business plans of coffee

• QR Code Menu

How to Write a Successful Coffee Shop Business Plan (with Template)

• By Tam Nguyen

Table of Contents

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
• 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)

Investment Cost (One-off): $75,000

• Equipment: $30,000
• Renovations: $20,000
• Initial Stock: $10,000
• Licenses: $5,000
• Miscellaneous: $10,000

Operating Costs (Monthly): $17,000

• 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.

Related articles

QR Code on Table Tents for Restaurants and Bars

How much does it cost to open a small restaurant

How much does it cost to open a bakery

Menubly LLC 8 The Green Suite R, Dover, Delaware 19901

Privacy Policy

Terms of service

Cookie Policy

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?

Is a small coffee shop profitable, what percentage of coffee shops are successful, want to cook up another business plan.

How to create a bakery business plan

How to create a bar business plan

How to create a virtual assistant business plan

How to create a cleaning business plan

How to create a plumbing business plan

How to create a trucking business plan

How to create a daycare business plan

How to create a food truck business plan

How to create a restaurant business plan

How to create a clothing line business plan

How to create a hair salon business plan

How to create a real estate business plan

How to create a contractor business plan

How to create a vending machine business plan

How to create a party planning business plan

Looking for another business idea?

How to start an online business

How to start a consulting business

How to start a fitness business

How to start a fitness clothing line

How to start a makeup line

How to start a candle business

How to start a clothing business

How to start an online boutique

How to start a T-shirt business

How to start a jewelry business

How to start a subscription box business

How to start a beauty business

How to start a flower business

How to start a car wash business

How to start a food prep business

How to start a DJ business

How to start a pool cleaning business

How to start a baking business

How to start a trucking business

How to start a construction business

How to start a landscaping business

How to start a food business

How to start a vending machine business

How to start a contractor business

How to start a coaching business

Coffee dropshipping

Looking to start a business in a specific state?

How to start a business in Arizona

How to start a business in South Carolina

How to start a business in Virginia

How to start a business in Michigan

How to start a business in California

How to start a business in Florida

How to start a business in Texas

How to start a business in Wisconsin

Related Posts

How to create a website from scratch in 11 steps (for beginners)

How to start a business in 14 steps: a guide for 2024

How to start a coffee shop in 7 steps

Was this article helpful?

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

Entrepreneurs & Small Business

Accelerators & Incubators

Business Consultants & Advisors

Educators & Business Schools

Students & Scholars

AI Business Plan Generator

Financial Forecasting

AI Assistance

Ai Pitch Deck Generator

Strategic Planning

See How Upmetrics Works  →

• Sample Plans
• WHY UPMETRICS?

Customer Success Stories

Business Plan Course

Small Business Tools

Strategic Planning Templates

E-books, Guides & More

• 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.

Related Posts

Coffee Roaster Business Plan

Coffee Truck Business Plan

Financial Guide for New Startups

Cost To Start a Coffee Shop

Best Business Plan Writer

How to Start a Coffee Shop Business

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

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

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.

Other Stories to Check out

How to finance a small business acquisition.

In this article we are going to walk through how to finance a small business acquisition and answer some key questions related to financing options.

How to Acquire a Business in 11 Steps

Many people don't realize that acquiring a business can be a great way to become a business owner if they prefer not to start one from scratch. But the acquisition process can be a little intimidating so here is a guide helping you through it!

How to Buy a Business with No Money Down

Learn the rare scenarios enabling the purchase of a business with no money down and delve into the complexities of selling via seller notes, highlighting the balance of expanded opportunities and inherent risks in these unique financial transactions.

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

• Get Started

Home >> #realtalk Blog >> Manage a business >> How to Write a Coffe…

How to Write a Coffee Shop Business Plan

By Shannon Mulligan

Opening a coffee shop is an exciting endeavor. But before you can open your doors and pour that first cup of joe, you need a coffee shop business plan.

But what is a business plan? Why is it important? And do you really need one?

We’re breaking down everything you need to know so you can brew up your own coffee shop business plan with ease.

What is a business plan for a coffee shop?

A coffee shop business plan is a document that covers your business goals and everything you’re going to do to reach them. 

A business plan goes into all the details about your business, from the location of your coffee shop to where you’re going to source your coffee beans. Put simply, it breaks down how your coffee shop is going to be a success.

Plan for success.

Writing out a coffee shop business plan can feel a bit tedious and unnecessary. And we won’t lie, they do take a bit of time and effort. 

But every business, no matter big or small, should have a business plan in place. A business plan for your coffee shop will help you:

• Set business goals and keep you on track to reach them. A business plan acts as a roadmap to help your coffee shop business become (and stay) successful.
• Identify any gaps in your business ahead of time. We’re only human. We all miss things from time to time. A well-written business plan can help you catch any mistakes or potential problems before they cost you.
• Manage your to-do list before opening your coffee shop. Opening any business is a huge undertaking. A business plan covers all your bases from location to hiring , so you don’t miss anything before opening day rolls around.
• Secure any financing or loans you might need. Banks or investors often want to see a business plan before they’ll offer you loans or even financial products like a business credit card.

Things to consider before you start.

Now that you know that you need a business plan, it’s time to grab your favorite cup of coffee and start thinking about the important stuff.

To help, here are some things to consider before you start writing your business plan.

• What will make your coffee shop business successful? Will you offer a unique specialty coffee selection? Are you going to open in a location with a high demand for coffee?
• Who is the target audience for your business plan? Different stakeholders will likely have different goals when reading your business plan. Banks and investors might be more interested in your financial forecasts. Meanwhile, potential suppliers might care more about your product offering to make sure that your coffee shop is a good fit for their products 
• What information or research will you need to create an informed business plan? A coffee shop business plan will look different than that of a salon or even a bakery. Take some time to think about what information you’ll need to research. For example, before you can write your business plan, you’ll likely need to know the cost of a coffee maker or the average hourly wage of a barista .

How to write a coffee shop business plan in 7 steps

If you’ve never written a business plan before, it can feel more complicated than a grande mocha frappucino with extra whip, hold the syrup. But don’t worry, we’re breaking down the key sections of a coffee shop business plan, so you know exactly how to get started.

Here are the 7 steps and sections you’ll need to write your coffee shop business plan.

1. Executive summary

This is a high-level overview of your coffee shop business plan—the TL;DR of the business plan if you will.  Here, you’ll want to outline the important details in your business plan, but also tell an engaging story that makes the reader want to dive into the rest of your business plan.

Tip: This is the first section someone will read—but you don’t have to write it first. It can be helpful to come back to this section once you’ve finished the rest of your business plan.

2. Company overview and description

This next section in your coffee shop business plan is an overview of your business and your goals. 

In this section, you should answer questions like:

• Who’s the founder or business owner? (AKA who are you and what is your background?) 
• Why did you decide to start a coffee shop?
• What’s your vision for your coffee shop?

3. Market analysis

A market analysis in a business plan helps position your coffee shop against other coffee shops, You want to show how you measure up to competitors or similar businesses. 

For example, as a coffee shop owner you might identify competing coffee shops in the area, or even other competitors like fast-food chains. In your market analysis, you might even look at other successful similar businesses that you can use to show why your coffee shop will be a success. For example, let’s say you’re opening a coffee shop that’s open 24 hours. You can use examples of other 24-hour coffee shops in other areas that you can model your business after.

4. Business offerings

This is where things start to get exciting—you finally get to talk about coffee! 

The business offerings section of your business plan should include everything that you’ll offer to potential customers. For a coffee shop, this will likely include your potential coffee menu.  But if you have other products or services—like selling coffee beans or offering coffee machine repairs—you’ll want to include those here too.

5. Management and operations

Here’s where you’ll cover the day-to-day management and operation of your coffee shop. For example, you’ll want to outline details like: 

• The expected costs of operating your business 
• How many employees you’ll hire
• Your point of sale (POS) system
• How you’ll manage inventory

6. Marketing and public relations strategies

In this section, you should explain how you plan to spread the word. 

Will you hire a marketing agency ? Will you mail out flyers? Do you have any media connections that will help you earn PR?

Basically, you need to show that you have a plan for promoting your business.

7. Financial projections

Last but not least, it’s time to talk money. 

Financial projections provide insight into your revenue and expenses over the short and long term. They aren’t an exact science, but you’ll want to provide an educated estimate. Your financial projections should typically include:

• Your start-up costs: This includes any one-time costs that you’ll incur to open your doors. For example, renovating the interior of your coffee shop.
• Operating costs: This includes expenses like rent, marketing, and utilities. You’ll also need to consider materials and supplies, such as coffee and cups.
• Labor costs: This is the cost of employing any baristas, hosts, or cashiers. For example, wages, cost of employee benefits , and hiring costs.
• Forecasted revenue: This includes any money you’ll earn from coffee sales or any other products and services you might offer.

The goal is to show that your coffee shop business will be profitable.

Let’s get things brewing.

Business plan written and ready to go? It’s time to start growing your coffee shop. From hiring your first employee to opening your second coffee outpost, Homebase is here to help.

Homebase is an all-in-one employee management app that helps small business owners manage hourly employees better and smarter. 

With Homebase, you can:

• Create employee schedules in minutes
• Track employee time and run payroll right from your phone
• Hire and onboard employees for your coffee shop

Coffee shop business plan FAQs

Do you need to create a business plan for a coffee shop.

Yes. Every business, including a coffee shop, should have a business plan. Your business plan should include an overview of your business, what products and services you’ll offer, how you’ll manage and market your business, and financial projections.

How profitable is opening a coffee shop?

How profitable opening a coffee shop will be can depend on several factors. But generally, coffee shops can be a pretty profitable business. A business plan can help you project your revenue, costs, and profit—so you can feel confident growing your coffee shop.

How do you start a business proposal for a coffee shop?

Here are a few steps for how to start writing an effective business proposal for a coffee shop:

• Start with an executive summary.
• Create your coffee shop company overview and description.
• Do a market analysis of competitors and similar businesses.
• Decide on your business offerings.
• Put a plan in place for managing and operating your business.
• Create a marketing and PR plan.
• Forecast your sales and business costs.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

Related posts

March 25, 2024

How to Start a Cleaning Business in 6 Steps

So you want to start a cleaning business. You want to work for yourself, you love a good Mr. Clean…

March 22, 2024

How to Start a Construction Business in 8 Easy Steps

Being able to build something from the ground up is an incredible skill: a skill you can monetize into your…

January 19, 2024

How To Write A Bakery Business Plan

Looking to open up your very own bakery? It’s probably safe to say that you’d rather spend your days perfecting…

January 12, 2024

How to Start a Bakery Business in 10 Steps

There are few things in this life as incredible and instantly transformative than a fresh pastry. Warm, gooey, delectable. If you’re…

December 7, 2023

How To Write a Salon Business Plan

So you’re thinking of opening a salon business—congrats! Gearing up to owning your own business is a huge step. But…

December 5, 2023

How to Start a Catering Business in 10 Steps

There are a lot of reasons to take a love of cooking down the path of entrepreneurship with a catering…

Subscribe to our newsletter

Looking for ways to stay up to date on employment laws and small business news?

Homebase makes managing hourly work easier for over 100,000 local businesses. With free employee scheduling , time tracking , and team communication , managers and employees can spend less time on paperwork and more time on growing their business.

• Hiring & onboarding
• Team communication
• Employee happiness
• HR & compliance
• Integrations
• Food & beverage
• Beauty & wellness
• Medical & veterinary
• Home & repair
• Hospitality & leisure
• Education & caregiving
• Contact sales
• Become a Partner
• Careers – We’re hiring!
• #realtalk Blog

• Try it out »

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.

Click To Tweet

2 thoughts on “ The Ultimate Coffee Shop Business Plan and Template ”

Sample Coffee Shop Business Plan

Writing a business plan is a crucial step in starting a coffee shop. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring coffee shop business owners, having access to a sample coffee shop business plan can be especially helpful in providing direction and gaining insight into how to draft their own coffee shop business plan.

Download our Ultimate Coffee Shop Business Plan Template

Having a thorough business plan in place is critical for any successful coffee shop venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A coffee shop business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The coffee shop business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your coffee shop as Growthink’s Ultimate Coffee Shop Business Plan Template , but it can help you write a coffee shop business plan of your own.

Coffee Shop Business Plan Example – BeanBrews Corner

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

At BeanBrews Corner, we’re proud to introduce our community-focused coffee shop located in the heart of the city’s bustling downtown area. Our mission is to serve high-quality, artisanal coffee and a selection of gourmet pastries and sandwiches, catering to both the early morning rush and the leisurely afternoon crowd. Our establishment is not just about serving great coffee; it’s a place where patrons can feel at home, whether they’re grabbing a quick takeaway or settling in for a few hours of work or relaxation. With our prime location and commitment to excellence in every cup, BeanBrews Corner aims to become a beloved staple in our local community, offering a warm, welcoming atmosphere that coffee lovers will cherish.

Our journey at BeanBrews Corner has been marked by several key success factors and accomplishments. Our focus on high-quality ingredients, coupled with our staff’s expertise in coffee brewing, has allowed us to offer a distinctive selection of coffee blends and drinks that stand out in the market. Our location has also played a crucial role in our success, providing us with high foot traffic and visibility. To date, we’ve successfully fostered a loyal customer base through our exceptional service and inviting atmosphere. Additionally, our engagement with the local community through events and partnerships has strengthened our brand presence and contributed significantly to our growth.

The coffee shop industry is experiencing a period of robust growth, driven by increasing consumer demand for specialty coffee and a rising culture of coffee appreciation. This industry is characterized by its high competitiveness and the importance of location, product quality, and brand differentiation. There is a significant trend toward sustainability and ethical sourcing of coffee beans, as well as an increasing preference for unique and customizable coffee experiences. Given these trends, BeanBrews Corner is positioned to thrive by focusing on quality, sustainability, and creating a unique customer experience that resonates with the values and preferences of today’s coffee enthusiasts.

Our target customers range from busy professionals seeking a quick coffee fix to students and remote workers looking for a cozy place to spend several hours. We also cater to coffee aficionados who appreciate the art of coffee making and seek unique blends and brewing techniques. Recognizing the diverse needs of our clientele, we’ve designed our product offerings and store layout to create a welcoming environment for everyone. Our approach to customer service is tailored to make every visit memorable, ensuring that BeanBrews Corner becomes a preferred destination for a wide range of coffee lovers in our community.

Java Joe’s: A chain with a wide selection of coffee and quick service. The Grind: Known for its cozy atmosphere and strong community engagement. Café Artisan: Focuses on high-end, specialty coffee offerings.

Our competitive advantages lie in our commitment to quality, our prime location, and our strong community ties. Unlike our competitors, we balance the convenience of quick service with the experience of enjoying artisanal coffee in a welcoming environment, making us a go-to spot for a broad customer base.

Our product line includes a wide variety of artisanal coffees, gourmet pastries, and sandwiches, with a focus on quality and uniqueness. Our pricing strategy is competitive, aimed at offering value for premium products. To promote BeanBrews Corner, we leverage social media, local events, and word-of-mouth, emphasizing our community involvement and unique offerings. We plan to introduce loyalty programs and seasonal promotions to encourage repeat business and attract new customers.

At BeanBrews Corner, our daily operations are centered around ensuring excellence in every aspect of our service. This includes meticulous inventory management, strict quality control, outstanding customer service, maintaining cleanliness and hygiene, efficient order fulfillment, effective financial management, strategic staff management, proactive marketing and promotion efforts, attentive feedback collection, and responsible energy and resource management. Our operational milestones include achieving consistent customer satisfaction, expanding our product offerings, and implementing sustainable practices across all operations.

Our management team at BeanBrews Corner brings together individuals with a passion for coffee and a wealth of experience in the hospitality industry. Led by our founder, a seasoned barista and entrepreneur, our team includes experts in operations, marketing, and customer service. Together, we share a commitment to creating an unrivaled coffee experience for our customers, fostering a positive work environment for our staff, and contributing to our community’s vibrancy. Our collective expertise and dedication are the driving forces behind our success and growth.

Welcome to BeanBrews Corner, a fresh and vibrant coffee shop nestled in the heart of Charlotte, NC. As a local coffee shop, we pride ourselves on filling a much-needed gap in the area—a high-quality, local coffee experience. Our passion for coffee, combined with a commitment to our community, drives us to serve not just a drink, but an experience.

At BeanBrews Corner, our menu boasts a wide range of offerings designed to cater to diverse tastes and preferences. Our coffee beverages stand out for their quality and variety, ensuring every coffee lover finds their perfect cup with us. For those who prefer a different kind of warm comfort, our tea selection offers both classic favorites and unique blends. But we don’t stop at drinks; our pastries and bakery items are the perfect companions to our beverages, made fresh daily. For those looking for something more substantial, we offer a selection of sandwiches and snacks, ideal for a quick lunch or a leisurely afternoon treat. And for those special occasions or simply to indulge, our specialty drinks provide a unique BeanBrews Corner experience.

Our location in Charlotte, NC, is no accident. We chose this vibrant city to be close to our customers, understanding their needs and being part of the community we serve. It’s not just about serving coffee; it’s about creating a space where people can gather, share, and connect.

BeanBrews Corner’s potential for success is rooted deeply in several key factors. Our founder brings invaluable experience, having previously run a successful coffee shop. This experience guides our vision and operations, ensuring we understand the intricacies of creating a beloved coffee destination. Furthermore, our commitment to quality sets us apart; we confidently claim to make better coffee than our competition, supported by our extensive variety of coffee and tea options. This combination of experience, quality, and variety positions us uniquely in the market, ready to become a favorite among the coffee-loving community of Charlotte.

Since our founding on January 6, 2024, we’ve made significant strides as a Limited Liability Company. Our journey began with the essentials: developing a company name that resonates with our vision, designing a logo that reflects our brand, and securing a great location that meets the needs of our customers and our business. These accomplishments are just the beginning of our story—one that we are excited to continue writing with our community in Charlotte.

The Coffee Shop industry in the United States is currently a thriving market, with an estimated size of over $45 billion. This figure reflects the growing popularity of coffee culture and the increasing demand for specialty coffee beverages among consumers. With a steady increase in coffee consumption over the years, the industry is expected to continue its growth trend in the coming years.

One of the key trends in the Coffee Shop industry is the shift towards customization and personalization. Consumers are looking for unique and personalized experiences when it comes to their coffee choices, driving the demand for specialty coffee shops like BeanBrews Corner. With a focus on providing high-quality, customizable coffee options, BeanBrews Corner is well-positioned to capitalize on this trend and attract a loyal customer base in Charlotte, NC.

Furthermore, the increasing preference for convenient, on-the-go coffee options has also been a driving force in the industry. With more consumers opting for quick and efficient coffee solutions, BeanBrews Corner can leverage this trend by offering fast service and grab-and-go options for busy customers. By aligning its offerings with the current market trends, BeanBrews Corner can establish itself as a competitive player in the Coffee Shop industry in Charlotte, NC.

Below is a description of our target customers and their core needs.

Target Customers

BeanBrews Corner will target a diverse range of customers, with local residents forming the core of its clientele. These individuals, seeking convenience along with quality coffee and a comfortable space to relax or work in, will find BeanBrews Corner especially appealing. The shop will tailor its offerings to meet the preferences and needs of this group, ensuring a steady flow of patrons from the surrounding neighborhoods.

Commuters and professionals working in or near Charlotte will also constitute a significant customer segment for BeanBrews Corner. The shop will provide a quick and efficient service for those in need of a morning coffee fix or a casual meeting spot. By offering Wi-Fi and work-friendly spaces, BeanBrews Corner will cater to the demands of this busy demographic, establishing itself as a go-to spot for both convenience and quality.

Moreover, BeanBrews Corner will also attract students and young adults looking for a cozy place to study, socialize, or enjoy artisan coffee. This segment values atmosphere as much as the quality of the coffee, and thus, the shop will create a welcoming and vibrant environment. Special promotions and events aimed at this demographic will further ensure their loyalty and frequent visits.

Customer Needs

BeanBrews Corner provides high-quality coffee that meets the expectations of residents with a discerning taste. Customers can savor an array of expertly crafted beverages, ensuring that their desire for premium coffee is fully satisfied. This commitment to excellence sets the foundation for a loyal customer base that values superior taste and quality.

In addition to serving top-tier coffee, BeanBrews Corner creates a welcoming atmosphere where individuals and groups can gather, work, or relax. The shop offers comfortable seating and complimentary Wi-Fi, catering to the needs of remote workers, students, and casual meet-ups. This environment encourages customers to spend time enjoying their coffee, fostering a sense of community and belonging.

BeanBrews Corner understands the importance of convenience for its customers. The coffee shop provides options for quick service, including online ordering and a mobile app for fast pick-ups. This ensures that even the busiest customers can enjoy their favorite beverages without significant delays, meeting the modern need for efficiency and time management.

BeanBrews Corner’s competitors include the following companies:

Summit Coffee – SouthPark:

Summit Coffee – SouthPark offers a wide variety of coffee blends and specialty drinks, as well as a selection of baked goods and light bites. Their price points cater to the mid-range consumer, providing a balance between affordability and premium quality. The revenue generated by Summit Coffee – SouthPark signifies a strong presence in the Charlotte market, with growth reflecting a loyal customer base and effective marketing strategies.

Summit Coffee – SouthPark operates primarily in the SouthPark area, serving a diverse clientele that includes young professionals, families, and students. Their key strength lies in their commitment to sustainability and community involvement, which resonates well with their customer segment. However, their location, while advantageous for reaching a specific demographic, may limit their geographical reach compared to competitors with multiple outlets.

Mugs Coffee:

Mugs Coffee is known for its cozy atmosphere and a broad selection of coffee and tea options, alongside a variety of sandwiches, pastries, and vegan options. They position themselves at a competitive price point, appealing to budget-conscious consumers without compromising on quality. The revenue of Mugs Coffee suggests a steady flow of regular customers and a positive reception in the local market.

With its location in a bustling neighborhood, Mugs Coffee attracts a mix of students, freelancers, and local residents looking for a comfortable place to work or relax. One of their key strengths is the welcoming environment and free Wi-Fi, making it a popular spot for work and study. A potential weakness for Mugs Coffee is the limited seating capacity, which can deter larger groups or peak-hour customers.

Thousand Hills Coffee:

Thousand Hills Coffee prides itself on its direct trade coffee, offering a premium range of single-origin coffees and artisanal blends. Their price points are on the higher end, targeting coffee connoisseurs and those willing to pay a premium for ethically sourced beans. The revenue trends for Thousand Hills Coffee indicate a niche but growing market share, benefiting from the increasing consumer interest in sustainable and ethical consumption.

Thousand Hills Coffee serves the greater Charlotte area, with a particular focus on the upscale market segment, including professionals and ethically conscious consumers. Their key strength is their commitment to quality and ethical sourcing, which distinguishes them from competitors. However, their premium pricing and niche focus could limit their appeal to a broader audience, potentially impacting their market reach.

Competitive Advantages

At BeanBrews Corner, our commitment to quality sets us apart in the vibrant Charlotte coffee scene. We pride ourselves on making better coffee than our competition, a claim rooted in our meticulous selection of beans and our perfected brewing techniques. Our baristas are artisans, trained in the craft of coffee making, ensuring each cup exceeds our customers’ expectations. This dedication to quality is not just a promise but a reality that can be tasted in every sip. Our customers come back not just for the coffee, but for the assurance of excellence that comes with every visit.

Furthermore, our variety is unmatched. We offer an extensive range of coffee and tea varieties, catering to the diverse preferences of our community. Whether a customer seeks the comfort of a classic espresso or the adventure of trying a new, exotic blend, we have something to satisfy every palate. This extensive selection allows us to provide a unique experience for each customer, making BeanBrews Corner a destination for both coffee aficionados and casual drinkers alike. Our variety extends beyond beverages; our cozy, welcoming space is designed to suit a range of needs, from a quiet spot for studying to a comfortable venue for social gatherings.

In addition to our superior coffee and wide variety, our location offers an added advantage. Situated in a convenient spot in Charlotte, we are easily accessible to both locals and visitors, making us a popular choice for anyone in search of quality coffee in a comfortable setting. This strategic location, combined with our commitment to excellence and variety, positions BeanBrews Corner as a leading coffee shop in the area, inviting more customers to discover the unique experience we offer.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

At BeanBrews Corner, customers can indulge in a variety of meticulously crafted coffee beverages. The coffee menu encompasses everything from the classic espresso to more contemporary concoctions, ensuring there’s something for every coffee enthusiast. With an average price point of $3 for a basic coffee to around $5 for more intricate beverages, patrons can enjoy high-quality coffee without breaking the bank.

Aside from coffee, BeanBrews Corner offers a broad selection of teas to cater to non-coffee drinkers or those simply in the mood for something different. From traditional black and green teas to herbal and fruit-infused blends, the tea selection is designed to satisfy a wide range of palates. Prices for tea beverages are generally in the range of $2 to $4, making it an affordable option for tea lovers.

Complementing the beverage options, BeanBrews Corner also boasts an assortment of pastries and bakery items. Whether customers are in the mood for a sweet treat or a savory snack, the bakery section offers fresh, daily-made options including croissants, muffins, and scones, with prices averaging between $2 and $5. These bakery items are perfect for pairing with a cup of coffee or tea.

For those seeking a more substantial meal, the coffee shop also serves a variety of sandwiches and snacks. From gourmet sandwiches to wraps and salads, there’s something to satisfy any appetite. These menu items are ideal for lunch breaks or a quick, healthy snack, with prices ranging from $5 to $8, offering both value and quality.

Last but not least, BeanBrews Corner prides itself on its specialty drinks menu, which includes a range of unique and seasonal beverages. These specialty drinks are a testament to the creativity and passion of the baristas, showcasing flavors and combinations that can’t be found elsewhere. With an average price of $4 to $6, these specialty drinks offer a unique experience for those looking to try something new and exciting.

In summary, BeanBrews Corner caters to a wide range of tastes and preferences with its extensive menu of coffee and tea beverages, pastries, sandwiches, and specialty drinks. With its focus on quality, affordability, and variety, it’s the perfect spot for anyone looking to enjoy a delicious beverage or snack in a welcoming atmosphere.

Promotions Plan

BeanBrews Corner embraces a comprehensive promotional strategy to attract a vibrant customer base. At the heart of its efforts lies a robust online marketing campaign. The coffee shop leverages social media platforms such as Instagram, Facebook, and Twitter to engage with potential customers. By posting captivating content, including high-quality images of their coffee and pastries, BeanBrews Corner will build a strong online presence. Moreover, the shop will utilize targeted ads to reach coffee enthusiasts within Charlotte, NC, ensuring that their marketing efforts resonate with the local community.

In addition to online marketing, BeanBrews Corner will implement several other promotional tactics. The coffee shop will initiate a loyalty program to encourage repeat business. Customers will accumulate points with every purchase, which they can redeem for discounts or free items. This program not only incentivizes frequent visits but also fosters a sense of belonging among customers.

Furthermore, BeanBrews Corner will harness the power of local partnerships. By collaborating with nearby businesses and community organizations, the shop will gain exposure to a broader audience. These partnerships could include coffee pop-ups at local events or offering exclusive discounts to employees of partner organizations. Such collaborations will bolster BeanBrews Corner’s visibility and reputation within the community.

Email marketing will also play a crucial role in BeanBrews Corner’s promotional efforts. By collecting email addresses both in-store and online, the shop will send out regular newsletters. These newsletters will feature new products, special promotions, and upcoming events, keeping customers informed and engaged.

To cap off its promotional strategy, BeanBrews Corner will host a grand opening event. This event will not only serve as a celebration of the shop’s launch but also as an opportunity to showcase its offerings to the community. Live music, free samples, and special deals will attract a large crowd, generating buzz and excitement around the brand.

In summary, BeanBrews Corner employs a multifaceted promotional strategy encompassing online marketing, loyalty programs, local partnerships, email marketing, and a grand opening event. By executing these tactics, BeanBrews Corner will attract and retain a loyal customer base, establishing itself as a cherished destination for coffee lovers in Charlotte, NC.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of BeanBrews Corner, there are several key day-to-day operational processes that we will perform.

• Inventory Management: We continuously monitor our stock levels to ensure we have all necessary ingredients and supplies, such as coffee beans, milk, and paper cups. This enables us to serve our customers without delay.
• Quality Control: Daily checks are performed on our coffee machines and grinders to maintain the highest quality of coffee. We also taste our coffee throughout the day to ensure consistency in flavor.
• Customer Service: Our staff engages with customers in a friendly and helpful manner, taking orders accurately and providing recommendations when asked. We ensure a welcoming atmosphere for all customers.
• Cleanliness and Hygiene: Regular cleaning schedules are maintained throughout the day to ensure the shop, including the kitchen and seating areas, is clean and hygienic. This also includes sanitizing surfaces and equipment regularly.
• Order Fulfillment: We efficiently manage the queue and prepare orders promptly while ensuring that every coffee served meets our quality standards. This minimizes wait times and improves customer satisfaction.
• Financial Management: Daily sales are tracked, and expenses are monitored to manage the shop’s budget effectively. This includes performing cash handling duties and preparing deposits.
• Staff Management: We schedule staff shifts to ensure adequate coverage during peak hours and manage the workload effectively. Staff training sessions are also conducted regularly to improve service quality.
• Marketing and Promotion: We engage with our customers on social media platforms to promote our daily specials and upcoming events. This helps in building a community around our brand and attracting new customers.
• Feedback Collection: We encourage customers to provide feedback on their experience and suggestions for improvement. This information is used to make necessary adjustments to our service and offerings.
• Energy and Resource Management: We implement measures to reduce energy consumption and waste, such as using energy-efficient appliances and recycling, to ensure our operations are sustainable.

BeanBrews Corner expects to complete the following milestones in the coming months in order to ensure its success:

• Securing a Prime Location : Identify and secure a lease for a location that is visible, accessible, and situated in a high-traffic area within Charlotte, NC, to ensure a steady flow of potential customers.
• Obtaining Permits and Licenses : Successfully navigate the local regulatory environment to obtain all necessary permits and licenses required to legally operate a coffee shop in Charlotte, NC. This includes health department permits, business licenses, and any other local requirements.
• Building Out the Coffee Shop : Complete the interior design, purchase, and installation of all necessary equipment and furniture to create a welcoming and efficient space for customers. This also includes ensuring the space meets all health and safety standards.
• Hiring and Training Staff : Recruit, hire, and thoroughly train a team of baristas and support staff who are passionate about coffee and customer service. This team will be crucial in creating a positive customer experience and building a loyal customer base.
• Marketing and Promotional Activities : Implement a strategic marketing plan that includes a grand opening event, social media campaigns, and local community engagement to generate buzz and attract customers to the shop.
• Launch Our Coffee Shop : Officially open BeanBrews Corner to the public, ensuring that all operational, staffing, and marketing elements are in place for a successful launch.
• Establishing Supplier Relationships : Secure relationships with high-quality coffee bean suppliers, local bakeries, and other necessary vendors to ensure a consistent and premium product offering.
• Implementing a Customer Loyalty Program : Develop and launch a loyalty program or system to encourage repeat business and build a dedicated customer base.
• Monitoring and Adapting Operations : Regularly review operational efficiency, customer feedback, and financial performance to identify areas for improvement and adapt strategies accordingly.
• Get to $15,000/Month in Revenue : Reach the critical financial milestone of generating $15,000 in monthly revenue, which indicates a growing customer base and operational success. This will involve continuously optimizing the menu, pricing strategies, and marketing efforts to increase sales.

BeanBrews Corner management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Benjamin Taylor, CEO

With an impressive track record in the coffee shop industry, Benjamin Taylor brings a wealth of experience to his role as CEO of BeanBrews Corner. His previous success in running a coffee shop demonstrates his deep understanding of the business, from operations to customer satisfaction. Benjamin’s leadership skills, combined with his passion for coffee and commitment to excellence, make him uniquely qualified to lead BeanBrews Corner towards lasting success. His experience not only in managing day-to-day operations but also in strategic planning and execution, places BeanBrews Corner in capable hands.

To achieve our growth goals, BeanBrews Corner requires a strategic investment in marketing, product development, and further establishment of our community presence. This investment will support our expansion plans, including enhancing our existing location, extending our product range, and implementing innovative marketing strategies to attract a broader customer base. Our financial strategy is designed to ensure sustainable growth while maintaining our commitment to quality and community engagement.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Coffee Shop Business Plan Example PDF

Download our Coffee Shop Business Plan PDF here. This is a free coffee shop business plan example to help you get started on your own coffee shop plan.  

How to Finish Your Coffee Shop Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your coffee shop business plan?

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

Coffee Shop Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Coffee Shop Business Plan

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

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

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

Coffee Shop Business Plan Sample

Below are links to each section of our coffee shop business plan example:

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is a coffee shop business plan.

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

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

What Are the Main Types of Coffee Shops?

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

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

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

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

How Much Does it Cost to Start a Coffee Shop?

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

How Do You Get Funding for Your Coffee Shop Business?

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

How to Start a Coffee Shop?

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

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

• How to Start a Coffee Shop Business

Where Can I Get a Coffee Shop Business Plan PDF?

You can download our free coffee shop business plan template PDF here . This is a sample coffee shop business plan template you can use in PDF format.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

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

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

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.

The quickest way to turn a business idea into a business plan

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

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

How To Create A Coffee Shop Business Plan: Step By Step

Opening a coffee shop is both exciting and challenging.

If you want your business to succeed, learning how to write a coffee shop business plan is important .

Coffee shop owners enjoy a great deal of freedom when it comes to the products and services they offer, the decor within the establishment, the people they hire, and many other aspects of the business.

Even small coffee shops can turn a substantial profit. Why?

Well, coffee shops also add value to the surrounding community, giving residents a safe, uplifting place to gather.

However, some coffee shops will fail .. In fact, the U.S. Small Business Administration reports that approximately one-third of small businesses will fail within the first two years.

By the end of five years, half of all small businesses will fail. To give your coffee shop the best chances of success from the first moment the doors open, you need a solid business plan. To create an effective business plan, follow the steps below.

Competition

Company overview, exit strategy, step 1: brainstorming and market research.

Before you begin writing your coffee shop business plan, spend some time learning about business plans in general. Business plans for all types of businesses usually have six different sections: executive summary, opportunity, execution, company and management summary, financial plan, and appendix.

You should have an executive summary at the beginning of your business plan, although it may well be the last part of the plan that you write.

It is also a good idea to spend some time brainstorming basic ideas for your new coffee shop and performing market research. Write down any ideas you have for the business so you can refer to them later. As you research the market, be sure to focus on your specific region for the best results.

If other people will have a stake in the business, consider including these individuals in the process of brainstorming and writing the business plan.

Step 2: Opportunity Section

The next step in completing your business plan involves constructing the opportunity section of the document. This section focuses on defining several key components of your business, including the products you intend to provide, the problems you will solve within the community or market, your target consumer, and your competition.

Identifying Problems And Solutions

Begin this part of the plan by outlining the problem you will solve for consumers and how your solutions will be different from the competition. Some examples of problems a new coffee shop may solve include:

• Consumers have no access to gourmet coffee within a reasonable driving distance.
• Consumers lack good places to congregate in town.
• Consumers have access to inferior coffee and/or bakery options only.
• The area’s coffee shops have poor service, high prices, or some other characteristic that causes problems for customers .

Now, describe the strategy you will use to solve the problem you have defined.

For example, if you are establishing the town’s first coffee shop, you may be hoping to provide consumers with access to gourmet coffee and bakery products closer to home. On the other hand, if you will be competing with other coffee shops in the area, you may be hoping to provide better quality products, a better atmosphere, and/or better prices.

Target Market

Your business plan’s opportunity section should also define your target market. Although you may be hoping that your new coffee shop will appeal to everyone in the area, you need to narrow down this target market, so you can focus your efforts on the people most likely to frequent your establishment.

For example, your target market may be young adults between the ages of 18 and 35.

Alternatively, you may be looking to advertise as a family-friendly establishment, focusing your efforts on people with children. In some cases, you may define two or more market segments you hope to target.

To complete the opportunity section of your business plan, take some time to research and describe your coffee shop’s competition. Are there other businesses in the area offering the same types of solutions?

Examples may include small coffee shops, as well as chains. If you plan to sell baked goods along with coffee, you may consider local bakeries or counter service restaurants as competition as well.

Step 3: Execution Plan

The execution section of your business plan focuses on the exact strategies and tools you will use to bring your coffee shop vision to life. This section will include information about marketing plans, sales strategies, the specifics of your operations, and your goals and objectives for the business.

This section of your business plan is one of its most important components, as it gets into the details as to how you plan to run your business and achieve success.

Marketing Plan

The purpose of this part of your business plan is to determine how you will reach your target market and draw them into your coffee shop. This plan should include details about the pricing structures you will use for the different products you serve, as well as information about your advertising strategies.

Begin the marketing plan by crafting a position statement. This statement describes how you will present your coffee shop to customers and how you will set yourself apart from the competition.

For example, your position statement may describe your business as a high-end gourmet establishment with quality products that aren’t available anywhere else.

On the other hand, if you are hoping for a more casual coffee shop, your position statement may describe your establishment as low-key and more affordable than other options in the area.

Your marketing plan also must include a pricing structure. As you determine prices for the different products you intend to sell, remember that prices should cover your costs, comply with market rates for the same product, and turn a profit. Your pricing structure will be intricately tied to your positioning statement as well.

Finally, spend time developing a strategy for advertising and promoting your coffee shop to the public.

The operations section of the business plan lays out the details of your business’s day-to-day operations. Having a solid operational strategy will make a significant difference in the efficiency and profitability of your establishment. Subsections that should be covered in this part of the business plan include:

• Sourcing – Before opening a coffee shop, you will need to find sources for the ingredients in your products, including coffee and any food products you want to serve.
• Milestones – Your milestones are your planned goals that indicate what you want to accomplish with your coffee shop over time. For example, you may indicate that you want to open by a certain date or serve a specific number of customers within a certain amount of time.
• Metrics – The metrics section of operations will indicate how you plan to measure your coffee shop’s performance. Examples of metrics include revenue, profit, number of customers served, and number of repeat customers.
• Assumptions and risks – The assumptions and risks section outlines the factors you assume will support your business, as well as the factors that threaten the success of your business.

Step 4: Company And Management Summary

The company and management summary covers the structure of your business and names the key players. In a smaller coffee shop, this section of the business plan may be relatively short. However, you should still list the people who are invested in the success of the establishment.

Team Overview

The team in charge of your coffee shop may consist of the owner as well as the people you have hired to act as managers. If you have not yet hired anyone to act as a manager, you can list the qualifications you hope to see in prospective managers instead.

In fact, if you haven’t hired anyone yet, constructing this part of the business plan is an exercise that will help you figure out exactly how many people you will need to hire before your coffee house can have its grand opening.

In this section, you can include a mission statement that describes the way you will approach customer service. Ideally, this statement should be only one or two sentences in length.

Your company overview can also include information about the business’s location and its legal structure. If your coffee shop has an interesting backstory, you can include a subsection on company history as well.

This section is optional for many coffee shop businesses, but it is a good opportunity to solidify your business’s identity and purpose. If you are seeking help from investors, including this section in the business plan can improve your chances of success.

Step 5: Financial Planning

The last major part of your coffee shop business plan deals with finances. For many people, this is the most difficult part of the plan to write. However, because it will play an important role in the success of your coffee shop, having a solid financial plan is essential.

In order to construct your financial plan, you need to draft several financial statements. These statements include:

Sales Forecast

The coffee shop’s sales forecast is designed to predict how your sales revenue will look over the first few years of your business. If you don’t have much experience in the coffee business , it may be difficult to guess how much you will expect to sell.

If you are not sure how to begin, you can start with average sales information for other businesses in the area and adjust it based on different factors, such as the fact that your business will be new and won’t have regular clientele immediately.

When constructing your sales forecast, remember to take the direct expenses you will incur to make your sales into account. These expenses, which are also known as the “cost of goods sold,” will include any expenses you incur when creating your menu items.

Examples of direct costs include the cost of ground coffee, syrups, and bakery product ingredients. Do not include expenses that are not directly related to products, such as the cost of business insurance or the wages you pay to employees.

Personnel Plan

The personnel plan you create for your coffee shop will include detailed information about the expenses related to employees. These expenses include the wages you will pay as well as other costs such as insurance and payroll taxes.

Although larger businesses may break this information down based on categories of people, smaller coffee shops will usually list employee costs on an individual basis.

Profit And Loss Statement

Your profit and loss statement is the financial statement that demonstrates whether your business is making a profit. If your business does not make a profit, this statement will demonstrate the size of the loss.

Because you have not yet started operating your coffee shop, all of the information on this sheet will be hypothetical when you create your business plan. However, this statement still has value for planning purposes.

Your profit and loss statement will pull information from the two financial statements you have already created (the sales forecast and personnel plan). It will also incorporate other information that hasn’t been covered yet, such as the other expenses you will incur while running your business. Examples include building rent, utilities, and insurance expenses.

In addition, your profit and loss statement should include a final figure that takes all of your hypothetical revenue and expenses into account and calculates either a profit or a loss.

Specific components of a profit and loss statement include:

• Income – This will include the estimated amount of money you expect to bring in from coffee sales and any other source.
• Cost of goods sold – This figure will include the cost of ingredients and other items you must purchase in order to make and serve your coffee, bakery items, and anything else your coffee shop sells.
• Operating expenses – These expenses are indirect expenses associated with running your coffee shops, such as the cost of insurance, rent, and wages paid to baristas.
• Gross margin – Your coffee shop’s gross margin can be calculated as the cost of goods sold subtracted from its total sales.
• Miscellaneous expenses – If you have expenses related to depreciation, taxes, interest, or a similar cost, list them here.
• Total expenses – This figure is the total of all operating expenses and miscellaneous expenses for your coffee shop.
• Operating income – The operating income is your coffee shop’s earnings before taxes, interest, and other such expenses have been subtracted. To calculate this figure, start with your sales total and subtract the cost of goods sold and total operating expenses.
• Net profit or loss – Your net profit or loss is the bottom-line figure that tells the exact amount of profit or loss for your coffee shop.

Balance Sheet

Your coffee shop’s balance sheet is a basic overview of the business’s financial health . This statement will list all of your company’s assets as well as its liabilities. Assets may include a building (if owned) and equipment. Liabilities include any unpaid debts, such as business loans and outstanding employee wages.

Cash Flow Statement

Your business’s cash flow statement is designed to track the flow of cash in and out of your business over time. Most cash flow statements will begin with the amount of cash you currently have on hand. The statement also incorporates anticipated income and expenses.

The coffee shop’s cash flow statement will help you anticipate how your business’s buying power and needs will change over time, so you can make wise financial decisions.

The final section of your financial plan is your exit strategy, which will include details about how you will end your business. If you are just starting out and as such don’t have any plans to sell your business, this section could be omitted or kept very short.

If you decide to include this section, it should describe your ideal situation for leaving the coffee shop business. For example, your exit strategy may involve merging with another coffee shop or chain. Alternatively, you may hope to sell your business to a new owner.

Step 6: Executive Summary

Although the executive summary is usually listed first in a business plan, it is easier to construct this component of the plan after the other sections have been completed. The executive summary section will introduce your coffee shop and provide an overview of the remainder of your plan.

Your executive summary be suitable as a standalone document if necessary. As you construct your executive summary, be sure to include: As you construct your executive summary, be sure to include:

• The problem your coffee shop solves
• The way your coffee shop solves the problem
• The coffee shop’s target market
• The coffee shop’s competition
• An overview of your management plans
• A summary of your finances
• The milestones you hope to meet

The Final Word On Your Coffee Shop Business Plan

Constructing a detailed, useful coffee shop business plan takes time and research. If you are having trouble getting started, consider reaching out to a professional for help. You may also be able to find a business plan template online to help guide your writing.

Coffee Shops Business Guides

10 Most Profitable Things To Sell In A Coffee Shop (Besides Coffee)

15 Top Coffee Shop Chains

How To Come Up With Coffee Business Names

Coffee Shop Marketing Mix: Get It Right And Earn More Money

How To Attract Customers To Your Coffee Shop

Coffee Shop Branding: Get These 5 Key Elements Right

7 Top Coffee Home Business Opportunities

Coffee Shop Furniture: A Buyer’s Guide

Coffee Shop Equipment: Don’t Overlook These 9 Essentials

Best Coffee Shop Tables: 6 Top Choices

How To Create Coffee Shop Marketing Plan: A Step By Step

How To Create A Coffee Shop Logo: A Step-By-Step Guide

Top 9 WordPress Themes For Coffee Shop Owners

Aisling is an Irish food and drinks writer and journalist fueled by coffee and herbal tea. She followed up her journalism degree with nutrition studies. Find Aisling on LinkedIn .

View all posts

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Open a Coffee Shop

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

It's been a few decades since Starbucks emerged from Seattle to take over the world and made a coffee shop on every corner the norm. As a result, the way Americans drink coffee has changed drastically.

This has also created a window for entrepreneurs looking to start a business. While the big coffee chains have expanded, so have specialty, independently run shops. According to an article in the New York Times , Americans drink less coffee today than we did in the 1930s, but we’re drinking higher quality, better-brewed cups. As such, many entrepreneurs today might wonder how to start a coffee shop to serve their own high-quality brews.

How to open a coffee shop in 7 steps

Wondering how to start a coffee shop of your own? These seven steps will take you through everything you need to know.

Step 1: Decide whether you want to open your own shop, a franchise, or buy an existing business.

When it comes to starting a business you usually have at least two ways to go about doing it, and with coffee shops, you've got three. When it comes to how to open a coffee shop you can do one of the following:

Completely start from scratch and open your own shop

Open a coffee shop franchise

Buy an existing coffee shop that's for sale

Each of the options has its pros and cons and varying degrees of work required by you. If you choose to open a franchise you'll be bound by many of the aspects of that franchise like the beans they use and the decor of the actual shop. If you buy another coffee shop you might have less construction to do to set up the space as a coffee shop. These options come with limitations as well.

Step 2: Create a business plan.

A well-thought-out business plan is key to creating any business, and a coffee shop is no exception. If you want to open a coffee shop, you probably already have a love of good coffee. To create a successful coffee shop you have to decide how you'll get other people to love coffee as much as you do. A business plan will help get your ideas focused and in one place. Besides the basics of what your coffee shop will be and the products you'll sell, a business plan also includes a marketing and sales plan, as well as financial projections.

An important consideration you'll need to take care of in the early stages, and that you'll include in your business plan, is to decide on the business structure you want your company to operate as. There are several business entity options you can choose, including a sole proprietorship, LLC, C-corp, and more—and the entity you choose will have both tax and legal implications for your business. It's always a good idea to seek the advice of a business attorney when making these big decisions as you start your coffee shop. if you choose to open a franchise, you might already have a business entity that you have to use.

While creating your business plan, you'll have to come up with a name for your business and an idea of where you want to open your coffee shop. Once you find the perfect location be sure to add it to your business plan, it might happen before or after you've written the plan.

You'll also want to outline the pricing of your products, what goods you want to offer, the type of coffee shop you want to have (sit-down, drive-through), and more. It's a lot to think about, but a business plan is where you can get all of these plans down in one place. Beyond that, if you'll need outside capital to make your coffee shop dreams a reality, you'll need to provide a business plan for funding consideration.

Luckily, there are several options for business loans for a cafe, and whether you're looking for funding to start your coffee shop or want to leave the option open for expansion down the road, having a solid business plan from the start will make the process easier.

Step 3: Find the right location.

This step can not be glossed over and you should take your time and consideration when completing it. The location of your coffee shop can make or break it in terms of success. There are some things to look for when looking for a coffee shop location. Coffee shop location considerations:

Size: You want to make sure enough people can fit in the space without feeling cramped. Coffee shops are relaxing areas where people tend to hang out with friends or colleagues and you want the space to be accommodating.

Accessibility: Make sure your cafe is accessible and anyone can enter.

Parking: Will you be dependent on foot traffic? If not you're going to want to make sure there's somewhere for your customers to park either a lot or street parking nearby. If biking is popular in your area, consider adding a bike rack.

Seating: Will customers be limited to seating indoors or is there some outdoor seating you could set up when the weather is right for it?

Rent: This should be one of your top considerations when deciding on a location. How much a business location will cost you is going to be a significant chunk of your budget and you should be sure to include this in your business plan.

Step 4: Register your business and get the proper licenses and permits.

The city or county where you plan to open your coffee shop will dictate the specifics of registering your business, what taxes you'll be responsible for, any necessary licenses and permits, and more. The details of registering a business vary from state to state, but you will need to apply for an employer identification number (EIN) and establish your business structure before you can start the registration process.

You also need to make sure that since you'll be serving coffee, and most likely some food, that you have the right business licenses and permits for that, as well. Usually, health licenses and permits are necessary for serving food. Other types of business licenses include building, zoning, and land-use permits. Be sure you consult with your local business resources so you have the proper documentation in place before you open your coffee shop.

Step 5: Find suppliers.

Customers are looking for a quality experience when they come into your coffee shop. That means quality ingredients and coffee, but also quality service and experience.

While it’s tough to produce the same quality every time, this is crucial in the coffee business, especially in a time when people are becoming more knowledgeable about specialty coffee. Having consistent and quality providers, from the beans to cups and everything else customers interact with can help keep your coffee shop running smoothly and customer experiences consistent.

When you're first starting your coffee business, don't be afraid to spend the necessary time finding the right coffee supplier for your business. Though if you're starting a franchise, they'll take care of this step for you by having their specific grounds. You may have to try a lot to find the right one that will work for the products you want to offer, at the right price, with the perfect taste.

The other way to create consistency is by training employees extensively. If you want patrons to walk past all the other coffee shops on the block and go into yours, you need to offer consistent quality.

Step 6: Create a warm, inviting environment.

A coffee shop is never just about a good cup of coffee. Many people frequent coffee shops as a place to do work, catch up with friends, or to take a break from the workday.

You want your coffee shop to have a warm and inviting atmosphere that's conducive to meetings, relaxing, and chit chat, but also one that's easy to keep clean and orderly. When choosing how to design the shop, be sure to take into account how many people you want the shop to fit and the kind of atmosphere you're looking to create for them all.

Remember when we were talking about the location of your shop? Here's where that comes in because the location can only do so much work for you. The work you do to design the cafe on the inside will also greatly matter. You're creating an entire atmosphere that also serves a purpose.

Step 7: Adopt a good inventory system.

Pay attention to your inventory. At first, you won't really know how much you need when it comes to things like beans and baked good, you probably won't even know how many cups you need a day. So track these things carefully at first so you can get a good handle on how much you're using.

There are a number of inventory management apps available to small business owners who need a way to manage their inventory and budget. Some point of sale systems also offer inventory management, which is something you might want to consider when choosing one. There are specific coffee shop POS systems out there to consider.

No matter what you choose, you want to make sure you have a way to manage what you need for your business so you don't run out of customer favorites or over-order on what you don't need.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How much does it cost to open a coffee shop?

We've gone over many of the expenses you'll face when opening a coffee shop. The rent of the location, everything for the interior design, the machinery, the supplies like beans and cups, employees and more will all add up. Some of these things may cost far more than you're expecting them too, a good espresso machine along can run you up $20,000.

In all you can expect that opening a coffee shop will likely cost you upward of $200,000 when all is said and done. This goes for some franchises as well, Dunkin' for example, requires that you have $250,000 in liquid assets to start a franchise with them. You could consider starting smaller, with a coffee cart or a small pop-up location if you're unsure of the cost or if you don't want to dive in headfirst. But know that none of these options will be cheap or require no money up front.

Start Your Dream Business

The bottom line

Running a small business is no easy feat, but for all of those coffee enthusiasts who have dreamed of opening a cafe of their own, now might be the time. Consumption and interest in the specialty coffee culture has increased steadily in recent years and doesn’t seem to be stopping any time soon.

While competition from bigger chains might have been a problem at one time, modern consumers prefer to support local neighborhood shops—especially if they’re offering what the big chains can’t. So if you've been wondering how to start a coffee shop, start thinking about the above steps to see if this is a feasible business venture for you.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

• STARTUP COURSE AND DOCUMENTS

Coffee Business Plan: A Cup Above The Rest

In the bustling world of entrepreneurship, starting a coffee business holds tremendous potential. However, like any venture, it requires careful planning and a solid business plan to navigate the competitive market.

A coffee business plan includes analyzing the market, defining your unique value proposition, and developing a robust marketing and operational strategy. Pay close attention to your financial projections to ensure sustainability.

This article explores the essential elements of a comprehensive coffee business plan, equipping aspiring coffee entrepreneurs with the tools needed to brew popularity and stability.

Table of Contents

Executive Summary

The executive summary serves as a condensed version of your coffee business plan, encapsulating its core elements. This section provides a snapshot of your vision, mission, target market, and financial projections. It should succinctly communicate the unique value proposition that differentiates your coffee business from competitors.

In the executive summary, emphasize the key milestones that you plan to achieve. Whether it’s opening a flagship store, expanding into new markets, or introducing innovative brewing methods, highlight these significant milestones to demonstrate your business’s growth potential.

Additionally, offer a glimpse into the marketing and operational strategies that you intend to employ. Outline your marketing approach, such as leveraging social media platforms, partnering with local influencers, or organizing community events. Discuss your operational strategies, including sourcing high-quality beans, implementing efficient workflows, and prioritizing exceptional customer service.

Remember to keep the executive summary concise yet compelling, capturing the attention of potential investors, partners, or stakeholders. It should entice readers to delve deeper into the full coffee business plan, as it sets the stage for the comprehensive roadmap that follows.

Read more about: Business Plan for Selling Coffee: Wake Up and Smell Business

Company Description

In this crucial section, you have the opportunity to delve into the intricate details of your coffee business. Start by elucidating your chosen business structure, whether it be a cozy café, a trendy specialty coffee shop, or an innovative online platform. Clearly articulate your decision and explain how it aligns with your overall business strategy.

Next, provide insight into your company’s history, highlighting any significant milestones or accomplishments that have brought you to this point. Articulate your mission statement, capturing the essence of your purpose and the value you aim to deliver to customers. Moreover, express your core values, emphasizing the principles that guide your business practices, such as sustainability, ethical sourcing, or community engagement.

Demonstrate your profound understanding of the coffee industry by incorporating industry insights and trends. Discuss the evolving preferences of coffee enthusiasts, the rising demand for specialty blends, or the popularity of unique brewing methods. By showcasing your knowledge, you instill confidence in your ability to navigate and capitalize on the dynamic coffee landscape.

Market Analysis

To develop an effective coffee business, it is essential to conduct a comprehensive market analysis that uncovers valuable insights about your target market and competitors. Begin by defining your customer demographics, including age groups, income levels, and preferences. Understand their coffee consumption habits, taste preferences, and willingness to explore new blends or brewing methods.

Analyze the local coffee market to gauge its size, growth potential, and trends. Assess the demand for specialty coffees, organic blends, or unique brewing methods within your target market. Identify gaps or untapped opportunities that you can leverage to cater to specific customer needs.

Thoroughly research your competitors to gain a deeper understanding of their strengths, weaknesses, and market positioning. Identify direct competitors, such as nearby coffee shops or online retailers, as well as indirect competitors like tea houses or juice bars that may impact customer choices. Evaluate their offerings, pricing strategies, branding, and customer experience to discern areas where you can differentiate your business.

Determine your competitive advantage by identifying what sets your coffee business apart. It could be a unique blend, a signature brewing technique, a cozy and inviting atmosphere, or exceptional customer service. Emphasize these differentiators and highlight how they address customer preferences and create a memorable experience.

Products and Services

Explain your approach to sourcing beans, emphasizing factors such as single-origin beans, fair trade options, or exclusive roasting techniques. Highlight your commitment to ethical and sustainable practices, ensuring transparency and traceability in the coffee supply chain.

In addition to coffee, mention any additional offerings that complement your main products. These could include a delectable selection of pastries, snacks, or coffee accessories like brewing equipment, travel mugs, or specialty filters. By diversifying your offerings, you can cater to different customer preferences and enhance the overall experience.

Throughout this section, emphasize the quality and freshness of your products. Discuss your commitment to using freshly roasted beans, precise brewing methods, and rigorous quality control measures. Emphasize the unique flavors, aroma, and consistency that customers can expect from your coffee.

Furthermore, highlight your dedication to sustainability. Showcase your eco-friendly practices, such as compostable packaging, recycling initiatives, or partnerships with organizations supporting coffee farmers and environmental conservation.

By detailing the range of coffee products and services in your business plan, you demonstrate your commitment to offering a diverse and exceptional coffee experience. Your focus on quality, freshness, and sustainability will attract coffee enthusiasts seeking an elevated and socially responsible coffee experience.

Read more about: Business Plan for Selling Coffee Online: From Farm to Digital Cup

Marketing and Sales Strategy

To attract and retain customers, it is essential to outline effective marketing and sales tactics in your coffee business plan. Begin by describing your branding strategy, which includes your visual identity, logo, and tagline. Ensure that these elements convey the unique value and personality of your coffee business, capturing the attention of your target audience.

Define your pricing strategy based on thorough market research and cost analysis. Consider factors such as competition, target market preferences, and your desired profit margins. Striking the right balance between affordability and the perceived value of your offerings is key.

Determine the promotional channels you will utilize to reach your target audience. Consider leveraging social media platforms, local events, collaborations with complementary businesses, and even traditional advertising methods. Tailor your approach to align with the preferences and behavior of your target market.

Develop a comprehensive customer acquisition plan, including strategies like loyalty programs and strategic partnerships. Loyalty programs can incentivize repeat business and foster customer loyalty, while partnerships with local businesses or influencers can expand your reach and attract new customers.

Explain how you will measure the effectiveness of your marketing efforts. Utilize key performance indicators (KPIs) such as sales data, customer feedback, website traffic, and social media engagement to assess the impact of your marketing initiatives. Regularly analyze and evaluate these metrics to make informed decisions and optimize your marketing strategies.

Operational Plan

Outline the logistics of your daily operations, from sourcing and roasting beans to brewing and serving. Specify the equipment and machinery required, such as espresso machines, grinders, and brewing methods, ensuring they align with your quality standards.

Address staffing needs, including baristas and support staff, and detail their training requirements and customer service protocols. Discuss your suppliers, emphasizing the importance of reliable partnerships and quality ingredients. Describe your inventory management procedures to ensure adequate stock levels and minimize waste.

Highlight your commitment to quality control, detailing procedures for consistency and excellence in every cup. By providing a thorough operational plan, you demonstrate a solid foundation for efficient coffee business operations.

Organizational Structure and Management

When defining the organizational structure of your coffee business, it is crucial to identify key roles and responsibilities that contribute to its smooth functioning. These roles typically include management positions, such as a general manager, operations manager, or marketing manager, as well as front-line staff like skilled baristas and dedicated support staff.

Describe the specific skills and expertise required for each position. Baristas should possess a deep understanding of coffee brewing techniques, knowledge of different coffee varieties and flavor profiles, and the ability to provide exceptional customer service. Support staff may need skills in inventory management, order processing, or equipment maintenance. Management positions require a combination of leadership, strategic planning, financial management, and strong communication skills.

The members of your management team should be introduced, with a focus on their relevant experience. Share their background in the coffee industry, business management, or related fields. Emphasize how their expertise aligns with the objectives of your coffee business. For instance, if your business focuses on sustainable sourcing, having a management team with experience in ethical sourcing practices and supplier relationships can add credibility and support your sustainability goals.

You demonstrate a strong basis for your coffee business by precisely outlining the responsibilities, abilities, and experience inside your organizational structure and introducing your management team. Your team’s collective experience and expertise will support the efficient running of your enterprise, the provision of first-rate coffee goods and services, and the accomplishment of your corporate goals.

Read more about: Business Plan for Opening a Coffee Shop: The Aroma Agenda

Financial Projections

In defining the organizational structure of your coffee business, it is essential to identify key roles and responsibilities. These typically include management positions, such as a general manager or operations manager, as well as front-line staff like baristas and support staff. Each role plays a crucial part in the smooth functioning of your coffee business.

Describe the specific skills and expertise required for each position. For baristas, proficiency in coffee brewing techniques, knowledge of different coffee varieties, and a passion for delivering exceptional customer service are vital. Support staff may need skills in inventory management, order processing, or maintenance of equipment. Management positions require a combination of leadership, strategic planning, and financial management skills.

Introduce the members of your management team and highlight their relevant experience. Share their background in the coffee industry, business management, or related fields. Emphasize how their expertise aligns with the objectives of your coffee business. For example, if your business focuses on specialty coffees, having a management team with experience in sourcing unique beans or roasting techniques can add credibility and strengthen your market position.

You establish a strong basis for your coffee firm by outlining the organizational structure and emphasizing the team’s experience. A great staff can create a healthy workplace culture and provide exceptional customer service when partnered with strong leadership.

While the coffee industry is highly competitive, there is always room for innovative ideas, quality products, and exceptional customer experiences. Stay true to your vision, adapt to evolving consumer preferences, and consistently deliver an outstanding cup of coffee.

With a well-crafted business plan and a passion for the bean, you can embark on an exciting journey into the world of coffee entrepreneurship. So, grab your favorite brew, put pen to paper, and start crafting your coffee business plan today.

Frequently Asked Questions

Q: How can I differentiate my coffee business from competitors?

A: To stand out, focus on offering unique coffee blends, specialty brewing methods, personalized customer experiences, and sustainable sourcing practices.

Q: What should I consider when choosing a location for my coffee shop?

A: Factors to consider include foot traffic, proximity to target customers, competition in the area, parking availability, lease terms, and the overall ambiance of the neighborhood.

Q: How do I determine pricing for my coffee products?

A: Calculate your cost of goods sold, consider market research on pricing trends, analyze your target customers’ price sensitivity, and ensure your prices cover expenses while remaining competitive.

To learn more on how to start your own coffee shop, check out my startup documents here.

Disclaimer: The information provided by  StartMyCoffeeShop.com  (“The Site”) is for general informational purposes only. All information on the Site is provided in good faith. However, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the Site. Under no circumstance shall we have any liability to you for any loss or damage of any kind incurred as a result of the use of the Site or Reliance on any information provided on the Site. Your use of the Site and reliance on any information on the Site is solely at your own risk. This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs. Terms and Conditions. ( https://startmycoffeeshop.com/terms-and-conditions/ )

Hi! I’m Shawn Chun

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!

As I saw smaller and even some larger coffee shops in the neighborhood slowly lose customers to these giant coffee chains and slowly close up shop, I knew that I had to start getting creative…or go out of business.

I (like you may be) knew the coffee industry well. I could make the best latte art around and the foam on my caps was the fluffiest you have ever seen. I even had the best state-of-the-art 2 group digital Nuova Simonelli machine money could buy. But I knew that these things alone would not be enough to lure customers away from the name brand established coffee shops.

Eventually, through lots of trial and error as well as perseverance and creativity I did find a way to not only survive but also thrive in the coffee/espresso industry even while those corporate coffee chains stayed put. During those years I learned to adapt and always faced new challenges. It was not always easy, however, in the end, I was the sole survivor independent coffee shop within a 10-mile radius of my location. Just two corporate coffee chains and I were left after that year. All told the corporate coffee chains took down over 15 small independent coffee shops and kiosks and I was the last one standing and thriving.

Along the years I meet others with the same passion for coffee and I quickly learned that it is not only “how good a barista is” that makes a coffee shop successful, but the business side of coffee as well.

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.

Stick around, browse through my helpful blog and resources and enjoy your stay! With lots of LATTE LOVE!

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

Successful Coffee Shop Business Plan

Need a Coffee Shop Business Plan? We Can Help

Want to know how to open a coffee shop the right way? Want a solid answer to the critical question “ how much does it cost to open a coffee shop ?” Before you start the process of opening a coffee shop, you need to do your homework and distill everything you learn into an exceptional coffee shop business plan.

After helping entrepreneurs (most with little or no coffee shop experience) in 30 states to launch more than 300 independent coffee shops , we know that a business plan is vital for success. We believe that it’s so vital that we include a fully editable electronic version with every purchase of Seven Steps to Success in the Specialty coffee Industry , the proven guide to the coffee shop startup success.

The more you time and effort that put into developing your business plan, the more prepared you will be to open and run a successful coffee shop. 

The Elements of a Successful Coffee Shop Business Plan

Researching and creating an exceptional business plan will create a roadmap for transforming your coffee shop startup idea into a flourishing reality.

And, if you’re seeking outside financing for your coffee shop, a compelling business plan is an absolute necessity.

A strong business plan forces you to answer all the questions needed to set up your coffee startup to thrive. Done right, your plan becomes a reference manual for running a thriving coffee shop.

Your plan should include the following six sections plus a cover page. Most sections should take up a page or two but not much more – you’re not writing a book! Financial data, however, often takes a few pages.

Section 1: Executive Summary

The executive summary should actually be the last section you write. This one-page summary highlights and condenses key points from each section of your business plan.

Devote a few sentences to each section. Make them unique and interesting. Every word counts.

This is your chance to tell the story of your business. Next to the financial data, it is the most important part. It is the first page that bankers and potential investors will review.

After you write the executive summary, share it with bankers or business consultants then revise your plan based on their suggestions.

Section 2: Business Description

Write a brief description of your proposed coffee shop. Include the:

• Business name (get creative!)
• Location (physical or online)
• List of products or services – draft a potential menu
• Target market
• Law firm that reviews contracts
• Pictures of the space
• Leasing arrangements

Section 3: Management Profile

If you are the primary manager, summarize your resume. Highlight any restaurant or coffee shop experience you have. If you lack direct experience, emphasize transferable skills and accomplishments.

If you have managers or partners, include their education, employment record, skills, and accomplishments.

Don’t forget to highlight business consultants. Investors gain confidence from advisers with a proven track record.

Section 4: Information about the Coffee Industry and Your Competition

The coffee market in the USA continues to grow with many potential customers underserved, especially in rural areas! Conduct research into both the coffee industry and your community. Your marketing analysis should examine:

• Industry trends
• Key financial measures in the industry
• Local competitors – not only other coffee shops (both chains and independents) but also potential substitutes for coffee (ice cream, smoothies, etc.)
• Demographics and demand in your community
• Consumer coffee sales sensitivity to economic cycles

Section 5: Marketing Strategy

In your marketing plan:

• Explain what will set you apart and why customers will choose to buy from you (your unique selling proposition)
• Describe location of your coffee shop and the type (walk-in, drive-thru, kiosk, etc.)
• Identify target customers (geography, age range, income, interests, etc.)
• Outline marketing strategies you will use to attract customers

Section 6: Financial Data

Your financial plan outlines the assets, liability and cash flow for your coffee shop. Bankers will examine this section to determine the financial health of your potential business. This section requires three documents:

• A cash flow statement
• An income or statement, and
• A balance sheet.

Cash Flow Statement

The cash flow statement helps determine your business’ ability to pay its bills in the short term. It outlines:

• The initial investment (to help determine this, be sure to read about coffee shop startup costs )
• Level of sales needed to break even
• Expected expenses, and
• How much money – if any – you will receive from outside sources.

The cash flow statement also reflects investments. Ending cash is the money you have at the end of the month.

Income Statement or P&L

In simplest terms, the income statement or P&L shows total sales and expenses for the year.

Most information needed to fill out this statement comes from the cash flow statement (sales, cost of goods sold, expenses). You may use tax figures from an accountant.

Balance Sheet

The balance sheet summarizes assets, liabilities and net worth at a particular point of time, using this formula: total assets – liabilities = net worth.

Once you’ve completed the cash flow and income statements, the balance sheet is a matter of filling in the blanks:

• Total assets include assets (cash and inventory) plus fixed assets (equipment minus depreciation).
• Liabilities include accounts payable and long-term debt.

Any business, including a coffee shop, with high liquidity, low debts, and sufficient working capital has a higher probability of success. Keep enough cash or liquid assets on hand to cover six months’ worth of expenses.

The Proven Coffee Shop Business Plan Template

As an award-winning coffee roaster with a team of coffee shop startup consultants , Crimson Cup has the expertise to guide you from drafting an exceptional business plan through choosing a location and marketing your coffee shop. In fact, Roast magazine editors cited our education and training programs as a factor in choosing Crimson Cup as their 2016 Macro Roaster of the Year .

We train hundreds of baristas and coffee shop owners each year at our Crimson Cup Innovation Lab – the largest SCA-Certified Premier Training Campus in the Midwest. 

Founder and President Greg Ubert wrote the book on successfully opening and running a coffee shop. He and the Crimson Cup team of have helped hundreds of entrepreneurs become successful coffee shop owners.

“For many potential owners, writing their first coffee shop business plan can seem overwhelming,” Greg said. “We’re happy to share our experience and walk you through the ins and outs.”

You’ll find a complete coffee shop business plan template available for immediate download with Greg’s book, Seven Steps to Success in the Specialty Coffee Industry .

Greg has written about coffee shop business plans for S mart Business Columbus and CoffeeTalk magazine. He also serves on the boards of directors for both Heartland Bank and the Columbus Chamber of Commerce .

Going Beyond the Coffee Shop Business Plan

Greg’s book became the foundation for our 7 Steps to Coffee Shop Startup Success  process which has helped hundreds of entrepreneurs open and run successful coffee shops.

We provide all the support you need to open a coffee shop – without expensive franchise fees or royalties. You don’t even need to sign a long-term contract to buy our coffee.

More than just a short-term course on drink preparation or running a coffee shop, we offer hands-on training and ongoing guidance for both baristas and business owners.

With decades of experience in running coffee shops, our coffee shop startup consultants can help you go beyond the business to plan to:

• Choose the right location
• Lay out your shop for optimal success
• Create a menu that customers will love
• Hire and train staff
• Attract customers with low-cost grassroots and social media marketing techniques
• Serve great-tasting drinks with award-winning coffee and high-quality coffee shop supplies
• Prepare to thrive in good times and bad

Through our proven process, we have helped shape business plans for hundreds of successful independent coffee shops in 30 states, Guam, and Bangladesh. Can we help you too?

More Information

Testimonials, faq’s, have a question.

NBC plans about $2.5 bln offer for NBA broadcast rights, WSJ reports

• Medium Text

Sign up here.

Reporting by Jaspreet Singh in Bengaluru; Editing by Anil D'Silva

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Business Chevron

Pot stocks jump as U.S. DOJ moves to reclassify cannabis as a less dangerous drug

Shares of cannabis companies surged on Tuesday afternoon after the U.S. Department of Justice (DoJ) moved to reclassify marijuana as a less dangerous drug.

Your latte could get even more expensive, thanks to a drought in Vietnam that's strangling coffee bean production

• Robusta coffee futures hit a 16-year high because of a prolonged drought in Vietnam.
• Vietnam and Brazil, the top robusta producers, face climate issues affecting harvest and supply.
• Vietnamese farmers are also holding onto their beans, hoping to sell them for higher prices.

Lattes may get pricier, as a key indicator for the price of the bean in espresso just hit a record high.

The robusta coffee variety is the basis for both espresso and instant coffee. Vietnam makes the most robusta, followed by Brazil.

A long, El Niño-induced drought in Vietnam pushed up the price of robusta futures on Wednesday to the highest in at least 16 years, Bloomberg reported .

Related stories

Vietnam produces more than a third of the world's robusta, per the US Department of Agriculture . In December, the agency predicted Brazil would harvest less robusta this year because of climate issues, while Vietnam would export less because of lower total supplies from last year. This year's drought in Vietnam could continue the low-supply cycle, hurting next year's production.

Last month, Vietnam's coffee association said exports could decline as much as 20% in the 12 months ending in September, compared with the same period last year.

"We can't tell when prices will peak," Tran Thi Lan Anh, deputy director of Vietnamese exporter Vinh Hiep Co., told Bloomberg. She said farmers and brokers think the cost of the beans could rise 15% per kilogram from current prices.

Robusta's price has also been pushed up by hoarding. Some Vietnamese farmers aren't selling their coffee beans, holding onto as much as 13% of this year's harvest in hopes of selling the beans for more later, Bloomberg reported .

Vietnam is increasingly importing cheaper robusta from Brazil to satisfy soaring local demand from coffee drinkers, Bloomberg reported in March.

And as disposable income rises across Asia, consumers are buying more coffee, too. Asian countries consumed 15% more coffee last year than in 2018 — the largest jump of any region — but still much less than Europe consumed, per data from the International Coffee Organization .

Higher bean prices will take a while to reach consumers — so the cost of your mocha is safe for now.

Watch: Why single-origin coffee can cost $30 per pound. More than 5 times the US average.

• Main content

site categories

‘senna’: netflix’s f1 biopic moves up a gear with first teaser, breaking news.

ProSiebenSat.1 Shareholders Narrowly Reject Plan To Split Up German TV Giant

By Jesse Whittock

Jesse Whittock

International TV Co-Editor

More Stories By Jesse

• Brian McCardie Dies: ‘Line Of Duty’ And ‘Time’ Actor Was 59
• Freely Live TV Platform Launches In UK; RTL Deutschland Content Chief; BAFTA $156,000 Grants; MGM+ India — Global Briefs
• James Corden And SiriusXM Boss Scott Greenstein To Talk At The Podcast Show

ProSiebenSat.1 Media’s shareholders have narrowly voted to reject a plan that would have seen the business split up.

Majority minority shareholders MediaForEurope (MFE) and PFF IM had called for management at the German TV giant to explore a proposal to separate the core broadcasting and content business from its Commerce & Ventures and Dating & Video segments.

Related Stories

ProSieben Board Rejects Restructure Proposals From Berlusconi Family's MFE

ProSiebenSat.1 Full-Year Profit Down $109M In "Difficult Economic Environment" But Earnings Up In Q4

Despite, an MFE spokesperson said the Italian company was “pleased” with the support for its proposals, claiming a “large majority” had supported them. “Although the motion on the spin-off valuation was formally not passed, more than 70% of the shareholders voted for it,” they added.

The Berlusconi-family controlled MFE (formerly Mediaset) had submitted a series of motions ahead of the AGM. ProSieben’s management had immediately rejected them, saying they were not in shareholders’ interests.

However, Czechia-based PFF was successful in adding Christoph Mainusch, a former RTL and PFF-owned CME boss, to the ProSieben board. MFE was also successful in adding former Italian Citibank investment banker Leopoldo Attolico and former EY auditor Simone Scettri.

Senior CME exec Klára Brachtlová is already on the supervisory board and has now been confirmed in the post, with former Discovery international chief Majorie Kaplan and Rolf Nonnenmacher. Katharine Beherends, MFE’s boss in German-speaking Europe is already on the supervisory board, which Chairman Andreas Wiele leads.

MFE was also able to reject a proposal to restructure around Joyn, as that streamer would sit directly under the ProSiebenSat.1 Media parent company and above Seven.One Entertainment. That would have placed networks and other platforms under Joyn.

“We are pursuing a clear strategy,” said ProSieben group CEO Bert Habets today. “We are focusing on our entertainment expertise. We are putting Joyn at the center. We are leveraging the potential of partnerships. And we are developing new forms of monetization. We are therefore on the right path to becoming the number 1 entertainment player in the German-speaking region.”

Must Read Stories

Noms snubs & surprises; ‘hell’s kitchen’, ‘stereophonic’ tie with 13 each.

A $3B Summer? ‘Garfield’ Over ‘Furiosa’, Ghost Glory & Other Zany Forecasts

Amazon’s ‘cross’ poised for season 2 renewal; chatham, lillard & mason join cast, no. 6 ‘wonka’ & timothée chalamet reawaken the movie musical.

Subscribe to Deadline Breaking News Alerts and keep your inbox happy.

Read More About:

No comments.

Deadline is a part of Penske Media Corporation. © 2024 Deadline Hollywood, LLC. All Rights Reserved.

• Election 2024
• Entertainment
• Newsletters
• Photography
• Personal Finance
• AP Investigations
• AP Buyline Personal Finance
• AP Buyline Shopping
• Press Releases
• Israel-Hamas War
• Russia-Ukraine War
• Global elections
• Asia Pacific
• Latin America
• Middle East
• Election Results
• Delegate Tracker
• AP & Elections
• Auto Racing
• 2024 Paris Olympic Games
• Movie reviews
• Book reviews
• Personal finance
• Financial Markets
• Business Highlights
• Financial wellness
• Artificial Intelligence
• Social Media

HSBC CEO Noel Quinn plans to retire

FILE - Group Chief Executive of HSBC, Noel Quinn, speaks during the Bloomberg Transition Finance Action Forum at the Plaza Hotel, on Sept. 19, 2023, in New York. HSBC, Europe’s largest bank, says that CEO Noel Quinn plans to retire after serving nearly five years in the post. (AP Photo/Andres Kudacki, File)

• Copy Link copied

HSBC, Europe’s largest bank, says that CEO Noel Quinn plans to retire after serving nearly five years in the post.

“After an intense five years, it is now the right time for me to get a better balance between my personal and business life. I intend to pursue a portfolio career going forward,” Quinn said in a statement on Tuesday.

Quinn has worked at HSBC since 1987. As CEO, he helped with the sale of its Canada and Argentina operations and oversaw the bank’s strongest returns in more than a decade.

In 2021, HSBC said that it was closing its U.S. retail banking business in order to refocus its efforts on wealth management. London-based HSBC is one of the world’s biggest banks, but its focus is primarily in Hong Kong, where it was founded, and elsewhere in Asia, and in the U.K. and Europe.

“Noel has had a long and distinguished 37-year career at the Bank and we are very grateful for his significant contribution to the Group over many years,” Chairman Mark Tucker said. “He has driven both our transformation strategy and created a simpler, more focused business that delivers higher returns. The bank is in a strong position as it enters the next phase of development and growth.”

HSBC said that its board has started the formal process of looking for Quinn’s successor and is looking at both internal and external candidates. Quinn will continue in the CEO role during the search process and assist with the transition.

In January, U.K. regulators announced that HSBC was fined 57.4 million pounds ($72.8 million) for failing to adequately protect customer deposits in the event that the bank collapsed.

HSBC cooperated with the investigation and agreed to settle the case, the Prudential Regulation Authority said. Without this cooperation, the fine would have been 96.5 million pounds ($122.4 million).

The bank said at the time that it was “pleased” to resolve the matter.

Shares of HSBC gained more than 3% before the market open.

HSBC CEO Noel Quinn plans to retire

HSBC, Europe’s largest bank, says that CEO Noel Quinn plans to retire after serving nearly five years in the post.

“After an intense five years, it is now the right time for me to get a better balance between my personal and business life. I intend to pursue a portfolio career going forward,” Quinn said in a statement on Tuesday.