mini coffee shop business plan

• Restaurant Website Builder

Coffee Shop

How to write a successful coffee shop business plan (with template).

• By Taylor Anderson

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

What is A Coffee Shop Business Plan?

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

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

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

1. Clear Vision and Objectives

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

2. Financial Planning

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

3. Operational Efficiency

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

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

1. Executive Summary

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

What should you cover in an Executive Summary?

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

2. Coffee Shop Business Description

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

What should you cover in the Coffee Shop Description section?

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

3. Market Analysis

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

What should you cover in this section?

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

4. Organization and Management

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

What should you cover in the Organization and Management Plan?

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

5. Sample Menu

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

What should you consider when creating a Sample Menu?

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

6. Marketing Plan

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

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

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

7. Operations Plan

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

What Operational Issues should you address in your Business Plan?

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

8. Financial Plan

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

How Much Does It Cost to Start a Coffee Shop?

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

How Many Ways to Fund Your Coffee Shop?

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

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

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

9. Financial Projections

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

Break-even analysis:

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

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

Projected profit and loss statement:

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

Cash flow analysis:

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

Coffee Shop Business Plan Template

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

2. Description of the Coffee Shop

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

3. Menu Offer

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

4. Market and Competition Analysis

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

5. Investment Plan (Detailed Cost Analysis)

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

6. Financial Forecast

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

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

8. Marketing Plan

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

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

Tips For Writing a Business Plan For a Coffee Shop

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

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

Frequently Asked Questions

1. how profitable is owning a coffee shop.

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

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

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

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

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

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

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

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

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

Related Coffee Shop Resources

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

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

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

Privacy Policy

Terms of service

Cookie Policy

Profit Margin Calculator

Food Cost Calculator

How To Start A Coffee Shop (2024 Guide)

Updated: May 1, 2024, 5:13pm

Table of Contents

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

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

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

Create a Business Plan

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

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

Featured Partners

ZenBusiness

$0 + State Fees

Varies By State & Package

On ZenBusiness' Website

Northwest Registered Agent

$39 + State Fees

On Northwest Registered Agent's Website

Tailor Brands

$0 + state fee + up to $50 Amazon gift card

Varies by State & Package

On Tailor Brands' Website

Choose Your Business Structure

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

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

Consider Costs: Funding and Finances

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

1. Have a Vision

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

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

2. Do Your Research

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

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

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

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

3. Identify Startup Cost and Equipment

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

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

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

4. Develop a Branding Strategy

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

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

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

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

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

5. Find a Location and Commercial Space

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

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

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

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

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

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

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

Start an LLC Online Today With ZenBusiness

Click on the state below to get started.

6. File for Permits and Licenses

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

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

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

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

7. Choose the Right Coffee Supplier

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

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

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

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

Customer Service

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

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

8. Design Layout and Workflow

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

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

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

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

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

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

9. Order Equipment and Supplies

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

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

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

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

10. Hire and Train Your Team

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

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

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

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

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

11. Market Your Brand

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

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

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

12. Open House

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

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

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

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

Invest in a Strong Point-of-Sale System

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

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

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

Stay Ahead of the Game

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

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

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

Opening an Independent Coffee Shop

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

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

Opening a Franchise Coffee Shop

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

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

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

Bottom Line

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

How profitable is a coffee shop?

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

Do I need any qualifications to run my own café?

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

How do I write a simple business plan?

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

• Best LLC Services
• Best Registered Agent Services
• Best Trademark Registration Services
• Top LegalZoom Competitors
• Best Business Loans
• Best Business Plan Software
• ZenBusiness Review
• LegalZoom LLC Review
• Northwest Registered Agent Review
• Rocket Lawyer Review
• Inc. Authority Review
• Rocket Lawyer vs. LegalZoom
• Bizee Review (Formerly Incfile)
• Swyft Filings Review
• Harbor Compliance Review
• Sole Proprietorship vs. LLC
• LLC vs. Corporation
• LLC vs. S Corp
• LLP vs. LLC
• DBA vs. LLC
• LegalZoom vs. Incfile
• LegalZoom vs. ZenBusiness
• LegalZoom vs. Rocket Lawyer
• ZenBusiness vs. Incfile
• How To Start A Business
• How to Set Up an LLC
• How to Get a Business License
• LLC Operating Agreement Template
• 501(c)(3) Application Guide
• What is a Business License?
• What is an LLC?
• What is an S Corp?
• What is a C Corp?
• What is a DBA?
• What is a Sole Proprietorship?
• What is a Registered Agent?
• How to Dissolve an LLC
• How to File a DBA
• What Are Articles Of Incorporation?
• Types Of Business Ownership

Next Up In Business

• Best Online Legal Services
• How To Write A Business Plan
• Side Hustle Ideas To Make Extra Money
• Starting An S-Corp
• LLC Vs. C Corp
• How Much Does It Cost To Start An LLC?

What Is SNMP? Simple Network Management Protocol Explained

What Is A Single-Member LLC? Definition, Pros And Cons

What Is Penetration Testing? Definition & Best Practices

What Is Network Access Control (NAC)?

What Is Network Segmentation?

How To Start A Business In Louisiana (2024 Guide)

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

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

BUSINESS STRATEGIES

How to write a coffee shop business plan

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

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

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

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

Top benefits of creating a coffee shop business plan

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

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

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

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

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

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

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

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

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

How to create a coffee shop business plan in 6 steps

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

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

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

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

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

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

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

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

02. Company and domain names

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

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

When choosing a domain name consider the following best practices:

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

Choose a name that is easy to spell and remember

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

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

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

03. Market analysis and research

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

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

04. Operations plan

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

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

05. Marketing and advertising strategies

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

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

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

Learn more: How to make a website

06. Financial plan

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

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

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

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

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

Specify how you plan to secure funding

Highlight when you anticipate reaching profitability and generating positive cash flow

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

Coffee shop business plan examples

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

Coffee shop business plan template 1: Coffee Haven Café

Coffee Haven Café is a charming coffee shop dedicated to delivering a premium coffee experience in a cozy and inviting setting. Our unique blends, ethically sourced beans and commitment to sustainability set us apart in a competitive market. By fostering community engagement and partnering with local artists, we aim to become a cultural hub that brings people together over exceptional coffee. Through strategic marketing efforts and a strong online presence, we project profitability within 18 months.

Company and domain name

Company name: Coffee Haven Café

Domain name: www.coffeehavencafe.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Company name: Brew & Gather Coffee House

Domain name: www.brewandgathercoffee.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How profitable is a coffee shop?

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

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

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

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

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

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

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

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

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

Why do coffee shops fail?

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

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

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

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

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

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

Coffee shop business plan FAQ

How do you start a coffee shop business plan.

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

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

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

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

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

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

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

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

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 an eCommerce 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?

• 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 ”

Sling is now Sling by Toast! Learn more

More Features

• Restaurants
• Get Started

How To Write a Coffee Shop Business Plan: Step by Step

• Templates & Guides

Want to open a coffee shop of your very own? Give it the best chance for success by writing a coffee shop business plan.

But, what exactly is a business plan, why do you need one, and what’s the best way to make such a plan?

In this article, we discuss the answers to those questions and how the right technology can help you run things smoothly once your coffee shop business plan becomes a reality.

Table of contents

What is a coffee shop business plan, do you need a coffee shop business plan, creating a coffee shop business plan.

A coffee shop business plan is a written document that describes:

• The nature of the business
• How the business is organized
• The business’s financial projections
• Goals the business would like to reach
• Strategies for reaching those goals
• The time frame for reaching those goals

In essence, a coffee shop business plan is a roadmap that provides structure and direction to an as-yet unformed operation.

Many first-time, prospective entrepreneurs wonder if they really need a business plan to get started. The answer is yes .

Without a business plan, it will be very difficult — some would say impossible — to get a loan from a bank or funding from an investor.

But, even if funding isn’t a major concern right now, a business plan provides clear direction on how you intend to get where you’re going and how to make your new endeavor a success .

Sure, we’ve all taken a road trip (or gone traveling) without a map or a plan, and sometimes that can be fun.

Starting a new business, though, demands much more of an investment than just picking a direction and heading out. Starting a new business can occupy all of your time, money, and energy for years to come, so you don’t want to commit yourself without a plan.

That’s what the coffee shop business plan is: a map to help you keep moving in the right direction when things are going smoothly and to show you how to get back on track when they aren’t.

As you get started writing your very own business plan, keep in mind that the document you produce doesn’t have to be the final draft right away, nor does it have to include every single detail about your business.

Yes, some business plans are hundreds of pages long. Yours may reach that level in the end, but don’t allow that fact to overwhelm you now or stop you from getting started.

Get the information on the page to the best of your ability, and then go back and edit as needed to make it the best it can be. A business plan is a living document that may change as your business grows. But it and your business can’t go anywhere until you write your first draft.

Here’s how to get started.

Step #1: Ask and answer questions

As we mentioned, some business plans can be chock-full of details and facts about the business itself, and many first-time owners wonder where all that information comes from.

The answer is simple: The details in your business plan are basically answers to questions you and anyone else may have about how to go about transforming your idea into reality.

Before you write one word, sit down and consider all of the questions you have about what you’re getting into.

For example, you may ask yourself:

• Who will run the business?
• What makes that person qualified to do so?
• What niche will the business fill?
• Who are the business’s target customers ?
• How will the business market and sell its food and beverage to them?
• What is the size of the market you intend to sell to?
• What is the business model for the business?
• How will the business make money?
• Who are the competitors?
• How will the business compete?
• Will the business have an advantage over the competition?
• How does the business plan to manage growth?
• What are the risks and threats confronting the business?
• What can you do to mitigate those risks and threats?
• What are the business’s financial requirements?

Go through the list and answer as many of those questions as you can in whatever level of detail you can muster.

The nice thing about starting with this step (instead of jumping right into word one of the main sections of the plan) is that you can use the answers you generate as the basis for what comes next.

Step #2: Write an executive summary

While the other sections in your coffee shop business plan can go in any order you choose, the first section should always be the Executive Summary.

This section gives a brief overview of the main elements of the coffee shop you plan on running, including:

• Overhead costs
• Labor costs
• Return on investment (ROI)

Keep in mind that this information is here at the start to give readers a quick introduction to the plan. If they want more detail, they can read on.

It’s also important to remember that you’ll likely repeat much of the information in the executive summary later on in your business plan.

That’s OK. You won’t be penalized if a reader finds the exact same details elsewhere in your document.

Step #3: Describe your company

Next, write a description of your company. More specifically, write about the who, what, why, where, and how of your coffee shop.

View the Business Description section as the physical details about the business you intend to run, including:

• Business name
• Your experience
• Contact information
• Partners involved (if any)
• The tax status of the business (e.g., sole proprietor, LLC/LLP, S-Corp)
• Intended or existing location of your coffee shop

It can also be helpful to include a brief mention of your coffee shop’s short- and long-term goals as well as your plan for achieving those goals.

Step #4: Conduct a market analysis

The next section to include in your coffee shop business plan is Market Analysis.

Most market analyses describe three distinct views of the business:

• The industry as a whole (in this case, the coffee shop industry)
• The competition your coffee shop will face (e.g. other shops in the area)
• The marketing you’ll execute to bring in customers

As with the previous two sections, the Market Analysis section can be a relatively brief discussion of these three concepts.

As your coffee shop business grows, you can add sections that address those concepts in more detail later on.

Step #5: Explain your coffee shop’s financials

Both you and your investors are going to want to know how much money it’s going to take to get the coffee shop set up, running, and turning a profit. That’s where the Financials section comes in.

While brevity is important (if not mandatory) in the first few sections on this list, when you explain your coffee shop’s financials, you want to be as detailed as possible.

This is especially true if you hope to secure bank funding or get involved with investors.

To provide the level of detail you need to make the Financials section as complete as possible, consider hiring an accountant to help you prepare this section so that it will be as accurate as possible.

Taking advantage of technology

As you research and write your coffee shop business plan, include information about the technology you’ll use to help run your business.

More specifically, find a software suite that makes it easier to manage and optimize your team.

The Sling app , for example, includes a long list of tools to help make your workforce management as efficient and productive as possible, including:

• Advanced employee scheduling
• Integrated time clock
• Comprehensive communication
• Flexible task management
• And much more

Try Sling for free today to get a better idea of the many ways it can help you once your coffee shop business plan becomes a reality.

Then, for further business management resources, help scheduling your employees, and tips for getting the most out of your team, visit GetSling.com today.

See Here For Last Updated Dates: Link

This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for specific advice.

Find the article useful? Share with others:

Related articles

How To Start A Coffee Shop | A Detailed Guide

What do you get when you cross a tireless entrepreneurial spirit with a love for...

Restaurant Business Plan: What To Include, Plus 8 Examples

Do you want to ensure the success of your new foodservice endeavor? Write a rest...

Food Truck Business Plan: The Beginner’s Guide For Success

Do you want to give your new mobile eatery the best chance for success? Write a ...

Get started today

Schedule faster, communicate better, get things done.

How to Write a Coffee Shop Business Plan

Have you always dreamed of opening a coffee shop? Then you’ve come to the right place.

Starting a coffee shop business plan is the first step to success. If you’re planning on raising startup capital by pitching to investors , make sure your coffee shop business plan is ready because they will definitely ask to see it.

If you’ve never seen a coffee shop business plan before, here’s a sample you can use (along with the template below) to get you started. It covers all the basic elements of a proper business plan, including an executive summary, overview and description of a coffee shop business, marketplace information, marketing initiatives, business operations, and financial plans.

In this article, we provide a step-by-step approach on how to write a successful coffee shop business plan. We outline each section needed in a good plan, explain that section’s purpose, and provide an example you can use as a starting point.

6 things to consider before  writing your coffee shop business plan

Before you start actually writing your coffee shop business plan, there are a few things you want to nail down first that will save you time and make communicating your vision a lot easier.

Make sure you can answer each of the following questions:

1. How long should a coffee shop business plan be?

A business plan can be anywhere from a few sheets to hundreds of pages long, depending on the size of your proposed business.

For a relatively small business like a coffee shop it’s best to keep the plan as brief and succinct as possible. We recommend 30 pages or less – especially if you intend to submit it to financial lenders for debt or equity financing. They will be looking for solid research, analysis, and strategy written in a concise form.

2. Who’s going to read your coffee shop business plan?

Take into consideration the audience of your coffee shop business plan. Will you be approaching financial lenders or investors? Or is your plan specifically for you and your management team? Just like creating a marketing plan , you need to adjust your writing style and messaging to match the audience’s interest. Certain sections might need more emphasis over others depending on your primary audience.

3. Where will your coffee shop be located?

If you aren’t ready to choose an exact location for your coffee shop , you should at least know which neighbourhood you’re targeting. The location you choose will determine important elements of your coffee shop business plan, such as your competitive analysis and venue type.

4. What is your venue type?

It’s important that you have a clear idea or concept of the type of coffee shop you want to open . What you need to cover in your coffee shop business plan will depend on whether you’re opening a small intimate cafe, gourmet food stand, or craft microbrewery. These can all be considered coffee shops. Sometimes it’s helpful to create Pinterest boards to help you fully visualize your concept.

5. What are your business goals?

Do you have any ideas of what your short- and long-term business goals are for your coffee shop? Are you going to start with one location and then expand a year after launching? Do you want to start off smaller with a food stand and then, once you have enough sales, open a sister coffee shop in a different neighbourhood? Be as specific as you can when communicating your vision and the goals you’re aiming to achieve.

6. What are your credentials and experience?

Have you ever worked in the coffee shop industry? Do you have any certifications? Consider the skills and experience you have that would give your audience confidence that you’re the right person for the business.

If you’re confident you have the skills and experience, then it should show in the coffee shop business plan. But if you’ve never spent any time working in the foodservice industry, you may want to get some hands-on experience so that, at the very least, you know what you’re getting yourself into.

5 Tips for Writing a Coffee Shop Business Plan

So now you’re ready to start writing your coffee shop business plan. To make the writing process easier for you, here are five useful tips:

• Collect relevant resources (in addition to this article) that will help you when writing. This can include how-to guides, research and trends, and sample business plans – real or imagined. You can use all of these as inspiration and include them in the appropriate sections of your business plan.
• Write down as much as you can without filtering yourself in the first round. Once everything is out, you can then determine which parts are relevant to which part of your business plan.
• Don’t let yourself get stuck on one section. If you get writer’s block, make a note and move on to the next section. You can revisit it later, once you have more information or clarity.
• Use visuals such as graphics and images to clarify your message wherever appropriate. As you write your coffee shop business plan, pull images from any Pinterest boards you created while visualizing your venue and concept.
• All good things take time. So will your coffee shop business plan. Don’t worry if it takes longer than what you were hoping for. As time passes and you continue to work on your plan, you’ll be able to fine-tune your message and express your thoughts in a cohesive and succinct way.

Coffee Shop Business Plan Template

1. table of contents.

Even for a small coffee shop, your business plan is going to be a long document. A table of contents makes it easier for someone to find specific sections as they read through your plan.

2. Executive Summary

While the executive summary should appear at the beginning of your business plan, it’s the last thing that should be written because it’s an overview of the full business plan. It’s the most important part of your business plan and should be no longer than one page. The purpose is to summarize the main points of the plan, which helps save your audience time. They can then review the sections that are of most interest to them if they want to learn more. Remember to keep this section concise yet inspiring.

3. Business Overview

This section should include a list of basic information about your business. Refer to our coffee shop business plan template to see what it should look like when it’s fully fleshed out.

Below are common details that should be included in your plan, especially if you’ll be seeking bank loans or pitching to investors:

• Legal name of business
• Trade name of business (doing business as)
• Business address (or potential business address)
• Nature of business
• Structure of business
• Date business was established
• Current mailing address
• Phone number
• Banking details (branch and banker’s name)
• Social media handles

4. Business Description

This section is where your coffee shop concept comes to life.

It’s time to describe your business in great detail: elements like what the concept is going to look like, where it will be located, and the kind of vibe or brand you’ll be creating. Your business description provides paint a clear picture of your vision and goals.

Here’s what to include in your business description:

Will your coffee business be a sole trader, partnership, limited liability partnership or limited liability company? What people will be involved and what are their roles? Will some wear multiple hats? Be concise – you’ll go into more detail about the team later on.

Your coffee shop concept is your big idea . Take the time to describe why your idea is unique and what differentiates you from other coffee shops. Why should coffee drinkers choose your shop over the one down the street or two blocks over? Also, consider what kind of experience you want to create for your customers. Having a restaurant is not just about what you serve to customers but how you serve the whole experience.

Mission statement

Your restaurant mission statement  is one sentence that describes what your coffee shop will achieve. Think of your end goal as the ultimate driving force behind your business. Your mission statement should be something that can be displayed on marketing materials, so keep it short and straight to the point. It needs to easily express to people what your business is about.

Short- and long-term goals

In this section, you’ll want to mention any relevant personal and/or business goals. Your short-term goals describe your first year as a coffee shop owner. Long-term goals involve bigger picture thinking. They are things like how to scale your business or expand into new markets. Be descriptive in this section, but also realistic (i.e. stay within the scope of your financial projections ).

Menu and services

Include a sample menu and discuss your concept in greater detail. If you’re going to offer catering, delivery, or any other services, also include details about complimentary parts of the business in this section. Describe anything else you’ll be selling, such as pre-packaged foods, canned or bottled drinks, or retail products.

You probably haven’t secured a location or negotiated a lease just yet. No problem. Instead of those details, mention the neighbourhoods you’re considering for your venue and why. Answer the following questions and consider the effects they will have on your business:

• Attraction: Which features of the neighbourhood will affect your coffee shop?
• Competition: What other coffee shops or related businesses are located in the area?
• Demographics: What kinds of people live, work, or visit the neighbourhood?

Describe your concept with as much visual detail as possible. Communicate why these details are important and how they relate back to your brand. If you’re working with a design agency or interior designer, mention them in this section and include their visual proposals or mockups.

Business description summary

This section covers a lot, so briefly sum it all up at the end. The business description tends to be filled with a lot of necessary details, so a summary will help your audience understand the main points.

5. The Marketplace

For this section of the coffee shop business plan, you want to demonstrate that you have thoroughly analysed the target market and can prove there is a demand for your business.

A good way to gather intelligence is to do a competitor analysis . Visit your competition, document their menu items, marketing tactics, business practices, pricing, and brand positioning, then analyze your findings from a variety of different angles.

You can also ask people in your prospective neighbourhood about how businesses perform in that area. By gathering as much information as you can, your marketplace assessment will be realistic and paint a clearer picture of how your business can be successful.

The marketplace section is another lengthy part of the coffee shop business plan, that includes the following components:

Market segment

In this section, you should provide an overview of your target audience. Consider details like demographics, psychographics, and segments of your target market.

It’s time to put your target customers under the microscope, show how well you know them. What types of people will frequent your coffee shop and what similarities/differences do they share? Get qualitative and quantitative data, and reference external resources that provide statistics about your customer segments and any other relevant information. Note that each customer segment within your target demographic will most likely have specific needs.

Market Trends

Include relevant statistics about past and current trends within your targeted marketplace. Anything that relates to the demand for a coffee shop business, as well as social and economic factors that have affected similar businesses in the area. Also mention if you’ve conducted your own research or hired a third-party to conduct research on your behalf.

Competition

In this section, you’ll want to be specific about who you consider to be competition. You’ll have both direct and indirect competition within your chosen neighbourhood. Your direct competitors are the coffee shops that offer similar customer experiences and types of cuisine. Indirect competitors may be different from your coffee shop concept but still compete for your target market’s attention and spend.

Now that you’ve analysed the competition, you should be able to articulate what makes you stand out from the others. What does your coffee shop offer to your target audience that no one else currently provides? Why should someone choose your business over another?

Opportunities

Taking into account your competition and customers, you should see where the gaps lie between supply and demand. Use this knowledge to fine-tune your concept and provide a better option for customers. From the menu to opening hours, whatever your coffee shop can do better than everyone else should be highlighted in this section.

Now consider the flip side: what advantages do your competitors have over your business? What do they offer to the market that your coffee shop doesn’t? Provide rationale as to why your coffee shop faces these barriers and, most importantly, how you’ll tackle them once you’re officially open.

Marketplace summary

Time to sum it all up. Expect this section to be a long one, because you’ve got to summarise everything you’ve outline in regards to your marketplace. Highlight the pieces of information that will have the most impact on your audience, such as the demographics of your target market, advantages, and opportunities.

6. Marketing

You may be an amazing barista who can make a killer cappuccino, but without consistent customers and sales, your business isn’t going to last for very long. You need a marketing strategy to keep people coming through the doors.

In this section, we’ll provide an overview of what to include in your marketing strategy, which you can use later on as the framework for your full restaurant marketing plan .

Positioning

Describe how you’ll appeal to your target customers and stay top of mind. Use the differentiators you outlined in the marketplace section to guide your positioning strategy. What do you offer that your target customers can’t get anywhere else? How will you communicate these offerings?

Describe your pricing strategy and how it compares to competitors. The most common question small businesses owners have is, “How do you know what price to charge?”

Questions that will help you decide on a pricing strategy include:

• What are your food costs? (the total amount spent on food and beverages)
• What are your food portion costs? (the sum total of all ingredients in one menu item)
• What is the market price of similar menu items? (i.e. your competitors)
• How does your pricing compare to the market price?
• How is your pricing competitive?
• What kind of return on investment do you expect with this pricing strategy, and within what time period?

Once you’ve determined your pricing strategy, make sure it aligns with your financials. The prices you charge have to be competitive but still allow you to make a reasonable profit.

Online promotion

• Social Media: If you plan on creating and maintaining social media accounts like Twitter, Instagram, and Facebook, explain how you’ll use them to promote your business and brand.
• Website: Describe your website’s overall concept and how it aligns with your brand. Provide visuals of the main elements and design style. Also, mention if you plan to built the site in-house or pay for professional services.
• Advertising: List all of your paid digital promotions such as review sites, email marketing, and social media ads, as well as any agencies you’ll work with to develop and execute your digital marketing initiatives.

Traditional promotion

Will you be hosting an event for coffee lovers? Running a free coffee for a month contest? What about mailing printed ads to tempt locals with photos of your pastries? It’s always a good practice to have a mix of promotional tactics, so if you plan on utilising traditional channels as well as digital, list all your planned traditional ones here.

Marketing summary

Again, here’s your opportunity to briefly summarise your overall marketing strategy and describe which channels you’ll be investing in the most. Emphasize why your marketing strategy is the best approach for both the type of coffee shop you’re opening and the neighbourhood.

7. Business Operations

You’ve described your vision, the marketplace, and how you plan to market your business. Now it’s time to outline how you’ll actually execute your plan. This means outlining who will operate the day-to-day of your coffee shop.

Describe the main business management categories relevant to your coffee shop and identify the core team members who are going to have responsibility for each category. Introduce everyone on your payroll, from your restaurant consultant to management team to star baristas. List everyone’s qualifications, skills, and responsibilities, placing emphasis on how each role will help you reach your business goals.

List your suppliers according to type. Include descriptions of how each supplier will serve your coffee shop’s needs , as well as their credit and payment terms. This will include everything from food to technology to takeout coffee cups – even landscaping, if you location needs it. Consider how these suppliers may fit into your overall brand, in terms of what quality they are and how they’re sourced.

Since your coffee shop needs insurance coverage , conduct research to determine what’s mandatory. From general liability to workers’ compensation, getting the right insurance will help you sleep at night knowing you’re covered if something goes wrong (a big knock on wood here). Be sure to check with local and national requirements because these requirement may vary. Also, compare quotes from insurance providers. List each type of insurance your coffee shop will need and include what’s covered.

Figuring out what licenses your coffee shop will need is similar to insurance requirements (though this list may be longer). Required licenses and permits can be everything from a business license to food handler permits to music licenses. Start your research as soon as possible by checking your local government office website. List all of the licenses and permits required for your coffee shop and staff in this section.

Business operations summary

Summarize the main points discussed in the Business Operations section. This should be fairly straight forward, as it’s more fact-based than other sections.

8. Financials

The financial plan is the most important section of your coffee shop business plan – especially if you need debt financing or are trying to pitch to investors. Your financial plan has to demonstrate your business’ potential for growth and profitability. To do this, you will need to document your forecast in four main parts:

• Revenue (forecasted sales)
• Controllable costs (food and beverage costs, cost of labour)
• Expenses (rent, supplies, utilities, marketing, etc.)
• Start-up costs (costs related to opening your coffee shop, such as capital improvements and training)

For new businesses, a good rule of thumb is to underestimate revenues and overestimate expenses – the age old “under promise, over deliver” strategy.

We’ve created a forecast within our coffee shop business sample plan to demonstrate what numbers need to be included. Once you understand the sample forecast, you can then create your own forecast sheets and add in your numbers to project how profitable you’ll be.

9. Coffee Shop Business Plan Summary

Your business plan summary needs to tie together the overall message you’re trying to communicate. Use this final section to highlight how your coffee shop is different from what’s currently available in the market. It’s an opportunity for you to reiterate the most important points about your business.

Make sure to include the following sections:

• Why your business will be successful: In a few sentences, repeat how your coffee shop is different and why your business will work.
• What you need to be successful: If you’re asking for funding, repeat that ask here.
• A thank you note: Thank your audience for reading your coffee shop business plan and remind them that you value their time and feedback.

If you’re thinking about opening a coffee shop then creating a business plan needs to be at the top of your priority list. Remember: you’re building a foundation for success. This includes saving money – because you’ll have your financials organized – and being able to actually get funding from banks and investors.

It’s a lot of work, yes. But keep in mind that you’re working toward making your dream a reality. Any time you can put in now, and we highly recommend additional research wherever possible, will benefit you on the other side – from the first cup to that last drop.

More in Operations

The different types of restaurant concepts.

Get started on defining your own restaurant concept

How to Open a Bar Successfully

Learn the fundamentals of how to open a bar successfully

Defining Your Restaurant Target Market

Who do you envision visiting your restaurant?

Most Popular

How Much Does it Cost to Open a Restaurant?

Guide to Buying Restaurant Equipment

Choosing a Restaurant Location

From Beans to Business: How to Craft a Coffee Shop Business Plan

Are you looking to start your own coffee shop? Fantastic . Opening a cafe can be a lucrative investment that can generate anywhere between $50,000 and $250,000 annually ( Hotshot Coffee Sleeves , 2023). But to truly revel in the riches of a vibrant and profitable cafe, your business needs to be built on a robust coffee shop business plan. 

Without a business plan, your journey will be rudderless and you’ll struggle to assess whether the steps you’ve taken have brought you closer to or further away from your goal. 

Direction is crucial and your coffee shop business plan is a roadmap that will propel you to your business objectives whilst minimizing the stress, frustration, and confusion of running a business. 

But why is this important? 

Well here are some important coffee shop stats:

• Around 32% of people purchase coffee from a coffee shop one to three days a week ( Drive Research , 2023)
• There are approximately 38,411 cafes in the USA today ( Statista , 2022)
• 517 million cups of coffee consumed per day ( Coffee Affection , 2023)

The caffeine craze is real. If your cafe fails to meet expectations, your customers will turn to the one across the road. 

In an industry that's flourishing, yet fiercely competitive, we've outlined the important steps that you need to create an effective coffee shop business plan that will keep you on the front foot. 

What is a coffee shop business plan?

A coffee shop business plan serves as a blueprint for your coffee shop venture, outlining your goals, strategies, and the tactics to achieve them. It's a comprehensive document that guides you through every aspect of your business, from conceptualization to execution. 

Luck should not be your crutch, but rather, rational planning and informed decision-making will be the foundation on which your coffee shop's success is built.

The Building Blocks of a Winning Coffee Shop Business Plan

1. creating your coffee shop identity.

With nearly 50% of people between the ages of 18 and 24 drinking coffee, as well as 70% of seniors, coffee has become an integral part of our culture ( Toast , 2023). We don’t have to travel far to satisfy our caffeine cravings, which poses an important question for all coffee shop owners…

Why should customers buy from you?

If you want to stand out from the crowd, you’ll need to create a powerful brand identity that turns heads and pulls people to your cafe. First define your mission and values, and then build your coffee shop's identity around these foundational principles.

What messages do you want to communicate? What purpose do you want your coffee shop to serve for customers? What promises are you making to your customers?

Only once you’ve answered these questions will you be able to tell the story of your brand. 

2. Understanding Your Target Audience

The most successful brands in any industry’s niche understand their customers inside out. It’s one of the prerequisites to success and it’s no different in the coffee industry. The first step is to define your target market . 

Are they young professionals looking for a quick caffeine boost? Or are they more family-oriented? Pinpointing your target demographic will help you tailor the experience to their preferences and set the foundations for a loyal customer base. 

Try to go beneath the surface and investigate A-Z of your target market’s interests, personalities, and preferences. Once gathered, you’ll be able to align this data with your brand identity to create a captivating coffee shop experience that will resonate with your customers. 

3. Crafting a Compelling Menu Design

Your menu design isn’t just a list of food and drink items — it’s a powerful marketing tool used to influence spending decisions and boost profit. The very look and feel of one can set the tone for the cafe experience, either nudging a customer to reach for the muffin, the mocha, or the iced americano, or even leave . 

This means that you should use your menu as an opportunity to:

• Communicate your brand’s story
• Present items in a way that entices orders
• Promote your best products with higher margins
• Promote special offers and deals 

Here are some tips to follow:

• Prioritize readability
• Use the design to reflect your brand personality
• Be descriptive in your copy about your items — specificity drives persuasion
• Highlight potential allergies in item descriptions
• Don’t use dollar signs — studies show that customers are more likely to spend more when they just see the number representing the cost of the item ( Cornell Chronicle , 2009) 

4. Building the Right Interior Design and Ambiance

The most successful cafes are able to strike a balance between functionality and aesthetics to create the ultimate customer experience. It’s an opportunity to bring your brand personality to life and make it resonate with your target market, allowing you to build a loyal customer base that will boost your cash flow. 

Everything from the lighting and colors to materials and furniture will have an effect on the subconscious mind, so it’s crucial that you ensure the ambiance strategically aligns with the character of your brand. 

Here are some key design elements to focus on in your cafe business plan:

• The layout for optimal traffic flow
• Colors and lighting
• Decor and furniture

5. Hiring the Right Talent

Employees are the lifeblood that keeps your business alive. They’re the front line of communication with customers and are responsible for leaving a lasting impression that can either elevate your coffee shop or undermine its success. 

Poor customer service is enough to contaminate your brand image and create friction with your customer base, so it’s absolutely essential that you recruit the right talent . Below are the best practices to follow when hiring staff for your coffee shop.

Define Essential Roles

Identify critical roles for seamless coffee shop operations: skilled baristas, customer-engaging servers, and dedicated kitchen staff. These roles collectively create a stellar customer experience.

Prioritize Skill and Customer Focus

Highlight that your team represents the heart of your coffee shop. Their interactions mold perceptions, foster loyalty, and establish a welcoming atmosphere. Seek communicative, coffee-passionate individuals who value customer connections.

Strengthen Training and Retention

Explain your approach to building well-prepared teams. Outline training that maintains quality and service standards. Showcase your commitment to retention via competitive compensation, growth opportunities, and nurturing a positive workplace culture.

Note: Want a more efficient way of managing your workforce? Check out our coffee shop payroll and workforce management software to optimize employee management. 

6. Developing an Effective Marketing Strategy

A powerful marketing strategy is the bedrock of any successful coffee business. And being in the digital age, where people see anywhere between 4,000 and 10,000 ads per day, it’s crucial that your coffee shop’s messaging is strategically positioned to resonate and capture the attention of your customers. 

Without this, your coffee shop will struggle to be seen and you’ll feel the pressure of an inconsistent cash flow that will only guarantee stress. Below are the most important marketing tactics to include in your coffee business plan to accelerate growth. 

Include Your Plan for Reaching Your Target Audience

Outline the avenues through which you'll engage your intended customers. Define demographics, preferences, and behaviors to tailor your approach effectively. Whether it's young professionals, students, or families, your strategy should resonate with your audience.

Optimize Local SEO

If someone in the area is looking for a coffee shop, you want to be one of the first listings that appear. Optimizing your Google My Business Profile is a cost-effective and guaranteed way to put your business on the map (quite literally), getting more customers through the front door.

Here’s how to optimize your profile:

• Include target keywords 
• Gather 100+ citations 
• Ask for ratings from customers
• Have high-quality photos of your cafe 
• Portray brand personality in your description
• Include an updated menu with prices

Leverage Social Media, Local Events, and Collaborations

Leverage the power of social media platforms to showcase your coffee shop's uniqueness. Engage customers through captivating content, behind-the-scenes glimpses, and interactive posts. Additionally, tap into local events, festivals, and collaborations to introduce your coffee shop to a wider audience and build community relationships. ‍

Final Thoughts on Crafting a Coffee Shop Business Plan

Brewing the perfect cup of coffee won’t be enough to keep you at the forefront of today’s competitive and crowded coffee shop marketplace. It's crucial that you have a robust coffee shop business plan to build your unique identity, connect with your audience, and carve out a lasting niche in this bustling landscape.

By investing in a rigorous coffee shop business plan, not only will you remain competitive, but you’ll maximize your chances of creating a thriving coffee business with a loyal customer base that becomes the heartbeat of a vibrant community, rewarding you with more than just money. 

Want a fast and easier way of managing your coffee business?

Then book your free demo now to organize your workforce management in one place and eliminate the headaches of HR, payroll, scheduling, and so much more!

Table of content

You Might Also Like

6 Creative Coffee Concoctions

Refresh Your Menu: How to Make Iced Matcha for Your Startup Cafe

How to Design a Coffee Shop: A Balanced Blend of Tips and Strategies

Want to know more about how you could work more in on your business, save money with this easy all-in-one restaurant management tool, faster ‍ payroll and onboarding, hours saved ‍ per week, saved on labor costs, don't take our word for it, hear what our customers have to say.

“In the labor numbers, we were reporting about a $300 to $400 difference than what we were getting through Push!” ‍

‍ -Tara Hardie, ZZA Hospitality Group, 16 locations

Easily and quickly scale your restaurant with the all-in-one solution

C corps and individuals extension deadline Oct. 15

Customer login

Tax Pro login

Business tips

How To Write A Business Plan For Your Coffee Shop In 2024

14 Minute Read

Copy Article URL

How to Write a Successful Coffee Shop Business Plan Template for 2024

Antonio Del Cueto, CPA

March 27, 2024

Embarking on the journey to open a coffee shop is akin to starting a new adventure in a vast coffee jungle, where the aroma of success lingers in the air, and each path leads to exciting possibilities. In this expedition, a coffee shop business plan template serves as your trusted map, guiding through the thickets of the coffee industry and unveiling the secrets to make your coffee shop a treasure trove of flavors and warmth.

This guide is designed for intrepid startup heroes, business owners with a dream in their heart, and baristas with magic in their hands. Those who want to open their own coffee haven will find the tools to navigate the complexities of payroll, understand the importance of a barista's qualification, and learn how to stand out in the bustling marketplace. Dive into this adventure with us, and let's brew success together.

How to Write a Coffee Shop Business Plan

Starting a coffee shop is exciting. Before you become the best coffee shop owner, you need a plan. This guide helps you write your coffee shop business plan easily. We cover everything from what to include to how to do your financial planning. Let's dive in!

Coffee Shop Business Plan Template

Need a coffee shop business plan? Use this free coffee shop business plan template. It's a starting point. The template helps you organize your ideas. It covers important parts like your coffee shop concept, the type of coffee you'll serve (like third-wave coffee), and more. Think of it as a map for your journey to opening your coffee shop.

Writing a Business Plan for Your Coffee Shop

Writing a business plan for your coffee shop might sound hard, but it's key to success. Start by describing the coffee shop you want to open. What makes it special? Will you have baristas making the best coffee? Include details about your location, the kind of shop you want to open, and your target customers. Your plan should also talk about marketing your coffee shop. This is how you tell people why they should come to your shop. A good business proposal shows your vision clearly.

Financial Planning for Your Coffee Shop

Every coffee shop owner must think about money. Financial planning is a big part of your business plan. You have to figure out how much money you need to start and keep your coffee shop running . This includes costs like renting a place, buying equipment, and paying your baristas. Also, think about how much money you expect to make from selling coffee and other items. Planning this well helps you keep your shop open for a long time.

Key Components for a Successful Coffee Shop Business

Opening a coffee shop is more than just selling cups of coffee. It's about creating a space where people want to come back. To make your coffee shop a success, you need a good plan. Here, we talk about important parts of your coffee shop’s business plan. Let's make it easy to understand what you need to do.

Defining Your Target Market

Knowing who will buy our coffee is the first step. This is about your target market. Think about who you’re opening your coffee shop for. Are they busy workers who need a quick coffee? Or maybe families who enjoy a cozy spot? Understanding this helps in creating a marketing plan. This section of the coffee shop business plan makes sure you know who you’re talking to.

Developing a Pricing Strategy

How much will your coffee cost? This question is about your pricing strategy. Your prices need to be fair so people feel good about buying your coffee. But, you also need to make money to keep your coffee shop running. Think about the cost of making a cup of coffee and how much people are willing to pay. This is a key part of your business operations section. It shows how your coffee business will make money.

Creating an Executive Summary

Every business plan starts with an executive summary. This part gives a quick overview of your whole plan. It talks about your coffee shop , what you want to do, and how you plan to succeed. Even though it's at the beginning of your business plan, you write it last. It sums up everything about your coffee shop’s plan in a few short paragraphs. This makes it easy for anyone to understand your business’ goal.

Steps to Starting a Coffee Shop

Starting a coffee shop is a journey. It's about creating a place where people love to be. This guide will show you the main steps you need to take. We will keep it simple and clear, so you know exactly what to do. Let’s start making your dream of opening a coffee shop come true.

Choosing the Right Location for Your Coffee Shop

Finding where your coffee shop should be is very important. You want a spot where lots of people pass by. Before you decide, conduct research. Look at where people spend time and what other shops are nearby. A good location can help your coffee shop become very popular. Remember, the place you pick is a big part of the experience you want to give your customers.

Building Your Management Team and Staff

Your coffee shop needs a great team. This includes everyone from managers to baristas. When you’re going, think about the skills you need. Your team should know how to make the best espresso and other drinks. They should also make customers feel welcome. Include details in your company overview about the team you want to build. This shows potential investors or lenders that you have a solid plan for your staff.

Understanding the Cash Flow Projection

Money matters a lot. You need to know how much does it cost to open and run your coffee shop. This is where cash flow projection comes in. It helps you see how money will come in and go out. Include information about costs like rent, supplies from your supplier, and paying your team. Also, add how much money you expect to make from selling coffee and food. Check the balance sheet and financials section of your business plan. This part is very important for lenders or investors. It shows them that you know how your coffee shop can succeed.

Each of these steps is part of the process of opening your coffee shop. They help you write the executive summary, create a sample menu, and choose the right POS (point of sale) system. Keep everything concise but informative. This way, everyone understands your plan and how your coffee shop will become a favorite spot.

Customizable Elements in a Coffee Shop Business Plan

Creating a coffee shop business plan is like drawing a map for an adventure. It shows you where you want to go and how to get there. But every coffee shop is unique. So, your plan should have parts that you can change to fit your dream. Let’s look at what you can customize to make your plan just right.

Including a Marketing Plan for Your Coffee Shop

Your marketing plan tells people why they should come to your coffee shop. It’s one section you can really make your own. Talk about using social media accounts to share photos and news. Think about email marketing to send special offers. Marketing also means having a clear idea of how to tell people about your shop, both online and in the real world. This way, more people drink your coffee and enjoy your place.

Developing a Unique Coffee Shop Concept

What makes your coffee shop different? This part is all about your idea. Maybe you want to create a place that also serves books and music. Or a spot where every cup of coffee comes with a story. Your concept should show what’s special about your place. This makes your coffee shop stand out and gives customers a reason to come back.

Integrating Pastry and Beverage Offerings

Food and drinks are the heart of your coffee shop. In this part, you decide what to serve alongside your coffee. Will you have pastries? What about other drinks? Maybe you want to offer food that has a special certification, like organic or gluten-free. This section helps you keep enough variety to make everyone happy and coming back for more.

Free Coffee Shop Business Plan Templates in 2024

Starting a coffee shop in 2024? Great! There are free b usiness plan templates that can help. These templates give you a structure. Then, you add your own details. Let’s see how to use these templates to your advantage.

Utilizing a Free Coffee Shop Business Plan Template

A free template is a great tool during the writing process. It shows you what sections your plan needs. For example, it has spots for your marketing plan, your concept, and your menu. Using a template means you don’t forget anything important. It’s a good base that you can add to and change as needed.

Personalizing Your Coffee Shop Business Plan

Even with a template, your plan should show who you are. Add your style to every part. If you’re great at digital marketing, highlight that. If your foodservice is going to be amazing, talk about it a lot. Make sure every section reflects your vision and goals.

Adapting the Business Plan for Different Types of Coffee Shops

Not all coffee shops are the same. Maybe you’re opening a cozy corner spot or a drive-thru. Your business plan should fit your type of shop. Change the template to match your needs. Think about what makes your coffee shop special and make sure your plan shows that. The final section should leave readers excited about what you’re creating.

Key Takeaways:

• Location : Where your coffee shop will be. Think of it as choosing the best spot in the park for your lemonade stand.
• Menu : What drinks and snacks you'll sell, like planning a snack bar for your friends.
• Target Customers : Who you want to visit your coffee shop, such as people who love reading books or using laptops in cozy places.
• Budget : How much money you need to open and keep the shop running, like planning your allowance for new games and snacks.
• Marketing Strategies : Ways to make people excited about your coffee shop, like inviting friends to your birthday party.

How can Taxfyle help?

Finding an accountant to manage your bookkeeping and file taxes is a big decision. Luckily, you don't have to handle the search on your own.

At Taxfyle , we connect small businesses with licensed, experienced CPAs or EAs in the US. We handle the hard part of finding the right tax professional by matching you with a Pro who has the right experience to meet your unique needs and will manage your bookkeeping and file taxes for you.

Get started with Taxfyle today , and see how finances can be simplified.

Legal Disclaimer

Tickmark, Inc. and its affiliates do not provide legal, tax or accounting advice. The information provided on this website does not, and is not intended to, constitute legal, tax or accounting advice or recommendations. All information prepared on this site is for informational purposes only, and should not be relied on for legal, tax or accounting advice. You should consult your own legal, tax or accounting advisors before engaging in any transaction. The content on this website is provided “as is;” no representations are made that the content is error-free.

Was this post helpful?

Did you know business owners can spend over 100 hours filing taxes, it’s time to focus on what matters..

With Taxfyle, the work is done for you. You can connect with a licensed CPA or EA who can file your business tax returns. Get $30 off off today.

Want to put your taxes in an expert’s hands?

Taxes are best done by an expert. Here’s a $30 coupon to access to a licensed CPA or EA who can do all the work for you.

Is this article answering your questions?

Thanks for letting us know.

Whatever your questions are, Taxfyle’s got you covered. If you have any further questions, why not talk to a Pro? Get $30 off today.

Our apologies.

Taxes are incredibly complex, so we may not have been able to answer your question in the article. Fortunately, the Pros do have answers. Get $30 off a tax consultation with a licensed CPA or EA, and we’ll be sure to provide you with a robust, bespoke answer to whatever tax problems you may have.

Do you do your own bookkeeping?

There’s an easier way to do bookkeeping..

Taxfyle connects you to a licensed CPA or EA who can take time-consuming bookkeeping work off your hands. Get $30 off today.

Why not upgrade to a licensed, vetted Professional?

When you use Taxfyle, you’re guaranteed an affordable, licensed Professional. With a more secure, easy-to-use platform and an average Pro experience of 12 years, there’s no beating Taxfyle. Get $30 off today.

Are you filing your own taxes?

Do you know if you’re missing out on ways to reduce your tax liability.

Knowing the right forms and documents to claim each credit and deduction is daunting. Luckily, you can get $30 off your tax job.

Get $30 off your tax filing job today and access an affordable, licensed Tax Professional. With a more secure, easy-to-use platform and an average Pro experience of 12 years, there’s no beating Taxfyle.

How is your work-life balance?

Why not spend some of that free time with taxfyle.

When you’re a Pro, you’re able to pick up tax filing, consultation, and bookkeeping jobs on our platform while maintaining your flexibility.

Why not try something new?

Increase your desired income on your desired schedule by using Taxfyle’s platform to pick up tax filing, consultation, and bookkeeping jobs.

Is your firm falling behind during the busy season?

Need an extra hand.

With Taxfyle, your firm can access licensed CPAs and EAs who can prepare and review tax returns for your clients.

Perhaps it’s time to scale up.

We love to hear from firms that have made the busy season work for them–why not use this opportunity to scale up your business and take on more returns using Taxfyle’s network?

by this author

Share this article

Subscribe to taxfyle.

Sign up to hear Taxfye's latest tips.

By clicking subscribe, I agree to Taxfyle's Terms of Service , Privacy Policy , and am opting in to receive marketing emails.

Get our FREE Tax Guide for Individuals

Looking for something else? Check out our other guides here .

By clicking download, I agree to Taxfyle's Terms of Service , Privacy Policy , and am opting in to receive marketing emails.

File simpler.

File smarter.

File with Taxfyle.

2899 Grand Avenue, Coconut Grove, FL 33133

Copyright © 2024 Tickmark, Inc.

• Sample Business Plans
• Food, Beverage & Restaurant

How to Write a Coffee Shop Business Plan?

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.

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. 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 .

2. 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.

3. 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.

4. 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.

5. 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.

6. 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?

7. 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.

8. Outline your operational plan

Operation 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.

9. 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 coffee shop 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.

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

Turn your business idea into a solid business plan

Explore Plan Builder

Plan your business in the shortest time possible

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

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 .

• Customer Reviews
• Net 30 Account
• Wise Services
• Steps & Timeline
• Work at a Glance
• Market Research at a Glance
• Business Plan Writing Services
• Bank Business Plan
• Investor Business Plan
• Franchise Business Plan
• Cannabis Business Plan
• Strategic Business Plan
• Corporate Business Plan
• Merge and Acquisition Business Plan (M&A)
• Private Placement Memorandums (PPM)
• Sample Business Plans
• Professional Feasibility Study
• PowerPoint Presentations
• Pitch Deck Presentation Services
• Business Plan Printing
• Market Research
• L-1 Business Plan
• E-2 Business Plan
• EB-5 Business Plan
• EB-5 Regional Centers
• Immigration Attorneys
• Nonprofit Business Plan
• Exit Business Planning
• Business Planning
• Business Formation
• Business License
• Business Website
• Business Branding
• Business Bank Account
• Digital Marketing
• Business Funding Resources
• Small Business Loans
• Venture Capital
• Net 30 Apply

Coffee Shop Business Plan Sample

Fill the form to download coffee shop business plan example.

The coffee shop business plan is an essential tool for coffee shop owners and those who want to open a coffee shop.

A coffee shop business plan will give you an idea of how much a coffee shop will cost, how those costs will be funded, and how much money you expect to make from it. 

When it’s ready, you can show it to investors, banks, partners, and anyone else who can help you open a cafe. Getting this document right is worth your time and effort, so make sure you do it right.

After helping entrepreneurs in the USA launch more than 400 independent coffee shops , we know that a business plan is vital for success.

We are here to help you write a coffee shop business plan.

Here’s a business plan sample pdf and a template that will give you some inspiration for what should be included in your coffee shop business plan.

Coffee Shop Business Plan Template

A coffee shop business plan template should include the following sections. Let’s look at a coffee shop business plan template and discuss what each section should include.

1. Business Plan Title Page 2. Executive Summary 3. Market Overview 4. Competitive Analysis 5. Swot Analysis 6. Marketing Plan 7. Funding Request 8. Management Summary 9. Financial Highlights

1. Business Plan Title Page

Start with the legal name of your business. Provide the address of a likely location or website if you already have one. Include your company logo at the top or bottom of the title page. On the title page, there should also be a table of contents listing each section and its page number.

What makes a great cover page for a business plan?

Visit our page on business plan cover page examples to download our free business plan cover page templates and create a beautiful cover page yourself.

2. Executive Summary

The Coffee Shoppe will be a business service provider based in Miami, Florida. Founded by Mrs. Nancy Harrigan.  The Coffee Shoppe will offer a menu of services which include coffee, lattes, capacinos, expressos, deli sandwiches and baked goods.

While these services will comprise the initial market entry core, long-term plans call for the integration of storage and relocation capabilities to the business mix.

The local area has been in dire need of a service of this type for some time and The Coffee Shoppe plans to adequately serve them through the consistent delivery of real-time hospitality. 

The market is definitely filled with opportunities but in order to capitalize on them, a strong infusion of working capital must be acquiesced. 

The founder projects needing 100K for their business venture with repayment being made out of the profits that are driven annually. Funding that is secured will be used in a variety of areas including marketing, logistics, management, site procurement as well as the day to day operations of the organization.

The marketing for The Coffee Shoppe will be done through a variety of mediums including the Internet, mass media, print and networking. Internet efforts will center on the creation of a user-friendly website that clearly list all of the core services that will be offered. 

To read the full executive summary, click here to download the PDF

Read more: Executive summary examples

Financial Highlights

3. Market Overview

The Company is entering the market at a time when the industry in which it operates is experiencing substantial growth. According to market research firm IBIS World, the Coffee & Snack Shops Industry has seen an average annual growth rate of 5.8% over the last five years, positioning industry revenue to be around $47.7 billion in

2018. The Coffee & Snack Shops industry is projected to see an average annual growth rate of 1.4% over the next five years, placing industry revenue at $51 billion in 2022.

Market Analysis

Target Market

4. Competitive Analysis

The following is a listing of the primary competitive advantages of the Companv upon entering the market

• Congenial customer service
• A central location wit greater foot traffic Parking facility available for customers
• Soothing ambiance for calm eating
• Excellent visibility from the road
• Aggressive marketing campaian
• Understanding visitors food choices and integrating the same in the menu
• Inviting feedback from customers
• Key understanding of trends and flavor
• The company will hire experienced management and staff

5. Swot Analysis

The following is an analysis of the  SWOT analysis of the coffee shop business as well as the opportunities and threats present in the market.

• Location. The location is one of the primary strengths of the The Coffee Shoppe business model as there are currently no other organizations that have the capabilities to offer the types of services that will be introduced to the market.
• The founder. Founder Nancy Harrigan is a seasoned, strategic business professional with an eye towards success, profit and achievement. These qualities will form the basis of the The Coffee Shoppe brand and be a catalyst that propels the success of the operation.
• Servicing of a need. The services that will be brought to the local residents of Miami are one that is truly needed. The fact that The Coffee Shoppe will be satisfying this need will endear the organization to the customer base and allow for consistently strong growth.
• Lack of funding. Funding is the sole weakness of the The Coffee Shoppe business venture. While funding is a weakness it should be noted that the founder is confident that if adequate funding is secured, she will be able to develop a viable business.

Opportunities

• Limited competition. The limited amount of local competition is the primary opportunity for The Coffee Shoppe as it will give the organization the opportunity to develop a loyal customer base while erecting barriers to entry.
• Small business growth. The projected growth of small businesses will provide another opportunity and will feed opportunities directly into the The Coffee Shoppe pipeline.
• Larger organizations. Larger organizations could possibly realize the opportunities that can be found in the local region and begin entering the market. While this is a threat, the founder believes that with strategic marketing, community efforts and customer service, this threat can for the most part be mitigated.

Free: Business Plan Examples

Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.

6. Marketing Plan

Marketing for The Coffee Shoppe will be done through a variety of mediums with television, print and the Internet being the primary drivers. The website will have SEO capabilities and will be developed using all of the latest in web and graphics technologies.

In addition to the home website, plans also call for the creation of a strong social media presence using Facebook.com and Twitter.com with regular updates occurring on each of the aforementioned pages.

Commercial time has already been purchased through ABC and commercial production will begin immediately following funding acquisition. Print marketing will consist of advertisements being placed in publications that are typically read by members of the targeted audience including small business owners and corporate types.

Networking will round out the The Coffee Shoppe marketing mix with the founder joining various networking groups that give her the ability to champion the brand that she has created.

Read more: how to do market research research

7. Funding Request

Read more: ways to find investors for your business

8. Management Summary

9. Financial Highlights

Financial Indicators

To learn more about financial indicators, click here to download the pdf

Break even analysis

Profit and Loss Statement

Projected Cash Flow

Projected Balance Sheet

Coffee Shop Business Plan Sample. FAQs:

Starting a coffee shop can vary greatly depending on location, size, and concept. On average, the initial investment can range from $80,000 to $300,000. This includes lease deposits, equipment purchases, inventory, permits, and marketing expenses.

The specific permits and licenses needed will vary based on your location and local regulations. Common requirements include health department approvals, business permits, food service licenses, and zoning permits. It’s crucial to research and comply with all necessary legal requirements.

A successful marketing strategy is essential for attracting customers. Utilize social media platforms, collaborate with influencers, and host events to create buzz around your coffee shop. Offering unique beverages, outstanding customer service, and a welcoming ambiance will keep customers coming back.

While it’s not mandatory, offering organic or fair trade coffee can attract environmentally conscious consumers. It also reflects your commitment to sustainable and ethical practices, which can build a loyal customer base.

Track key performance indicators (KPIs) such as sales revenue, customer retention rates, average ticket size, and social media engagement. Analyzing these metrics will help you gauge the success of your coffee shop and identify areas for improvement.

Implementing a loyalty program, offering personalized perks, and providing excellent customer service are effective ways to retain customers. Engage with your audience on social media, respond to feedback, and continuously improve your offerings based on customer preferences.

Our free real sample business plans will show you how to write a plan that looks as polished and professional as this one.

Click to view the coffee shop business plan sample. Our experienced business plan writers professionally write each business plan and work with you to develop a winning plan.

Coffee Shop Business Plan PowerPoint Presentation

Download coffee shop business plan example pdf.

We will show you some real-world business plan examples so you may know how to write your own, especially if you are seeking a bank loan or an outside investment and need to use SBA-approved formatting.

Quick Links

• Investor Business Plans
• M&A Business Plan
• Private Placement
• Feasibility Study
• Hire a Business Plan Writer
• Business Valuation Calculator
• Business Plan Examples
• Real Estate Business Plan
• Business Plan Template
• Business Plan Pricing Guide
• Business Plan Makeover
• SBA Loans, Bank Funding & Business Credit
• Finding & Qualifying for Business Grants
• Leadership for the New Manager
• Content Marketing for Beginners
• All About Crowdfunding
• EB-5 Regional Centers, A Step-By-Step Guide
• Logo Designer
• Landing Page
• PPC Advertising

• Business Entity
• Business Licensing
• Virtual Assistant
• Business Phone
• Business Address
• E-1 Visa Business Plan
• EB1-A Visa Business Plan
• EB1-C Visa Business Plan
• EB2-NIW Business Plan
• H1B Visa Business Plan
• O1 Visa Business Plan
• Business Brokers
• Merger & Acquisition Advisors
• Franchisors

Proud Sponsor of

• 1-800-496-1056

• (613) 800-0227

• +44 (1549) 409190

• +61 (2) 72510077

How to Design a Small Coffee Shop: Creating an Inviting and Functional Space for Customers

When it comes to designing a small coffee shop, several key steps and considerations can help create an inviting and functional space for customers. From planning the layout to selecting furniture and decor, every decision plays a crucial role in shaping the overall ambiance and customer experience.

In this article, I will explore the essential elements and best practices involved in designing a small coffee shop that attracts and delights customers.

Table of Contents

Planning the Layout

When analyzing the space, envision how customers will move through it. It is important to create a logical flow that minimizes congestion and allows for easy navigation between different areas.

The work triangle is another key aspect of the coffee shop layout. It refers to an efficient arrangement of the barista station, espresso machine, and point-of-sale area. By creating a compact triangle between these essential components, you minimize the time and effort required for baristas to prepare and serve beverages.

Accessibility is an important consideration to ensure that your coffee shop is inclusive and welcoming to all customers, including those with disabilities. Make sure your layout complies with accessibility guidelines by incorporating features such as ramps, wider aisles, and accessible seating options.

These additions enable customers with mobility challenges to navigate the space comfortably and enjoy the offerings of your coffee shop without limitations.

Seating Arrangements

Workflow optimization.

Efficient workflow is vital for the smooth operation of a small coffee shop. Optimizing workflow can improve productivity and customer service. Consider the following tips to maximize efficiency:

By implementing these workflow optimization strategies, you can enhance productivity and create a seamless experience for both staff and customers.

Read more about Cost to Open Coffee Shop Average: From Concept to Cash Register

Furniture and Decor Selection

From chairs and tables to wall decor and accessories, ensure that the design elements work together harmoniously to create a cohesive atmosphere that reflects your coffee shop’s unique identity.

Furthermore, choose a color scheme that complements your coffee shop’s theme and branding. Colors can evoke specific emotions and influence the overall atmosphere. Consider the psychological effects of colors and select hues that align with your desired ambiance.

Whether you prefer warm earth tones, vibrant pops of color, or a soothing palette, ensure that the chosen colors work harmoniously with the overall design concept of your coffee shop.

Lighting and Ventilation

Task lighting should be employed in specific areas, such as the ordering counter and seating areas, to provide focused illumination for tasks like reading menus or working on laptops. Accent lighting can be used to highlight certain features, such as artwork or displays, adding visual interest and creating a cozy atmosphere.

Branding and Identity

Additionally, use clear and well-placed signage to guide customers and communicate important information. Ensure that your logo and signage are visible from inside and outside the shop, attracting attention and reinforcing brand awareness.

The menu should be visually attractive, easy to read, and enticingly showcase your offerings. Consider incorporating branded merchandise displays, such as mugs, t-shirts, or bags, which not only generate additional revenue but also serve as walking advertisements for your coffee shop.

By implementing these strategies, you can effectively incorporate branding elements into the design of your coffee shop. Creating a unique identity through logo and signage, aligning your menu and merchandising with your brand, and using artwork and decor that reflects your coffee shop’s personality all contribute to a memorable and cohesive brand experience.

Designing a small coffee shop involves careful consideration of various elements to create an inviting and functional space for customers. From planning the layout and optimizing workflow to selecting furniture and decor, each decision contributes to the overall ambiance and customer experience.

Frequently Asked Questions

1. what are the essential permits and licenses required to open a small coffee shop, 2. how do i determine the ideal seating capacity for my small coffee shop.

Consider the size of your tables, aisle width, and customer comfort. Balance the desire for maximizing capacity by ensuring a comfortable and spacious environment for your customers.

3. What equipment and supplies do I need to set up a small coffee shop?

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

Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.

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.

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.

Coffee Shop Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Coffee Shop Business Plan

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

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

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

Sample Business Plan for a Cafe or Coffee Shop

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

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

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is a coffee shop business plan.

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

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

What Are the Main Types of Coffee Shops?

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

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

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

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

How Much Does it Cost to Start a Coffee Shop?

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

How Do You Get Funding for Your Coffee Shop Business?

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

How to Start a Coffee Shop?

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

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

• How to Start a Coffee Shop Business

Where Can I Get a Coffee Shop Business Plan PDF?

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

How to Start Your Coffee Shop on a Budget

How to start a coffee shop on a small budget.

Dream Big. Start Small .

How to Start Your Coffee Shop on a Small Budget

You have big coffee shop dreams. 

But what if your small coffee shop budget isn't on par with your grand dream for your business?

First, don't be discouraged. Many successful coffee shop owners have started a coffee shop on a small budget.  Many even started a coffee shop with no money at all!

While money is often the biggest hurdle in starting a coffee shop – or any business – it doesn't have to be. When challenged with starting a coffee shop with a small budget, this might be the best time to up your game .

In other words:

• It's time to get creative.
• It's time to think strategically.
• Is it time to start thinking… small?

That's right. It's time to turn your disadvantage into one of your most significant assets by thinking small.

Sometimes thinking small has its benefits.

A brief list of benefits of starting a small coffee shop:

• It costs less money to start a small coffee business! The investment you will make will be considerably less than a full-fledged café. A coffee shop with a full kitchen, coffee bar, and adequate seating space could cost you $250,000 to remodel, build-out, and buy the coffee equipment for. Yet, a relatively small coffee operation may cost you only $15,000 to $35,000.
• Your day-to-day operations will be less expensive. For example, you probably might not need a large number of staff or baristas. As you'll soon discover, labor costs can quickly add up per shift.  Variable costs such as utilities, coffee, etc., can add up the costs.
• With a small staff, you can learn as you grow about HR (Human Resource) issues, such as payroll, workers compensation, and insurance.
• Inventory: You will be able to learn about how to manage your inventory better and reduce waste.
• Ability to build your brand. Starting a small coffee shop means that you can slowly and effectively build out your brand. All this while testing your marketing before “going big.”

Starting a coffee shop on a low budget requires a little thinking outside the box, strategic steps, and adjusting your plans right from the start. But it also starts with thinking “small and scalable.”

In this article, we're going to discuss how to start a coffee shop on a small budget.

If you have ample money backers, angel investors, or a rich uncle who's willing to write you a fat check, then this article is not for you. Instead, you'll want to read our article, Steps to Opening a Successful Coffee Shop .

However, if you are wondering how to start your coffee shop on the cheap, keep reading!

How to Start a Coffee Shop on a Budget

How Do You Start a Coffee Shop on a Small Budget?

You Start Small.

I am very aware of the financial barriers that can muddy the path to realizing your dreams.

When it comes to opening your dream coffee shop, we believe you should dream big but start small .

Did you know that many successful coffee shops and corporate chains started small?

Very small.

Even the mega-coffee chain, Starbucks, started modestly. They stuck to their concept, developed vital strategies for growth, and took deliberate steps to move forward – and scaled up.

By opening a small coffee business first, you can learn the skills and gain the experience you will need to effectively run a larger-scale coffee business – if that is what you choose to do!

You may be content with staying with a small coffee business. And that’s okay too!

 Yes, It Takes Money To Start a Coffee Shop

It takes money to start a coffee shop. The question is: how much money does it take to start a coffee shop?

The answer depends on your total:

• Startup costs
• Operational costs (fixed and variable costs)

To learn more about startup costs, please read, How Much Does it Cost to Start a Coffee Shop?

A small coffee shop business might cost between $45,000 and $150,000. However, you might be able to take over ownership of a coffee stand for $10,000 or less, for example. Your concept, location, rental situation, and proposed build-out play a role in how much your coffee business will cost. 

Fixed costs and variable costs include your commercial rent, coffee shop equipment , hourly barista labor costs, and inventory expenditures. If you can reduce your fixed and variable costs while serving coffee, you can create a profitable business much cheaper.

Further Reading: Small Coffee Shop Ideas

How to Open a Small Coffee Shop

Steps to starting a coffee shop on a small budget, step 1: drill down: question everything.

If you are setting out to open a coffee shop with a small budget, you have to play defense with your money – right from the start.

And the best way to so:

Question everything.

Absolutely everything.

Question every expense, every traditional method, or every mode of thinking when you start your coffee business. Because you lack money, your job isn't to open up a coffee shop in the traditional way – that would cost way too much.

The traditional way of starting a coffee shop may cost you up to $250,000 to $350,000.

Rather, your job is to open up a coffee business. Period. To do that, you’ll need to rein in your budget.

Therefore, always ask why you need to spend money on anything. And ask yourself how you can do it differently.

Question everything methodically.

By questioning everything – you are defending your money, stretching your resources, and forcing yourself to be creative.

Drill down.

Always ask, how can you do this cheaper without sacrificing quality.

After you arrive at your answer – drill down again!

By doing this exercise with every decision you make, you'll know that you couldn't have done it much cheaper in the end.

Step 2: Decide on Your Small Budget Concept

Starting a coffee shop on a budget begins no differently than starting a business with unlimited funds.

It all starts with developing a traditional business concept . However, you have to turn your traditional business concept into a small-budget concept .

What does that mean?

It means scaling your concept down to a more reasonable or obtainable goal. Realize that you can build and scale-up when the time is right . For example, you may want to open a coffee shop bakery but realize that you don’t have the money for a brick-and-mortar location. Instead, you could decide to open a mobile coffee truck and sell your baked goods; from there while you use a local commercial commissary.  This decision alone could save you $150,000 on a build-out, equipment, and additional commercial space. Once you are ready, you may decide to expand your mobile business into the brick-and-mortar place you always wanted.

Here's an average range of costs per coffee shop concept:

Traditional Coffee Shop Business Cost Range:

• Small coffee shop with seating:  $40,000 to $200,000
• Large coffee shop with seating:  $75,000 to $350,000
• Franchise coffee shop:               $100,00 to $350,000
• Café & Bakery:                           $120,000 to $350,000
• Coffee Shop Bookstore:             $80,000 to $250,00

Low-Cost Coffee Shop Business Cost Range:

• A piggyback coffee business:         $3,500 – $15,000 
• Drive-thru coffee stand business:   $10,00 – $90,000
• Espresso catering business:          $4,500 – $15,000
• Mobile coffee business:                 $10,000 – $95,000
• Online coffee business:                 $400 – $10,000

As you can see, every coffee shop idea and concept comes with its own opportunities and repercussions on your startup budget. If you have the funds for a larger concept, then great. If not, it might be more suitable to start a smaller coffee business and grow out of there.

Still unsure what type of coffee concept you want? Begin by exploring the various coffee shop concepts we've written about previously.

A great idea for starting small is opening a coffee kiosk or a coffee cart. This will significantly reduce startup costs and ongoing operational costs, such as labor and rent.

Another option can be launching a mobile coffee trailer or truck. Whether you purchase or make it from scratch , it will cost you much less than opening a café with indoor seating. Plus, it will give you the mobility you need to cater to different customer bases.

Take a moment to daydream .

Picture yourself as the future owner of any one of the coffee business options out there!

One rule, though: Make sure you love it.

If you go down the path of opening a coffee concept that you are not thrilled about or don't have any passion for, it's probably going to end badly.

In other words, choose a concept you can get excited about. Invest in that concept – however small it is – and grow it into something you can be proud of.

Step 3: Develop Your Coffee Shop Brand

What you lack in size, you can make up for in branding. Branding can magnify the efforts of even the smallest coffee businesses.

Your branding includes:

• particular experience you want your customers to have,
• unique product offering,
• logo, slogan and color scheme,
• the emotional connection your customers have with your business.

Advertising can cost a fortune if you advertise traditionally. However, if you start early and develop your social media accounts, you can gain a steady following, who will wait for you to open. I know one coffee shop that captured and posted every step of opening up its business. On the first day, there was a line of people waiting outside to try their coffee.

So, working with local communities and organizations via Instagram or face-to-face communication will be important. Additionally, the right effort in branding – and promoting your coffee brand – can make you seem larger than you are. Therefore, always take advantage of the priorities to build your coffee brand.

Step 4: Reduce Startup Costs at Every Turn

If you want to start a traditional coffee shop, you will pay the traditional costs, which can be anywhere from $100,000 to $350,000 for a brick-and-mortar coffee business.

You got to do it differently. You have to throw everything you might think you know about starting a coffee shop – out the window.

When starting a coffee shop on a small budget, you can't afford to be the same as everyone else.

You have to be different.

You have to think differently. Plan differently. Execute differently. You don't have the time or the money to waste.

From the start, reduce the traditional coffee shop startup costs and operational costs you'll likely encounter.

Step 5: Write a Business Plan Focused on a Small Budget

What you don't have in finances, you have to make up for in planning.

Developing a thorough plan is essential when funds are limited. Make a business plan that has cost-savings embedded in its framework.

Everything in your plan must lean towards saving money, avoiding costs, and starting small.

Your coffee shop business plan should

• Define your low-budget coffee shop concept
• Analysis of your target market
• Specify your menu
• Determine what coffee equipment you need
• Focus on your location
• Establish your budget
• Detail your anticipated sales
• Detail your coffee branding
• Determine your USP (Unique Sales Proposition)

Your budget, your menu, your location, and your concept are significantly linked. They will determine your real-estate costs, equipment costs, and build-out costs.

Your plan should thoroughly discuss each area of your business development. The more you plan for now, the less you'll pay later.

For more information on how to write your coffee shop business plan, read our article, How to Write a Coffee Shop Business Plan .

Traditional Coffee Shop Budget Elements

Step 6: Develop a Low-Cost Budget

Every business requires money to launch, including a coffee business. I hate to break it to you, but there's just no getting around starting a coffee shop without any money.

Every coffee shop will require a budget. Your coffee shop budget should tell you:

• How much will it cost to establish your coffee business?
• How will we be able to bring those costs down?

Here are a few expenses that are involved in a typical coffee shop business startup:

• Legal and business registration costs and fees
• Coffee equipment costs
• Power supply
• Water (plumbing)
• Small-wares
• Inventory (coffee)
• Security deposits
• Labor and contractors’ costs
• Rental space
• Furniture and fixtures
• Build-out costs

Take a look at the above list of expenses. The last four will take up the bulk of your startup costs. You will need to find ways to reduce or even eliminate these costs within your concept and articulate them within your budget.

Step 7: Create a Coffee Shop Funding Mix

The money to start your coffee shop business may come from various sources. I refer to this as your funding mix. It is the cornerstone of your coffee shop budget .

Your funding mix may consist of your savings, a family loan, a bank or institutional loan, investors, or other sources like crowdfunding.

Once you determine how much money you will need, you should begin to sketch out where the money will come from.

A coffee shop’s funding mix will vary from business to business and may change over time. It will be important for you to grow, adapt, and anticipate the natural changes that will occur with your coffee shop funding mix .

Your Coffee Shop Budget Funding Mix

Step 8: Know Your Requirements

Being efficient will always save you money. When it comes to starting a coffee business, efficiency means knowing your requirements before you get started.

Whether you open up a coffee shop or set up a mobile coffee business , you need to know the agencies involved in signing off on your permits. Starting your build-out or setup before knowing what the codes, zones, or requirements are will most likely lead you to spend more money.

Take the time to figure out which agencies are in charge of your business type and work out from there. This may mean doing research online, calling state and local government offices.

For example, you don’t want to start building out your mobile espresso trailer if you aren’t sure what the building code requirements are. Additionally, you don’t want to sign a lease for your perfect coffee shop location when you haven’t checked the zoning laws.

Step 9: Develop a Vision & Plan for Growth

Starting a coffee shop on a low budget means that you won't likely open a giant coffee enterprise.

That's okay!

Regardless of how small you start, you want to have a vision and plan for your growth. Simply because you start small doesn't mean you have to end up small!

Most businesses, regardless of size, should plan for growth. Your small-budget coffee shop should be no different.

Visualize and plan for growth.

Whether you want to bring in more revenue year-over-year or you want to open a second location, expand into a new, larger location, or add a second coffee trailer – plan for growth.

Your vision for expansion or growth should be embedded in your coffee shop business plan.

Step 10: Hire Sparingly, Hire Thoughtfully

One of the highest ongoing operational costs will be your labor costs – the hourly costs for having baristas.

As a new coffee business owner, you may be excited to hire many baristas and other staff to execute your business plan. But hire sparingly and thoughtfully.

Labor costs can wipe away your profits and drive you to insolvency if you don't schedule your shifts correctly.

While you should assume a little “trial and error” with your scheduling, you want to make sure that you're on top of the amount of help you will need.

Reduce your labor costs whenever possible. Instead, hire reliable baristas that add value to your business with their skills, personality, and maturity.

For more information, read our article, How to Hire Amazing Baristas .

Step 11: Eliminate Waste From Day One

From building out your coffee business to serving espresso to your first customer, try to eliminate waste right from the start.

From my experience, 10% to 15% of expenditures can be eliminated by cutting down on waste.

One of the best ways to eliminate waste is to plan thoroughly – research what you need to know and understand before spending a dime. Invest in your knowledge. Additionally, get the help you need from experienced contractors.

Ongoing training also helps to eliminate waste. Therefore, we recommend that you invest in barista training opportunities and training in other areas, including accounting and inventory management.

While training and planning are important, eliminating waste starts directly from the top. Develop systems, training, and communication with your staff that your goal is to reduce waste right from the beginning.

How to Start a Coffee Shop on a Low Budget

We've covered some basic first steps you will want to take when you need to start a coffee shop on a low budget.

We will summarize these thoughts in the list below:

• Question everything
• Decide on your small budget concept
• Develop Your Coffee Shop Brand
• Write a business plan focused on a small budget
• Develop a low-cost budget
• Create a funding mix
• Know your requirements
• Develop a vision and plan for growth
• Hire sparingly, hire thoughtfully
• Eliminate waste

Taken together, each of these will help you reduce your overall coffee shop startup costs significantly.

Low-Budget Coffee Business Considerations

Additional Questions: 

Can I start a coffee shop with no money?

It takes money to start any business, including a coffee shop. But countless businesses are started every year with other people's money.

If you don't have any money, chances are you will need to develop a funding mix that is primarily comprised of other people's money. When this is the case, you will need to spend time developing a thorough coffee shop business plan.

For more information, please read our article, How to Start a Coffee Shop With No Money .

What are some low-cost coffee shop business options?

There are always opportunities to start a coffee business that costs less than your traditional brick-and-mortar business. From starting an espresso catering business, a drive-thru coffee stand business, or a mobile coffee cart, you'll be able to find various concepts that may work for you.

For more information, read our post, Low-Cost Ideas for Starting a Coffee Shop .

What equipment do I need to open a coffee shop?

To serve coffee, you'll require a variety of equipment and needed accessories. The type of coffee equipment you need entirely depends on your menu. If you want to serve espresso-based drinks, you'll want to have an espresso machine, grinders, and scales. Ice-makers, refrigerators, and ovens may also play an essential role in your business. For more information, read our post, Coffee Shop Equipment You Need to Start a Coffee Shop .

Making Big Profits From a Small Coffee Business

Making healthy profits doesn't have to be created from a large coffee shop. Healthy profits can be generated from a small drive-thru coffee stand, a single counter coffee kiosk, a mobile coffee cart, or a coffee truck .

Of course, many factors may lead to profits, but the biggest is coffee shop startup costs, as well as your ongoing fixed and variable costs. By having a smaller coffee shop business, typically, your fixed costs will also be lower on all fronts, from your rental lease, equipment, etc.

The truth is that you can turn that little coffee business into a wealth of revenue if you plan it out, understand your customer, choose the right location, and manage it well.

For an in-depth look at your potential revenue and income, please read our article, How Much do Coffee Shop Owners Make?

Photo credit: Alfiedude

Embrace Dreaming Big, Starting Small

Coffee Shops Can All Look and Feel Different

Coffee businesses can come in all shapes and sizes.

And they could also be beautiful and interesting too! Consider areas in your town or city.

Many coffee businesses start small but make a big impact on their communities, customers, and employees. We have a feeling that if you start a coffee shop or coffee business in your community, you will be driving up value for you and your neighbors too.  

Consider taking a look at our coffee business blog for more topics on starting a small coffee shop, setting up a drive-thru coffee stand, or online coffee business.

We encourage you to dream big but start small. And start with a specific plan and purpose to scale up your business into something bigger.

Need more help? We've created one of the easiest, most convenient, and most affordable ways to start your coffee business.

Our Complete Coffee Shop Startup Kit contains hours and hours of audio interviews with coffee shop owners and business experts, offering relevant discussions that you will want to hear before starting your coffee business.

Are You Ready To Get Started?

Unlock Your Dream Coffee Shop Business with Our Exclusive Coffee Shop Startups Kit!

Ready to transform your passion for coffee into a thriving business? Look no further! Our Coffee Shop Startups Kit is your key to brewing success. Here's why you can't miss this opportunity:

Includes Exclusive BONUS Material!

👉 Order Now and Begin Your Journey!

Don't let the complexities of starting a coffee shop overwhelm you. Our Coffee Shop Startups Kit is your ticket to entrepreneurial success. Take the first step towards owning a profitable and fulfilling coffee business today.

Join the thousands of successful coffee entrepreneurs who started with a dream and a great plan. Your journey to coffee shop greatness begins right here!

Comprehensive. Proven. Affordable.

The Complete Coffee Shop Startup Kit

(Instantly Delivered To You)

Coffee Shop Startups

Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully. Over the last 11 years, we've helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits. We support business owners who want to start a coffee business by providing them with valuable information on starting their coffee business successfully.

• Coffee Blog
• Mobile Coffee Coaching
• Coffee Shop Business Course Info
• Testimonials
• Frequently Asked Questions
• Refunds, Terms & Conditions

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

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

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

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

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

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

How to start a business plan for a coffee shop

Table of Contents

Market research

Finding your niche, independent shops, swot analysis, start-up costs, digital marketing, traditional marketing, manage your finances with a simple app.

Coffee culture is a huge industry in the UK. Following the example set by our other European neighbours, we now have coffee shops on every high street where people can meet friends, relax on their own, or even get some work done.

Even in the modern-day, where physical retail is struggling, coffee shops will always be a familiar feature of the hospitality world. 

But how do you go about starting your own coffee shop? As with most business ventures, it all starts with a business plan. 

This guide will give you some helpful advice on everything you need to consider when you’re creating your very own coffee shop business plan. 

Specifically, we’ll be talking about:

• Marketing 

Consider any competitors your business has (big and small) and find out why they operate the way they do. What will make customers come to your shop instead of your competitors?

Market research is also about your customers. Is there a high demand for coffee shops in your area? What kind of prices are they willing to pay?

Researching your competitors and customers should give you a good idea of whether or not there’s room for your coffee shop on the market. 

To help you put your market research into context, it’s important to know exactly how you will fit into the existing market.

To do that, we need to look at the way the coffee shop market is already divided. Generally speaking, we can divide coffee shops into two camps, big chains and independent shops. 

Stores like Starbucks, Costa, and Caffe Nero dominate the market. There’s most likely one near you already, so they will always be your main competition. They have the advantage of well-established brand recognition and a huge amount of resources. 

If you’d like to use those advantages, there’s nothing stopping you from opening a franchise on behalf of one of these big chains. 

It’s probably a safer bet in terms of customers (a Costa will always attract business) but you will have to share a portion of your profits with the chain or pay for the rights to the brand name. 

Starting your own coffee shop from the ground up will be more challenging, but potentially more rewarding. If you go down this route, you’ll need a strong idea of what makes your shop different from the competition. Will you offer a higher quality product or a more reasonable price?

Here are some common coffee shop ideas that others use to set themselves apart:

• Artisan coffee shops – They offer extremely high-quality products and customer service. It’s all about fresh, well-sourced ingredients, a beautiful atmosphere, and originality. Shops like these will often have slightly higher prices than the big chains, so the products have to be worth the extra money. 
• Cat cafes – You may have seen these around before. The name says it all – it’s a coffee shop with cats living in it. It’s a fun, interesting idea that’s sure to attract animal lovers. 
• “Nerd” cafes – Often doubling up as game stores, cafes like this put an emphasis on certain aspects of “nerd” culture. They might sell comic books, board games, card games, or even have some available that are free for customers to use. 

These are obviously not all the directions you can go with your business, just examples of what has worked for other coffee shops. The important thing is to offer something your competitors are not. 

Following your research, categorise your findings into four domains: Strengths, Weaknesses, Opportunities, and Threats. The first two are aspects of your business model, while the other two look at external factors.

For example:

• Strength: you have a good relationship with suppliers.
• Weakness: your business might have a lot of debt after start-up costs.
• Opportunity: there’s nothing around offering the same service as you.
• Threat: there’s a Starbucks within walking distance.

Using this breakdown, you can identify areas to highlight and areas that might need some special attention. 

Your budget is a crucial element of any business. A regularly updated budget should tell you if you’re making a profit and give you a reasonable estimate of future growth. 

If you’re starting a business, you’ll need to budget for any set-up costs like:

• Workspace furniture and equipment.
• Broadband and phone services to accommodate your business’ needs.
• Business cards or initial marketing materials.
• A dedicated website and email address.
• Software subscriptions or updates.

We have dedicated guides on budgeting so you can learn more about why budgeting is important to small businesses and how to budget for starting a business .

When you’re just starting out, you’ll find that most of your budget will go to a few essential items. 

Here’s a breakdown of the biggest expenses that every coffee shop needs:

• Building rental – for a shop that’s 50 square metres, anywhere between £5,000 and £7,000 per month. 
• Coffee machine – for a commercial machine that’ll last, prices start at around £1,000.
• Furniture – £1000 – £5,000
• Dishwasher – £600 – £2,000
• Display fridge – £599 – £1,500
• Barista wages – £7 to £10 per hour.

These figures are estimated at both ends of the price scale. You’ll have to decide as you go how much you’re willing to spend on each of these. 

The right marketing strategy will ensure a steady flow of customers heading into your coffee shop. Try a combination of the following tactics:

Social media sites like Facebook, Twitter, and LinkedIn are all great places to advertise your shop. 

Posting regularly is the best way to gain some traction, and there’s nothing wrong with getting friends and family to share your posts to get the ball rolling. 

You should also register on Google maps. It’s easy to do and will make it much easier for people to find you. To register, just go to Google My Business and follow the instructions. 

Alongside digital marketing, some more traditional forms of marketing can also be effective. You should consider:

• making business cards to hand out.
• printing flyers and posting them locally.
• networking with other coffee shops and restaurants in the area. 

You’ll want to think about the name of your coffee shop and if you want to include any unique branding with a logo or slogan. 

You’ll need to register your logo as a trademark with HMRC to prevent others from using it and to make sure you’re not using one that already exists. 

You don’t have to register your name unless you’re a limited company, but it’s a good idea to check it’s not already being used to avoid confusion amongst customers. 

Trademarking can be an expensive process and involves a few steps, so read our guide for more information. 

When you’re starting your own business, it’s important to keep your personal and business finances separate from day one – to save yourself from time-consuming admin headaches further down the line. 

Thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Find out more here .

• Counting Up on Facebook
• Counting Up on Twitter
• Counting Up on LinkedIn

Related Resources

Invoice as a self-employed cleaner – with template.

As a self-employed cleaner, like with any other service, you deserve payment for

Bookkeeping and accounting tips for hairdressers

As a self-employed hairdresser or salon owner, bookkeeping and accounting can be hard

What expenses can you claim as a childminder?

Being a childminder can be a great way to earn extra income or

How to get more clients as a freelance makeup artist

Whether you’re a professional makeup artist, a bridal makeup artist or a student

How to start a supported living business

Starting a supported living business is a challenging, but incredibly rewarding, way to

How To Start A Vending Machine Business In The UK

Starting a business is a great way to become your own boss and

How to start a dog daycare business

If you think dogs are a treat to be around, you’re not alone.

How to start a babysitting business

If you love spending time with children and offer to babysit for family,

How to start a cat sitting business

Did you know that 24% of the UK population own a cat? That’s

Money laundering regulations for estate agents

In December 2020, the government issued the National risk assessment of money laundering

How to sell jewellery designs to companies 

Do you enjoy creating unique jewellery designs? If so, you might want to

How to become a self-employed labourer

Do you enjoy working with your hands and like the idea of being

Attractions

1 Coffee Republic

Navigate forward to interact with the calendar and select a date. Press the question mark key to get the keyboard shortcuts for changing dates.

Navigate backward to interact with the calendar and select a date. Press the question mark key to get the keyboard shortcuts for changing dates.

All road trips from Khabarovsk

• Khabarovsk to Vladivostok drive
• Khabarovsk to Harbin drive

Explore nearby places

• Vinogradovka
• Krasnorechenskoye
• Petropavlovka
• Volochayevka-1
• Sikachi Alyan
• Fuyuan County
• Pereyaslavka
• Birobidzhan
• Svetlogorye
• Raohe County
• Komsomolsk-on-Amur
• Suibin County
• Dalnerechensk
• Baoqing County
• Lesozavodsk
• Gornyye Klyuchi

All related maps of Khabarovsk

• Map of Khabarovsk
• Map of Vinogradovka
• Map of Krasnorechenskoye
• Map of Nekrasovka
• Map of Galkino
• Map of Petropavlovka
• Map of Volochayevka-1
• Map of Sikachi Alyan
• Map of Fuyuan County
• Map of Pereyaslavka
• Map of Vyazemsky
• Map of Sukpay
• Map of Troitskoye
• Map of Birobidzhan
• Map of Svetlogorye
• Map of Raohe County
• Map of Tongjiang
• Map of Amursk
• Map of Birakan
• Map of Fujin
• Map of Komsomolsk-on-Amur
• Map of Suibin County
• Map of Dalnerechensk
• Map of Solnechny
• Map of Baoqing County
• Map of Chegdomyn
• Map of Hulin
• Map of Lesozavodsk
• Map of Gornyye Klyuchi
• Map of Terney
• Map of Mishan

Khabarovsk throughout the year

• Khabarovsk in January
• Khabarovsk in February
• Khabarovsk in March
• Khabarovsk in April
• Khabarovsk in May
• Khabarovsk in June
• Khabarovsk in July
• Khabarovsk in August
• Khabarovsk in September
• Khabarovsk in October
• Khabarovsk in November
• Khabarovsk in December

Looking for day-by-day itineraries in Khabarovsk?

Get inspired for your trip to Khabarovsk with our curated itineraries that are jam-packed with popular attractions everyday! Check them out here:

• 1-Day Khabarovsk Itinerary
• 2-Day Khabarovsk Itinerary
• 3-Day Khabarovsk Itinerary
• 4-Day Khabarovsk Itinerary

Best cafes in nearby cities

• The best coffee shops and best cafes in Sapporo
• The best coffee shops and best cafes in Hakodate
• The best coffee shops and best cafes in Asahikawa
• The best coffee shops and best cafes in Wakkanai
• The best coffee shops and best cafes in Muroran
• The best coffee shops and best cafes in Furano
• The best coffee shops and best cafes in Niseko-cho
• The best coffee shops and best cafes in Vladivostok
• The best coffee shops and best cafes in Yuzhno-Sakhalinsk
• The best coffee shops and best cafes in Blagoveshchensk

Best attractions in nearby cities

• Top things to do and attractions in Sapporo
• Top things to do and attractions in Otaru
• Top things to do and attractions in Asahikawa
• Top things to do and attractions in Chitose
• Top things to do and attractions in Tomakomai
• Top things to do and attractions in Wakkanai
• Top things to do and attractions in Muroran
• Top things to do and attractions in Toyako-cho
• Top things to do and attractions in Furano
• Top things to do and attractions in Noboribetsu
• Top things to do and attractions in Niseko-cho
• Top things to do and attractions in Biei-cho
• Top things to do and attractions in Nanae-cho
• Top things to do and attractions in Yoichi-cho
• Top things to do and attractions in Rishirifuji-cho
• Top things to do and attractions in Rebun-cho
• Top things to do and attractions in Kamifurano-cho
• Top things to do and attractions in Higashikawa-cho
• Top things to do and attractions in Sobetsu-cho
• Top things to do and attractions in Yuzhno-Sakhalinsk
• Top things to do and attractions in Blagoveshchensk

Best restaurants in nearby cities

• Where to eat: the best restaurants in Sapporo
• Where to eat: the best restaurants in Otaru
• Where to eat: the best restaurants in Asahikawa
• Where to eat: the best restaurants in Wakkanai
• Where to eat: the best restaurants in Muroran
• Where to eat: the best restaurants in Toyako-cho
• Where to eat: the best restaurants in Furano
• Where to eat: the best restaurants in Noboribetsu
• Where to eat: the best restaurants in Niseko-cho
• Where to eat: the best restaurants in Biei-cho
• Where to eat: the best restaurants in Nanae-cho
• Where to eat: the best restaurants in Kamifurano-cho
• Where to eat: the best restaurants in Higashikawa-cho
• Where to eat: the best restaurants in Shakotan-cho
• Where to eat: the best restaurants in Rusutsu-mura
• Where to eat: the best restaurants in Yuzhno-Sakhalinsk
• Where to eat: the best restaurants in Blagoveshchensk

• Itinerary + map in one view
• Live collaboration
• Auto-import hotels and reservations
• Optimize your route
• Offline access on mobile
• See time and distance between all your places

Coffee Republic

COFFEE REPUBLIC, Khabarovsk - Menu, Prices & Restaurant Reviews - Tripadvisor

Coffee Republic

COFFEE REPUBLIC, Khabarovsk - Menu, Prices & Restaurant Reviews - Tripadvisor