budget for coffee shop business plan

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.

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Planning to open a coffee shop here's how much you should spend..

How much does it cost to open a coffee shop business ? What are the main expenses? Can we still do it with a low budget? Which expenses are unnecessary?

This guide will provide you with essential information to assess how much it really takes to embark on this journey.

And if you need more detailed information please check our business plan for a coffee shop and financial plan for a coffee shop .

How much does it cost to open a coffee shop?

What is the average budget.

Opening a coffee shop typically involves an investment ranging from $20,000 to $400,000 or more.

Let's explore the key factors influencing this budget.

Location is crucial for a coffee shop. Rent in a high-traffic urban area will be much higher than in a suburban setting. Prime locations in city centers or near tourist attractions can significantly increase costs.

The quality and type of coffee-making equipment are major expenses. Basic espresso machines and grinders might be more affordable, but high-end or specialty coffee equipment can be quite pricey. For instance, a commercial espresso machine could cost between $6,000 and $30,000.

When considering the budget per square meter, expect to spend about $1,200 to $6,000 per sqm for a coffee shop space, depending on the location and the extent of renovations needed.

Interior design and renovations can also demand a substantial budget. Minimalist designs may require less investment, while a more elaborate, custom-designed space could run into tens of thousands of dollars.

Acquiring the necessary permits and licenses can vary in cost based on location and regulations but generally range from a few hundred to several thousand dollars.

Initial inventory, including coffee beans, milk, and other supplies, will depend on your menu and size but could range from a few thousand to tens of thousands of dollars.

Marketing expenses, crucial for attracting customers, can also impact your budget. Allocate a few thousand dollars for branding, signage, and advertising efforts.

Is it possible to open a coffee shop with minimal funds?

While some investment is necessary, starting a coffee shop on a tight budget is feasible.

For a minimal investment, consider beginning with a small or home-based coffee shop, subject to local regulations. Operating from home saves on rent.

Start with essential equipment, such as a basic espresso machine and grinder, which might cost around $2,000 to $8,000.

Minimal renovations may be required for a home setup, potentially costing a few hundred to a few thousand dollars.

Keep the menu simple, focusing on popular coffee drinks and perhaps some pastries or snacks to limit initial inventory costs.

Utilize low-cost marketing strategies like social media, word-of-mouth, and modest branding materials. Budget several hundred dollars for online ads and basic branding.

In this scenario, the initial investment could range from $5,000 to $20,000.

Keep in mind, a smaller-scale operation might limit growth potential and production capacity. As your coffee shop business expands, you can reinvest profits for improvement and growth.

Finally, if you want to determine your exact starting budget, along with a comprehensive list of expenses customized to your project, you can use the financial plan for a coffee shop .

What are the expenses to open a coffee shop?

Please note that you can access a detailed breakdown of all these expenses and also customize them for your own project in the financial plan for a coffee shop .

The expenses related to the location of your coffee shop

For a coffee shop, finding a location with significant foot traffic is key. Ideal spots include busy urban areas, near offices, educational institutions, or within bustling shopping districts. Observing the area at various times provides insight into the potential customer base.

Visibility and accessibility for both pedestrians and drivers are important. Look for locations with excellent signage potential and easy access from main roads. Considerations for parking availability and proximity to public transport are also crucial.

Also, factor in the convenience of receiving supplies and deliveries. Being close to suppliers and storage facilities can help minimize operational costs.

If you decide to rent the space for your coffee shop

Estimated budget: between $3,500 and $12,000

Leasing a space for your coffee shop entails upfront costs like security deposits and possibly the first month's rent.

Most leases require a security deposit, typically one or two months' rent, to cover potential damages or rent defaults. This is usually refundable. If your monthly rent is $1,200, expect to pay around $2,400 initially for the deposit and first month's rent. Then budget for the next three months' rent, totaling $3,600.

Understanding the lease terms is crucial. Consider hiring a lawyer to review the lease agreement, which can cost between $500 and $1,200.

Real estate broker fees, if applicable, are usually covered by the landlord or property owner.

If you decide to buy the space for your coffee shop

Estimated budget: between $150,000 and $700,000

The property cost varies based on size, location, condition, and market trends. Prices can range from $75,000 in smaller towns to $650,000 in major urban areas.

Consider closing costs, such as legal fees, title searches, and loan origination fees, typically ranging from $7,000 to $25,000.

Renovation costs should also be considered. Budgeting 10-20% of the purchase price, or about $15,000 to $140,000, for necessary modifications is advisable.

Professional property assessment costs may range from $1,000 to $5,000.

Property taxes vary significantly by location, usually 5% to 15% of the property's value annually, equating to about $7,500 to $105,000.

Property insurance costs also vary, typically ranging from $250 to $2,500 per month.

Is it better to rent or to buy a physical space when you open a coffee shop?

Renting offers lower initial costs, flexibility, and less maintenance responsibility, but may involve rising rents and less stability. Buying brings ownership, predictable payments, and tax benefits, but requires a higher initial investment and ongoing maintenance.

The decision should be based on your financial situation, long-term objectives, and the local real estate market.

Here is a summary table for reference.

Equipments, furniture and interior design

Estimated Budget: at least $60,000

The heart of your coffee shop is the espresso machine. This is a vital investment, as the quality of your coffee depends significantly on it.

Commercial espresso machines, essential for crafting high-quality coffee, can cost between $5,000 to $20,000. The price varies based on capacity, features, and brand reputation. A good grinder is also crucial for fresh coffee and can range from $500 to $2,500.

If your budget allows, investing in a top-tier espresso machine and grinder is advisable. This not only ensures the quality of your coffee but also adds to the efficiency and speed of service.

Seating and ambiance play a significant role in a coffee shop. Comfortable and durable furniture is key. Budget around $10,000 to $15,000 for chairs, tables, and lounge seating. The cost can fluctuate based on style and quality.

For food offerings, a small convection oven and a refrigerated display case are essential. A convection oven, for pastries and small bites, may cost between $3,000 and $7,000. Refrigerated display cases for showcasing food items can range from $1,000 to $5,000.

A commercial-grade refrigerator and freezer for ingredient storage are necessary. Expect to spend $2,000 to $8,000 for a refrigerator and $2,000 to $7,000 for a freezer, depending on size and features.

For additional beverage options, consider a commercial blender for smoothies and frappes, which can cost between $200 to $1,000.

When it comes to prioritizing your budget, the espresso machine and grinder should be your top investment, as they directly affect the quality and reputation of your coffee.

Choose high-quality, reliable furniture to create a welcoming atmosphere for customers. This is essential for encouraging repeat visits and longer stays.

For the convection oven, refrigerator, and display cases, mid-range options often offer the best balance between cost and quality. Avoid the cheapest options as they may incur higher maintenance costs.

Remember, starting a coffee shop is about balancing your initial investment with the need for quality equipment and a pleasant customer experience. It's often wise to start with essential, high-quality items and expand your inventory as your business grows.

Initial Inventory

Estimated Budget: from $15,000 to $35,000

For a new coffee shop, your initial inventory budget should typically range from $15,000 to $35,000. This amount can vary depending on the size of your coffee shop and the variety of coffee blends and other products you intend to offer.

The essential inventory for a coffee shop includes a variety of coffee beans, tea leaves, and other beverage ingredients.

Key items are different types of coffee beans (e.g., Arabica, Robusta), teas, milk, sugar, syrups, and flavorings. You might also want to include specialty items like organic or fair-trade coffee, herbal teas, and alternative milk options to cater to diverse customer preferences.

Other necessary supplies include coffee grinders, espresso machines, filters, cups, lids, stirrers, and napkins. Don’t forget about storage containers for fresh coffee beans and ingredients.

When it comes to choosing suppliers, consider a mix of well-known brands for consistency and local roasters for unique blends and fresh beans. While popular brands can provide reliable quality for basic ingredients, local suppliers can add a unique touch to your coffee shop’s offerings.

Choosing inventory for your coffee shop involves considering the quality of the coffee beans, the variety of products, supplier reliability, and customer tastes.

High-quality beans are crucial as they significantly affect the taste of the coffee, directly impacting customer satisfaction. Consider the shelf life of beans and store them properly to maintain their freshness.

Negotiating with suppliers is vital. Establish good relationships with them, consider bulk purchases for non-perishable items like sugar or syrups, and pay on time to get better deals and discounts. However, be cautious with bulk orders of perishable items like milk.

It’s advisable to buy non-perishable items in larger quantities, but perishables should be ordered based on realistic sales projections.

Efficient inventory management is essential to minimize waste and control costs. Regularly review your stock, track your best-selling items, and adjust orders accordingly. Implementing FIFO (first-in, first-out) ensures older stock is used before fresher stock, reducing the risk of spoilage.

Remember, successful inventory management in a coffee shop is about maintaining the quality of your beverages while running your operations efficiently.

Marketing, Branding and Communication

Estimated Budget: $6,000 to $12,000 for the first months of operation

For a coffee shop, branding, marketing, and communication are essential ingredients in the recipe for success.

Branding in a coffee shop is not just about your logo or the color scheme of your interior. It encompasses the entire experience - from the aroma of freshly ground coffee that welcomes customers, to the cozy ambiance of your seating area, and the unique taste of your signature blends.

Do you envision your coffee shop as a community hub with a bohemian flair, or a sleek, modern retreat for busy professionals? This vision should be reflected in everything from the design of your cups to the playlist setting the mood.

Marketing is your way of broadcasting the unique experience your coffee shop offers. It's a common misconception that customers will simply find you. In a world teeming with cafes and espresso bars, your voice needs to be heard. Effective marketing can transform your coffee shop into a local landmark.

For a coffee shop, effective marketing might involve engaging Instagram stories featuring your baristas at work, or tweets highlighting your latest seasonal special. Don't underestimate the power of local SEO - when someone searches for the "best espresso near me," you want your shop to be the top result.

However, avoid overspending on broad, national campaigns. Your primary audience is the local community, not far-off cities.

Communication in a coffee shop is like the perfect foam on a cappuccino. It's the warm greetings, the knowledgeable baristas sharing insights about different roasts, and the personalized notes in online orders. Great communication fosters a community of regulars who come for the coffee but stay for the connection.

When it comes to your marketing budget, a coffee shop typically allocates about 3% to 12% of its revenue. Starting at the lower end is a prudent approach for a new business.

Your budget should be carefully distributed. Invest in high-quality photos for your social media, an inviting website, and maybe some local community events like coffee tasting sessions or sponsoring a local art exhibit. Flyers and business cards placed in neighboring businesses can also be effective.

Adjust your budget as needed. You might spend more at the beginning for a memorable opening event, then find a more sustainable monthly expenditure. Pay attention to what works best - if your clientele is active on Facebook, for instance, direct more funds there.

Staffing and Management

Estimated Budget: $12,000 - $25,000 for the first month

When opening a coffee shop, the staffing and management expenses are vital components of your initial budget. These costs depend on the size of your coffee shop, the variety of coffee and food items offered, and the operating hours.

Let's delve into the specifics.

Running a coffee shop solo is feasible, but it's a demanding task. This business requires early mornings for preparation, consistent customer service throughout the day, and handling various administrative tasks. Hiring a team, even a small one, is often necessary to manage these demands effectively and maintain a healthy work-life balance.

Essential roles in a coffee shop include a barista, skilled in coffee preparation and customer service, and a kitchen staff member if you're offering food items. A front-of-house person is also crucial to manage orders and ensure customer satisfaction. These positions are critical from the outset to guarantee the quality of your coffee and service.

As your coffee shop grows, consider adding roles like a shop manager, marketing specialist, or additional baristas and kitchen staff. These positions can be filled as you better understand your business's needs, usually a few months post-launch.

Staff should be paid from their start date. Delaying wages until after the first month can lead to employee dissatisfaction and high turnover rates.

Beyond salaries, factor in additional costs such as taxes, insurance, and benefits, which can add 25-35% more to the base salaries.

Training is crucial in the coffee industry. Allocate funds for teaching your staff in areas like coffee-making techniques, food safety, and customer service. This investment not only enhances the quality of your offerings but also contributes to your coffee shop's long-term success. Budgeting a few hundred to a few thousand dollars for training, depending on its scope, is advisable.

Professional Services

Starting with a lawyer, for a coffee shop, the focus extends beyond general business setup.

A lawyer can guide you through regulations unique to the coffee industry, like health standards for serving beverages and food items, if applicable. They're also instrumental in negotiating leases for your coffee shop location, ensuring clauses are included for customer seating arrangements and potential modifications for coffee machines and grinders. Expect to pay around $1,500 to $4,000 initially, depending on their expertise and your location.

Coffee shop consultants are invaluable for newcomers to the café world.

They offer insights into selecting the best coffee beans, equipment procurement, barista training, and even help in crafting a standout menu. Their rates might range from $50 to $200 per hour, based on their level of specialization in the coffee industry.

Bank services for a coffee shop are crucial for managing finances, from business accounts to loans for purchasing high-quality coffee machines or renovating your space. They also help set up efficient payment systems, crucial for a fast-paced environment where customers often pay electronically. Costs will vary based on the services and loan terms you choose.

Insurance for a coffee shop should cover risks specific to the industry, like equipment damage or customer injury within the premises. Liability insurance is also essential, given the potential for spills or burns. Annual insurance costs might range from $1,500 to $4,500, depending on your coverage needs.

Moreover, a coffee shop must adhere to health and safety standards, which involve periodic inspections and possible equipment upgrades to meet evolving regulations. This ongoing expense is critical for maintaining your coffee shop’s legal compliance and reputation for safety and quality.

Ongoing Emergency Funds

Estimated Budget: $15,000 to $75,000

When you're opening a coffee shop, having an emergency fund is absolutely crucial.

It's like having a safety net when you venture into the world of coffee; you hope you won't need it, but it's essential for your peace of mind and security.

The amount you should set aside can vary, but a common rule of thumb is to have enough to cover at least 3 to 6 months of your operating expenses. This typically translates into a range of $15,000 to $75,000, depending on the size and scale of your coffee shop.

Remember, these figures can fluctuate based on your location, rent, utilities, barista salaries, and the cost of quality coffee beans and supplies.

One of the main reasons you need this fund is the unpredictability of cash flow in the coffee shop business. For example, you might face a sudden increase in the price of essential coffee beans or an unexpected repair cost for your espresso machines, which can be quite expensive. These situations can significantly impact your cash flow if you're not prepared.

To avoid these potential disasters, it's wise to not only have an emergency fund but also to manage your inventory efficiently.

Overstocking can lead to waste, especially with perishable goods like pastries and fresh milk, while understocking can lead to disappointed customers and lost sales. Regularly reviewing and adjusting your inventory based on customer preferences and seasonal trends can help you avoid these pitfalls.

Additionally, building strong relationships with your coffee bean suppliers and local dairy providers can be a lifesaver. Sometimes, they might be willing to extend flexible payment terms if you're in a tight spot, which can ease cash flow challenges in the coffee shop industry.

Another key aspect is to keep a close eye on your finances. Regularly reviewing your financial statements helps you spot trends and address issues before they become major problems in your coffee shop operation.

It's also a good idea to diversify your menu offerings. For instance, if you're primarily focused on coffee, consider offering a variety of baked goods, sandwiches, or specialty drinks to increase your revenue potential.

Lastly, never underestimate the power of excellent customer service and community engagement. Satisfied customers are more likely to become regular patrons, and they can provide a stable source of revenue through word-of-mouth recommendations and repeat visits.

Franchise Fees

Estimated Budget: $25,000 to $60,000

Only if you decide to join a coffee shop franchise!

On average, you might expect to pay anywhere from $25,000 to $60,000 in franchise fees for a coffee shop. However, these figures can vary depending on the brand's popularity, market position, and the support they provide.

The franchise fee is usually a one-time payment. This fee is paid to the franchisor to "buy into" the franchise, granting you the license to operate under their brand and access their business model, training, and support systems. Keep in mind that this is not the only financial commitment. There are ongoing costs such as royalty fees, marketing fees, and other operational expenses.

Coffee shop franchises may structure their fees differently. Some might have higher upfront fees but lower ongoing costs, while others may follow the opposite approach.

Unfortunately, negotiating the franchise fee is not common, as these fees are typically standardized across all franchisees of a particular brand.

However, there might be some room for negotiation in other aspects of the franchise agreement, such as the contract's duration or specific terms and conditions. Engaging with a franchise attorney or consultant can be beneficial in understanding and negotiating these terms.

As for the time it takes to recoup your investment and start making a profit, this varies widely. It depends on factors such as the location of your coffee shop, how well the brand is received in your area, your business skills, and the overall market conditions. Typically, it could take anywhere from a few years to several years to see a profitable return on your investment in a coffee shop franchise.

Which expenses can be cut for a coffee shop business?

Managing your expenses wisely is crucial for the long-term success of your coffee shop.

Some costs can be unnecessary, others may be overspent on, and certain expenses can be delayed until your coffee shop is more established.

First and foremost, let's talk about unnecessary costs.

A common mistake coffee shop owners make is spending too much on high-end coffee machines and premium coffee beans right from the start. While quality is important, it's more practical to begin with a good, reliable coffee machine and a selection of quality, but not overly expensive, beans. This way, you can still provide excellent coffee without overextending your budget.

In terms of marketing, avoid expensive traditional advertising methods. In the digital age, cost-effective digital marketing strategies are more efficient. Use social media, create an engaging website, and employ email marketing to reach your audience effectively and affordably.

Now, let's discuss expenses that coffee shop owners often overspend on.

Overstocking on inventory is a common pitfall. It's crucial to find the right balance to avoid wastage and excess. Start with a smaller menu and gradually expand based on customer feedback and demand. This approach also aids in managing your working capital more effectively.

Be cautious with hiring. Begin with a core team and hire more staff as your customer base grows. Overstaffing can lead to unnecessary labor costs, especially during initial lean periods.

When it comes to delaying expenses, consider holding off on major renovations or expansions. Expanding or renovating your space too early can strain your finances. Wait until your business has a stable income stream.

Finally, delay the purchase of specialized coffee equipment. Start with essential tools and gradually invest in more advanced equipment as your operations grow and customer preferences become clearer. This strategy allows for more efficient fund allocation and adaptation to market trends.

Examples of startup budgets for coffee shopes

To help you visualize better, let's break down the budget for three different types of coffee shops: a small coffee shop in a rural area with second-hand equipment, a regular coffee shop serving a variety of beverages and snacks, and a high-end, spacious coffee shop with top-tier equipment.

Small Coffee Shop in a Rural Area with Second-Hand Equipment

Total Budget Estimate: $20,000 - $40,000

Regular Coffee Shop Serving Beverages and Snacks

Total Budget Estimate: $40,000 - $80,000

High-End, Spacious Coffee Shop with Top-Tier Equipment

Total Budget Estimate: $80,000 - $150,000

How to secure enough funding to open a coffee shop?

Securing adequate funding is a critical step in establishing a successful coffee shop. Typically, owners of coffee shops rely on personal savings, bank loans, and occasionally contributions from family and friends for their startup capital.

This preference is due to coffee shops being small to medium-sized ventures, which generally do not attract larger investors like venture capitalists, who are more interested in high-growth, scalable businesses. Furthermore, while grants exist for various purposes, they are less frequent in the food and hospitality industry, especially for a business model like a coffee shop, which often does not align with the typical focus areas of grant programs.

When it comes to securing a loan from a bank or attracting investors, a comprehensive business plan is vital. This plan should encompass a detailed financial projection, a thorough market analysis, your unique selling proposition (what makes your coffee shop unique), and an operational plan.

Demonstrating a deep understanding of your target market and having a clear path to profitability is crucial. Lenders and investors are keen to see that you have a solid grasp of the business’s finances, including projected revenues, expenses, and cash flow.

They also value evidence of your commitment and capability to run the business effectively, which can be demonstrated through your experience or through partnerships with individuals experienced in the coffee shop or broader hospitality industry.

Regarding the percentage of the total startup budget you should contribute, it generally varies. It is often favorable to have some personal investment in the project, typically around 20-30%, as it demonstrates your commitment. However, personal funds are not always a necessity. If you can convincingly demonstrate the viability of your business and your ability to repay a loan, you may be able to secure funding without significant personal financial input.

The timing of securing your funds is also crucial. Ideally, you should aim to obtain financing around 6 months before opening. This period allows adequate time to set up your coffee shop, purchase equipment, hire staff, and cover other pre-launch expenses. It also provides a cushion to address any unforeseen challenges that might arise.

Expecting to be cash flow positive from the first month of operations is generally optimistic. Most new businesses, including coffee shops, take some time to reach profitability. Therefore, it is wise to allocate a portion of your initial funding to cover operating expenses for the first few months. A common strategy is to reserve about 20-25% of your total startup budget as working capital to manage cash flow until the business becomes self-sustaining.

You might also want to read our dedicated article related to the profitability of a coffee shop business .

How to use the financial plan for your coffee shop?

Many coffee shop entrepreneurs struggle to effectively communicate their business vision to investors, often presenting unorganized and unconvincing financial arguments with amateurish financial documents.

If your goal is to turn your vision of owning a coffee shop into a reality, it's essential to secure the necessary funding. This requires building trust and confidence with potential investors or lenders.

The key to achieving this is by presenting a professional and comprehensive business and financial plan.

Understanding this need, we have crafted an easy-to-use financial plan, tailored specifically for coffee shop business models. It includes financial projections for a three-year period.

This plan covers all vital financial aspects, including an income statement, cash flow statement, break-even analysis, and a provisional balance sheet, complete with pre-filled data that covers a wide range of expenses relevant to a coffee shop. You can easily adjust the figures to fit your specific project requirements.

Our financial plan is designed to be compatible with loan applications and is beginner-friendly, offering full guidance. It requires no previous financial expertise. All calculations and cell modifications are automated, allowing you to simply input information and make selections. We've streamlined the process to ensure it's user-friendly for all entrepreneurs, regardless of their experience with financial planning or Excel software.

If you encounter any difficulties or have questions, our team is available to provide assistance and support, free of charge. We're committed to helping you make your coffee shop dream a successful reality.

The content provided here is for informational purposes only and does not imply endorsement. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the advice or strategies presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.

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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.

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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How to Create a Budget for Your Coffee Shop Business: 5 Steps Guide for your Financial Plan

If you’re planning to open a coffee shop, one of the most important things you’ll need to do is create a budget. A budget will help you determine how much money you need to start your business, and how much money you’ll need to keep it running. In this guide, we’ll walk you through the steps of creating a budget for your coffee shop business.

Why Is It Important to Create a Budget for Your Coffee Shop Business?

Creating a budget for your coffee shop business is important for several reasons. Firstly, it helps you determine how much money you’ll need to start your business and keep it running. Secondly, it helps you identify potential sources of income and expenses, and prioritize them based on their importance. Thirdly, it helps you track your financial progress and make adjustments if necessary.

Determining Start up Cost

Rent and security deposit.

The first expense you’ll need to consider is the cost of renting a location for your coffee shop. This will likely be one of your biggest expenses. Be sure to research different locations and their associated costs, including utilities and other expenses. Additionally, you’ll likely need to provide a security deposit to secure the space.

Equipment and Supplies

Next, you’ll need to consider the cost of equipment and supplies. This includes everything from coffee machines and grinders to cups, spoons, and napkins. Research different suppliers and compare prices to find the best deals. Don’t forget to include the cost of installation and any necessary training for your staff.

The cost of your inventory will depend on the type and quality of the products you plan to offer. This includes coffee beans, syrups, milk, and other ingredients. Be sure to research different suppliers and compare prices to find the best deals. Additionally, consider the cost of storage and any necessary refrigeration.

Permits and License

Legal and accounting fees, marketing and advertising costs.

To attract customers to your coffee shop, you’ll need to invest in marketing and advertising. This may include creating a website, running social media campaigns, and printing flyers or coupons. Research different marketing and advertising strategies and budget accordingly.

Step 2: Determine Your Operating Costs

Once you have determined your startup costs, the next step is to calculate your ongoing operating expenses. These are the costs that you will incur on a regular basis to keep your coffee shop running. Some of the typical operating costs for a coffee shop include:

Rent and Utilities: This is one of the most significant operating expenses that you will have as a coffee shop owner. Rent for your location, along with utilities such as electricity, gas, water, and internet, should be included in your operating costs.

Inventory: You will need to purchase coffee beans, syrups, milk, cups, napkins, and other supplies on a regular basis. These costs should be included in your operating expenses.

Insurance: It’s important to have insurance coverage to protect your business from unexpected events such as theft or property damage. You should include the cost of insurance in your operating expenses.

Repairs and Maintenance: Coffee machines and other equipment require regular maintenance and repairs. You should include these costs in your operating expenses.

Step 3: Determine Your Projected Revenue

The number of customers you expect to serve each day: You’ll need to estimate how many customers you expect to serve each day. This will depend on the location of your coffee shop, the time of day, and the type of customers you are targeting.

To calculate your projected revenue, simply multiply the number of customers you expect to serve each day by the average amount each customer will spend. Then, multiply that number by the number of days you plan to be open each month. This will give you your projected monthly revenue.

Step 4: Calculate Your Breakeven Point

Knowing your breakeven point is crucial to ensure the success of your coffee shop business. The breakeven point is when your revenue equals your expenses, and it is the minimum level of sales you need to achieve to avoid losses. Once you know your breakeven point, you can set sales goals and adjust your pricing or expenses accordingly.

Next, you need to determine your average revenue per customer. This is the amount of money you expect each customer to spend on average. Let’s say you estimate that each customer will spend $5 per visit.

Finally, divide the number of customers you need to break even by the number of days you plan to be open in a month to get the number of customers you need to serve each day. If you plan to be open 30 days in a month, you would need to serve 400 customers per day (12,000 ÷ 30 = 400).

It’s important to note that the breakeven point is not a static number. It can change based on various factors, such as changes in expenses, pricing, or customer behavior. Therefore, it’s essential to regularly review and update your breakeven analysis to ensure you’re on track to reach your financial goals.

Step 5: Create a Monthly Budget

1. list your expected monthly income, 2. list your monthly expenses.

Next, list your monthly expenses. This should include your operating expenses, such as rent, utilities, and salaries, as well as any other expenses you expect to incur each month. Make sure to break down your expenses by category, such as rent, utilities, inventory, and marketing.

3. Determine Your Net Income

Once you’ve listed your expected monthly income and expenses, subtract your expenses from your income to determine your net income. This will give you a clear picture of whether your business is making a profit or a loss each month.

4. Adjust Your Budget as Needed

5. monitor your budget regularly.

Once you’ve created your monthly budget, it’s important to monitor it regularly. Keep track of your income and expenses each month, and adjust your budget as needed. This will help you stay on track financially and make informed decisions about the future of your coffee shop business.

Keep track of your inventory and expenses

Use technology to your advantage.

Technology can be a powerful tool for managing your coffee shop business finances. There are many software programs and apps available that can help you track your expenses, manage your inventory, and even forecast your sales. Consider investing in these tools to help you streamline your financial management and make more informed decisions.

Don’t forget about taxes

Be prepared for unexpected expenses, monitor your budget regularly.

Creating a budget for your coffee shop business is just the first step. To ensure your financial success, you’ll need to monitor your budget regularly and make adjustments as needed. This means tracking your actual revenue and expenses, comparing them to your projections, and making changes to your budget as necessary.

Creating a budget for your coffee shop business is a crucial step in ensuring your financial success. By following the step-by-step guide we’ve outlined in this article, you’ll be able to create a comprehensive budget that takes into account your startup costs, operating costs, projected revenue, and breakeven point. Remember to be realistic with your projections and monitor your budget regularly to ensure you’re staying on track financially. With a solid budget in place, you’ll be well on your way to building a thriving coffee shop business.

Don’t forget, creating a budget for your coffee shop business is just one part of running a successful business. You’ll also need to focus on providing quality products and excellent customer service, as well as marketing your business effectively. With dedication and hard work, you can build a coffee shop business that not only meets your financial goals but also brings joy to your customers.

Frequently Asked Questions:

What are some common mistakes to avoid when creating a budget for my coffee shop business, how can i reduce my expenses to improve my net income, how can i increase my revenue to improve my net income.

To increase your revenue, you can consider adjusting your pricing strategies, offering promotions or discounts, expanding your product offerings, or investing in marketing and advertising. You can also look for opportunities to diversify your revenue streams, such as by offering catering or wholesale services.

Why is it important to monitor my budget regularly?

Monitoring your budget regularly is important because it allows you to track your financial progress and make adjustments as needed. By keeping track of your income and expenses each month, you can identify areas where you need to cut costs or invest more resources. This will help you stay on track financially and make informed decisions about the future of your coffee shop business.

What tools can I use to create and monitor my budget?

To learn more on how to start your own coffee shop checkout my startup documents here

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.

Share This Story, Choose Your Platform!

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.

Plan a Coffee Shop Budget

“When preparing to travel, lay out all of your clothes and all of your money. Then take half the clothes and twice the money.” Susan Heller

The alternate title for this guide is “Top Reasons that Coffee Businesses Fail.” Nowhere is this more true than with our #3 entry: be sure to have enough capital . Starting a new retail coffee business is not easy or inexpensive. As the adage implies, it does take money to make money. But how much is enough? You need to have a carefully planned coffee shop budget.

According to the Small Business Administration, 50% of small businesses fail in the first three to five years. Studies show that management inexperience and insufficient capital are the top two reasons for failure.

As you plan a budget, it is reasonable to expect your starting capital to total hundreds of thousands of dollars. Every business is different, so just how much will depend on you, your market, and the complexity of your plans. Unless you’re opening a small location with a minimalist design, more than $50,000 is likely needed. $250,000 is an excellent minimum goal for suburban North America in 2015. Flashy cafes in prime urban locations can cost $1,000,000 or more to launch.

Budget estimates vary and will depend on:

• Location costs
• Size of the shop
• Complexity of design
• Capital equipment
• Staff costs
• Other local market factors

Remember to invest in the budget areas that generate income first. Expensive furniture and decor can affect the image of a business, but it’s better to invest in your location, product, and the people who make it. There are many ways to make the decor inviting or ‘cool’ without spending too much money.

Check out this article from Fresh Cup Magazine for some ideas.

Always be conservative with your income projections and generous with your expenses. Have enough cash to meet your initial capital expenses and operating costs for no less than one year . This will improve your chances of success during the formative stages of the business. If you have any less time, your brand may not have the opportunity it needs to establish itself in the community.

Prepare yourself with enough capital to run the business for 12 to 18 months before a coffee shop will realize a steady and predictable business flow. During that time, you will need to self-finance some operating costs.

If you determine that your available funds are below what is needed to succeed, find another funding source or quit while you are ahead. Starting an under-capitalized business increases the chances that the business will fail.

There is a chance that you will get lucky, but remember that this is an investment, not a gamble. Savvy entrepreneurs know how to manage risk versus reward. Plan your budget carefully.

Coffee Shop Business Plan Ultimate Guide + Free Example

July 6, 2023

Adam Hoeksema

When it comes to starting a coffee shop, writing a business plan may not be your top priority. You're probably eager to dive into the exciting world of brewing aromatic coffee and serving delicious treats, rather than spending days crafting a detailed plan.

However, it's important to understand that potential lenders and investors often require a business plan before they consider supporting your venture. So, while it may not be your first choice, having a well-prepared business plan with realistic financial projections is crucial to securing the financial backing you need.

So if you have to do it, this article is going to help you walk through the following:

• What Should be Included in a Coffee Shop Business Plan?

Coffee Shop Business Plan Outline

• Conducting Market Research for Your Coffee Shop Business Plan
• Creating Financial Projections for Your Coffee Shop Business Plan

Example Coffee Shop Business Plan

• Free Coffee Shop Business Plan Template Download
• Coffee Shop Business Plan FAQs

With that in mind as the path forward, let’s dive in. 

A coffee shop business plan should effectively convey to investors and lenders why customers would prefer to frequent your coffee shop, why you or your team are the ideal individuals to manage the coffee shop, and how the financial projections are structured to ensure a worthwhile return on their investment. Below is a comprehensive layout of our complimentary coffee shop business plan template.

I. Executive Summary

Ii. market analysis, iii. business concept, iv. marketing strategy, v. operations plan, vi. financial plan, startup costs and use of funds, annual sales, gross profit and net profit, key financial ratios, financial summary, income statement annual summary, cash flow statement annual summary, balance sheet annual summary, vii. management team.

VII. Conclusion

How to do Market Research for a Coffee Shop Business Plan

Central to any coffee shop business plan is market research. You need to comprehend your position in the market and aim to validate that there is ample demand for your specific coffee shop concept, location, and pricing structure. You can explore more about our coffee shop market researc h approach here, but ultimately, you aim to understand your competition, gain insights into potential customer footfall, select an optimal location, and anticipate any seasonal trends that might influence your business. Here are some instruments and strategies for conducting market research for your proposed coffee shop.

What Will be the Cost to Advertise my Coffee Shop?

We recommend using Google Keyword Planner to assist you in determining which keywords to advertise for attracting customers to your coffee shop's website. The tool also provides an estimate of how much each click will cost when advertising for various keywords, as seen below:

What Keywords are Customers Using in Their Searches?

We utilize both Google Keyword Planner and Ahrefs to discover which keywords are channeling traffic to your competitors' websites. For instance, you can run a report on a competitor's website to see the keywords they rank for and the amount of organic traffic each keyword brings. This information can help streamline your SEO efforts.

How Seasonal are Coffee Shops?

We use Google Trends to identify how seasonal your coffee shop concept might be. As an example, you can see below that the search volume for “coffee shop near me” in the United States is somewhat seasonal in nature.   January is consistently the low point, with the summer and fall tending to be the high point of the season.

How Many Customers Do my Competitors Receive Each Month?

Lastly, we find it beneficial to generate foot traffic reports on your competitors to ascertain the typical number of customers they receive at their coffee shops. You can see an example below that indicates the number of visits per month for a specific location:

In the end, the potential customer base for your coffee shop will be a critical assumption that will form the backbone of your financial projections. Therefore, understanding the footfall of your competitors can aid you in estimating potential traffic to your coffee shop.

How to Create Financial Projections for a Coffee Shop Business Plan

Once you've conducted thorough market research, it's time to develop financial projections for your coffee shop. Our coffee shop financial projection template is designed to help you estimate revenue based on customer traffic, taking into account factors such as seating capacity and the efficiency of your kitchen operations. These projections serve two important purposes: demonstrating your ability to repay a loan and showcasing the potential return on investment for potential investors. To achieve this, consider the following steps:

• Estimate startup costs for your coffee shop
• Forecast revenue
• Project food and labor cost
• Estimate your operating expenses like rent and utilities
• Calculate how much investor or loan capital you will need to open

Our coffee shop projection template offers guidance in this process and provide a standardized format that meets the requirements of investors and lenders. Typically, a comprehensive set of projections for a startup coffee shop should include an integrated income statement, balance sheet, and cash flow forecast.

Remember, while writing a business plan and developing financial projections may seem daunting, they are essential steps in securing the necessary funding and creating a roadmap for your coffee shop's success. By following these guidelines and utilizing our templates, you'll be well-equipped to present a compelling case to potential investors and lenders.

Below is the content of our example coffee shop business plan. You can also access a Google Doc version of this coffee shop business plan template here , allowing you to personalize it to suit your needs. In addition, you can follow along with this video walkthrough designed to assist you in adapting the business plan to your specific coffee shop concept.

Coffee Shop Business Plan Template

Brewtopia is a specialty coffee shop located in the heart of downtown, offering customers a unique and elevated coffee experience. Our target market is young professionals and coffee connoisseurs who are looking for high-quality coffee and a comfortable, chic atmosphere. Our goal is to differentiate ourselves from other coffee shops in the area by offering a unique selection of specialty coffee drinks and a curated menu of pastries and small bites, made with locally-sourced ingredients. In addition to traditional espresso-based drinks, Brewtopia will offer Nitro cold brew on tap and a variety of flavored lattes made with natural syrups. With a focus on quality, customer service, and community involvement, Brewtopia aims to become a staple in the downtown community and to provide customers with a memorable coffee experience.

The coffee industry is a rapidly growing market, with revenue in the US estimated at $48 billion in 2021. Within the industry, the specialty coffee segment is growing even faster as consumers are willing to pay more for a premium experience. 

Our target market is young professionals, ages 25-40, who value convenience and quality in their coffee choices. The downtown area, where Brewtopia will be located, has several coffee shops, but none offer the same level of specialty drinks and baked goods that we will offer. With a focus on quality and a unique experience, Brewtopia is well-positioned to capture a significant share of the growing specialty coffee market in the downtown area.

Brewtopia's concept centers around providing customers with a unique and elevated coffee experience. 

Our menu will include a variety of specialty coffee drinks made with high-quality, responsibly-sourced beans, as well as a curated selection of pastries and small bites made fresh daily using locally-sourced ingredients. In addition to traditional espresso-based drinks, Brewtopia will offer Nitro cold brew on tap and a variety of flavored lattes made with natural syrups, differentiating ourselves from other coffee shops in the area. Our chic and modern decor will provide a comfortable and inviting atmosphere for customers to work, relax, and socialize.

Brewtopia's marketing strategy will focus on building brand awareness and attracting customers through a strong presence on social media, targeted advertising, and community involvement. We will maintain a strong presence on platforms like Instagram and Facebook, showcasing our products and connecting with customers. 

Our targeted advertising will focus on reaching young professionals in the downtown area through channels such as local publications and online ads. In addition, Brewtopia will be active in the community, hosting events and supporting local organizations, helping us to build relationships with our customers and establish ourselves as a part of the downtown community. 

We will also offer loyalty programs and special promotions to encourage repeat business. Our pricing strategy will be competitive with other specialty coffee shops in the area, but slightly higher to reflect the premium quality of our products.

Brewtopia will be open 7 days a week, from 7am to 7pm. Our team of baristas will be trained to provide exceptional customer service and to prepare a wide range of specialty coffee drinks. We will use a point-of-sale system to manage orders and track inventory, and all baked goods will be prepared fresh daily on-site. 

Brewtopia will occupy a 1,500 square foot space in the downtown area, which will include a kitchen for preparing food, a bar for coffee preparation, and seating for 20-25 customers. The space will be designed to be modern and chic, creating a welcoming atmosphere for customers.

The start-up costs for Brewtopia are estimated at $200,000, which includes the costs of leasing a space, equipment and supplies, marketing and advertising, and initial inventory. We plan to finance the startup costs through a combination of personal savings, a small business loan, and investments from friends and family.

All of the unique financial projections you see here were generated using ProjectionHub’s coffee shop financial projection template . Use PH20BP to enjoy a 20% discount on the template. 

Watch how to create financial projections for your very own coffee shop:

Brewtopia will be owned and operated by Jane Doe, a seasoned coffee professional with over 10 years of experience in the coffee industry. Jane will manage the daily operations of the business and provide exceptional customer service, while also training and supervising a team of baristas. Additionally, Jane will be responsible for the financial management of the business and the development of our marketing strategy.

VII. Conclusion 

Brewtopia is poised to fill a gap in the specialty coffee market in the downtown area. With a focus on quality, customer service, and community involvement, we aim to become a staple in the downtown community and provide customers with a memorable coffee experience. With a solid financial plan and a seasoned management team, Brewtopia is well-positioned for success in the growing specialty coffee market.

Coffee Shop Business Plan FAQs

What are the essential elements to include in a coffee shop business plan.

A coffee shop business plan should include sections on executive summary, company description, market analysis, target audience, menu and pricing, marketing and promotional strategies, location and facilities, staffing and management, and financial projections.

How can I determine the ideal location for my coffee shop?

When selecting a location for your coffee shop, consider factors such as foot traffic, proximity to offices or residential areas, competition in the area, parking availability, and visibility. A bustling area with a high concentration of your target customers can be an ideal location.

How can I estimate the financial projections for my coffee shop?

Financial projections for a coffee shop should include estimates for start-up costs, monthly expenses (such as rent, utilities, ingredients, and employee salaries), projected sales revenue based on customer traffic and average spending, and a break-even analysis to determine when your coffee shop will become profitable.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Learn 5 key tips to make your startup business plan stand out and secure an SBA loan, from demonstrating market potential to creating realistic financial projections.

How to Know if Your Financial Projections are Realistic

It is important for financial projections for a small business or startup to be realistic or else an investor or lender may not take them seriously. More importantly, the founder may make a financial mistake without a reliable plan.

Have some questions? Let us know and we'll be in touch.

BUSINESS STRATEGIES

How to write a coffee shop business plan

• Nirit Braun
• Oct 30, 2023
• 12 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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Coffee Shop Business Plan

Start your own coffee shop business plan

Java Culture

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody.

Java Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one.

Java Culture will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the University of Oregon campus will provide access to the targeted customer audience.

Competition

Java Culture’s direct competitors will be other coffee bars located near the University of Oregon campus. These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee.

Great coffee, pastries, additional options for tea etc, very welcoming atmosphere, good wireless, desk space, comfortable chairs and tables, good pastries, a location close to the university campus.

Expectations

We plan to grow as shown in the chart below, taken from our sales forecast. We aim to maintain an industry-standard 60% gross profit margin and reasonable operating expenses, and to produce reasonable profits in the second and third year.

Financial Highlights by Year

Financing needed.

The owners will invest $140,000 and take out a bank loan for $30,000  to cover the start-up expenses and assets needed plus deficient spending in the early months.

The start-up expenses of $27,000 include:

• Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300.
• Marketing promotion expenses for the grand opening of Java Culture in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Consultants fees of $3,000 paid to ABC Espresso Services <name changed> for the help with setting up the coffee bar.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $2,400.
• Pre-paid rent expenses for one month at $1.76 per square feet in the total amount of $4,400.
• Premises remodeling in the amount of $10,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).

These expenses will be incurred before launch, so they take their place in our financial projections as negative retained earnings of $27,680 at the end of the month before we begin. That number shows up in the balance sheet.

The required start-up assets of $143,000 include:

• Cash in the bank in the total amount of $67,000, which includes enough to cover employees and owner’s salaries of $23,900 for the first two months and cash reserves for the first three months of operation (approximately $14,400 per month).
• Coffee beans (12 regular brands and five decaffeinated brands) – $6,000
• Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $7,900
• Retail supplies (napkins, coffee bags, cleaning, etc.) – $1,840
• Office supplies – $287
• Espresso machine – $6,000
• Coffee maker – $900
• Coffee grinder – $200
• Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000
• Storage hardware (bins, utensil rack, shelves, food case) – $3,720
• Counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Serving area equipment (plates, glasses, flatware) – $3,000
• Store equipment (cash register, security, ventilation, signage) – $13,750
• Office equipment (PC, fax/printer, phone, furniture, file cabinets) – $3,600
• Other miscellaneous expenses – $500

Funding for the company comes from two major sources–owners’ investments and bank loans. Two major owners, Arthur Garfield and James Polk, have contributed $70,000 and $30,00 respectively. All other investors have contributed $40,000, which brings the total investments to $140,000. The remaining $30,000 needed to cover the start-up expenses and assets came from the two bank loans–a one-year loan in the amount of $10,000 and a long-term (five years) loan of $20,000. Both loans were secured through the Bank of America. Thus, total start-up loss is assumed in the amount of $27,000.

The amounts show up in the balance sheet in the month prior to opening. The $140,000 investment shows up as Paid-in Capital. The $27,000 expenses show up as negative retained earnings. Assets and liabilities are there. This is all according to financial standards.

Problem & Solution

Problem worth solving.

People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody. 

Our Solution

Java Culture will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Java Culture will invest its profits to increase the employee satisfaction while providing stable return to its shareholders.

Target Market

Market size & segments.

Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. The retail coffee industry is flourishing in the U.S. Pacific Northwest. The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks. Furthermore, coffee has really become a part of the lifestyle in the Pacific Northwest. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment.

More specifically, the University of Oregon as close to 25K students and another 5-10K faculty and staff. And it is embedded in the Eugene, OR community of 200K people. Our main market will be students, faculty, staff, and nearby residents. But the campus area is a hub for the community and will attract other customers. 

Current Alternatives

Our Advantages

Java Culture will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base.

Keys To Success

The keys to success will be:

• Store design that will be both visually attractive to customers, and designed for fast and efficient operations.
• Employee training to insure the best coffee preparation techniques.
• Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks.

Marketing & Sales

Marketing plan.

Java Culture will position itself as unique coffee bar where its patrons can not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Java Culture from incumbent competitors.

In order to build up its client base, Java Culture will use some strategic banners and fliers during the launch period, utilize customer referrals and cross-promotions with other businesses in the community from time to time, and loyalty programs that work with android and IOS and other mobile phones, which is the preference of our market.

Our main thrust will be getting people to know, like, and trust us with content and engagement in Facebook, Instagram, Snapchat, and Twitter.  We intend to maintain social media presences that are light on self-serving promotional quasi-advertising content, heavy on community participation, content, and engagement. 

Java Culture baristas will handle the sales transactions. To speed up the customer service, at least two employees will be servicing clients–while one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes.

Locations & Facilities

Java Culture coffee bar will be located on the ground floor of the commercial building at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a one-year lease of the vacant 2,500 square feet premises previously occupied by a hair salon. The lease contract has an option of renewal for three years at a fixed rate that Java Culture will execute depending on the financial strength of its business.

The floor plan will include a 200 square feet back office and a 2,300 square feet coffee bar, which will include a seating area with 15 tables, a kitchen, storage area and two bathrooms. The space in the coffee bar will be approximately distributed the following way–1,260 square feet (i.e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer service area.

This property is located in a commercial area within a walking distance from the University of Oregon campus on the corner of a major thoroughfare connecting affluent South Eugene neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area. The coffee bar’s open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishment’s positioning as an eclectic place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their beverages, and outside electric signs will be aimed to grab the attention of the customer traffic.

Milestones & Metrics

Milestones table.

Key Metrics

We have our forecasts for sales, direct costs, and operating expenses. As we get into the business we’ll develop standards based on experience for Facebook likes, Twitter follows, and other social media engagement. We expect to watch these very carefully. 

Ownership & Structure

Java Culture is majority-owned by Arthur Garfield and James Polk. Mr. Garfield holds a Bachelor’s Degree in Business Administration from the University of ZYX. He’s worked for several years as an independent business consultant. Previously, he owned the ABC Travel Agency, which he profitably sold four years ago. Mr. Garfield has extensive business contacts in Oregon that he will leverage to help his new venture succeed. Mr. Polk has a Bachelor’s Degree in Psychology from the XYZ State University. For the last five years he has worked as a manager of DEF Ristorante, a successful Italian restaurant in Portland, OR. Under Mr. Polk’s management, the restaurant has consistently increased sales while maintaining a lower than average level of operating expenses.

Investors will not be involved into the daily management decisions at Java Culture. They will hire a professional manager who will oversee all the coffee bar operations. Three full-time baristas will be in charge of coffee preparation. They will hire two more part-time employees to fulfill the staffing needs. In the second and third year of operation will add additional employees if and when needed. 

Management Team

A full-time manager will be hired to oversee the daily operations at Java Culture. The candidate (who’s name is withheld due to his current employment commitment) has had three years of managerial experience in the definitely industry in Oregon. This person’s responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties. We believe that our candidate has the right experience for this role. A profit-sharing arrangement for the manager may be considered based on the first year operational results.

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

• We assume a steadily growing potential market in line with growth at the university, trends. 
• We assume industry standard gross margins
• We assume relative status quo regarding technology and trends in the coffee industry

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

The start-up expenses include an estimated $17,000 consisting of several items:

• Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $1,500.
• Other start-up expenses including website ($4,000) and phone and utility deposits ($2,500).

The required start-up assets of $71,000 include:

• Plates, glasses, etc. worth approximately $2,000
• Espresso machine
• Coffee maker
• Coffee grinder 
• Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.)
• Storage hardware (bins, utensil rack, shelves, food case) 
• Counter area equipment (counter top, sink, ice machine, etc.)
• Serving area equipment (plates, glasses, flatware)
• Store equipment (cash register, security, ventilation, signage) 
• Office equipment (PC, fax/printer, phone, furniture, file cabinets) 
• Other miscellaneous expenses

Sources of Funds

Projected profit & loss.

Projected Balance Sheet

Projected Cash Flow Statement

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The Ultimate Coffee Shop Business Plan and Template

If you are looking to write a coffee shop business plan, you have come to the right place.

A coffee shop business plan is an essential tool for coffee shop owners or people who want to open a coffee shop. A business plan will help you plan your strategy for success and act as a guide as you look to build your coffee shop.

In this article, we’ll look at why you should write a business plan for your coffee shop or cafe, as well as provide you with a sample and a template that contains inspiration for the things you should include in your coffee shop business plan.

Table of Contents

• 1 Why Write a Coffee Shop Business Plan?
• 2.1 Executive Summary
• 2.2 Company Overview
• 2.3 Market and Customer Analysis
• 2.4 Sales and Marketing Plan
• 2.5 Management Team
• 2.6 Financial Plan
• 3 Wrapping Up

Why Write a Coffee Shop Business Plan?

The basic idea behind a coffee shop is simple. The business needs to sell enough coffee products to cover costs and make a profit. However, many variables will define whether your business is successful.

A coffee shop business plan will help you plan a strategy for success. It will consider factors such as opportunities, risks, and how you will market yourself . By having a good idea of this before you start a coffee shop, you will be better placed to overcome or avoid any difficulties.

Here are some examples of how a business plan could help iron out any difficulties:

• While creating the market analysis section, you may decide that competition is too intense. If this is the case, you could look for a new area with fewer competitors or find a way to make your coffee shop business stand out.
• By creating a marketing plan before you open, you can put yourself in an excellent position to make sales from the moment you start a coffee shop.
• By creating cash flow projections, you will be able to spot any potential financial issues well before they come to light, preventing cash flow problems.

Without a business plan, you would either not know about the potential difficulties listed above, or you would be aware of them but lacking any defined strategy for overcoming them. By creating a coffee shop business plan, you can tackle issues with a clearer head.

Business plans are also essential documents if you plan to apply for funding for your coffee shop.

You’ll likely need to submit the business plan to the bank when applying for a loan, or to investors when applying for equity funding. Having a well-thought-out business plan shows you have done your market research and analyzed your idea which helps give investors an overview of the risks and potential rewards of investing.

If you are going to use your business plan to apply for funding, you’ll need to go into a little more detail about the financials of your business. This will include your income and expenses and you’ll also need to include a section that discusses how you will use the money you’re raising.

Coffee Shop Business Plan Template

A Google search will reveal differences when it comes to the exact sections you should include in your coffee shop business plan.

Nonetheless, a coffee shop business plan template will include the sections listed below. In this part of the article, we’ll go through a coffee shop business plan template and discuss what you should include in each section.

Executive Summary

The executive summary is a short overview of your coffee shop business plan. It should include all the important details about your business. When deciding what to include, think about what you would want someone to see if they told you they would only read this one section of your plan.

Open your executive summary with a statement about what your coffee shop business is all about. Talk about what it will offer that is unique and mention why you think it will be successful. Is it the only coffee house in town, for example?

Coffee shop name: AI Coffee Shop

Executive Summary:

AI Coffee will serve high-quality coffee to office workers and business people who work nearby. We will sell espresso-based drinks with a focus on providing quality at speed. We will sell coffee to take away as well as to eat in, with an indoor seating area with space for 25 customers in our coffee shop.

While there are other coffee shops in the area, we believe that there is demand for more — especially ones that focus on a high-quality product. We will also provide a light lunch menu and pastries that we believe will differentiate us from other coffee shops in the area. 

Company Overview

In the company overview section, you should include practical details about your coffee shop business. This will include:

• The structure and ownership of your coffee shop
• The staff you plan to hire and what you will pay them
• Your company’s mission statement, and startup expenses

While this may seem like a lot of work, the good news is this also serves as a way to kill two birds with one stone. As you flesh out your company’s goals & vision statements, it’s important to track this information in an internal wiki . Not only will this help your business stay true to its course, but it can also serve as a great resource for your staff.

AI Coffee will be a privately held company owned entirely by Mr Smith, who will also manage the coffee shop. We will hire two full-time employees with at least two years of barista experience, as well as four part-time employees to help during busy periods.

Startup costs for the coffee shop will be $70,000, which will be spent on rent, renovations, and purchasing equipment. The owner has put up half the money and has borrowed half from a bank. Based on annual sales of $160,000 and after costs and wages, we expect to be profitable within the second year. 

Market and Customer Analysis

In the market analysis section, you should include details about the local market. This can include information on competitors, such as other coffee shops or any fast-food joints, restaurants, or bars that you think will be competing for your coffee shop’s money.

You should also outline what makes your coffee shop business unique and why you think it can be successful despite the competition. You can also include wider information about the coffee industry.

In the customer analysis section, you need to include information about your target market. Include details on who they are and why you think they will like your coffee shop, with metrics where possible. If you performed market research before starting your coffee shop business plan, include that here.

Market Analysis

The coffee industry is expected to keep growing between 2020 and 2024 in the U.S. Research suggests that coffee is one of the most consumed beverages in the country, with the average person drinking two cups per day. We believe that this growth, plus the high volume of coffee people drink each day, makes opening a coffee shop a good business opportunity . 

Competitor Analysis

AI Coffee will be located in a vibrant district that is seeing offices open up and new companies move in. There are currently two other coffee shop competitors in the immediate area, but we believe there is room for more.

Our shop’s main advantages are that it is closer to a new office building than the other shops. We also plan to differentiate ourselves by offering a small lunch menu, unlike any of the existing coffee shops, as well as various customer loyalty schemes . 

Customer Analysis

The location of the coffee shop has high footfall, especially before and after work and during lunchtimes. The area has a high proportion of local professionals who can afford to spend money on coffee and other drinks. 

The office blocks in the immediate vicinity are home to around 2,500 people. There are also other buildings being developed nearby. The location is also close to shopping and entertainment districts. We expect to receive significant revenue from passersby, who will keep us busy during the day. 

Sales and Marketing Plan

Before you start a coffee shop, you should have a clear idea of what your business’s sales strategy will be.

Your sales strategy contains practical details on how you will handle sales. You should also include sales forecasts and how you have come up with these forecasts. In this section, you should include information about the products you will sell and your pricing strategy.

Your marketing plan will discuss the strategies you will use to get customers through the door. Discuss your budget and expected returns on investment. If you have a particularly complex marketing plan, you may want to create a separate document for this and only include the highlights in your business plan.

AI Coffee will open from 7.30 a.m. until 7.30 p.m. seven days a week. We expect the hours immediately before and after office hours, as well as between 12 p.m. and 1 p.m., to be the busiest of the day, with much of our sales being to take out. 

We will use a commercial espresso machine and we expect to be able to produce up to a maximum of 70 cups of coffee per hour, which should be sufficient during busy times. 

We will sell our espresso-based drinks and tea at between $3 and $6, depending on the drink and the size. We will sell pastries at between $2 and $5, as well as light meals at between $7 and $12. These meals will be packaged so customers can either eat them on-site or take them away. 

We expect to generate around $730 per day from food and drink sales. 

Marketing Plan

We will market our coffee shop to customers in the nearby area through display marketing in relevant locations. We will also use social media marketing to target people nearby, and we will connect with people through our social media accounts. We will use these accounts to keep customers updated with new menu items as well as offers and discounts. 

We will also create a website and an app, which we will use to run a customer loyalty scheme . We will provide the option to order coffee through the app and pick it up at the shop. We think this will appeal to busy professionals. 

Our marketing will focus on the quality of the coffee we sell, as well as the benefits of our shop to office workers ( in-app ordering ). During the week after we open, we will offer substantial discounts on coffee to attract people to our business. This offer will be central to our marketing during this period. 

We will encourage repeat customers using a loyalty scheme that will give them a free cup of coffee when they buy eight drinks.

Our marketing budget will be $500 in the first two months, but we will cut this down to around $350 a month after that. 

Operating Plan

The operating plan will include details of how you will run your coffee shop. This will include costs, as well as specifics about things like opening times, food and drink production, prices, and more.

It will also allow you to spot any potential conflicts. For example, if you plan to serve 150 office workers between 7:30 a.m. and 9 a.m., can you do it with only two members of staff or would you be better off hiring another employee?

You can also use this section to explain any licenses or certifications you need to get before you open your shop, as well as how you will train employees.

We will open from 7:30 a.m. to 7.30 p.m. We will always have at least three staff members in place to take care of making coffee, process sales, and keep the coffee shop tidy.

We will buy our coffee wholesale from a supplier that specializes in high-quality coffee. This coffee will cost $40 per five-pound bag. We will keep enough coffee in stock to last for at least one week. 

In terms of equipment, we will use a commercial grinder to grind beans before making each cup. 

We will buy pastries and light meals from a local supplier who will also take care of the packaging. We will receive a daily delivery at 7 a.m., thirty minutes before the shop opens. 

We will thoroughly clean up the shop after closing to ensure it is ready for the following day. We will build HACCP processes to stay compliant with food safety regulations. All members of staff will receive training so they know about these processes.

Management Team

In the management team section, you should include who the business owners are and who will manage your coffee shop. You should write about any experience or qualifications they have that will help make them successful.

If the owners won’t be managing the coffee shop, you should include details about who will take care of the day-to-day running of the business. In this section, include how much you will be paying each of the management team as well as how any profits will be shared amongst the owners.

The owner will also manage the coffee shop. The owner has over ten years’ experience working in coffee shops, including six years in various management positions. AI Coffee will also hire two full-time employees. These employees will have at least two years’ experience working in a coffee shop. We will pay each full-time employee $22,000 a year.

We will also hire four part-time employees with or without experience to work at weekends and provide cover during the week. We will pay these employees $10 an hour. 

Financial Plan

The final section of the coffee shop business plan is the financial plan. Here you need to go into detail about how your business will be financially successful.

Include operating costs (this includes the cost of equipment), loan repayments, cash flow and expected revenue (in the first year, especially). Also, include a balance sheet analysis that shows how much revenue you need to take in to become a profitable coffee business.

In this section, we will explain our financial plan, including costs, expected sales, and profit. We will also include a balance sheet. We believe this plan accurately illustrates why AI Coffee will be financially successful. 

ADD FINANCIALS 

Wrapping Up

That’s all for our coffee shop business plan guide. We hope that this has equipped you with enough knowledge on how to start a coffee shop and will help you with your business planning.

To find out more about getting a business up and running, check out our guides to writing a business proposal in 2019 and writing a small business marketing plan.

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How To Write Your Coffee Shop Business Plan

How to write a coffee shop business plan.

Business Plan for Coffee Shops Series

Your business plan will serve as your road map that guides your thoughts and ideas into one detailed action plan. 

If you dream about opening a coffee business, you have many unique options to choose from. The ideas are nearly endless, from setting up a drive-thru coffee stand to opening a mobile coffee truck to buying an existing coffee shop!

After you settle on a feasible coffee shop concept , you will have no shortage of items on your to-do list.

Once you decide on your coffee business concept, the first thing to do is get your game plan together. One way to ensure you do everything right (and not miss anything) is to write a thorough coffee shop business plan .

Writing a business plan may seem daunting or tedious – but it doesn't have to be! Putting together your vision can be fun and exciting and an opportunity to showcase your ideas.

In today's post, we will discuss the benefits of a business plan, what's inside, and how to write your coffee shop business plan. Finally, we will answer common questions about a business plan impacting your success as you start your coffee business .

Is a Coffee Shop Business Plan Necessary?

Why write a coffee shop business plan.

Writing a business plan is often a necessity because three essential stakeholders require it:

• You (the owner)
• Potential Investors
• Property Managers

As the coffee shop owner, you must fully understand your vision, mission, and business path to success.

On the other hand, your investors (your partners, private lenders, or banks) will often require seeing a business plan, including your concept, startup budget, costs, financial projections, location, management team, and other essential items.

Your financials – your overall budget (startup and operational) and pro forma financial docs are essential to your business plan. Banking institutions will assess this to see if your coffee business is viable.

Additionally, property managers will likely require a business plan before considering your business for their retail space. Property managers or owners must fully understand the type of business occupying their space. They want to know what is being sold, how it's being sold, and whether they are allowing a sustainable business on their premises.

A business plan is needed by:

• Money lenders
• Property managers
• You (The owner)

Benefits of Putting Together a Plan

Business plans can effectively bring your thoughts and ideas in sync with your vision, budget, and other elements, resulting in a successful coffee shop business.

Writing a coffee shop business plan also has other benefits. 

Let's discuss the benefits below:

• A business plan increases the chances of success. 
• It propels you to develop a budget and stick to it (likely saving you money).
• Business plans help keep you (and your team) organized.
• Ensures nothing gets left behind.

Increases Your Chances of Success

Writing a business plan reduces the possibility of failure. It increases the chances of your coffee shop's success by forcing you to think through every aspect of your business before starting and spending any money. As many have found out in other important business projects, “winging it” isn't a strategy for success.  

Planning everything and writing it down in an “organic document” allows you to see where your strengths and weaknesses are – and address them. Having a cohesive plan can make a difference in achieving the desired results.

A Plan Will Save You Money 

When you start a coffee business, exceeding your original budget estimates is very easy. A business plan can help significantly reduce your costs and avoid big mistakes. This is because you'll know exactly what is needed, how much it will cost, and where it fits into your planning.

As you develop and write your business plan, you can look at the overall costs, develop a budget around your vision, and see what adaptations you need to make to ensure enough funding and a realistic outcome.

If you want to launch a coffee shop on a shoestring budget, the more you plan often equals saving more.

A Plan Will Keep You Organized

Keeping yourself organized will not only save you time and money but will also reduce your organizational headaches.

Knowing what you need (and don't need) based on your vision will help keep you on pace to finish within your established budget and timeframe.

There are often so many steps to be mindful of when starting a coffee shop that it would be nearly impossible to effectively manage every business detail without writing them down.

Ensures Nothing Gets Left Behind

Even if you have opened a business before, you know that many elements must be addressed before moving forward with the implementation process.

Necessary steps that can be easily left out or neglected can cause headaches and tremendous costs (in lost time and money) as you move forward. A coffee shop business plan ensures that all the essential parts of your business are addressed.

Details Your Budget

When you start a coffee shop, people love to first think about where they will get their coffee beans, equipment, and other menu items. These are extremely important, and they deserve the attention to plan. However, the less money you have, the more emphasis you should put on planning.

For some, figuring out a coffee shop's budgetary needs may be a significant hurdle because you may be unfamiliar with them.  However, taking the time to flesh out your budget, costs, and the money needed to open your coffee shop will provide you with tremendous insight into how your coffee business will function.

Business Plan: Your Budget and Cost Estimates

One of the most challenging parts of a business is developing your costs, budget, and estimates. We've written extensively on developing a coffee shop budget; you may find some of the articles below helpful.

• How to Start a Coffee Shop Budget
• How to Start a Low-Cost Coffee Shop
• Coffee Shop Funding Mix
• How to Prepare for a Coffee Shop Business Loan
• How to Determine the Cost of Selling 100 Coffees

Writing Your Business Plan Takes Time. A well-written coffee shop business plan will take time to write. Give yourself time to research and think through some of the decisions you will have to make.

My recommendation: You may want to write your business plan in chunks. The great thing about a business plan is that it's broken down into sections. Take a section you're thinking about, plan, and articulate your thoughts and actions. If you hit a temporary wall, go to the next section or get help.

Key Sections of Your Coffee Shop Business Plan:

The Executive Summary

Your Business Structure

Coffee Shop Financials

Unique Selling Proposition

Coffee Shop Startup Costs

Business Plan Description

Coffee shop business plan sections:.

Write a Coffee Shop Business Plan

Where do you start.

So, where and how do you start writing your plan?

First, you don't have to tackle each section in order. For example, the executive summary, which always comes first in a business plan, is often written last.

I would start writing your coffee shop business plan with the business description and concept. Second, I would develop an understanding of your target market and build your coffee shop menu around them. Third, I would write about the coffee equipment that I would need and the costs. Fourth, I would develop your coffee branding section. And then, I would start working on my coffee shop budget and cost breakdown.

This is my personal preference in writing business plans for coffee shops. However, you may have different methods. Whichever way works best for you and allows you to thoroughly plan and understand your coffee business is the one you should use.

Start Your Business Plan Writing With The Following:

• Develop your business concept (Describes Your Concept)
• Describe your target market
• Build your menu for your target customer.
• Detail your coffee equipment
• Create a coffee shop budget
• Develop a coffee shop funding mix
• Estimate revenue projections

Once you've settled on these business plan subjects, you can develop and write the rest of your business plan. Everything from your coffee shop branding, management, and barista training .

2024 Coffee Shop Business Plan Template

Writing a business plan can be challenging. Understanding each section and what should be discussed can seem daunting.

That's why we created an easy-to-use coffee shop business plan template for you. This free template details every business plan section and describes what should be in every section.

Our coffee shop business plan template (MS Word Format) is guaranteed to save you hours in research and conveniently allows you to fill in each section.

Trending Articles on Coffee Shop Startups:

Questions & Answers

Related Questions:

Is a business plan required for my coffee shop business.

No governmental agency requires a business plan, and it is not a coffee shop requirement . However, if you plan on borrowing money from a bank or renting a commercial space, those stakeholders may require a written business plan for their due diligence.

Do I need a business degree or be a lawyer to write a coffee shop business plan?

Fortunately, the simple answer is NO.

Writing a business plan is simply about getting your business thoughts down on paper in a structured and comprehensive way. In my opinion, hiring a lawyer to write out your coffee business concept may be overkill.

Now, you may decide to have a lawyer or business consultant review aspects of your coffee shop business plan – along with your property lease, trademarks, etc. I would highly discourage you from delegating the writing of your business plan to someone who doesn't know you or the business. 

Is a coffee shop business plan different from a “traditional” business plan?

Different businesses often require slightly different or modified business plans. A “coffee shop business plan” is unique from other business plans.

For example, having a business plan for a tech startup or manufacturing company will generally emphasize other key business areas when comparing them to a coffee shop business plan. Each requires a different emphasis because the audience will be different. Specifically, if your job is to create a kid-friendly coffee shop or a wine and coffee bar , you'll want something specific to that niche rather than a general business plan.

How Do I Use a Business Plan?

Your coffee shop business plan is a live and organic document.

In other words, your business plan will continuously change, evolve, and grow with you and your coffee business. Therefore, нour business plan will always change, adapt, and need to be modified.

Of course, we assume you will write your business plan using a computer and print it out. We recommend that you provide plenty of space in the margins to make edits, make additions, and eventually make changes on the computer.

Remember that your coffee shop business plan – is precisely that – a plan. A plan will change as your business changes – so having the ability to print out a physical copy, scribble notes, and cross out irrelevant information is vital as you move forward. For example, as your coffee shop budget and concept evolve, so will your business plan. 

We recommend keeping your business plan light enough for you to carry anywhere. Please place it in a thin 3-ring binder or keep it stapled but near you all the time.

Frequently Asked Questions:

Should i pay someone to write my coffee shop business plan for me.

I strongly recommend against this. People often consider having someone else write their business plan a good thing. But why waste the money on someone else thinking for you? While you may seek the help of someone reviewing elements of your plan, such as your coffee brand, coffee budget, and coffee shop location , the important decisions should be made by you.

Why you should write your business plan:

Your coffee business concept will emerge from your thoughts and ideas. Therefore, you're the best person to capture these ideas on paper.

A business plan will also help stimulate these mental muscles you may haven't used in a long time.

You will need this thought stimulation to execute your plan entirely and thoroughly. Most importantly, writing your business plan gives you a sense of real business ownership. After all, it's your business and should be your plan.

What Happens If I Don't Have a Business Plan?

Have you ever taken a long road trip without a proper map? You know it's probably not a good idea since you won't be sure where you'll end up going.

Sooner or later, not planning your trip and not having the tools you need to reach your destination will increase your expenses, frustrate you, and possibly lead you to failure.

Yet, while developing your business plan will take some work, it will help you get started confidently.

How Long Does a Business Plan Have To Be?

A coffee shop business plan can be as long as you want. Don't think of your business plan as a school assignment that needs to be turned in to your business teacher.

The length of your business plan depends on your coffee shop's complexity. Still, once completed, a thorough business plan can range from 15 to 60 pages (occasionally more, depending on the business's scope).

We recommend always using headings, subheadings, and spaces between paragraphs and sections when constructing your business plan.

A coffee shop business plan has several main sections. While there is no “right” order or structure for your typical business plan, they often include everything from your mission statement to the coffee shop equipment needed to your financial position, projections, and estimates.

Is there an easy way to start a coffee shop business plan?

Our Complete Coffee Shop Startup Kit contains a free business plan template for you to get started. All you have to do is fill it out and print our Coffee Shop Business Plan template, and you'll be ready to go!

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Coffee Shop Startups

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 11 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. We support business owners who want to start a coffee business by providing them with valuable information on starting their coffee business successfully.

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All of our kits are delivered digitally. No physical delivery is made.

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.

Your trust in us is important. Buy securely online with our Teachable Payment System. We have a no-hassle 14-day refund policy. Email us, and we’ll refund your money within 14 days of your purchase. Please read our testimonials from satisfied customers!

Disclaimer: The information and advice presented through this site and its products should not be considered legal or financial advice. The information within the website, affiliated websites, blogs, and any communications (electrical or otherwise) are for educational purposes only.

The author and publisher make no representations or warranties regarding the outcome or the use of the information within this website and products and are not assuming any liability for any claims, losses, or damages arising from the information.

• Sample Business Plans
• Food, Beverage & Restaurant

How to Write a Coffee Shop Business Plan + Free Template

You are a smart entrepreneur. You don’t jump right in and open a coffee shop just because you decoded the secret of making perfect cups of steaming delicious coffee.

Instead, you wait and plan to write a unique business plan that resonates with your coffee shop’s concept.

But hey, writing a business plan is actually complex. Without any structural format or direction, you may end up making a hotchpotch of your business idea.

To ensure that your business concept translates properly into a plan, we created this step-by-step guide that will prompt you to write an insightful coffee shop business plan in great detail.

Also, get a free coffee shop business plan template that has all the relevant examples for you to get started.

So get yourself a cup of coffee and decode the secrets of writing a stellar plan in easy steps.

Let’s get started.

Key Takeaways

• Craft a compelling executive summary for your coffee shop business plan. Add key details regarding financials, marketing, business objectives, and operations to help investors evaluate your business idea.
• Conduct thorough research on the coffee shop market by analyzing the key trends, consumer preferences, and needs of your target market.
• Streamline your coffee shop operations with a detailed plan outlining the standard operating procedures of your key business processes.
• Ensure the compliance of business by acquiring essential licenses and permits.
• Design a brief sales and marketing plan to ensure that the coffee business reaches its target customer and starts making sales.
• Identify your unique selling proposition and determine your competitive edge in the market.
• Using SWOT analysis, analyze the strengths, weaknesses, opportunities, and threats of your competitors and your own business.
• Create a sample menu and determine your menu offerings by considering varying different aspects.

Why Prepare a Coffee Shop Business Plan?

A lot of variables play together to write the success story of your coffee business.

From choosing a shop location to remodeling it as per your unique concept, hiring staff, determining sales strategy, acquiring licenses and insurance, and planning operations-you need to undertake multiple activities, consecutively at a time, to start and run a coffee business.

A business plan will guide you like a map in the right direction. It will ensure that all the business objectives are achieved without breaking a compliance code.

It forces you to assess the viability of a coffee shop idea before you invest the money in it. You can strategically plan the coffee shop’s success by making detailed financial projections relating to the company’s sales, revenue, costs, and expected expenses, and cash flow.

And most important of all, a business plan will help you acquire the required funds by winning the trust of potential investors.

How to Write a Coffee Shop Business Plan: A Complete Guide

Let’s walk through the process of writing a coffee shop business plan with detailed step-by-step instructions.

1. Get a business plan template

Writing a business plan from scratch is pretty exhausting. You are likely to leave behind an important detail without any structural format.

So do yourself a favor and get a business plan template. Trust us, it’s going to make your plan writing process so much simpler.

A template helps bring clarity and focus to different sections of the plan by prompting you in specific directions. Moreover, the templates contain examples and tips specific to coffee shops making it extremely relevant for your business.

Looking for a well-structured and modern business plan template?

Well, we knew you would. Presenting the Upmetrics business plan template that can be easily customized for your unique coffee shop business. Simply download our template and modify it as per your business concept.

Need Assistance Writing a Coffee Business Plan?

Get Upmetrics’ business plan template, import data directly into the editor, and start editing using Upmetrics AI Assistant.

Start Planning Now

2. Write an executive summary

An executive summary is like a north star of your business plan. It will act as a guiding light for stakeholders to understand your journey ahead.

Investors will read the executive summary of your coffee shop business plan before even allowing you a presentation.  So definitely it needs to be compelling and converting.

Keep your executive summary concise but detailed enough that it summarizes the key points of your entire plan. Include the problems you would be solving and the solutions you have to offer. Adapt a storytelling tone and focus on highlighting the business goals, financials, objectives, and overall business strategy.

Now, move ahead and visit this part when you are done writing for the entire plan. Summarizing becomes much easier and more effective when you are aware of the entire plan’s details.

Also, two pages are more than enough for writing a capturing executive summary.

3. Conduct a competitive and market analysis

Build a strong foundation for your coffee business by diving deep into the market research of the coffee industry, competitors, target audience, market trends, and your attainable target market.

Analyze the coffee shop industry from a macro viewpoint and then gradually narrow it down to your particular market. For instance, the revenue in the US coffee market size was $85.2 billion in 2022 and is expected to grow by 3.21% between 2023-2028.

Now, identify your targeted available market (TAM) from this and analyze the growth potential of your particular coffee shop. Overall, try to show that the coffee shop business has a thriving opportunity to grow in the market.

The market analysis for a coffee shop business must include the study of the following:

Customer analysis

Customer analysis is essential to identify your target customers. Having a thorough understanding of your target market will help formulate the business and market strategies appropriate for your business.

Create the buyer persona of your ideal customer. Focus on these details to outline your ideal customer:

• Customer demographics: Age, gender, location, income, occupation, and ethnicity of the customers who will visit your coffee shop.
• Customer psychographics: Beliefs and values of your ideal customer, their interests, spending pattern, and their media consumption.

For instance, the ideal customer for Steamy Sips is 23-38 years old and works in a corporation. He/ She likes to spend money on coffee regularly and prefers fresh roasted seasonal brews, is socializing, and loves working in a cafe remotely.

Competitors analysis

After determining your target market, look around and identify your potential competitors.

Begin by identifying the top competitors of your coffee shop. This can be neighboring coffee shops, kiosks, or coffee karts that offer similar services to your business.

Now conduct a SWOT analysis of these coffee shops by analyzing their strengths and weaknesses. Also, analyze your strengths against competitors and highlight your competitive edge in the market. Be realistic with your assessment as this will form the foundation of your related business policies.

Lastly, identify if there are any stellar opportunities for you to leverage in this market.

Collect data from highly authoritative websites, data publications, and local studies specialized in the coffee industry. For instance, SBA , SCA coffee , Mintel , Business Wire , COFFEEBI , etc.

This section is your chance to prove to the potential investors that you are aware of the market challenges and there exist favorable chances for your coffee shop to thrive and grow.

4. Prepare a company overview

Just like the executive summary of your coffee shop business plan, this section includes a brief business description of your coffee shop. It offers readers a peek into your business structure, goals, mission, and company values.

Depending on your market analyses choose the type and structure of your business concept. Clearly describe whether you will start a cafe or coffee shop, coffee kart, coffee bar, or coffee house and whether the business structure will be LLC, partnership, or sole proprietorship.

Further include your mission statement, coffee shop objectives, and goals to complete the company overview section.

Mission statement: A mission statement highlights the purpose of your coffee shop’s existence and its long-term objective.

For instance, Steaming Sips’ mission is to cultivate a culture of freshly roasted coffee, serving a welcoming space for young individuals to connect, create, and unwind with every cup of our brews.

Coffee shop objectives: In this part, highlight your business objectives in terms of milestones, growth goals, revenue goals, sales numbers, etc.

For instance, Steaming Sips aims to open 3 branches across San Fransisco by the end of 2025.

5. Present your sample menu

The market research earlier helped you understand your potential audience in great detail. Now, it’s time to decide what to offer on your menu.

A sample menu is an important component of your coffee shop business plan. With a menu, investors will know what exactly you will be serving and what makes you different.

A coffee shop can stand apart selling just coffee drinks. However, there are many coffee shops that sell coffee and food products together. Depending on your coffee shop concept and the target market, decide the menu items.

Here are a few things to consider while making your menu and establishing yourself as a specialty coffee shop.

• Different types of coffee drinks that suit your customer’s taste. For ex. filtered coffee, frappuccino, brewed coffee, hot coffee, etc.
• The type of coffee beans to produce high-quality coffee, e.g. organic coffee beans.
• Different types of coffee roasts, e.g. dark roast, medium roast, light roast.
• Different types of milk, e.g. plant-based milk options and dairy milk.
• Seasonal coffee specialties.

Strategically place the items in your menu and add the prices alongside. Incorporate branding elements of your coffee shop in the menu as well.

6. Coffee shop design and layout

Till now, the coffee shop idea was just a business concept, jumbled randomly across your mind. Writing a business plan will help you to sort those ideas, one section at a time.

The design and layout section helps potential investors visualize the appearance of your coffee shop. It is your chance to help them understand your coffee shop concept and the aspects that set you apart from other coffee shops.

Begin by highlighting your coffee shop location in this section. Briefly explain how the location is suitable for your potential customers.

Also, present the moodboard of your coffee shop and highlight the branding and visual elements of its design.

Overall, explain how you will create a welcoming atmosphere for your customers by incorporating design and decor elements in your shop.

7. Prepare a coffee shop marketing plan

Now that you have the concept, design, and menu for a coffee shop, it’s time to work on its marketing plan. The coffee market is intensely competitive and only a solid marketing action plan can differentiate your business from other coffee shops.

Using your market research, identify the best marketing strategy for your business. Ideally, coffee shops build a cohesive brand image using a mix of digital marketing practices.

For instance, a website can be used to build a robust web image, while social media can be used to connect with your target audience organically. Similarly, your coffee shop emails can focus on special offers and promotional invites while paid ads can help you target the wider audience.

In this section, you also highlight various promotional activities for your cafe such as karaoke evenings, art workshops, musical nights, happy coffee hours, etc.

Overall a comprehensive marketing plan must answer the following questions:

• How will you draw coffee enthusiasts to your coffee shop?
• What will be the pricing strategy of your coffee shop?
• What will be your marketing budget?
• What marketing channels will you use and who will undertake the marketing activities?
• Will there be any promotional events at the cafe? If so, what type of events?

8. Introduce your management team

In this section, you will introduce the management team that will ensure the smooth functioning of your coffee shop business.

Begin by introducing the coffee shop owners and their relevant experience in the coffee market. Also, clarify if you will work both as owner and manager or hire a coffee shop manager to look after the day-to-day operations.

If you are going to hire a manager, introduce them and their key responsibilities in the section. Offer a brief description of their skills, experience, and expertise that can help your coffee shop business.

Overall, this section shows the potential investors that you have all the right people in a team to drive your coffee shop toward success.

9. Outline your operational plan

This section of a coffee plan offers brief details of everyday business processes that will guide you to build and run a successful coffee shop.

An operations plan includes a lot of details, answering some of these prominent questions.

• Inventory and stock management: How will you manage and track the inventory? Who will be responsible for stock management? How often would you restock the inventory?
• Production: Who will develop the recipes for coffee beverages? Will there be recipe cost cards for coffee preparation? Will there be kitchen staff working with food orders or will you outsource that?
• Coffee shop equipment: What equipment will you buy for the coffee shop, i.e. espresso machine, coffee grinders, etc? Will that be a new purchase or a second-hand one? How much will the equipment cost?
• Management: Who will serve the food and coffee in the shop? Who will look after customer complaints? What is the conflict resolution system at your coffee shop?
• Technology: What technologies will you use at your coffee shop? Which payment and POS system will you use? Will there be an ordering kiosk?

A well-planned operations plan demonstrates your ability to run a coffee shop to your readers. So keep it detailed and revamp it as and when needed.

10. Create a Financial Plan

A financial plan helps assess the viability of your business idea by evaluating its financial aspects. It’s an important part of your coffee shop business plan whether you want to seek funding or not.

A well-built financial plan is presented in numbers, graphs, and charts and includes the following:

• Evaluation of startup costs: Identify the startup costs of your proposed coffee shop. Take into account the costs for lease rental, licenses, equipment, remodeling as well as operating expenses for the first few months.
• Sales forecasts and pricing: Determine the drink sales for your coffee shop and your pricing structure by conducting market research.
• Operating costs: Your financial projections should include a thorough calculation of operating expenses to run a coffee shop business.
• Balance sheet: A balance sheet will help investors assess your assets and liabilities and the liquidity of your business.
• Cash flow statement: Make cash flow projections and demonstrate the inward and outward flow of money in the business.
• Income statement: The figures in this sheet help evaluate the profitability of your business
• Break-even analysis: The calculations here will help determine the sales level after which your coffee shop will start making a profit.

Now, making all these financial projections and calculations is a bit taxing. Not only that, you will have to create visual reports to make the financial section appealing and insightful.

Well, let’s make things easier with our financial forecasting tool. Simply enter your assumptions in a tab and our tool will generate important key reports for your business.

Don’t stress. You don’t need to worry about the visual reports anymore. Go, check your dashboard. You will have all the visual reports ready to be added to your financial plan.

And that’s your detailed guide to writing your coffee shop business plan. Now, let’s check the latest industry trends ruling the coffee shop market. 

Coffee Shop Industry Highlights 2023

Let’s dive further deep into market analysis with these latest industry trends in the coffee shop market:

• Coffee shop industry: The US coffee shop industry grew from $36 billion to 45.8 billion dollars between 2020-2022.
• Number of coffee shops: According to Statista , in 2022 there were a total of 38.4 thousand coffee shops in the US.
• Coffee drinkers: A performed market research indicates that the top coffee consumers aren’t youngsters, but seniors. Nearly, 70% of seniors consume coffee regularly.
• Employment growth rate: The total number of people employees in the coffee shop industry in th US increased on average by 4.9% between 2018-2023.
• Specialty coffee market: According to Grandview research , the US specialty coffee market is expected to grow at 10.9% CAGR between 2023-2030.
• Price per cup: According to Business Insider , the average price per coffee cup in the coffee shop is almost $5, making it an affordable luxury for people.

Related Coffee Shop Resources

• Coffee Shop Operational Plan
• Coffee Shop Financial Plan
• Coffee Shop Marketing Plan
• Latest Coffee Shop Business Trends

Download a sample coffee shop business plan

Need help writing your business plan? Let’s ease your plan writing process with our coffee shop business plan pdf . Download it for free and customize it as per your needs.

This modern intuitive template offers a step-by-step guide that will help you write a comprehensive and actionable business plan. It’s designed specifically for coffee shop businesses and includes examples relevant to your industry.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Write your business plan with Upmetrics

Enhance the quality of your business planning with Upmetrics. With more than 400+ customizable sample business plans , it offers features like AI assistance to write an impactful business plan.

Whether you are starting your own coffee shop or taking over an existing coffee business, Upmetrics’ insightful guides and resources will help you craft a compelling business plan in easy steps.

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Frequently asked questions, what are the key components of a successful coffee shop business plan.

The key elements of a coffee shop business plan are

• Executive summary
• Business overview
• Coffee industry and market analysis
• Sample menu
• Coffee shop design and layout
• Marketing and sales plan
• Key management team
• Operations plan
• Financial plan

Should we consider franchising our coffee shop?

Yes, you can. Franchising is a proven way of increasing the reach and profitability of your coffee business. Moreover, it’s easy to scale your business through a franchise business model.

What is a traditional business plan for a coffee shop?

A traditional plan is very similar to modern business plans. It includes a summary of the company’s goals, objectives, business values, marketing objectives, and financial plan. The modern plans, however, are intuitively designed to be more suited to investors interest.

Do I need a business plan to secure funding for my coffee shop?

Yes. Investors and investing firms will ask for a business plan before giving you a chance to present the coffee shop concept. By studying your plan, they will gauge the viability of your coffee business, and depending on the analysis they will decide whether to invest or not.

What should I include in the financial projections section of my business plan?

The financial projections of your coffee shop plan must include the following:

• Sales forecast
• Startup cost estimates
• Operating costs
• Balance sheet
• Income statement
• Cash flow statement
• Break-even analysis

About the Author

Upmetrics Team

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

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How To Build a Financial Model For a Coffee Shop

• February 24, 2023
• Food & Beverage

Every business needs a financial model. Whether you want to understand what’s your breakeven , your valuation or create a budget for your coffee shop business plan , you’ve come the right way.

In this article we’ll explain you how to create powerful and accurate financial projections for a coffee shop.

Coffee Shop Financial Model

Download an expert-built 5-year Excel financial model for your business plan

1. Forecast Customers

The first thing you must do to create a financial model for your coffee shop is to forecast the number of customers you will serve over time.

Forecasting customers can be done as follows. You must set the number of:

• Customers you expect to serve on average on a weekday
• Customers on a weekend day instead
• Days you are open in a week on average (for example 5 weekdays and 2 weekend days if you are open 7/7)

That way, you will be able to forecast accurately the number of customers you can serve over time, and so the revenues which we will now see.

2. Forecast Revenue

Now that we have the number of customers, we can calculate revenue easily.

Yet, before we do so, we must break down the number of customers into the different products they may buy. Indeed, most of you customers may buy a coffee at an average price of $4.00, yet some may also buy snacks for a average price of $5.50 and so on…

It’s very important to break it down right. Indeed, as you know all these products have very different unit economics (prices and profit margins) you need to forecast accurately. Let’s see now how.

First, break down the products into a percentage of your total customers. For example:

• 80% of the customers may choose to buy a coffee at an average price of $4.00;
• another 20% buy food to go at an average price of $9.50
• In addition, 15% of customers also buy drinks for an average price of $5.50
• Finally, 8% of customers buy snacks too, for $3.50 on average

That way, you can now multiply the number of customers for each product by their respective price to obtain revenue.

3. Forecast Expenses

In addition to the one-off startup costs , you must also budget for all the operating costs of running a coffee shop .

We have laid out below the key expenses you can expect as well as their amount. Please note that these costs are for illustrative purposes and depend on a number of factors which may not fully be relevant to you.

Let’s break down the key costs incurred by all coffee shops below:

COGS (Cost of Goods Sold)

The COGS are by definition variable costs. For a coffee shop, they can include the cost of sugar, coffee beans, milk, water, etc. On average, you should spend anywhere from 20% to 30% of your revenues in COGS .

Assuming 200 customers per day on average, and an average order value of $6.20, you should expect to pay between $14,000 to $21,000 in COGS each month (see above).

With COGS and rent, payroll is undeniably one of the most important expense for coffee shops. According to salary.com, the average hourly wage for as of April 2022 ranges between $11 and $13, while a coffee shop manager earns between $31 and $44 . However, the hourly rates vary based on the education level, additional skills, years of experience, among other factors. 

Assuming you need 4 baristas full time ($30,000 yearly salary) plus a manager ($75,000), you should be looking at $19,500 in salaries each month (including 20% taxes and benefits).

Another high operating cost are the premises of which the cost depends very much on the location. As an example, the average asking rate to rent commercial space in midtown NYC is around $86 per square foot. 

So assuming you rent a 1,000 SF commercial space for $86 SF per year in Midtown NYC, the rent will represent over $7,000 per month.

Marketing and paid advertising

You need to ensure proper marketing to attract reliable customers. Therefore, make sure you set aside a marketing and advertising budget. The total customer acquisition cost (CAC) will depend on the medium used and the target audience .

Typically, marketing and paid advertising will cost more in the first 6 months of operation. Indeed, as you’re opening up the business, you’ll need a significant budget to promote your coffee shop before you can rely on organic growth (word-of-mouth).

Because coffee shops are local businesses, marketing will mostly be offline (posters, billboards, etc.) but should also include some online spending (especially social media).

4. Build your P&L And Cash flow

Once we have forecasted revenues and expenses, we can easily build the profit-and-loss (P&L) from revenues down to net profit . This will help you to visualise key financial metrics such as Gross Profit or EBITDA margin as shown below:

The cash flow statement, in comparison, needs to include all cash items from the P&L and other cash movements such as capital investments (also referred as “Capex”), fundraising, debt, etc.

Cash flow is vital as it will help you understand how much funding you should get , either from investors or the bank (SBA loan for example) to start and run your own coffee shop.

In this chart below, we’re showing you an example of a typical cost structure a coffee shop business would incur. Unsurprisingly, salaries, rent and COGS represent ~65% of total expenses

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• Purchase History

How to Create a Coffee Shop Business Plan

by I.J. Karam | Jan 1, 2024 | Business Plans

If you’re planning to open a coffee shop, the first thing you must do is create a coffee shop business plan.

Why? You might ask.

A good coffee shop business plan is an essential tool for would-be café owners.

It can help you get your business off the ground and serve as a roadmap for your new F&B business adventure. It will help you create your strategy for success and act as a guide you can refer to as you build your coffee shop business.

Before we get started, you might be interested to check out our  Ready-made Coffee Shop Business Plan Template  with pre-written text and automatic financials which you can easily customize and adapt to your own project, no financial expertise required .

What is a coffee shop business plan?

A good coffee shop business plan is one that explains your business idea and strategy to your potential investors. It answers questions such as how much money it will cost to open a café and how much money you will make. The plan must include information regarding your pricing structure, target market, and competitors.

As you can see, a coffee shop business plan is a crucial business document. Therefore, put some time and effort in creating one. That being said, writing a café business plan is easier than many might think—and we’ll show you how to get it right.

How long your coffee shop business plan should be?

There’s no one-size-fits-all answer to this question. The length of a business plan depends on the scope and size of the business.

A business plan can be just a few pages long or it can go up to hundreds of pages. There’s no prescribed length as such.

That said, for a small business such as a coffee shop, the best strategy would be to keep the plan simple and succinct, particularly if are submitting it to investors or bankers. So, aim for 30 pages, give or take.

To give the plan a better visual appeal, consider adding designs, photos, charts, and graphs.

How many sections should a café business plan have?

For a basic coffee shop business plan, seven main sections, plus a title page, should suffice.

First let’s look at what kind of information the title page must have, and then we’ll check out each individual business plan section.

The title page should begin with the legal name of your business and have other relevant business information. If you have a website in place and/or already scouted a potential location, include those also. Put the business logo (if you have one) at the top of the title page.

Also, add a table of contents, listing the name of each section and the page number where it can be found.

Section 1 – Executive Summary

You should start your business plan with an executive summary, but write it last.

A good executive summary provides investors with a short, precise, and optimistic overview of your coffee shop business plan and aptly captures the reader’s attention.  

So how long an executive summary should be?

Most experts agree it shouldn’t be more than one or two pages long. Also, it should include brief summaries of other sections of your business plan.

Here’s a sample.

Business Name: SM Café

Executive Summary

SM Café will be the go-to destination for all coffee lovers in the area. We’ll serve high-margin gourmet coffee beverages like cappuccinos, lattes, and espressos. We also plan to sell snacks and pastries to take away, as well as to eat in. Our shop will have a seating capacity of 30 customers.

Although there are two other cafes in the area, there is a significant demand for more coffee shops—particularly ones that serve high-quality products. In addition to gourmet coffee products and snacks, we’ll be offering light-lunch menu to set us apart from our competitors, both of which only serve regular coffee products.

Since we are to be located on a busy street, within walking distance from the city center, we expect a lot of customers from passerby.

We plan to capture the upper end of the coffee market by offering non-machine, gourmet coffee products at reasonable rates.

We expect sales revenue to jump from $100,000 in the first year to $150,000 by year three. We expect the net profit to grow from $20,000 to $50,000 by the third year.

We require $100,000 to cover lease costs, equipment, furniture, and renovations. The owners—Josiane Leniz and Jose Samalago—have $25,000 in cash and the rest is planned to be raised from private investors.

Section 2 – Company Overview

This section must provide readers with answers to these questions?

Who are the owner(s)?

What’s the company structure?

What are the other details about the company?

What’s the company’s mission statement?

What are the startup costs?

SM café will be jointly owned by Josiane Leniz and Jose Samalago, both of whom will also run the coffee shop. Our plan is to hire one full-time employee and three part-time employees to help us out weekends and busy hours.

We require $100,000 to cover lease costs, equipment, furniture, and renovations.

Section 3 – Market and Customer Analysis

There are two parts to this section. In the first section, include information regarding:

General trends and statistics pertaining to the coffee industry

The local market trends

Your direct competitors (that is, other coffee shops in the neighbourhood)

Other businesses with whom you’ll compete (like fast-food joints, bars, or restaurants)

Your competitive advantages

In the second section, provide answers to these questions:

Who’re your target customers?

Why they’ll choose your café over others?

If you have done a custom market research, mention the key takeaways here in an easy-to-understand language.

Sample Market Analysis

Research predicts the US coffee industry will grow at a rate of 17% on year-on-year basis between 2020 and 2025. With the average person drinking two cups of coffee daily, it is the most-popular beverage in the country. We strongly believe that these market and consumer trends make launching a coffee shop a smart business decision.

Sample Competitor Analysis

At present there are two coffee shops in the area where our venture—SM café—will open. However, our research shows there is space for new entrants.

Both existing coffee shops serve non-gourmet coffee. Our main advantage is that we’ll be the only player in this area to offer high-margin, high-quality coffee products and snacks. This will help us stand out from the crowd and build a loyal customer base.

It is also a good idea to draw a table listing the strengths and weaknesses of each existing competitor.

Sample Customer Analysis

Business people make up a sizeable portion of our expected customer base: The location of our café will generate high footfall, particularly before and after working hours, as well as during lunch hours. Since there is a business hub a few meters away, the area has many professionals who would like gourmet coffee and high-quality snacks. The local business hub houses approximately 3,000 professionals all of which are potential prospects.

Section 4 – Sales and Marketing Plan

This section is divided into two parts. First up is the sales strategy, which should include your sales forecasts, as well as how you have calculated it. Mention the names of the products and your pricing strategy as well.

In the marketing plan section, discuss your strategies for attracting customers, your budget, and your expected ROI (Return On Investment). In case your marketing plan is a complex one, only mention the key points in the business plan. You can have the detailed marketing plan on a different document.

Sample Sales Plan

SM café will open from 7.00 a.m. to 7.00 p.m. all days of the week. Our busiest hours are likely to be before and after business hours, as well as during the lunch hours between noon and 1.30 p.m.

We have a seating for 30 people. Our non-machine coffee products will be priced from $20 upward. We’ll sell pastries (at $5-$8 each) and light meals ($15-$24) as well. Since meals will be packed, customers can either take them away or eat them inside the shop.

Our daily revenue is expected to be $1,000.

Marketing Plan   

Draw a table including your various marketing channels, their annual budget allocation and the rationale behind each selected channel.

For example, you can say: We will allocate 12,000 USD per year to run two radio campaigns, one in April and one in September. The purpose is to create awareness and attract people to try our seasonal coffee offers.

Section 5 – Operating Plan

In this section, provide answers to questions such as how you are going to run your café and explaining your initial costs, opening times, sourcing and production processes. Also, show the investors how you plan to build efficient procedures to ensure smooth running of the coffee shop.

This section can also help you iron out potential issues. For instance, if you expect to serve 125 people during lunch hours, will you be able to do that with only one full-time employee and three part-time employees? Or would you be much better off adding one more member to your team?

Also mention any certificate or license that you need to open the café, in addition to how you plan to train your employees, both full-time and part-time.

Sample Operational Plan

Our café will be open from 7.00 a.m. to 7.00 p.m. During normal hours, both owners and one full-time employee will take care of everything. During busy hours, we’ll add three part-time employees to our team.

We plan to purchase coffee wholesale at $80 per 10-pound package. At any time, the shop will have one week’s stock of coffee. For grinding the coffee beans, we’ll purchase a high-quality commercial grinder.

Pastries and other food menu items will be bought on a daily basis from a local supplier, who’ll deliver the goods half-an-hour before the shop opens, that is, latest by 6.30 a.m. This, in turn, will ensure commuters can easily and quickly grab a breakfast on-the-go.

We’ll ensure our coffee shop meets the guidelines set by the local food agency, and each of our employees, full-time or part-time, will undergo training before they join us on the floor.

Section 6 – Management Team

This section should answer the following questions:

Who owns the café?

Who will manage it?

What qualifications or relevant experience the owners have?

In case of multiple owners, how will you split the profits?

In case the owners won’t be managing the shop, share information about the person who will be in charge of the day-to-day operations.

The owners will run the shop. Each of the owners has over a decade experience in the food service, including management experience. We’ll hire one full-time employee to start with, who will be paid $20,000 per annum.

We plan to hire three part-time employees, each of whom will be paid at the rate of $11 per hour.

Section 7 – Financial Plan

This is the final section of your business plan. Describe here how your coffee shop will make money. Include the following information in your financial plan:

Operating and overhead costs

Revenue model

Income statement

Balance sheet

Expected revenue and profit

Capital needed and use of funds

Make sure to explain when you will reach break-even and analyze your gross and net profit margins.

Standard pro-forma financials are usually done for 3 years and some take it further to cover 5 years. For more information on how to build a solid coffee shop financial plan , we recommend you check our detailed guide here .

Final Words

Before you open a coffee shop, sit down and prepare a detailed business plan. As this guide shows, writing a business plan is not as difficult as many think.

Make sure you cover each of the sections mentioned in this article. Wherever possible, use charts, pictures, and graphs to simplify things for readers.

Last but not the least, avoid technical jargons, as they are likely to put off readers instead of adding any value to your business plan.

A coffee business plan is a vital document that will help you draw a detailed roadmap for a successful launch and execution. It is also a key document for potential investors and other stakeholders. If you don’t have time to create one, we’ve got you covered. Check our ready-made coffee shop business plan in Word with automatic financials in Excel, this is probably the fastest, most cost-effective solution to build an investor-grade coffee shop business plan in record time.

Download a Ready-Made Business Plan, Choose Your Industry:

• F&B Business Plans
• Services Business Plans
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I was a single mom and learned how to grocery shop on a budget. I meal-plan on the fly based on sales and still afford occasional treats.

• I was a single mom for seven years and learned to shop on a budget.
• I've since remarried, but I still use the skills I learned during that time when I grocery shop.
• I make sure to buy healthy food for my family without overspending.

As a single mom , I had to learn how to make my income work for my son and me. When it came to buying groceries, I was determined to prepare healthy meals for us without having to go broke in the process.

I have since remarried, but on a recent trip to the grocery store with my son, as he watched the self-checkout process closely, he asked, "Mom, how did you buy so much food for so little money?" That's when I noticed that I still retain a knack for shopping smart, both in terms of health and our budget .

While I now have a partner to split the costs of living with, our grocery bill has the potential to soar as food prices seem to rise weekly. After the mortgage, the cost of our monthly groceries is our next highest bill, so I've continued to use the skills I developed as a single mom when it comes to shopping for our food. Here's how I avoid sacrificing the health of our diet while maintaining our budget.

I shop for our groceries at multiple stores

When I first started comparing prices across different stores, I kept a notebook where I would jot down the prices of certain items I bought regularly, such as milk or peanut butter. Since then, I have memorized these prices and can tell you how much the same item costs at three different stores.

While shopping around at multiple stores might seem inconvenient and can take time, depending on whether you need to get all your shopping done the same day, it also saves me a lot of money. If I know I can get something for much less at another store we're going to soon anyway, I'll wait.

I've embraced meal planning on the spot

When shopping, I take advantage of sales and plan our meals for the week based on what's priced lowest. With meat, in particular, I buy what's on sale and then plan our dinners around that main dish. I do the same with vegetables. While certain produce items, like fresh carrots, are always affordable, other things, like asparagus, are not.

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I typically rely on produce that's always within our grocery budget , but when something we can't normally afford is on sale, I jump on the opportunity. This helps me switch up our dinners so that our meals don't feel monotonous, and we're also benefiting from eating a variety of foods.

With bulk items, I don't make assumptions

I have found that buying in bulk isn't always the best deal. If I have the choice between buying a six-pack or a 12-pack of the same item, I figure out the price-per-unit in each pack. Most of the time, I actually find that I wouldn't save enough money per item to make choosing the larger pack a better choice.

In fact, once I got in the habit of doing this, I found that the bulk packages may even cost more . Also, buying in bulk can make the bill soar beyond what we should be spending that week, so if it isn't a really good deal, I opt for the practical pack in terms of both budget and our storage at home.

Because I know I'm saving money, I also feel OK buying occasional treats

When I'm saving money overall, I can afford a few treats or higher-priced items. My son and I really love salmon, but it's rarely on sale. It's too pricey to buy every week, but I try to get it at least once a month.

Since it isn't something we get to have regularly, my son and I appreciate it and enjoy it even more. There are also seasonal items that we love, like cherries or spaghetti squash, but since they're on the expensive end, I try to only buy them when they're in season and at a lower price.

I know which foods I can rely on

I've grown to learn which foods are always affordable, nutritious, and enjoyable for my family. For example, bananas are always inexpensive, and they're good in so many ways, whether on the go as a snack with some peanut butter or thrown into a smoothie . There was a time in our life when my budget was particularly tight, and we ate a lot of baby carrots, frozen peas, canned black beans, and apples. For meat, bone-in chicken drums and thighs are the least expensive kind and can be elevated when roasted in the oven with some seasoning.

Most importantly, I still focus on buying what I know my family will enjoy eating. If something is cheap but we don't love it, then to me, that's just a waste of money. From being forced to work within a tight budget for so long without wanting to sacrifice our health and pleasure around food, I still analyze which items we love that are most affordable and know when it's appropriate to spend a little more.

• Main content

Money blog: Fans fume at 'disgusting' prices to see star of the moment: 'Even worse than Taylor Swift'

Welcome to the Money blog, your place for personal finance and consumer news and tips. Share your thoughts on any of the stories we cover in the box below.

Wednesday 24 July 2024 11:17, UK

• Fans fume at 'disgusting' prices to see star of moment: 'Worse than Taylor Swift'
• 'Sure sign worst is behind us': High street lender offers mortgage deal under 4%
• Ice cream prices rocket - but which has gone up the most?
• Nestle to bring back classic chocolate bar one last time
• Up to 600,000 Olympics tickets still up for grabs - here's where

Essential reads

• Ian King: Fears of retirement crisis resurface as number saving enough collapses
• Basically... What is equity? How it works, and how it can be used
• Best cheap eats in South Wales - according to a Michelin chef
• 'I constantly smell smoke from my neighbour's log burner - what can I do?'
• What happens when our gold mines run dry?
• Best of the Money blog - an archive of features

Ask a question or make a comment

Furious fans of Sabrina Carpenter have taken to social media to complain after many were unable to get tickets to her upcoming shows - with some claiming the process was worse than Taylor Swift's Eras Tour.

The chart-topping US singer - whose popularity has soared in recent months after the release of her hits Espresso and Please, Please, Please - is bringing her Short N' Sweet tour to the UK in March 2025.

Some had the chance to bag tickets to one of just four shows scheduled in the UK through yesterday's Ticketmaster presale.

But fans appeared to encounter issues, with some users saying they were "booted out", while others reported being unable to buy tickets once they'd reached the front of the queue despite them being seemingly available.

Several people said it was easier and cheaper to get tickets to Taylor Swift's billion-dollar Eras Tour, which attracted huge audience demand and led to her adding an extra run of London dates.

Others had complaints about the cost, with one person branding the £234 price for "nosebleed" seats "appalling" and another describing it as "disgusting".

Sky News has contacted Ticketmaster for comment.

Nationwide has become the first major lender to introduce a mortgage deal for less than 4%. 

It has cut rates across its two, three and five year fixed rate products by up to 0.25% today, with its lowest rate now standing at 3.99%. 

The move has been praised by brokers, who say it's a sign that momentum in the mortgage market is picking up, but some point out that it will only benefit those with a large deposit. 

Here are some of the new rates available: 

New customers moving home

• Five-year fixed rate at 60% LTV with a £1,4992 fee is 3.99%
• Five-year fixed rate at 60% LTV with a £999 fee is 4.04% 
• Two-year fixed rate at 80% LTV with a £999 fee is 4.87% 

First-time buyers

• Five-year fixed rate at 85% LTV with a £999 fee is 4.55%
• Two-year fixed rate at 85% LTV with a £999 fee is 4.95% 
• Five-year fixed rate at 60% LTV with a £1,4992 fee is 4.34%
• Five-year fixed rate at 60% LTV with a £1,4992 fee is now 4.27% 
• Two-year fixed rate at 75% LTV with a £999 fee is now 4.79%

Graham Cox, director of Self-Employed Mortgage Hub, says: "Nationwide dropping rates below 4% is a sure sign the worst of the mortgage market woes are well and truly behind us. 

"After several months of steadily increasing rates, the last month has seen consistent mortgage rate cuts from all the major lenders," he told Newspage. 

"With a base rate cut likely in August or September, we could see a big jump in property transactions in the coming months." 

Emma Jones, the director of When The Bank Says No, adds: "The sub-4% mortgage is back. 

"Even though it will only be available to borrowers with bigger deposits or more equity, this is a big moment and shows the momentum picking up in the mortgage market." 

Nationwide says the cuts reinforce its position as "one of the most competitive lenders in the market" and it is aiming to maintain its support for all types of borrowers. 

By James Sillars , business reporter

Bang! And the dirt is gone.

The company behind Durex and Nurofen has announced a big strategy shake-up that will include the sale of a portfolio of home care brands, including Cillit Bang and Calgon cleaning products.

Owner Reckitt Benckiser said it was part of a wider move to drive shareholder value that would be expected to result in some job losses.

It added that it was too early to put a figure on the numbers affected but signalled they would not be significant.

Shares rose more than 4% on the news, despite the company lowering its full-year sales growth outlook for 2024, blaming temporary supply disruptions within its nutrition business.

Among other companies reporting this morning amid a rush to clear the decks before the summer break was Aston Martin Lagonda.

The luxury carmaker's shares were 10% higher after it said the worst of its losses were now in the rearview mirror.

Aston revealed a pre-tax loss of £216.7m for the six months to the end of June, compared with a loss of £142.2m in the same period last year.

It has been making fewer vehicles ahead of the introduction of new models, including the DB12, which are expected to help turn its financial fortunes around.

Let's look at easyJet too.

The no-frills carrier saw its stock soar by 8% after it reported a 16% lift in profits during the third quarter of its financial year.

The company raised the annual forecast for its holidays division ahead of the summer rush.

The chief executive said, unlike his Ryanair counterpart on Monday, that fares were stable on last year rather than falling and that demand was solid.

The FTSE 100 opened 0.4% lower at 8,145 led by financial and technology stocks.

Hidden in overall grocery inflation - which stands at 1.6 per cent right now - are the huge rises in the price of some specific products we've seen over the past two years.

One of those is ice cream.

Cornetto and Solero are among the popular brands that have soared in price in the past two years.

Which? compared costs at the biggest supermarkets in the two months to July this year with the same period two years ago.

Cornetto's strawberry cones, the biggest riser, has increased by 38%.

The Cornetto Classico jumped by 35%, and Solero Exotics went up 35%.

This table sets out the biggest hikes...

Which? also found some supermarket own-brands did better in blind taste tests than the original brand and were a good option for consumers looking to avoid the biggest hikes.

For instance, Aldi's Gianni's tropico exotic fruit lollies, which cost £1.35 for three, scored 76% in a taste test - higher overall than Solero, which scored 70%.

And Asda, Lidl and Morrison's scored 77% with their strawberry ice cream cone tests, more than Cornetto's 65%.

Every Wednesday we ask top chefs to pick their favourite Cheap Eats where they live and when they cook at home. This week we speak to Tommy Heaney of the restaurant Heaneys Cardiff in the Welsh capital.

Hi Tommy, can you tell us your favourite places in south Wales where you can get a meal for two for less than £40?

I love what they are doing with the Cardiff Market, we've been crying out for a permanent street food market for years! My go-to is Tokyo Nights , fill your boots with homemade Gyoza and a banging tonkatsu sando.

The Bab Haus is another great spot that can be found in Newport, Barry and now Caerphilly. Leyli is one of the hardest working chefs I know, but more importantly she does a belting taco. 

My favourite is Beales Fish and Chips in Porthcawl, it's about 20 minutes from my house. 

Nothing is better than when the sun is out, loading up the van with the family and pups, grabbing some fish, chips, a battered sausage or two and curry sauce. Head to the beach, open the doors and just pig out in the back of the van.

What is your go-to cheap eat to cook at home when you have a night in?

A carbonara is my go-to when wanting a quick and easy meal at home. 

It's so simple - just five ingredients, which are all household staples. Don't overcomplicate it - all you need is garlic, bacon, spaghetti, parmesan and eggs. My twelve-year-old makes a banging one.

We've spoken to lots of top chefs and bloggers - check out their cheap eats from around the country here...

Nationwide has launched new savings opportunities for customers with the issue of fixed-rate online bond and fixed rate branch bond schemes - and savers only need £1 to open an account.

The new offer means savers who lock their money away - in this case for a year - have a chance to generate hundreds of pounds.

The new rates are:

• 1 Year Fixed Rate Online Bond - 4.5% AER
• 1 Year Fixed Rate Branch Bond - 4.5% AER

If you have £5,000 to invest, for example, you would earn £225 in interest a year. 

Tom Riley, director of retail products at Nationwide, told Sky News the new one-year bond scheme pay an increased rate and are a "competitive option for those who like to save with a high-street brand they know and trust".

"We offer a range of accounts to suit the different needs of savers," he said.

"Some of our best rates are available for those with a lump sum who can lock their money away for a longer period."

Not sure what AER means? We explained everything you need to know in our Basically... series recently:

Logan Paul and KSI's Prime energy drinks brand is being sued by the US Olympic and Paralympic Committee for trademark infringement. 

In its lawsuit, the committee alleges the brand used trademarked Olympic phrases and symbols on a special edition of its hydration drink, which features Olympic gold medallist and NBA forward Kevin Durant.

Lawyers say this was "wilful, deliberate, and in bad faith".

The lawsuit comes a year after the brand faced scrutiny over its potentially dangerous levels of caffeine.

IKEA is set to launch 100 more click-and-collect points at Tesco stores across the UK.

More than 90% of consumers will be within five miles of a collection point when it is complete.

The Swedish retailer recently announced it had opened its 100th mobile pick-up point after national roll-out began in 2022.

More than 150 employees at an Asda store in Cambridgeshire are set to walk out for a second time next week over poor working conditions. 

The GMB union confirmed that workers at the superstore in Wisbech will walk out from 3am to 10pm on 2 August.

Staff carried out their first strike in March this year.

It's no secret that many Britons do not save enough to live off in retirement.

The bad news is that the number of people falling into that category is rising.

The annual retirement report published today by Scottish Widows, the life company, reveals that the percentage of people not on track for even a minimum retirement lifestyle has risen from 35% to 38% during the past year.

That equates to an extra 1.2 million people.

The Pensions and Lifetime Savings Association (PLSA) defines a minimum retirement lifestyle as covering all the needs of a retiree "with some left over for fun and social occasions" - a holiday in the UK, a meal out once a month and "affordable leisure activities about twice a week".

It estimates the cost of such a lifestyle to be £14,400 for a single retiree or £22,400 for a retired couple.

The PLSA assumes retirees qualify for a full state pension, which rose to £11,500 a year at the start of the current tax year, with retirees currently qualifying for the state pension at the age of 66. 

This is due to rise to 67 between May 2026 and the end of 2028.

The report, based on interviews in March and April with 5,072 people saving for retirement and deemed to be representative of the UK population, suggests that most people would like to retire at the age of 62 but just over half, 54%, think they will have to work longer than they would like - on average by seven years.

Just over a quarter of those quizzed, some 27%, said they don't feel they will ever be able to retire.

You can read the rest of my analysis  here :

A middle-class getaway favourite has been found to sell the cheapest beer of Europe's top holiday destinations.

A 330ml bottle of beer costs just £1.74 in Italy's Puglia resorts - the cheapest of 16 destinations analysed in the annual Post Office holiday report, produced with TUI.

Resorts in the Algarve have the second cheapest beer, at an average of £2.04, while five cities charged more than £5 for a bottle (Dubrovnik, Paris, Dublin, Stockholm and Nice).

While Puglia was cheap on beer, it was found to be one of the most expensive destinations overall for a general family holiday. 

Laura Plunkett, head of travel money at the Post Office, said: "Even though sterling is stronger now than last July, price inflation across Europe means that families need to allow for increases in meals, drinks and other tourist costs in their spending budget."

Phillip Iveson, commercial director at TUI UK & Ireland, said: "It's clear that it's not just the UK that is impacted by the cost of living."

The first blind Barbie has been released by toy company Mattel as parts of its expanding collection of inclusive dolls.

The blind doll has features that allow accessible play for children with sight loss as well as representing a visually impaired woman.

It comes with a cane with a marshmallow tip, sunglasses, textured, vibrant fabrics and Velcro fastenings on clothing.

Blind broadcaster and disability activist Lucy Edwards was the first blind person in the UK to meet the new Barbie.

She told Sky News the Barbie was "amazing".

Ms Edwards, who lost the sight in her right eye at the age of 11 before losing her remaining sight at 17 due to a rare genetic condition, said when she lost her vision she was "so worried about holding a long white cane".

"I used to hate my cane but now I go on red carpets and I glitz and glamour it and I match it to my outfits and now we've got representation in the most popular doll in the world.

"If Barbie can be blind and be cool and look amazing, anyone can feel confident in their blindness too."

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