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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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• STARTUP COURSE AND DOCUMENTS

Are Small Coffee Shops Profitable? (Case Study Example Included)

Coffee shops seem to be popping up everywhere. In the United States alone, there are 37,189 coffeehouse stores as of the year 2020 with a market share of $45.4 billion, per Statista. According to Urban Bean Coffee, 64% of Americans aged 18 and over drank coffee every day as of 2019. The website The Business of Business states that the average person in the United States spends $1,100 per year on coffee. With people flocking to national chains such as Starbucks and Dunkin Donuts, is there any place left for the small coffee shop in America? Better yet, is owning a small coffee shop ring profitable anymore?

Table of Contents

The average profit margin for a small coffee shop is 2.5 percent, which is much lower than the big coffee chains. Because direct costs average approximately 15 percent of a small coffee shop’s operating expenses, small coffee shops must sell their product in extremely high volumes to be profitable, according to the Houston Chronicle.

There are many factors that go into making a small coffee shop successful, and there are many expenditures that you will incur as a small business owner. These operating expenses include startup costs, rent or mortgage; labor expenses; insurance premiums; legal fees; and advertising and marketing expenses.

Startup Costs

As is the case with any small business, you will incur quite a few startup expenses when you start your own coffee shop. The website How To Start An LLC states that it will cost you anywhere from $25,000 to $300,000 to start a small coffee shop. Of all of the startup costs associated with starting a coffee shop, your supplies and equipment are going to be the highest costs.

I have listed several pieces of equipment, along with supplies, that you are going to need to open a small coffee shop. I have also given the average price of these supplies and equipment below:

• Coffee – Expect to spend around $1,000 for your first month supply of coffee
• Milk – You are going to need around 15 gallons, or approximately $45 worth, of milk for your first month
• Sugar – A month’s supply of sugar is going to cost you around $75
• Water Filtration System – this necessity will cost you between $650 and $800
• Espresso Machine – A high-quality, commercial-grade espresso maker will cost anywhere from $10,000 to $20,000
• Drip Coffee Machines – A full drip coffee setup will cost approximately $1,500
• Refrigerators – Depending on the space your coffee shop needs, expect to spend between $1,000 in $2,000
• Coffee Grinders – Espresso coffee grinders cost around $1,400 to $3,200. Drip coffee grinders will cost you in the neighborhood of $1,000

Rent or Mortgage

Next to startup costs, your rent is going to be the second-largest operating expense your small coffee shop has. There are several factors that can determine how much you are going to pay for rent. A few of these factors include location, square footage oh, and the condition of the building. Location and the condition of the building generally go hand-in-hand because that our buildings are most often found in better neighborhoods.

If you are planning to build a brick-and-mortar coffee shop from the ground up, there are going to be several costs associated with this particular business venture. You are probably going to have to hire an architect to design your building. You are also going to have to hire a construction crew to make sure that the building gets built. There are also many permits that you are going to have to obtain to make sure that your coffee shop gets built.

Purchasing an existing space may be a better option because there are going to be fewer costs associated with buying an existing building. If you purchase an existing building, make sure that it suits the needs of your coffee shop. Remember, you can always make adjustments and additions later as your business grows.

Labor Expenses

A business is only as good as its employees. That’s why your labor expenses are one of the most important operating expenses your business will incur. Hiring quality employees is a process that takes time, patience, and a significant amount of money. However, it will all be worth it when your coffee shop is staffed according to your expectations.

I would sincerely advise against skimping when it comes to labor expenses. There is an old saying that says that you get what you pay for. If you want quality employees, you are going to have to offer a competitive salary. You will probably also have to offer some employee benefits or incentives to keep your employees happy. I would suggest doing this because happy employees usually make customers happy as well.

Insurance Premiums

While you may not legally be required to carry insurance on your coffee shop, I would highly suggest at least investing in a good liability insurance policy. The insurance provider Geico states that liability insurance covers damages and injuries to a person or property caused by an accident at which you are at fault.

There are two different aspects of liability insurance, which are bodily damage and property damage. Bodily injury pays for any injuries suffered in an accident, while property damage covers damage to a property by which you are responsible. I strongly suggest having property and liability insurance because you never know what the future holds. Accidents can happen in the blink of an eye, and you want to be covered when the inevitable happens.

As I’m sure you can see, having insurance, I text you against costly lawsuits. Your premiums may seem like an unnecessary expense right now, but you will thank me when they prevent you from getting sued as a result of an accident that caused either bodily injury or property damage.

Check out more start up information HERE .

Just like insurance, having legal fees may seem like an unnecessary operating expense that your coffee shop does not need. However, I would disagree. You never know when having a lawyer at your coffee shop’s disposal will pay huge dividends. There are many benefits to having an attorney on retainer for your small business.

According to FL Patel Law, a few of the many benefits of having a business lawyer for your small business include: Helping you to choose a proper small business structure Preventing lawsuits Assisting you in drafting contracts Helping to protect your intellectual property Assisting you with real estate leases and agreements

When factoring in your operating expenses, I would strongly suggest budgeting for the ability to keep an attorney on retainer. Again, you may find it to be an unnecessary expense. However, having an attorney on hand can prevent you from losing tens or hundreds of thousands of dollars in costly lawsuits.

Advertising or Marketing Expenses

Advertising and marketing expenses are other important operating expenses that will help you to grow and expand your coffee shop. There are many avenues of marketing that you can pursue your coffee shop. Some of these will be free of charge, While others will have a cost associated with it.

So, how much should you spend on advertising and marketing? I’m glad you asked. The website Vendux states that the US small business administration recommends allotting 7 percent to 8 percent of your gross revenue as your advertising and marketing budget. While there are marketing firms that can design an advertising campaign to suit your coffee shop, there are many ways to advertise your business that will cost you nothing at all.

One of the most effective ways to advertise your coffee shop is something that I would wager that you use every single day. Of course, I’m referring to your social media accounts. You can use Twitter, Facebook, Instagram, and Tik-Tok to your advantage by using them as marketing tools for your coffee shop. However, I would recommend using separate profiles for your personal social media and your business social media. Another tip I would like to offer is that you should always keep it professional, whether you are using your personal or business social media. Remember that you are representing your business at all times and should act accordingly.

Case Study Example: A small coffee shop owner in Ohio recently itemized all of his revenue and expenses as an example of what the average small coffee shop owner can expect in regards to profit. It was as follows:

Trailing twelve months revenue – $296,000

COGS / food, drink, apparel / – $93,000 (31.4%)

Materials and Supplies / cups, napkins, towels, toilet paper, etc. / – $15,000 (5%)

Labor – $63,000 (does not include salary to myself) (21.2%)

Advertising – $5,000 (1.7%)

Rent – $7,200 (2.5%)

Utilities – $8,300 (2.8%)

Repairs and Maintenance – $5,300 (1.8%)

Insurance, Taxes, Licenses, Office Supplies – $4,200 (1.4%)

Credit Card Fees and Loyalty Program – $5,300 (1.8%)

Loan payback – $9,500 (3.1%)

Everything else – $5,900 (3.8%)

Profit before paying myself – $74,500 (25.2%)

That would put his profit somewhere around $45,000 (15.2%).

We have learned that with a profit margin of around 2.5 percent, your small coffee shop may not be as profitable as some of the larger franchise chains. However, it can still be profitable. Unfortunately, there is nothing that you can do in regards to fixed costs such as rent or mortgage. You can make changes to the variable expenses associated with your operating expenses if you want to be more profitable. A few of the things that you can change or because of your supplies by switching vendors; cost of your equipment by shopping around, or purchasing previously owned equipment; and by making your coffee shop more efficient and ergonomic for your workforce.

Frequently Asked Questions

One of the great debates in business, whether large or small, is whether to incorporate yourself or to start LLC. The website How To Start an LLC recommends making your small coffee shop a limited liability company. This is recommended because of your ability to separate your business and your personal assets. You are also getting a straightforward business structure.

To answer this, let’s take a look at the definition of the term ergonomics, which is the study of efficiency in the workplace. Your coffee shop should be ergonomic because it allows your employees to be much more efficient and productive, which means that they are serving your customers faster. Customers that are served in a friendly and speedy manner will be much more likely to become repeat customers.

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

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

Hi! I’m Shawn Chun

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

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

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

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

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

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

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

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How To Start A Coffee Shop (2024 Guide)

Updated: May 1, 2024, 5:13pm

Table of Contents

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

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

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

Create a Business Plan

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

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

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Choose Your Business Structure

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

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

Consider Costs: Funding and Finances

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

1. Have a Vision

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

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

2. Do Your Research

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

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

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

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

3. Identify Startup Cost and Equipment

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

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

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

4. Develop a Branding Strategy

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

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

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

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

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

5. Find a Location and Commercial Space

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

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

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

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

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

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

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

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6. File for Permits and Licenses

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

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

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

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

7. Choose the Right Coffee Supplier

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

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

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

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

Customer Service

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

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

8. Design Layout and Workflow

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

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

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

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

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

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

9. Order Equipment and Supplies

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

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

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

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

10. Hire and Train Your Team

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

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

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

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

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

11. Market Your Brand

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

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

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

12. Open House

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

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

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

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

Invest in a Strong Point-of-Sale System

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

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

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

Stay Ahead of the Game

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

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

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

Opening an Independent Coffee Shop

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

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

Opening a Franchise Coffee Shop

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

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

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

Bottom Line

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

How profitable is a coffee shop?

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

Do I need any qualifications to run my own café?

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

How do I write a simple business plan?

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

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Case Study: Possible Sustainability Practices for Coffee Shops in the Philippines Masters of Business Administration BUS 6100: Global Business

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Case Study Analysis: Opening a Coffee Shop Case Study

Introduction, analysis of the case, addressing key issues.

The Korean market continues to experience positive trends and opportunities for foreign and local investors. This country’s expanding economy, favorable conditions, and availability of disposable income are critical aspects that support any business organization’s performance and growth. Detailed analyses of the existing competitors and the changing tastes and preferences of Koreans will amount to evidence-based approaches for starting a new business. The insights gained from such a study will support the formulation of the best procedures for entry, continuous improvement, and customer satisfaction. To open their coffee shop successfully, Kevin Andes and Min-Guk “MG” Kim should consider a differentiation strategy to offer the best coffee product, shop design, comfort, and experience to the targeted university students.

The article “Trying to Create a Stir: Opening a Coffee Shop in Korea”, describes the conversation that Andes and Kim had in an effort to launch a coffee shop in Korea. These academicians possessed adequate competencies in the fields of business operations and management. Such attributes were desirable and critical for any entrepreneur. Their deliberations revealed that most of Korean citizens were becoming wealthier and willing to spend more money on different products, services, and even coffee (Moon & Kupetz, 2011). The country’s booming economy was encouraging more people to focus on the quality of the available education, better lifestyles, and improved conditions. Most of the citizens in Korea referred to coffee shops “as the third place” (Moon & Kupetz, 2011, p. 4). The nature of such realities compelled the duo to consider the best approaches to invest in the country and achieve their potential.

Unfortunately, a number of challenges existed that were capable of affecting the move to launch a new business in the selected country. For instance, the dynamics recorded in the coffee market remained diverse and worth analyzing. The majority of the people had developed a unique relationship between the desire for education and coffee shops. Individuals would select the available options based on a wide range of factors, including comfort, access to books and magazine, and the ability to meet friends (Moon & Kupetz, 2011). Cost of coffee, duration allowed in the shop, quality of services, and location were critical aspects that most of the customers took into consideration. Thabit and Raewf (2018) indicate that the 4P marketing model is critical whenever selecting and pursuing a business idea. Consequently, investors need to select the best place, competitive prices, offer quality, and use appropriate promotional attributes. This theory could guide Andes and Kim to make the most appropriate decision if they were to succeed in the selected market.

To have successful business operations, most of the companies in the coffee sector had to consider numerous factors. For instance, Moon and Kupetz (2011) indicate that franchisees had to pay huge amounts of royalties to their respective parent foreign corporations. Nonetheless, the U.S. Commercial Service (2002) revealed that more Koreans demanded high-quality coffee associated with American companies (Moon & Kupetz, 2011). Young Koreans were willing to spend around 4,000 won on coffee if they met their friends for more hours (Moon & Kupetz, 2011). Some of the successful brands owned by local conglomerates, such as Angel-in-Us, would be unwilling to have their business models changed. Franchisors would only allow businesses to make minimum changes on a number of business attributes. Agency theory remains a powerful framework that explains why firms engaging in franchising do not encourage changes in the original business model (Wu et al., 2018). The ultimate aim is for the parent companies to maintain their business image while ensuring that the intended clients receive high-quality products or services.

With this kind of background information, Andes and Kim were unable to decide whether to franchise or start their own business. Despite this conundrum, the Korean market continued to record a number of positive attributes, including population growth, desire for quality, and consumers’ willingness to dispose of more financial resources (Moon & Kupetz, 2011). The mode of entry concept in international business theory guides companies in determining how to start a new business venture (Moon & Kupetz, 2011). The organizational theory was another critical model for Andes and Kim to consider if they were to achieve their objectives in a timely manner. Having settled on the best decision, the duo would be required to consider how to pursue operations, develop strategy, and focus on continuous improvement. With all these questions and concerns in mind, the two realized that the journey towards having their successful coffee shop venture was yet to begin.

The above section has outlined several concerns that Andes and Kim had to address if they were to make their dream of having a coffee shop in the growing Korean market a reality. Based on such aspects, the first outstanding issue was how to launch the intended business in accordance with the prevailing conditions, opportunities, and challenges. These two possible options are evident from the studied case: differentiation and brand (Moon & Kupetz, 2011). The choice to focus primarily on the best brand meant that the partners had to take the idea of franchising seriously. However, a number of challenges would affect such a choice and even have significant implications on the financial outcomes. The move to differentiate their proposed business was still a viable business idea at the time.

The second notable issue was how to redesign the intended coffee shop irrespective of the selected mode of entry. While franchising could have addressed most of the predicaments many startups face in different markets; the option could have detrimental impacts on continuous profitability due to the requirements of the parent company. Such a choice would limit the options of improving their brands, including the addition of new features and the consideration of additional facilities for the intended customers (Wu et al., 2018). These issues would make the franchising option less favorable and incapable of delivering most of the anticipated results.

The third predicament revolved around the move to differentiate their first coffee shop and ensure that it was capable of providing unique experiences to the customers. The partners were not sure how they could select the best location due to financial constraints. They continued to wrestle with the option of providing both and wine in their outlets. The relationship between English education and coffee emerged as an issue if they wanted to target and attract the expanding student market in the country (Moon & Kupetz, 2011). The two individuals were keen on the best coffee product or option that had the potential to deliver an unforgettable experience to the customer. Without concrete answers to most of these issues, the duo had to think deeper if they were to define, develop, and implement the most practical strategy for their coffee business venture.

The studied case study reveals that Andes and Kim had succeeded to analyze the opportunities and challenges that had the potential to impact the success of a new coffee shop in Korea. The presented insights show conclusively that the selected market was becoming viable and capable of supporting such a business. The presence of numerous franchisees and existing local coffee shops did not affect the competitiveness and success of such a venture. Moon and Kupetz (2011) observed that such businesses were on the rise since the government has reduced most of the existing barriers to entry. Additionally, coffee businesses and shop would need minimum startup costs. These prevailing conditions were, therefore, favorable and capable of guiding the duo to launch the intended business ideas successfully.

With this kind of understanding, Andes and Kim needed to consider the most appropriate mode of entry that was capable of promoting sustainability, competitiveness, and profitability in the long run. After analyzing the existing issues and opportunities, the business partners could achieve the intended primary goal by pursuing the differentiation strategy. The case begins by revealing that Andes, a retiree in the field of entrepreneurship, had adequate capital to fund the proposed company (Moon & Kupetz, 2011). This step would guide the two to identify specific locations in the country where they could launch their business idea successfully. The approach would guide them to consider the best menu, theme for different outlets, and areas with an increasing number of campus students.

The academic credentials of these individuals could be helpful in guiding their decision-making processes, developing proper marketing strategies, and identifying new approaches to target more customers. The option to partner with one of the institutions could make it easier for them to start the business with less than 100,000 US dollars (Moon & Kupetz, 2011). Such an approach would result in reduced expenses while supporting the business to expand in accordance with the developed timeframe (Shen et al., 2017). The decision to focus on differentiation would allow the partners to include magazines and games, thereby supporting the learning objectives of more students. They would consider what to include in their shops based on the preferences, tastes, and expectations of more customers in each specific location.

After launching the first shop, Andes and Kim would find a strong reason to personalize most of the available services and coffee. They would consider the importance of having adequate space while allowing the targeted students to study and meet their friends. The new venture would introduce kimchi, the staple food of the Koreans, in an effort to maximize sales and fulfill the notion that coffee shops are the third place after workplace and home (Moon & Kupetz, 2011). These approaches are evidence-based in nature, informed by the prevailing conditions in the studied market, and capable of supporting a startup without encountering numerous challenges. The idea of continuous improvement would be appropriate for the partners if the new venture was to overcome the challenge of competition (Moon & Kupetz, 2011). Such initiatives would eventually support the delivery of profits within the shortest time possible.

Andes and Kim are staring at a unique business opportunity since Korea is one of the growing destinations with a wide range of opportunities for startups. Unfortunately, some key problems capable of affecting their shared dream of having a coffee shop exist. The leading ones include the inability to select the best mode of entry, issues revolving around franchising, and the most appropriate approach for customizing their products. Most of the dynamics recorded in Korea present additional concerns before launching a new business successfully, such as the demand for comfort, the coffee-English language relationship, increasing preference for foreign brands, and uniqueness of the people’s culture. After considering all these factors, the partners should settle on differentiation since the choice is plausible, reduces barriers to entry, requires reduced costs, and provides numerous options for customizing their services and products.

Moon, G., & Kupetz, A. H. (2011). Trying to create a stir: Opening a coffee shop in Korea . Ivey ID: 9B15C002. Ivey Publishing.

Shen, Z., Puig, F., & Paul, J. (2017). Foreign market entry mode research: A review and research agenda. The International Trade Journal, 31 (5), 429-456.

Thabit, T. H., & Raewf, M. B. (2018). The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4 (4), 100-109.

Wu, C., Huang, F., Huang, C., & Zhang, H. (2018). Entry mode, market selection, and innovation performance . Sustainability, 10 (11), 4222-4245.

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IvyPanda. (2023, August 7). Case Study Analysis: Opening a Coffee Shop. https://ivypanda.com/essays/case-study-analysis-opening-a-coffee-shop/

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Case Study Example: Starting a Coffee Shop Business

Choice of Country

In the modern world, coffee shops have become a trending business. The coffee trading community is now majorly characterized by an increase in the sophistication of baristas and coffee shops. Ideally, in this largely expanding business, there seems to be much business potential. Therefore, starting a coffee shop would be a plausible idea in the wake of modernity that surrounds every business environment. However, what matters most is not the business idea but the successful execution of the same. One would think that starting a coffee shop would be a very simple task; it wouldnt. Consequently, there are a variety of significant considerations to undertake when starting a coffee shop.

This consideration may vary according to the location in the country of operation. For this instance, we wish to consider starting a coffee shop in France. France being a European Union member country has a lot of business potential compounded with the friendly yet challenging business environment. According to the World Bank Survey, France is ranked at number 6 in the list of the best European countries to start a business in. There are many logistical and structural factors that have worked to place France at this position. Meaning France has a relatively suitable business environment that can be appropriate for the business of a coffee shop.

There are reasons why France is a good choice for such a business, but it is not only because it was ranked top ten in the World Bank survey. However, it is because the culture of the French people and the friendly business environment allows for the growth of such medium scale businesses to flourish to their optimal potential. The French love and appreciation culture, art, and authenticity. Furthermore, France has very few operations that one should accomplish before starting a business. The actual number of the operations currently stands at five. Consequently, the time in days that is takes to start a legal business is 7 working days. In addition to these, there is no minimum amount one has to deposit in his or her bank for one to start a business.

The labor laws in France are quite flexible; transportation infrastructure is not an issue. Therefore, staff management and transportation of supplies would be among the smooth running operations that the business will experience. Moreover, security is France is optimal and guarantees the safety of the business as well as the consumer. Other regulatory measures that could bring structural challenges for the business are well commissioned to ensure foreign businesses flourish in this alien but yet friendly business environment. Hence, there would be no difficult logistical or cultural challenges that the coffee shop is set to experience once the business is established in France.

Essentially, the facts proven above stand to show that France is one of the best European countries where one would like to start a business. The facts mentioned above depict the good regulatory environment for business operations. With regard to the needs of the expanding the coffee shop business, France offers a unique set of cultures and a market that is vibrant to the coffee beverage and the additional pleasures that come with it. It would be essential to consider that the locality in which to start the business is one of the significant factors that drive the business to potential success (Banalieva and Dhanaraj, 2013). In view of this, France relatively offers the best environment to achieve such a reality in the coffee shop business. Therefore, France would be the most viable option for the country in which to start a coffee shop business.

Marketing Mix

The marketing mix is a set of tools or rather ideals that create a situation where marketing objectives in a target market are being accomplished without a fuss (Jain, 2013). The marketing mix in this scenario is, therefore, going to focus on France as the location in which the target market exists. In view of this, we will employ the 4 Ps and 7 Ps of the marketing mix to come up with proper marketing strategies.

The high-quality product is the coffee. The company will have to use the finest coffee bean that will create a signature blend that relates to the purpose of the company to achieve this level of quality. The coffee will be sourced from Uganda, where a Fairtrade supplier will be used to get specialty coffee beans which are ethical, quality and sustainability concerns will be substantiated to appeal to the concerns of the customers in France

The price will be relatively similar to the other coffee shops operating in the vicinity. One price consideration that is significant is the price for consumer coffee at the retail level. This will highly be used to come up with a relatively appealing price range that is also profitable to the coffee shop.

In the light of the popularity of the internet, it will be the most important marketing tool to be implemented for promotion purposes. Consequently, the use of traditional print media will be used and place at places where the targeted population which appreciates signature blends of high-quality coffee are situated.

The coffee shop will be placed in the vicinity of the target population. Possible places will include central business districts, near colleges, universities, art institutes and leisure centers. Consequently, around residential places where the community appreciates good coffee that is of high quality.

Physical Evidence

The coffee shop will be unique with a blend of artifacts and interior design that speaks of where the coffee was sourced from. This would involve creating an East African Aura in and around the coffee shop. The coffee shop would have an ideal space for continuous interaction among customers (Khan, 2014), including themed nights that would appeal to the art loving and a fun loving segment of the target population. Furniture, paintings, music playing in the background and the color of the coffee shop will be structured to create an African feeling.

The staff will be dressed in African attire, and the service delivery will be in either English or French language. This would work to creating a foreign and adventurous ambiance while maintaining a form of connection to the native location of the business without creating any language barriers (Piekkari, Welch and Welch, 2014). The staff will be friendly, interactive and highly trained to serve in the coffee shop (Khan, 2014). This would make the customer appreciate being in such a lovely, hospitable and yet professional business establishment.

The business should be characterized by the unique blueprint of the service delivery process which includes a service charter that ensures ethical and professional standards are catered for. Excellent service delivery and customer prioritization will be significant to the business (Jain, 2013). Resource requirements will be highly met in due time to ensure the smooth running of the business operations.

Implications of Business Expansion

The implications of expanding the business to a different country may vary in many ways. However, this implication may determine if the process of business expansion will be successful or not. One has to consider very many factors when expanding a business into a foreign country. Information about the ethical considerations about the product, technical and structural challenges of managing the business. Actually, there are two aspects whose contribution to the business may be impacted significantly due to expansion. They include:

Organizational Culture

Human relations Management is a very important aspect of the business. With excellent management of human resources, the work environment is set to be suitable for the growth of individual performance of the employees. Furthermore, this works to foster a harmonious working environment that enables the creation of professional yet friendly interpersonal relationship that create an organizational culture that works towards the purpose, mission, and vision of the organization. However, expanding the business to a different country may make this really challenging to accomplish. This may be due to the native culture of the country which is mainly depicted by modes of dressing, food and beverage preferences, language and religious inclinations (Banalieva and Dhanaraj, 2013). For the organization to prosper in a foreign country, all these factors would be considered. Furthermore, there are legal and ethical considerations that may change from one country to another.

Therefore, adequate research should be conducted by officials or experts on the ground. The research is focused on attaining important information that will be used in the creation of criteria in which various aspects that govern the structure of an organizational culture will be realized. For example, the importance of professional standards in the country. Consequently, there is the issue of language which affects the aspects of communication resoundingly. The issue of language barrier needs to be eliminated by finding staff who are fluent in both English and French to achieve a suitable culture in which employees will be comfortable working in. This would avoid any communication issue related to or occur as a result of the issue of language barriers (Piekkari, Welch and Welch, 2014). Correspondingly, the organizational culture will be maintained through the constant assurance that ethical, as well as professional standards, are being met. Together will the proper appreciation of high performing employees and compensation measures that increase the value of the job in the employees life.

Information Systems

Technology has made most business operation become easy tasks that are less time intensive. This has been due to the creation of business information systems that are automated and require that they are operated by computer literate personnel with required knowledge of how the system works. With the expansion of an organization, the business information system ought to be expanded too. Therefore, the expansion will happen in the hardware and software capacity. This alludes that the business information system will be customized further to include the expanded section of the business be in an affiliation or business in a different country.

The implications of business expansion on the information system will include the need for new hardware and software equipment whose system requirements will match those of the already installed system. Furthermore, the availability of internet that is fast to allow communication as well a free, fast and reliable Wi-Fi service that will be the joy of the customers. Consequently, the additional system installed at the new outlets of the coffee shop will need personnel to operate it from time to time. Further implications will include the funds that will be used to acquire the said hardware, software and people to run the system to ensure data entry into the records management will be done dutifully.

Correspondingly, the information system will require that maintenance and system upgrade and backup are done from time to time which may require more resources. Therefore, the expansion of the business into a different country will carry with it additional costs which will be incurred due to the process of expanding the information system to fit the current capacity of the organization. An optimally working system will guarantee efficient and effective communication as well as smooth running of system-oriented business operations in a time conscious manner.

Financial Considerations on Expanding the Business

Looking at the financial aspect of business expansion, one realizes that it would cost more to start a business in another country that the country they already operat...

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Waldi’s Pizza Shop serves up an easy online shopping experience with PayPal Checkout

PayPal Editorial Staff

May 8, 2024

Sebastian Maletzke started making pizzas for his friends in his parents’ old wood-burning oven. Now, over a decade later, he’s giving cooking advice to a global audience of YouTube subscribers and providing delicious pizza ingredients via his online shop, Waldi’s Pizza.

Success metrics

• 88% of customers pay with PayPal since migration to PayPal Checkout. 2
• 40% increase in sales with PayPal. 2

The opportunity – Waldi’s Pizza Shop wanted to find the best way to get quality ingredients to their customers.

When Maletzke started his YouTube channel in 2019, he spent most of his time driving to weekly markets and company parties to sell his pizza. After the Waldi’s Pizza channel took off, currently reaching 100,000 subscribers, he knew he needed a better way to get his products to customers. 1

“It made sense to me to go live with an online shop,” Maletzke said. “Somewhere my pizza community could find the exact products they know from my videos.”

The solution – Waldi’s Pizza Shop found an effortless solution through JTL and PayPal Checkout.

Maletzke worked with multichannel provider JTL to create Waldi’s Pizza Shop. With their support, Waldi’s was able to streamline processes, generating efficiencies with ordering, shipping, and customer communications.

As the operation expanded, Maletzke knew he needed to find a payment solution that could provide customers with a more seamless checkout experience . And so, he turned to PayPal Checkout .

Thanks to the convenient infrastructure of his website and JTL’s strong relationship with PayPal , it took Maletzke only a few quick steps to link his online shop to PayPal Checkout. “Implementing PayPal as a payment method was easy. It took no more than fifteen minutes,” he said. “It’s simply the most practical for me and my team to have everything from a single source.”

It wasn’t just the almost effortless implementation of PayPal Checkout that grabbed Maletzke’s attention. “What convinced me was the significantly larger range of functions.” The PayPal plugin offers button customization and choice. “I just want to offer people the payment method they expect.” Features like PayPal Pay Later “ensure people have the best possible experience in my JTL store.”

The impact – PayPal Checkout is helping Waldi’s Pizza Shop gain trust and cross borders.

While Maletzk’s YouTube content focuses on making pizza, he still considers building relationships the most important part of his business. “Though they simply know me as Waldi, my customers trust me. They like that I’m uncomplicated. Using PayPal is another way I can show them that, making it easy and secure for them to shop.”

Maletzke has seen 88% of his customers choose PayPal as a payment method since his move to PayPal Checkout, resulting in a nearly 40% increase in sales among PayPal users. 2 Most importantly, PayPal Checkout gives him the payments foundation to expand across borders.

Maletzke hopes to make it easy for customers in Luxembourg, France, and Poland to shop from his store, and PayPal Checkout’s ten local and regional payment methods make this possible.

From loyal followers to future customers, Waldi’s Pizza strives to ensure every customer has a pleasant shipping experience. This is why Meletzk firmly believes “PayPal is a must in my JTL shop.”

Learn how PayPal can help your small business .

JTL & Waldi’s Pizza Case Study (PDF)

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The 50 best coffee shops and best cafes in Samara Oblast

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