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Download Now: Ultimate Drive-Thru Coffee Kiosk Business Plan PDF

Planning to start a drive-thru coffee kiosk or shop? Then you owe it to yourself to draft a well researched business plan. While a drive-thru kiosk is lower in cost than opening a retail store, be prepared to invest $40,000 at least before you open the serving window to your establishment for the first time. Your overall startup costs will likely be around $100,000 depending on the permits, insurance, equipment, location, size of the kiosk and design. Bottom line you need to take a coffee shop startup seriously because we’re talking about real money here.

When you approach researching a business plan the right way, it increases your odds of success. A real business plan takes time to prepare and eventually birth into the world. The point of the planning process is not to check off boxes to show you did something like you may have done for a course in college back in the day. Instead, the entire point is to better understand the business you’ll be operating. After you complete your business plan you should have answers to the following important questions:

• How do I plan to bring in customers to my business?
• What if my first idea to attract customers doesn’t work as well as I though (gasp!)? Do you have a back-up plan to make sales?
• How much will it cost to start my coffee kiosk? What equipment will I need to invest in?
• Where will I source my coffee, cups, stir straws?
• Will I have employees or do all the work myself?
• How much net profit can I expect to make per cup of coffee?
• How will you differentiate your business from the nearby Starbucks location?

If you can’t answer the questions above than you haven’t done enough research yet. Fortunately, by following the steps laid out in this business plan training document, you’ll be able to find answers to each of these questions.

At the bottom of this post you’ll also find helpful PDFs and business plan examples for coffee shops. We recommend taking the opportunity to look under the hood of these plans and see how these other coffee businesses operate profitably. With the increased footprint of nationally recognized coffee brands like Starbucks or Caribou Coffee, it won’t be easy to launch your own premium coffee shop. But through careful planning, an ability to create a unique customer experience, and determination to work your butt off it is possible to create a thriving coffee business!

Attractive Drive-Thru Coffee Shop. Photo Credit: Pinterest

Key Components of a Coffee Kiosk Business Plan 

Executive summary .

Think of the executive summary as a quick explanation of your business. After reading the executive summary, the reader should come away with a clear understanding of what service or product need the organization provides. In other words, you’ll briefly describe you are doing and how will you make money.

While you’ll want to spotlight unique advantages in this section, save the detailed supporting evidence, including charts and graphs for future sections of the report. Another way to think about this section of the business plan is like the back cover of a novel. When you read the back cover of a book you expect come away with an understanding of what the story is about, but you’ll need to read the book to get the full story and details. The same goes for the executive summary.

Since the goal in writing your business plan is to open a drive-thru coffee shop, the organization of this section is less critical than someone requiring a few million to launch a business idea.

You will likely be using this business plan as a way to get clear on the costs, operation plan, and details of your future business, not secure millions in capital. This section is still a requirement for future kiosk owners, however, as you’ll in most cases need to provide a business plan to demonstrate seriousness and viability.

While you shouldn’t be overly concerned about the structure of this section, Inc.com   offers   good suggestions for the content of this section. A description on how this section might look for a coffee business is below:

Company Description

Natural Blend’s Roasters is a drive-thru coffee shop that will serve sustainably sourced and organic coffee’s to residents in Temecula, California. The company will differentiate itself by telling the story of it’s coffees sourced from around the world. In addition to offering flavor profiles and taste combinations not available elsewhere in the city, we will contribute 5% of all revenue to charity.

The problem.

Temecula, California, is covered in chain coffee shops (Starbucks, McDonalds). The competition does not offer organic, sustainably sourced coffee offerings. This is also an area traveled by commuters that drive to San Diego or Los Angeles for work Monday – Friday. Some coffee shops do not offer drive-thru service that are more convenient for this group.

Your Solution

Our goal is to fill the gap in this area by offering a fast and convenient naturally sourced coffees that are not available elsewhere. Our coffee kiosk will be located just off the I-15 freeway enabling commuters to quickly purchase a cup of coffee and light breakfast.

The city of Temecula has steadily grown in population since the 1990s. In 1990, the city had only 27,000 residents. Fast forward to 2016, the population was 113,000. More families continue to move to the area in part due to more affordable housing in Southern California. Although housing is affordable, many high-paying jobs are located in San Diego or Los Angeles areas meaning that many of the residents commute 5-days per week.

Natural Blend’s Roasters plans to establish a brand in this growing Southern California town that does not currently have competition in the organic coffee space. We intend to build our brand in Temecula and expand to other nearby Southern California cities. 

Outdoor Coffee Kiosk. Photo Credit: Pinterest

Company Description 

The company description comes right after the executive summary. Here you will offer additional detail about your company that was not already covered in the summary. Some details you should include in this portion includes your coffee shop’s location, how large the company is, and what you plan you do.

You’ll also need to provide a brief mission statement in this area. This statement should be brief and provide an overarching direction for the business.

Mission Statement: We seek to provide an organic, responsibly sourced boutique coffee blends unavailable elsewhere in the Temecula / Murrieta area.  We will serve our customers with a drive-thru coffee kiosk that will make this offering more convenient for our customers and seek to make our community a better place.

Market Analysis For a Drive-Thru Kiosk

The market analysis will evaluate key components critical to your small business. First, you will research the market size where you plan to operate. Fortunately, you don’t need to live in a big city to make a family-run coffee shop profitable. A town with 20,000 residents or more can provide a sufficient customer base. Thanks to the power of the internet, you won’t need to invest much time researching the market size and demographics. A few quick Google searches should yield the information you need for the first part of the market analysis like the one below:

Natural Blend’s Roasters will be located in Temecula, California. As of 2016, the population of Temecula was 113,000. Since 1990, the city has continued to grow by over 2,000 residents per year. We anticipate continued population growth over the next 5 years, which will benefit our business and bring in more potential customers. The median age in Temecula is 34 years of age. Roughly 68% of the population considers themselves Caucasian, 10% Asian, and 4% African American. There is also a significant Hispanic population as well.

One of the other advantages of operating in Temecula is that is has become a weekend destination for residents all over Southern California. Each weekend thousands of visitors drive to the Temecula Wine Country to enjoy wineries and dining. A significant number of breweries have also popped up in recent years that are attracting even more visitors. Our location off of the I-15 freeway will make us highly visible to visitors and offer a unique coffee experience that’s not available anywhere else in the area.

According to recent reports , coffee is consumed even more frequently than it was 5-years ago. On average in the United States, coffee drinkers consumer 3.1 cups per day . Independent coffee shops in the United States contribute $12 billion in annual sales. We hope to take a cut of this growing market within the Temecula / Murrieta area.

In the next section of the market analysis plan you will evaluate the strengths and weaknesses of local competitors. You should be looking for ways to integrate strengths and learn from what other coffee shops are doing wrong to serve unfulfilled needs locally.

Competitor #1: Starbucks – Globally recognized coffee chain with multiple retail and kiosk locations inside of grocery stores and Target.

Strengths: 

• Brand recognition
• Over 10 locations in the Temecula / Murrieta area.
• Customer loyalty.
• Consistent product offering and experience across locations.
• Free Wifi for guests.
• Some people don’t like Starbucks coffee.
• Market saturation. There are over 10 locations / kiosks in the Temecula / Murrieta area.

Competitor #2:  The Liquid Leaf – Independent coffee shop located in Murrieta.

• High-quality coffee.
• Wide variety of high-quality teas.
• Nice and comfortable interior.
• Less market awareness than other shops.
• Single location, independent shop.
• Some people incorrectly believe they only serve tea.
• No drive-thru service.

Competitor #3:  Intazza Coffee Works – Honest Trade coffee shop located near a well attended church and business park.

• Beautiful and spacious coffee shop.
• Wide selection of cold brews, coffees, and small plates.
• High-traffic location.
• Strong overall branding and mission statement.
• Wine, beer, and music on Friday nights.
• Near other independent coffee shops.

Organizational Structure and Management

This is your opportunity to define the team member roles inside your organization. If you’re starting a small drive-thru kiosk, the initial management structure may be very simple: You’ll the be the CEO, head barista, and janitorial staff all in one! If this sounds like your situation, you won’t need to invest much time into developing this section of the business plan.

We also know that many of you will be running this business with a family member or partner. Even if you plan to operate the kiosk as a true two-person partnership this is a terrific opportunity to define clearly define each persons role inside the business. A clear role definition between partners is essential to ensure you’re both on the same page and prevent future issues.

In the planning stages of a business, it can be easy to overlook the often mundane aspects of operating a business. For example, who will do the book-keeping on a regular basis? How much will each business owner be paid as a salary? What days and hours will each part of the business? Who will be in charge of marketing? How will be in charge of ordering more coffee beans from the supplier? Getting the responsibilities of each partner on paper helps to clear up future misunderstandings that will happen after opening the business. This also helps to prevent feelings that one partner is working harder to make the business succeed than the other.

In addition to partners of the business, you’ll need to list employees and advisers you’re bringing on advise the business. If you hire an experienced mentor to offer coaching in the early days it can also help you to secure a loan because you’re business is more likely to succeed and help demonstrate seriousness.

Finally, here’s an example of how simple the organizational structure could look in a partnership in a small coffee shop:

Sally, Co-Founder / Owner. Roles: Handles day-to-day management of coffee shop Monday – Friday. Orders supplies and maintains inventory for business,

Betty, Co-Founder / Owner Roles: Manages book keeping / accounting for business, Day-to-Day management of coffee shop Saturday – Sunday. Secures catering, events, and completes marketing for the business.

Charles, Part-time Barista – Employee, Roles: Serve customers, make coffee, clean kiosk, provide excellent customer service.

Pete, Part-time Barista – Employee, Roles: Serve customers, make coffee, clean kiosk, provide excellent customer service.

Product Line 

Here you will list the types of coffees and food items you plan to serve at your coffee kiosk. In addition to beverages, it’s a wise idea to offer snacks or quick breakfast items to increase your average order value and total revenue for your business. Don’t feel obligated to make these side items yourself. If you notice with Starbucks, the food items are all pre-made and only need to be heated before served to customers. By serving already prepared items you remove preparation time, employee salaries (associated with food prep), and ensure faster service for customers. Here’s an example of what your menu might look like for a drive-thru coffee stand:

Note: Don’t forget to be as specific as possible in the business plan on where you plan to source products. If you have time, research your options for similar products from other vendors. In the event one of your vendors increases prices or goes out of business, you’ll already know where you can turn to source alternative products and keep things running smoothly.

Refuge Coffee Co. Food Truck.

Funding Request

In this section, you’ll list how much money you’ll need to borrow or raise to get the business started. In addition to the total dollar amount you’ll need to get started, be as specific as possible where you plan to invest the funds. Acceptable places to invest include coffee equipment, the building, rent, or inventory.  Whether you’re planning to raise capital through a bank loan or an investor, these individuals want to feel comfortable that money is being put toward a good use. Below is an example of a funding request for a coffee shop of any size:

Coffee Shop Funding Requirements: 

Bunn Axiom APS Twin Commercial Airpot Coffee Brewer – $1,399.00

Rancilio MD 40 Commercial Burr Espresso Grinder – $900.00

Refrigeration Unit – $1,500.00

The Oracle Touch Espresso Machine – $2,499.95

Vollrath 40701 Cayenne Half Size Counter Top Convection Oven (230v) – $1,309.05

Water Filtration System – $2,750.00

Custom Coffee Shop Kiosk Build – $30,000

Working Capital: $15,000

Total Funding Requirements: $55,358

Note: Small businesses are almost never fully funded through outside sources. Both banks and investors will want you to have “skin in the game” by investing a significant portion of your own money into the startup. Business owners often use their personal savings or tap into their 401K to get the initial capital needed to fund their business.

Financial Projections for Coffee Kiosks

In this section, we are going to cover what is arguably the toughest part of the business planning: Estimating how much revenue you’ll make. This process is part science, part art, and some educated speculation too. Until you get out there into the world and start asking for money in exchange for your product or service, you never really know how it’s going to work so be ready to adjust these financial estimates in the weeks and months after you open.

While estimating the future revenues of a business that does not yet exist is difficult, that doesn’t mean it’s unimportant. This section will provide you with insight into the sales volumes you need to achieve a break-even point after expenses. This section forces you to take a hard look and determine the financial viability of the business before taking another step forward.  By the time, you get done projecting your sales figures, you may determine this business opportunity is ultimately not for you. That’s totally okay! You’ve got to make sure you’re starting a business with the potential to provide the lifestyle you want.

Income Expectations

In this area we’ll evaluate how much you can expect a drive-thru coffee shop to make in revenue each year. There are a few ways to being your research in this area. The first is simple enough start researching how much income independent coffee shops generate annually. According to this report from 2011 , the typical coffee shop generated $500,000 in annual revenue.

While this might sound like a pretty good annual revenue, keep in mind that these don’t offer much context to each coffee shop’s situation. These reports don’t tell you where the shops are located and how long they’ve been in business. The other flaw with being average is understand that half of the coffee shops make less than this number annually. It’s also a harsh reality that more than 50% of coffee shops will close their doors within the first 5-years of business.

When estimating revenue numbers for a small coffee business, we recommend being conservative with your sales figures. Even with the best spot in town, it will take time people to discover you. Here are some estimates that will influence your own sales figures:

Hours of Operation:  The longer you’re open, the more opportunity you have to generate sales. That being said, you probably don’t want to be open 24/7 because that would be both exhausting and higher in cost from a labor standpoint. Most coffee shops do the majority of their sales in the early morning and afternoon hours so we’ll assume the same to be true for your business.

You’ll also need to consider how many days you’ll want to be open each week. You’ll also need to ask yourself if you want to be open major holidays like Thanksgiving and Christmas Eve. While you may decide to be closed for certain holidays that is perfectly acceptable. Just make sure to account for these days off in your planning as you won’t make sales on days you’re closed.

Estimated Daily Sales for a Coffee Kiosk: 

Below is an example of hours of operation for a coffee kiosk.

5 a.m. – 3 p.m. Daily. – 10 hours per day. 7 Days per Week.

Using these hours, you have 70 total vending hours per week assuming no holidays. To keep the numbers simple, let’s estimate that you plan to sell 100 large cups of drip coffee per day at $3.00 a piece. This means you’re expecting to sell 10 cups of coffee per hour on average. At this rate, you’ll generate $300 in sales per day. This is a pretty conservative number considering many customers will order more than one cup of coffee or a snack. Still, these conservative numbers are smart approach when determining the viability of this business.

$3.00 Average Sale X 10 Average Transactions Per Hour = $2,100 per week in average revenue. Applying some basic math you would be yielding $8,400 per month. Annual sales numbers would be $100,800. Again, these numbers assume you are open for business 365 days per year and sell the same amount each day.

At this stage in your business, it’s acceptable to play around with the numbers a bit. Understand how much extra revenue you could generate by increasing your average order value to $4.50 instead of $3.00. Estimate what you business would look like if you increased average transactions per hour to 15 (not an unrealistic number for a coffee kiosk).

In reality your sales volume will change on different days and times of the day. Here’s a closer to real-life example of what a daily sales of a well-run coffee kiosk might look like:

• Monday:        $400
• Tuesday:       $275
• Wednesday:  $225
• Thursday:      $525
• Friday:           $600
• Saturday:      $800
• Sunday:        $600

Total Revenue:  $3,425 for the week (Or $13,700 per month, or $164,400 per year.)

Factors that Directly Influence Future Sales: 

As a business owner there are plenty of things you can do to increase revenue of a business. Here are some of the options available to you to increase revenues:

• Location: If you’re located in a busy parking lot next to a grocery store or off a major highway, you can expect to generate more sales. Finding the right location for your business is critical for it’s success.
• Average Order Value: If you’re able to increase the average sale amount, you can add a lot of money to the bottom line at the end of the year.
• Frequency of Visitors: In addition to finding more customers, getting the same customer to visit your kiosk 2 – 3 times per month can really increase bottom line metrics.
• Marketing: This broad category includes your signage, personal relationship, networking skills, and social media marketing skills.
• Catering and Event Business: By adding a catering arm to your coffee business, you can immediately add thousands in annual revenue to your small business. The success of catering and event businesses can be the difference between success and failure for coffee cart businesses.

Expenses For a Coffee Kiosk

Startup Costs:

• Drive-Thru Coffee Stand: Pricing depends largely on size and type of structure. Kiosks, carts, shipping containers, trucks and stands can all be utilized for this business.
• Construction: Curb modifications, landscaping, lighting, electrical or signage installation.
• Coffee Shop Equipment: Espresso machines, water purification systems, refrigeration units.
• Initial Inventory: Coffee beans, creams, syrups, cups, straws, sugar, napkins.
• Point-of-Sale System / Cash Register

Total startup costs are extremely variable. On the low-end you can start a drive-thru coffee kiosk for around $40,000. After considering minor construction updates to the vending area and commercial grade coffee equipment you can expect to pay $100,000 – $150,000 all-in for startup costs.

Monthly Business Costs:

• Cost of Goods Sold (COGs):
• Debt Payments (If Any):
• Accounting / Bookkeeping:

Additional Resources 

Business Plan Template : Looking for more examples of a business plan that you can download? Check out our previous podcast interview / template created by a food truck vendor.

POS System : If you’re planning to open a coffee kiosk, you’ll need a way to accept credit card payments fast and safely. Learn more about the point-of-sale systems we recommend for food and beverage businesses.

Coffee Business Startup Costs : An estimate of all he costs associated with opening a coffee business.

How Much Does a Drive-Thru Coffee Stand Make in a Year? : Annual estimates and opinions from a variety of folks on Quora.

Looking for additional resources to help you start a coffee kiosk? Here’s some of the best we’ve found published online. The PDF below for a company called The Daily Perc is worth checking out while you’re still in the business planning phase.

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About the Author: Brett Lindenberg

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How to Start a Thriving Drive-Thru Coffee Shop

Larry Alton

13 min. read

Updated November 13, 2023

Free Download:  Sample Coffee Shop Business Plan Templates

Have you opened up a drive-thru coffee shop? Are you thinking about opening one? Drive-thru coffee seems like an automatic cash machine—everyone loves fast, convenient coffee, right?

While owning a drive-thru coffee shop can be profitable, there are some lesser-known secrets to creating a thriving coffee business. Being moderately successful is okay if you want to run your business for the rest of your life, but if you want to retire, you’re going to need some power tips—especially if you’re aiming to match the legendary status of Dutch Bros. Coffee .

Whether you’re buying an existing franchise or building your shop from scratch, building a solid business plan and following these tips will launch you far ahead of the competition. For a more detailed look at the process of starting a coffee shop, check out the  Bplans coffee shop and cafe business startup guide .

I’ve worked in, supervised, and managed multiple drive-thru coffee shops over the course of fifteen years. During that time, I’ve seen success bigger than Dutch Bros, where customers were served in under a minute no matter how long the line was. As a barista, I’ve completed 4-hour shifts earning over $50 in tips. As a manager, I’ve increased sales by over 100 transactions per day by making small, effortless changes. As a trainer, I’ve watched new baristas gain the skills and confidence to fly solo within a week.

I’ve seen a lot of success in those fifteen years. I’ve also seen thriving corporations franchise their locations only to watch the business fail in less than three months because the new owners eliminated the systems that were driving the success. While this wasn’t good news for the owners, it demonstrated the importance of these systems.

Failure in the coffee industry is predictable, and if you want to avoid failure, you need to know what drives success. Contrary to popular belief, it’s not just your menu items, gourmet pastries, or fancy drinks that create success—it’s how you run your store, from the inside out.

• 1. Keep a tight control on your inventory

There’s a difference between tracking inventory and controlling inventory. Keeping track of inventory involves counting your products at regular intervals (like at the end of the month) to see what you’ve gone through so you can calculate your costs and place new orders. Controlling inventory, on the other hand, involves managing how your products are used in order to prevent waste.

One of the biggest sources of lost income for drive-thru coffee shops is from waste, and most coffee shop owners are unaware of just how much of a waste problem they have. To prove this, I ran a shift where I required every barista to dump their leftover milk into a 5-gallon bucket. By the end of the day, the bucket was almost full. It didn’t look like much on a per-drink-basis, but after serving hundreds of drinks, the waste really added up.

Waste is a problem that occurs as a cumulative effect of small sources of waste that seem insignificant until you add them all up. These sources of waste can include everything from dairy to syrups, and unfortunately, it can cost thousands of dollars each month.

Here’s a typical, real-life example of how waste can add up in an average day.

Let’s say you staff four different employees in the course of a day. Each employee can produce the following average amount of waste during the day:

• Two or three mistake drinks that results in wasting cups, lids, straws, sleeves, sugar, syrups, sauces, whipped cream, and espresso beans.
• A stack of cups, lids, napkins, sugar, or other supplies that fall to the floor and are thrown away.
• A couple of dropped pastries.
• A couple of eaten pastries.
• Broken pastries that can’t be served.
• Napkins that get soaked in water.
• Straws that get syrup on them.
• A pot of brewed coffee that had grounds in it that gets re-brewed.
• A pot of coffee that expires and has to be dumped.
• Two ounces or more of leftover milk in each pitcher after making 50+ drinks during each shift (100 ounces of milk is about ¾ of a gallon).
• Remaking a drink because the customer changed their mind.
• Remaking a drink because they forgot to brew decaf espresso.
• Spilling a drink on the floor.
• Knocking over a pitcher of milk.
• A grinder that over or under-doses the espresso—for every five shots brewed, one shot worth of grounds is wasted.

These are all sources of daily waste that add up to hundreds of dollars per week. Some coffee shops waste so many cups that they may as well just throw away an entire case every few months as soon as they receive their shipment.

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Proper training is part of inventory control

Providing industry standard training for yourself and your staff will eliminate a majority of waste in your store. Training people to pour perfect portions in pitchers can reduce milk waste by three gallons or more per day. Training people how to fill the portafilters with the proper dose of espresso, regardless of what the grinder puts out, can save up to 40 shots worth of espresso per day.

Requiring employees to ring in their employee beverages and account for all pastries and drinks that are wasted for any reason forces them to become more conscious about what they’re doing, and not only drastically reduces waste but also provides you with a more accurate picture of where your waste is coming from, so you can find a way to stop it. A simple tender button labeled “mistake” that zeroes out the total and accounts for the product on the back end can do the trick.

• 2. Avoid serving food that needs to be prepared or heated

By leaving the combination of coffee and hot food to fast food restaurants, you’re doing yourself the biggest favor in the world. First, preparing and heating food takes time which means wait times and lines will be longer. Your goal as a drive-thru coffee shop should be to get people through as fast as possible while providing exceptional service. Unfortunately, this can’t be accomplished when hot food is part of your menu.

Food that requires utensils to eat is also going to prove problematic. Not only is it not environmentally friendly, but the moment you run out of forks—and you will—your customers will have to figure out how to eat their lunch in their car with their hands, and then they’ll be mad.

Instead of trying to be a mini restaurant, offer a small selection of pastries and dry goods you can quickly place into a bag already prepared with a napkin and a wet wipe, and just hand the bag to the customer.

• 3. Staff a greeter to keep people from driving away

There’s no way around it—people are going to attempt to drive through your shop when they’re late for work, or they have somewhere to be, fully expecting instant service. If you take too long to serve them, they’re going to get mad. Some will leave the line if there’s nobody behind them, but for those who get sandwiched in the middle of a few cars, there’s nowhere to turn.

Sometimes people will drive away, even when they’re the second person in line, if their perception is that things are taking too long. However, there is a way to keep people in line and it’s all about customer service.

The way you keep people in line, especially during the morning rush, is to have someone positioned as a dedicated “greeter.” This person stands outside and greets the cars in line, taking orders and passing them on to the people inside making the drinks. This accomplishes two important things. One, it gives the people inside a head start on making drinks, speeding up the line. Two, it makes the people in line feel like they’re already taken care of, decreasing the perception of their wait time. When they know their drink is being worked on, it gives them more incentive to stay in line.

If you’re in the process of hiring new or additional employees to fill this role, make sure to ask them these important questions first  before you make your new hire.

• 4. Have a dedicated barista in addition to window staff

Many drive-thru cafes only staff one person in the afternoon, and sometimes only two people in the morning. Since there are usually two windows, this can create a problem that slows down the speed of service and creates a struggle for the staff. When the person at the window also has to make the drink, or they have to handle both windows and prepare the drink, you’re losing most of your leverage for a quick transaction.

In the late 1990s, a drive-thru coffee chain called Caffino blasted the Bay Area in California with an unrivaled service guarantee of coffee in 60 seconds or less —and the baristas not only met this goal but exceeded it sometimes with transactions lasting just long enough for the car to drive through, toss in a $5 bill and grab their drink. That’s because they had a dedicated barista, dedicated window people, and a dedicated greeter; the drinks were often made before the car pulled up to the window.

• 5. Invest in training baristas properly

The best training you can possibly provide for your staff is to schedule dedicated training shifts where both you and your new hire are training for the whole day, and not available to help customers. In order to train someone effectively, they need your full attention without interruption. It’s a mistake to schedule yourself as an available staff member and think you can train people between customers.

Understandably, many coffee shop owners train new hires by waiting for a customer to order a drink and then asking the new hire to make it, thinking that repetition alone over a period of time will commit the recipes to memory. There is an easier way.

The real reason coffee shop owners schedule themselves (or their trainers) to work the floor while they train is because they’re trying to save money on labor. As a trainer, I’ve had many conversations with franchise owners practically begging them to staff extra people so I can have dedicated time with my new hires and none of them would because they saw it as “unnecessary labor.”

If you wait for a drink to be ordered before letting them get their hands dirty, and think you can just train them on other similar drinks verbally, you’re going to end up thinking they’re just not getting it, not realizing you’re actually making it harder for them. If you have employees who have a hard time remembering recipes, change the way you train them and you’ll cut training time in half.

It costs money to train effectively, but it’s worth it.

Efficient training turns out confident baristas in less than a week

When you put your trainee in front of an espresso machine and systematically train them to make drinks that build off of each other, you allow them to get in the flow, continue the momentum, and remember recipes easily.

For example, you’d want to have your trainee start with only hot drinks and make the following drinks in the same size, in this order: a doppio espresso, an espresso macchiato, a latte, a vanilla latte, and finally a mocha. Then repeat this for the next size. Then go to cold drinks. This is the best way to train because you’re building their skills in grinding, dosing, tamping, and extracting—building on the complexity of the recipe slowly.

You’d save the cappuccino for last because that involves steaming the milk differently and will take them out of their flow. Also, once they’re proficient at steaming milk for a latte, it will be easier for them to confidently practice steaming milk for a cappuccino.

For ten years I was the main trainer for a high volume, corporate drive-thru espresso bar, and I produced fully trained baristas with no prior coffee experience in seven days using the method outlined above. They were so well trained I could leave them alone in the store if necessary. Our hands-on training system was specifically designed to support the quick memorization of recipes through a natural, logical progression.

In that 10-year time span of training hundreds of baristas with dedicated training sessions, there were only a few people who didn’t make it through the training.

I observed that when the training protocol was broken and new hires were told to make the iced equivalent of the hot drink they just made, even though the ingredients were the same it threw them off. The cups looked different, they were located in a different section of the store, the order of adding ingredients was backward, and there was an extra step to add ice. When the training protocol was followed, they were able to move between hot and cold drinks with minimal error. I knew our training system was effective, but I didn’t realize how effective it was until my location was franchised.

When the corporation franchised my location, the owners decided to train new hires much differently. Before a new hire was allowed to enter the store, touch an espresso machine or any other equipment, they had to pass a verbal recipe test while standing out in the parking lot. They were given a week to memorize recipes for every espresso beverage printed in a packet.

With no prior coffee experience, they had to memorize over 20 drinks in five sizes with recipes that varied between hot and cold versions. Not only did they have to memorize the ingredients for each drink, but they had to memorize cup sizes, number of shots, number of flavor syrup pumps, chocolate sauce pumps, powder scoops, and more. The majority of people failed this verbal test and the franchise owners would not allow them to continue their training otherwise. They had no idea their way of training was ineffective.

How you explain drinks to new hires defines their ability to recall recipes

When you ask a new hire to memorize individual drink recipes and you ask them how to make a 16oz mocha, a 16oz latte, and a 16oz breve, they’re going search their memory for three separate drinks. I’ve watched countless new hires scratch their heads and breathe deeply with big pauses in speech while attempting to explain these three drinks after being given a packet to memorize.

When I trained new hires, I explained the three drinks differently and painted a picture for them that created a connection between all of the drinks that made it easy. I told them a 16oz latte is two shots of espresso and steamed milk, and the other two drinks are just variations. A mocha is the same drink but with chocolate added, and a breve is a latte that uses half and half instead of milk. With this explanation, the new hire only needs to memorize one recipe for a latte, and then “mocha” and “breve” become keywords for a recipe alteration—not a separate recipe.

If you’re not sure how to train your staff, you can provide state of the art training for all of your baristas through the Specialty Coffee Society of America .

• You can make drive-thru coffee a profitable business

Owning a drive-thru coffee shop is a profitable business if you’re willing to put in the time and effort required to do it right from the start.

If you follow the tips outlined here, you’ll be far ahead of your competition, and you’ll not only see more profit, but also provide better service.

Larry is an independent business consultant specializing in tech, social media trends, business, and entrepreneurship.

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Coffee Shop Business Plan Template & PDF Example

• July 22, 2024
• Business Plan

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

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

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

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

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

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Coffee Shop Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

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Executive Summary

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

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

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

Coffee Shop Business Plan Executive Summary Example

Business Overview

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

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

Market Overview

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

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

Management Team

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

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

Financial Plan

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

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

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

Coffee Shop & Location

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

Operations & Offerings

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

Industry Size & Growth

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

Key Market Trends

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

Competitive Landscape

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

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

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

Identifying Your Coffee Shop’s Competitors

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

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

Coffee Shop Competitors’ Strategies

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

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

What’s Your Coffee Shop’s Value Proposition?

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

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

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

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

Marketing Plan

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

Marketing Channels

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

Digital Marketing

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

Local Advertising

Connect with the local community to increase foot traffic:

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

Promotional Activities

Attract customers with enticing offers and loyalty programs:

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

Sales Channels

Optimize  sales channels  to maximize revenue and customer satisfaction.

In-Store Upselling

Maximize each customer’s visit:

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

Subscription Services

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

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

Mobile Ordering and Pickup

Facilitate convenient ordering and pickup options:

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

Strategy Timeline

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

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

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

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

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

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

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

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How to write a coffee shop business plan

• Nirit Braun
• Oct 30, 2023
• 14 min read

A coffee shop business plan is a detailed and strategic document outlining the essential aspects of starting and operating a coffee-focused business. It encompasses a comprehensive analysis of the business's goals, target audience, competitive landscape, marketing strategies, financial projections, operational procedures and more. This plan acts as a roadmap that guides entrepreneurs through the various stages of establishing and running their coffee shop, providing clear direction and a solid foundation for success.

When starting a business, especially in the competitive and dynamic realm of the coffee industry, creating a comprehensive and clear business plan is of paramount importance.

Ready to get your business brewing? Take Wix’s website builder for a whirl.

Top benefits of creating a coffee shop business plan

A well-crafted business plan helps entrepreneurs articulate their business goals, whether it's about offering unique coffee blends, creating a cozy ambiance or supporting sustainable sourcing practices. At the same time, a business plan requires entrepreneurs to identify and understand their target audience. This insight helps tailor marketing strategies, menu offerings and the overall customer experience to meet the specific preferences and needs of the intended customers.

Here's an overview of some key advantages to creating a coffee shop business plan:

Attracting investors and funding: A well-structured business plan acts as a persuasive tool when seeking investors or raising money for your business . It showcases your thorough understanding of the coffee industry, market trends and your strategies for success. This level of preparedness increases your credibility and instills confidence in potential investors, making them more likely to support your coffee shop venture.

Clear resource requirements: Writing a business plan prompts you to identify the specific resources, supplies and staff necessary to launch and operate your coffee shop. This includes everything from coffee beans and brewing equipment to furniture and interior decor.

Strategic financial planning: A comprehensive business plan outlines your financial projections, startup costs, operating expenses and revenue forecasts. This level of financial planning helps you determine how much funding you need to start a business . It also guides you in setting prices, managing cash flow and assessing profitability.

Market understanding and differentiation: Through market research and analysis, a business plan allows you to understand your target audience's preferences, behaviors and expectations. This knowledge helps you tailor your coffee shop's offerings, ambiance and marketing strategies to effectively attract and retain customers.

Risk mitigation: The process of creating a business plan prompts you to identify potential risks and challenges that your coffee shop might face. By acknowledging and addressing these risks early on, you can develop contingency plans and strategies to mitigate their impact.

Operational efficiency: A business plan outlines the operational processes required to run your coffee shop smoothly. It includes staffing plans, inventory management strategies and quality control measures. By establishing efficient procedures from the outset, you can minimize wastage, optimize resource allocation and ensure consistent customer satisfaction.

Goal setting and tracking: Your business plan serves as a benchmark against which you can measure your coffee shop's performance over time. By setting clear goals and key performance indicators (KPIs), you can track your progress and make necessary adjustments to stay on course toward achieving your objectives.

How to create a coffee shop business plan in 6 steps

Now we’ll walk through the six essential steps for crafting a coffee shop business plan tailored to your company's unique needs.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

Your executive summary is a concise and compelling overview of your coffee shop business plan. It encapsulates the key elements of your plan and provides a snapshot of your business concept, strategies and financial projections. While appearing at the start of the business plan, it's often written last, as it draws from the content of the entire document.

A clear executive summary for a coffee shop business should include:

The essence of your coffee shop: What makes it unique? What kind of experience will customers have when visiting your establishment?

Market potential and your target audience: Explain why your coffee shop is well-positioned to capture this opportunity.

Competitor landscape: Identify what sets your coffee shop apart from the competition. This could be your specialty coffee blends, unique ambiance, sustainable practices or exceptional customer service.

Example executive summary for a coffee shop: "Bean Haven Coffee is a meticulously crafted coffee shop that aims to provide not just beverages, but an immersive coffee experience. We pride ourselves on our curated selection of ethically sourced beans, offering customers the finest hand-crafted brews in a cozy, rustic ambiance. Our competitive edge lies in our commitment to sustainability, from our bean-sourcing practices to our eco-friendly packaging. With a strong emphasis on community engagement and partnerships with local artists, we are set to become a cultural hub that brings people together over a shared love for exceptional coffee. Through strategic marketing campaigns, leveraging social media and collaborating with nearby businesses, we aim to establish Bean Haven Coffee as the go-to destination for coffee enthusiasts and connoisseurs alike. Our projected financials indicate that we will reach profitability within the first 18 months of operation. We seek funding to cover initial startup costs and our business model is designed to achieve sustainable growth and profitability."

02. Company and domain names

Knowing how to name a business is crucial for a coffee shop venture and a key step before you register your business . A strong and memorable name can resonate with customers and differentiate your coffee shop from competitors. Use descriptive words that reflect your coffee shop's essence, whether it's about taste, ambiance or values.

Utilizing a business name generator like the one from Wix can provide inspiration and spark creativity. Play with different combinations of words and ideas until you find a name that feels right. Once you've settled on a name, check its availability for domain registration. A domain name that matches your company name is essential for an effective online presence.

When choosing a domain name consider the following best practices:

Ensure that the domain name reflects your coffee shop's identity and offerings

Choose a name that is easy to spell and remember

Opt for a timeless name that won't become outdated quickly

If possible, include relevant keywords in the domain to improve search engine visibility

Steer clear of names that are easily confused with competitors or other brands

03. Market analysis and research

With more than 38,000 coffee shops in the U.S. alone, there are plenty of competitors to analyze. Including a comprehensive market analysis in your business plan is essential for understanding the competitive landscape and formulating effective strategies. Research your local coffee market, identify existing competitors and analyze their strengths and weaknesses. Determine your target audience's preferences, behaviors and demographics to tailor your offerings and marketing campaigns accordingly.

A well-rounded market analysis can guide your business strategy, helping you position your coffee shop effectively, develop compelling value propositions and devise strategies to capture your desired market share.

04. Operations plan

The operations plan is a crucial section of your coffee shop business plan. It outlines the practical aspects of running your coffee shop. Use it to describe your chosen location and its significance for foot traffic, accessibility and target audience reach.

Then, take the opportunity to detail the interior design, layout and ambiance of your coffee shop to create a welcoming atmosphere. Next be sure to list the equipment needed for brewing, food preparation and service. Ensure it aligns with your menu and production capacity. Finally define the roles and responsibilities of your staff, from baristas to managers, and outline their qualifications and training needs.

05. Marketing and advertising strategies

The marketing and advertising portion of your business plan outlines your strategies for promoting your coffee shop and attracting customers. Depending on your target audience and brand positioning for this type of business , consider a mix of traditional and digital marketing methods. This means using social media platforms like Instagram, Facebook and Twitter to showcase your coffee creations, engage with customers and share your coffee shop's story. Collaborate with influencers, local organizations or other businesses to expand your reach and tap into new customer segments.

Additionally, you can choose to participate in community events, farmers' markets and collaborations with other local businesses to increase your visibility. Also consider implementing loyalty programs that reward repeat customers and incentivize them to visit regularly.

You’ll need to develop a suite of brand assets to use in your marketing as well, starting with a company logo. You can use a free logo maker to get a professional design in minutes.

Learn more: How to make a website

06. Financial plan

The cost to start a coffee shop business can range from $50,000 for a mobile operation to over $400,000 for a brick-and-mortar location with booth seating and a drive-thru. This hefty expense is just another reason why a financial plan is so important.

The financial plan is the backbone of your coffee shop business plan. It outlines your startup costs, operating expenses, revenue projections and funding strategy. Investors and lenders will closely scrutinize this section to assess the viability of your coffee shop venture, so remember to do the following:

Detail the initial investment required for equipment, interior design, licenses and permits

Estimate ongoing costs such as rent, utilities, supplies and salaries

Provide realistic revenue forecasts based on your expected capacity and customer traffic

Specify how you plan to secure funding

Highlight when you anticipate reaching profitability and generating positive cash flow

By meticulously planning your finances, you demonstrate a solid understanding of the financial aspects of your coffee shop business and showcase its potential for success.

Coffee shop business plan examples

Below we’ve put together business plan templates for two hypothetical coffee shop businesses, including all the sections discussed in our previous how-to steps.

Coffee shop business plan template 1: Coffee Haven Café

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. By fostering community engagement and partnering with local artists, we aim to become a cultural hub that brings people together over exceptional coffee. Through strategic marketing efforts and a strong online presence, we project profitability within 18 months.

Company and domain name

Company name: Coffee Haven Café

Domain name: www.coffeehavencafe.com

Our marketing analysis revealed a growing demand for specialty coffee in our target location. We've identified key competitors and highlighted their strengths and weaknesses. Our target audience consists of young professionals and students who value quality and ambiance. By understanding these dynamics, we can tailor our offerings and marketing strategies effectively.

Location: Centrally located in a busy commercial area with high foot traffic

Premises: Rustic and inviting interior design that promotes relaxation and conversation

Equipment: High-quality espresso machines, grinders, brewing equipment and display cases for baked goods

Staffing: Experienced baristas, friendly waitstaff and a dedicated manager to oversee operations

Social media: Engage customers through Instagram, Facebook and X with enticing coffee shots and behind-the-scenes content

Local events: Participate in local festivals, art exhibitions and collaborate with nearby businesses for cross-promotions

Content marketing: Regular blog posts on coffee trends, brewing tips and spotlight features on local artists

Loyalty programs: Offer a loyalty card program with rewards for frequent visitors

Partnerships: Collaborate with nearby bookstores for reading sessions and local influencers for social media endorsements

Startup costs: $70,000 for equipment, furnishings, licenses and initial inventory

Operating expenses: Estimated monthly costs of $12,000 covering rent, utilities, supplies and staff salaries

Revenue projections: Projected revenue of $300,000 in the first year, growing to $450,000 in the second year

Funding strategy: Initial funding from personal savings and a small business loan from a local bank

Profitability timeline: Aim to achieve profitability within 18 months of operation

Coffee shop business plan template 2: Brew & Gather Coffee House

Brew & Gather Coffee House is a community-focused coffee shop aiming to create a warm and inclusive space for coffee enthusiasts. Our commitment to locally sourced ingredients and artisanal brewing techniques sets us apart. By fostering partnerships with neighboring businesses and hosting regular events, we aim to become a staple in the neighborhood. Our projected financials indicate profitability within the first two years.

Company name: Brew & Gather Coffee House

Domain name: www.brewandgathercoffee.com

Through extensive market research, we've identified an opportunity to serve a diverse community seeking an authentic and welcoming coffee experience. We've assessed competitors' offerings and identified an untapped niche. Understanding our target audience's preferences and values will guide our menu and marketing strategies.

Location: Situated near a local park, providing an oasis for relaxation and community gatherings

Premises: Modern yet cozy interior design with flexible seating arrangements to accommodate groups and individuals

Equipment: State-of-the-art espresso machines, pour-over stations and an open bakery display

Staffing: A blend of skilled baristas, friendly hosts and a community engagement coordinator

Social media: Utilize Instagram and TikTok to showcase brewing techniques, share customer stories and host virtual coffee-tasting sessions.

Local events: Host open mic nights, book clubs and workshops to engage the community.

Content marketing: Publish a monthly newsletter featuring coffee culture insights, staff spotlights and local partnerships.

Loyalty programs: Introduce a tiered membership program offering exclusive discounts and early access to events.

Partnerships: Collaborate with local farmers, artisans and musicians to create a truly immersive community experience.

Startup costs: $100,000 for leasehold improvements, equipment, permits and initial inventory

Operating expenses: Projected monthly expenses of $15,000, covering rent, utilities, wages and supplies

Revenue projections: Anticipate revenue of $350,000 in the first year, with a 15% increase in the second year

Funding strategy: Initial investment from personal savings and a crowdfunding campaign targeting the local community

Profitability timeline: Aim to reach profitability within the first two years of operation

How profitable is a coffee shop?

The profitability of a coffee shop can vary depending on a number of factors, including location, business model and marketing strategy. However, in general, coffee shops can be quite profitable.

According to a report by IBISWorld, the average profit margin for coffee shops is 8.33%. This means that for every $100 in revenue, coffee shops generate $8.33 in profit.

Some coffee shops are even more profitable. For example, coffee shops located in high-traffic areas, such as airports and office buildings, can generate profit margins of up to 15%. And coffee shops that sell specialty coffee drinks and food items can also generate higher profit margins.

Here are some tips for increasing the profitability of your coffee shop:

Choose a good location. A good location is essential for success. Look for a location that is convenient for potential customers and has high visibility.

Offer a unique selling proposition. What makes your coffee shop different from others? What can you offer that your competitors cannot?

Provide excellent customer service. This is essential for building a loyal customer base. Make sure your staff is friendly and knowledgeable, and that they are always willing to go the extra mile for your customers.

Market your coffee shop effectively. Let potential customers know about your coffee shop and the unique offerings you have. You can do this through online marketing, social media and word-of-mouth.

Control your costs. Coffee shops have high costs, so it's important to control your costs as much as possible. This means negotiating good deals with your suppliers, managing your inventory carefully and keeping your labor costs under control.

Why do coffee shops fail?

There are a number of reasons why coffee shops fail. Some of the most common reasons include:

Poor location: A coffee shop in a bad location won't attract enough customers to be successful. Coffee shops need to be located in areas with high foot traffic, such as near office buildings, universities and parks.

High overhead costs: Coffee shops have high overhead costs, such as rent, utilities and labor. If a coffee shop can't generate enough revenue to cover its overhead costs, it will eventually fail.

Poor management: Poor management can lead to a number of problems, such as low customer satisfaction, high employee turnover and financial difficulties. Coffee shop owners need to have a strong business plan and be able to manage their finances effectively.

Lack of marketing: Coffee shops need to market themselves effectively to attract new customers and keep existing customers coming back. Coffee shop owners need to develop a marketing plan and budget, and they need to track their results to see what is working and what is not.

Competition: The coffee shop industry is very competitive. Coffee shops need to offer something unique to stand out from the competition.

Coffee shop business plan FAQ

How do you start a coffee shop business plan.

To start a coffee shop business plan, you need to consider the following factors:

Location: Choose a location that is convenient for potential customers and has high visibility.

Target market: Identify your target market and tailor your business plan to their needs and preferences.

Menu: Develop a menu that includes a variety of coffee drinks and food items that will appeal to your target market.

Pricing: Set prices that are competitive and generate a sufficient profit margin.

Operating costs: Estimate your operating costs, such as rent, utilities, labor and inventory.

Marketing: Develop a marketing plan to reach your target market and generate awareness of your coffee shop.

How many cups of coffee does a coffee shop sell per day?

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

What is A Coffee Shop Business Plan?

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

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

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

1. Clear Vision and Objectives

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

2. Financial Planning

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

3. Operational Efficiency

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

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

1. Executive Summary

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

What should you cover in an Executive Summary?

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

2. Coffee Shop Business Description

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

What should you cover in the Coffee Shop Description section?

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

3. Market Analysis

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

What should you cover in this section?

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

4. Organization and Management

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

What should you cover in the Organization and Management Plan?

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

5. Sample Menu

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

What should you consider when creating a Sample Menu?

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

6. Marketing Plan

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

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

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

7. Operations Plan

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

What Operational Issues should you address in your Business Plan?

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

8. Financial Plan

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

How Much Does It Cost to Start a Coffee Shop?

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

How Many Ways to Fund Your Coffee Shop?

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

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

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

9. Financial Projections

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

Break-even analysis:

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

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

Projected profit and loss statement:

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

Cash flow analysis:

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

Coffee Shop Business Plan Template

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

2. Description of the Coffee Shop

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

3. Menu Offer

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

4. Market and Competition Analysis

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

5. Investment Plan (Detailed Cost Analysis)

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

6. Financial Forecast

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

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

8. Marketing Plan

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

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

Tips For Writing a Business Plan For a Coffee Shop

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

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

Frequently Asked Questions

1. how profitable is owning a coffee shop.

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

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

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

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

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

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

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

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

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

Related Coffee Shop Resources

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

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

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Coffee Shop Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Coffee Shop Business Plan

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

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

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

Sample Business Plan for a Cafe or Coffee Shop

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

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

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is a coffee shop business plan.

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

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

What Are the Main Types of Coffee Shops?

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

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

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

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

How Much Does it Cost to Start a Coffee Shop?

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

How Do You Get Funding for Your Coffee Shop Business?

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

How to Start a Coffee Shop?

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

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

• How to Start a Coffee Shop Business

Where Can I Get a Coffee Shop Business Plan PDF?

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

How to Buy an Existing Drive-Thru Coffee Stand Business

How to Buy a Drive-Thru Coffee Stand Business

There are many great ways to start a drive-thru coffee stand . Depending on your estimated coffee business budget, you'll probably explore various coffee shop ideas and settle on a concept that works for you. There is simply no shortage of coffee concepts! 

Typically, there are three general ways to start a drive-thru coffee business. These include:

• Investing in a coffee franchise
• Starting a coffee drive-thru shop from scratch
• Buying an existing coffee stand business

These options may contain advantages and disadvantages. This post will discuss elements you will want to consider when buying an existing independent drive-thru coffee stand.

No doubt, b uying an existing drive-thru coffee stand business may be an affordable, faster, and easier way to jump into retail coffee – if it's done right .

Indeed, depending on where you live, you may or may not have the option to buy an existing drive-thru coffee stand. They simply might not exist, or there may be none currently for sale. This may mean you must set up  a new coffee stand from scratch . And that's okay, too. Additionally, you may also consider starting a coffee truck.  However, in this post, we'll focus on drive-thru coffee businesses.

Now, you may have already Googled the term:

“Coffee Stands for Sale Near Me”

This is a common Google query.

Photo credit: AlfiePrice

It may produce recent drive-thru coffee stand ads that may pique your interest. Alternatively, a quick search on websites like Craigslist for terms like “coffee stand for sale” will probably expose a variety of drive-thru purchasing options that you have available in your region.

While there may be some great opportunities, you should be cautious of the wayside coffee stand business being sold on Craigslist or other website advertisement boards. After all, many bad deals are out there waiting for the unsuspecting new owner.

To avoid a drive-thru coffee stand business disaster, you should always research what's available. However, you will want to be careful and take your time.

Despite our sincere word of caution, however, there may be a few diamonds out there.

By understanding your business's vision, you'll be able to avoid many common mistakes made when buying an existing drive-thru coffee stand.

This is why it's essential to write your coffee shop business plan first to understand what you want and what type of coffee stand you will need. 

There are clear advantages and disadvantages to starting a coffee business from scratch or buying an existing drive-thru coffee stand business. You will want to understand all of them as they pertain to you and your specific situation. Knowing what you want always makes you a much better negotiator. 

Benefits of Buying an Existing Drive-Thru Coffee Stand

How should you prepare to buy a drive-thru coffee stand business?

Before purchasing a drive-thru coffee stand business, you should:

• First, be patient  – don't jump on the first drive-thru coffee shop you see.
• Ask questions diligently – the more you know, the better decision you will make.
• Never compromise –  when it comes to getting the answers you need.

Drive-thru coffee stands come and go on the market, so again, be patient . The more deliberate you are with getting the answers you need, the more prepared you will be. Use the available data to move forward – or not – before taking over an existing drive-thru coffee stand business. You will avoid a potential disaster by being diligent with your questions, getting the answers you need, and being patient.

Further Reading: How to Buy a Coffee Truck

How to Buy an Existing Drive-Thru Coffee Stand

Avoid a drive-thru coffee stand purchasing disaster.

You don't want to buy a failing drive-thru coffee business.

Sinking thousands of dollars into a coffee stand business – which was poorly run, poorly built, poorly maintained, and poorly branded – only to have to spend thousands more to get it up and running efficiently.

When presented with a drive-thru coffee shop for sale, should you buy it?

This article proposes several essential questions that should be answered positively before buying an existing drive-thru coffee shop business. Since each location and drive-thru coffee stand business is different, you may need to develop other questions about yourself and your situation.

Having the answers before signing a property lease or spending any significant money may require some thought, research, and planning.

This investment in time, research, and diligence will help you avoid making a poor choice.

We know that emotions can play a big role in buying a coffee drive-thru stand (or any business). You aim to recognize this fact and then do all you can to avoid basing your decision on emotions.

We recommend obtaining hard data to analyze whether the drive-thru coffee stand is worth your money, time, and emotional investment.

The hard data helps remove the emotional factors that lead to future hardship and money loss. So, again, try to remove all emotion from the decision-making process, and you will fare much better as you move forward.

Buy an Existing Drive-Thru Coffee Stand Business

Buying an independent drive-thru coffee stand or a franchise is another option to jump into the retail coffee business.

How to Buy a Drive-Thru Coffee Business Step #1

Write a Business Plan for Your Drive-Thru Coffee Stand

A well-written business plan for your drive-thru coffee business will be vital before starting your business.

Within the plan, you will want to detail how you will obtain your drive-thru stand. For example, you will want to write that you intend to buy an existing drive-thru coffee shop, or if you cannot find an existing drive-thru coffee shop business to your liking, you will either build one, rent, or purchase a used one.

You will want to have a general idea of your drive-thru coffee stand budget – and determine what you can and cannot afford before entering into negotiations for your business.

How to Buy a Drive-Thru Coffee Business Step #2

Determine What is For Sale

When buying a drive-thru coffee stand, you want to determine what is exactly for sale. Unfortunately, many ads featuring drive-thru coffee stands for sale are posted with various pictures and vague language. Commonly, they may include a general price and location.

There may or may not be any mention of the coffee equipment and other important items essential for running your business. In addition, the actual condition of the structure, plumbing, electrical work needed, or current ownership may also be vague.

You should also ask for essential information, such as: 

• What's the condition of the existing coffee equipment?
• What are the lease terms?
• What are the daily sales numbers?

Additionally, you will want to find out if the business has any existing debt that could come back to haunt you if you buy the business outright. 

How to Buy a Drive-Thru Coffee Business Step #3

What’s The Property Lease Situation

You must know the existing lease details. Many coffee stand businesses will find it convenient to leave after a few years in business when their property lease is up or coming due.

Find out how much time is left on the actual property lease , who owns the property, and are willing to re-negotiate a property lease that works for you. Make sure you read the existing lease. Don't take anyone at their word. Read the signed lease yourself!

Please note: You should consider investing in our Complete Coffee Shop Startup Kit , which has an audio interview on signing your property lease for your coffee business.

Your property leases can either sink your business or make it easier for you to be profitable. Your lease contains many of the things you can or cannot do at your business – including additional investments or remodels. It includes items like electricity, water, plumbing, and trash disposable.

Other things can be included in your property lease, like signposting requirements, exterior lighting, outdoor seating, etc. Your property lease can also limit what's on your coffee menu board , your hours of operation, your bathroom access, and security.

Knowing the terms of the existing lease will give you the best indication of what kind of experience your business will start with.

Current Rental Terms for Your Drive-Thru Coffee Shop?

While the monthly rent is important to your monthly budget, you should know how the leasing terms will develop or unfold over time.

For example, your rent maybe $1000 a month and increase to $1250 a month the second year, and $1700 a month the third year, and so on. Will this be sustainable for you?

While this may not be your specific situation, the fact is that you need to know the conditions and terms of the existing lease that is currently in use – and how it will unfold year over year.

The property lease may often not be re-negotiated until the lease expires. So if you purchase a coffee stand business in the middle of an existing lease, you will have to live and operate under the terms of a previous property lease negotiation.

When looking at the terms of your property lease , you will want to review everything that is allowed that is not stated or explicitly stated. For example, some property owners will restrict certain food or beverages from serving or restrict your outdoor signs or sitting areas. This could be detrimental to your drive-thru coffee stand business.

Additionally, basic questions should be understood beforehand. For example, will you be responsible for food waste and recycling? Is there any restriction with remodeling the pre-existing facility or structure? Are there extra security or pest control charges within a specific business district or property area?

While some of these may not be specifically a part of the lease, you may still need to adhere to a business district's jurisdiction and subsequent regulations.

How to Buy a Drive-Thru Coffee Business Step #4

Your Drive-Thru Coffee Stand Commercial Commissary

Your drive-thru coffee stand may need a commercial commissary. 

Every drive-thru coffee stand needs the space and facilities to satisfy commissary functions. But, unfortunately, we’re not aware of one municipal or zoning area in the United States that does not require a commissary (or something like a commissary) to meet the health department’s code requirements.

In fact, speaking of the health department, many drive-thru coffee stands have a hard time getting the permits required to open because of some structural challenges. Therefore, a commercial commissary may be required.   

As a result, if you buy a “stand-alone” drive-thru coffee business structure from somebody who currently has it in storage, make sure you have enough space, plumbing, etc., to install the equipment you must have to serve your coffee and beverages properly.

Where will the commissary be located? Will that be a part of the lease, or will you have to have a second lease with the same property owner or a different one?

Highly Recommended: Our Complete Coffee Shop Startup Kit also includes a detailed discussion with a health department representative, which is valuable for any new coffee business owner to hear.

How to Buy a Drive-Thru Coffee Business Step #5

Look at Existing Vendor or Service Contracts

This may sound obvious, but your drive-thru coffee stand business requires you to sell items to your customers to generate revenue.

Unless you plan to make everything “in-house,” you must decide on vendors to work with. Unfortunately, many coffee stand owners wait until the last minute to decide which vendors to choose from. The vendors you work with will be important partners in your drive-thru coffee stand's success. Overall, your relationships with them will impact your product and services – and thus, your overall reputation and smooth operation.

More importantly, the vendors that you work with impact your bottom line. So, looking into what you'll be getting yourself into is critical.

While most vendor and service contracts are flexible or reasonable, some may not be. And you don’t want to get buried with existing or carry-over contracts that may put a limit on your menu.

Before purchasing the drive-thru coffee stand, find out (and get proof in writing) that no outstanding vendor or service contracts are tied to the existing coffee stand business.

For example, are you responsible for paying interest or payments on any equipment tied to current vendor contracts or obligations? Are you tied to serving a particular coffee roast or ordering a particular amount of product per week or month? Do you owe any money or taxes?

Take away points:

• Do your own research with potential vendors first.
• Understand which contracts will transfer over (and their details)
• Assess whether existing contracts fit with your business concept

How to Buy a Drive-Thru Coffee Business Step #6

Determine Your Permits

When buying a drive-thru coffee stand business, you need to decide the existing licenses and permits' status. Are they transferable in your area? Have there been any infractions or issues regarding permitting this particular business?

Each city and county has their own rules, regulations, taxes, level of enforcement, and procedures, so they will become partners as you begin to take over the coffee stand business.

My recommendation is that you make a few phone calls before you actually buy an existing coffee stand.

Some of the things you can find out are whether the current owner has had any compliance challenges. Or whether upcoming changes to a business district or new rules can impact your taxes, your signs, or any other business activity.

How to Buy a Drive-Thru Coffee Business Step #7

Study Existing Profit & Loss Statements

If your business negotiation is transparent, the seller of the drive-thru coffee stand should be willing to share the last year (or two) of P&Ls ( Profit or Loss Statements ). These financial documents basically tell the reader how much is being spent, how much is being made, and their difference. Getting accurate P&L statements is essential – but it is often forgotten.

If your drive-thru coffee stand business costs you $6K to maintain and operate monthly, but your P&Ls show only a $500 profit ($6,500), you must consider whether the business is worth purchasing. Can you cover your personal labor expenses and pay off any interest tied to the business with these margins?

Again, we recommend that you:

• Take a look at receipts for a given period of time.
• Analyze existing financials
• Count customers for at least three business days to ensure you have a decent customer base.

How to Buy a Drive-Thru Coffee Business Step #8

Count Customers Before Buying Your Coffee Shop

While P&Ls (Profit & Loss Statements) are important to see and analyze, you should not merely depend on them. In fact, you should also consider counting customers. Counting customers is essential in your “due diligence” process. We offer resources on the best practices of counting customers in our Coffee Shop Startups blog .

Counting customers lets you see (and quantify) firsthand what your sales outlook entails. In addition to providing you with good and hard information, you can look at who your customers will be, what they are interested in buying, and how long they will stay. This, of course, only matters if you intend to operate on the same site.

If you intend to operate your drive-thru coffee stand business on the same site, counting customers can help you determine if you have a viable coffee stand business.

Choosing The Best Drive-Thru Location

Check Out the Surrounding Area and Do Your Market Research

Let's say you found a promising drive-thru coffee stand business and have done the initial research. So far, things look great. But as you drive away from your future drive-thru coffee stand, you notice a “Proposed Land Action” sign near the location.

You stop and read the proposed notice, which reads that the area will be turned into a freeway on-ramp. How will this construction impact your coffee stand business? While it may be great in the long-term, all traffic would be detoured elsewhere for the next two years!

Consider another scenario: the notice sign states that a big box store or nearby strip mall will be turned into a condo project. How would that impact your sales – before, during, and after the construction is completed?

Construction and changes in nearby businesses can impact your drive-thru coffee business, too. Checking out the area you plan to invest in is critical for any business, especially coffee businesses sensitive to the community's conditions.  

Take time to get to know your potential neighbors and customers by talking to local businesses, researching any demographic data, and working with other large organizations (such as churches, schools, etc.).

What do customers think of the drive-thru coffee stand?

Many drive-thru coffee stand postings on Craigslist do not like to leave their business names. This may be for fear of notifying employees or for some other reason. Often, this makes researching a coffee business challenging before approaching the coffee stand owner.

My recommendation is to call first, get the business's name, and check out the online reviews and social media accounts before visiting the place for yourself.

What is being said about them? Do they have a loyal following? Are there any negative reviews? Will you have to climb out of a dark hole when it comes to the coffee stand's existing reputation?

Don't be mistaken: there is a lot of value in an existing business' good name or goodwill within a community. But, conversely, a damaged reputation (even if very slight) can have an impact on your bottom line. In fact, “goodwill” is often a valuable factor in a business negotiation.

Perhaps, being a customer before meeting with the owner and determining the customer service for yourself.

Buying a Drive-Thru Coffee Stand

Determine why the coffee shop owner is selling.

Why is the drive-thru coffee stand owner selling their business? This is a good question and needs to be understood thoroughly. Beware of coffee shop owners who have just set up their espresso business only to sell it within a year or two simply because they “lost interest” or they are “suddenly retiring.”

Retirement can be seen a decade or so down the road, so getting into a coffee stand business only to retire after 7 months in business may not present a full, honest picture. Are they leaving because the coffee business isn't making a profit? Are they leaving because of health code violations? Or… are they really simply moving on to a different chapter of their lives?

Determining why someone is leaving their business and why they are looking for someone to replace them is important to know.

• Who are the competitors?
• Who will your customers be?
• How are other similar coffee shops and coffee stands performing in your area?
• What are other factors that exist in your area that may impact your business?
• Which vendors are available to work with?

How to Buy a Drive-Thru Coffee Business Step #9

Get The Knowledge You Need

Certainly, opening a drive-thru coffee stand business can be a worthwhile and profitable venture IF it fits into your vision.

Looking at all aspects of the existing coffee business will help ensure that you don’t lose your shirt over the deal. Get all the information you need before taking the plunge.

While nothing is 100% fool-proof, taking steps to minimize your risk exposure will help you in the long run.

That is why we believe that regardless if you feel confident in your upcoming purchase, you should consider listening to the experts and coffee veterans in our coffee shop startup guide.

It will not only increase your knowledge base but help you review many of the important aspects of a coffee drive-thru stand that should not be overlooked.

Recommendation: Pinch Yourself If You Start Seeing Stars!

Okay, you found a great-looking coffee stand. Right now, everything is looking dreamy. The coffee stand is “perfect,” the location is “perfect,” the financing looks “perfect.”

But…don't empty your bank account just yet.

Remember to take the emotional aspects out of the purchase before you buy it. Instead, your concern is, will your coffee stand turn a profit? And when?  A good barometer for that answer is how is the coffee stand currently right doing now.

This is our recommendation: Have someone who cares about you – who really cares about you, pinch you! Then, take a step back, breathe, and revisit your business plan.

Go through it with someone. Ask your friend to play devil’s advocate and then sleep on it for a few days. If you've heard the “other side” and have had a few days to get over your infatuation state of mind, and you still feel positive about it, then it may be a good time to step forward.

How to Buy a Drive-Thru Coffee Business Step #10

Back Away From Pressure Tactics

Starting a coffee business can be a life-changing venture. It can also be very costly too. The more time you spend planning and understanding your core business, the more you will save, prosper, and profit.

So, don’t respond to added pressure by the business owner to buy the business. Every good business owner will know you will need time to review the information you have collected and crunch the numbers.

Again, don’t respond to pressure tactics! Just because the current owner wants to “retire” by a particular date or “leave the country” by this coming Sunday doesn’t mean you need to rush into making a purchase.

A common tactic sellers use is to tell you (or a prospective buyer) that they have other serious people waiting. They will tell you that you need to decide by 6 pm tonight, or they will decide to go with another buyer. If you haven’t had a reasonable time to review the business and documentation, simply skip this “great opportunity.” You will be glad you did!

Buying a Drive-Thru Coffee Stand Business By Itself?

Many businesses or coffee stand owners may be selling only the coffee stand itself. They might be storing the coffee stand in the warehouse or their backyard. The only thing that is for sale is the shell of the business. Remember, you still need to find a permanent location, coffee stand equipment , inventory, and negotiate storage.

Consider all of these points before spending thousands on only the “shell” of the drive-thru coffee stand business. Next, examine the physical integrity of the coffee stand. Does the stand need to have plumbing or electricity installed or repaired? Will it need painting, insulation, or other work? Finally, will it meet the building code standards for your state?

This is critical because you could buy a stand for $10,000, only for it to fail to meet your state or county building code's basic requirements! So before making the purchase, check with your local building department. (Make a phone call or pay a visit to your building department before purchasing the coffee stand).

As you can see, there are a few things you will want to know when buying an existing drive-thru coffee stand business.  Let us summarize how to buy a drive-thru coffee business in the list below:

• Determine what is for sale exactly.
• Have all the existing lease details.
• How will you solve your commissary requirements?
• Are there any existing vendor service contracts?
• What are the current zoning requirements?
• See the profit or loss statements.
• Count existing customers.
• What are the community opinions of the drive-thru coffee stand?
• Why is the customer selling their drive-thru coffee stand?
• Avoid pressure tactics from the owner.

Buying a turnkey drive-thru coffee stand business has plenty of benefits, but choosing the right one with all the elements discussed will be important before you write out a check or transfer funds. 

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Disclaimer: We do not dispense legal advice. This information is for educational purposes only. Be sure to do the necessary research yourself before you start your coffee business. 

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Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully.

Over the last 10+ years , we’ve helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits.

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How To Start A Coffee Shop (2024 Guide)

Updated: May 1, 2024, 5:13pm

Table of Contents

How to prepare, 12 key steps to open a coffee shop, tips for success after opening a coffee shop, independent coffee shop vs. starting a franchise, frequently asked questions.

It’s no wonder you want to start a coffee shop. Coffee is one of the most popular and profitable beverages in the world. It is robust and delicate, flavorful and aromatic, stimulating and relaxing. It’s conversational, it brings people together and it jumpstarts the day. The coffee industry can be a lot of fun. If you want to know how to start a coffee shop, look no further—we’ve compiled the ultimate guide to get you on your way.

Before you truly launch into the process of starting a coffee shop, you should lay a solid foundation to build on.

Create a Business Plan

Having a business plan is important. It’s similar to a map, helping you get from point A to point B.It’s also essential if you are seeking a loan or investment. You want your lender to see what you intend to achieve and how you plan for success.

Creating a business plan helps you connect your investments with goals, have a business model, show your target market, sales strategy and overall potential for growth. It also helps you uncover any weak spots, honing in on things that could potentially go wrong. Try to map out the whole picture for the entire business including business structure, customers, location, pricing, cost, products, staff and financials.

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Choose Your Business Structure

When it comes to choosing your type of business structure , it is important to decide what structure best supports you and your business. This is something you will need to do before you register your business with the state. It is best to choose your business structure carefully, as it directly affects you and your business from personal liability, taxes, legal protection, bankruptcy, selling or even transferring ownership.

You could run your business as a sole proprietor, partnership, limited liability company (LLC) or corporation. LLCs and corporations provide protection against personal liability, but require filing forms with your state. Take some time to consider which option works best for you.

Consider Costs: Funding and Finances

Unless you already have the finances to start your coffee shop, you’ll need to calculate your startup costs. After you determine your startup expenses, you’ll need to decide where to request funding. You may have self-funding or investors as financial resources or you may need to contact banks and credit unions to request a small business loan . Another popular option is crowdfunding, which allows other people to support and contribute to the success of the business. Whichever way you decide, you need to have a good idea of what your budget is going into it. Consider costs such as renovations, buildouts, construction, machines, water systems, coffee grinders—these can add up. It’s inevitable for unforeseen things to come up, so it is better to be as accurate as you can and avoid underestimating.

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 customers will sense your love and dedication to the business. This vision and passion not only fulfills your personal dreams and desires, but it delivers an exceptional outcome and experience to your customers. When the going gets tough, you’ll need that fuel to get you through and when you put your heart and soul into something you love, the payoff is even greater.

“People with passion can change the world” —Steve Jobs

2. Do Your Research

Knowledge is power and it is a major contribution to your success. In order to gain knowledge, you must do your research. Start by learning the ins and outs of what makes a successful coffee shop.

There are many ways to do this, from hands-on experience to networking, asking other coffee shop owners with experience and educational tools such as books, classes and online content. This will provide you with important tools and information to move forward with confidence. Write a list of questions to help you gather the information you need. Some examples include:

• How do you roast your own coffee beans?
• What makes a great cup of coffee?
• What are the best machines to use?
• What are the coffee shop essentials?
• What is the competition like in the area?
• What are the health codes for a coffee shop?
• What other sources can help the business grow?

The more knowledge you have, the better your business will be. You’ll have more insight on how to run it, and you’ll be able to make good decisions. Your staff will trust in you and your customers will enjoy buying from you.

3. Identify Startup Cost and Equipment

No matter what, starting a coffee shop will have expenses, and these are essential for your operation. If you are choosing a brand-new retail location, it will be more costly to build and renovate than it will be to rent an existing location. Depending on the size and location of your coffee shop, cost can vary from $100,000 to $600,000. Determine what your budget is and what your limit is to spend on the necessities including renovations, furnishings, products and equipment. Some common startup costs that you’ll have include:

• Rental space
• Licenses and permits
• Advertising
• Staff wages
• Furnishing and equipment

To gain a full picture, separate your one-time costs, such as licenses and permits, equipment and renovations, from your monthly costs, such as utilities, advertising and employee wages.It’s better to overestimate than underestimate, and it’s important to have additional funding to cover operating costs until the business becomes profitable. This can take anywhere from six to 12 months.

4. Develop a Branding Strategy

Branding is much more than a logo. It not only represents the overall identity of your business, but the quality of your product, allowing customers to recognize, become familiar and trust your services. Think of it as the face and personality of your coffee shop and what makes your café unique and stand out.

Ask yourself, “How can I leave a lasting impression on the consumer and how do I want my customers to feel when they arrive?” You want your brand to activate their senses so they will automatically anticipate the full experience before they even walk through the door. This leaves a lasting impression on the consumer, encouraging them to talk about their experience with others and visit again.

Here are some helpful questions to ask yourself when developing your brand:

• What makes your coffee shop unique? For example, the coffee beans, the atmosphere, the environment, the services, the ingredients, etc.
• What kind of experience do you want to provide, and what is your overall theme for the shop?
• How can you create a sense of community, and how does it serve others as a gathering hub?
• Is your brand logo appealing, and does it translate well on packaging, social media and merchandise?
• How will your logo create a sense of familiarity and trust for consumers?

Once you’ve found the perfect design, don’t forget to trademark your logo and protect your creative assets.

5. Find a Location and Commercial Space

When starting a coffee shop, it’s important to choose a location and space that provides a wonderful experience for your customers. With that in mind, you’ll also need to consider other factors that will determine the success of your business, returning true profitable potential.

Pick a location that targets your ideal customers. You want to make sure there will be enough foot traffic in the area to provide your coffee shop with high volume and avid coffee drinkers—keeping your business steady year round. Get an idea of population density in your area by contacting the city or visiting census.gov census data by zip code.

Research other coffee shops in the area. It’s a good idea to research other coffee shops in the area to see if they compete with the products and services you provide. Some coffee shops target specific audiences or have limited hours of operation. This could help you determine whether or not you want to target customers who are early birds or night owls. Maybe you want to serve breakfast sandwiches in the morning or dessert and coffee in the evening.

Either way, it’s a good idea to make sure you’re not in competition with your neighbor—try to complement them instead.

Find a location that is easily accessible. Customers are drawn to locations that are easily accessible whether on foot or driving. Customers love the convenience of hassle-free parking and street visibility for those walking from one destination to another.

Find a commercial space. Finding a cozy coffee space is just one necessary component to an exceptional café experience but, unfortunately, not all commercial spaces will be able to accommodate more than that. Coffee shops require a unique set of accommodations, such as sufficient space to move around, room for espresso machines, couches and tables, kitchen space, gas, drain and water lines just to name a few. Remember to take all of it into consideration.

Find a commercial space you can afford. This falls in line with your budget as an ongoing cost, making it a commitment for the long haul. Consider the length of the lease, rent increases, renovations, insurance requirements, security deposit, maintenance and repairs. This not only plays a role in your coffee prices, but can directly affect any business loans.

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6. File for Permits and Licenses

Before you start firing up the espresso machine and filling the display case with baked goods, you’ll need to get approved for state and local licenses and permits. Make sure you’re prepared ahead of time and be aware that these licenses and permits take time to secure. Permits and license requirements vary from state, city and county so be sure to check with your area of operation in order to fully operate in compliance with state laws and regulations.

Here are some licenses and permits you’ll likely need to open a coffee shop:

• EIN (Employee Identification Number)
• Business license
• “Doing Business As” License (DBA)
• Retail Food Service License
• Resale License for Sales Tax
• Sign Permit
• Food Handler’s Permit
• Building Health Permit
• Live Entertainment License

Once these important documents are set in place, you’ll be well on your way to opening your doors.

7. Choose the Right Coffee Supplier

A successful coffee shop is one that brews quality coffee time after time. A delicious cup of coffee keeps your customers coming back for more, making the experience enjoyable and worth every penny. When sourcing coffee, you’ll want to offer a product you’re proud of and to do that you must partner with the right supplier.

Here are a few key pointers to consider when choosing your coffee supplier:

Coffee lovers can be picky so be prepared to brew a high-quality cup of joe. When scouting the right supplier, there are many factors to take into consideration. Learn about the origin, how the coffee is roasted and where they source the coffee beans. If possible, visit the supplier and sample the coffee firsthand or request samples by mail. Inquire how the coffee is stored—as heat and humidity can damage the flavor and quality. Look for a coffee roaster that offers a wide variety of coffee bean options and falls in alignment with the vision of your café.

Find a supplier that can support low minimums to higher-volume capacity and has a fast and reliable turnaround. Once you find a supplier that suits your needs, you’ll want to make sure the supplier is able to grow with you. You may want to purchase a wide variety of coffee beans or a minimum quantity to start and a larger quantity as you grow. Either way, make sure you choose a supplier you can rely on. Your business will have fluctuating needs and you want to make sure the supplier is consistent and can provide a steady supply.

Customer Service

Think of your supplier as someone you are forming a long-term relationship with. You’ll want them to be just as committed to your success as you are. A good supplier will provide great customer service and walk you through each step—from roasting to packaging, sampling, creating blends and making small to large orders.

There are a few important things to consider when finding a price that works for you, including quality, customer prices and profit. First, determine if the supplier offers quality beans for the price, Second, decide if the price is fair for your customers and what your profit margin will look like. Lastly, will this price allow you to turn a profit? Great coffee does not come cheap, but it should not break the bank either. Most importantly, the taste and price should be worth a return visit.

8. Design Layout and Workflow

Your coffee shop layout and workflow will play a critical role in attracting customers to your café. Not only is ambiance and environment important, but so is the customer flow, food flow and coffee flow.

Here are a few things to consider when designing a layout:

Create a first impression. From a marketing perspective, your first impression determines who will become your customers. Determine what message you want to convey and what type of experience you want your customers to have when they walk through the door. Is it cozy and quaint? Is there music, study areas or areas for conversation? Not only is ambiance important, but so are the little details—such as where your customer will stand in line, wait for their coffee and move comfortably from place to place.

Create a good workflow design. Keep in mind, you’ll want to provide great service to your customers and with great service, you’ll need to move quickly and efficiently. Coffee shops can get busy, so it’s important the layout allows your baristas to move gracefully and swiftly when under pressure. Create a layout that allows the barista to be in a good flow from taking orders to brewing, grinding, steaming and frothing.

Long before you sign any contracts, make sure the building can accommodate a good workflow and area design. Consider how you will arrange and place the essentials:

• Coffee machines, grinders, milk frothers and kitchen equipment
• Storage and supplies
• Food display
• Menus and signs
• Outdoor and indoor seating
• Food assembly
• Coffee assembly
• Customer and employee flow

9. Order Equipment and Supplies

Quality equipment is necessary for a good cup of coffee but, unfortunately, equipment is not cheap. It’s best to do your research when making big purchases and remember quality equipment is a long-term investment, essential for the growth and success of your business.

Here is a list of equipment essentials you’ll likely need for your café:

• Espresso and coffee machine
• Coffee grinder
• Water filtration system
• Refrigeration and freezers
• Hot food equipment
• Point-of-sale (POS) system
• Dine-in and take-out coffee containers
• Ice machine
• Bakery display

This is just a starter list of your standard equipment and supplies. Remember to do your research because every detail counts. Get ready to stock your shelves with blenders, stirrers, syrups, varieties of milk, condiments, containers and thermometers and more. Inventory management software is also a great tool for tracking and identifying these items, making it easy to know what’s in stock and what needs to be reordered.

10. Hire and Train Your Team

A good barista goes a long way, from the very first interaction with the customer to their coffee-making skills. Remember, the people you hire are the face of your café and they have the ability to make a positive difference to your customers’ day. Customer service is everything so hire staff who know the importance of building relationships with people and have strong communication skills. Customers love genuine interaction and it will help create a bond between the customer and the café.

You also want to train your employees properly so they can make a great cup of coffee with confidence. Make sure the barista is ready to learn and is fully equipped with all the essential tools and knowledge to succeed—even a skilled barista will benefit from a refresher.

Here are a few must-haves to look for when hiring and training a barista:

• Great customer service
• Strong communication skills
• Attention to details
• Ability to multitask
• Ability to work under pressure
• Responsible and reliable
• Willingness to learn
• Cleanliness
• A positive attitude

Overall, a great barista will not only have a love for coffee, but they will care about the success and reputation of your business. Learn more in our guide about how to hire employees.

11. Market Your Brand

It can be frustrating to gain exposure when first starting out, so having a marketing plan for your brand should be top priority. It’s also important you tailor your ads and promotional products in a way that attracts the right people. There are many influential ways to promote your brand, so make sure to utilize all avenues of marketing—whether it be through online web content, social media, storefront advertising or involvement in the community.

Let’s take a look at a few ways you can promote your brand:

• Create a website
• Search engine optimization (SEO)
• Social media
• YouTube, Instagram and Facebook
• Influencer marketing
• Community gatherings and pop up shops
• Giveaways and raffles
• Paid advertising

12. Open House

Hard work pays off and once the paperwork is signed, decor is in place and staff is on the schedule, it’s time to open your café. To do so, you’ll need to get people to walk through your doors on opening day.

Now is the time to create a buzz through your social networks. Plan a ribbon-cutting event to promote your business or welcome a few people to a soft opening for an exclusive firsthand experience. Post about opening day on social media, letting your target audience know you’ll be open for business. You can even offer discounts or freebies as an incentive; this will help build curiosity and entice people to visit.

During the open house, it’s a good idea to show the face behind the brand. Mingle with your customers and take the time to know your community as this helps to build good lasting relationships.

There is no secret formula to success but here are a few additional ways you can increase your chances of success and grow the business.

Invest in a Strong Point-of-Sale System

You can greatly improve your business through a point-of-sale (POS) system . POS systems are made up of hardware and software, working together to process sales and payment transactions at the point of purchase. This system is digital with an intuitive touchscreen and interface, replacing the traditional cash register.

Having a point-of-sale system will benefit every area of your business. It allows customers to use different payment types, which in turn increases your revenue. It improves accuracy with a touchscreen, allowing you to keep a close eye on sales, profits and expenses.

It shows real-time inventory data from tracking inventory, making reordering simple. It also includes time clock functionality for employees to clock in and clock out. You can print reports, customize receipts and so much more. A point-of-sale solution is a great addition, furthering the success of your business and keeping your business organized and running smoothly.

Stay Ahead of the Game

In a saturated market of coffee shops, it’s important your café stands out. Find ways to take your coffee shop to a whole new level, giving your customers a good reason to visit your café and not your competitors. This brings money in the door and profits up.

Create consistency with your customers so they know what to expect, giving them a reason to come back, which helps form a long-term relationship. Think of something you can include with their experience that they wouldn’t get anywhere else such as a free biscuit with purchase, rewards or loyalty programs. Another way is to create an environment that is warm and inviting. Have relaxing music playing, comfortable lounge areas and offer free Wi-Fi, this will help your customers feel at home.

If you’re considering opening a coffee shop, you may be wondering if it is better to start a franchise or an independent business. There are many differences between the two business models and the choice will ultimately depend on your personal vision and set of goals. Let’s briefly take a look at both sides of the coin.

Opening an Independent Coffee Shop

Independent small business ownership is for those who have a personal vision and want to follow their own passions. You decide how the business will run. You are your own boss and you call the shots in every area of operation. If you decide on opening an independent coffee shop, you’ll have the freedom and independence to fully create and market your own product and brand name.

On the other hand, you’ll have less exposure, and you’ll need to develop your own customer base. You are fully responsible for developing and maintaining the success of the business.

Opening a Franchise Coffee Shop

When you franchise a coffee shop, you buy the rights from a company to operate and do business under their brand name. They provide the blueprint to replicate a proven formula. There are many controlled elements when opening a franchise, ranging from hours of operation and marketing strategies to the type of equipment and ingredients used.

They define how the business will operate in every way and you gain the reputation of a brand that most people already know and trust. If you decide you want to open a franchise, you’ll be responsible for signing contracts and following many rules and regulations. Startup costs can be high and you will have to pay a continuous fee to keep using their name.

In a nutshell, both have pros and cons, and both have the potential for success. It’s important to do your research and consider all factors before making a decision.

Bottom Line

We all know coffee will never go out of style. Coffee shops are continuing to grow and are becoming more popular every day, offering a variety of flavors and styles. You will likely succeed as a coffee shop owner if you have an ongoing love for your business and a solid business plan. Stay committed to the journey, express your creative edge and be open to learning. All in all, owning a coffee shop can be a gratifying and profitable experience.

How profitable is a coffee shop?

The profit margin will all depend on a few major factors, such as volume of sales, location, price point, startup costs, operational cost and more. Every coffee shop will vary from person to person, but it is estimated that a coffee shop owner can make between $50,000 and $175,000 yearly.

Do I need any qualifications to run my own café?

There are no specific requirements or qualifications to start a coffee shop, but it is a good idea to learn general business skills. Although you do not have to have a lot of experience, you must have the motivation to learn and grow.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

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Natalie Cusson is a small business owner with over 15 years experience in the creative arts. She's worked on ad campaigns for many trusted brands such as Nike, Subaru, Polaris, Red Bull and Progressive Insurance, just to name a few. Beyond her professional accomplishments, Natalie is driven by her love for writing and research, and is committed to maintaining a growth mindset. Not only is she passionate about learning and growing, she believes in embracing a healthy lifestyle.

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of directors of two non-profit organizations seeking to revitalize her former railroad town. Prior to joining the team at Forbes Advisor, Cassie was a content operations manager and copywriting manager.

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.

Below is an example coffee shop business plan template that will help you write your own coffee shop business plan:

2. Company Overview – Your company overview should include a detailed explanation of the company’s concept, location, products/services offered, customer profile and market size.

3. Industry Analysis – This section involves researching various aspects of the coffee industry such as its size, competitive environment, key players and trends.

4. Customer Analysis – The customer analysis should include a description of your target audience, their needs and how you plan to attract and retain these customers.

5. Competitive Analysis – This should include a description of your competitors, their strengths and weaknesses and how you plan to compete with them.

6. Marketing Plan – Your marketing plan should outline the strategies and tactics for achieving your specific marketing objectives.

7. Operations Plan – This should outline the day-to-day operations of the business, its personnel structure, hierarchy and supplier relationships.

8. Management Team – This section should include a description of the key players in the company, their skills and responsibilities.

9. Financial Plan – The Financial Plan should include your businesses’ financial statements and funding requirements.

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is the easiest way to complete my coffee shop business plan, where can i download a sample coffee shop business plan pdf, what is a coffee shop business plan.

A coffee shop business plan is a formal document that outlines the goals, strategies, and tactics for launching and operating a coffee shop. It describes in detail how the business will operate, including the types of products and services provided, the target market, the proposed location, and the projected financials. It serves as a roadmap for the business and helps to ensure that all aspects of the business are considered and planned for in advance.

It also includes a full financial plan including five year financial projections, your income statement, balance sheet and cash flow statements.

Why Do You Need a Business Plan?

A business plan is an essential document that captures your vision, outlines your market, and provides the financial blueprint for your entire operation.  It is a guide to your overall business planning process and is important for all of these reasons:

1. A business plan sets a clear direction: Perhaps the most significant benefit of having a business plan is that it gives you a clear direction and purpose. It outlines your goals and objectives, how you plan to achieve them, and the timeline and resources required. A well-written business plan also clarifies your target audience and helps you understand their needs and preferences. With a solid business plan, you’ll have a better idea of where to focus your efforts and resources, which can save you time, money, and frustration.

2. Helps secure funding: Opening a coffee shop requires a significant investment in equipment, inventory, rent, and staffing, among other expenses. To secure funding from investors or lenders, a business plan is essential. It demonstrates your knowledge of the industry and market trends, your marketing strategy, financial projections, and how you plan to mitigate risks. A well-thought-out business plan can help convince potential investors that you have a viable idea and are a good investment.

3. Provides a roadmap for growth: A business plan is not just for starting your coffee shop; it’s also essential for long-term success. It’s a roadmap that can help you navigate the ups and downs of running a business. A good plan should contain measurable goals that you can track and adjust as needed. It should also have contingency plans if things don’t go as expected. As your coffee shop grows and evolves, refer to your business plan to ensure that you stay on track and adapt to changing market conditions.

4. Attracts and retains employees: In addition to investors and lenders, your business plan can also help attract and retain employees. A clear business plan shows potential employees what your vision is and what you want to achieve. It also shows them how they can contribute to your success and how you plan to reward them for their efforts. Once you have your team in place, refer to your business plan to ensure everyone is aligned with your goals and objectives.

5. Enhances credibility and professionalism: Finally, a business plan can enhance your credibility and professionalism. It shows that you have thought through your ideas and have a clear plan for how to execute them. This level of detail and preparation can go a long way in building trust with potential investors, lenders, employees, and customers. A well-written business plan can also make you stand out from your competition by demonstrating your attention to detail, industry knowledge, and commitment to success.

What Are the Sources of Funding for a Coffee Shop?

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

The second most common form of funding for a coffee business or cafe is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a coffee shop. They might consider funding a chain, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

COFFEE SHOP BUSINESS PLAN OUTLINE

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

Start Your Coffee Shop Plan Here

Other Helpful Business Plan Articles & Templates

Coffee Shop Business Plan: Understanding the Market Size

Coffee consumption has increased dramatically in recent years, turning coffee shops into hive-like centers of work, socialization, and leisure. Opening a coffee shop can be a thrilling business, but navigating the competitive market demands careful planning. Any effective company plan for a coffee shop must consider the market size.

This article will explore the importance of market size, how it affects coffee shop enterprises, and how you can use this knowledge to propel your own coffee shop to an advantageous position in the coffee industry.

Table of Contents

Defining Market Size

Understanding the market size allows entrepreneurs to assess the demand for coffee in the target area. They can determine if there are sufficient potential customers to support their business and if their preferences align with the proposed offerings. Moreover, analyzing the market size helps entrepreneurs evaluate the purchasing power of the target customers, enabling them to set appropriate pricing strategies and establish realistic revenue projections.

Analyzing the Coffee Shop Market

To grasp the market size of a coffee shop, it is important to conduct thorough market research. Start by assessing the local demographics, including population density, age distribution, income levels, and lifestyle preferences. Consider factors like urbanization, proximity to offices, educational institutions, and tourist attractions, as these influence the potential customer base.

Critical Factors Affecting Market Size

Coffee consumption trends.

Another trend to monitor is the rise in demand for organic options. Health-conscious consumers are seeking coffee that is grown without the use of harmful chemicals and pesticides. Offering organic coffee choices, both in beans and brewed options, allows coffee shops to tap into this growing segment of environmentally and health-conscious customers.

Economic Factors

Economic factors play a significant role in determining the market size and the growth of a coffee shop business. Income levels and disposable income of the target market have a direct impact on the purchasing power of potential customers. Higher-income levels generally translate to a larger customer base with greater spending capacity, potentially leading to a larger market size for the coffee shop.

Social and Cultural Influence

Social and cultural influences play a crucial role in shaping the future of a coffee shop business. It is essential to recognize the unique cultural nuances and social trends prevalent in the specific area where the coffee shop is located. These factors greatly impact the preferences and behaviors of the local population, and understanding them is key to tailoring the coffee shop’s ambiance, menu, and marketing efforts to resonate with the community.

Technological Advancements

Embracing technological advancements is essential for the growth of a coffee shop business in today’s digital age. Utilizing online platforms, mobile apps, and social media can greatly enhance the customer experience and expand the market reach of the coffee shop.

Integrating technology into the coffee shop experience, such as self-service kiosks or contactless payment options, can enhance efficiency and cater to the preferences of tech-savvy customers. These advancements not only improve the overall customer experience but also contribute to a positive brand image.

Utilizing Market Size Information

Location selection, menu development, pricing and promotion strategies.

Evaluate the pricing strategies of competitors and determine the appropriate price points for your offerings. Additionally, use market size insights to create targeted promotional campaigns, loyalty programs, and partnerships that resonate with your customer base.

Expansion Opportunities

Frequently asked questions, q: how do i determine the market size for my coffee shop, q: why is understanding the market size important for my coffee shop business plan, q: what role do economic factors play in determining the market size.

A: Economic factors such as income levels, disposable income, and consumer spending patterns directly impact the market size. Analyzing economic indicators helps gauge the potential profitability and sustainability of your coffee shop, ensuring you cater to the purchasing power of your target customers.

My adventure in coffee began when I first launched my first coffee shop back in the early 2000s. I had to figure out so many things on my own and to make it worse within 2 years of opening two large corporate coffee chains moved in just blocks away from me!

Hence why I started this website you are on now. To provide the tools and resources for up and coming coffee shop owners to gain that vital insight and knowledge on how to start a coffee shop successfully.

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Related posts, best ways to implement sustainable practices in your coffee shop, how to host events at your coffee shop, best coffee shop loyalty programs to implement, infusing style and substance: a blueprint for coffee shop design, infusing comfort and charm: small coffee shop design concepts.

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How to Write a Simple Coffee Shop Business Plan

By team zeller.

A strong business plan is the first step in turning your café dreams into a reality.

There’s nothing better in the morning than the aroma of freshly brewed coffee. The first sip of a good blend, and the friendly banter between coffee shop owners and their customers. Coffee brings people together — it’s the morning and mid-afternoon ritual that inspires ideas and conversations. Opening a coffee shop business is a rewarding venture, however to give your coffee shop business the best chance of success you’ll need more than the right blend. 

So, what does it take to open a coffee shop? It all starts with a business plan.

Preparing to write your coffee shop’s first business plan

Business plans may be one of the most tedious tasks you’ll need to understand when starting your coffee shop business. However, the steps involved in developing your business plan are key stepping stones to running a profitable coffee shop. 

When writing your plan, consider the following: 

• How much will it cost to open a coffee shop? 
• What requirements will you need to fulfill in order to open your coffee shop?
• Where will your customers come from? 
• What will your projected profit and loss be for your first three years? 

With so many technical business plans out there, it’s easy to get overwhelmed by the specifics. Keep reading to discover a simple and practical way to develop your coffee shop’s first business plan.

The essential parts of your simple business plan

A good business plan sets out your objectives and illustrates what strategies you’re going to use to achieve them. To create a sound business plan, there are a few key areas that you’ll need to focus on.

Executive summary

This is an outline of the fundamentals of your business — think of it as an overview of the business, including its structure, size, location, as well as objectives and financial highlights. 

If you’re planning on seeking financial investment or a loan from the bank, your executive summary will likely take some time to get just right. Your executive summary will need to capture a reader’s attention; it’s not unusual for investors to make an initial decision based on the summary alone.  

Market Analysis 

Your market analysis should include a description of your target market, as well as the segments within that market. This will allow you to dig into the specifics of your consumers’ purchasing patterns and identify any factors that may affect coffee consumption (both positive and negative), as well as any gaps in the industry that you can capitalise on. 

Current market analysis shows that the Australian coffee market is comprised of independent coffee shops, which make up 95 percent of the market — meaning larger chains like Starbucks and Gloria Jeans account for just five percent of the market. Its a highly competitive industry, so tailoring your marketing strategy to best position your offering is a fundamental aspect of your coffee shop’s business plan. 

Another factor to consider is that the type of coffee your customers will consume differs, depending on your specific market and location — and, over time, tastes change as new trends emerge. (Think of the unicorn latte art of late, or the coffee/doughnut hybrid trend.) As Bill and Chris Spathis, owners of Melbourne’s Decoy Café  stated : “Back in the 70s, people ordered their coffee so hot it was sacrilegious — but that’s the way most people liked it. There was also far less diversity. At one stage, most people were buying coffee from the supermarket. People are more discerning now. Most are buying their coffees from local roasters.”

Ensuring your market analysis is up-to-date will help your coffee shop tap into current trends and stay on top of the coffee business. 

Competitive Analysis

This section should hone in on your locality and highlight all current competitors, as well as any potential future competitors that might enter the market. If you determine your competitor’s strengths and weaknesses, you will be able to discover opportunities that are present and give your coffee shop an advantage. 

Product line

If you plan on selling specialty coffee, this should be outlined in your business plan — including information about where the coffee beans are sourced, which vendors or partners you will be using for materials, and what your menu will look like. Do you want your business to become known for its affogatos? Or range of milks (and milk alternatives)? 

The products you choose to sell will have a big impact on your profit margins, so choose wisely.  

Marketing Strategy

Now that you’ve done your analysis and know the intricacies of your local market’s coffee scene, it’s time to put the data and insights you have discovered to work and develop your marketing strategy. The strategy you develop will be used for promoting your coffee shop, products, and your business. 

Consider which social media platforms will be best suited to the promotion of your coffee shop and how you will promote your business to foot traffic, as well as which sales data you’ll be tracking and reviewing to determine how well your business is performing. 

One of the most important metrics to keep a close eye on will be your total sales transactions. It’s imperative that you have visibility over not only your daily sales, but also your expenses. A tool such as Zeller Dashboard will show you a real-time comparison of the day’s sales versus sales made on the same day last week, as well as month-on-month comparisons. Having this information handy will prove invaluable when you are revenue forecasting, and developing marketing strategies to meet sales targets. 

Management plan

Creating and sticking to a management plan is a necessary part of growing your coffee shop business. It should include the tools and systems you are going to use to manage your employees, the layout of your team and their responsibilities, as well as staffing costs — including wages, training, and items such as uniforms. 

Financial considerations

Business finances are complex. Outlining your anticipated costs and how you plan to finance your coffee shop will help you in determining the profits you could hope to achieve through your coffee shop. 

Once you have outlined your costs, you can calculate what your projected cash flow will be and work out your business’s break-even point . By calculating your business’s break-even point, you’ll be in a better position to understand the timing between getting paid and paying the business’s bills — helping to keep your business in the black.  

When considering your finances, it is also important to look ahead and include the business’s projected profit and loss for a three-year period.  This will indicate your business’s net profitability as it establishes itself in the market. 

Your legal obligations

There are a few things to consider here. Depending on the type of coffee business you plan on opening — whether it be a coffee cart or shop front — there will be legal obligations you need to meet.  It’s essential that you are clear on these legal obligations from the beginning, otherwise you will hinder your business’s opening and put yourself at risk of financial penalty.  

You’ll need to ensure you obtain the correct industry-specific licences and permits for your coffee shop. Consult a legal expert on these matters, as each licence and the steps towards compliance is specific to your location and business. For instance, a specific licence may be required for the preparation and handling of food and beverages. There are also licences that certify compliance with the appropriate health and safety guidelines, and your business could also have to pass health and safety inspections before it is allowed to open. 

You’ll also need to ensure your coffee shop has the proper insurance coverage, in case of any unforeseen accidents. There are various types of insurance that you should consider, such as: 

• General insurance
• Health insurance
• Public Liability insurance
• Kitchen insurance
• Workers’ compensation

Start-up costs

The cost of opening a coffee shop can be a major hurdle. However, if you work out what costs are associated with establishing the business — that is, what is a necessary cost and what is not — it is an achievable venture. There are five cost factors to take into consideration when planning your business. 

1. Physical space

The location of your coffee shop will be crucial to its success. As a new business, you want to find a location that has a decent amount of foot traffic and visibility from the street — otherwise, you’ll need to invest significantly more money in advertising and signage to attract customers. Consider whether your coffee shop will be a coffee kiosk, a coffee truck, a coffee shop with standing room only, or a sit-down coffee shop. 

When considering the location of your coffee shop, keep social distancing in mind. Once the current measures have been eased, many people will still be weary and likely won’t want to be constricted in tight spaces. Businesses with an outdoor area will be able to swell with demand.

2. Equipment

The equipment you choose to purchase will impact the quality of the coffee you’ll be serving, and the overall experience of your customers. Research the type of equipment that will suit your business’s purposes and determine what you must absolutely have, and what is unnecessary and can wait to be purchased later.

3. Your Menu

Your menu is another major cost to consider. Will you be offering a selection of gourmet coffee, and will you include sweet and savoury treats? The larger your menu selection is, the more you’ll need to invest in materials and produce. You’ll also need to ensure that you have stock on hand to meet demand, otherwise it could impact your customer service if you are underprepared.  

Your market analysis research will come in handy in determining which items to add to your menu, as well as ensuring you are up-to-date with market trends and providing your customers what they want. 

4. Staffing

Staffing costs need to be worked out from the get-go, and should form part of your business plan. Consider the technology needed to assist with employee management and payroll, training costs, penalty and overtime rates, as well as any benefits and superannuation contributions. 

You’ll want to ensure you hire trained baristas, who know how to pour the perfect cup. 

5. Marketing

How will you get the word out about your newly-opened coffee shop? As with any new business, there will be marketing costs associated with opening up; flyers, social media ads, and signage are all worth considering.  

What out-of-the-box ideas do you have for attracting new customers? Will you be offering a discount to people who check in and share your social media post on their own feed, for example? This will cost money, as it eats into your projected profits, so you’ll need to factor in a limit. Will it be for the first 50 customers, or for the first day only? 

Whatever marketing you decide to go with, you’ll need to budget it into your costs. Adopting a ‘test and learn’ approach will help you measure the impact different types of marketing has on your sales and investment, and understand what works (and what doesn’t) with your local customers.

How will you take payments at your coffee shop?

People are generally in a hurry when getting their morning and afternoon caffeine fix, and don’t like waiting too long. Your coffee shop needs to offer fast and efficient service and be able to deal with the busy periods as efficiently as possible. 

Taking payments quickly and managing customer flow is crucial to the overall customer experience. Long lines due to a slow payment system can impact customers’ perception and lead to a loss of business if people are inconvenienced with the payment process. 

What your business needs is to ensure fast and convenient service with A payment terminal such as Zeller Terminal , which offers tap and go payments, ensures fast and convenient service. Your customers can tap their watch or smartphone to the terminal, with no need to pull out their wallet. Zeller Terminal is also fully mobile, and can be taken anywhere — making it handy for all types of coffee shop businesses.

Ready to get started with Zeller?

Ensuring your coffee shop is a financial success.

Opening a coffee shop can be a profitable venture, with the right planning and equipment. Walk past any busy coffee shop, and you’ll see it buzzing with customers enjoying their coffee, sipping on tea, and nibbling on pastries and other treats. 

The success of your business will be dependent on how closely you watch over your operations, track profits and keep on top of businesses expenses. The average coffee shop’s profit margin is around five to eight percent , similar to casual food establishments. This means that it’s likely you’ll only keep five to eight cents of every dollar you make once, you’ve factored in all your business expenses. 

It’s important to note that most coffee shop businesses that fail do so due to financial issues caused by a lack of planning — not bad coffee. Choosing the right payments provider is one of the most crucial decisions you’ll make. Zeller Terminal accepts every tapped, dipped, or swiped payment for just 1.4% — which can easily be passed to the customer, with the flick of a switch. By minimising your transaction costs, you’ll ensure more money stays in your business.

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To Buy or Build Your Drive-Thru Structure... That is the Question.

When it comes to opening a coffee drive-thru business, how will you acquire your building? Up until now, there have only been two basic options:

• Buy a prefabricated building, and have it transported to your site - or,
• Attempt to design and construct your own building.

However, both of these options can present some challenges.

Table of Contents

Considering a prefabricated building.

• What will this building cost to purchase?
• Will the manufacturer supply you with detailed plans related to the site preparation?
• How much will you pay for the transport of the unit?
• Will your local bureaucracies allow you to use a building that was constructed outside of your area?
• Will the construction techniques & materials used meet the standards required by your local bureaucracy?
• If the building does not come with equipment, then how will you know what to buy?
• If the building comes equipped, what equipment has been chosen?
• Who designed the building?
• Will the pre-fab building you may be considering, be set up to accommodate the demands of your market?
• Will the pre-fab unit you may be considering allow you to express your vision of the unique and eye catching exterior?

Designing & Constructing Your Own Building

• Who's going to design your building?
• How will you know which coffee & food service equipment to buy?
• What will you spend on architectural services?
• How much can you trust your contractor?

Using Our Plans to Construct Your Building

• Our plans are designed by a coffee business design professional.
• Our plans will create a drive-thru building with impressive structural integrity, which will meet or exceed most bureaucratic requirements.
• Our plans will provide your contractor with all the information necessary to facilitate construction.
• Our plans will specify all coffee and foodservice equipment/fixtures for you.
• Our plans can help you economize the price of construction.
• Our plans will allow you to create your own unique, exterior look.

Before considering buying a prefabricated building from a manufacturer, and then having it transported to your site, there are some important factors to consider.

How much will you be paying in profit to the manufacturer? - and, while no one denies the right of the manufacturer to make a profit for their efforts, realize that in some cases this may be $25,000 to $50,000 or more. Wouldn't you be better off starting your new business with this money in your bank account? Also, realize that in almost all cases you will be the one bearing the expense to bring utilities to the site, and to provide the necessary foundation and other features of site development. So remember, when considering the expense of a prefab unit, you are usually only buying a building.

With current gas prices, transporting a structure half way across the county won't be cheap, and will you need to rent a crane & operator to move you building from the transport vehicle onto its foundation? What will this cost?

It's not uncommon for bureaucracies to require that construction, or portions of construction (such as electrical), be facilitated by state licensed contractors only. We know of instances where buyers of prefabricated buildings have had to hire local craftsman to travel to the building manufacturer's site to facilitate a portion of construction to meet the local requirements. They not only had to pay these craftsman their normal hourly rate, but also pay for their travel time, airfare, hotel, and meals. These out of pocket expenses were in addition to the purchase price of the unit.

Also, what happens if you have taken delivery of your building before you find out it's unnacceptable to your local bureaucracy?

If your local codes require special provisions for hurricanes, tornados, earthquakes, or significant snow loads, will the prefabricated unit you may be considering meet those standards?

What brands should you purchase? Will they fit into the spaces provided? Will the electrical outlets supplied provide sufficient voltage/amperage for the equipment you have selected?

Are they of top quality, and will they be sufficient for your needs? We've seen pre-fab units with sinks that were too small to accommodate items in need of cleaning, and the espresso machine chosen would not allow for the placement of paper cups directly under the groups, etc. Also, is the building manufacturer making an additional profit on the equipment they are providing?

While any equipment layout may seem acceptable to the inexperienced operator, any shortcomings in design will not be realized until you are actually open for business. If the placement of equipment and fixtures do not promote an efficient flow, then speed in preparing beverages will be impaired, and valuable revenue will be lost. Remember, those driving by may decide to not stop to purchase a drink, if there are an excessive number of vehicles waiting in line. Speed in preparing beverages is critical, and a good layout is essential to this goal.

If you live in a warm weather climate, does the unit have substantial blended drink capacity? -a granita machine? - room for an ice maker that will produce a significant amount of ice? If you are in a cold weather climate, or in a location that will produce significant volume, will the unit accommodate a 3 group espresso machine? - a dual air pot coffee brewer? And, if you are in high volume location, will the unit permit 3 or 4 employees to work efficiently, without a conflict of working space?

Standing out in a crowd (or a crowded parking lot) is important factor in being recognized! Will you be able to create a "visual splash" with your building, or will you be confined to decisions made by the manufacturer?

Before designing and building your own drive-thru structure, here are some important considerations to think about:

While a drive-thru building may be small, and seem simple, there are hundreds of decisions to be made, and details to be addressed. Interior layout is critical to the efficiency, and thus the income potential of your business. A less than optimal layout will slow down beverage production, increase the number of cars waiting to order, and as a result, discourage passing motorists from stopping to make a purchase. An intimate understanding of how things work and flow in a drive-thru operation is critical! Also, while the structure may appear to be simple, it will involve extensive electrical, plumbing, HVAC, storage, and food service code requirements. Will you or your contractor understand which pieces of equipment will require special plumbing or electrical? Will you be able to design a building that will meet ADA standards? Will you provide enough refrigerated, dry, and paper goods storage to get you through a week, or at least several busy days of business?

While designing your drive-thru, you will need to make important decisions related to the equipment it will contain. What brands and models should you purchase? Will they allow you to produce your intended menu? Is the equipment sufficient for your expected level of business volume? Will the equipment be acceptable to your local health department? Will the equipment be easy for your employees to understand and use?

You will more than likely have to provide detailed construction drawings to your local bureaucracies. What will it cost you to have the following drawings produced: floor plan w/ equipment ID, floor plan w/ critical dimensions, foundation plan, electrical plan, plumbing plan, HVAC plan, interior elevations, exterior elevations, roof truss drawings, construction notes & details, etc. And, if you don't design the perfect building on the first attempt, what will it cost you in architectural revisions?

When you select a contractor to build your design, will they possess the expertise necessary in building food service establishments? Will they understand the plumbing and storage issues required by your local health department? Will they know which wall mounted storage shelves will be designated to hold significant weight, and will they they make provisions for secure anchor points for those shelves during the framing of the building? Will they understand which pieces of equipment will require special water filtration or manipulation, and how to plumb for those needs? While any competent contractor can follow a set of concise blue prints, without all features and requirements being specified, and with a limited knowledge of food service requirements, costly and potentially devastating mistakes can be made.

We believe that the best option for acquiring a drive-thru structure for your coffee business, is having a contractor build it for you using our plans. Here are the advantages:

While there are a number of people you can hire to design a coffee drive-thru building, few have actually worked in one preparing drinks, and waiting on customers. From this valuable and irreplaceable experience, we've created designs that allow for maximum productivity, with minimal effort. We have also corrected or eliminated the commonly seen design mistakes and shortcomings experienced in many prefabricated, or "owner designed" structures.

In essence, our plans specify materials and construction techniques which will result in a building of uncompromising integrity and durability. All exterior walls are specified to be double sheeted with OSB, creating shear walls of significant strength. Owners should possess peace of mind in knowing that their building will provide them, and their employees, with protection from high winds, seismic activity, and substantial snow loads. Designed to be ADA compliant, and to meet the standards of the most stringent health departments, layouts and equipment selected should meet or exceed the standards set by the vast majority of state & local bureaucracies.

Drawings included are:

• Equipment/Fixture Identification Floor Plan
• Critical Dimensions Floor Plan
• Foundation Plan
• Plumbing Plan
• Electrical Plan
• Exterior Elevations with Construction Details
• Interior Elevations
• HVAC (heating, ventilation, & air conditioning) Plan
• Cabinet Details
• Roof Framing Plan
• Conceptual Exterior Design Ideas

Note: Some local architectural services may still be required to produce a "site plan", and to make adjustments to our drive-thru plans if the specifications or construction techniques shown differ from your local codes. CAD files can be provided (no extra charge) for your architect so that modifications can be made as quickly and economically as possible.

We will specify all equipment by manufacturer and model number, and will also provide you with a highly respected and competitive source for purchasing that equipment. The equipment we have selected is in essence, the "Toyota" of equipment. Equipment is from long established reputable manufacturers, with extensive service networks. Purchasing equipment will be as easy as picking up the phone, or sending the included equipment list by e-mail.

Two of our designs, (the "Basic" and the "Classic"), call for no or minimal costly custom cabinetry. Work top refrigerators, and stainless steel work tables are used extensively to serve as the counter tops for equipment. At $500 to $1,000 per linear foot for custom cabinetry, eliminating or reducing the amount needed, will result in substantial savings.

Because you are constructing your own building, you can make decisions about themes, colors, materials, awnings & facades. We will supply you with 12 artistic, color renderings of different exterior design options. Have your contractor pattern your structure after one of our designs, or create your own.

Copyright © E & C Consulting | All Rights Reserved

Business Plan for Coffee Hut: Description of Industry, Offered Products, Marketing Activities, and Tuckman's Stages of Team Development

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Residents share feedback with city officials at Coffee with Planners event

RAPID CITY, S.D. (KOTA) - Rapid City hosted Coffee with Planners and invited the public to eat and discuss the future of the city.

The meeting covered three topics: The Comprehensive Plan, the Transportation Improvement Plan, and Code Enforcement. Participants were divided into three groups and invited to participate in 20-minute working sessions with each topic.

The Comprehensive Plan working session discussed ways the city could improve residential and business development. A common thread throughout these discussions was finding a way to integrate residential and business development areas to make the community more walkable.

One attendee was passionate about making the Rapid City community safer for bicyclists.

”It’s very expensive for a city to build just for car dependency, and that’s why I was here, both for the comprehensive plan and for the Transportation Improvement Plan. I want the city to more than just accommodate cycling and walking, I want them to prioritize it,” Adrian Epp explained.

Epp also explained he believes building these multimodal communities is important to incentivize people to ride their bikes or walk to a destination.

The Code Enforcement working group discussed what the code enforcement team in Rapid City does and how the community can help city officials stay on top of the code violations. One of those suggestions was for citizens to file complaints about violations so that the code enforcement team could assist as soon as possible.

The Travel Improvement Plan working group discussed several projects that will affect travel in the Rapid City area over the next few years. A key update the group discussed was making reduced conflict intersections near Reptile Gardens modeled after Minnesota.

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Copyright 2024 KOTA. All rights reserved.

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• The No.1 reason for success in China? Connections

People are starting to blame inequality on the system, not idleness

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C hina’s ancient thinkers knew about the dangers of inequality. “Rulers need not worry about scarcity, but unevenness,” said the “Analects”, a collection of sayings attributed to Confucius, a philosopher of the 6th and 5th centuries BC . China’s leader, Xi Jinping, uses the language of Mao Zedong, but the message is the same. He calls for “common prosperity”, warning that in the West, wealth gaps have caused dangerous social divisions.

In China, the gap between rich and poor rose sharply in the 1990s before levelling off, official data show. Research led by two American scholars of China, Scott Rozelle and Martin Whyte, found that people accepted this, remaining optimistic about their chances of improving their own lot. But their latest findings paint a different picture. Public misgivings about inequality are growing. People are blaming the economic system.

The academics conducted surveys in China in 2004 and 2009, before Mr Xi came to power, and in 2014 and 2023, during his rule. Sample sizes ranged from less than 3,000 in 2009 to over 30,000 in 2023. In 2004 respondents named ability and education as the most important enablers of wealth in China. But by 2023 these factors had dropped to 4th and 7th places among reasons cited for getting rich. Instead, those surveyed said that being well-connected and growing up rich were more important (see chart 1). When asked why people were poor, respondents pointed to lack of ability and effort in 2004, but to unequal opportunities and unfairness in 2023.

The poor have been hit hardest by the faltering economy. In 2023 nearly one-third of respondents who earn less than 50,000 yuan ($6,900) per year said their households were poorer than five years earlier, compared with only one-fifth of those who made over 100,000 yuan. But gloom about the economy is pervasive. In 2023 more people than ever, from all income groups, reported being worse off (see chart 2).

The cause of this changing mood is China’s slowing economy. In the 1980s Deng Xiaoping, then China’s leader, declared that some could “get rich first” and others later. But the surveys show that, as economic opportunities dry up, faith in trickle-down economics is tested. For China’s leaders, this may have worrying implications. They have used economic growth as a way of demonstrating the Communist Party’s right to rule.

Could this lead to large-scale unrest? China Labour Bulletin, a Hong Kong-based NGO , logged almost 1,800 protests by workers in 2023, more than double the number in 2022. But these are small and scattered. Messrs Rozelle and Whyte do not expect discontent to explode soon. People have “not become overwhelmingly negative and pessimistic”, they write. Mr Xi has a mighty security apparatus. But he must hope the scholars are correct. ■

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This article appeared in the China section of the print edition under the headline “The big divide”

China July 20th 2024

• Xi Jinping is trying to love-bomb China’s entrepreneurs
• Fury erupts in China over a food-safety scandal
• A spectre looms over Hong Kong’s property market
• When party propaganda falls flat

From the July 20th 2024 edition

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