take away coffee shop business plan

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Take Away Coffee Business Plan: The Ultimate Barista’s Handbook

In today’s fast-paced world, where time is of the essence, the demand for convenient and quality takeaway coffee has soared. Capitalizing on this trend, starting a takeaway coffee business can be a great venture. However, a well-crafted business plan is essential to navigate the competitive landscape and ensure long-term growth.

A comprehensive takeaway coffee business plan covers market analysis, differentiation, menu offerings, operations, staffing, marketing, pricing, financial projections, and future growth strategies. Craft your path to winning the hearts of coffee lovers in the booming world of takeaway coffee!

In this article, I will outline a comprehensive business plan for a takeaway coffee business.

Table of Contents

Executive Summary

First and foremost, the executive summary introduces your business concept. It succinctly describes the nature of your takeaway coffee business, emphasizing its unique selling points and the value it brings to customers. Whether it’s the specialty coffee blends, personalized customer service, or innovative menu offerings, highlight what sets your business apart from the competition.

Next, outline your target market. Identify the specific demographic, psychographic, and geographic characteristics of your ideal customers. Discuss their preferences, and needs, and how your business is positioned to cater to them effectively. Highlight any market trends or shifts that present growth opportunities.

Furthermore, emphasize your competitive advantage. Clearly articulate what gives your takeaway coffee business an edge over others in the market. This could be your prime location, superior product quality, sustainable sourcing practices, or a unique brand identity. Showcase why customers should choose your coffee over alternatives.

Finally, provide a glimpse into your financial projections. Summarize the anticipated revenue and profit margins based on thorough market research and realistic assumptions. Address the initial investment required and the expected return on investment. This will demonstrate the financial viability and potential growth prospects of your business.

Remember, the executive summary should be engaging, compelling, and concise. It should pique the interest of readers, encouraging them to delve deeper into your business plan.

Read more about: Cost to Open a Coffee Cart: Calculating the Cost of Entry

Market Analysis

To establish your takeaway coffee business, it is essential to embark on comprehensive research of the local coffee market. This research entails a meticulous examination of various factors that shape the industry landscape.

Begin by analyzing consumer preferences within the market. Understand the evolving tastes, trends, and demands of coffee enthusiasts in your area. Explore the diverse range of coffee options favored by local consumers, such as specialty brews, flavored coffees, or alternative milk choices. By staying attuned to these preferences, you can tailor your offerings to cater precisely to the desires of your target audience.

Demographic analysis is another crucial aspect of market understanding. Investigate the demographic makeup of your target area, including age groups, income levels, and lifestyles. This knowledge will help you determine the most viable customer segments to focus on and design strategies to effectively reach and engage them.

Furthermore, a thorough examination of the competition is vital. Identify existing coffee shops, cafes, and other establishments offering takeaway coffee in your vicinity. Study their strengths, weaknesses, and unique selling points. This analysis will enable you to identify gaps or opportunities in the market that your business can exploit, setting itself apart from competitors.

Once armed with this market intelligence, you can identify your specific target audience and their unmet needs. Determine how your takeaway coffee business can fulfill those needs better than your competitors.

This might involve offering premium quality coffee beans sourced from specific regions, providing exceptional customer service, or creating an inviting ambiance that fosters community engagement. Aligning your business to address these unmet needs will enhance your competitive advantage and resonate with your target audience.

You lay a solid foundation for your takeaway coffee business by conducting thorough market research and analyzing consumer preferences, demographics, competition, and trends. This understanding enables you to position your business strategically, differentiate yourself from competitors, and tailor your offerings to meet the specific needs and desires of your target audience.

Business Concept and Differentiation

Defining your business concept and establishing a strong unique selling proposition (USP) is crucial to set your takeaway coffee business apart from the competition. Start by identifying the key factors that differentiate your business and make it unique.

Consider the quality of your coffee beans as a potential USP. Are you sourcing beans from specific regions known for their exceptional flavor profiles or using specialty blends that are distinct and hard to find elsewhere? Highlight the superior quality of your coffee and emphasize how it creates a memorable and satisfying experience for your customers.

Another potential USP is personalized service. Will you offer a customized approach, such as allowing customers to choose their preferred brewing method, grind size, or flavor enhancements? Highlight how your knowledgeable and friendly staff will go the extra mile to ensure each customer’s coffee preferences are met, fostering a personalized and memorable experience.

The ambiance of your store can also be a unique selling proposition. Will you create a cozy, inviting atmosphere with comfortable seating and aesthetically pleasing decor? Will you provide a space that promotes socializing, relaxation, or productivity? Clearly articulate how your store’s ambiance will enhance the overall coffee-drinking experience, enticing customers to return and spend more time in your establishment.

When articulating your USP, ensure it resonates with your target audience. Understand their needs and desires, and convey how your unique offering meets those requirements better than competitors. Emphasize the benefits customers will gain from choosing your takeaway coffee business over others.

To attract and retain customers, consistently deliver on your USP promise. Train your staff to uphold the standards of quality, service, and ambiance you’ve set. Continuously seek feedback from customers to gauge their satisfaction and make necessary improvements. Create a sense of loyalty and connection by engaging with your customers through loyalty programs, personalized promotions, or social media interactions.

Menu and Product Offering

Start by understanding the tastes and preferences of your customers, ensuring that your menu aligns with their desires.

Offer a diverse range of coffee options to appeal to different preferences. Include specialty brews such as pour-over, cold brew, or espresso-based drinks. Highlight unique flavor profiles and brewing techniques that showcase your expertise and set your offerings apart from standard coffee chains.

Additionally, consider offering flavored coffees that add a touch of variety and excitement to your menu. Incorporate alternative milk options to cater to customers with dietary restrictions or personal preferences. Include choices like almond milk, soy milk, oat milk, or coconut milk.

To complement your coffee offerings, consider including snacks, pastries, or light meals. These options can range from freshly baked goods like croissants, muffins, and cookies to savory items such as sandwiches, wraps, or salads. Make sure to select high-quality ingredients and prioritize freshness to elevate the overall dining experience for your customers.

Keep in mind the balance between variety and managing your inventory efficiently. Conduct market research and gather customer feedback to identify the most popular menu items and refine your offerings accordingly. Regularly update your menu to incorporate seasonal specials or limited-time promotions, keeping customers excited and encouraging them to explore different options.

Present your menu in an aesthetically pleasing and informative manner. Use visually appealing descriptions, enticing imagery, and clear categorization to facilitate customer decision-making. Consider offering different sizes or customization options to accommodate individual preferences.

Continuously assess the performance of your menu items, tracking sales data and customer feedback. This information will help you identify popular choices and refine your offerings over time. Regularly introduce new items or rotate existing ones to keep your menu fresh and exciting.

Read more about: Cost to Open a Coffee Bar: A Cappuccino Economics

Operations and Equipment

When planning the logistics of your takeaway coffee business, attention to detail is crucial. Begin by envisioning the physical layout of your store, carefully considering the flow of operations and customer experience.

Determine the optimal seating arrangements based on the available space and the desired ambiance. Will you provide comfortable seating options for customers who wish to enjoy their coffee in-store? Consider the layout of tables, chairs, and any additional furnishings that will enhance the overall atmosphere and accommodate the anticipated number of customers.

Allocate sufficient counter space to facilitate smooth and efficient customer service. This area will serve as the primary point of interaction between your baristas and customers. Ensure it is well-organized, with designated areas for order taking, coffee preparation, and payment processing. Consider incorporating display areas to showcase your coffee offerings or any additional products you may sell.

Storage areas are essential for maintaining inventory and supplies. Assess your storage needs for coffee beans, milk, syrups, pastries, and other ingredients. Create an organized system that allows for easy access and proper rotation of items. Adhere to food safety regulations and ensure that storage areas are clean, well-maintained, and appropriately temperature-controlled.

Identify the necessary equipment required to operate your takeaway coffee business smoothly. This typically includes coffee machines, grinders, blenders, refrigeration units, and POS systems. Research reputable suppliers and select equipment that aligns with your business needs, budget, and quality standards. Regularly maintain and service your equipment to ensure consistent performance and longevity.

Compliance with health and safety regulations is paramount. Familiarize yourself with local health codes, licensing requirements, and food handling practices. Implement proper sanitation measures, train your staff on food safety protocols, and regularly conduct inspections to maintain a clean and safe environment for both employees and customers.

Consider the layout and logistics of your back-of-house operations as well. Designate areas for coffee bean storage, equipment maintenance, and staff facilities. Optimize the workflow to ensure efficient processes and minimize bottlenecks during peak hours.

Staffing and Training

Start by identifying key roles within your staff, such as baristas, cashiers, and store managers. Clearly outline their specific responsibilities and expectations. Baristas should be trained to expertly craft each cup of coffee, ensuring consistency and excellence in every brew.

Cashiers should handle transactions efficiently and provide friendly and helpful service to customers. Store managers should oversee operations, manage inventory, and ensure a seamless workflow.

Customer engagement is paramount in building loyalty and satisfaction. Train your staff to provide personalized service, engage in friendly conversations, and actively listen to customer preferences.

Encourage them to go beyond taking orders by offering recommendations, explaining different coffee options, and answering any questions customers may have. Developing a rapport with customers and creating a welcoming environment will leave a lasting positive impression.

Product knowledge is essential for your staff to confidently communicate the unique qualities of your coffee offerings. Train them on the various coffee beans, brewing methods, flavor profiles, and any additional products you offer. This knowledge will enable them to make informed recommendations, address customer inquiries, and showcase the expertise behind your brand.

To ensure consistency and excellence across your team, implement comprehensive training programs. Provide initial training to familiarize new employees with your business values, procedures, and customer service standards.

Encourage ongoing professional development and create a positive and supportive work environment. Recognize and reward outstanding performance, fostering motivation and dedication among your staff. By investing in their growth, you empower them to become passionate advocates for your brand.

Remember, your staff is the face of your business. Their ability to deliver exceptional customer service and showcase your coffee’s quality will directly impact customer satisfaction and loyalty. Define their roles and responsibilities, prioritize customer engagement and product knowledge, and implement comprehensive training programs.

Marketing and Branding

Start by creating an appealing brand identity that resonates with your target market. Design a captivating logo that embodies the essence of your business and evokes a sense of quality and uniqueness.

Ensure consistency in your brand visuals, including store design elements, signage, and packaging. A visually appealing and cohesive brand identity will make a lasting impression on customers.

Establish a strong online presence to connect with your audience. Leverage social media platforms such as Instagram, Facebook, and Twitter to showcase your coffee offerings, engage with customers, and share engaging content.

Regularly post visually appealing photos and videos of your coffee creations, behind-the-scenes glimpses, and customer testimonials. Interact with followers, respond to comments, and create a sense of community around your brand.

Collaborate with influencers or local coffee enthusiasts who align with your brand values. These partnerships can help increase your brand’s visibility and credibility. Influencers can promote your takeaway coffee business to their followers, sharing their experiences and recommendations.

Engage in local partnerships with businesses or organizations that complement your brand. For example, you can collaborate with local bakeries to offer coffee and pastry pairings or participate in community events to enhance your brand’s visibility.

Utilize offline marketing strategies as well. Distribute well-designed flyers or brochures to local businesses, community centers, and colleges to target potential customers in your area. Consider participating in local food or coffee festivals to showcase your offerings and connect with a wider audience.

Read more about: Cost of Starting Your Coffee Shop: From Investments to Invoices

Pricing and Revenue Model

Begin by analyzing your ingredient costs, including coffee beans, milk, syrups, and any additional ingredients used in your specialty drinks. Take into account the quality of the ingredients you source to offer a superior product. Factor in the quantity of each ingredient used per cup, as well as any waste or spoilage that may occur, to accurately calculate your costs.

Labor expenses play a significant role in pricing decisions. Evaluate the number of staff members required to operate efficiently, their wages, and any additional benefits or incentives. Factor in the time and skill required to prepare each coffee order, ensuring that your pricing covers these costs while remaining competitive.

Market demand is another crucial factor. Research your local coffee market to understand the pricing trends and expectations of your target audience. Assess the pricing strategies of your competitors, considering their quality, location, and customer base. Determine if you want to position your business as a premium offering or focus on affordability to attract a wider customer base.

Implementing loyalty programs or subscription models can encourage repeat business and customer loyalty. Offer incentives such as discounts, free drinks after a certain number of purchases, or exclusive promotions for loyal customers. Consider offering subscription-based coffee plans where customers can enjoy discounted prices or receive special perks.

Regularly review and adjust your pricing strategy based on customer feedback, market conditions, and changes in ingredient costs. Strive for a balance between profitability and affordability to attract customers while ensuring the financial sustainability of your business.

Financial Projections

Identify the necessary equipment for your coffee business, such as coffee machines, grinders, refrigeration units, and POS systems. Research prices from reputable suppliers to estimate the initial investment required. Additionally, consider lease or rent expenses for your store location, staff salaries, marketing expenses to promote your business, and the cost of purchasing initial inventory.

In projecting revenue, consider factors such as the anticipated number of customers, the average spending per customer, and the pricing strategy you have set. Analyze market research to understand the demand for takeaway coffee in your area and determine a realistic projection of customer volume.

Account for variable and fixed expenses when estimating your costs. Variable expenses include ingredient costs, packaging, and utility bills, which may fluctuate based on sales volume. Fixed expenses include rent, salaries, and insurance, which generally remain consistent. Ensure you have a clear understanding of these expenses and accurately estimate them to create a realistic financial forecast.

Consider profit margins and aim for a balance between profitability and competitiveness. As your business grows and gains traction, you can adjust your pricing and expense management to maximize profitability.

Read more about:

SWOT Analysis

Start by evaluating your strengths. Identify aspects that give your business a competitive edge, such as the quality of your coffee, unique offerings, exceptional customer service, or a prime location. These strengths can be leveraged to differentiate your business from competitors and attract customers.

Next, assess your weaknesses honestly. Identify areas where your business may be lacking, such as limited brand recognition, a small customer base, operational inefficiencies, or a lack of financial resources. Recognizing these weaknesses allows you to develop plans to improve or mitigate them, ensuring long-term growth and sustainability.

Explore the opportunities available in the market. Look for emerging trends, gaps in the market, or untapped customer segments that you can target. For example, you may discover an opportunity to expand your business through online ordering and delivery services or by partnering with local businesses for cross-promotion. By capitalizing on these opportunities, you can further grow your customer base and increase revenue.

Lastly, identify potential threats to your business. Consider factors such as increasing competition, changing consumer preferences, economic fluctuations, or regulatory challenges. By anticipating these threats, you can develop strategies to mitigate their impact and ensure the resilience of your business.

Based on your SWOT analysis, develop actionable strategies and set clear goals to maximize your strengths, address your weaknesses, pursue opportunities, and navigate potential threats. Regularly revisit and reassess your SWOT analysis to stay agile and responsive to changes in the market.

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Expansion and Future Growth

As you plan for the future growth of your takeaway coffee business, it is important to outline your expansion strategies and consider potential opportunities. Explore options such as opening additional locations in strategic areas, offering franchising opportunities to entrepreneurs interested in your brand, or expanding into wholesale distribution to reach a wider customer base.

Clearly define your growth milestones and the strategies you will implement to achieve them, whether it’s through targeted marketing campaigns, strategic partnerships, or operational efficiencies. By outlining your plans for expansion and growth, you can set a clear direction for your business and create a roadmap for betterment in the long term.

Starting a takeaway coffee business requires careful planning and execution. By developing a comprehensive business plan that covers market analysis, branding, operations, financial projections, and growth strategies, you set yourself up for greatness.

Frequently Asked Questions

Q: How do I determine the ideal location for my takeaway coffee business?

A: Consider factors like foot traffic, proximity to offices or schools, competition analysis, parking availability, and accessibility to target customers.

Q: What are the essential permits and licenses needed to start a takeaway coffee business?

A: Depending on your location, you may need licenses for food handling, health and safety, business registration, and potentially alcohol licensing if you plan to serve alcoholic beverages.

Q: How can I create a unique selling proposition for my takeaway coffee business?

A: Identities what sets your coffee apart, such as specialty blends, sustainable sourcing, personalized customer service, or a cozy atmosphere. Emphasize these unique aspects in your branding and marketing.

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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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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Coffee Shops: How To Build Your Takeaway Business

Blog > Coffee Shop & Restaurant Operations > Marketing , Layout & Design

Picture the perfect coffeehouse. It probably includes comfortable seating, free wi-fi, and even a patio or small soundstage for live music.

But if you can’t afford or accommodate all of these accouterments (with the exception of wi-fi, which is practically mandatory), you don’t have to suffer. In fact, you may even be more profitable than your full-service competitors.

Some of the most profitable coffee shops have a limited number of bench seats and bar stools to make the place look lived in and loved, so they can concentrate on takeaway business. Your takeaway customers pay the same price as the sit-down crowd without any of the occupancy costs—which means you can serve 10 of them by the time one couch surfer is halfway through their first cup of coffee.

How to encourage takeaway business:

• Set up a couple of vacuum pots and to-go cups in a prominent location, away from the crowded queue area. Place a jar alongside them with a sign that says, “Self-serve coffee to go: $1.50. Provide exact change here and get your caffeine without having to wait in line.” You’ll shorten your lines and increase your takeaway business.
• Keep you queue moving quickly. Schedule adequate staff for the morning rush and provide the most ergonomic workspace possible. (More on this in an upcoming article.)

 A word on wi-fi

Customers who camp out and Facebook chat won’t pay your rent. Of course, you want your café to be inviting with good lighting and quality furniture. But if you’re having a real problem with limited seating during your rush hours, consider setting up the kind of wifi that requires a new purchase every two hours in order to stay connected. (Do it only during peak hours, if you want to continue to be perceived as hospitable.) Your regulars will still appreciate your coffee and level of surface. They should understand that you can’t stay in business if your tables are turning over every four hours.

Check out What’s Your Wi-Fi Policy for more tips on managing your neighborhood’s near-constant need for broadband.

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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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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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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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Opening a Coffee Shop: Ultimate Guide + Free Business Plan Template

A Comprehensive Guide from Idea to Menu Creation

Starting your own coffee shop is a challenging journey, but for those who show grit and determination along with forward thinking, it can be a rewarding venture. It requires a passion for food and drink and a keen understanding of business principles, marketing, technology and customer service. 

From conceptualizing your cafe to designing your menu, here's your ultimate guide to turning your dream cafe into reality.

Below is a link to a free business plan template for individuals looking to venture into the coffee shop business.

The Coffee Shop Concept

The concept of your coffee shop should be the first thing to consider. The core idea will guide all other decisions about your cafe, including the design, menu, and marketing strategy. When creating your cafe concept, consider your target audience, your unique selling proposition, and the atmosphere you want to make for customers when they step foot in your establishment. 

The group of people that your cafe intends to attract is your target audience. Are young professionals looking for a quick coffee on their way to work, or are they leisurely brunch-goers who appreciate a relaxed atmosphere? To cater to your customer's needs and preferences, you must thoroughly understand your target audience and customize your cafe's business plan and menu accordingly.

Your unique selling proposition (USP) sets your cafe apart. This could be anything from your special menu items such as cinnamon scrolls or a particular roasted coffee bean, sustainable business practices, ease of access and location, or exceptional customer service.

Last but not least, the atmosphere of your café should reflect your concept and appeal to your target audience. A cozy, rustic café might appeal to customers looking for a comfortable, relaxing space. In contrast, a modern, minimalist café might attract customers who appreciate a sleek, clean aesthetic.

Remember starting a café is no simple task, but with a clear cafe business plan, a well designed cafe menu to suit your demographic the road to success is heightened. 

Coffee Shop Business Plan

Your Coffee Shop business plan is a comprehensive document that outlines your cafe's goals, operational processes, marketing strategy, financial forecasts, and more. It's crucial for securing funding from investors or lenders. Still, it's also a valuable tool for planning your cafe's growth and development.

Your business plan should include a detailed budget outlining anticipated costs and revenue. This should cover everything from your initial start-up costs to your ongoing operational costs and provide a clear picture of your cafe's financial viability.

Get your free Coffee Shop Business Plan Kit from Seven Miles Coffee Roasters, a well known roaster based in Australia.

Location, Location, Location. The location of any coffee shop is a crucial factor in its success, and quite possibly the make or break in the first year or so. The ideal location depends mainly on your target audience you are trying to hit in your area. If your cafe caters to professionals, a location near office buildings or business parks might be perfect. On the other hand, if your cafe is aimed at tourists, a spot in a popular tourist area could be more suitable.

Consider factors like foot traffic, visibility, and accessibility when choosing your location. 

If you plan to position a cafe along a busy road, make sure there is accessibility for drives and vehicles to stop and park. If it’s a tedious process to find parking, you will be missing out on the morning traffic rush and people on the go.

Also, consider the competition in the area. Opening a cafe in an area saturated with similar offerings might be challenging. Still, it can also indicate a high demand for cafes and with your unique selling proposition (USP) you could flourish faster than others. 

A quick tip from the Menuzen team . Before venturing into opening a Coffee Shop Venue, try hiring a Coffee Truck Van, create a simple menu , and position yourself around the area you plan to start your business. Within 3 months you will get the jist of whether or not this location is primed, and along the way you can build knowledge and customer relationships to prime your business for success! 

‍ Menu Design

Your coffee shop's menu is not just a simple list of items available. It's a critical marketing tool that can influence your customers perceptions and behavior. When designing your menu, consider your coffee shops concept, target audience, and unique selling proposition.

Choose dishes and drinks that reflect your concept and appeal to your target audience. For example, if you are promoting sustainability, your menu should feature locally sourced ingredients, plant-based options and bring your own cup.

The presentation of your menu is just as important as the offering within, and the design should be clean, clear, and easy to read. High-quality photos of your dishes can also boost view time on your menu, making things slightly more appealing. Not much you can do in the way of imagery for coffee, but promoting food offerings or baked goods is recommended. 

Making your menu accessible online is a crucial part of any coffee shop's marketing strategy. By simply showcasing your coffee menu across social media, it allows people to see your offering, pricing, branding and opening hours. This heightens your chance to win a customer who may be attending another coffee shop daily for their caffeine fix and make them a regular at your coffee shop!

Ready to create your first menu?

Embark on crafting your coffee shop menu and gain the inspiration necessary for progress. Strategize your branding, set your pricing, and animate your menu in preparation for your coffee shop venture's launch.

‍ ‍ Licenses and Permits

Before you open your cafe, you'll need to obtain all necessary licenses and permits. These may vary depending on your location, but they typically include a business license, health permits, and a food handler's permit. Be sure to check in with your local department in best practices and requirements to start a coffee shop.

Promoting your coffee shop is crucial to attracting customers. Your marketing strategy should be tailored to your target audience. It can include tactics like social media marketing, email marketing, SEO, and local partnerships.

Social media, in particular, is a powerful tool for cafe owners. It lets you showcase your offerings, share news and updates, and engage with your customers. Plus, customers can share their experiences at your cafe, providing valuable user-generated content.

Hiring the right team is crucial for your coffee shop's success. When searching for new team members for your cafe, it's really important to find people who have the necessary skills and experience, share your values, and fit in with your cafe's culture. 

Your staff will be the face of your cafe, so they should be capable of delivering excellent customer service. 

‍ Grand Opening

The grand opening of your cafe is a significant opportunity to generate buzz and attract customers. Consider hosting a special event, offering discounts or free samples, or partnering with local businesses to create a memorable experience for your guests.

Onward and Upward

Starting a coffee shop is no small task, but it can be an incredibly rewarding endeavor with the proper planning and tools. Use this guide above as a simple roadmap as you embark on your cafe adventure, and remember, the key to success is in providing a memorable experience to your customers, from the moment they step into your cafe until the last sip of their coffee. Good luck!

Ready to take the next step?

Join 1'000s of coffee shops around the world designing and marketing their menu on Menuzen. Craft beautiful, responsive coffee shop menus and distribute them across the web, social media, and physical store locations.

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

• Templates & Guides

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

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

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

Table of contents

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

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

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

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

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

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

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

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

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

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

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

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

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

Here’s how to get started.

Step #1: Ask and answer questions

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

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

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

For example, you may ask yourself:

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

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

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

Step #2: Write an executive summary

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

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

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

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

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

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

Step #3: Describe your company

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

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

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

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

Step #4: Conduct a market analysis

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

Most market analyses describe three distinct views of the business:

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

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

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

Step #5: Explain your coffee shop’s financials

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

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

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

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

Taking advantage of technology

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

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

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

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

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

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

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

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Coffee Shop Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Coffee Shop Business Plan

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

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

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

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.

How to start a café or coffee shop

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In recent years, the UK had been steadily moving towards the kind of well-established café culture that our European cousins are famous for. These independent brewers have taken a hit due to the ongoing cost of living crisis, but the industry is readying for growth and recovery in 2024.

In April, the UK economy grew by 0.2% thanks to a boost from the nation’s humble hot coffee makers. And, according to an economic report by UKHospitality, the sector has the potential to increase its contribution to create half a million new jobs by 2027.

It’s also now easier than ever to set up a simple store or pop-up with limited equipment – taking payment on your phone using a mobile card reader , for example. This means that starting your own café or coffee shop is becoming an increasingly accessible (and affordable) venture.

Still, future cafe owners need to be aware that consumer behaviour, and buying habits, have changed. Although convenience and cost are still big drivers, brand identity and aesthetic now play a huge part in a customer’s purchase decision – making marketing a crucial consideration for wannabe baristas.

Below, we’ll outline exactly what you need to know to take your café or coffee shop business plan from bean, to cup.

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There’s a huge amount of planning that needs to go into launching a coffee shop. Thankfully, one area which needn’t cause undue stress is creating a website to promote your business. Thanks to modern templates like the one below , you can create one of your own in under an hour.

At Startups.co.uk, we test and rate website builder tools, and we’ve identified Wix as one of the best you can choose for creating a business site. Wix even has a selection of  custom website templates designed specifically for cafes – you simply drop your own menu, location, wording and preferred imagery into your chosen template. Better still, it’s completely free to try for yourself.

Read on to find out more…

How to write a café or coffee shop business plan, market research, financing your café or coffee shop business, concept, branding and design, waste disposal, equipment, utilities and supplies, taking payments, recruitment, regulations, useful links.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

When writing a business plan for a café or coffee shop specifically, you’ll need to consider:

• The overall industry, and how your business will fit into it – are you catering to the growing trend for premium products? Are you offering an independent alternative in an area with a lot of chain brands?
• Competitor analysis – following on from the above, the business plan needs to show a clear understanding of your intended area and customer base, as well as how your café will cater to a gap in the market
• Sales and marketing – for a coffee shop, this means outlining how you plan to price products, along with which items will be available on the menu. Similarly, if you have any ideas for promotions or other purchasing incentives (such as deals or loyalty schemes), include them in this section. See the dedicated marketing section for more information

This is in addition to the standard requirements of any business plan, such as account information and financial forecasts, as well as details of the management structure and operations plans. 

You can learn more about what to include, and get help to create your coffee shop business plan, using our business plan template page.

Sarah Heward, founder and co-owner at The Real Food Caf é tells Startups : “I had to think about the main players in the business and their backgrounds. I then conducted market research before focusing on design, including building a website and menus. My SWOT analysis came next, followed by timeline and financials.

“We made some basic errors – one was getting carried away with our enthusiasm and not doing our homework thoroughly enough, which led to some costly adjustments and mistakes.”

While choosing a convenient location is key, when it comes to running a café, coffee quality is still paramount. With the continued interest in premiumisation and sustainability in the industry, people are becoming increasingly aware of where their coffee is sourced and how it’s roasted. This connects with the growing conscious consumerism movement.

However, while some coffee brands are expanding rapidly, it appears that customers are nonetheless enticed by the intimacy of an independent coffee shop.

Starbucks struggled through the recession, and was forced to close a number of stores across the UK. Fast forward to 2019, however, and the company now has 995 UK stores – the second highest number of outlets for coffee shops in the country. 

While the estimated value of the UK coffee shop market stands at £10.1bn (according to the Allegra Project Café UK 2019 report), there are still opportunities within the sector. Indeed, approximately 95 million cups of coffee are drunk each day in the UK. 

What’s more, high street café culture is booming – according to data published by The British Coffee Association , 80% of people who visit coffee shops make a visit at least once a week, while 16% visit each day.

Cafe owner Heward  continues:  “I feel that the customers are now more into the quality of the coffee and they are conscious about reducing plastic waste. Artisan coffee producers are now more favoured over the bigger brands; people know the blends that they like and where to find it.”

Need help staying organised?

Starting a cafe or coffee shop takes time, and there are a number of steps to take.

We think project management software is a great way to keep everything on schedule. Whether you’re working alone or with other people, you can streamline processes, assign times and track progress to keep everything moving efficiently in the right direction.

Find out which project management tool we think is best .

Premises, equipment, staff… all of these things take money. Fortunately, there are a number of options available if you’re just starting a business and need to raise finance. While many people start businesses using their own savings, or money borrowed from family, there are also various other paths to pursue.

Despite the phenomenal success of Costa and other chains, coffee shops are not the kind of business to set up if you’re expecting a quick multi-million pound exit. Profit margins will only become significant if you open multiple outlets, and even then, your initial costs will be considerable. If you’re feeling particularly ambitious, it may be worth investigating if you can get a business loan to help you get started.

However, if you’re after a lifestyle business which provides you with a modest income, then setting up a coffee shop could be a great decision.

Startup loans – the Startup Loan company is a government-backed scheme, where you can borrow up to £25,000 with a fixed interest rate of 6% p.a.

Business loans – business loans are similar to startup loans, except they are not just for new businesses and don’t have the same caps.

You should also consider how you will keep track of your finances. It’s best practice to use a business bank account to separate your personal and business expenses and income, and you’ll have to if you’re starting a limited company. Nerdwallet compares leading UK business bank accounts if you need to find one.

Consider lighting, layout, and furniture when creating your café’s concept

Managing your money

Starting a business takes money and time, and accountancy software can help with both.

Whether you’re running your cafe alone as a sole trader, or with a staff, you’ll need to stay on top of your finances. If you’re not ready to employ an accountant to help out, then we suggest using an online accountancy tool.

Accountancy software is designed to simplify the complex processes related to money. From tracking your outgoings – whether that is salary or other necessary costs – to managing your taxes, you’ll find any finance process simpler with the right tools in place. Take a look at the accountancy software that we’ve rated best .

Or, take a quick look at our top recommended picks for accounting software that’s best suited to small and fledgling businesses below:

It’s not vital for you to have worked in a café before, but as with any business, industry experience goes a long way . If you don’t have any prior experience, it’s a good idea to spend at least a few weeks working in a similar establishment to the kind you want to open. 

If you choose a business to learn from that’s in a different geographic area, there won’t be any issues with competition, and you’ll find people are surprisingly receptive to offering advice if you’re honest about what you’re planning to do.

When doing her research , Sahar Hashemi , the co-founder of Coffee Republic, spent a day on the Circle Line, getting off at each of the 27 stops to investigate what type of coffee was on offer. It’s important to make sure you’ve spent some time considering the business from more than just a customer’s point of view.

This includes thinking about the type of company you want to create: do you have plans to become a big brand eventually? Or do you want your coffee shop to keep its small and local vibe for the foreseeable future?

And in turn, consider what your café can bring to the scene : whether that’s a focus on a certain type of bean or drink, a particular atmosphere you want to create, or an overarching ethos (e.g. charitable, eco-friendly).

As part of the design process , you’ll need to create a floor plan – you can either hire a professional to do this for you, or use floor planning software to do it yourself. Some of the most well-known software packages are RoomSketcher and CADPro.

Essentially, a floor plan will divide the space into customer-facing areas and dedicated work spaces. Ensure you meet any legal requirements, such as building and accessibility regulations. 

Also, think about the layout of the space, including decoration , along with how your staff will interact with customers. You should also consider what your logo will look like, and where it will be positioned. These are some of the main points to consider when creating your café concept, and contribute to how your coffee shop will be branded and designed.

One of the most well-known coffee brands around the world is Starbucks. For inspiration and advice that could benefit your own brand, think about the beverage giant’s marketing strategy, and the process it followed to create such a remarkable brand .

Ozkan Ozdemir is owner of Emy’s Kitchen, a Turkish cafe based in Islington. Ozdemir tells Startups  said :  “The idea to start Emy’s Kitchen was on our mind for many years. My mum, Emy, is a really good cook and we knew her food would be appreciated by other people too.”

Your café stands to benefit from having a website that provides the key details that your customers need to know. This includes contact information, opening hours, what’s on the menu, and where to find the café.

But a website goes beyond a business listing: think of it as an opportunity to further showcase your brand and reach a wider audience. As your coffee shop grows, you could write a blog that responds to industry developments, or highlights the social good your café is doing. Be sure to include any awards or nominations that your café may receive, too. 

An ‘About us’ section is a great way to connect with customers and create a sense of community. Plus, it’s an opportunity to reinforce your café’s USP. 

If you want to sell products online (such as coffee beans or bespoke cakes), then you’ll need to set up an online shop. Not sure which platform is best for your business? Check out our guide to the best ecommerce platforms for more information.

Also, if you want to host events (whether personal or private hire), then a website will allow you to easily and quickly manage registrations and bookings.

If you’re wondering how to create a business website , it can either be designed professionally, or you can use a website builder to make your own. 

Location and size are key when choosing a premises

The biggest decision you’ll have to make when thinking about how to start a coffee shop is regarding your premises. When looking at prospective sites, location and size are the two main factors you need to consider.

Mintel research found that 79% of Brits purchased an out-of-home hot drink in 2017, while this figure increased to 90% for younger millennials aged 18-27.

Ozkan Ozdemir, founder of Emy’s Kitchen, recalls: “Our biggest challenge was finding a good premises. As the business was a whole new concept we had started, we didn’t actually know which area in London would be best.”

So when choosing a café location, it may be worth looking for a busy urban area with a lot of foot traffic. However, these types of properties are expensive and the amount of square feet you will be able to get will be less than if you choose a more suburban or rural location.

Equally, you may have envisioned a spacious, airy coffee and tea shop with room for large sofas and coffee tables covered in newspapers or books – bear in mind that this may come at a price. 

And as the premiumisation trend continues, it may even be more profitable to forsake the perfect location in favour of investing in better beans. The important thing is to be flexible – focus on visiting a range of properties, big and small, in busy and quiet locations. 

Researching your market is essential: look into the locations that are popular among branded coffee shops, as these are the areas that have been identified for drawing in a good trade. If these shops are too busy during peak times, there could be room for an independent alternative. 

It is also important to know your competition. Consider what the most popular brands are offering, and how you could improve upon that.

While the size of the property you will buy or rent is intrinsically linked to its location, you should know roughly what sort of size and square footage you need. You should also be aware of how many covers (i.e. people seated) it can accommodate, as this will help you when going through property adverts. 

You need to be clear about your requirements: you’ll require a large seating area, a kitchen, a coworking area, a performance space, and/or a small retail section. A rough guide to café sizes is as follows:

Think about what you need from your coffee or tea shop, what is already provided, and what you would need to add yourself. When viewing properties, take the layout into careful consideration. Imagine your service area is fully staffed, and that you’re dealing with a bustling sitting space decked out with tables, chairs, and lots of customers in need of a caffeine injection.

Ozkan adds: “After we had started the business, we realised that the location wasn’t really that important as we have customers travelling from all around London for our breakfasts.”

As part of getting your café up and running, you’ll need to ensure you dispose of its commercial waste correctly. Whether you choose to hire a private company to collect it, or opt for the service provided by your local council, this is an essential part of operations. 

Some providers offer specific services for the hospitality sector, such as collecting glass, food waste, or coffee grounds. To help you choose a provider, read our guide to the best waste management companies . 

Of course, it’s ideal to reduce the amount of waste created in the first place as much as possible. Not only does this help to save money (less waste means fewer collections), but it’s good for the planet, too. Look for a provider that offers coffee cup recycling, and learn more about business recycling in general.

Before you negotiate the lease or purchase of a property, you must also check what commercial classification it currently falls under. If the property does not already have the correct classification for a coffee or tea shop, you will need to get planning permission from your local authority. You can use the Gov.uk licence finder to help you.

A café or coffee shop will most probably be classified as an A3 use class, although this will depend on the local authority. Planning permission for A3 use permits the sale of food and drink to be consumed on premises. For example, if you take on a property with a different class (e.g. a shop, which falls under category A1) and want to use the premises as a café, you’ll need to get the planning permission to change it to an A3 use class. 

To learn more, and to apply for a licence, visit the Gov.uk page on food business registration . 

Here, we outline the equipment, utilities and supplies you’ll need to start your own coffee shop. We’ll also look at the process of sourcing equipment, utilities, and suppliers.

Opening a café or coffee shop requires a lot of equipment. Some of it you’ll need straightaway, while other items you may be able to get further down the line, depending on your business requirements.

Essential kit includes:

• Coffee makers – espresso machines, as well as drip and cafétieres, plus equipment for any other specific drinks you offer e.g. pour over/filter
• Coffee grinders – ensure these are suitable for commercial use
• Cooking devices – e.g. ovens, toasters, sandwich presses
• Cooling and storage – e.g. refrigerators, freezers, shelving/cupboards
• Food containers – for syrup, ingredients, milk etc.
• Security devices – e.g. alarms , CCTV cameras , water detectors  
• Payment equipment – this includes a card reader, an iPad and/or a till, plus software. For more information on payment equipment, read our guide on small business POS systems

You can choose to buy some items outright from the beginning, or you can hire them on a rental or lease basis. For example, espresso machines are notoriously expensive, and it may be more sensible to rent one. By contrast, food containers are likely to be cheaper to purchase. 

Utilities 

You’ll need to get connected with business gas and electricity suppliers – be sure to compare energy suppliers to get the best packages for your small business.

Supplies/suppliers

You’ll need to think about the type of coffee you’ll choose for your café. Consider which (and how many) strengths will be on offer, and do your research about where it comes from and how it’s produced. When choosing suppliers, be sure to do taste tests (with coffee that’s been correctly prepared) so that you can know what your customers will experience. 

Also, check out a supplier’s record – have they won any awards or other industry recognition? Are they FairTrade and/or organic certified? Be sure to review the contract from a potential roaster as well – would you prefer an exclusive supplier, or to be able to use beans from multiple roasters?

Beyond this, the supplies you’ll require will depend on the type of café you run. For instance, the supplies used in a café that specialises in plant-based foods compared to a coffee shop that offers rum and other alcoholic beverages (like London-based Grind ) are going to be very different. 

You’ll also need to factor in non-edible supplies, like plates and cutlery, including both those used in-store and for takeaway. Plus, take into consideration the aprons or other items that your staff will need to wear or use.  

You can find suppliers in the following ways:

• Asking other small business owners for recommendations
• Attending trade shows and industry events (such as Caffé Culture , Coffee Shop Innovation Expo , and European Coffee, Tea & Soft Drinks Expo )

The Real Food Cafe founder, Sarah   Heward, advises:  “Speak to industry leaders with a lot of experience – they will challenge your thinking and not just tell you what you want to hear! Listen to them and prepare to be flexible

A card machine is an essential piece of equipment for your café. While cash is still popular, it’s good business sense to offer customers as many payment options as possible. Read our guide on how to take card payments to learn more.

As well as the device itself, you may need to enable online payment methods, such as a payment gateway . This will be the case if you’re offering online ordering or other ecommerce options.

Baristas, kitchen staff, and waiters are some of the roles to hire for in a café

Any business in the catering or hospitality industries involves hard, physical labour. Unless you can afford to employ staff from the outset, running a café will involve standing on your feet for the vast majority of the day.

Taking on staff is a highly legislated area, so you’ll need to understand and follow regulations on everything from health and safety to managing holiday requests . How much of the process you do yourself, and how much you outsource to a HR company , will depend on you, your vision for your business, and your budget.

Some top tips to consider when recruiting in the hospitality sector include:

• Culture – what type of atmosphere do you want to create, for both your staff and customers?
• Attitude – café staff are the face of your business, so it’s crucial to hire people who reflect its ethos and brand
• Experience – want perfect latte art with every pour? In need of standout dishes? If so, seek out experienced candidates for more skilled roles (such as baristas and chefs) so that your café can offer top-quality produce from the outset (and while other team members receive training)

Product images and other visual, shareable content are great for social media marketing

Emy’s Kitchen owner, Ozkan Ozdemir points out: “The food industry is very hard and you only have 20-30 mins to make customers happy, so you need a good team to achieve that goal.”

There are a number of ways to promote your café, including:

Social media

Loyalty programmes

Traditional marketing

When it comes to marketing a café or coffee shop, be sure to use social media. Creating content tailored to your target audience and the platforms they use is an essential part of social media marketing . 

Whether you film your baristas making the perfect cup of coffee, or share photos that your customers have taken, this type of business is highly visual – making it ideal for social media platforms. But it’s more than that just advertising – social media also offers an opportunity to engage and interact with your customers.

Whether you opt for a card that’s stamped per purchase, or a digital app that allows customers to collect points, loyalty programmes are a key part of marketing a café or coffee shop. 

Not only is this an incentive for people to return to your coffee shop, but if you use a digital system you can collect valuable information as well, such as common orders or popular visiting times.

While it’s easy to focus solely on digital marketing, remember that cafés and coffee shops are often central places in a local community. Be sure to connect with people face-to-face as well.

Options include printing and handing out flyers in your local area, as well as printing banners and posters. Plus, reach out to nearby offices and other companies to let them know you’re new in town.

Currently, there is no law that states you must undertake formal training to open a café or coffee shop. 

However, you must ensure that you and anyone else working with food at your business has the appropriate level of training and/or supervision to do their job properly. The legal responsibility lies with the business owner, so make sure you have all the information you need. 

You’ll need to be clued up on the basic principles of food preparation. Make sure you check out our restaurant and sandwich shop guides, as many of the principles for those kinds of businesses will also apply here.

The Food Standards Agency (FSA) is the body appointed by the government to be responsible for all food safety standards. The FSA can provide you with advice on all food hygiene matters, and offers an information pack called ‘Safer food, better business’ , which will help you to comply with the law and make your premises safe for the public. The publication covers key aspects of serving food, including contamination, cleaning, chilling, cooking, management, and keeping a food diary. 

Your business must also be registered with the local authorities. You can and likely will face inspections in the future, and a failed inspection is bad for your café in a number of ways: either legally (you could be closed down), in terms of business (bad publicity and referrals) or morally (as people could be taken ill or even die from contaminated food). 

In order to avoid such pitfalls, you should follow the Hazard Analysis Critical Control Point (HACCP) . This is an internationally recognised and recommended system of food safety management that focuses on identifying the ‘critical points’ in a process where food safety hazards could arise, and puts steps in place to prevent things from going wrong.

Take a look at the rules and regulations section of our catering guide , as the same restrictions on food preparation will apply. 

Your café or coffee shop will need to be appropriately insured – this is to protect you, as well as your customers. 

There are a range of providers out there who can offer cover that is tailored to your unique business requirements. However, you’ll usually need the following types of insurance:

• Building contents – this protects your café’s stock 
• Business interruption – with this type of cover, you’re insured for profit losses if you’re made to stop trading temporarily
• Employers’ liability – cover for the health and safety of your employees

Sarah Heward, founder and co-owner at The Real Food Café has this positive final message for Startups readers  comments :  “Starting your own business and seeing it go from strength to strength is an incredible sense of achievement. Hopefully, the long-term financial benefits make it all worthwhile.”

Here’s a recap of some of the most useful links from throughout the article:

• Gov.uk Licence Finder
• Gov.uk Food Business Registration
• Safer food, better business
• HACCP guidance

In addition, check out the links below to learn more about relevant industry organisations and events:

• British Coffee Association
• Specialty Coffee Association (UK Chapter)
• Caffe Culture Show
• Coffee Shop Expo
• European Coffee, Tea & Soft Drinks Expo

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Advice and Ideas for UK Small Businesses and SMEs

How to start your own coffee shop

Keep reviewing your coffee shop business plan

Fancy opening your own coffee shop? We explain what you need to know about cash flow, hiring staff and of course, finding the right coffee.

Starting a coffee shop is at once exciting and daunting – there’s a lot to factor in before you even start writing your business plan.

This guide will take you through the main steps of how to start your own coffee shop, with comments from experts in the industry and links to further information.

What should be included in my coffee shop business plan?

The first part of your start-up is always the same: your business plan.

Your coffee shop business plan will look very similar to any other. It should include:

• Your business proposition
• Unique selling point (USP)
• Target customer
• Marketing strategy
• Sources of funding
• Financial forecasts

What’s different with a coffee shop is that you’ll need to talk about what kind of coffee you’re going to use and what’s included in your menu. Is it food or drink that you expect to be your biggest money maker?

Along with the proposition, you should include your business’ purpose. Many businesses now launch with an ethical core. Not only will having your purpose in your business plan keep you on track with fulfilling your goals, but it will also help to attract ethical investors.

You must have these points nailed down before you approach partner companies. “The first questions we ask are, ‘What food are you going to serve? What kind of volume do you want to do?’ Sometimes they haven’t quite got that down on paper,” said Lloyd, founder of takeaway packaging supplier, Catering24 . “They need to work out the portions of food to costings, to then work out what volume they need to do per day to cover their premises or their van rental or pitch space and rental.

“It’s the nitty gritty details that we try and get down to because sometimes we can offer them a container that’s 30p per portion or one that’s 10p per portion. That starts to make the difference between whether the takeaway or coffee shop is actually going to be profitable from day one.

They need to know the cost per unit of everything that it takes – from ingredients all the way through to a stirrer to go with that coffee. It must be all priced in. “I can go to a van on the side of the road and get a £1 coffee from a polystyrene cup,” said Lloyds. “The cheap cup costs 10p and is not very ergonomically friendly. It’s actually got quite good insulating in the cup. If I go for that same quality of coffee in a 15p cup, I can sell it for £1.70 from the same brand, but it’s the perception of value that the customer is getting. Now it’s paper, it has a better fitting lid, you can actually sip out of it without it going over your clothes.”

Your business proposition and USP

Coffee shops are a popular trade and it’ll take ingenuity to stand out. This is where your business proposition and USP come in.

People watching, a popular pastime in cafés, could be illuminating here. “If you find this shop that you like, grab a coffee, sit outside for a few hours and just see how many people will pass,” said Stuart Wilson, founder of Lost Sheep Coffee. Yes, that’s a bit weird. But you can get an idea for them and who your target customer is.”

It’s also wise to know about current and upcoming trends in coffee and beyond. “For me, the next big thing is going to be your speciality coffees and your iced coffees. If I was a coffee shop owner now, I’d be planning for my iced coffee offering to be strong next year,” said Wilson. “All those sorts of things and your alcoholic coffees, like espresso martini. We talked to a few brewers actually about doing coffee-infused drinks, beers and stuff.”

Lloyd has noticed another trend coming from the rise in takeaways: “Afternoon tea boxes are massive at the moment. I Imagine someone starting out at the minute might not think of that first thing. They might think about takeaway coffee, because that’s what the norm is for a coffee shop.”

Décor can bring people into your coffee shop and support your USP. Think palm trees, retro arcade games or neon signs. For the basics, you can keep costs down buying furnishings second hand – it has added bonuses of being sustainable and giving your coffee shop a quirky charm.

Small Business Pro is the ideal tool for you when you’re starting your business. It will help with the heavy lifting of managing customers, taking payments, insurance, finance and HR, plus you’ll get a host of personal wellbeing benefits.

You can find out more about Small Business Pro here .

Where should I should set up my coffee shop?

This will depend on a few things: where you’re based, what units are available to you and what your goals are for the business.

Most will go for a traditional coffee house set-up. This a bricks and mortar café with indoor seating. Finding a location rests on what you want your business to be and where your customers are. Try Rightmove as it can show you spots that could potentially become your coffee shop while sites like Floorplanner will help you visualise where everything will be placed.

The other option is somewhat more mobile. Having a cart, kiosk or van has the advantage of being in a busy area like a train station or bus terminal for a much lower cost. Plus, you can opt for a fixed spot every day or, in the case of the cart or van, choose different spots and hit popular events like festivals. Lost Sheep Coffee started as a micro van back in 2012. Wilson tells us more: “For us, the cheapest way to do our [then] hobby was small, hence why it started with a three-wheeled coffee van. I set the whole thing up for less than £10,000. We were able to get a pitch slap bang in the middle of the high street in Canterbury, which, to this day, people still remember the cart. From a marketing perspective, it was fantastic.”

Why do people go for bricks and mortar coffee shops? “I think to be honest, it’s tradition,” said Wilson. “A lot of people don’t think of kiosks as a proper business. It’s just like a glorified market. Some people want the bricks and mortar, if you will, to feel validated.

“A kiosk doesn’t always bring that for someone. They are becoming a lot more popular now that you’ve got your Costas and your Greggs in the service stations. It has been popularised in the last four or five years.”

How much money will I need?

Start-Up Loans says that it can cost £20,000-£100,000 to start up a coffee shop depending on its size, offering and location.

Though it needn’t be as pricey. “A lot of people these days are taking on affordable units. So actually, they can start becoming a bit more accessible,” said Wilson. “A good selection of people who are starting out as a coffee shop these days are taken on premises that might be rates exempt, basically, because of the current government’s side of things.”

These could have perks like giving you three months free rent. They’re already fitted with water and electricity too. “I’ve got a customer who’s just launching one in Folkstone and she’s pretty much doing it for less than £15,000. It’s a full-size shop,” he added.

There are properties like this in the south east of England, but you should be prioritising areas that you know and like. If you do find such an affordable unit, just ask what your landlord can do for you.

However, it can be done more cheaply if you opt for a kiosk. “That chaos in Canterbury, that is a lot of work still done by me to be honest with you, but it’s still less – more like a £30,000 project” said Wilson. “The shop we had in Ashford was a 750 square foot shop and to kit that out from a shell with everything came in at around £15,000-60,000.”

He added that they’re looking into a bricks and mortar shop and it would cost £100,000 a year just on rent. The kiosk, just around the corner, costs a fraction. It could be worth going for the full shop as they generate more revenue. “You’ve got the kiosk, which you’d take X amount a year, and then your shop should be probably taking more like 700,000x,” said Stu. “You pay more, but you actually end up with a higher revenue stream.” Again, weigh up the costs and see which option works best for you.

As for your overall cash flow, if the rent is 15 per cent more than your projected rates and sales, it’ll be difficult to make a profit. Staff should not exceed 50 per cent of overheads, according to Start Up Loans.

Choosing the right coffee

Now, arguably the most important part of your coffee shop business.

Are you going single origin or a blend? Does the target customer decide the coffee or vice versa? Are you targeting regulars or passing trade?

“The product itself needs to be relevant to the to the person who owns the business, but also the person drinking it,” said James Sweeting, founder of coffee roasters, Lincoln & York . “These tend not to be one off purchases. They have a very high level of repeat client. I’m guessing that 90 per cent are likely repeat visitors.”

He added that you should really know your customer. “I think these days, you tend to think of an artisanal-type coffee shop, with hand-roasted coffee and healthy cake and all that kind of stuff,” said Sweeting. “Of course, it could be a coffee shop in a shopping centre, or it could be in another format that’s not necessarily Metropolitan. That’s why the coffee needs to be relevant.”

He does stress that there should be a ‘high-quality aspiration’, no matter if the coffee is espresso-based, filter or cold brew. “It should probably be a 100 per cent Arabica coffee blend, or singularity, or a blend of Arabica and Robusta beans that will produce a great espresso coffee. Quite often, you do need an element of reverse engineering to do that. Anyone who says otherwise doesn’t really know the full 360 degrees of the coffee business.”

The coffee shouldn’t just reflect you as a business owner, it should also reflect the values and purpose of the business, as discussed earlier. If you’re claiming that you’re ethical, you need to root through your supply chains to make sure they have the same standards as you.

“You’ve got to have an idea of the standards – where it’s grown, some story element. Have you paid a fair price to your supplier? Has the supplier, in turn, paid their fair price to the grower?” said Sweeting. “if you buy something cheap, somebody has possibly been exploited. Can you defend yourself as a business if somebody walked in and said to a coffee shop and asked, ‘Where do you get your coffee from?’ If you can’t at least give an answer, you haven’t done the homework.”

A quick way to spot a supplier or roaster’s standards is to look out for certifications, which they’ll likely display on their website. Fairtrade means that the group of growers has been paid a known price level as well as covering elements of training and origin. Rainforest Alliance is more focused on the environmental management of the growing.

You should ask your supplier how the coffee will be roasted and how it behaves under certain types of roast. “You should ask questions on along those lines and say, ‘Well, what difference does it make if you roast it slowly and roast it dark? What does that do to the taste? And what will my consumer think of that when I make coffee to it with themes like that?’” said Sweeting.

Don’t forget to factor in the freshness of coffee. “There are one or two myths around whether coffee should be freshly roasted or not,” he added. “Well, of course, if you see ‘freshly roasted’ on a pack, well, it was definitely true when the rest of the pack was freshly roasted. By the time the consumer gets it, it might not be the case.

“Now, for a coffee shop, the ideal gestation period is probably two weeks to six weeks. The reason for that is and you could say well, ten days to 30 or 35. If coffee is very fresh, i.e. roasted one day, then consumed the next, the blend itself hasn’t had chance to settle down. When you get it into a grinder, you know the grinding characteristics will be different if you roast today, it’s a day old versus one that’s ten days old.” Ensuring it’s settled for around the same period each time will give your coffee more consistency, giving a consistent taste experience to your regulars.

Finally, there are questions about what certain roasters can offer. Some of the craft roasters can do very small quantities, perhaps up to six kilos. However, other businesses would want to be able to drop off around 20 kilos plus artillery products to make it worthwhile. “There’s a balance between pure coffee freshness and sensible logistics as well,” said Sweeting. “I think a coffee shop probably should be able to get a delivery every fortnight.”

If you’re struggling to commit to one supplier, you can sample a variety to see what their offerings are like. “Another good little way of coming across roasters you might want to work with is setting up subscription services,” said Wilson. “There are so many companies now that will send, say, three bags a month from different speciality coffee roasters from around the country. You could look into setting up a speciality coffee shop. Sign up for one of these for a few months or go old school and pick up the phone and just ask for samples.”

What coffee shop equipment should I be buying?

Now you want to ask yourself what equipment you’ll be buying and whether it will be new or second hand. It’s also important to look at the lifespan or warrantee.

Depending on what you’re offering, this could include:

• Espresso machine – £1,500 to £10,000 to buy. You can also lease for around £5 a day
• Cooking appliances
• Water softener, depending on location
• Coffee bean grinder
• Fridge/freezer
• Toaster/panini press
• WiFi router

It’s not just the purchase you’re thinking about. It’s also what you need to clean your equipment and how costly that’s going to be time-wise. “There are a lot there’s lots of great choices of coffee machines out there. It can be fully automatic, or semi-automatic or fully manual, but maintain them very well. It’s got to be scrupulously clean,” said Sweeting.

Some firms offer hospitality of coffee shop-specific point of sale (POS) systems. Read more at The essential guide to point of sale (POS) systems .

Finding the right suppliers for goods other than coffee is overlooked. Spend some time researching different suppliers, focusing on their story and values as well as their products.

“Try and get an idea of their history, how many years they’ve been trading. You want them to be big enough to support you when you’re starting out,” said Lloyd. “The long-term supply is lots of knowledge. They usually have customer service and salespeople that have been speaking to businesses for decades. Often, they have great ideas.”

Look for positive testimonials and third-party certifications to tell you what your supplier is like. “These are little cues to tell a customer that this is a reputable company, something that they can rely on,” said Lloyd. “They’re doing things properly in terms of sourcing supply. These products come from all over the world, sometimes it’s very difficult to for a café or coffee shop, to know where their products genuinely come from.”

Hiring staff and training

The size and goals of your coffee shop will help you decide which staff members you need to hire and who comes first.

You’ve got baristas and chefs/cooks of course, but your staff could extend to managerial roles, marketing and accounting, to name three. If you’re hiring them, your manager and marketing specialist should be recruited first, according to Rebecca Siciliano, managing director of hospitality recruitment firm, Tiger Recruitment . They’ll help you lay out the ground-level stuff before your café even opens.

It’s a good idea to have barista training yourself, even if you’re not the one making the coffee. But your baristas are incredibly valuable to your business – coffee shop owners often look for somebody who is already trained. However, training can vary, so it’s up to you to ask the right questions. “If it’s a coffee shop [they worked at before], fine.” said Wilson. He would then ask for the name of the coffee shop and look them up on Google and/or TripAdvisor to read the reviews and see pictures of the coffee. “You know, if it’s a greasy spoon or something, and they’ve made a couple of coffees that are frothy, that’s not barista training,” he said. “If they’re working for a well-known coffee shop, and you know they take their training seriously, then great.

“I then say, ‘Have you got any photos of your art?’ With someone who’s a barista who’s proud to be a barista, I guarantee you has photos on their phone. I then say, ‘Can you email it to me?’”

He added that the final thing during interview is getting them on the machine to make a coffee in front of you – the one they’re most comfortable making. “You can see what level of training they’re going to be at straight away,” he said.

If you can’t get hold of staff who are already trained, speak to your coffee roaster. They may offer training themselves or at least be able to give you some reputable names.

Attracting and retaining staff can be a real task across the hospitality industry, so try and offer what perks you can. “You have to offer a little bit more to be able to attract those candidates, like higher pay,” said Siciliano. “Then it’s also some of the other benefits. In fact, there’s one coffee shop we know of where they’ve got one designated day that all staff have been told that they can have the day off, just to acknowledge that they know how hard they’ve been working.” Flexible working is important too, with staff looking for leeway to have days off for important events or to be able to work during the day and have evenings off.

She also recommends posting roles on social media to target people who may already be interested in your brand.

With all this said, you should avoid overstaffing. “I’ve walked into a new café and they’ve got a 15-seat café and they’ve got five people working,” said Wilson. “The biggest, quickest way to kill any new business is to waste all your money on staffing costs. I mean, don’t get me wrong, you want to recruit people, but you’re no good to anyone if you go out of business.”

One way to tackle this is to hire temporary staff for busier periods. “Temporary staff can be ‘dialled up’ and ‘dialled down’ according to demand,” said Novo Constare, co-founder of Indeed Flex . “This makes them invaluable during busy periods when it’s hard to find enough permanent staff. Their flexibility means there’s no requirement to keep using them during quieter periods.

“Having ready access to good temporary staff also gives a coffee shop a defence against staff absences. A big pool of trained, vetted – and above all, available – workers can save the day at short notice if the shop’s regular staff call in sick.”

Legal considerations

This section will be dry but could save you an inordinate amount of hassle later on.

First off, register your business. This can be done as a limited company, as a sole trader or a legal partnership.

> See also: Should I go sole trader, partnership or limited company?

You must register your coffee shop through the government website at least 28 days before opening. It’s free to register and you can’t be refused.

Next, coffee shop licences. If the premises is not already classed as a coffee or a tea shop, you’ll need to get planning permission. Coffee shops will mostly be classed as an A3 premises which permit food and non-alcoholic beverages to be consumed on the premises. Find out what need with gov.uk’s licence finder .

There’s a lot of health and safety paperwork to get through. Visit the Food Standards Agency (FSA) for more information about your business’ needs.

The right insurance is crucial and there are a few different types.

Public liability insurance: Cover for claims made against you from employees or clients if something happens to them or their property is damaged as a result of your work. It can be an event which took place on your premises or off-site

Employers’ liability insurance: Protects you against claims for accidents involving staff and customers and covers issues with appliances and other breakages.

Deterioration of stock insurance: Covers damage to goods stored in specified cold storage spaces, which can happen because of a change in temperature caused by a breakdown of refrigeration equipment or accidental damage to it.

Contents insurance: Covers the contents of your coffee shop if they’re lost, damaged or stolen, including fixtures, fittings and your employees’ personal possessions.

Business interruption insurance: Could cover Covid-like events as well as weather-based events like flooding.

Different insurers will have different core packages and add-ons. Remember that, if applicable, your business insurance will need to cover takeaways as well as your delivery drivers. This also applies to alcoholic takeaway drinks and the provision of late-night refreshments in your establishment.

A couple of extras, should you need them. Get an entertainment license if you plan to play music in your caff. See PRS for more .

Finally, know about your staff’s employment rights – this includes working hours, holiday and other leave.

Marketing your coffee shop

Let’s start off with your branding – make sure it’s consistent online and offline. Having an instantly recognisable logo that you can put on all of your marketing material will help customers remember you.

For your offline marketing, this could be well-placed signage like bus stop advertising near your site. You’ve likely seen something similar with fast food restaurants who have signs with their logo and an arrow pointing towards their nearest restaurant.

Entice locals and passing trade into your shop with free samples of cake (Covid restrictions apply at time of writing). Drive more brand loyalty by joining a food event or hosting a coffee making/bakery classes. This can be in-person or online. Give participants an exclusive discount on their next coffee and cake or your in-store products.

Of course, it’s essential to establish regulars – they’re a great source of word-of-mouth advertising too. Treat them well by getting to know them and learning their regular order. Try getting in contact with local groups such as parent and toddler clubs or a nearby sports team – you can look at meetup websites for this – and offer them a regular space at quieter time to build up that customer base, making yourself the go-to for the locals. Having discounts and deals for quieter times and a loyalty scheme for regulars will drive footfall.

As for your online offering, you really need to consider having a website and being on at least one social media platform. This is especially true if you’re in the city and have a lot of competition. An easy starting point is getting on Google My Business. This is the widget you see when you type something like ‘coffee shops near me’ into the search engine. It includes your opening hours, images of your café and customer reviews.

Make sure you have a user-friendly and detailed website for customers to visit. They can find out more about you and your business story as well as your menu and info on upcoming events. We’ve got loads of guides to building a website , but here’s one tip: remember your keywords. This is what people will be searching when they’re trying to find businesses like yours. For example, include ‘afternoon tea’ and ‘high tea’ if that’s one of your main draws.

Take beautiful pictures of your food and drink for your website and social media. Customers will get a better sense of what you’re offering, and pictures may tempt them into coming to your café. Driving loyalty is important online too – you can achieve this through your newsletter. Offer an exclusive discount off their first booking or order when they sign up.

Plan for bigger events when your coffee shop will be busy. “They need to be looking ahead to Christmas. Big style,” said Lloyd. “This Christmas will be the biggest hospitality boom we predict for years. You need to be looking to Christmas and what’s going to make you unique.” He suggests speciality coffees like gingerbread lattes or other special syrups.

“We do our own Christmas cups for the independents. They can then play a massive part in the café’s own marketing.”

He warns of a ‘humongous drop in January’. “You’ve got to make it really work October, November, December. Then cash off, have a good Christmas. February and March will be when it starts to pick back up again.”

So, is opening a new coffee shop right for me?

As you can see, setting up a café is quite a process but don’t let that put you off if you believe in your idea.

Reading industry magazines like Caffeine and going to coffee events with other baristas and roasters will give you an introduction to the community. If you’re still unsure, try working in someone else’s coffee shop for a few days to gauge if it’s something you could do long-term.

For a transition into the coffee shop world, you could open a franchise such as Costa instead. Read Buying a franchise: the key considerations to find out more.

Trade Shows

Food & drink trade shows for coffee shop owners, further reading.

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13 Tips to Open a Successful Coffee Shop

Candice Landau

12 min. read

Updated May 10, 2024

Free Download:  Sample Coffee Shop Business Plan Templates

Worldwide, experts estimate that people drink about 2.5 billion cups of coffee a day. Sales in the ready-to-drink market—which includes coffee shops—are forecast to grow by 67 percent between now and 2022.

Additionally, coffee and other ready-to-drink shops show incredible resilience in volatile markets, helping to eliminate some of the uncertainty associated with small business ownership.

If you’ve been thinking of combining your love of coffee with your entrepreneurial spirit, you may want to open a coffee shop.

• What You Need to Open a Coffee Shop

Aside from a love of that sweet java, you’ll want to get a few things in order to get your shop up and running. To help with this, Jack Wilson, owner of Radio Coffee and Beer in Austin, Texas, and Marc Renson, owner of Ambition Bistro in Schenectady, New York, stepped away from brewing and serving to offer 13 tips to prospective owners. Here’s what they recommend you consider when starting a coffee shop:

• Write a business plan
• Find the right location
• Develop a floor plan
• Hire an accountant
• Find local funding options
• Save money for your personal expenses
• Compare prices and quality on everything
• Network with lenders and other coffee makers
• Develop your marketing plan
• Focus on the Exterior
• Remain positive
• Hire slowly
• Set high standards

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• 1. Write a business plan for your coffee shop

One of the most vital steps you’ll take toward starting your coffee shop is to write a business plan. This document spells out:

• What your business is and who it serves
• How it will be profitable
• Your target market (primary customer demographics)
• Your competitors
• Sales and revenue projections
• Milestones and goals

Keep your business plan lean

Before you dive into creating a traditional, long-form business plan, we recommend creating a one-page pitch. This will allow you to quickly validate your business idea and get a good sense of who your market is, how you’re going to reach them, and find ways to differentiate yourself from your competitors. Will you serve pour-overs exclusively? Will you only use high-end coffee grinders and bean varieties? Will you include baked goods on your menu as well?

Similar to a thorough executive summary, this one-page pitch or plan  is a faster, more efficient way to plan your business.

Browse our free coffee shop sample business plans

Need help getting started? Check out our business plan templates for guidance. They’re free real-world examples for you to work from and are available to download and edit as Word documents. Whether you’re starting a little coffee and internet café or a coffee house bistro, there’s a business plan template—a sample business plan—to suit your coffee shop needs.

Coffee Kiosk Business Plan

Read how The Daily Perc opened drive-thru and mobile coffee stands, serving coffee drinks and other beverages to their target market: daily commuters and captive consumers.

Coffeehouse Business Plan

This sample business plan describes how Dark Roast Java attracted a diverse clientele with its Mediterranean art glass decor.

Internet Cafe Business Plan

The JavaNet Internet Cafe was a true visionary business sample plan when it was written, and with most coffee houses adopting some form of this plan, it’s obvious that it was an idea ahead of its time.

Cafe Bistro Coffeehouse Business Plan

The Watertower Cafe sample business plan describes how the cafe will establish itself as a “destination” of choice to the many residents of the greater Atlanta metropolitan area, as well as numerous out-of-town visitors by providing affordable high-quality food, coffee-based products, and entertainment.

Coffee Roaster Business Plan

Beanisimo Coffee is a startup coffee roaster in Salem, Oregon. Founder Frank Jones aims to bring old-world Italian traditions and recipes to meet the market need for premium coffees. His target market is coffee houses, restaurants, and grocery stores.

The key to making a sample business plan useful is to take the time to modify it so it’s right for your business. A lot of the benefit of creating a business plan is in the process of thinking through each part of the plan. Not sure if you need a plan? Check out this article on reasons why having a business plan is important.

• 2. Find the best location for your coffee shop

To be successful, you need the right location for your coffee shop. You want something that fits the following parameters:

• Centrally located and easy to access
• Highly visible and experiences consistent foot traffic
• A space that fits your vision

Jack Wilson, the owner of Radio Coffee and Beer, warns that finding this dream spot won’t happen overnight.

His team scoured city after city, scouting each location, even going so far as to count pedestrian traffic by hand. He was looking for a former restaurant space, so he didn’t have to remodel everything from scratch. Finally, one day when he dropped his keys on the sidewalk he noticed a tiny “for sale” sign in a former tavern window. After months of searching, he’d found his spot.

Keep in mind that effective restaurant spaces are highly sought after and difficult to find. It may take a while to find just the right spot, but for a business type that benefits from ease of access and casual traffic, it’s worth taking your time to find the right spot.

• 3. Create a floor plan

A solid and welcoming floor plan is vital for a coffee shop. You want customers to have space to form a line, employees to have the materials they need within reach for quick access and a comfortable seating area. As with finding a location, it will take some time to produce a good floor plan.

According to Wilson you should, “walk yourself through every scenario you can think of,” he says. “If you’re making coffee, what needs to be near you? If you’re a customer, what do you want in a seating area? Visualize everything you can and start putting those ideas down on paper.”

Design your cafe floor plan online

Here are a few free websites you can use to kickstart your planning process. Once you’ve drawn up an initial sketch on paper, get online and make it a reality.

Autodesk Homestyler (free): This is probably my favorite option. You can either start designing your floor from scratch or choose from a gallery of designs to personalize with your own look and feel. In fact, there’s even an option to experiment with real-world products and brands. When you’re done, you’ll be able to share the design as part of your planning process. It can even be used as part of your pitch to potential investors.

Floorplanner: This software is clean and simple to use, with plenty of drag-and-drop furniture and other items to fill out your design. It allows for both 2-D and 3-D visualization of your designs and can be easily printed out if needed.

Gliffy: While it may not be the go-to floor plan solution, I’ve included Gliffy on this list anyway, due to it being a well-known diagram and flowchart application. If you’ve used it before, you may want to give it a try to minimize the learning curve and jump right into designing. While you’re at it, you can even plot out your SWOT analysis.

• 4. Hire an accountant

One of the best pieces of advice Wilson says he can offer a new coffee shop owner is to turn your books over to an accountant. Aside from taking valuable time away from the business, having a numbers expert works in your favor.

“You won’t be as hard on yourself as you sometimes might need to be,” Wilson says. “Plus, you will make assumptions that an accountant wouldn’t make.”

In reality, your accountant is really your small business consultant. Make sure you find someone who believes in you and can help accomplish your business goals. If you’re unable to hire an accountant right away, you can also look to an online option like QuickBooks . The benefit of online accounting software is that you’ll have direct visibility into the day-to-day finances of your business.

Both are great options for managing your finances, and the decision fully depends on your situation and level of expertise.

• 5. Attain funding from local sources

Finding startup funds for a coffee shop can be difficult. Renson suggests talking with friends and family about investing in your coffee shop first. Present a solid business plan to them and ask them to invest in your business.

If funding via your family isn’t an option, or if you need more cash than your family can provide, Renson suggests looking into local loan options. In some cases, cities offer business assistance programs to offset costs. Consider an SBA-backed loan or see if a local bank or credit union is an option. Keep in mind that any bank loan will require you to show evidence that your business has some traction already. They want to know you’re a reasonable risk. So if you’re not up and running yet, there are other options for bootstrapping your business that you might consider.

• 6. Save money for your personal expenses

When identifying startup costs , don’t forget that you need to consider your own personal expenses alongside your business. All of your time and energy will be devoted to your new business, which potentially won’t be profitable for around six-months, even if you start bringing in revenue immediately.

So, plan ahead. Renson suggests making sure you set aside enough money to cover your personal expenses for at least six months if not longer. You’ll need to decide whether it’s possible to run your coffee shop while working another job or side gig or if you’ll be able to solely focus on your new business.

You will also want to understand the concept of cash flow . Considering that over half of the businesses that fail are profitable on paper when they fail, you’ll want to be sure you understand how much cash you’ll need on hand.

• 7. Shop around for everything

While you’re in the planning and funding stages and working through your finances,  keep a list or spreadsheet of all the startup expenses you’re looking at so you can compare prices.

Before you buy, try to get at least two price quotes for every item so you’re not losing money on basic necessities or recurring costs. Use the internet to your advantage and look for the best prices on everything from comfy chairs to espresso machines.

• 8. Network your heart out

Having a hot location and brewing superior coffee will only get you so far. You need to network to maintain a connection to the area and to attract more customers. Look into joining the local chamber of commerce, a business association, or partner with a local charity. Be visible in your local community and get dedicated partners long before you open your doors.

9. Develop your marketing plan — before you open

If you start marketing the day you open, you’re already behind. On opening day , you want people excited to come in. You’ll want to develop your marketing strategy and begin advertising to potential customers several months before opening.

Affordable marketing options to consider:

• Partner with other local businesses by providing free coffee in exchange for on-site advertising.
• Leverage social media as direct communication with your customers.
• Participate in local events, providing free specialty coffee samples leading up to your grand opening.
• Do a small direct mail or email campaign that sends coupons to local residents or businesses.
• Call everyone, including the media, to tell them about your plans to open the shop.

10. Don’t just focus on the interior of the building

It’s likely that you’ll stress over every little detail of your shop, from what paintings to hang on the wall to the point of sale system (POS System) you’ll use. That being said, it can be very easy to ignore the exterior of your shop or coffee cart which directly contrasts with choosing a location with heavy foot traffic.

According to Wilson, you’ll want to “pay attention to the landscaping, signage, and exterior appearance because that’s the first thing people see.” Some people decide whether or not to come in based on their first impression of the building, so make it count.

By creating a clean and unique exterior, you’ll begin to create a buzz in your community. People will start to wonder, who is setting up shop there? Every little thing you can do to attract attention to your coffee shop can serve as a marketing tool.

• 11. Have a positive attitude

Like every business, you’ll face challenges to get your shop off the ground. Renson says keeping a positive attitude when things aren’t going your way is a must. Not only does it benefit your outlook, but it showcases strong leadership to your employees and a welcoming presence for customers.

Fake it if you have to. If you get in the habit of keeping an optimistic attitude, even if it’s less than genuine to start, you’ll eventually teach yourself to stay upbeat and will keep those around you optimistic and ready to work.

• 12. Hire slowly

You need help manning the register, waiting on customers, and making drinks, but don’t hire too many people too fast. Renson suggests hiring a few friends, or neighbors who will volunteer to help you out for the first few weeks. Slowly, bring on staff as needed.

Hiring trusted staff can be tough. No matter how well someone does in an interview, you don’t know how well he or she fits until they’re on the floor. Keep a close eye on the register, Renson suggests, and don’t be afraid to let people go if they are hurting the business.

• 13. Set high standards

It’s okay to set high standards for your employees and overall business. That’s not to say that you should micromanage your employees. You’ll want to focus on effectively training your staff at the start and building an effective workflow that encourages collaboration and high-quality work. Their ability to make good coffee drinks quickly will have an impact on customer loyalty and satisfaction.

Starting an independent coffee shop is hard work, but that doesn’t mean it has to be a long-term struggle. If you focus on establishing these core pieces while developing your coffee shop business plan, you’ll set yourself up for success early on.

Candice Landau is a marketing consultant with a background in web design and copywriting. She specializes in content strategy, copywriting, website design, and digital marketing for a wide-range of clients including digital marketing agencies and nonprofits.

Table of Contents

• 9. Develop your marketing plan — before you open
• 10. Don’t just focus on the interior of the building

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The Sunday Read: ‘Why Did This Guy Put a Song About Me on Spotify?’

The answer involves a remarkable — and lucrative, and ridiculous — scheme to game the way we find music today..

By Brett Martin

Read by Eric Jason Martin

Produced by Adrienne Hurst and Aaron Esposito

Narration produced by Tanya Pérez and Krish Seenivasan

Edited by John Woo

Original music by Aaron Esposito

Engineered by Sophia Lanman and Devin Murphy

Listen and follow The Daily Apple Podcasts | Spotify

Have you heard the song “Brett Martin, You a Nice Man, Yes”?

Probably not. On Spotify, “Brett Martin, You a Nice Man, Yes” has not yet accumulated enough streams to even register a tally. Even Brett Martin, a contributing writer for The New York Times Magazine and the titular Nice Man, didn’t hear the 1 minute 14 second song until last summer, a full 11 years after it was uploaded by an artist credited as Papa Razzi and the Photogs.

When Martin stumbled on “Brett Martin, You a Nice Man, Yes,” he naturally assumed it was about a different, more famous Brett Martin: perhaps Brett Martin, the left-handed reliever who until recently played for the Texas Rangers; or Brett Martin, the legendary Australian squash player; or even Clara Brett Martin, the Canadian who in 1897 became the British Empire’s first female lawyer. Only when the singer began referencing details of stories that he made for public radio’s “This American Life” almost 20 years ago did he realize the song was actually about him. The song ended, “I really like you/Will you be my friend?/Will you call me on the phone?” Then it gave a phone number, with a New Hampshire area code.

So, he called.

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Additional production for The Sunday Read was contributed by Isabella Anderson, Anna Diamond, Sarah Diamond, Elena Hecht, Emma Kehlbeck, Tanya Pérez, Frannie Carr Toth and Krish Seenivasan.

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