There is no shortage of people serving coffee. Who is your competition? How will you address competition – and how will they handle your entrance into the market?
What kind of coffee shop equipment do you need? Create your list in this section.
In this section, you will first discuss your financing options and highlight your pro forma financial documents, including:
Your coffee shop's sales projection is built on a few essential variables – the ebb and flow of your customer numbers, your products (profit centers), and your pricing.
Once you have determined your average customer purchases and determined your fixed and variable costs, you will choose your projected coffee shop net income.
A balance sheet has two main parts. The first shows the assets of your coffee shop. The second is the liabilities of your company (this will also include your debts). All of the assets always equal liabilities and equity.
Use this is to outline the permits that are needed to open and any subsequent notes.
Detail your calendar and timeline for opening a coffee shop.
Aside from the risk of losing the entire coffee business, what other risks are there? How do you intend to address them?
Every coffee shop business needs an exit strategy. Detail it here in this section.
As you plan your coffee shop business, seasons may pass – you will need to continue to monitor and develop an ongoing market analysis.
Where do you start.
So, where and how do you start writing your plan?
First, you don't have to tackle each section in order. For example, the executive summary, which always comes first in a business plan, is often written last.
I would start writing your coffee shop business plan with the business description and concept. Second, I would develop an understanding of your target market and build your coffee shop menu around them. Third, I would write about the coffee equipment that I would need and the costs. Fourth, I would develop your coffee branding section. And then, I would start working on my coffee shop budget and cost breakdown.
This is my personal preference in writing business plans for coffee shops. However, you may have different methods. Whichever way works best for you and allows you to thoroughly plan and understand your coffee business is the one you should use.
Once you've settled on these business plan subjects, you can develop and write the rest of your business plan. Everything from your coffee shop branding, management, and barista training .
Writing a business plan can be challenging. Understanding each section and what should be discussed can seem daunting.
That's why we created an easy-to-use coffee shop business plan template for you. This free template details every business plan section and describes what should be in every section.
Our coffee shop business plan template (MS Word Format) is guaranteed to save you hours in research and conveniently allows you to fill in each section.
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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.
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.
Finally, we’ll end with an example business plan to show you what it looks like in action.
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.
Executive summary | Provide a high-level overview of the entire business plan, highlighting the purpose, unique value proposition and key elements of the cafe business. |
How will your cafe business succeed? | Address the unique selling points of the cafe, location strategy, menu offerings, marketing strategy, and operational efficiency to ensure success and competitiveness. |
Study your competition | Conduct a competitive analysis to understand the landscape of similar food and beverage businesses, identifying strategies to differentiate and succeed in the market. |
Analyze your target market | Analyze the target market segments, market size, and marketing plan to attract and retain customers effectively. |
Tell us what you’ll sell and how you’ll sell it | Detail the menu offerings, pricing strategy, and creative approaches to maximize customer satisfaction and profitability. |
Create a marketing plan | Develop a comprehensive marketing strategy, including digital and traditional channels, to build brand awareness, drive customer engagement, and foster loyalty. |
Ownership structure | Outline the ownership structure of the cafe business, highlighting the experience, roles, responsibilities, and governance structure of the owners/partners. |
Your operations plan | Define the operational workflows, staffing requirements, inventory management, and quality control measures to ensure efficient and effective day-to-day operations. |
Financial planning | Present the financial projections, including startup costs, income statement, cash flow analysis, balance sheet, and break-even analysis, to assess viability and sustainability. |
Planning for growth | Discuss potential avenues for expansion and scalability, including additional locations, diversified revenue streams, and strategic partnerships for future growth. |
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:
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:
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:
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.
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 .
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.
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.
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.
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.
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.
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.
We’ve created a business plan for a hypothetical cafe called Sip & Savor Café. Keep in mind that it’s shorter than is typical.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Profitability varies, but successful cafes can generate healthy profits with the right management, location, and business model.
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.
Cafes can be successful if managed effectively, offering quality products, good customer service, and a welcoming atmosphere.
Include sections on your concept, target market, location analysis, marketing strategy, financial projections, and management plan.
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.
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.
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.
Cafes can be a good investment if carefully planned and managed, offering opportunities for profitability and growth in the food and beverage industry.
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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If you’re looking for the definitive guide to opening a coffee shop in 2020, this is it.
Our business is built entirely on the foundation of “Helping People Succeed in Specialty Coffee”. In short, this is what we do. We help people open coffee shops, and help people who own coffee shops run them to be more efficient and profitable. This is our niche.
If you’re in the beginning phases of opening a coffee shop, or already own one and are looking for ways to improve it – you are our target audience. We exist solely to help YOU.
It’s what our company has been doing for over 30 years, and what we have done for thousands of coffee shops worldwide in that time span.
We’re based out of Portland, Oregon. One of the most competitive coffee markets in the world. Within this market, we run two successful coffee shops and one of the top selling roasteries in the Pacific Northwest. In short, we walk the walk and talk the talk.
Being cafe and roastery owners ourselves helps us to remain in touch with the needs of our customers, and gives us the understanding of what we need to do in order to serve them best.
This guide is designed to help anybody looking for help with the question, “how to open a coffee shop and how to do it the right way, the first time.”
Before you spend another dollar on your business, we strongly encourage you to read this guide, take notes, and get back to us with anything you need clarified. We’re here to help.
One of the most common questions we get is: “Do I need a business plan?”
The answer is usually… it depends.
Usually when someone asks this question, they’re talking about a fully fleshed out financially-deep, written business plan – the type that you’d take to a bank during the startup phase while securing investors or a loan. While that’s useful if you’re trying to secure a large loan from an investor (and wise to consider finances in the long-term), the type of business plan we believe to be most beneficial in the early stages of opening a coffee shop? It’s more of a general gameplan and guideline that helps you understand how you position yourself in a competitive market, what makes you stand out, the brand identity you need your employees to embody, and so on.
All businesses start with an idea. Maybe your idea is entirely unique; you’ve never seen anything like it anywhere. Maybe your idea isn’t entirely unique, but it IS unique to your area. Whether you want to open a large cafe or a coffee cart , you need a game plan.
Your business idea and plans can run the gamut, but without a plan, it will likely always be just that. An idea. A perfected business plan brings life to your ideas, and forces you to consider everything you need to consider in order to both show others how seriously you’re taking your dreams, but also to provide a roadmap to follow throughout the life of your business. A business plan shows that you’re serious about what you want to do, you’ve done your homework, and gives structure to an otherwise intangible idea. It’s the road map that gets you from A to Z.
But where do you get started? Some people may have gone to business school to prepare for this moment, but a great majority of our customers haven’t.
That’s where our business plan comes in. More than anything else, it is to keep you and anyone you work with organized and focused on your goals, understanding their role in the grand scheme of things. When starting a business, the best advice for starting out is that you always want to fill a niche. You need to fully understand the needs of your future customers. Are you positioned in a bustling downtown area full of people coming and going to work? Maybe you don’t need a large space with a lot of seating. But if you’re near a college, for example, you WILL need lots of tables, couches, and chairs (and outlets for people to charge their laptops at!). Keeping your business plan flexible allows you to address the unique needs of whatever location you decide to go for. Your location and ideal customer can’t be ignored even in the early planning phase.
If you’re looking to be one of the first coffee shops in your area and without much competition, you might be able to get away without a structured plan. But if you’re looking to open a coffee shop in a competitive market – you will need to have a truly original idea, and to understand your audience as best as humanly possible. THAT is how you’ll get customers coming through your doors, day in and day out. A good business plan helps guide you towards success by forcing you to think about important details that may not be obvious at first.
One tip – you may find your concept changing as you work through your business plan – that’s normal! You may even find out your idea just doesn’t make sense on paper. You can theoretically spend lots of time and effort on something only to find that your idea isn’t working out half way through – it can be demoralizing, but working through a business plan makes sure you’re not investing thousands of dollars in an idea that’s doomed from the start. At the end of the day, it’s better to lose a little bit of time and effort than potentially delve into a big, expensive business endeavor that never had much of a chance to begin with. Working through these things sets you up for success when you finally do have that winning idea and location.
The bonus of a business plan is you can use it to secure investors, create interest, and convince your family and friends that your idea isn’t just a pipe dream. It also functions as your basis for training and getting your employees as passionate about your shop as you are. Having a business plan conveys you’re serious about what you’re trying to do.
Building a good business plan requires a lot of time and effort. In the early days of Bellissimo, one of our most popular services was creating business plans for coffee shops, much like ours. Over time, we began to realize there were a lot of consistencies showing up from coffee shop to coffee shop. Shop owners would routinely ask the same questions, or want the same things in theirs. We would charge multiple thousands of dollars for these business plans, and our business plans eventually grew to be such a unique item, we decided to pivot our strategy into the concept of “let’s templatize this business plan, make it more affordable, and make it available to a wider audience.”
In doing this, we were able to utilize the internet in a way that we couldn’t before, and get our tried and true, battle tested coffee shop business plan in the hands of soon-to-be coffee shop entrepreneurs around the globe. By lowering the price to a meager $695 (rather than the thousands we used to charge for one-on-one plan writing), we have been able to expand our reach, and streamline the process for thousands on their way to coffee shop success.
If your coffee shop does not currently possess a streamlined, developed business plan, we encourage you to check ours out.
Finding the right location is possibly the most important thing a potential coffee shop owner can do. Without the right location, everything else you do is potentially wasted effort. After all, what good is excellent coffee, customer service, and an affordable lease if there are no people around to sell your beverages to?
Traffic. Traffic and accessibility are your essential needs. Depending on the community that you serve, it can be vehicle traffic (namely if you’re opening a drive thru or have ample parking, but foot traffic is ideal). Through marketing and promotions, you may occasionally attract customers outside their immediate living and working areas, but you will almost never get regulars. That’s why you need to be near as many people as possible. Large office buildings, hospitals, and tourist areas are the most ideal centers to concentrate on. Apartment buildings are not bad either, but generally won’t lead to quite as much business. They sound great in theory, but remember that a majority of people brew their coffee at home, only going out occasionally. It’s unwise to limit your audience to only the people who live in a specific building and bank on them to come down every day.
Any location is a balancing act between cost and benefit. The best locations are usually much more expensive, and most coffee shops just have to justify extremely high rent costs. The exception to this is smaller spaces that may be more affordable. They also allow for more customer turnover, and can be a great option for coffee businesses. Namely if your clientele do not need lots of space to sit. Many coffee shops can be hugely successful in a small space due to low overhead and a constant flow of customers.
The last thing that can make or break a location is renovations. It’s tempting to look for a place that was already a restaurant or coffee shop, but that’s not always the best idea because a business already failed there once. At the very least, it’s important to figure out why that business failed and what you can do differently. When looking at locations that aren’t properly vented and plumbed, make sure to factor in that cost (or talk to the landlord about doing it) because it can quickly turn into a massive investment.
Both cafes and coffee carts want similar things out of a location. Foot traffic is essential, as well as visibility. However, because coffee carts are smaller and have less overhead, they are more flexible with where they can be placed. Mobile coffee carts also have he benefit of changing locations depending on where the best market is. Cafes are a bigger investment with a potentially bigger profit, but they have to be positioned well. Coffee carts are a little more forgiving when it comes to initial investment and location, so they are a popular entry point into the industry.
Finding your ideal location is one thing, but actually getting it is a whole new challenge. The most important thing to remember is: negotiate! Be able to talk about your business what the benefits of it clearly. Data (even data that isn’t perfect) can help drive your point home. By opening a coffee shop in a space you’re inherently bringing value to whomever owns it, not the other way around. Leverage that idea when negotiating for price and buildout. Don’t forget that things like plumbing and counters are the landlord’s property, so your landlord may contribute to those expenses. Remember, a coffee shop almost ALWAYS brings up the value of a neighborhood and adds significant foot traffic to any shopping center. They are seen as valuable community meeting spaces, and homes within walking distance of a coffee shop are more desirable. The very nature of you bringing your business to a neighborhood should be seen as a huge plus to any landlord. However, don’t assume that every landlord will automatically understand the value your business can bring, so it’s up to you to help them understand what they stand to gain by leasing to your business and helping you with your buildout.
Barista skills.
Plenty of people with varied backgrounds or entrepreneurial spirits want to open a coffee shop even if they’ve never worked in one, and that’s fine! Strictly speaking, you don’t need to have been a barista to open a coffee shop, but it really helps. A part time barista job while you work on your coffee bar can at least get you started with the knowledge you’ll need. Not being able to jump behind the bar or train employees yourself can be a huge disadvantage when opening a new coffee business. You’re guaranteeing the need for a partner or a skilled manager, and then relying on their schedule for any other employees. You also won’t be as informed when it comes to the products you offer because you won’t have the firsthand knowledge of creating them and seeing how customers react.
Certainly, you could work as a barista for a period of time; many people do. Working as a barista is a great method to see if a coffee shop environment is right for you. You learn the skills, get practice working with a team, and when it comes time to hire employees you have a better idea of what to look for, but if you want those skills without having to work for a few years, we have a solution for you .
By investing in your barista education and training, you naturally improve your ability to train your future employees. Remember, even your best baristas will likely not work for you forever. It is up to YOU to be able to train future employees to be able to provide consistently great products that keep your customers returning happily over and over again.
Maybe you’re in the opposite position: you’ve been a barista and want to open up your own shop. Barista skills are vital, but a coffee shop needs a lot more than that to run well. Here are some of the business skills you’ll need to be confident in:
We talked about the importance of lease negotiation before, but that’s not the end of it. Opening a coffee shop is expensive, and paying sticker price for everything is often just not feasible. Negotiation doesn’t have to be hard and you don’t have to be pushy. These strategies are sometimes effective, but they sometimes aren’t.
The most tried and true method of negotiation is being able to assess and communicate value.
It might be your business’s value to someone else (like a landlord), or it might be a machine’s value to your business. In business, everyone is looking to get as much as they can, but everyone understands this. That’s why this value language is universal. Communicating benefits when talking about your own value and communicating challenges when buying are should help to get negotiations started off correctly.
In day one of our five day workshops on how to start a coffee business, we spend a good amount of time teaching negotiation tactics and techniques for ways to convince landlords that your business is worth investing their time and resources in. With just a few simple techniques and concepts worth understanding, we have seen our students negotiate up to 3 years of free rent in a new building for their cafes, or negotiated with landlords to do their entire buildout (saving them tens of thousands of dollars in renovations). The return on investment from one of our workshops often can pay off ten fold.
Network early and network often.
You never know who might become a valued partner or a customer. It’s no secret that a lot of people drink coffee. It’s also obvious that to many consumers who don’t have developed palettes, there are plenty of options for “good” coffee. It’s easy to pick out bitter, sour coffee, but identifying the subtle nuances of coffee beyond it just tasting better is beyond many people, so having a coffee shop that stands out for other reasons helps bring in customers. One way to stand out and start networking is by being present on the floor and in your community. Humans are communal creatures; we like seeing other humans. If we associate a face with a business instead of just a brand, we are far more likely to want to return to that business.
Additionally, word of mouth is one of the most powerful means of getting new customers. By grabbing the attention of one person, you might also grab the attention of their friends and family. This goes a long way towards building up your shop as a real member of a community. Once you’ve attained that status, you know your networking is succeeding.
And never underestimate the power of reviews. They say that a negative review reaches five times the amount of people than a positive one. By being present in your business, you can drastically improve the amount of control you have in ensuring your customers have a positive experience (and your employees can learn from your example of how they should best interact with customers, a double win!)
Nearly every coffee business is going to need an employee at some point, so this is a skill you’ll need. The most important advice we can give when it comes to hiring is to focus on personality and attitude instead of skills. Ask interview questions like:
Bar skills can always be taught, but finding someone willing to go the extra mile with customers and for your business is nearly impossible to teach. Like we say above, good coffee is subjective to most customers, but good service is something they’ll remember. With every customer, you’re looking to make your coffee shop their coffee shop, and not everyone can do that. Of course, finding the right employees is only the first step.
Unless your pockets are very deep, you likely will not be able to afford hiring a qualified manager in the beginning phases of your cafe. It is imperative that you possess management skills, or can learn. Good management is not as simple as “being the boss”. As a manager, respecting and valuing your employees is first and foremost. Just making demands is the fastest road to unhappy and underperforming employees.
We all like to feel like we’re part of something, so give your employees opportunities to take part in your business. Encourage them to invent drinks, take pictures for social media, and anything else you can think of for them to take part in and feel valued. Most baristas are multi talented so find out what hobbies your employees have. An artist might be able to contribute to a unique menu while a photographer might be able to take pictures for your website. It’s important to remember that even your best employees will likely not be with your company many years down the road. (of course, if they are, then by all means you’ve struck gold. Be sure to reward them) – in general, however, being a barista is typically a pit stop in a persons journey through life and few make it a long term career. Remember that, and appreciate the humanity behind your employees. Let them flourish in ways that show that you respect them, and they’ll reward you by doing a great job of what you expect out of them. Just be sure you make it clear what it is you need from them .
An unavoidable part of managing is conflict. Sometimes it’s employees in conflict with each other, sometimes it’s a conflict between you and an employee. Good management means not letting it get personal and keeping things focused on how to improve performance as an individual and in a team.
Remember, YOUR performance might be what needs improving. Always try your best to stay objective and understand the needs of the business, see what other people see, listen to the feedback you receive even when it might be uncomfortable. Listen to what your employees have to say, or what they might seem unhappy about. Hold monthly meetings and encourage your staff to bring up anything they feel particularly excited or worried about.
Assuming they want to do a good job (most people do), there is probably a reason for certain tasks not getting done right or at all. Listen and brainstorm ways to make processes easier or more streamlined. Help your employees feel heard and use their insight to improve your business.
Treat meetings as a constructive experience, and not a place to allow for complaints. Create a process where everyone can feel like their complaints will be heard and addressed in a constructive way – but meetings are NOT that place. Lots of things can affect people’s performance, and you never know what someone will be going through on a given day. If it’s not personal, it might be something trivial that you can address quickly and easily. Be sure you’re present, and your employees know that you have an open door policy to hear what they have to say.
This doesn’t mean personal things can’t affect performance. Family or health issues are unfortunately common and often affect work performance. A sympathetic manager who makes an effort to understand those situations can mean a lot to an employee and talking through what’s happening can be all that’s needed to get things back on track.
Having an accountant in your corner can be a big help, but they can’t do everything for you. You also might not be able to fit an accountant into your own budget. What then?
Budgeting skills are vital in coffee where transactional profit is often low and inventory can make or break a business. Smart budgeting involves balancing past data with future assumptions to only spend as much money as you need. Budgets are seldom perfect, but being able to create one and develop it through observation is essential.
A big thing that many coffee shop owners will forgo is keeping track of their cost of goods. It is easy to get in the habit of placing your orders and not looking at the invoices, but as your distributors raise their prices, you should too. If the cost of milk goes up, the cost of your lattes may need to go up as well. Otherwise, you’ll start to notice that your profits are quickly disappearing and you may not realize it until your profit is in jeopardy.
We’ll cover marketing more in depth below, but it is an essential and unavoidable part of a successful business. Effective marketing starts with outreach, but also includes many more layers to actually bring paying customers in. A new drink, sales, etc. are all ineffective if not marketed well.
“How am I supposed to learn all these things if I’m already working?” You could go to business school, but that path doesn’t make sense or is nearly impossible for many people who want to open a coffee shop. If you want to cut right to the important stuff while spending a fraction of what you’d spend on business school, our 5-day bundle is perfect for you .
Find good partners.
You’ll certainly need a good general contractor experienced in cafe/restaurant spaces (more on that later) but what about other partners?
Step one is recognizing your weaknesses. As a business owner, you will have to be good at a lot of things, but no one can be good at everything. There are certain gaps that just can’t be ignored, and it might be wise to hire someone to help you in those areas. Here are four of the most common professionals you might want to look for:
Money is at the core of any business, so making sure everything is accounted for and accurate is essential. A good accountant/bookkeeper can alleviate a lot of the stress that comes with money and provide some recommendations based on experience. Coffee shop budgets can become complicated quickly, so hiring an accountant to help, even for a short time, is essential.
You likely won’t need to put a lawyer on retainer, but developing and good working relationship with a business attorney is a worthwhile investment. There are certain things that you will just need a lawyer to look over.
Hiring an HR Professional is not as common as talking to a lawyer, but it should be. HR brings another perspective to your efforts that’s not just about what’s legal (though they can help with that too). By talking to an HR professional, you’re making sure all your employee policies are correct and lawful, and you can feel confident hiring and working correctly with your staff.
Getting a good marketing plan early can be a game changer for new businesses. Asking someone with expertise to help you form a long term plan, make contacts, and execute strategies will pay off hugely in the long run. You may want to hire a marketer for a short time to get you started off and again down the line to scale your business up.
Most coffee shops will need at least one employee even before they open, so we can not emphasize enough how significant it is to get this done early and correctly. Getting a thorough, clear employee handbook early on helps set expectations and procedures for anyone you work with. A good employee handbook must have the following:
Each of these sections needs to be carefully thought out and written. Once you have a completed handbook, you should also have it reviewed by an HR expert and a lawyer; your handbook can’t just be an afterthought. This document lays out everything you expect of employees and what employees can expect of you. It makes sure everyone is held accountable for what they agree to do. From a legal perspective, you need an employee handbook before one person works one hour for you. Ask any new employee to take time to read the handbook and initial every page. This simple process both makes sure everyone is on the same page as well as saves you from potentially spending thousands of dollars in legal fees. No business owner can afford to get their employee handbook wrong. However, getting this all right takes quite a bit of time and effort. To help new business owners focus on their business, we offer an employee handbook template that comes pre reviewed by legal and HR professionals and is designed to have you ready to go quickly.
Most prospective business owners know they need an employee handbook, but fewer know about the importance of an operations manual.
Simply put: The employee handbook defines relationships and expectations, but the operations manual tells your employees how to actually do their jobs.
An operations manual is a supplement to on the job training and acts as a reference for employees. It limits your liability by making sure employees know how to consistently make drinks, maintain machinery, and interact with customers. It also provides you and your managers tools to make sure every employee is trained up the same way and to the same standards. No one can blame a barista for not following proper procedure if it was never taught, especially when it comes to complicated equipment maintenance.
You should treat your operations manual as the textbook of your business. It might not be the most exciting or glamorous, but it is vital to making sure your employees feel equipped to do their jobs and consistently give great experiences to customers. An operations manual and an employee handbook work together to communicate policy and make sure your business objectives are clear. Like the handbook, any new hire should sign and date a copy of your operations manual to make sure it is understood.
Want to save even more time? We also offer an operations manual template that has everything your business needs.
How much does it cost to open a coffee shop.
Budgets for new coffee shops can vary especially depending on the equipment you want. To get an idea for what opening a coffee shop costs, here are some general figures:
Type of Coffee Business | Startup Cost Range |
---|---|
Full Cafe/Coffee Bar | $150-$300k+ |
Coffee Drive-through | $75-250k+ |
Coffee Cart/Mobile Operation | $20-$75k+ |
One of the biggest expenses in a coffee shop is your initial equipment. Here are some estimates for the big things that you’ll see in most shops.
Equipment | Typical Cost |
---|---|
Espresso Machine | $9000 |
Grinder | $2800 |
Coffee Brewer | $2200 |
Pastry Case | $4800 |
Undercounter Refrigerator | $1800 |
Upright Refrigerator | $2500 |
3-Compartment Sink | $1100 |
Dishwasher | $3600 |
It’s not cheap, but being budget conscious can keep things from getting out of control. Buying used equipment is always an option, but try to find out how well the equipment was maintained. Poorly maintained equipment can end up costing more than brand new, and in the long run it can mean terrible value.
Whenever opening any business, doing it with as little debt as possible is ideal. That means your first funding strategy should always be saving your own money. Being frugal can be hard, but it’s a good test to make sure you really want to open a coffee shop. Even after saving money though, chances are you’ll need funding of some kind. Here are some of the safest ways to get startup capital:
A lot of businesses start off with a Small Business Association Loan. sba.gov makes connecting with lenders about as easy as it can be. These loans are still very much loans, with all the trappings and potential challenges, but they are usually more tailored to fit businesses like small coffee shops and might have more generous repayment terms. Still, we recommend taking the smallest loan you possibly can.
Angel Investors are becoming a more popular means of finding funding. They are investors who have specifically stated their interest in small business who might have a hard time finding other loans, hence the term angel. However, there are far fewer angel investors looking to invest in hospitality businesses, so this method can still be challenging for coffee shops. Usually, you’ll need some kind of unique hook beyond just good coffee, like extreme environmental sustainability or a focus on charity work.
Cities are often looking for certain kinds of businesses to open. Driving tourism and spending is always a value proposition, and sustainability is becoming increasingly important. Investigate your local government’s website for grants to see what you’d have to do for them. Applying for grants is often a somewhat time consuming process, but it can pay off greatly and put you on the map for your city.
Fundraising has one major pro and major con. The con is fundraising usually does yield that much money, but the pro is that money doesn’t require you to repay it. Fundraising is always more effective if you are already well known in a community and fundraise through a community event. Putting on a party further cuts into your bottom line, but just asking for money cold will not net you anything.
Sites like Kickstarter and Indiegogo have popularized crowd funding, and a few coffee shops have had success using those platforms. We caution against it because of how difficult it is to deliver rewards while you’re opening. Managing a campaign is also incredibly time consuming during a period where your time is very precious. This is a recipe for upset backers and a bad reputation. A much better use of crowdfunding is for a specific event or addition once you are already open and have an established brand.
Coffee shop design is a topic unto itself , but we’ll give you the two most important design considerations right here: flow and upselling.
All products have a certain psychology to them, and coffee is no different. Don’t just think about who your ideal customer is, but also their state of mind. A lot of people getting coffee are tired or grumpy, sometimes both. That’s why it’s very important to your customer experience to make your shop easy to navigate, your menu understandable, and you offerings clear. Internal signage helps, but flow really starts with design. The path from walking through the door to coffee in hand should be immediately obvious and easy to navigate. A good contractor with cafe experience goes a long way towards helping you develop a good flow.
Coffee is a high margin but low cost product. We’re being honest here, just selling coffee is often not financially wise. Most cafes need to raise the average “ticket price” of their customers to stay viable. You don’t need every customer to buy food, beans, or merchandise, but you need a number of them to. That’s why most coffee shops place their pastry/food case near the ordering station to make adding on food easy. Positioning other addon items like beans along the path to ordering is essential. As people walk in they are visually prompted by your additional offerings.
Waiting until every minute detail is perfect will probably mean you’ll never get open. Things will be a little rough around the edges, but the sooner you can start getting customers through the door, the better. We recommend opening in 2-3 stages, starting with a soft open and ending with a grand opening.
Your opening party might be your soft open, or you may want to separate them out. At your opening party, you should invite friends and anyone who helped with your business at any stage as well as potential business partners and promoters. Expect to give out a lot of coffee to thank these people and get them talking about your shop. The opening party is also a great place to see how your bar flow is working with a more forgiving audience. Some things will likely need to be reworked, and that’s normal.
A soft opening usually coincides with your opening party or comes shortly after when the wrinkles have been ironed out. This is the time to do a little marketing and a little promotion, to let business slowly start to build. There are still likely to be new issues and challenges to work out and this slower drip of customers helps really get your systems solidified.
About two weeks after your soft opening, you will want to hold a grand opening. This is your big party with as much marketing and promotion as your can muster. Make sure everyone is ready to go and provide the best possible service.
After a grand opening, it’s normal to dip back down in customer count quite a bit. People are reluctant to change their routine. This dip is where your hard work on customer service and superior product will come in handy and the real marketing begins.
Training new employees is a never ending responsibility that business owners can’t skimp on. By training employees well, you make sure they feel confident and ready to provide the experience you want customers to have.
When first training employees, it can be beneficial to run through exercises that emphasize efficiency. For example, give a new barista 4-5 drink orders and task them with making the drinks as quickly as possible without rushing. Allow new baristas extra time to think it over, and talk through the process with them. Come up with a few of these exercises (even better if you come up with them based on real life scenarios specific to you shop) and work through them. Be encouraging when the barista gets things right and gently correct by explaining the reasoning behind doing things a certain way. The more your baristas understand the “why” of things, the more you can trust them to make good decisions independently.
You can follow up with training by holding friendly contests among your staff or barista throwdowns with other cafes in the area. Baristas can compete on things like latte art, drink efficiency, and whatever else you might want. These should be fun above all else, and latte art throwdowns can be great publicity events.
Attempt to make training fun, but if your coffee shop takes off, you or your manager might not have time to train. As a business owner you stretch yourself incredibly thin, so we offer a way to pick up the slack. Online Barista Training is a learning platform accessible from any computer that cuts your training time down by up to 80%. We supply informative videos, instructions, and quizzes to educate baristas on all the fundamentals, so they can hit the ground running on the bar. Normal training might take 10 hours on the floor, with Online Barista Training it can take 2.
The most straightforward way to grow is having a menu with popular staples and rotating specials. When creating specials, consider seasonal flavors and unique combinations. In the age of social media, the visual appeal of a drink also can’t be understated. A drink that looks fun and iconic and tastes good is a better marketing tool than a drink that tastes amazing and looks normal. Of course, an amazing looking and tasting drink is ideal, but if you have to make a sacrifice, don’t take visual appeal for granted.
Your menu should also take into consideration what your customers want and where you’re located. If you have a lot of parents with kids, consider offering some kid friendly options. If you have a lot of busy business people, consider offering subscription services or refills in your branded mug to make their daily coffee trip as easy as possible for them.
Marketing is a crucial part of owning a coffee shop that many business owners (understandably) don’t always devote enough time to. There are hundreds of ways to market your shop, but some are more useful than others.
Don’t try to get by without a website . A few businesses manage to do it, but they are the exception. You want a site that is above all easy to navigate. 90% of your visitors are there to see your menu, you address, your hours, or your contact information, so make those things easy to find. If you want to add more info about your story, staff, or anything else, do it! Having several pages on your site is generally a good idea, but you just need to make sure your most important info is easily accessible.
Everyone wants a good social media presence, but how important is it to your specific business?
Do you have a lot of customers in their teens to mid 20s? An aesthetically pleasing instagram feed and a snapchat geotag are probably worthwhile investments.
Are your customers just a little older? Don’t neglect Instagram, but it doesn’t need to be as big of a focus. Instead, encourage customers to leave Google reviews and consider investing in some targeted paid advertising.
Are your customers middle aged and older? Maintaining your Facebook page becomes a little more important, and good service is a huge focus.
It’s important to try out different social media platforms and methods to see what sticks. A lot of baristas are younger and probably more invested and up to date with current social media, so ask for their opinions. If you have a barista who is particularly skilled at social media, let them take the reigns for a while. It’s a great experience and frees up your time a little.
Are newspaper, radio, or TV ads worth it?
Maybe, it depends on your market. Newspaper ads are great for smaller, hyper local communities. Radio ads can be surprisingly effective among older demographics in a slightly wider range. The only avenue we seldom recommend is TV ads because of their expense. The other challenge with traditional advertising is that it can be difficult to track exactly how useful they are while digital ads can tell you exactly what your budget is returning.
Whatever marketing you do, consider asking customers what brought them in and regulars why they like coming back. Their answers are the best way to actually figure out what works. As you find your niche, reinvest even more into marketing.
Opening another location sounds like it would be easier than opening your first location, but really it is just as complicated if not moreso. Unless your brand is incredibly strong, there’s no guarantee of success in one area leading to success in another. A bad expansion move can sink not just the new location, but the original location as well.
When looking to expand, it is vitally important to take the same steps as opening your first coffee shop. Finding a good location, doing market research, developing your menu, etc. are all steps that can’t be taken for granted. Also, consider that your time will now be split between two places. A good manager at each who can run things when you’re not there is paramount.
Coffee roasting is a topic many coffee shop owners consider at one point or another. Roasting simultaneously has a lot of competition, yet a lot of room for growth. Much like the beer industry, more and more micro roasters are becoming popular, and home roasting has been on a steady incline. With that mind, we recommend business owners start small if at all. Roasting is an entirely different business model than running a coffee bar and can be a huge financial drain if not done carefully. We recommend waiting until at least your second year in business to consider expanding to roasting.
If you do decide to move into roasting, it can be a very rewarding field. The roast can affect so much about the coffee experience, and from a business perspective it can be a great way to diversify. A lot of coffee shops aren’t interested in moving into roasting, and that’s completely understandable. Roasting is only one way to grow your business, not the only way. That being said, Bellissimo’s roastery has been HIGHLY successful in getting our beans in the homes of people within the Pacific Northwest. Water Avenue coffee is the 2nd highest grossing roastery in the Portland area and we’re not slowing down – there’s good money to be made in roasting! (not to mention, you get to work directly with coffee farmers all over the globe).
We see more and more people interested in roasting, so we offer a 1-day Intensive Roasting workshop where we teach you all about the roasting process and provide a good base for you to start exploring on your own or communicate with your local roaster more effectively. Whether for home or commercial roasting, learn all about the equipment and process behind coffee. (fun fact – most people are surprised to find out that light roast coffee has MORE caffeine in it than dark roast because it’s spent less time in the roaster, and thus, has had less of the caffeine cooked out of it!)
The coffee industry is a fascinating and rewarding place. Coffee professionals get to meet all kinds of people, and building your own space is a totally unique feeling. We hope this article is a great starting point for taking your first steps into this amazing industry. If you have any more questions, we have a variety of resources, workshops, and expertise to help you through any stage of owning your own business. Once again, we’re here to help.
You can email us direct as well at [email protected]
It has come to our attention that scammers are using trade names to defraud individuals who have not otherwise interacted with the companies they purport to represent.
The scam involves processing fraudulent transactions (typically less than a few dollars) on a consumer’s credit card in the name of a business which has no prior or continuing relationship to the scammer or the victim.
Because these businesses (as is the case with ours) have had no interaction with the bad actors OR the individuals being targeted, there is no means for intervention. Like all of the businesses being impersonated, we have no record of these fraudulent transactions. To ensure maximum consumer safety, we have completed an internal systems audit and are certain that we have not experienced a security event. In addition, we have investigated each of the cases reported to us, individually, and in each case we found no record of interactions of any kind with those impacted, nor do we have awareness of or connection to the identity of the scammers responsible.
If you believe you are the victim of a financial crime, please contact your banking institution and law enforcement as soon as possible. We have learned that this scam is growing in popularity and is likely to impact thousands of businesses and individuals.
Please be careful!
Written by Dave Lavinsky
Business Plan Outline
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.
Below are links to a sample of each of the key elements of a coffee shop business plan example:
Next Section: Executive Summary >
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 .
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.
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.
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.
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.
Learn more about how to start a successful coffee shop business:
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.
Have you always dreamed of opening a coffee shop? Then you’ve come to the right place.
Starting a coffee shop business plan is the first step to success. If you’re planning on raising startup capital by pitching to investors , make sure your coffee shop business plan is ready because they will definitely ask to see it.
If you’ve never seen a coffee shop business plan before, here’s a sample you can use (along with the template below) to get you started. It covers all the basic elements of a proper business plan, including an executive summary, overview and description of a coffee shop business, marketplace information, marketing initiatives, business operations, and financial plans.
In this article, we provide a step-by-step approach on how to write a successful coffee shop business plan. We outline each section needed in a good plan, explain that section’s purpose, and provide an example you can use as a starting point.
Before you start actually writing your coffee shop business plan, there are a few things you want to nail down first that will save you time and make communicating your vision a lot easier.
Make sure you can answer each of the following questions:
A business plan can be anywhere from a few sheets to hundreds of pages long, depending on the size of your proposed business.
For a relatively small business like a coffee shop it’s best to keep the plan as brief and succinct as possible. We recommend 30 pages or less – especially if you intend to submit it to financial lenders for debt or equity financing. They will be looking for solid research, analysis, and strategy written in a concise form.
Take into consideration the audience of your coffee shop business plan. Will you be approaching financial lenders or investors? Or is your plan specifically for you and your management team? Just like creating a marketing plan , you need to adjust your writing style and messaging to match the audience’s interest. Certain sections might need more emphasis over others depending on your primary audience.
If you aren’t ready to choose an exact location for your coffee shop , you should at least know which neighbourhood you’re targeting. The location you choose will determine important elements of your coffee shop business plan, such as your competitive analysis and venue type.
It’s important that you have a clear idea or concept of the type of coffee shop you want to open . What you need to cover in your coffee shop business plan will depend on whether you’re opening a small intimate cafe, gourmet food stand, or craft microbrewery. These can all be considered coffee shops. Sometimes it’s helpful to create Pinterest boards to help you fully visualize your concept.
Do you have any ideas of what your short- and long-term business goals are for your coffee shop? Are you going to start with one location and then expand a year after launching? Do you want to start off smaller with a food stand and then, once you have enough sales, open a sister coffee shop in a different neighbourhood? Be as specific as you can when communicating your vision and the goals you’re aiming to achieve.
Have you ever worked in the coffee shop industry? Do you have any certifications? Consider the skills and experience you have that would give your audience confidence that you’re the right person for the business.
If you’re confident you have the skills and experience, then it should show in the coffee shop business plan. But if you’ve never spent any time working in the foodservice industry, you may want to get some hands-on experience so that, at the very least, you know what you’re getting yourself into.
So now you’re ready to start writing your coffee shop business plan. To make the writing process easier for you, here are five useful tips:
1. table of contents.
Even for a small coffee shop, your business plan is going to be a long document. A table of contents makes it easier for someone to find specific sections as they read through your plan.
While the executive summary should appear at the beginning of your business plan, it’s the last thing that should be written because it’s an overview of the full business plan. It’s the most important part of your business plan and should be no longer than one page. The purpose is to summarize the main points of the plan, which helps save your audience time. They can then review the sections that are of most interest to them if they want to learn more. Remember to keep this section concise yet inspiring.
This section should include a list of basic information about your business. Refer to our coffee shop business plan template to see what it should look like when it’s fully fleshed out.
Below are common details that should be included in your plan, especially if you’ll be seeking bank loans or pitching to investors:
This section is where your coffee shop concept comes to life.
It’s time to describe your business in great detail: elements like what the concept is going to look like, where it will be located, and the kind of vibe or brand you’ll be creating. Your business description provides paint a clear picture of your vision and goals.
Here’s what to include in your business description:
Will your coffee business be a sole trader, partnership, limited liability partnership or limited liability company? What people will be involved and what are their roles? Will some wear multiple hats? Be concise – you’ll go into more detail about the team later on.
Your coffee shop concept is your big idea . Take the time to describe why your idea is unique and what differentiates you from other coffee shops. Why should coffee drinkers choose your shop over the one down the street or two blocks over? Also, consider what kind of experience you want to create for your customers. Having a restaurant is not just about what you serve to customers but how you serve the whole experience.
Mission statement
Your restaurant mission statement is one sentence that describes what your coffee shop will achieve. Think of your end goal as the ultimate driving force behind your business. Your mission statement should be something that can be displayed on marketing materials, so keep it short and straight to the point. It needs to easily express to people what your business is about.
Short- and long-term goals
In this section, you’ll want to mention any relevant personal and/or business goals. Your short-term goals describe your first year as a coffee shop owner. Long-term goals involve bigger picture thinking. They are things like how to scale your business or expand into new markets. Be descriptive in this section, but also realistic (i.e. stay within the scope of your financial projections ).
Menu and services
Include a sample menu and discuss your concept in greater detail. If you’re going to offer catering, delivery, or any other services, also include details about complimentary parts of the business in this section. Describe anything else you’ll be selling, such as pre-packaged foods, canned or bottled drinks, or retail products.
You probably haven’t secured a location or negotiated a lease just yet. No problem. Instead of those details, mention the neighbourhoods you’re considering for your venue and why. Answer the following questions and consider the effects they will have on your business:
Describe your concept with as much visual detail as possible. Communicate why these details are important and how they relate back to your brand. If you’re working with a design agency or interior designer, mention them in this section and include their visual proposals or mockups.
Business description summary
This section covers a lot, so briefly sum it all up at the end. The business description tends to be filled with a lot of necessary details, so a summary will help your audience understand the main points.
For this section of the coffee shop business plan, you want to demonstrate that you have thoroughly analysed the target market and can prove there is a demand for your business.
A good way to gather intelligence is to do a competitor analysis . Visit your competition, document their menu items, marketing tactics, business practices, pricing, and brand positioning, then analyze your findings from a variety of different angles.
You can also ask people in your prospective neighbourhood about how businesses perform in that area. By gathering as much information as you can, your marketplace assessment will be realistic and paint a clearer picture of how your business can be successful.
The marketplace section is another lengthy part of the coffee shop business plan, that includes the following components:
Market segment
In this section, you should provide an overview of your target audience. Consider details like demographics, psychographics, and segments of your target market.
It’s time to put your target customers under the microscope, show how well you know them. What types of people will frequent your coffee shop and what similarities/differences do they share? Get qualitative and quantitative data, and reference external resources that provide statistics about your customer segments and any other relevant information. Note that each customer segment within your target demographic will most likely have specific needs.
Market Trends
Include relevant statistics about past and current trends within your targeted marketplace. Anything that relates to the demand for a coffee shop business, as well as social and economic factors that have affected similar businesses in the area. Also mention if you’ve conducted your own research or hired a third-party to conduct research on your behalf.
Competition
In this section, you’ll want to be specific about who you consider to be competition. You’ll have both direct and indirect competition within your chosen neighbourhood. Your direct competitors are the coffee shops that offer similar customer experiences and types of cuisine. Indirect competitors may be different from your coffee shop concept but still compete for your target market’s attention and spend.
Now that you’ve analysed the competition, you should be able to articulate what makes you stand out from the others. What does your coffee shop offer to your target audience that no one else currently provides? Why should someone choose your business over another?
Opportunities
Taking into account your competition and customers, you should see where the gaps lie between supply and demand. Use this knowledge to fine-tune your concept and provide a better option for customers. From the menu to opening hours, whatever your coffee shop can do better than everyone else should be highlighted in this section.
Now consider the flip side: what advantages do your competitors have over your business? What do they offer to the market that your coffee shop doesn’t? Provide rationale as to why your coffee shop faces these barriers and, most importantly, how you’ll tackle them once you’re officially open.
Marketplace summary
Time to sum it all up. Expect this section to be a long one, because you’ve got to summarise everything you’ve outline in regards to your marketplace. Highlight the pieces of information that will have the most impact on your audience, such as the demographics of your target market, advantages, and opportunities.
You may be an amazing barista who can make a killer cappuccino, but without consistent customers and sales, your business isn’t going to last for very long. You need a marketing strategy to keep people coming through the doors.
In this section, we’ll provide an overview of what to include in your marketing strategy, which you can use later on as the framework for your full restaurant marketing plan .
Positioning
Describe how you’ll appeal to your target customers and stay top of mind. Use the differentiators you outlined in the marketplace section to guide your positioning strategy. What do you offer that your target customers can’t get anywhere else? How will you communicate these offerings?
Describe your pricing strategy and how it compares to competitors. The most common question small businesses owners have is, “How do you know what price to charge?”
Questions that will help you decide on a pricing strategy include:
Once you’ve determined your pricing strategy, make sure it aligns with your financials. The prices you charge have to be competitive but still allow you to make a reasonable profit.
Online promotion
Traditional promotion
Will you be hosting an event for coffee lovers? Running a free coffee for a month contest? What about mailing printed ads to tempt locals with photos of your pastries? It’s always a good practice to have a mix of promotional tactics, so if you plan on utilising traditional channels as well as digital, list all your planned traditional ones here.
Marketing summary
Again, here’s your opportunity to briefly summarise your overall marketing strategy and describe which channels you’ll be investing in the most. Emphasize why your marketing strategy is the best approach for both the type of coffee shop you’re opening and the neighbourhood.
You’ve described your vision, the marketplace, and how you plan to market your business. Now it’s time to outline how you’ll actually execute your plan. This means outlining who will operate the day-to-day of your coffee shop.
Describe the main business management categories relevant to your coffee shop and identify the core team members who are going to have responsibility for each category. Introduce everyone on your payroll, from your restaurant consultant to management team to star baristas. List everyone’s qualifications, skills, and responsibilities, placing emphasis on how each role will help you reach your business goals.
List your suppliers according to type. Include descriptions of how each supplier will serve your coffee shop’s needs , as well as their credit and payment terms. This will include everything from food to technology to takeout coffee cups – even landscaping, if you location needs it. Consider how these suppliers may fit into your overall brand, in terms of what quality they are and how they’re sourced.
Since your coffee shop needs insurance coverage , conduct research to determine what’s mandatory. From general liability to workers’ compensation, getting the right insurance will help you sleep at night knowing you’re covered if something goes wrong (a big knock on wood here). Be sure to check with local and national requirements because these requirement may vary. Also, compare quotes from insurance providers. List each type of insurance your coffee shop will need and include what’s covered.
Figuring out what licenses your coffee shop will need is similar to insurance requirements (though this list may be longer). Required licenses and permits can be everything from a business license to food handler permits to music licenses. Start your research as soon as possible by checking your local government office website. List all of the licenses and permits required for your coffee shop and staff in this section.
Business operations summary
Summarize the main points discussed in the Business Operations section. This should be fairly straight forward, as it’s more fact-based than other sections.
The financial plan is the most important section of your coffee shop business plan – especially if you need debt financing or are trying to pitch to investors. Your financial plan has to demonstrate your business’ potential for growth and profitability. To do this, you will need to document your forecast in four main parts:
For new businesses, a good rule of thumb is to underestimate revenues and overestimate expenses – the age old “under promise, over deliver” strategy.
We’ve created a forecast within our coffee shop business sample plan to demonstrate what numbers need to be included. Once you understand the sample forecast, you can then create your own forecast sheets and add in your numbers to project how profitable you’ll be.
Your business plan summary needs to tie together the overall message you’re trying to communicate. Use this final section to highlight how your coffee shop is different from what’s currently available in the market. It’s an opportunity for you to reiterate the most important points about your business.
Make sure to include the following sections:
If you’re thinking about opening a coffee shop then creating a business plan needs to be at the top of your priority list. Remember: you’re building a foundation for success. This includes saving money – because you’ll have your financials organized – and being able to actually get funding from banks and investors.
It’s a lot of work, yes. But keep in mind that you’re working toward making your dream a reality. Any time you can put in now, and we highly recommend additional research wherever possible, will benefit you on the other side – from the first cup to that last drop.
The different types of restaurant concepts.
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Last Updated: May 23, 2024, 12:21 pm by TRUiC Team
Starting a coffee shop, or any other type of coffee business is a great way to earn a living in an interesting industry while also actively participating in your surrounding community.
The three main ways most entrepreneurs start coffee shops are:
Inspired by coffee professionals, our guides will steer you through the necessary steps to make your coffee dreams real, from picking a location to buying equipment , sourcing beans , hiring baristas , choosing a POS system , forming an actual company , and everything in between.
Step one: research and make a coffee shop business plan.
A strong coffee shop business plan is a good first step towards building a profitable company. A business plan should have enough structure to give you firm footing, but enough flexibility to allow for growth as it is an ever-changing document. You'll also want to know the type of coffee shop business to open, like a traditional coffee shop , a coffee roaster , a mobile coffee cart , or other types of businesses, as well as how much everything will cost to start .
Also important to this planning stage is how to do research and find connections in the industry. Networking will always get you further than some Google searches when it comes to valuable information that will help you succeed. The next things we discuss are the costs to start your business and what essential items go into your budget. We wrap it up with a resource for starting your business plan.
Recommended: Learn all about Planning a Coffee Shop Business [Part 1] in our in-depth guide.
The next step in starting your coffee business is developing your marketing and brand strategies . In this guide, we focus on who makes your business successful: your customers and yourself. Your customers should be at the heart of your marketing strategy , especially because your business will bring in different types of customers. Ask yourself what they need and desire from your establishment.
Categorize your customers into specific target markets. Do you operate your business near a university? Expect students wanting a place to study or socialize. Do you operate in a residential area? Parents might want to stop in for a quick coffee on their morning route.
When you think of these people as you develop a marketing strategy, think of how best to reach out to them. As helpful, successful coffee owners discuss what worked for their marketing, they highlight the importance of creating engaging social media for your business.
Developing a brand strategy involves thinking of yourself next. How can your unique story give meaning to your brand?
You can’t have a brand without the right equipment to make your business a success. That’s why we asked our coffee entrepreneurs about how to source products and equipment. Again, they emphasized how important it is to connect with people in this industry.
Recommended: Learn all about Developing a Coffee Shop Business [Part 2] in our in-depth guide.
This is the guide that will actually put what you're doing into a business structure , with all the permissions it needs to do business. With our resources on how to start an LLC , and other topics like you can easily move forward into the next stages of opening your business.
Learn how to pick a great location by listening to the success stories of professionals in our video. One of the most beneficial things you can do is choose a convenient spot where the surrounding tenants bring in a lot of traffic.
Read our guide on the best Point-of-Sale (POS) systems . Cash registers are a thing of the past. Most shops have smart POS systems that make it easy for you to keep track of inventory and sales from the comfort of your home. Our guide covers various factors to consider while making a choice on POS systems.
Just as important as picking a good location is making sure that space has everything it needs to support your business, like the right amount of electrical power, for example.
You'll learn that you need to put in a great deal of work in order to get a turnout for your opening day. Part of making that opening day a success is to hire and train the right kind of staff.
You want your customers to feel the culture of your business right away, and the staff you hire contribute to that atmosphere. Learn what coffee entrepreneurs think are the best traits to look for in a new hire. Any skill can be learned; personalities make the culture of your business thrive.
Recommended: Learn all about Opening a Coffee Shop Business [Part 3] in our in-depth guide.
Ever wonder what it looks like to run a coffee business day-to-day? It includes a lot of work hours. If you want your business to be popular, you need to commit.
All of the technology and equipment your business uses will likely need regular maintenance in order to keep your sales flowing. This means you’re going to need to be ready for problems on a daily basis. Watch our guide to listen to how coffee entrepreneurs put themselves in the right mindset for being an efficient problem-solver.
You’ll also learn some tips for balancing work and play as they try to set a healthy example for staff. As busy as you’ll be owning a business, you (and your hardworking employees) should take the time to relax. Since you’re probably going to be on your feet a lot, it’s important to do things like stretching or yoga so you can be your best self every day.
Recommended: Learn all about Operating a Coffee Shop Business [Part 4] in our in-depth guide.
The final part of this guide deals with what happens after you get your footing in running your business.
You could take your business in any direction. Before you think of growing, consider how well your current business is performing. Does every little thing feel right? Do you have a high-quality team?
After thinking it over, you could expand your product lines, get more space, or even grow into a franchise. But don’t take on too much at once. It all depends on what you want your business to be.
Coffee experts advise entrepreneurs to stay consistent with their original purpose and brand. Other than that, you need to put thought into the future and what your cash flow will be like down the road. Financial changes are likely and you don’t want to be caught off guard.
Watch this guide to see the importance that coffee experts place on listening to customers in order to expand their community. Even competition can be a part of that community if you have a positive attitude.
Recommended: Learn all about Growing a Coffee Shop Business [Part 5] in our in-depth guide.
Starting a Coffee Business is a five part video and written guide series about planning , developing , opening , operating , and growing a coffee shop or brand.
Our video guides feature advice and personal stories from these Michigan coffee companies & experts :
See the full Starting a Coffee Shop Business Playlist to watch all of the videos.
Subscribe to our YouTube channel
The cost of starting a coffee shop depends on a few variables like your location, size, and what type of shop you’d like to open. Generally, a coffee shop could cost anywhere from $80,000 to $250,000.
Recommended: Read our full How Much Does it Cost to Start a Coffee Shop guide.
If you’re starting a business from scratch, a lot of your money will be used on a location and all the necessary equipment. Thankfully, we have a resource to help you sort through the required equipment for starting a coffee business.
Not only do you have to pay the rent on your new location, but you also have to keep in mind any repairs that need to be made or building codes that need to be addressed.
The first thing you’ll need if you want to operate a franchise business is a franchise fee, which ranges anywhere from $10,000 - $50,000 or more depending on the franchise.
Franchisees usually pay an ongoing franchise fee or royalty. This is usually a percentage of the gross revenue. The average royalty percentage is 5 to 6 percent, but this can vary.
The royalty could also be a fixed amount no matter the revenue.
Marketing fees are likely to be another cost if you’re a franchise. Oftentimes there is an advertising or marketing fund that every franchise in the region or country contributes to. This fee will also be either a fixed amount or percentage, likely in the 1-4 percent range.
Another possible cost is for products or services that the franchisor requires.
If this sounds like a good idea for you, take a look at our Coffee Shop Franchising Guide .
You want to hire good employees for your brand-new business. We can help with that. Check out our Hiring Guide .
If you don’t want to be both the owner and the general manager, you’ll need to think carefully about who to hire for this important role. It will benefit you to look for someone who’s had a background in management and who’s had experience with keeping calm in the face of customer complaints.
Someone needs to serve the drinks. Since baristas are the face of your company, you need to hire them wisely. Look for someone who will be an engaging, friendly barista. Anyone can be trained to make coffee, but that positive attitude is hard to come by.
Unless you are franchising, choosing a name for your coffee shop may be the most important first step. There are many factors to consider when choosing a name. We've included some of them below:
Recommended: Use our free Coffee Shop Business Name Generator .
Coffee roaster.
If you love high-quality roasted coffee, maybe you want to try to make it yourself. The big piece of equipment you need to make this business idea work is your coffee roaster. It’s important to research as much as possible in order to make a good choice. Getting a coffee roaster can cost as little as $400 or as much as $58,000.
A coffee cart might be a great option for you if you want a highly portable and flexible business. You need a profitable venue where there’s foot traffic in order to make this idea work, as well as a cart, which could cost up to $20,000 if it includes all of the things you would need.
A coffee kiosk is different than a coffee cart in that it gives you more counter and refrigeration space because it’s a more permanent structure than a cart. A kiosk would allow you to expand beyond the typical espresso bar model to include additional products. You could spend anywhere from $15,000 to $80,000 to start your kiosk.
If you value a fast-paced environment and quality customer service, maybe opening a drive-thru coffee shop is the way you can show your love of coffee to the world. The price for opening a drive-thru coffee shop varies from $35,000 to $80,000.
Do you love cats too? Combine your passion for cats and coffee by starting a cat cafe, a popular concept in Asia but one that is just finding its footing here in the States. Having a cat cafe will call for additional costs than a regular cafe because of all the cat-care you’ll need to provide. You might need around $100,000 for this quirky idea.
Coffee business skills.
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12 Key Steps To Open a Coffee Shop. 1. Have a Vision. Passion with a vision is the driving force you need to move into action and succeed. Your desire will be the fuel to your success, and your ...
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.
To start a business proposal for a coffee shop, use a coffee shop business plan sample and make sure you include the key sections: an executive summary, business overview, management and staff, market analysis, marketing and publicity, operations plan, and financial forecast and expenses. Also, make sure you do enough research before you start ...
Coffee shop business plan template 1: Coffee Haven Café. Executive summary. Coffee Haven Café is a charming coffee shop dedicated to delivering a premium coffee experience in a cozy and inviting setting. Our unique blends, ethically sourced beans and commitment to sustainability set us apart in a competitive market.
Free Download: Sample Coffee Shop Business Plan. Wake up and smell the business potential! In the US, 72% of adults reported drinking coffee in 2022. Globally, coffee consumption rose to 175.6 million bags of coffee from 2021 to 2022 - that's up 4.2%. In such a large, steadily growing industry, there are many possibilities for you to find a ...
Step 2: Create a business plan. A well-thought-out business plan is key to creating any business, and a coffee shop is no exception. If you want to open a coffee shop, you probably already have a ...
Create Your Plan. Secure funding. Validate ideas. Build a strategy. 1. Write a business plan for your coffee shop. One of the most vital steps you'll take toward starting your coffee shop is to write a business plan. This document spells out: What your business is and who it serves.
Writing out a coffee shop business plan can feel a bit tedious and unnecessary. And we won't lie, they do take a bit of time and effort. But every business, no matter big or small, should have a business plan in place. A business plan for your coffee shop will help you: Set business goals and keep you on track to reach them.
Use this free coffee shop business plan template. It's a starting point. The template helps you organize your ideas. It covers important parts like your coffee shop concept, the type of coffee you'll serve (like third-wave coffee), and more. Think of it as a map for your journey to opening your coffee shop.
Step #2: Write an executive summary. While the other sections in your coffee shop business plan can go in any order you choose, the first section should always be the Executive Summary. This section gives a brief overview of the main elements of the coffee shop you plan on running, including: Concept. Execution.
The Ultimate Step-by-Step Coffee Shop Guide (2024) 2024 is the best time to start a coffee shop. With 210 million daily coffee drinkers in the United States and two billion cups consumed worldwide, the American and global markets point to a solid retail coffee future. Whether you want to start a coffee truck business, open a drive-thru coffee ...
How to do Market Research for a Coffee Shop Business Plan. Central to any coffee shop business plan is market research. You need to comprehend your position in the market and aim to validate that there is ample demand for your specific coffee shop concept, location, and pricing structure.
We will open from 7:30 a.m. to 7.30 p.m. We will always have at least three staff members in place to take care of making coffee, process sales, and keep the coffee shop tidy. We will buy our coffee wholesale from a supplier that specializes in high-quality coffee. This coffee will cost $40 per five-pound bag.
Coffee Shop Business Plan Template. If you want to start a coffee shop business or expand your current one, you need a business plan. Over the past 20+ years, our coffee shop business plan template has helped over 7,000 entrepreneurs and business owners create business plans to start and grow their coffee shops.
Still, once completed, a thorough business plan can range from 15 to 60 pages (occasionally more, depending on the business's scope). We recommend always using headings, subheadings, and spaces between paragraphs and sections when constructing your business plan. A coffee shop business plan has several main sections.
A concise introduction to your coffee shop's concept in the form of an executive summary is the first section of a business plan. The executive summary introduces key elements of your business plan, such as an overview of the budget, the business's mission, market, and core values, and a coherent vision for your product and style of coffee ...
Section 5: Tell us what you'll sell and how you'll sell it. 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.
Section 2: Market Analysis and Competition. When starting a coffee shop business, it's important to thoroughly analyze the market and understand your competition. This will help you position your business effectively and stand out in a crowded industry. Take some time to research the coffee industry as a whole.
Whether you want to open a large cafe or a coffee cart, you need a game plan. Your business idea and plans can run the gamut, but without a plan, it will likely always be just that. An idea. A perfected business plan brings life to your ideas, and forces you to consider everything you need to consider in order to both show others how seriously ...
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 ...
1.3.Business Structure. There are three options you can choose from when starting a coffee shop business: Purchasing a franchise: This is one of the most common strategies that people opt for. Buying a franchise of an existing brand would give you a brand name and your customers familiarity.
Emphasize why your marketing strategy is the best approach for both the type of coffee shop you're opening and the neighbourhood. 7. Business Operations. You've described your vision, the marketplace, and how you plan to market your business. Now it's time to outline how you'll actually execute your plan.
Step One: Research and Make a Coffee Shop Business Plan. A strong coffee shop business plan is a good first step towards building a profitable company. A business plan should have enough structure to give you firm footing, but enough flexibility to allow for growth as it is an ever-changing document. You'll also want to know the type of coffee ...