start up coffee shop business plan

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How to Open a Coffee Shop

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

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

How to open a coffee shop in 7 steps

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

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

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

Completely start from scratch and open your own shop

Open a coffee shop franchise

Buy an existing coffee shop that's for sale

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

Step 2: Create a business plan.

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

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

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

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

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

Step 3: Find the right location.

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

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

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

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

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

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

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

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

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

Step 5: Find suppliers.

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

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

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

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

Step 6: Create a warm, inviting environment.

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

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

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

Step 7: Adopt a good inventory system.

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

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

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

How much do you need?

with Fundera by NerdWallet

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

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

How much does it cost to open a coffee shop?

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

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

Start Your Dream Business

The bottom line

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

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

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

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Table of Contents

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

What is A Coffee Shop Business Plan?  

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

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

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

1. Clear Vision and Objectives

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

2. Financial Planning

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

3. Operational Efficiency

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

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

1. Executive Summary

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

What should you cover in an Executive Summary?

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

2. Coffee Shop Business Description

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

What should you cover in the Coffee Shop Description section?

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

3. Market Analysis

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

What should you cover in this section?

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

4. Organization and Management

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

What should you cover in the Organization and Management Plan?

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

5. Sample Menu

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

What should you consider when creating a Sample Menu?

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

6. Marketing Plan

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

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

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

7. Operations Plan

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

What Operational Issues should you address in your Business Plan?

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

8. Financial Plan

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

How Much Does It Cost to Start a Coffee Shop?

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

How Many Ways to Fund Your Coffee Shop?

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

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

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

9. Financial Projections

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

Break-even analysis:

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

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

Projected profit and loss statement:

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

Cash flow analysis:

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

Coffee Shop Business Plan Template 

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

2. Description of the Coffee Shop

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

3. Menu Offer

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

4. Market and Competition Analysis

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

5. Investment Plan (Detailed Cost Analysis)

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

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

Operating Costs (Monthly): $17,000

• Rent: $3,000
• Salaries: $10,000
• Utilities: $1,000
• Stock: $2,000
• Marketing: $1,000

6. Financial Forecast

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

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

8. Marketing Plan

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

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

Tips For Writing a Business Plan For a Coffee Shop

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

Comprehensiveness is Key: Ensure your plan encompasses all sections you should include, such as marketing, financial projections, and operations. A well-rounded plan provides a holistic view of your business.

Tailor to Your Audience: If you’re presenting to potential investors, focus on profitability and growth projections. For a landlord, emphasize the benefits your coffee shop will bring to their property.

Specialize in Marketing: Given the competitiveness in the coffee industry, it’s crucial to have a solid marketing plan. If marketing isn’t your strength, consider hiring someone to do marketing for your venture. A strong online presence, loyalty programs, and community engagement can set you apart.

Research Your Market: Understand what nearby coffee shops include in their offerings. Identify gaps in the market and strategize on how your shop can fill them.

Stay Flexible: While a business plan provides direction, remain adaptable. The coffee industry is dynamic, and your ability to pivot can prove invaluable.

Separate Sections for Clarity: If your plan becomes too dense, you might want to create a separate document for specific sections like a detailed marketing strategy or an in-depth market analysis. This makes your primary business plan concise and more readable.

Frequently Asked Questions

1. how profitable is owning a coffee shop.

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

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

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

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

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

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

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

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

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

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

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The Ultimate Coffee Shop Business Plan and Template

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

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

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

Table of Contents

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

Why Write a Coffee Shop Business Plan?

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

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

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

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

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

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

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

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

Coffee Shop Business Plan Template

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

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

Executive Summary

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

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

Coffee shop name: AI Coffee Shop

Executive Summary:

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

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

Company Overview

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

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

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

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

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

Market and Customer Analysis

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

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

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

Market Analysis

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

Competitor Analysis

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

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

Customer Analysis

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

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

Sales and Marketing Plan

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

Operating Plan

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

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

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

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

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

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

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

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

Management Team

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

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

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

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

Financial Plan

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

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

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

ADD FINANCIALS 

Wrapping Up

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

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

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BUSINESS STRATEGIES

How to write a coffee shop business plan

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

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

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

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

Top benefits of creating a coffee shop business plan

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

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

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

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

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

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

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

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

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

How to create a coffee shop business plan in 6 steps

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

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

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

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

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

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

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

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

02. Company and domain names

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

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

When choosing a domain name consider the following best practices:

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

Choose a name that is easy to spell and remember

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

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

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

03. Market analysis and research

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

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

04. Operations plan

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

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

05. Marketing and advertising strategies

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

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

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

Learn more: How to make a website

06. Financial plan

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

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

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

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

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

Specify how you plan to secure funding

Highlight when you anticipate reaching profitability and generating positive cash flow

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

Coffee shop business plan examples

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

Coffee shop business plan template 1: Coffee Haven Café

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

Company and domain name

Company name: Coffee Haven Café

Domain name: www.coffeehavencafe.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Company name: Brew & Gather Coffee House

Domain name: www.brewandgathercoffee.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How profitable is a coffee shop?

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

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

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

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

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

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

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

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

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

Why do coffee shops fail?

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

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

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

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

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

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

Coffee shop business plan FAQ

How do you start a coffee shop business plan.

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

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

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

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

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

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

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

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

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

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Coffee Shop Business Plan Ultimate Guide + Free Example

July 6, 2023

Adam Hoeksema

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

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

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

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

Coffee Shop Business Plan Outline

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

Example Coffee Shop Business Plan

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

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

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

I. Executive Summary

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

VII. Conclusion

How to do Market Research for a Coffee Shop Business Plan

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

What Will be the Cost to Advertise my Coffee Shop?

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

What Keywords are Customers Using in Their Searches?

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

How Seasonal are Coffee Shops?

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

How Many Customers Do my Competitors Receive Each Month?

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

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

How to Create Financial Projections for a Coffee Shop Business Plan

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

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

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

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

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

Coffee Shop Business Plan Template

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

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

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

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

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

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

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

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

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

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

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

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

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

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

VII. Conclusion 

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

Coffee Shop Business Plan FAQs

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

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

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

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

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

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

About the Author

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

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How To Write Your Coffee Shop Business Plan

How to write a coffee shop business plan.

Business Plan for Coffee Shops Series

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

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

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

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

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

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

Is a Coffee Shop Business Plan Necessary?

Why write a coffee shop business plan.

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

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

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

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

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

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

A business plan is needed by:

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

Benefits of Putting Together a Plan

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

Writing a coffee shop business plan also has other benefits. 

Let's discuss the benefits below:

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

Increases Your Chances of Success

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

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

A Plan Will Save You Money 

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

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

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

A Plan Will Keep You Organized

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

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

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

Ensures Nothing Gets Left Behind

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

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

Details Your Budget

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

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

Business Plan: Your Budget and Cost Estimates

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

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

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

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

Key Sections of Your Coffee Shop Business Plan:

The Executive Summary

Your Business Structure

Coffee Shop Financials

Unique Selling Proposition

Coffee Shop Startup Costs

Business Plan Description

Coffee shop business plan sections:.

Write a Coffee Shop Business Plan

Where do you start.

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

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

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

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

Start Your Business Plan Writing With The Following:

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

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

2024 Coffee Shop Business Plan Template

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

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

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

Trending Articles on Coffee Shop Startups:

Questions & Answers

Related Questions:

Is a business plan required for my coffee shop business.

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

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

Fortunately, the simple answer is NO.

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

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

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

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

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

How Do I Use a Business Plan?

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

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

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

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

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

Frequently Asked Questions:

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

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

Why you should write your business plan:

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

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

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

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

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

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

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

How Long Does a Business Plan Have To Be?

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

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

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

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

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

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

Are You Ready To Get Started?

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Coffee Shop Startups

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

• Coffee Blog
• Mobile Coffee Coaching
• 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.

Successful Coffee Shop Business Plan

Need a Coffee Shop Business Plan? We Can Help

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

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

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

The Elements of a Successful Coffee Shop Business Plan

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

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

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

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

Section 1: Executive Summary

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

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

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

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

Section 2: Business Description

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

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

Section 3: Management Profile

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

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

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

Section 4: Information about the Coffee Industry and Your Competition

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

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

Section 5: Marketing Strategy

In your marketing plan:

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

Section 6: Financial Data

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

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

Cash Flow Statement

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

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

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

Income Statement or P&L

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

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

Balance Sheet

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

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

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

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

The Proven Coffee Shop Business Plan Template

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

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

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

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

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

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

Going Beyond the Coffee Shop Business Plan

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

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

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

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

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

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

More Information

Testimonials, faq’s, have a question.

Sample Coffee Shop Business Plan

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

Download our Ultimate Coffee Shop Business Plan Template

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

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

Coffee Shop Business Plan Example – BeanBrews Corner

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Target Customers

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

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

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

Customer Needs

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

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

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

BeanBrews Corner’s competitors include the following companies:

Summit Coffee – SouthPark:

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

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

Mugs Coffee:

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

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

Thousand Hills Coffee:

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

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

Competitive Advantages

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

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

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

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

Products and Services

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

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

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

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

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

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

Promotions Plan

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

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

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

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

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

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

Our Operations Plan details:

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

Key Operational Processes

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

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

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

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

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

Benjamin Taylor, CEO

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

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

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Coffee Shop Business Plan Example PDF

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

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

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

Coffee Shop Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Coffee Shop Business Plan

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

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

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

Coffee Shop Business Plan Sample

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

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is a coffee shop business plan.

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

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

What Are the Main Types of Coffee Shops?

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

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

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

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

How Much Does it Cost to Start a Coffee Shop?

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

How Do You Get Funding for Your Coffee Shop Business?

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

How to Start a Coffee Shop?

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

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

• How to Start a Coffee Shop Business

Where Can I Get a Coffee Shop Business Plan PDF?

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

• STARTUP COURSE AND DOCUMENTS

Coffee Shop Startup Business Plan: Unveiling Caffeinated Ventures

Starting a coffee shop can be an exciting and satisfying new venture. As the aroma of freshly brewed coffee fills the air and customers gather to savor their favorite beverages, the dream of owning an awesome coffee shop becomes a reality.

A coffee shop startup business plan includes an executive summary, company description, market analysis, products and services, marketing and sales strategies, operational details, financial projections, and a funding request if needed.

To ensure the effectiveness of your coffee shop, it is crucial to develop a well-thought-out business plan. In this article, I will unveil the key elements of a coffee shop startup business plan, providing you with insights and strategies to embark on your caffeinated venture.

Table of Contents

What Is A Coffee Shop Startup Business Plan?

A coffee shop startup business plan is a comprehensive document that outlines the strategies, goals, and financial projections for launching and operating a coffee shop. It serves as a roadmap for entrepreneurs and helps them organize their thoughts, make informed decisions, and secure funding from potential investors or lenders.

A coffee shop startup business plan is a vital tool for entrepreneurs to demonstrate their understanding of the industry, showcase their business concept, and convince stakeholders of the coffee shop’s viability and potential for growth.

Read more about: Coffee Shop Business Plan Cost: What are the Expenses?

Executive Summary

The executive summary holds significant importance within a coffee shop startup business plan as it serves as a compelling introduction to your business idea. By condensing key information into a concise format, it aims to capture the attention of potential investors or lenders right from the start.

In this section, you need to outline your business idea and its unique selling points that set your coffee shop apart from the competition. Highlight the factors that make your coffee shop special, such as specialty coffee blends, a unique ambiance, or a focus on sustainability. This will create immediate interest and intrigue among readers.

Additionally, the executive summary should provide a glimpse into your target market and demonstrate your understanding of its needs and preferences. Paint a clear picture of your ideal customers, their demographics, and their coffee consumption habits. Show that you have conducted thorough market research to identify a viable target audience.

Furthermore, it is crucial to include projected financials in the executive summary. Present a snapshot of your expected revenue and profitability to demonstrate the potential return on investment for investors or lenders. Highlight any anticipated growth prospects or scalability in your financial projections to showcase the long-term potential of your coffee shop business.

By crafting an attention-grabbing executive summary that effectively communicates the unique aspects of your coffee shop, target market analysis, and financial projections, you can set a positive tone for your entire business plan and increase the likelihood of securing the support and funding you need to turn your coffee shop startup into a reality.

Company Description

The company description section of your coffee shop startup business plan provides an opportunity to showcase the unique qualities and guiding principles of your business. Here, you can delve into the details that make your coffee shop special and differentiate it from others in the market.

Start by explaining your vision, your overarching goal, and what you aim to achieve with your coffee shop. This could be creating a community hub, offering a unique coffee experience, or promoting sustainable and ethically sourced products. Next, outline your mission statement, which defines the purpose of your coffee shop and the value it brings to customers.

Additionally, highlight your core values, such as quality, customer service, sustainability, or community engagement. These values not only guide your decision-making but also help to build a strong brand identity.

In the company description section, it is also important to define your chosen business structure, whether it’s a sole proprietorship, partnership, or corporation. Explain the reasoning behind your chosen structure and how it aligns with your long-term goals.

Furthermore, outline the legal requirements, licenses, and permits necessary to operate a coffee shop in your specific locality. Research and identify the regulations related to health and safety, food handling, zoning, and any other specific permits required for the sale of coffee or related products. Demonstrating that you understand and comply with the legal obligations will instill confidence in potential investors, lenders, and stakeholders.

By providing a comprehensive company description that encompasses your vision, mission, core values, business structure, and legal requirements, you establish a strong foundation for your coffee shop startup business plan. This section not only showcases your passion and commitment but also demonstrates your understanding of the industry and the necessary legal framework to operate a coffee shop.

Market Analysis

Market analysis is an essential component of a coffee shop startup business plan, as it provides valuable insights that can guide your decision-making process. By conducting a thorough market analysis, you gain a deeper understanding of the dynamics that shape the coffee industry and your potential customers.

Start by identifying your target market, including their demographics, preferences, and behaviors. Determine the specific customer segments you want to cater to, such as working professionals, students, or specialty coffee enthusiasts. Understanding their needs and preferences will help you tailor your products and services to meet their expectations effectively.

Next, analyze the competition within your market. Identify existing coffee shops and their strengths, weaknesses, and unique selling points. Assess their pricing, menu offerings, customer service, and overall brand positioning. This analysis will enable you to identify opportunities for differentiation and competitive advantage.

Furthermore, stay updated on industry trends related to coffee consumption, emerging beverage trends, sustainability practices, and evolving customer preferences. This information will help you stay ahead of the curve and adapt your offerings to align with current market demands.

By conducting a comprehensive market analysis, you can gather valuable insights that will shape your coffee shop’s strategy and positioning. Tailoring your products and services to meet the demands of your target market effectively will enhance your chances of attracting a loyal customer base.

Read more about: Coffee Shop Business Plan Cost: Counting The Beans

Products and Services

When describing the range of products and services in your coffee shop startup business plan, it is important to highlight the unique aspects that will distinguish your offerings from competitors. Start by discussing the types of coffee you will serve, including any specialty coffee beans or blends that you plan to feature. Emphasize the quality, flavor profiles, and sourcing practices that make your coffee stand out.

Additionally, highlight any signature beverages or innovative creations that will be exclusive to your coffee shop. This could be a unique combination of flavors, a creative presentation, or a special brewing technique that adds a distinctive touch to the customer experience.

Furthermore, if you plan to incorporate locally sourced ingredients or partner with local artisans, highlight this in your description. Showcase your commitment to supporting local businesses and the community, as it can resonate with customers who value sustainability and supporting local economies.

Discuss your pricing strategy and whether you intend to position your coffee shop as a premium option, focusing on offering high-quality, specialty coffee at a higher price point, or as an affordable and accessible choice. Explain how your pricing aligns with the value proposition of your products and the target market you aim to attract.

Lastly, emphasize the importance of consistency in delivering a quality product and the variety you will offer to cater to different tastes and preferences. Highlight how this will set your coffee shop apart and create a unique and memorable experience for your customers.

By effectively describing the range of products and services, highlighting their unique aspects, discussing pricing strategies, and emphasizing quality, variety, and consistency, you can showcase the competitive edge of your coffee shop and appeal to customers looking for a distinct and exceptional coffee experience.

Marketing and Sales Strategy

Developing a comprehensive marketing and sales strategy is crucial for the performance of your coffee shop startup. In your business plan, outline your plans for promoting and attracting customers to your establishment.

Start by focusing on building a strong online presence. Create a user-friendly website that showcases your coffee shop’s unique qualities, menu offerings, and contact information. Utilize engaging social media platforms, such as Facebook, Instagram, and Twitter, to connect with your target audience, share enticing visuals, and run targeted advertising campaigns. Leverage online advertising tools, such as Google Ads or social media ads, to reach a wider audience and drive traffic to your coffee shop.

In addition to online efforts, consider offline marketing channels as well. Explore partnerships with local businesses, such as bakeries or gyms, to cross-promote each other’s services and reach a wider customer base. Participate in community events, sponsor local initiatives, or host workshops to create brand awareness and establish a positive reputation within the community.

By combining effective online marketing strategies with offline community engagement, you can maximize your coffee shop’s visibility and attract a steady stream of customers. Regularly evaluate and adapt your marketing and sales tactics to stay relevant and responsive to customer preferences.

Operational Plan

The operational plan section of your coffee shop startup business plan provides a roadmap for the day-to-day activities and logistics necessary to run your establishment smoothly. In this section, you need to cover several key aspects of your coffee shop’s operations.

Start by discussing the location and layout of your coffee shop. Explain why you chose a specific location and how it aligns with your target market and business goals. Describe the interior design and ambiance you aim to create, as it plays a crucial role in attracting and retaining customers.

Next, outline the equipment required to operate your coffee shop efficiently. This includes espresso machines, grinders, brewing equipment, refrigerators, and POS systems. Discuss your inventory management system, detailing how you will track and manage coffee beans, food items, and other supplies to maintain adequate stock levels and minimize waste.

Define the roles and responsibilities of your staff, including baristas, cashiers, and managers. Outline their key duties and qualifications, highlighting the importance of providing excellent customer service and ensuring product quality.

Detail your coffee shop’s operating hours, including any plans for extended or variable hours based on customer demand. Establish customer service standards to ensure consistent and exceptional experiences for every visitor. Additionally, outline your health and safety protocols, including food handling procedures, cleanliness standards, and employee training, to ensure compliance with regulations and prioritize customer well-being.

Read more about: Coffee Shop Business Plan Budget: Roasting The Numbers

Financial Projections

The financial analysis section of your coffee shop startup business plan is a critical component that provides insights into the financial health and sustainability of your business. To create a comprehensive financial analysis, it is important to include projected revenue, expenses, and profitability over the first few years of operation.

Start by estimating your projected revenue based on factors such as anticipated sales volume, pricing strategy, and market demand. Consider different revenue streams, such as coffee sales, food items, merchandise, or catering services.

Next, outline your expected expenses, which may include rent, utilities, supplies, payroll, marketing, licensing fees, and insurance. Conduct thorough research to ensure your expense projections are realistic and aligned with industry standards.

Conducting a break-even analysis is crucial to determine the point at which your coffee shop will start generating profits. This analysis helps you identify the sales volume needed to cover your expenses and achieve profitability. It provides a milestone to track your progress and make informed business decisions.

Furthermore, it is essential to create a contingency plan to address potential financial challenges or unforeseen circumstances. Consider factors such as fluctuating costs, economic downturns, or unexpected competition. Develop strategies to mitigate risks, manage cash flow, and adapt your operations to ensure financial stability.

By providing a comprehensive financial analysis, including projected revenue, expenses, profitability, break-even analysis, and a contingency plan, you demonstrate a thorough understanding of the financial aspects of your coffee shop startup. This information is crucial for potential investors, lenders, or stakeholders to evaluate the financial viability and potential returns of your business venture.

Funding Request

If you are seeking external funding to launch or expand your coffee shop, it is essential to clearly articulate your funding needs in your business plan. In this section, provide a detailed overview of how the funds will be utilized to support the growth of your coffee shop.

Start by outlining the specific areas where the funding will be allocated. This may include equipment purchases, such as espresso machines, grinders, brewing equipment, furniture, or technology systems. Additionally, highlight how the funds will be utilized for marketing campaigns to raise awareness, attract customers, and build a strong brand presence. Consider including a budget for digital marketing, social media advertising, local promotions, or collaborations with influencers.

Moreover, address the importance of working capital in your funding needs. Working capital ensures that you have sufficient funds to cover day-to-day operational expenses, such as inventory purchases, rent, utilities, payroll, and unforeseen costs.

When presenting your funding needs, it is crucial to provide a realistic repayment plan. This demonstrates your commitment to meeting financial obligations and repaying the borrowed funds within the agreed timeframe. Consider factors such as cash flow projections, revenue growth, and profitability when developing your repayment plan.

Lastly, emphasize the potential return on investment for potential lenders or investors. Highlight the growth prospects of the coffee shop industry, market demand for specialty coffee, and any unique selling points that differentiate your business. Show how the funds will contribute to the long-term effectivity of your coffee shop.

By clearly articulating your funding needs, providing a detailed overview of fund utilization, presenting a realistic repayment plan, and demonstrating the potential return on investment, you increase your chances of securing the necessary funding to launch or expand your coffee shop venture.

In addition to the key elements discussed above, here are a few extra tips to enhance your coffee shop startup business plan:

• Staff Training and Development: Invest in comprehensive training programs to equip your staff with the necessary skills and knowledge to provide excellent service. A well-trained team will ensure consistent quality, enhance customer satisfaction, and contribute to a positive brand image.
• Customer Relationship Management: Implement a customer relationship management (CRM) system to capture customer data and track their preferences. This valuable information can help you personalize promotions, offer loyalty rewards, and enhance the overall customer experience.
• Collaborations and Partnerships: Explore collaborations with local suppliers, artisans, or organizations that align with your brand values. Partnering with like-minded businesses can create mutually beneficial opportunities for cross-promotion and tap into new customer segments.
• Online Ordering and Delivery Services: Consider incorporating online ordering and delivery services to cater to customers who prefer convenience. Develop a user-friendly website or mobile app that allows customers to browse your menu, place orders, and have their favorite coffee delivered to their doorstep.
• Community Engagement: Engage with the local community by sponsoring events, participating in charity initiatives, or hosting workshops. Building strong community ties can generate positive word-of-mouth, increase brand loyalty, and attract new customers.
• Customer Feedback and Reviews: Actively encourage customer feedback and regularly monitor online reviews. Address any concerns promptly and utilize feedback to make improvements. Positive reviews and testimonials can serve as powerful marketing tools.
• Unique Selling Proposition: Identify and emphasize your unique selling proposition (USP). It could be your commitment to fair trade coffee, a cozy ambiance, live music, or innovative drink creations. Highlighting your USP will differentiate you from competitors and attract a loyal customer base.
• Expansion Opportunities: As your coffee shop thrives, explore expansion opportunities. This could involve opening new locations, introducing franchising options, or diversifying your offerings. Development should be based on thorough market research and careful financial planning.
• Social Media Marketing: Leverage the power of social media platforms to build a strong online presence. Share captivating visuals, engage with your audience, and leverage social media influencers to increase brand awareness and drive foot traffic.
• Continuous Learning: Stay abreast of industry trends, attend coffee expos and workshops, and network with other coffee professionals. Continuously educate yourself and your staff to stay ahead of the curve and offer an exceptional coffee experience.
• Long-Term Vision: Finally, maintain a long-term vision for your coffee shop. Set goals, monitor your progress, and adapt your strategies accordingly. Strive for sustainability, growth, and continuous improvement, always aiming to exceed customer expectations.

Read more about: Coffee Shop  Start-Up: What You Need to Know Before You Launch

Frequently Asked Questions

Q1: How much does it cost to start a coffee shop?

A1: On average, it can range from $80,000 to $300,000. It is essential to create a detailed budget that includes expenses like the lease or purchase of space, equipment, furniture, permits, licenses, marketing, initial inventory, and staff wages.

Q2: How can I attract customers to my coffee shop?

A3: To attract customers to your coffee shop, focus on creating a welcoming atmosphere, offering high-quality products, and implementing effective marketing strategies. Consider providing unique specialty coffees, offering a comfortable and inviting ambiance, hosting events or workshops, utilizing social media platforms for promotion, partnering with local businesses, and providing excellent customer service.

Q3: Do I need prior experience to start a coffee shop?

A4: While prior experience in the coffee industry can be beneficial, it is not an absolute requirement. However, having a good understanding of the industry, including coffee preparation, customer service, and business management, is highly recommended. Consider gaining experience by working in a coffee shop, attending barista training programs, or collaborating with coffee industry professionals to enhance your knowledge and skills.

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

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

Hi! I’m Shawn Chun

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

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

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

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

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

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

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

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How to Start a Coffee Shop Business in (2024): Step-by-Step Guide

• January 10, 2024

24 Min Read

• Startup costs: $79,650-$300,400
• Industry trend: Growing
• Difficulty: Moderate
• Profitability: 2.5-7%
• Time to build: 6-15 months
• Commitment: Full-time

Ready? Let’s start the guide by understanding the costs of opening a coffee shop.

Starting a coffee shop is more complex than brewing a perfect cup of coffee.

From choosing the right coffee shop location to designing an appropriate layout and equipping the shop with suitable coffee equipment- a lot needs to be figured out financially, legally, and operationally to establish a successful business.

Well, shrug away that weariness. We have all the answers you have regarding how to start a coffee shop with this step-by-step guide.

So brew that perfect cup of coffee and engage yourself in this interesting read.

Ready? Let’s dive right in.

How much money do you need to start a coffee shop?

Starting a coffee shop is a costly affair. It takes anywhere between $79,650-$300,400 to start a mid-sized coffee shop in the USA. A variety of factors such as coffee shop size, concept, technologies, and the quality of coffee equipment influence the coffee shop starting costs.

What is the average coffee shop profit margin?

The profit margins for a coffee shop span anywhere between 0-15% . However, the average profit margin of a mid-sized coffee shop falls between 2.5-6.8% .

Despite the profit margins, the coffee shop market offers lucrative rewards once you establish yourself in the market. To better understand the concept, let us now look at the benefits and disadvantages of opening a coffee shop.

Pros and Cons of Starting a Coffee Shop

Opening a coffee shop is a dream of many entrepreneurs. But like every other independent business, having a coffee shop has its own pros and cons.

• Growing market: Rewarding opportunities for local businesses and coffee brands.
• Recurring revenue: Repeat customers and consistent revenue stream.
• Growth potential: Opportunity to scale your coffee shop brand in the global market.
• High startup costs: Takes more than $50,000 to start even a basic coffee truck.
• Competition: Competition by coffee chains and independent coffee shops.
• Compliance: Bound by a variety of health and safety compliances.

Understood the advantages and disadvantages of starting a coffee shop? Now, let’s check this detailed guide to starting a coffee business.

How to Start a Coffee Shop: A Step-by-step Guide

Table of contents.

• Understanding the Coffee Shop Industry and Market
• Determine Your Coffee Shop Business Concept
• Brainstorm a Coffee Shop Name
• Find the Right Location for Your Coffee Shop
• Write a Coffee Shop Business Plan
• Choose Your Coffee
• Design Your Coffee Shop Menu
• Design Your Layout and Space
• Register Your Coffee Shop Business
• Apply for Business Licenses and Permits
• Get a Business Insurance
• Apply for a Bank Account & Business Credit Cards
• Fund Your Business
• Build a Team
• Prepare to Launch Your Business

From finalizing your business concept to choosing a coffee roaster, writing a business plan, and acquiring the essential funds- open a coffee shop with this step-by-step guide to ensure the success of your coffee business.

1. Understanding the Coffee Shop Industry and Market

Base your business on a solid foundation by analyzing the coffee industry and your targeted available market. Study the emerging trends in your market and analyze the growth opportunities.

Here are a few coffee shop statistics that might help when you open a coffee shop:

• Coffee shop industry: The US coffee shop industry grew from 36 billion dollars to 45.8 billion dollars between 2020-2022.
• Loyalty programs: According to Square , 79% of consumers are likely to visit the coffee shops that offer loyalty programs. If you want to get repeat customers, make a place for loyalty programs in your strategies.
• Coffee subscription sales: According to SCA, there has been a 25% increase in the number of sellers that offer subscription coffee services since 2019. Moreover, coffee subscription sales have increased by 109% in the same time period.
• Coffee drinkers: According to NCA , 7 in 10 Americans drink more than 3 cups of coffee every day.
• Coffee trends: Nearly 60% of coffee sold in the US marketplace is gourmet coffee. Moreover, there is a 50% increase in demand for flat whites, lattes, and cappuccinos among people between 25-39 years old.
• Coffee shop consumer demographic: According to Statista , more than 70% of seniors drink a cup of coffee daily. However, people between 18-29 are more likely to visit a coffee shop regularly than people in other age cohorts.
• Coffee shop technologies: The POS system is amongst the most popular coffee shop technologies used by owners. More than 60% of eatery outlets use at least one handheld POS system.

Now, gather all the data you can and identify the best model suited for your coffee business.

2. Determine Your Coffee Shop Business Concept

Now that you have planned to open a coffee shop, take the first step and choose the concept of your coffee shop.

The concept will bind your business in a unified theme and help you establish a distinguishing brand image in the market.

As a business enthusiast, you can choose between opening a specialty coffee shop, a coffee kiosk, a drive-thru, or a diversified cafe. However, you want to be practical and choose a concept that can match the reality of your targeted market, financial situation, resources, and demand.

Here are a few points worth considering before finalizing the coffee shop concept:

Target audience

What type of audience will your coffee shop cater to? Will those be young millennials and students who like to chill and hang around or working professionals who would get a quick takeaway?

Spending capacity

Consider the spending pattern of people in the locality where you are planning to open a coffee shop. There is no point in opening a boutique coffee shop selling $15 coffee when the people there don’t prefer that.

Menu servings

Will you serve food as well or just coffee in your cafe? If you will be serving food, will you make it from scratch or outsource it from suppliers?

Seating or no seating

Will there be couches and tables to seat people or will it be a quick takeaway coffee counter?

The concept you choose will determine everything else ahead.

For instance, the size of a coffee shop, expenses on decor, the requirement of equipment, licenses, and permits, the menu you will offer, etc.

So figure out the concept that can be converted into a well-performing coffee shop.

3. Brainstorm a Coffee Shop Name

Another important step when starting a new business is to brainstorm its name. A name gives a unique identity to your business and forms the foundation of your brand in the market.

As it is popularly said, “ A well-chosen name is the best of all riches.”

While brainstorming the name for your coffee shop, here are a few things you must keep in mind:

• Choose a name that is simple, short, and easy to spell.
• Brainstorm ideas that signify your business idea. For instance, Steaming Sips, Brewscape, Whisk & Whiff, etc.
• Choose a name that is easy to remember and recall.
• Try adding SEO keywords to your coffee shop name. This will help boost your online presence.
• Avoid choosing extremely specific names in terms of location or your product offerings. The name should allow easy scalability in the future.
• Lastly, check whether or not the domain name is available for the same.
• Take the help of online name generators to brainstorm ideas for your coffee shop.

Don’t forget to seek the opinions of your friends, relatives, and family members before finalizing the name.

Want a Unique Name for your Coffee Shop?

Generate a brandable and catchy business name in seconds with our free business name generator for coffee shop.

4. Find the Right Location for Your Coffee Shop

The location of your coffee shop plays the most influential role in determining the success or failure of your business. So, it is recommended to start looking for locations right from the beginning.

Begin by identifying the states that offer promising opportunities for starting new coffee shops. And determine your budget for rental expenses every month. This will give you a bit of clarity in identifying the best locations.

Now, cost is the prominent factor influencing your choice of location. However, here are the other factors that require equal attention:

• Access to target market: Look out for places that are easily accessible and populated by your target audience. For instance, if working professionals are your target audience, you want a space that’s near commercial hubs.
• Visibility of the shop: When it comes to restaurants and coffee shops, you want a front location in buildings. Choose a location that has favorable foot traffic.
• Coffee shop size: Determine how much size will be required for your coffee shop concept. Identify the kitchen space requirements and seating requirements before finalizing the location.
• Previous tenants: Identify the type of businesses that have operated in that location earlier. Ideally, get an existing coffee shop and transform it into your dream shop.
• Remodeling restrictions: Certain landlords prohibit renovations of any kind. Check the contractual agreement before finalizing the location.
• Competition: Don’t open a new coffee shop in a location that is already saturated by big players. Choose a location where there is demand for new coffee shops.

Choosing the right coffee shop location can be challenging. If required, take the help of consultants that specialize in this area.

Here is a list of the best cities for opening a coffee shop in the US: 

Source: Clever

5. Write a Coffee Shop Business Plan

Starting a coffee shop is as complex as brewing a perfect cup of coffee. And maybe even more.

While setting up your coffee shop, be prepared to perform multiple tasks consecutively at a time. Right from choosing the location for your coffee shop, to figuring out the finances, acquiring licenses, deciding on a menu, and getting the shop ready- a lot needs to be done before you can start serving coffee in your coffee shop.

A well-crafted business plan accounts for all these perspectives and offers you a focused direction, ensuring a smooth and successful launch of your coffee shop business.

Wondering what goes into making a comprehensive actionable plan? Well, here are a few components that your coffee shop business plan must include:

• Executive summary
• Business Overview
• Competitive and market analysis
• Sample menu
• Coffee shop design and layout
• Sales and marketing plan
• Key management team
• Coffee shop operations
• Financial plan

Now, writing a solid business plan that accounts for each of these components is not everyone’s cup of tea. It demands consistent efforts, unwavering dedication, and precise attention to detail.

Need Assistance Writing a Coffee Shop Business Plan?

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

Start Planning Now

6. Choose Your Coffee

People will keep coming back for the coffee you serve. So it definitely needs to be as iconic as your coffee shop.

Learn as much as you can about the coffee. Go to coffee-tasting events, read books, experiment with different flavonoids, and understand the different blends and roasts available in the market.

Roasting your own coffee beans when you start a coffee shop can be expensive and time-consuming. It’s better to get it from the coffee roasters that are operating locally in your market.

Explore the market and get samples of the coffees from different coffee roasters. Be very precise about the coffee beans they use, their roasting methods, and the coffee texture. Negotiate the per-pound rate for coffee beans and strike the best deals.

It is better to choose local and best quality coffees as it will form the very foundation of your coffee drinks. Get the opinions of expert baristas to understand what type of coffee will work best for your brand.

7. Design Your Coffee Shop Menu

The most important question that the investors will have is: What will you serve in your coffee shop?

Having a sample menu will help them understand your business concept, its uniqueness, and the demand it can gather in the market.

Now, figuring out the right menu is an important part of business planning. This will help you figure out the requirements for equipment, kitchen space, and health permits. Moreover, it will influence the startup costs for your desired coffee shop.

Here are a few tips to keep in mind while designing your sample menu:

• Understand the demands of your potential customers while designing a coffee shop menu.
• Consider what your competitors are serving and how you can gain a competitive edge with your offerings.
• Don’t start with an extensive menu. Keep it small and limited.
• Add food items to pair alongside coffee, e.g. bagels, croissants, sandwiches, etc.
• To serve coffee cocktails, get an alcohol permit. It can cost up to $40,000 in some states.

Implement the consumers’ psychology to engineer a perfect menu and choose the design that’s in line with your coffee shop branding.

Lastly, consult friends and family members to finalize your coffee shop menu.

8. Design Your Layout and Space

The look and feel of your coffee shop is as important as the quality of the coffee you will be serving. So start planning the design and layout after finalizing the location.

Now, a well-built space is essential to empower an efficient flow of processes in your coffee house. Besides, your potential customers will draw themselves towards your coffee shop, only if they find the decor and ambiance welcoming enough.

Creating a perfect physical space can be challenging. But here are a few factors consideration of which will help you put together the look and layout of your shop.

Back of the house layout

The back of the house represents your kitchen area where the food production will actually happen. A semblance in the layout is essential here so that your baristas and kitchen staff can move freely and seamlessly.

Here are a few tips for getting an efficient back-of-the-house layout.

• Analyze the workflow and create a layout that facilitates an efficient and logical flow of order in the coffee shop.
• Divide the areas into different zones such as storage, cleaning, and preparation. These areas should be kept separate to facilitate cleanliness and flow.
• Optimize the available space by using compact equipment and compact storage.
• Identify the essential coffee shop equipment, i.e. espresso machines, coffee roasters, refrigerator, etc., and place them in easily accessible positions.
• Create a layout such that it is easy to clean and maintain. Invest in equipment that doesn’t clutter.
• Consider getting a huge space for food preparation.
• Keep your service area next to the cooking area. This will make the flow of services seamless.

Front-of-the-house design and layout

This area is where the customer will wait and get served. So it needs to be attractive, welcoming, and clutter-free.

Here are a few tips to keep in mind while designing your front-of-the-house:

• Create a layout such that the customers can flow freely from one point to the other without creating congestion.
• Consider the foot traffic at a time in your coffee shop to design an efficient layout.
• Identify the number of people that can sit together at a time. Now, arrange a seating area such that it allows your customers to have privacy.
• The decor should be cost-efficient, less space-consuming, and easy to maintain.
• Avoid carpeting as it will make the cleaning extremely difficult.
• The flooring shouldn’t be slippery. Choose materials that are easy to clean when something spills.

Focus on incorporating the design elements that resonate with your coffee shop brand. For instance, if sustainability is the central theme of your coffee shop, the decor elements should reflect the use of sustainable materials.

9. Register Your Coffee Shop Business

After all the conceptualizing, you need to legally establish your coffee shop. Registering the business gives legal identity to your coffee shop business and its operations.

Select a business entity

Choose a business entity for your coffee shop as it will determine the taxes, liability, and filing fees for your business. Investors are keen to understand your business structure to get a clear idea of their investment liability.

Here are a few business entity structures you can choose from:

• Sole proprietorship
• Coffee shop partnership
• Limited Liability Company
• Partnership LLC

Understand the benefits of each business structure and identify the one that is most suited for your needs. For instance, an LLC is more suited for businesses since it protects your personal assets against liabilities.

Apply for tax registration & business EIN

Identify the tax registration requirements for your business and register with the State Tax Commission (STC).

Also, apply for an Employer identification number (EIN) through an Internal Revenue Service (IRS) portal. EIN is a 9-digit security number unique to your business.

EIN is essential and required in order to apply for credit cards, loans, and taxes. Moreover, you can open a business bank account only with an EIN number.

After registration, you can now apply for the licenses and permits that a coffee shop requires.

10. Apply for Business Licenses and Permits

Applying for licenses and permits is yet another step to ensure that your coffee shop is legally compliant on all fronts. The licensing requirements vary depending on the structure of your coffee shop, its type, and the beverages it will sell.

Now, research from high-authority sources and identify the essential licenses in your area of work. Also, check the documentation required to get these licenses.

Here are a few licenses and permits essential for opening a coffee shop.

• Business license: A general business license that is essential to operate your business legally in any province. Get it from a municipality or local government while registering your business.
• Food service license: This is an essential permit for businesses involved in handling food and beverages. With this license, you can officially start serving.
• Building permits: This permit will allow you to undertake construction and renovation work in the building.
• Certificate of occupancy: This permit indicates the number of people that can be seated in your coffee shop at a time.
• Outdoor seating permit: Will your coffee shop seat the customers in an open setting? If so, you need this permit.
• Health permit: A local health department will issue the permit for your coffee shop ensuring that your coffee shop complies with food preparation and safety protocols.
• Music permit: If the coffee shop will be playing music and organizing events, it will require a music permit.
• Alcohol license: Will you serve alcoholic drinks on your menu? If so, get yourself an alcohol permit.

These are a few different types of licenses you must consider applying for. Some of these licenses will greatly increase your coffee shop startup costs.

11. Get a Business Insurance

If you want to succeed as a coffee shop owner, you definitely don’t want to overlook this step. Insurance will cover your business against unplanned emergencies and contingencies and reduce your overall business risk.

Here are a few different insurances you must consider for your independent coffee shop:

• General Liability insurance: If there is one insurance you want to invest in, this is it. It offers general protection against body injuries and property damage in case of accidents on your premises.
• Property insurance: This protects your coffee shop property in case of fire, theft, or any other natural disaster. It offers coverage on equipment, inventory, and everything within the building premises.
• Worker’s compensation insurance: It’s mandatory for any organization that employs people to have worker’s compensation. It covers medical expenses and lost wages in case of employee injury and illness.
• Product liability insurance: Protects your coffee shop from claims related to food and beverages served at your premises.

Consider getting an umbrella insurance to get additional coverage above the limits of your existing policies.

12. Apply for a Bank Account & Business Credit Cards

Before you open a coffee shop and start making sales, it is important to have a separate bank account. This is important for protecting your personal assets and account maintenance.

Open a business bank account

A business bank account will help you to keep your personal and business expenses separate. This will make accounting clear and ease the tax filing processes. With an EIN number you got earlier, you can apply for a business account.

Get a business credit card

It is important for you to start building credibility for your coffee shop. Apply for a credit card and start spending on business expenses through it. Eventually, you will have a strong credit history to qualify for loans and grants.

13. Fund Your Business

While preparing financial projections for your business plan, you identified all the costs associated with starting a coffee shop business.

Now that you know how much capital is required to start a business , evaluate your actual financial position and assess the funding needs. Do you have enough money to fund your own coffee shop or will you require loans?

Depending on the funding requirements, here are a few sources for you to explore:

• Bank loans: Research loan rates for different banks before applying for business loans. Ideally, if you require a small amount to get started, a bank loan is usually suitable.
• SBA guaranteed Loans: These loans are guaranteed by SBA and require minimal collateral and credit history. These loans are more suitable for small-sized coffee shops that need a small amount to get started.
• Venture Capitalist: Venture capitalist firms invest money in your coffee shops for a stake in equity. Usually, to get approved by VC firms, they need to find your coffee shop unique and promising over other coffee shops.
• Family and friends: Seek small loans from friends and family members. This method is usually the best choice for coffee shop owners who want to avoid paying large interest fees.
• Crowdfunding: Raise funds for your business through various crowdfunding platforms. Present your small business idea and people will fund it in small amounts.
• Working capital loans: There are certain fixed and variable costs that go out every month to run a coffee shop business. Working capital loans help manage your operating expenses without disrupting the cash flow.

Take that business plan and start acquiring essential loans for your coffee shop business.

14. Build a Team

Running a coffee business is not a one-person job. You need an army of loyal employees to build and operate a successful coffee shop.

Identify the requirements of full-time and part-time workers in your coffee shop. The potential employees at a coffee shop business include:

• Chef to prepare food menu

Depending on the expected foot traffic during rush hours, you can schedule hourly wage workers at your cafe.

Invest the resources and make a plan to train your employees. Ensure that the training program is comprehensive and trains them in the following aspects:

• Using coffee equipment
• Resolving customer conflicts
• Serving protocols
• Greeting protocols
• Cleanliness standards and hygiene practices
• Health and safety protocols

15. Prepare to Launch Your Business

And you are almost there. Set yourself a timeline and start prepping for the coffee shop’s launch.

However, before opening a coffee shop, here are a few things you need to take care of.

Purchase necessary business equipment and tools

While making your coffee shop business plan, you already planned for the different coffee shop equipment that will be required to run a coffee business.

Now, refer to that plan and start making essential purchases. You can buy brand-new equipment or purchase used ones from existing coffee shops. Regardless of the choice you make, ensure that you equip your coffee business with quality equipment.

Here is a list of coffee shop equipment that are essential for your business:

• Espresso machine
• Coffee grinders
• Brewing machine
• Coffee frothers
• Refrigerators
• Commercial blenders

Start checking items on the list once your orders for equipment start arriving.

Build an inventory

Get proactive about inventory management right from the beginning. Stock enough supply of raw materials before you open the gates of your new coffee shop to the public.

Here are a few supplies you need in order to start serving your customers:

• Coffee beans
• Gourmet coffee powder
• Sweeteners and syrups
• Food supplies
• Disposable cups
• Glassware and dishware

Coffee shops tend to spend a large amount on raw materials and supplies every month. It’s important that you deploy appropriate software and technologies to manage the inventory.

Get essential software and tools

Before you open a coffee shop, you need to invest in a few technologies to ensure the smooth functioning of your business.

Technology helps deliver a satisfactory customer experience and contributes largely to developing a successful coffee shop.

Now, instead of using different technologies for order management, inventory, sales, revenue, and other coffee shop activities, you can invest in a fully integrated point of sale system or POS system.

Gather your research from the market and analyze the point of sale system (POS) used by other coffee shops. Choose the one that can be easily accommodated into your coffee business operations.

Here is a list of coffee shop areas where you will require a technology:

• Online order management
• Inventory tracking
• Payment technologies
• Order display software
• Employee scheduling software
• Email and marketing tools
• Accounting software

Equip your business with all the essential technologies before you open a coffee shop.

Build a website

Are you going to take online orders? If not, you should reconsider this choice.

According to the Specialty Coffee Association (SCA) , curbside orders and pickup have increased by 5380% amongst independent coffee shops since 2019.

Having a well-built functional website can be the most fruitful asset for your coffee business as it will boost your monthly sales by multifolds.

Now, even if you are going to operate as a traditional offline store, having a website is crucial. Consumers tend to check the website of coffee shops online before visiting. If they don’t find your online presence, they are more likely to choose other coffee shops.

Register for the domain and get hosting suited for your business. Using a website building tool, build a functional website for your coffee shop. Integrate payment gateway to the site to facilitate an online payment system.

Now, start building your web presence by posting educational guides, online menu, customer reviews, etc.

Develop a marketing plan

Now, that everything is in place, start preparing for the soft opening/ launch of your coffee business.

But wait, do you have a plan? Do you know how to develop marketing strategies that are in line with your brand voice and values?

Well, here are a few tips that can help you market your business well:

• Social media marketing: Start developing a unique coffee shop brand through different social media channels, i.e. Facebook, Instagram, Snapchat, TikTok. Generate a ton of aesthetic video and picture content on these platforms. Give your potential customers a peek into your fun coffee space.
• Email marketing: Build an email list and start sending out emails to your targeted market on a weekly basis. To ensure that the mail gets opened, send along promotional coupons, loyalty discounts, etc. Introduce new flavors in the menu items and excite your audience to visit you.
• Influencer marketing: Collaborate with influencers to generate content for your coffee shops and promote it on their channels.
• Promotional events: Plan events and workshops at your coffee shop to make it a fun, vibrant place in the neighborhood. For instance, art workshops, coffee art classes, karaoke evenings, happy hours, etc.
• Print media: For the grand launch of your coffee shop, you might want to consider sending out leaflets and pamphlets in the neighborhood of your coffee shop location.
• Special launch offers: Plan special offers to attract your potential customers to the shop. For instance, free drinks.

Consider the marketing budget as the costs will influence your overall coffee shop startup costs.

Now, pick a date and start working on your marketing activities to open a coffee shop.

Related Coffee Shop Resources

• Coffee Shop Business Trends To Follow
• Cost to Start Coffee Shop Business
• Coffee Shop Business Plan Template

Now that you understand the process of starting a coffee shop, let’s turn your dream of opening a coffee shop into a reality.

Take the first step and start writing your coffee shop business plan. An actionable, well-planned business plan will act as a roadmap serving directions for your coffee shop’s success.

Ready to kickstart business planning. Get Upmetrics sample coffee shop business plan template and build your point using it as a reference point.

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

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

Frequently Asked Questions

Should i buy a franchise or start my coffee shop from scratch.

There is a growing demand for local coffee shops in the US marketplace. You can earn lucrative profits by selling great coffee and food in your own café. However, owning a franchise is also a good idea. Identify the demand for specific franchises in your neighborhood and identify the franchisee requirements.

How do I find reliable suppliers for coffee beans and other ingredients?

When choosing a supplier for a coffee roaster, go local. This is because people love exploring local coffee beans and varieties. Talk to multiple vendors and suppliers at a time. Peek into the competitors’ market and check out their suppliers. Negotiate deals with a few suppliers and draft a contract that’s favorable for both parties.

Should I have a website and social media presence for my coffee shop?

Absolutely, yes. Having a website is mandatory to build your web presence. People check the online presence of your shop on social media before deciding whether to visit or not. Moreover, customers prefer placing orders through the website directly when ordering online.

How many staff members will I need to run the coffee shop?

Depending on the size, concept, and working hours of your coffee shop, you may need anywhere between 3-10 employees to run a coffee shop. Assess the need for baristas, servers, and cleaners before you start hiring. Initially, you can hire a few part-time employees to save the labor costs and payroll expenses.

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Coffee Shops in Moscow, Russian Federation

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• Moscow, Russian Federation ›
• Chekhov, Russian Federation (42 mi)

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Coffee Shop & Cafe Business Plans

Cafe bistro coffeehouse business plan.

The Watertower Cafe is a start-up restaurant/bistro/coffeehouse, offering food, coffee, and music; it is located in Atlanta.

Coffee Kiosk Business Plan

The Daily Perc will open drive-thru and mobile cafes serving coffee drinks and other beverages to the commuter and captive consumer markets.

Coffee Roaster Business Plan

Beanisimo Coffee is a start up Salem, Oregon based coffee roaster that has developed a line of premium coffees and espressos.

Coffee Shop Business Plan

Java Culture is a coffee bar providing high-quality gourmet coffee with great service.

Coffeehouse Business Plan

Dark Roast Java is the newest coffee house/cafe to open in downtown Pleasantville, offering a uniquely flavorful coffee drink in a comfortable, upscale environment.

Convenience Store Cafe Business Plan

Luna's Convenience Store is an upscale convenience store with a small 20-seat cafe.

Internet Cafe Business Plan

JavaNet is a start-up business that will provide a unique forum for communication and entertainment through the medium of the Internet.

Religious Coffeeshop Business Plan

Inspirational Grounds is a start-up Christian Cafe selling specialty coffee drinks, food, religious books and music in Minneapolis.

Sports Equipment Cafe Business Plan

The Boulder Stop is a start-up retail business that will offer high-end rock climbing gear and classic Northwest coffee.

Tea Room Business Plan

Jasmine Teahouse is a new upscale teahouse in Simsbury, CT, serving over 52 kinds of whole-leaf teas, pastries, and premium chocolates from around the world.

Coffee Distribution Business Plan

The Coffee Warehouse is a new business providing full service distribution of coffee and supplies to coffee houses and espresso stands throughout the Spokane and Northern Idaho market.

Coffee Export Business Plan

Silvera & Sons is an ongoing manufacturing company which prepares green Arabica coffee beans grown in Brazil for exportation to American specialty roasters.

Wake up and smell the opportunity! Do you make a mean cup of joe? A love for quality coffee and a desire to create a warm, cozy coffee shop or cafe could blend to create the newest caffeine hub for your community. Plan for success with our coffee shop business sample plans.

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You might also like

One World Cafe

Coffee Shop · $

533 S Main St

"The white chocolate mocha with raspberry is to die for!"

Bucer’s Coffeehouse & Pub

201 S Main St (at E 2nd St)

"Absolutely Incredible collection of antique books - the white chocolate mocha's are delicious too."

Dutch Bros Coffee

321 N Main St

"9:45am Thurs. Aug. 22--To the two girls working this morning's shift: you're golden, and made my morning so much better than coffee on its own could have. Thank you for the smiles!"

Other Starbucks locations

Starbucks 1930 West Pullman Road

Starbucks 710 S Deakin St

Starbucks 1320 S Blaine St

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