coffee shop business plan template uk

How to Write a Coffee Shop Business Plan

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

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

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

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

6 things to consider before  writing your coffee shop business plan

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

Make sure you can answer each of the following questions:

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

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

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

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

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

3. Where will your coffee shop be located?

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

4. What is your venue type?

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

5. What are your business goals?

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

6. What are your credentials and experience?

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

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

5 Tips for Writing a Coffee Shop Business Plan

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

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

Coffee Shop Business Plan Template

1. table of contents.

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

2. Executive Summary

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

3. Business Overview

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

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

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

4. Business Description

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

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

Here’s what to include in your business description:

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

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

Mission statement

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

Short- and long-term goals

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

Menu and services

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

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

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

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

Business description summary

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

5. The Marketplace

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

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

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

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

Market segment

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

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

Market Trends

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

Competition

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

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

Opportunities

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

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

Marketplace summary

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

6. Marketing

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

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

Positioning

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

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

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

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

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

Online promotion

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

Traditional promotion

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

Marketing summary

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

7. Business Operations

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

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

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

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

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

Business operations summary

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

8. Financials

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

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

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

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

9. Coffee Shop Business Plan Summary

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

Make sure to include the following sections:

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

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

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

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Coffee Shop Business Plan

If you’re passionate about great tasting coffee and love serving people, then opening a coffee shop could be a great business venture for you. The coffee industry in the UK has grown dramatically over recent years, and shows no signs of slowing down, representing a great opportunity for coffee-loving entrepreneurs.

In the UK, we drink around 95 million cups of coffee every day , and café culture is big on the high street. 80% of people who visit coffee shops go on a weekly basis, and 16% get their caffeine fix on a daily basis.

Before you dive in and start dreaming about your coffee shop empire, the first step is to create a coffee shop business plan which will get you the funding and support you need to see your café business flourish.

We’ll guide you through each step of creating your own business plan, from planning your sales and marketing strategy, to understanding your ideal customer, to identifying your competitors. As a business owner there’s a lot to take on, but we’ll walk you through everything you need to know.

• Is opening a coffee shop for you?

How much does it cost to open a coffee shop in the UK?

What's included in our coffee shop business plan.

• Your free sample coffee shop business plan template

Summary and recap

Is opening a coffee shop right for you.

As we know, coffee shops are part of a growing market and represent an exciting opportunity for coffee shop owners. The coffee shop market in the UK is expected to hit a £15 billion turnover by 2025.

But the first question you need to ask yourself is: Is this the right business for me?

A business plan will give you clarity on your competitors and help you reach your ideal customers, and show how you can run a successful coffee shop.

You’ll need to consider things like:

• How many major coffee shop brands are in the area (Pret A Manger, Costa etc.)
• How many independent coffee shops are based nearby
• Any existing brand loyalty

Your start-up costs will depend on things like the kind of equipment you need to buy, how many staff you need and the size of your premises. Start-up costs generally run between £20,000 to £100,000 in the UK.

This may sound scary, but there are ways that you can save money. Leasing and buying second hand equipment is just one simple way to prevent overspending.

A business plan for your coffee shop will help you anticipate your costs and budget appropriately. We’ll help you work out how to raise capital for your business and take into account your current financial situation.

We’ll run through every step you’ll need to take to open your coffee shop. Remember, if you’re planning to secure funds from a bank it’s essential that the business plan for your coffee shop is as thorough as possible.

Included within our coffee shop business plan template, you’ll receive:

• A fully completed coffee shop business plan
• Break-even analysis (12-month analysis)
• Complete business plan guide
• Business plan template (.doc and .PDF)
• Financial planning wizard

Plus 25 ways to market your coffee shop for free!

Download now for only £29.95

Below, we’ll walk you through an example of a coffee shop business plan. Remember, this is only a guide. You should take the time to write a business plan for your coffee shop in much more detail.

When it comes to your café business, we really believe that you can’t over plan for your enterprise

Step 1: Executive summary

This is a short, snappy summary that grabs the readers attention and acts as your business pitch. You want a concise overview, not a novella. Investors hear hundreds of these pitches, so you’ll need to think about how to make yours stand out.

Three top tips for writing your executive summary:

• Keep it short and sweet. Under two pages is best
• Stick to positive, upbeat language
• Read it aloud to a friend. Does it flow well, and do they understand what you’re trying to say?

Use your executive summary as a chance to shout about what a great opportunity your coffee shop is and what sets you apart.

Step 2: Company overview

A company overview (or company summary) gives you the chance to introduce yourself, your business and any key stakeholders. This “meet and greet” will tell your readers who you are, what you do, and who your customers are.

Just like your executive summary, this should be short and punchy. Your reader needs to quickly grasp who you are and what you do.

Five key things to add to your company overview include:

• Company history, when your business started and why
• Key objectives and goals
• Your management team
• Your ideal customer or target market
• Basic company information, like the name and location

Another top tip for writing a company overview is to put yourself in your reader’s shoes: Why should they put their money into your coffee shop?

To answer this question, focus on areas you know will interest your potential investors.

You should consider:

• Your local community and local market
• Your unique selling point, what separates you from other coffeehouses?
• Opportunities for expansion (venue hire, loyalty programs, food options, etc)

Use this section of your business plan to show what you want to accomplish, but remember to keep it high-level. Don’t overload your reader with too many details.

Feel overwhelmed? Not sure where to start? Panic not. Download our coffee shop business plan for instant access.

Instant download for £29.95

Step 3: Management and key personnel

No man or woman is an island, and you’ll need the support of a great team to help make your coffee shop business a success. In this section you’ll detail your management team, staff and resources.

Three key items to include in your management and key personnel section:

• The ownership structure. Is it just you, a partnership or a corporation?
• Your management team. Who are they? What are their roles? And what’s their experience?
• Human resources. How are you going to find new staff once you’re up and running?

One more thing, it’s unlikely that your team will be working for free, so don’t forget to include details on things like salaries, benefits and pensions.

Step 4: External analysis (market research)

Before launching any business it’s vital that you know your market. This section will help you understand the threats and opportunities in your market.

You’ll need to get a grip on your competitors, your ideal customer and whether the market can support and sustain your business.

Let’s take a look at your ideal clients first.

Who’s going to visit your coffee shop?

Sketch out your target customer. Are they parents meeting after the local school run? Or busy office workers grabbing a quick espresso on the way to work? You need to know whose needs you are serving so that you can make a targeted offer.

Think about:

• How will you attract new customers?
• How will you keep them coming back?
• What makes you better than your competitors?
• How much will your coffee cost?

Next, you need to scope out the competition…

How many cafés are near you?

There are literally thousands of coffee shops across the country. As of 2019, there were 10,604 non-specialist outlets in the UK , up by 292 shops from 2018. So how will you stand out from your competitors?

• Who’s selling coffee in your area, and what do you know about them?
• How many coffee shops are close by? And how close are they?
• What is the average cost of a cup of coffee in your town, city or village?
• Is it easy to get to your coffee shop? Is there a lot of customer footfall nearby?

One top tip for writing this section of your business plan is to put yourself in your customer’s shoes. What do they need from your business? What is the problem that needs to be solved (e.g. they need a hot drink to set them up for the day). How do you solve that problem better than your competitors?

Step 5: Your business objectives

You need to think short-term and long-term here. Where do you want to be in a month or six months? A year or five years? And how will you get there?

In this section, list the specific steps you’ll need to take to achieve your objectives. You can keep track of your goals and objectives using the S.M.A.R.T criteria.

S.M.A.R.T goals are:

To help you determine your business objectives, here are some questions to ask yourself:

• Is my business targeting a niche market, or a broad one?
• What revenues do I expect to see in a year, or five years?
• How many customers should I have in six months?
• How will I build my market presence?

Demonstrate how you will woo clients to your coffee shop and establish a loyal customer base.

Step 6: Services, coffee equipment and amenities

Deciding what equipment you need to open your coffee shop will give your investors a clear idea of how much funding you need to get started.

Some of the initial things on your shopping list will include:

• Coffee machines, (like an espresso machine and a coffee roaster) fridges and dishwashers
• Coffee bean supplies, and any foods you make in-house or buy-in.
• Shelves and storage containers
• Seating and tables

The key here is to be realistic, and not overspend. Consider the size of your market and the needs of your customers before buying anything.

Additional services and amenities to think about:

• Takeaway services
• Delivery services

Step 7: Financial forecasting and financial projections.

Let’s get real here, your backers want to see cold, hard numbers, and feel confident that they will get a return on their investment. Spelling out your financial future can be tricky, but it’s an essential part of your business plan.

You’ll need to provide:

• Sales forecast
• Expense budget
• Cash-flow statement

When it comes to expenses, you’ll need to budget for things like:

• Purchase estimations
• Hiring costs
• Building/construction work

Don’t limit yourself to a single source of income. Obviously you’ll make money from selling your coffee, but consider how you can diversify your income.

Other forms of income from your coffee business could include:

• Selling food
• Renting out your space to groups
• Hosting local events

Remember, your financial forecast needs to be well-informed and attainable. But it doesn’t need to be 100% accurate. Things will likely change over the next few years and you’ll need to adapt. This plan will give your readers an idea of what you expect to happen in the future.

We’ve taken all of the hard work out of planning your finances for your coffee shop.

Download your coffee business plan template instantly below.

Instant download

Step 8: Funding

Now, you need to consider how you will secure funding for your business idea. Where is the money for your business coming from?

Are you funding your coffee shop with your own cash, or is the money coming from outside investment? Your backers will need to know exactly where the cash will come from, and how much you still need to raise.

You might already have funding in the form of:

• Personal loans
• Partners or sponsors
• Family/friends

You need to be clear to your investors about how much money you need, now and in the future. Detail how you’ll use any investment, such as paying for supplies or equipment, paying debts or hiring staff.

You’ll also need to balance your funding request between making sure you have enough to survive, but not more than is necessary. Ask for what you need, but don’t get greedy!

Your free sample coffee shop business plan

If you need an example of how a coffee business plan might look, we’ve pulled together a small Word template that you can use to get you started for your coffee business plan outline.

Included in this template, you’ll get:

• An example of your executive summary
• Products/services on offer
• Staff and management structure

Download.doc here

Launching your own business can be a nerve racking venture. The coffee shop market is a crowded place, but the good news for new business owners is that people love an independent coffee shop. Research has found that 7,022 independent cafés operate in the UK, with a value of around £2.4 billion.

By creating a well-thought out business plan you will get your business off the ground and help you to anticipate any future problems. A succinct business plan will show potential backers that you’re a solid investment and set you up for future success.

Download the Software

Full coffee shop business plan

Customer Testimonials

“I needed to put together a long-term business plan to cover all aspects of my new venture. I read a lot of books and attended courses, but I was struggling. Then I came across Teneric and suddenly it was all there in a format I could use and in terminology I could understand. After that, it was plain sailing to the Business Department at my local HSBC Bank”

Jill Shilcock, Managing Director, SEAS Education Advisory Service Limited.

“I wanted ideas for the type of information that needed covering in a business plan, and this gave me a template for the document I submitted to the bank. The business loan we were after was approved. If you have never written a business plan before, then I would recommend your product. It was very straightforward and offered some good advice.”

Gordon Mitchell, UK

“I needed a business plan quickly. The template was easy to use, just fill in the blanks on the wizard and refer to the help guide if I wasn't sure. Your system is good value, and I would recommend them to everyone needing a plan. Attached is the basic plan I threw together in a day for the bank. They specifically wanted cash flow projections, and the Excel spreadsheets were really what I was after from your product.”

John Waterhouse, UK

• Restaurant Website Builder

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

What is A Coffee Shop Business Plan?

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

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

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

1. Clear Vision and Objectives

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

2. Financial Planning

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

3. Operational Efficiency

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

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

1. Executive Summary

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

What should you cover in an Executive Summary?

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

2. Coffee Shop Business Description

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

What should you cover in the Coffee Shop Description section?

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

3. Market Analysis

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

What should you cover in this section?

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

4. Organization and Management

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

What should you cover in the Organization and Management Plan?

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

5. Sample Menu

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

What should you consider when creating a Sample Menu?

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

6. Marketing Plan

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

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

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

7. Operations Plan

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

What Operational Issues should you address in your Business Plan?

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

8. Financial Plan

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

How Much Does It Cost to Start a Coffee Shop?

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

How Many Ways to Fund Your Coffee Shop?

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

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

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

9. Financial Projections

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

Break-even analysis:

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

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

Projected profit and loss statement:

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

Cash flow analysis:

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

Coffee Shop Business Plan Template

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

2. Description of the Coffee Shop

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

3. Menu Offer

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

4. Market and Competition Analysis

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

5. Investment Plan (Detailed Cost Analysis)

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

6. Financial Forecast

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

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

8. Marketing Plan

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

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

Tips For Writing a Business Plan For a Coffee Shop

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

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

Frequently Asked Questions

1. how profitable is owning a coffee shop.

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

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

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

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

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

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

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

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

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

Related Coffee Shop Resources

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

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

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A Sample Coffee Shop Business Plan Template for UK

By: Author Tony Martins Ajaero

A coffee shop, coffee café, or coffee bar is a small, informal restaurant where coffee and light refreshments such as snacks, sandwiches, muffins, fruit, or pastries are served to customers. It is also a place where coffee lovers meet to network and socialize. Please note that coffee shops are part of the specialty eatery industry, which also includes outlets specializing in products such as bagels, donuts, frozen yogurt, and ice cream.

Reports made available by Allegra World Coffee Portal’s market-leading report on the UK café industry revealed that the total UK coffee shop market is valued at £10.1bn across 25,483 outlets. The total UK branded coffee chain market is now valued at £4.4bn having recovered to around 87 percent of its pre-pandemic value.

Steps on How to Write a Coffee Shop Business Plan

Executive summary.

James Salford® Coffee Shop, Ltd. is a first-class coffee shop that will operate world-class coffee shops across major cities in the United Kingdom with her headquarters in the heart of London.

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James Salford® Coffee Shop, Ltd. will operate our coffee shop in a centrally located facility with a capacity to accommodate 50 people per time with enough parking space. James Salford is the founder and CEO of James Salford® Coffee Shop, Ltd.

Company Profile

A. our products and services.

James Salford® Coffee Shop, Ltd. will be involved in the sale of;

• Coffee beverages
• Drinks and water.

Our products are designed to give our customers all the satisfaction and fulfillment they need from a coffee shop.

b. Nature of the Business

Our coffee shop will operate with a business-to-consumer model.

c. The Industry

James Salford® Coffee Shop, Ltd. will operate in the cafes & coffee shops industry.

d. Mission Statement

Our mission is to establish a standard coffee shop business that will make available different types of coffee in a conducive environment that is specifically designed for socializing and networking.

e. Vision Statement

Our vision is to establish a coffee shop that will become the number one choice in and around our coffee shop locations.

f. Our Tagline (Slogan)

James Salford® Coffee Shop, Ltd. – James Salford® Coffee Shop, Ltd., The Melting Pot for Coffee Lovers!

g. Legal Structure of the Business ((LTD or Ltd), PLC, LLP)

James Salford® Coffee Shop, Ltd. will be formed as a Private Limited Company (LTD).

h. Our Organizational Structure

• Chief Executive Officer (Owner)
• Accountant (Cashier)
• Baristas, Waiters, and Waitresses
• Security Guard

i. Ownership/Shareholder Structure and Board Members

• James Salford (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Dennis Wembley (Board Member) 18 Percent Shares
• John Kingsley (Board Member) 10 Percent Shares
• Henry Peter (Board Member) 10 Percent Shares
• Maggie Benson (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal location for a coffee shop business
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Access to varieties of coffee supplies
• Excellent customer testimonials.
• A reliable and efficient method of preparing coffee
• Safe and secured facility.

b. Weakness

• Financial Constraints
• A new business that will be competing with well-established coffee shops and other bars that retail coffee.
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• A rise in the number of people who want to socialize after the prolonged covid19 lockdown and coffee shop provides such an opportunity
• Online market, new services, new technology, and of course the opening of new markets.

i. How Big is the Industry?

The cafes & coffee shops industry is a big and thriving industry. The total UK coffee shop market is valued at £10.1bn across 25,483 outlets.

ii. Is the Industry Growing or Declining?

The coffee shop line of business is constantly growing. It might interest you to note that the cafes & coffee shops in the UK will grow at the rate of 42.8 percent in 2023.

iii. What are the Future Trends in the Industry

The future trends when it comes to the coffee shop business will revolve around technology. Software that is meant to predict what customers want, online stores, and deliveries will come forward.

iv. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the coffee shop business.

v. Can You Sell a Franchise of your Business in the Future?

James Salford® Coffee Shop, Ltd. has plans to sell franchises in the nearest future and we will target major cities with thriving coffee markets in the United Kingdom.

• The arrival of a new coffee shop business within our market space
• Unfavorable government policy and regulations.
• Steady wage expenses
• Economic uncertainty
• Liability problems
• The Food Standards Agency (FSA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

i. Who are the Major Competitors?

• Costa Coffee
• Tina We Salute You
• Relish, Foundry Court
• Red Roaster
• Dose Espresso
• Kilimanjaro
• Roasters Coffee
• The Apple Tree
• Coffee Aroma
• Monmouth Coffee
• Society Café – Oxford
• Laynes Espresso – Leeds
• Boo Boo Coffee – Birmingham
• Origin Coffee Roasters – Porthleven, Cornwall
• Foxes Café Lounge – Carlisle, Cumbria
• Bold Street Coffee – Liverpool
• The Scandinavian Coffee Pod – Cheltenham
• Prufrock Café – London
• Wayland’s Yard – Worcester
• Bould Brothers Coffee – Cambridge

ii. Is There a Franchise for Coffee Shop Business?

• Really Awesome Coffee
• Krispy Kreme
• Esquires Coffee
• Coffee-Bike

iii. Are There Policies, Regulations, or Zoning Laws Affecting Coffee Shop Business?

Yes, there are regulations and zoning laws for coffee shops in the UK. Please note that the Food Standards Agency (FSA) is responsible for food safety and hygiene in England, Wales, and Northern Ireland. FSA is a non-ministerial department, supported by 7 agencies and public bodies.

Under the Food Safety Act, 1990 and the General Food Law Regulation 178/2002 you are responsible for ensuring that the food customers eat is safe and the quality is what they expect. This means you should understand exactly what foods can cause problems.

It is important to also state that in the United Kingdom, the basic food law is intended to assure consumers that foods are pure and wholesome, safe to eat, and produced under sanitary conditions. Generally, food law prohibits the importation and distribution of food products that are adulterated, or have labels that are false or misleading in any context.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market comprises adults above 18 years old who have the finance to purchase coffee drinks from us.

ii. Level of Educational

We don’t have any restrictions on the level of education of those who we are ready to welcome to our coffee shop.

iii. Income Level

There is no cap on the income level of those that will buy coffee drinks from us.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that will purchse coffee drinks from us.

v. Language

There is no restriction when it comes to the language spoken by the people that will purchase coffee drinks from us.

vi. Geographical Location

Anybody from any geographical location is free to buy and drink our coffee.

vii. Lifestyle

James Salford® Coffee Shop, Ltd. will not restrict any customer from purchasing coffee drinks from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Deliberately Brand Our Shop.
• Tap Into Text Marketing.
• Make Use of Bill Boards.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with players in the key industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, James Salford® Coffee Shop, Ltd. will make sure it covers profits, insurance, premium, license, economy or value, and full package. All our pricing strategies will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the event and party planning industry, and freelancers to help refer customers to us.

James Salford® Coffee Shop, Ltd. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need supplies such as coffee, sugar, milk, teacups, and straws means that James Salford® Coffee Shop, Ltd. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

James Salford® Coffee Shop, Ltd. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock at hand.)

c. Payment Options for Customers

Here are the payment options that James Salford® Coffee Shop, Ltd. will make available to her clients;

• Payment with cash
• Payment via credit cards
• Payment via check
• Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At James Salford® Coffee Shop, Ltd., our customers are our top priority hence if you receive coffee drinks that are different from what you paid for, we will sincerely apologize. You can call us as soon as you notice that there was an error in your order so you can come and pick up the right order.

For credit card payments, you will be refunded the sales price amount associated with the error and recharged for the new items’ price. For cash payments, you will be asked to pay the difference of the balance if the new coffee drinks have a greater value than the coffee drinks received in error.

In the same way, you will receive the difference of the balance back as credit for the new item if less than the coffee drinks received in error. In some cases, we may offer you store credit. Your order will be a priority if you come to pick it up. In all cases, please return the coffee drinks order in the original container(s) to our host.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients and investors. We will work with effective CRM software to be able to achieve this goal.

Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 45 percent in the second year. The plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainer deals that will enable the firm to boost our coffee shop business sales and support revenue growth.

a. What Happens During a Typical Day at a Coffee Shop Business?

• The business is open for the day’s work
• The coffee shop serving area is cleaned and ready for the day’s business
• Supplies such as coffee, sugar, milk, glass cups, and straws are purchased, and ready for use
• Customer’s orders are taken and they are served or their orders are delivered to them
• Cashier collect’s cash and reconciles account for the day
• Administrative duties are carried out
• The store or warehouse is restocked when required.
• The business is closed for the day.

b. Production Process (If Any)

The production process of coffee drinks involves;

• Getting the supplies ready
• Mixing coffee drinks.
• Filling in cups and serving the coffee drinks.

c. Service Procedure (If Any)

The service procedure for a coffee shop business starts with a customer requesting coffee drinks. Once the request is gotten, it will be processed and the customer will be served or the order delivered to a location as requested.

d. The Supply Chain

James Salford® Coffee Shop, Ltd. will rely on key players in the event and party planning industry to refer business deals to us. So also, we have been able to establish business relationships with wholesale suppliers of coffee, sugar, milk, glass cups, straws et al.

e. Sources of Income

James Salford® Coffee Shop, Ltd. makes money from the sale of;

• Drinks and water

Financial Plan

A. amount needed to start your coffee shop business.

James Salford® Coffee Shop, Ltd. would need an estimate of £75,000 successfully set up our coffee shop business in the United Kingdom.

b. What are the Costs Involved?

• Business Registration Fees – £12.
• Legal expenses for obtaining licenses and permits – £1,300.
• Marketing, Branding, and Promotions – £1,000.
• Business Consultant Fee – £2,000.
• Insurance – £1,400.
• Rent/Lease – £35,000.
• Other start-up expenses include commercial satellite TV subscriptions, and phone and utility deposits (£1,800).
• Operational Cost (salaries of employees, payments of bills et al) – £30,000
• Start-up Inventory – £7,500
• Store Equipment (cash register, security, ventilation, signage) – £1,750
• Furnishing and Equipping the Shop and Kitchen – £30,000
• Website: £600
• Opening party: £2,000
• Miscellaneous: £1,500

c. Do You Need to Build a Facility? If YES, How Much Will it Cost?

James Salford® Coffee Shop, Ltd. will not build a new facility for our coffee shop business; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Coffee Shop Business?

• Supplies such as coffee, sugar, milk, teacups, straws et al
• Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees
• Equipment maintenance
• Marketing costs

e. What is the Average Salary of your Staff?

• Chief Operating Officer (Owner) – £40,000 Per Year
• Manager – £30,000 Per Year
• Accountant (Cashier) – £28,630,000 Per Year
• Barista, Waiters, and Waitresses – £22,100 Per Year
• Cleaners – £18,000 Per Year
• Security Guard -£24,000 Per Year

f. How Do You Get Funding to Start a Coffee Shop Business

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your product/service.

The price of our coffee drinks to a large extent depends on the type of coffee drinks, but on average, we will sell a cup of our coffee drinks anywhere between £1.50 and £4.

b. Sales Forecast?

• First Fiscal Year (FY1): £160,000
• Second Fiscal Year (FY2): £250,000
• Third Fiscal Year (FY3): £300,000

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): £65,000
• Second Fiscal Year (FY2) (Profit After Tax): £100,000
• Third Fiscal Year (FY3) (Profit After Tax): £120,000

d. Profit Margin of a Coffee Shop Business Product/Service

The ideal profit margin we hope to make at James Salford® Coffee Shop, Ltd. will be between 20 and 60 percent all things being equal.

Growth Plan

A. how do you intend to grow and expand .

James Salford® Coffee Shop, Ltd. will grow our coffee shop business by first opening other outlets in key cities in the United Kingdom within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why?

James Salford® Coffee Shop, Ltd. plans to expand to;

• Auckley, South Yorkshire
• Dorchester, Dorset
• Ammanford, Carmarthenshire
• Prestwich, Manchester
• Bradford, West Yorkshire
• Birmingham-Wolverhampton
• Leeds-Bradford
• Little Horwood, Buckinghamshire
• Southampton-Portsmouth

The reason we intend to expand to these locations is that available statistics show that the cities listed above have the highest and most thriving market for coffee drinks in the United Kingdom.

The founder of James Salford® Coffee Shop, Ltd. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.

BUSINESS STRATEGIES

How to write a coffee shop business plan

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

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

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

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

Top benefits of creating a coffee shop business plan

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

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

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

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

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

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

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

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

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

How to create a coffee shop business plan in 6 steps

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

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

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

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

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

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

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

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

02. Company and domain names

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

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

When choosing a domain name consider the following best practices:

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

Choose a name that is easy to spell and remember

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

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

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

03. Market analysis and research

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

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

04. Operations plan

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

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

05. Marketing and advertising strategies

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

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

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

Learn more: How to make a website

06. Financial plan

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

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

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

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

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

Specify how you plan to secure funding

Highlight when you anticipate reaching profitability and generating positive cash flow

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

Coffee shop business plan examples

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

Coffee shop business plan template 1: Coffee Haven Café

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

Company and domain name

Company name: Coffee Haven Café

Domain name: www.coffeehavencafe.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Company name: Brew & Gather Coffee House

Domain name: www.brewandgathercoffee.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How profitable is a coffee shop?

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

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

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

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

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

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

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

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

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

Why do coffee shops fail?

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

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

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

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

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

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

Coffee shop business plan FAQ

How do you start a coffee shop business plan.

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

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

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

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

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

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

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

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

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

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In the not-so-distant past, independent cafés and coffee shops were rapidly growing alongside popular franchises and chains.

While the pandemic has had a significant impact on the sector, slowing progress and sending plans askew, recent forecasts for hospitality are looking a lot brighter.

With business optimism climbing to its highest level since 2015, entrepreneurs across the UK can finally exhale and start to take measured steps towards brewing their business idea into a tasty reality.

Household spending on eating out remained strong, with those businesses tapping into e-commerce left better prepared to weather the storm.

As the economy recovers, that spend is set to increase as restrictions ease, markets stabilise and more disposable income becomes available.

According to the Accenture/HIS Markit Business Outlook , hospitality has jumped up to the most confident sector following a far less positive outlook towards the end of 2020.

Commuter towns, for example, are likely to see a huge surge in demand as people are able to spend time outdoors, and continue working from home .

Getting started

If you’re dreaming of setting up your own café , a thorough coffee shop business plan is the place to start.

You will need one if you are looking for partners, investors or lenders, and it’ll help you stay on track as you work towards your goals.

A business plan also helps you understand the purpose and nature of your company and competitive environment, plus your:

• Unique selling points (USPs)
• Strategic goals
• Milestones.

Jim Winship, director of the Café Life Association, says a business plan is especially important in this sector because many people start cafés and coffee shops without any business experience.

“They have a dream that they can do it better than others but don’t think enough about the business side,” he says.

“This puts you at risk, in terms of the business liabilities, if the dream is unrealistic. So, a business plan is critical to help manage this risk.”

This article will help you create a business plan for your café or coffee shop. Here’s what it covers:

How to write a coffee shop business plan

Executive summary, business overview, audience and market, products and services, updating and adapting your plan, coronavirus and coffee shops, start building your café business plan, your one stop shop for starting a business.

Thinking about starting a business or already putting your ideas into action? We’ve got the resources, expertise and software to help you achieve your goals.

There are no set rules about what a business plan should include.

Jen Walker, founder of  The Split Screen Coffee Company , says: “It doesn’t need to be overly formal but putting your ideas on paper is always useful and helps bring clarity.

“I have ideas flying around my head constantly and organising them has always served me well.

“As well as helping figure out what makes you special, it can feed into your market research, which is essential before making any big financial leaps.”

Before writing your proposal, search online for business plans of your favourite successful cafés and coffee houses to see how they did it.

Kick things off with your personal story.

Use exciting words to sell your idea and draw the reader into the narrative. Be creative with visuals, branding and design features as well as words, but always back this up with realistic detail.

If you want to secure funding , readers will also expect it to contain the following sections.

This should capture the reader’s attention and cover the key points about your business, like an elevator pitch.

Summarise your overall vision and where you fit into the market: the competition, market opportunity, your USP, and why and how you can build a profitable business.

Include details on the funding you’re looking for and how you plan to use it. If you already have some funding, summarise these details.

This section includes more detail on the above, plus a look at how you intend to execute key areas such as marketing, advertising, sales and operations.

It could also include exterior and interior designs, plus your website and other brand collateral.

Summarise the size of the market and sales of comparable products in your area and country. Identify any risks and challenges your company might face and how you plan to address or mitigate these issues.

Consider location, passing traffic, and any local amenities such as offices, universities, or business parks, as these will all play a part in how successful your venture is.

“Your café is a business, so you have to approach it that way,” says Jim. “For example, you need to understand the liabilities – of leases, employees and other standing costs – and whether you can support that risk with the likely sales volume.”

Summarise your short, medium and long-term goals with performance measures and milestones.

Include daily sales targets and consider how you can increase both volume and revenue by selling extras such as coffee mugs, branded bags of your house roast, or even tote bags.

Say how you will meet these goals and make sure they are SMART: Specific, Measurable, Attainable, Relevant and Time-based.

Track your progress against these goals regularly – and throw in customer or stakeholder feedback while you’re at it.

Your café or coffee shop needs a great location and a clearly defined target market, large enough to support your income needs.

Provide in-depth customer analysis, including your target audience’s needs, preferences and priorities.

Show potential investors why there is a viable market in your target area.

Look at how many work premises are nearby, and how many might need sandwich deliveries, catering services, or provide footfall business.

Count how many people walk past at peak times and get demographic information about the area.

“There may be a good reason for one area having lots of coffee or sandwich shops and there may be room for another,” says Jim.

“But do your homework. Stand on the street and see what people are doing to understand the footfall.

“Where are they going to and from, at lunchtime, if it’s a sandwich shop, or while shopping if it’s a coffee shop in a shopping area. Prove there is sufficient volume to make it viable.

“Also, analyse the competition and whether your shop will be sufficiently different and attractive that people come to you instead.

“You need to do better than competition, which is difficult, or offer something unique.”

Include details of menus and any other products you sell, plus some information on where you will source materials and ingredients from, and how you’ll market your products.

Show how you source, price and present your goods to attract your target market.

Post-pandemic, it’s more important than ever to consider how delivery, click and collect, and ecommerce factor into your business.

This has been a lifeline that kept doors open and jobs secure for the majority of cafés and restaurants, and your reader will be looking for this kind of foresight.

Mention of all your key people, with skills and experience, and any roles you plan to hire for, whether that’s full or part time.

Explain the management and ownership structure and any plans to evolve it.

Outline how you plan to train, reward, and incentivise your staff; this kind of detail showcases the level of thought and research you’ve put into your business idea.

Include all your costs, from initial and ongoing to standing and variable. State your projected sales and profits after tax and outgoings.

Jim advises: “Cost every single item in your product to make sure you can price it for profit. People lose sight of that sometimes.

“Only after doing all the sums can you see whether the business will give you the income you need.”

If you’re not sure where to start when it comes to getting accurate financials, check out our guide on estimating figures for your business plan for more detailed information.

And when it comes to staying on top of your financials, using good cloud accounting software aimed at the hospitality industry will put you in good stead.

As your business evolves, your strategy and goals will change, so update your plan as often as possible – annually, quarterly, or even monthly.

“The more you stay on top of it, the better you can deal with issues that arise, so I recommend updating your plan monthly,” says Jim.

“If you are a small independent firm, you have the advantage that you can change quickly, but only if you recognise the need to.”

If you want to expand, ask yourself: “Do I understand the very different management skills and stresses involved?”

As well as updating your plan often, Jen recommends tailoring it to your intended reader.

“My plan has taken different forms depending on my audience,” she says. “For example, it has been handwritten, typed, and even used photos like a mood board.

“Think about who you are writing this plan for – your eyes only or potential investors?

“Others may not have the same interest in your concept as you do so make it clear, personal and interesting to them.”

In the past year, most cafés have changed their business plans drastically because of the trading challenges created by the pandemic.

As coronavirus recedes, you may have to plan your costs even more carefully; you may, for example, have backlogs of rents and loans to repay or renegotiate.

Or you may want more funding to exploit new opportunities.

“Banks are now offering pay-as-you-grow repayment plans, so if you need this, talk to your bank manager,” says Jim.

“We suggest any outstanding rent should be spread over the life of the lease and that rental agreements should be based on a percentage of turnover.”

Jen says she has changed her business plan radically since the start of the pandemic .

“I’m now collaborating with another local small business and we now have a joint plan for growing our range together,” she says.

“Collaborating has been a wonderful experience and has improved cash flow and given me more time off.

“My advice is not to view others as competition but think about how you can come together to improve your offering and boost your local economy.”

As the economy recovers, following your business plan’s structure will help you run a tight ship financially, take advantage of new opportunities, and persuade potential partners or investors to back you.

When writing your plan, take your time, research thoroughly, and ensure all elements are accurate and realistic.

But don’t make it a dry or tedious read. Investors back people as much as businesses, so let your personality and passion shine through.

Use our free business plan template for small food and drink businesses to get started on your café proposal. This includes everything you need to set out for success and show potential investors if and when that time comes.

We also provide a business model canvas that can help you distil the most important parts of your plan into a one-page document – check it out.

Business plan template for food and drink companies

Want to create a business plan for your food or drink company but not sure how to do it? Download our free and easy-to-use business plan template and you can get started.

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COFFEE SHOP BUSINESS PLAN UK: Fresh Tips on How to WRITE a Coffee Shop Business Plan

• by Folakemi Adegbaju
• August 10, 2023

Table of Contents Hide

How to start a coffee shop business, #1. the executive summary, #2. business description, #3. industry research, #4. marketing plan, #5. financial plan, #6. operations plan, #7. management plan, final thoughts, is owning a coffee shop profitable uk, do you need a licence to sell coffee in the uk, can i sell coffee on the street in the uk.

To secure the finance and support you need for your coffee business to succeed, it will be to your advantage to write a coffee shop business plan before you jump in and start daydreaming about it. A coffee business plan can serve as a road map for the expansion of your UK coffee business. Guess what? We’ve got a UK coffee shop business plan template just to make it easier for you!

Let’s start!

UK Coffee Shop Business

Coffee businesses, unlike restaurants, rely on foot traffic and frequently serve office workers during the week and bustling shoppers during the weekends. This implies there is less of a need to develop a truly original concept, yet it is still important to choose a strategy that makes your coffee shop stand out from the competition.

Coffee business ideas typically fall into one of two categories: either they are places to hang out for an hour or two, or they are quick and convenient for consumers on the go. With artisanal coffee becoming a major trend for independent coffee shops, the quality of your coffee can help set you apart from the competition. More repeat consumers will come to you if your coffee is better tasting. Utilizing specialty brews and high-quality beans can give your coffee establishment a clear advantage.

Starting a coffee shop business comes with a lot of tasks and some confusion about how to get started. Here are some steps you can follow to build up that empire, i.e., your own coffee shop, that you’ve always dreamed of:

#1. Study Your Coffee Competitors

The UK is a city where people take coffee more often than they take water. Because of this, coffee shops tend to be a lucrative kind of business in the UK, hence the reason the market is full of competitors. You should research the coffee industry before you start brewing coffee for your consumers. Analyze your competitors and find inspiration from the proprietors of independent coffee shops by reading their biographies. This is especially crucial if you are new to the business.

#2. Hiring Staff and Training

You can choose the staff members you need to hire and who should be hired first by considering the size and objectives of your coffee business.

Of course, you have baristas and chefs/cooks on staff, but your team may also include people in administrative, marketing, and accounting positions, to mention a few. Your manager and a marketing expert should be hired first if you are recruiting them.

#3. Location

When deciding how to open a coffee business, your choice of location will be the most important one. The two most important criteria you should look at while evaluating potential sites are location and size. Therefore, it might be worthwhile to choose a coffee location in a bustling urban area with lots of foot traffic. Even with a strong earning potential, a shopping mall may not be the best choice because the expensive rent may not be covered. If less obvious areas have good visibility, don’t ignore them. Future potential income from developing areas could be significant.

Don’t restrict yourself to regular coffee shops. Sometimes it can be wiser to invest in a coffee truck near a train station than a coffee shop on the main drag.

#4. Buy Equipment

There are a few commercial coffee machines that are appropriate for a coffee shop, but if you want to provide your customers with the best coffee possible, you should think about investing in an espresso machine . Also, the price and functionality of the espresso machine you want to buy should be taken into consideration. Consider how many people you’ll be serving coffee to each day, and make sure you have the capacity to do it promptly.

For the start of your coffee business, renting or leasing a coffee machine may be an option if your budget is tight and you cannot afford to buy a machine entirely.

#4. Write a Solid Business Plan 

You can use a coffee shop business plan as a tool to organize and rank the plans and costs for your coffee business in the UK. A coffee shop business plan in the UK is also necessary if you intend to apply for a loan or recruit investors.

We have a coffee business plan template in the UK compiled to put you through. The following are found in the coffee shop business plan template UK we’ve created for you:

• An executive summary 
• The business structure overview
• market analysis
• Competitor plan
• market plan 
• A financial plan 
• An operating plan 
• management strategy 

This coffee business plantemplate in thee UK will help you when creating your own business plan.

Download the Coffee shop business plan template

Depending on the size of your UK coffee business, a coffee shop business plan may be a few or even hundreds of pages.

#5. Financing Your Coffee Business

These things cost money: facilities, tools, personnel. Fortunately, if you’re just establishing a firm and need to raise cash, there are a variety of solutions available. While many people start their businesses with money they have saved or borrowed from family members, there are a number of alternative options.

Despite the tremendous success of Costa and other chains, coffee shops are not the type of firm to start up if you’re anticipating a rapid multi-million-pound exit. Even if you open several locations, your profit margins will be appreciable. Even then, your startup costs will be high. If you’re feeling especially ambitious, it might be worthwhile to see if you can obtain a company loan to aid with your launch.

#6. Regulation

There is currently no law requiring formal training in order to start a coffee business. However, it is your responsibility to make sure that you and everyone else dealing with food in your establishment are properly trained and/or supervised. The business owner is legally responsible, so be sure you have all the information you require.

You’ll need to be knowledgeable about the fundamentals of food preparation. Furthermore, the government has delegated control of all food safety regulations to the Food Standards Agency (FSA). The FSA can give you guidance on all food hygiene issues that can assist you in staying within the law and making your establishment safe for visitors.

Coffee Shop Business Plan UK

A coffee shop business plan describes your business idea and how it will be successful. It provides answers to queries like how much it will cost to open a business, how those costs will cover it, and how much revenue you anticipate from your café. A coffee business plan includes information about your competition, target market, and price structure. Here is a business plan template for your UK coffee business to put you through the process of writing yours!

The executive summary will be the first thing a reader sees when they open your UK coffee shop business plan. This also provides a general summary of every section in your business plan. A strong executive summary will open doors for you.

Also, consider who will read your UK coffee shop business plan and write the introductory paragraphs with that audience in mind, just like you did when thinking about the consumers who will visit your soon-to-be-opened coffee shop. Your executive summary is the most significant marketing tool your coffee business has as you are ready to begin.

It’s important to give a thorough description of your company, including specifics like how the concept will look, where it will be located, and the type of atmosphere or brand you plan to establish. Your company’s description paints an accurate image of your mission and objectives.

This entails gathering in-depth information about a nearby coffee shop, its average foot traffic, break-even points, and other important insights that can help you run your own coffee business successfully. Also, write out how your own coffee shop is going to be different.

Your marketing plan may be a section of your marketing strategy or it may be included separately. Will you post about your daily specials on social media? Will you collaborate with a different local company to run special promotions? This is a wonderful place to highlight your strategies for customer retention in addition to marketing. Are you going to provide loyalty programs or ask your staff to send your best clients a free cookie on their birthday? It’s simpler than ever to reward and keep the consumers who will frequently visit your coffee shop with a cafe point-of-sale system.

Create a financial plan for your coffee business. This component of your coffee business plan is typically the longest and most crucial, especially for lenders and investors. A summary of your start-up expenses, an income statement, anticipated cash flow, a balance sheet, and a break-even analysis should all be included. Keep in mind that your financial forecast must be accurate and realistic. However, it is not required to be entirely exact. Over the coming years, things will probably change, and you’ll need to adjust. Your viewers will be able to see what you anticipate will happen in the future thanks to this strategy.

The success of your coffee business depends on a solid operations plan. This needs to contain all the components necessary for you to operate your coffee shop successfully every day. You’ll include details on your workplace, personnel, tools, and supplies. Consider the up-front costs of housing, barista salaries, food items like coffee, and technology. Try to squeeze as many functions as you can out of a single instrument, it also entails the following:

• Hiring The Right Staff: This is essential to making and serving the coffee business. All potential avenues for finding suitable staff should be covered in a thorough hiring plan, including recruiters, employee recommendations, advertising in newspapers, job sites, or on other social media platforms.
• Training The Employees:  The most important duty after hiring the right people is to train them. For your personnel to follow, develop Standard Operating Procedures (SOPs) and a training manual. Techniques for managing crises and disasters must be included in the training.

You’ll need the help of a strong team to make your coffee business successful because no man or woman is an entity. You will describe your management group, personnel, and resources in this area.

There are some questions you need to add to the section of your management plan to make it more meaningful, they are:

• the arrangement of ownership. Do you work alone, in a partnership, or for a company?
• your executive staff. They, who? What is their function? And what is their background?
• people resources. Once you’re operating, how will you hire additional employees?

Another thing to remember is that it’s doubtful that your crew would labor for nothing, so be sure to include information on things like salary, benefits, and pensions.

Starting your own coffee business can be a nerve-wracking endeavor. The market for coffee shops is competitive, but the good news for startup business entrepreneurs is that customers adore independent coffee shops. This is where a  coffee business plan is needed to ensure you have a productive result.

You may also launch your own coffee business and prepare for potential challenges by writing a well-thought-out coffee business plan. A brief business plan will position you for success by demonstrating to potential investors that you are a sound investment. We are here to help you out with our well-detailed coffee shop business plan !

Due to their large profit margin and low cost of inventory, coffee businesses are very profitable. You can guarantee the success of your coffee business with good cost management.

Through the UK government website, which points you to information about your local council, you can register as a food business. There are no refusals and it is free to do, but you should register at least 28 days before the opening. No matter how you choose to sell your coffee, you must first register.

You must submit an application for a street trading permit. If you want to operate your coffee cart in a city centre rather than a suburb or town, you must do this. In your application, it’s important to identify any particular locations you have in mind.

Related Articles

• FOOD BUSINESS: Starting A Food Business From Home UK
• CAFE BUSINESS PLAN: How to Write With Templates & All You Need

FOOD BUSINESS PLAN: How To Go About Setting Up a Food Business Plan

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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.

Sample Business Plan for a Cafe or Coffee Shop

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

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

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is a coffee shop business plan.

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

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

What Are the Main Types of Coffee Shops?

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

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

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

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

How Much Does it Cost to Start a Coffee Shop?

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

How Do You Get Funding for Your Coffee Shop Business?

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

How to Start a Coffee Shop?

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

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

• How to Start a Coffee Shop Business

Where Can I Get a Coffee Shop Business Plan PDF?

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

Don't bother with copy and paste.

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

Coffee Shop Business Plan

Start your own coffee shop business plan

Java Culture

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

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

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

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

Competition

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

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

Expectations

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

Financial Highlights by Year

Financing needed.

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

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

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

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

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

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

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

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

Problem & Solution

Problem worth solving.

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

Our Solution

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

Target Market

Market size & segments.

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

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

Current Alternatives

Our Advantages

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

Keys To Success

The keys to success will be:

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

Marketing & Sales

Marketing plan.

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

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

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

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

Locations & Facilities

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

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

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

Milestones & Metrics

Milestones table.

Key Metrics

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

Ownership & Structure

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

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

Management Team

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

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

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

Revenue by Month

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

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

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

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

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

Sources of Funds

Projected profit & loss.

Projected Balance Sheet

Projected Cash Flow Statement

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Coffee Shop Business Plan Sample

Fill the form to download coffee shop business plan example.

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

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

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

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

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

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

Coffee Shop Business Plan Template

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

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

1. Business Plan Title Page

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

What makes a great cover page for a business plan?

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

2. Executive Summary

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

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

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

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

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

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

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

Read more: Executive summary examples

Financial Highlights

3. Market Overview

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

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

Market Analysis

Target Market

4. Competitive Analysis

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

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

5. Swot Analysis

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

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

Opportunities

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

Free: Business Plan Examples

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6. Marketing Plan

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

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

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

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

Read more: how to do market research research

7. Funding Request

Read more: ways to find investors for your business

8. Management Summary

9. Financial Highlights

Financial Indicators

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

Break even analysis

Profit and Loss Statement

Projected Cash Flow

Projected Balance Sheet

Coffee Shop Business Plan Sample. FAQs:

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

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

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

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

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

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

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

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

Coffee Shop Business Plan PowerPoint Presentation

Download coffee shop business plan example pdf.

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

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Coffee Shop Business Plan Template

Are you dreaming of opening your own coffee shop but don't know where to start? Look no further! Our free coffee shop business plan template is the perfect tool to help you get started. This comprehensive guide will walk you through the process of creating a solid business plan that will set you up for success. With our customizable template, you'll be able to tailor your plan to your unique vision and goals, so you can confidently launch your coffee shop with the right foundation in place.

Get the free business plan template here!

If you're looking to start a coffee shop and need a plan to get started, you're in the right place. This free business plan template is designed to help you create a comprehensive plan for your coffee shop that will guide you through the process of starting and growing your business.

Starting a coffee shop can be an exciting and rewarding venture, but it can also be challenging. With so many details to consider, it's easy to get overwhelmed. That's why a solid business plan is crucial for success. It will help you clarify your vision, outline your goals, and create a roadmap for achieving them.

Our coffee shop business plan template is designed to be easy to use, even if you have no previous business ownership experience. It includes all the sections you need to create a comprehensive plan, including:

• Executive summary: This section provides an overview of your coffee shop, including your mission statement, products or services, target market, and financial goals.
• Company description: This section provides more detailed information about your business, including its legal structure, ownership, and management team.
• Market analysis: This section analyzes your target market and the competition in your industry. It includes information about your ideal customer, your competitors, and the overall market size and trends.
• Products: This section outlines your coffee shop products, including any unique spin on them, and what impact you expect them to have.
• Sales and marketing plan: This section outlines how you plan to reach and sell to your target market. It includes your pricing strategy and promotional tactics.
• Financial projections: In this section we provide real examples of real coffee shop financial projections that show you exactly what you should include about your financial projections in your business plan.
• Funding request: If you need funding to start or grow your business, this section will help you outline your funding needs and present your plan to potential investors or lenders.

Our coffee shop business plan template is completely customizable to fit your specific needs. You can add or remove sections as needed, and fill in the details that are most important to your business. The template includes helpful tips and guidance throughout, as well as examples of completed sections to help you get started.

To access the free coffee shop business plan template, simply enter your email address and name in the form provided. You will receive a link to download the template.

With this free coffee shop business plan template, you will have the tools you need to create a comprehensive plan for your shop. Whether you're just getting started or looking to take your business to the next level, a solid plan is the key to success. Get started today

Coffee Shop Business Plan Outline

I. Executive Summary

- Brief overview of the business idea, target market, and goals

II. Market Analysis

- Description of the coffee market, including trends and competitors

- Analysis of target customer demographics and their coffee habits

III. Business Concept

- Description of the coffee shop's unique selling proposition and concept

- Details of the menu offerings and any special features or services

IV. Marketing Strategy

- Overview of marketing and advertising efforts, including social media, promotions, and local events

- Analysis of pricing strategy and how it will attract customers

V. Operations Plan

- Description of the day-to-day operations, including staffing, scheduling, and inventory management

- Discussion of any technology or equipment needs and how they will be procured

VI. Financial Plan

- Projections for start-up costs, ongoing expenses, and revenue

- Breakdown of funding sources, such as loans or investments

- Discussion of the target profitability and growth potential for the business

VII. Management Team

- Brief descriptions of key management members and their experience

- Discussion of any partnerships or strategic relationships

VIII. Conclusion

- Summary of key points and future plans for the business

Coffee Shop Business Plan Frequently Asked Questions

Q: why do i need a coffee shop business plan.

A coffee shop business plan is a roadmap for your business. It helps you identify your target market, competitive landscape, and financial projections. By creating a business plan, you can gain a better understanding of your business and increase your chances of success.

Q: What should be included in a coffee shop business plan?

A coffee shop business plan should include an executive summary, company description, market analysis, product line, sales and marketing plan, financial projections, and funding request. Each of these sections should be tailored to your specific coffee shop.

Q: How long should a coffee shop business plan be?

A coffee shop business plan can vary in length, but it should typically be between 25 and 35 pages. It's important to include all the necessary details, but not to overwhelm the reader with too much information.

Q: Do I need to hire a professional to write my coffee shop business plan?

While it's not necessary to hire a professional to write your coffee shop business plan, it can be helpful if you're not experienced in creating business plans. You can also use templates and online resources to guide you through the process.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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Coffee Shop Business Plan Template & PDF Example

• July 22, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful coffee shop. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your coffee shop’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a coffee shop business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your coffee shop concept into reality. Let’s dive in!

Our coffee shop business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the shop’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers a quick look at your coffee shop idea, market research , your team, and money plans.
• Coffee Shop & Location: Talks about the design, special features, and why the spot is great for customers.
• Operations: Describes how your shop runs daily, like hours, staff roles, and your menu items with prices.
• Key Stats: Gives numbers on how big the coffee shop world is and what’s trending.
• Key Trends : Points out new things in coffee shops, like eco-friendly practices or tech for ordering.
• Key Competitors: Looks at other coffee places nearby and how your shop is different.
• SWOT: Lists strengths, weaknesses, opportunities, and risks for your shop.
• Marketing Plan : Ideas for getting the word out and keeping customers coming back.
• Timeline : Major steps and goals from starting up to the first year.
• Management: Highlights Info on your leading team and their roles.
• Financial Plan : Predicts financials for 5 years, like how much you’ll make, spend, and keep as profit.

Coffee Shop Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary presents a concise overview of your coffee shop’s business plan, encapsulating the essence of your establishment and its offerings. It should articulate your market positioning, the variety of coffee and related products you offer, its location, size, and a brief on the daily operations.

This section should also delve into how your coffee shop will carve its niche within the local community, including an analysis of the number of direct competitors in the vicinity, identifying who they are, as well as highlighting your coffee shop’s unique selling points that set it apart from these competitors.

Moreover, information about the management and co-founding team should be included, elaborating on their roles and the value they bring to the coffee shop’s success. Additionally, a synopsis of your financial projections, including anticipated revenue and profits over the next five years, should be provided here to offer a clear view of your coffee shop’s financial strategy.

Coffee Shop Business Plan Executive Summary Example

Business Overview

The  business overview  section should detail the coffee shop’s specific features, including its size, seating capacity, and concept. This is where you explain what makes your coffee shop unique, such as its focus on specialty coffees and local artisanal pastries, and how it operates.

Example: “Bean Haven,” located in the bustling Midtown area, spans 2,000 square feet and can seat 40 customers. It stands out with its range of gourmet coffees and fresh pastries, all sourced from local suppliers. The shop’s modern POS system ensures efficient service, enhancing the overall customer experience.

Market Overview

In this section, analyze the local and national coffee shop market. Discuss the size of the market, growth trends, and consumer preferences. This analysis should position your coffee shop within the broader industry context and highlight its potential to meet current consumer demands.

Example: Bean Haven enters a U.S. coffee shop market valued at $45.8 billion. In its neighborhood, known for a dense population of young professionals, Bean Haven’s focus on health-conscious options and its role as a community hub align with shifting consumer preferences, setting it apart from six main competitors in the area.

Management Team

This section outlines the experience and roles of your management team. Detail how their background and skills contribute to the success of the coffee shop.

Example: Bean Haven is led by a CEO with 10 years of experience in café management, overseeing daily operations and supply chain efficiency. The CFO, with a background in hospitality sector marketing, handles the shop’s financial strategies and marketing campaigns, ensuring robust business operations.

Financial Plan

Here, present your financial goals and projections. Include revenue targets and profit margins, providing a clear picture of your coffee shop’s financial aspirations and health.

Example: Bean Haven aims for $830,000 in annual revenue with an 11%  EBITDA  margin by 2028. This goal is supported by a focused approach on high-quality offerings, strategic marketing, and community engagement, positioning Bean Haven for success in the  competitive  market.

For a Coffee Shop, the Business Overview section can be neatly divided into 2 main slides:

Coffee Shop & Location

Talk about your coffee shop’s look and feel, highlighting cozy seats and nice lighting that make it welcoming. Mention its location, noting how easy it is to get there, like being close to shops or having easy parking. Explain why this spot is great for attracting customers.

Operations & Offerings

List the kinds of coffee and other items you sell, including snacks or light food. Discuss pricing, making sure it matches the quality of what you’re selling and suits your target customers . Share special features of your shop, such as using local products or offering unique coffee flavors. Mention any deals or events you have to keep customers coming back.

Industry Size & Growth

In the Market Overview of your coffee shop business plan, begin by exploring the size of the coffee industry and its potential for growth. This analysis is key to understanding the breadth of the market and pinpointing opportunities for expansion.

Key Market Trends

Next, discuss current trends in the coffee market, like the growing demand for specialty coffee, the appeal of ethically sourced and organic beans, and the innovation in coffee brewing techniques. Highlight the interest in offerings that cater to diverse preferences and dietary needs, such as plant-based milk options and artisanal blends, as well as the increasing importance of sustainability in the coffee industry.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your coffee shop in the market; it’s also a fundamental component of your business plan.

This analysis helps identify your coffee shop’s unique selling points, which are essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Coffee Shop’s Competitors

The first step in conducting a competitive analysis for your coffee shop is identifying your direct and indirect competitors. Direct competitors include nearby coffeehouses or chains that offer similar services and products, while indirect competitors might encompass local juice bars, tea houses, or even convenience stores selling coffee.

Utilize tools like Google Maps to map out competitor locations and understand their distribution across your area. Online platforms like Yelp, Google Reviews, or social media channels provide invaluable insights into customer reviews and ratings, shedding light on competitor  strengths and weaknesses . For instance, if a rival coffee shop receives praise for its artisanal coffee blends and cozy ambiance, it signifies a notable strength.

Coffee Shop Competitors’ Strategies

To gain a deeper understanding of the competitive landscape, analyze various facets of your competitors’ strategies:

• Coffee Menu Offerings:  Assess the range and uniqueness of coffee offerings. For instance, if a local competitor, “Brew Masters,” is gaining traction with exotic single-origin coffees or specialty cold brews, it highlights a potential trend or gap in the market for distinctive coffee blends.
• Service and Ambiance:  Consider the ambiance and customer service. Perhaps a competitor, “Sip & Chill Café,” is known for its relaxed atmosphere and friendly staff, enhancing the overall customer experience.
• Pricing Strategy :  Compare your pricing with competitors. Are your coffee prices aligned with those of other local cafes, or do you position yourself as a premium establishment akin to “Gourmet Grinds,” offering artisanal blends at a higher price point?
• Marketing and Branding:  Analyze how competitors market their brand. Do they rely heavily on social media campaigns, influencer collaborations, or community events? Understanding their marketing tactics can help refine your promotional strategies.
• Innovative Offerings and Technology:  Look for innovative approaches. Are competitors embracing technology for online ordering or loyalty programs? For example, “TechBeans Café” might leverage an efficient app-based ordering system, catering to tech-savvy customers.

What’s Your Coffee Shop’s Value Proposition?

Defining your coffee shop’s  unique value proposition  is critical. Perhaps your establishment specializes in single-origin, ethically sourced beans, or you have a signature blend that customers rave about. Emphasize these unique offerings to distinguish your brand in the market.

Consider market gaps and evolving customer preferences. If there’s a growing preference for sustainable practices or an increasing demand for specific coffee types (organic, fair trade, etc.), tailoring your offerings to meet these needs can position your coffee shop favorably amidst competitors.

Tailoring your offerings to your location is essential. A coffee shop in a bustling business district might emphasize quick service and convenience for professionals on the go. At the same time, a suburban café could focus on creating a warm, family-friendly environment to attract locals seeking a relaxing spot for gatherings or leisurely coffee breaks.

Start by doing a SWOT analysis for the coffee shop. Point out Strengths (like skilled baristas and a variety of coffee options), Weaknesses (such as high running costs or lots of competitors), Opportunities (for instance, more people wanting unique coffee experiences), and Threats (like economic changes that might reduce how much people spend on coffee).

Marketing Plan

Then, make a marketing plan that shows how to draw in and keep customers. This could include ads aimed at the right people, deals to save money, an active and interesting online presence, and getting involved in the local area.

Marketing Channels

Utilize various marketing channels to reach and engage your audience effectively.

Digital Marketing

• Establish a Strong Online Presence:  Leverage social media platforms like Instagram for visually appealing coffee shots, TikTok for engaging short videos, and Twitter/Facebook for engaging with customers and sharing updates.
• Email Marketing:  Build an email list and send newsletters featuring new coffee blends, upcoming events, or promotions. Offer incentives for signing up, such as a discount on the first purchase.
• Website and SEO:  Develop a user-friendly website showcasing your menu, the story behind each coffee blend, and a blog section for brewing tips or coffee-related content. Optimize for local SEO to attract nearby customers.

Local Advertising

Connect with the local community to increase foot traffic:

• Flyers and Local Print:  Distribute eye-catching flyers in nearby offices, community centers, and partner businesses. Advertise in local newspapers or magazines to reach a broader audience.
• Community Engagement:  Host events like cupping sessions, live music nights, or art exhibitions to create a gathering space. Partner with local artists, musicians, or charities to foster community connections.
• Partnerships: C ollaborate with neighboring businesses, such as bakeries, bookstores, or gyms, for cross-promotions or joint events.

Promotional Activities

Attract customers with enticing offers and loyalty programs:

• Special Deals:  Launch seasonal or themed promotions to attract customers. For instance, during colder months, promote warm beverage options with discounts, or offer a summer-themed menu with refreshing iced coffees or specialty drinks.
• Loyalty Programs:  Implement a rewards system where customers earn points for every purchase. These points can be redeemed for free drinks, merchandise, or even exclusive experiences. This encourages repeat business and fosters a sense of loyalty among customers.
• Referral Incentives:  Encourage your existing customers to refer friends and family by offering incentives. This could be in the form of discounts or free beverages for successful referrals. Word-of-mouth remains a powerful tool in the coffee industry.

Sales Channels

Optimize  sales channels  to maximize revenue and customer satisfaction.

In-Store Upselling

Maximize each customer’s visit:

• Upsell Specialty Items:  Train baristas to suggest specialty drinks, pastries, or merchandise based on customers’ preferences or current promotions.
• Merchandising:  Display branded merchandise like travel mugs, brewing equipment, or specialty beans near the checkout counter to encourage additional purchases.

Subscription Services

Offer subscription-based models for regular income and customer retention:

• Coffee Delivery Subscription:  Introduce a coffee delivery subscription service where customers receive their preferred coffee blends regularly at a discounted rate. Customize subscription options based on frequency and quantity to cater to diverse preferences.
• VIP Memberships:  VIP memberships can provide exclusive benefits such as early access to new blends, members-only events, or personalized recommendations. These memberships create a sense of belonging and offer additional value to loyal customers.

Mobile Ordering and Pickup

Facilitate convenient ordering and pickup options:

• Mobile App Ordering:  Develop a user-friendly mobile app that allows customers to browse your menu, place orders, and make payments seamlessly. Offer incentives such as loyalty points or app-exclusive deals, to encourage app usage.
• Curbside Pickup:  Implement a curbside pickup option, allowing customers to order ahead and collect their beverages without leaving their vehicles. This convenience factor can attract busy individuals or those seeking contactless service.

Strategy Timeline

Lastly, set up a detailed timeline that marks important steps for the coffee shop’s start, marketing actions, growth in the number of customers, and goals for getting bigger. Make sure there’s a clear plan and goal for moving the business forward.

The Management section focuses on the coffee shop’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the coffee shop toward its financial and operational goals.

For your coffee shop business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your coffee shop’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your coffee shop business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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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 Shop Business Plan Template

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What You Get

• A compelling & detailed pre-written coffee shop business plan template in WORD
• A full-fledged coffee shop financial plan model in EXCEL that you can easily customize
• Customized text tailored to the coffee shop business
• The ability to paste advanced charts and tables within a click
• No accounting or specialized financial knowledge needed
• Low-cost solution saving you time and money

Coffee Shop Business Plan Template Description

Our ready-made Coffee Shop business plan package comes fully loaded with a pre-written business plan template in Word and an automatic financial plan in Excel tailored to the Coffee Shop business. Spend only a couple of hours customizing these pre-written documents and adapt them perfectly to your own Coffee Shop project. Our business plan package saves you tons of time and money and enables you to get a professional coffee shop business plan that you can proudly share with prospective investors and other stakeholders. Check below the full content details.

Coffee Shop Business Plan Document in Word

Our ready-made Coffee Shop business plan template is in Word format and includes 23 pages. The document is divided into multiple sections. Each section contains the essential points that are necessary to effectively present your Coffee Shop project. Each section and sub-section offers you a sample text that you can easily customize to make your business plan unique. Below is a small excerpt of your pre-written coffee shop business plan in Word.

Automatic Coffee Shop Financial Plan in Excel

Our pre-populated financial model is in Excel format and includes multiples worksheets. You can easily edit the model’s inputs including changing costs and revenue assumptions to generate custom pro-forma financial forecasts including P&L, Cash flows and Balance Sheets. Below is a small extract of your automatic coffee shop financial plan in Excel.

The Benefits of Creating a Business Plan for your Coffee Shop:

• A business plan is a comprehensive document that outlines the key aspects of your coffee shop business, including its concept, target market, value proposition, and long-term goals. It can also help you identify opportunities for growth and differentiation in the competitive landscape, and determine how you will meet the needs of your target customers better than your competitors.
• If you need outside financing to start or grow your coffee shop, a business plan and financial plan can be critical in convincing investors to fund your business. The financial plan should include detailed projections that show how you plan to generate revenue, achieve profitability, and return on investment. It should also include information on your start-up costs, pricing strategy, marketing budget, and any other financial considerations.
• A business plan and financial plan serve as a roadmap for your coffee shop business, helping you track your progress and make adjustments as needed to stay on track. By regularly reviewing and updating these documents, you can monitor your financial performance and identify any potential financial risks or opportunities.
• A financial plan is a crucial tool for managing the financial aspects of your coffee shop business. It provides a clear overview of your income and expenses, helping you create a budget that aligns with your business goals. It can also help you make informed financial decisions by identifying potential risks and opportunities and providing a basis for evaluating different financial scenarios.
• A business plan can also be an effective tool for attracting and retaining top talent for your coffee shop. By outlining your business goals, values, and culture, you can attract employees who are aligned with your vision and mission. A well-written business plan can also help you communicate your goals and expectations to your team, keeping them motivated and engaged.

This Ready-Made Coffee Shop Business Plan is For:

• Entrepreneurs wishing to start a coffee shop business
• Aspiring coffee shop owners who want to create a business plan fast and easy
• Coffee shop entrepreneurs who wish to pitch their project to investors
• Coffee shop professionals who wish to better understand the potential of the opportunity

Immediate Delivery by Email

• Once you complete the order, you will receive an email with links to download your documents
• Your order will contain the full pre-written business plan in Word
• Your order will contain the full customizable financial model in Excel

Your Coffee Shop Business Plan Content

Executive Summary: Our Coffee Shop business plan template starts with a compelling Executive Summary. This key section is very important as it summarizes in 1 page your Coffee Shop business opportunity. It will introduce your business model, the key people behind the project as well as the unique selling proposition offered by your Coffee Shop venture. This section will also mention how market conditions and consumer trends are favorable for launching your project.

The Problem Opportunity: Next, your ready-made Coffee Shop business plan will list a number of problems experienced by your prospects in your target market and will show how this presents a unique opportunity for your Coffee Shop business. These can include issues such as lack of coffee shops in a certain location, low quality of coffee drinks offered by existing players, undifferentiated offering by current actors in the market…etc.

The Solution: This section explains how your Coffee Shop will take advantage of the current problems in the market and will detail your innovative solutions.

Mission & Vision: Your mission will explain in a couple of sentences your Coffee Shop’s business ethos. In other words, it will summarize your unique value proposition and will explain how you are different than the competition. Your vision will explain your long-term plans for this Coffee Shop concept. Are you planning to start with one branch today and expand to a multi-branch business model? Are you looking to transform your Coffee Shop business into a franchise model?…etc.

Business Model:  This section details your Coffee Shop concept using the business model canvas method. In a visually appealing table, we will detail your Coffee Shop’s key partners, activities, resources, value proposition, customer segments, customer relationship plan, marketing channels, cost structure and revenue streams.

Products & Services:  Next, we will talk in details about your various products and services. We will describe your different menu items including coffee drinks, coffee specialties, pastries, food items…etc. We will also provide information about your pricing by product or line of items.

Market Analysis: This important section describes the various market statistics and consumer trends in the Coffee Shop industry and explains how they support your Coffee Shop concept. The purpose of this section is to show that the market conditions are favorable for launching your new Coffee Shop concept.

Global Market Trends: In this sub-section of the market analysis, we will discuss the latest global market trends in the Coffee Shop industry. We will look at the global industry size, growth rate, growth diving factors and consumer trends.

Local Market Trends: This sub-section explains the local market trends that are relevant to your particular Coffee Shop business.

Target Customers:  In this section, we will describe your various customer profiles by providing information about their demographics, behavior and purchasing habits.

Competitive Analysis: We will analyze key competitors active in your target market and provide insights about their strengths and weaknesses.

Competitive Advantages: After looking at the competitive landscape, we will then show how your Coffee Shop business is differentiating itself from the competition through a number of key advantages.

SWOT Analysis: This section features a 4-quadrant table with explanations about how your Coffee Shop intends to leverage its key strengths, mitigate weaknesses, capture opportunities and thwart any future threats.

Marketing Plan : This chapter provides detailed information about your go-to-market strategy.

Branding & Awareness: We will describe in this sub-section your choice of key marketing channels to build branding and awareness.

Customer Acquisition: We will describe in this sub-section your choice of key marketing channels to acquire customers and increase sales.

Operating Plan: This chapter provides information about your Coffee Shop’s opening hours, internal processes and describes the interactions between various key departments and teams.

Management Team: It is very important to present the key people behind your Coffee Shop project and thus we have dedicated a section for this very purpose. It is also important to talk here about the founder’s vision, his past education and professional experience.

Hiring Plan: No business can succeed without having on board the right team. This section lists all the key positions you plan to hire with information about their salaries and expected start dates.

Key Milestones: To be able to launch and execute your Coffee Shop project, you need to follow a set of actionable tasks with target deadlines. This section serves this purpose.

Financial Plan: Without a robust financial plan, your Coffee Shop business plan would be an incomplete document. This important section provides crucial information about your pro-forma financial projections and shows that you have really done your homework. The data mentioned in this and the following sections will be provided by the Excel financial model accompanying your Coffee Shop business plan.

Projected Revenue: This module shows your Coffee Shop’s revenue projections over the next three years.

Projected Profit and Loss: This module shows your Coffee Shop’s income statement (also called profit and loss statement) over the next three years. Your income statement includes detailed projections about your sales and expenses and shows how your Coffee Shop’s revenue is converted into a net profit.

Projected Cash Flows: This module shows your Coffee Shop’s cash flow projections over the next three years. The first year of operation is even detailed on a monthly basis. Your cash flow statement will detail the various cash inflows your Coffee Shop will generate from its day to day operations and from funding sources, as well as the various cash outflows required to pay for operating expenses and business investments.

Projected Balance Sheet : This module shows your Coffee Shop’s balance sheet projections over the next three years. The balance sheet will provide a summary of your Coffee Shop’s short term and long term assets in addition to your short term and long term liabilities and capital.

Profitability Analysis: In this section, we will provide information about your gross margin, net margin and discuss the profitability of your Coffee Shop business.

Funding Requirement: This module states the amount of funding your need to be able to comfortably launch your Coffee Shop business. It also describes the planned allocation of the funds between opex and capex.

Conclusion : Finally, we will conclude your business plan by recapitulating the key points that make your Coffee Shop project compelling and reiterate the rationale behind your business opportunity.

Why Use our Ready-Made Coffee Shop Business Plan?

• Speed & Convenience: Once you complete your order, you will receive the coffee shop business plan directly in your mailbox. Since it is already pre-written with fully customizable financials, you will only need to spend a couple of hours to edit it and adapt it to your own coffee shop project.
• High Quality: Your coffee shop business plan has been written by our professional team of business plan writers and experts from the F&B industry. You will receive a professional coffee shop business plan template ideal for presenting to potential investors or banks.
• Low-Cost: Our pre-written coffee shop business plan template is the most cost-effective solution in case you need to build a solid and professional coffee shop business plan. We are confident you will save hundreds if not thousands of dollars by ordering our premium business plan compared to hiring a consultant or subscribing to complicated and expensive software.

If you have any question regarding our ready-made coffee shop business plan package, do not hesitate to contact us , we are here to help.

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