ingredients and possible prices.

3. Outline Your Strategies and Standard Operations

In launching a business, you’ll be doing a feasibility study and a market analysis . Based on their results, you need to come up with your marketing strategies and production plan . Those two should explain how you’re going to promote your cafe and how you’re going to conduct services, respectively.

4. Explain Your Startup Budget Calculation

Probably the most crucial section of a business plan is the budget plan . Financial aspects are never out of the equation in operating a business, especially starting one. So in your business plan, make sure to explain how your budget will cover for every needed expense for your cafe. You should also show an estimate of how it can generate revenue and profit.

What industry does a cafe business belong to?

A cafe business belongs to the food and beverage industry. But because it primarily serves coffee products, it also belongs to a specific section in the food and beverage industry, which is the coffee industry.

What makes cafes popular?

Coffee isn’t the only element that makes cafes popular in every locality. Another element is their overall ambiance. That includes the type of furniture used, the interior design, and the location. The atmosphere that cafes have are simply relaxing. They’re a good place to do work, meet up with friends, read a book, or spend some alone time.

What makes a topnotch cafe business?

The two things that make a topnotch cafe is producing high-quality coffee products and providing excellent customer service. Those two should work hand in hand.

Things could go south immediately if you mismanage your cafe. Plus, many cafes have established trust among customers, and they’re your competitors. With those said, running your cafe won’t be easy. But whoever said owning a business is easy? No one, of course. So start planning your cafe with the help of our business plan examples now! You may also refer to our small restaurant business plan examples .

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