coffee shop business plan uk

How to start a café or coffee shop

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

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

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

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

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

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Read on to find out more…

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

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What Does Your Business Need Help With?

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

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

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

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

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

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

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

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

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

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

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

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

Need help staying organised?

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

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

Find out which project management tool we think is best .

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

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

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

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

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

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

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

Managing your money

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Location and size are key when choosing a premises

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Essential kit includes:

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

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

Utilities 

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

Supplies/suppliers

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

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

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

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

You can find suppliers in the following ways:

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

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

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

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

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

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

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

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

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

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

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

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

Social media

Loyalty programmes

Traditional marketing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Related articles.

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.

Small Business UK

Advice and Ideas for UK Small Businesses and SMEs

How to start your own coffee shop

Keep reviewing your coffee shop business plan

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

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

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

What should be included in my coffee shop business plan?

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

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

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

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

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

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

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

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

Your business proposition and USP

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

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

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

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

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

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

You can find out more about Small Business Pro here .

Where should I should set up my coffee shop?

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

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

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

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

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

How much money will I need?

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

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

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

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

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

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

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

Choosing the right coffee

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

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

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

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

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

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

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

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

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

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

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

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

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

What coffee shop equipment should I be buying?

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

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

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

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

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

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

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

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

Hiring staff and training

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

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

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

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

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

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

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

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

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

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

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

Legal considerations

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Marketing your coffee shop

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Trade Shows

Food & drink trade shows for coffee shop owners.

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Five successful business ideas for 2021

Anna Jordan

Anna is Senior Reporter, covering topics affecting SMEs such as grant funding, managing employees and the day-to-day running of a business. More by Anna Jordan

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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

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“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

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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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How to start a business plan for a coffee shop

Table of Contents

Market research

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

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

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

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

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

Specifically, we’ll be talking about:

• Marketing 

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

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

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

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

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

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

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

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

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

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

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

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

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

For example:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Find out more here .

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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

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

6. Marketing Plan

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

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

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

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

Read more: how to do market research research

7. Funding Request

Read more: ways to find investors for your business

8. Management Summary

9. Financial Highlights

Financial Indicators

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

Break even analysis

Profit and Loss Statement

Projected Cash Flow

Projected Balance Sheet

Coffee Shop Business Plan Sample. FAQs:

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

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

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

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

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

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

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

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

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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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How much does it cost to open a coffee shop: initial investment breakdown.

Embarking on the journey to open a coffee shop is an exciting venture that combines passion with entrepreneurship. The aroma of freshly brewed coffee and the prospect of creating a space where customers can enjoy a cup are enticing, yet the financial aspect remains a critical factor. Understanding the costs involved is essential, as they will vary widely based on factors like location, size, and the specific business model you choose, whether it is a small mobile coffee stand or a full-sized café with seating.

Initial expenditures will encompass a range of items from premises rent or purchase to equipment costs and inventory. At a basic level, setting up a mobile coffee stand can be more economical, while establishing a traditional café will likely require a more substantial investment. Detailed financial planning is crucial to ensure you cover all necessary expenses and have a buffer for any unforeseen costs. It’s important to be realistic about your budget and operational costs to lay a strong foundation for your business.

Navigating the financial landscape of starting your own café can seem daunting, but you’re not alone in this process. It’s estimated that a coffee shop’s start-up costs can be between £18,000 and £55,000 for smaller ventures, and closer to £60,000 or more for larger establishments with seating areas. As you delve deeper, you’ll discover the varied facets of financial planning that will help turn your coffee shop dream into a reality.

Conceptualising Your Coffee Shop

Vision and Brand Identity

Your vision for your coffee shop is the heartbeat of your business plan. It’s what sets you apart in a competitive café culture. Consider what you want your coffee business to represent; it’s not just about serving great coffee, but also about fostering a community and creating an experience. Perhaps you envision a local gathering place, or maybe you aspire to be the trendiest espresso bar in town. This vision—your brand identity —will inform every decision, from design to marketing.

Choosing a Theme and Design

Selecting a theme for your coffee shop contributes significantly to its overall branding . British coffee association trends might inspire a cosy, traditional ambience or a modern, minimalist vibe. The design elements you choose should reflect your café’s personality and appeal to your target audience. From the furnishings to the menu board, every detail should resonate with your brand identity. It’s crucial to strike a balance between aesthetic appeal and practicality in your design choices.

Finding the Perfect Location

Your coffee shop location can make or break your success. It’s important to conduct thorough research on various locales within the UK coffee shop market to find a spot that maximises visibility and accessibility to your intended market. Analyse foot traffic, competition density, and neighbourhood demographics. Remember, a prime location aligns with your vision and supports your business plan, ideally becoming a cornerstone of the coffee community you’re aiming to build.

Financial Planning and Costs

When opening a coffee shop, your financial planning must account for initial investment and ongoing expenses. Careful consideration of costs will help you navigate through loans, regulations, and taxes, ensuring a solid foundation for your income generation.

Estimating Startup Costs

To start your coffee shop, a significant initial investment is required. This includes expenses such as purchasing or leasing a premises, renovating the space, buying equipment, and initial marketing efforts to launch your brand. Depending on the scale and location, starting a coffee shop can require an investment ranging from £18,000 to £225,000 . It’s crucial to factor in the cost of licenses and permits which are mandatory to operate legally.

Calculating Operational Expenses

Your operational expenses will encompass regular costs like utilities , salaries , marketing , inventory, and business loans repayments if applicable. Operating Expenses (Opex) typically include sales , marketing , and administrative expenses . Accurate financial planning involves projecting your monthly cash flow to ensure that income meets or exceeds these costs, which can assist in securing additional financing if required.

Understanding Taxes and Regulations

Being aware of the taxes and regulations that apply to your coffee shop is fundamental. Business rates , a form of tax, are calculated based on the property’s value and can vary substantially. It’s also important to understand VAT rates as they apply to the items sold. Ensuring compliance with food safety and hygiene regulations is not only crucial for your customer’s safety but also for avoiding legal penalties. Familiarising yourself with employment law will affect your payroll calculations and staff management practices.

Setting Up Your Space

When opening a coffee shop, the physical space where you’ll serve customers underpins the entire business. It’s essential to focus on the size of the venue, the terms of your lease or purchase, design for an inviting atmosphere, and acquiring the right furnishings and equipment to create a pleasant and functional environment.

Securing a Venue and Negotiating Lease

Finding the right venue is pivotal. You need a space that’s the right size and in a good location. When negotiating your lease , key terms to consider include the length of the lease , rent expectations, and any clauses about future rent increases. If you’re opting to purchase , scrutinise the proposed sales agreement thoroughly, understanding all the financial obligations involved. Remember, the square footage will directly influence your seating capacity and, consequently, your atmosphere and revenue potential.

Designing Layout and Decor

Sourcing Furniture and Equipment

Furnishing your café is more than just picking out tables and chairs; it’s about creating a cohesive atmosphere that encourages customers to linger. Here’s what to consider:

• Furniture : Opt for durable, easy-to-clean pieces that match the aesthetic of your coffee shop.
• Equipment : Your coffee shop equipment will likely be your biggest expense. Prices for commercial coffee machines can start around £1,500.

Always remember to account for delivery times and potential back orders which can delay your opening date. It’s better to be prepared with all necessary furnishings and equipment well before your grand opening.

Operational Essentials

When opening a coffee shop, it’s essential to have a robust operational plan in place, focusing on supplier relationships, staff recruitment and training, as well as the required health and safety standards. These areas are crucial for the smooth running of your business and impact both the quality of your product and the satisfaction of your customers.

Selecting Suppliers and Inventory Management

You’ll need to carefully select your suppliers to ensure that you get high-quality supplies at the best prices. Look for suppliers that provide sustainably sourced coffee and those that can guarantee consistent deliveries. It’s imperative to implement an efficient inventory management system to maintain optimal stock levels, which helps prevent waste and ensure that you always have the necessary items, such as coffee beans and milk.

• Espresso Machine: Invest in a reliable espresso machine since it’s the cornerstone of a coffee shop.
• Products: Regularly review your products offer, ensuring they meet the quality standards your customers expect.

Recruiting and Training Staff

Your coffee shop’s success will largely depend on the quality of your service, so it’s important to recruit the right staff and invest in thorough training . Well-trained employees who understand customer service and can operate coffee machines skilfully are a must.

• Training: Implement comprehensive training programmes that cover barista skills, customer service, and food safety .
• Recruitment: Look for candidates who are not only skillful but also share your vision for providing top-notch service .

Establishing Health, Safety, and Quality Standards

Clear health and safety standards must be determined to ensure a safe environment for both customers and employees. Having the right licenses and permits in place is also crucial to operate legally and avoid any penalties.

• Permits and Licenses: Make sure you’re thoroughly knowledgeable about the local licenses and permits required to operate your coffee shop.
• Food Safety: Establish and maintain high food safety and quality standards to gain customer trust and comply with regulations.

Remember, your coffee shop’s reputation begins with the quality of your coffee and the consistency of your service . Your aim is not only to attract customers but to turn them into loyal advocates for your brand.

Marketing and Growth

To successfully propel your coffee shop forward, you need a robust strategy to build a loyal customer base and create a strong community presence that distinguishes you from the competition.

Building a Customer Base

Your first priority is to identify and understand your target audience . Demographic research will inform your marketing techniques and the services you offer. Begin with local market research to pinpoint the preferences and habits of your prospective customers. Offering loyalty programmes or discounts can be crucial in converting first-time visitors into regular customers.

Engaging with the Community and Marketing

Utilize both traditional and digital marketing tactics to engage with your local community . Sponsor local events or partner with other businesses to raise your profile and demonstrate your commitment to the community. Digital advertising, including social media outreach, will allow you to connect directly with your target customers. Encourage reviews and testimonials to build trust and credibility, which can significantly drive sales.

Frequently Asked Questions

Navigating the financial aspects of starting a coffee shop can be challenging. These FAQs provide clear information on costs, budgeting, profitability, and legal requirements.

What are the typical initial investment requirements for a small coffee shop?

To open a small coffee shop in the UK, you typically need a minimum investment ranging from £20,000 to £100,000. This includes expenses for rent, refurbishments, furniture, equipment, and initial stocking. Costs can vary widely depending on the shop’s size, style, and location.

What are the average monthly operating expenses for a coffee shop in the UK?

Monthly operating costs for a coffee shop in the UK can include rent, utilities, staff wages, ingredients, marketing, and more. On average, you may spend several thousand pounds per month to maintain your business, with exact figures varying based on the coffee shop’s size and location.

How can one establish a coffee shop on a modest budget?

Starting a coffee shop on a modest budget requires careful planning. It is crucial to minimise overheads, potentially by choosing a smaller location or limiting initial product offerings. Buying second-hand equipment or leasing can also reduce upfront costs.

What are the necessary steps and checklist items to consider when opening a café?

When opening a café, you should create a detailed business plan, choose a suitable location, secure financing, obtain necessary permits, design a welcoming space, source high-quality coffee and equipment, hire experienced staff, and implement an effective marketing strategy.

How much profit can an owner expect from a coffee shop in the UK?

Profitability depends on various factors, including location, foot traffic, pricing strategy, and cost control. A well-run coffee shop in the UK can expect a profit margin between 10% and 15% after covering expenses, but exceptional establishments may achieve higher margins.

What licensing is required to legally run a coffee shop in the UK?

To legally run a coffee shop in the UK, you need to comply with food safety regulations, which include obtaining a food business registration, a premises licence (if serving alcohol), and ensuring all staff have appropriate food hygiene training. Planning permission may also be required for certain changes to your premises.

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Coffee Shop Financial Plan Template [2024 Guide]

by I.J. Karam | Jan 1, 2024 | Business Plans , Financial Plan Guide

If you are planning to launch a Coffee Shop or if you are currently in the process of developing a Coffee Shop business plan , you are probably thinking how to build a robust Coffee Shop financial plan allowing you to better understand the business opportunity from a financial and economic perspective.

Moreover, if you are planning to raise funding for your Coffee Shop venture or simply wish to invite in a partner, a Coffee Shop financial plan and model is a must to be able to properly gauge the opportunity and make a strong case.

Coffee Shop Financial Plan Excel Template

Before we dive in our detailed guide that explains what to include in your Coffee Shop Financial Plan, you might be interested to check our Coffee Shop Business Plan Template that includes an automatic and fully customizable pro-forma financial model in Excel Spreadsheet tailored to the Coffee Shop business. Below are a couple of screenshots to give you an idea.

You don’t need any advanced accounting or financial knowledge to use or understand the Excel Spreadsheet financial plan, all you have to do is adjust a number of cost and revenue assumptions to fit your own Coffee Shop project and the model will automatically generate for you key financial statements and including Profit & Loss statement, Cash Flow statement and Balance Sheet, in addition to a number of important charts and tables.

Now without further ado, let us explain the main components of a solid Coffee Shop Financial Plan. You can watch the video below to start with then read our full and detailed guide to properly digest the concepts.

Coffee Shop Financial Plan: Costs Forecast

The first step in understanding your Coffee Shop business opportunity is to understand the cost involved in launching such a venture.

Understanding Your Coffee Shop Monthly Expenses

Your coffee shop’s monthly expenses or cost figures are usually divided into two categories: Costs Of Goods Sold (COGS or Direct Costs) and Operating Expenses (Opex) that usually include Sales, General and Administrative expenses.

Let us first understand the direct costs involved in a Coffee Shop business. Typically, these costs include the cost of purchasing raw materials to prepare your coffee drinks, such as: Coffee beans, sugar, milk…etc. They also include anything you pay third-party external suppliers for goods you don’t prepare yourself and that you resell to your customers such as: Cakes, pastries, sandwiches…etc.

Now with regards to operating expenses involved in a Coffee Shop business, these typically include the salaries you pay your staff, your marketing and advertising expenses, your rent, utilities, phone, internet, licensing costs…etc. These expenses are crucial to help you run and promote your Coffee Shop and hence we call them operating expenses.

By adding your COGS and Operating Expenses, you can then estimate the total costs involved in running a Coffee Shop business.

Remember that some cost items go up over time. For example, salaries usually tend to go up because you will not only increase your existing employees’ annual compensation but also hire additional staff if the business requires so. Other costs tend to remain relatively stable such as you rent, you monthly utilities bill…etc.

It is very important to forecast these changes in cost while you are building your cost model.

Coffee Shop Financial Plan: Capital Expenditures

Next, we need to understand the capital expenditures involved in launching a Coffee Shop business. But let us first explain what capital expenditures are and how they differ from operating and direct costs. Simply put, a capital expenditure also called Capex, is any investment you incur to purchase a valuable equipment or long-term asset such as an expensive espresso machine, furniture for the venue or an IT system.

These are long-term assets that are used for many years and hence instead of expensing them, accountants usually depreciate them for the duration of the project or depending on current best practices (for example, a company vehicle is usually depreciated for a longer time than an IT terminal).

With regards to your Coffee Shop project, examples of capital expenditures (or Capex) include: Coffee-making equipment, venue furniture and decoration, IT and security system…etc.

Coffee Shop Financial Plan: Startup Costs

Now that we have seen the different types of costs involved in launching a Coffee Shop, it is time to evaluate our startup costs. The startup costs related to your coffee shop are simply all the pre-operating expenses and investments you need to make before your business starts to generate revenue.

For example, getting a business license, paying to develop your brand identity or purchasing a professional espresso machine are all expenses you need to incur before your coffee shop is operational. Make sure you jot down all the expenses you believe you need to pay for prior to launching your business. Your total startup costs should be usually covered by your initial capital.

Coffee Shop Financial Plan: Revenue Forecast

After modeling your costs, it is time to forecast your revenues. This step is usually trickier than estimating costs because it involves making many assumptions such as number of customers, frequency of orders, average order values…etc. However, by carefully analyzing your sector and business model, you can make educated assumptions that can greatly reduce your margins of error.

For example, to estimate your number of daily customers, you can look at the number of people in a certain age tranche, living in your neighborhood, and start making assumptions based on that. Let’s take an example:

Suppose there are 10,000 young adults between the age of 18 and 35 living in your vicinity, and let’s assume that only 5% of them will visit your coffee shop at least once a month (some will visit almost every day, some will visit weekly and some others only 1 time per month); this works out to 500 regular monthly customers. Now if we assume that each customer will visit the coffee shop twice a month on average, and if we assume the average order value per customer to be around 10 USD, this implies a monthly estimated revenue of 500 x 2 x 10 = 10,000 USD. Now that you have estimated the revenue for one month, you can easily forecast your annual revenue. But of course make sure to also take into account the seasonality (for example, during summer time, your customers might leave the town to go on holidays and this might reduce your average monthly revenue in July and August…etc.)

The purpose is to build a revenue model that is as close to reality as possible and one way to do that is to be as conservative as possible. By conservative we mean: Don’t go overboard with the number of expected customers, their frequency of ordering or the average spending per customer. Always use reasonable assumptions that make sense and that are backed with some reliable statistics or data whenever possible.

Coffee Shop Financial Plan Sample: Income Statement or Profit & Loss

Now that you have modeled your Coffee Shop’s cost and revenue, it is time to project your income statement, also called profit and loss statement of P&L. To start off, check the P&L example taken from a coffee shop financial plan sample below.

Understanding Your Coffee Shop’s Profitability

So, to simplify things, you can think of the income statement as a series of subtractions applied to your revenue to find out how much profits your business has really created. Then, if you divide your net profit by your revenue, you get your net margin. The higher the net margin the higher your coffee shop’s profitability.

By using our Coffee Shop Financial model included with our premium business plan template, you don’t need to worry about building a P&L statement from scratch. This financial statement is automatically generated once you edit your cost and revenue assumptions, hassle-free.

Coffee Shop Financial Plan Sample: Cash Flow Statement

The statement of cash flows is, as its name indicates, a summary of the cash movements happening in your coffee shop business over a certain period of time. Check the cash flow statement below taken from a coffee shop financial plan sample.

First, let us explain the difference between cash and income as many people tend to confound both. The main difference between a cash-flow and an income is timing. To understand the nuance, let’s take a general example from the consulting industry: Suppose you sent an invoice of 1,000 USD, dated March 15 th , to your client after completing a consulting project. Your client receives the invoice and then calls you to confirm he will pay his dues during the first week of April. Comes April, you check your bank account, and you notice indeed a wire transfer of 1,000 USD dated April 5 th .

So, what did actually happen? Accounting wise, you should record 1,000 USD as a revenue for the month of March in your income statement, while you should record 1,000 USD as a cash inflow for the month of April in your cash flow statement. This means that cash flows do not necessarily follow the same recording date of income and payments. Income and expenses usually follow the invoice date while cash inflows and outflows follow the actual clearing or payment date.

So what is the cash flow statement comprised of?

It is simply the summary of three types of cash flow movements over a certain period of time:

The cash flows from operating activities: Here, cash inflows are money collected from customer orders and cash outflows are payments made to pay for COGS, raw materials and external suppliers.

The cash flows from investing activities: Here, cash inflows are money collected from the sale of a certain asset or capex item (such as an old espresso machine) and cash outflows are money paid to acquire new assets (such as a new espresso machine).

The cash flows from financing activities: Here, cash inflows are new funding received from business loans or equity investors and cash outflows are payments made to partners in the form of dividends for example.

Investors focus a lot on the ability of a business to generate solid and tangible cash flows which means that it is not enough to have a profitable coffee shop, what’s even more important is to grow an F&B venture that generates consistent and significant cash flows.

If you use our Coffee Shop Financial plan in Excel included in our premium Coffee Shop Business Plan package, you will be able to automatically generate a detailed cashflow statement after updating your cost and revenue assumptions.

Coffee Shop Financial Plan: Balance Sheet

The balance sheet is another important financial statement. It summarizes the assets and liabilities of your coffee shop at a certain point in time (typically at the end of the year).

The balance sheet is divided in two sections. The first one lists all your short-term assets (cash and equivalents, inventory, receivables…etc.) and long-term assets (property, plant and equipment less accumulated depreciation…etc.)

The second section lists all your current liabilities (account payable, bank notes payable…etc.), long-term liabilities (bank debt, business loan…etc.) and shareholder’s equity.

The balance sheet can be summarized using the following formula:

Assets = Liabilities + Equity

By using our Excel Coffee Shop Financial plan included in our premium Coffee Shop Business Plan package , you will be able to automatically generate a detailed balance sheet after updating your cost and revenue assumptions.

Coffee Shop Financial Plan: Conclusion

This guide has provided you with a general overview of how to build an effective financial plan for your Coffee Shop project. Remember that a serious Coffee Shop business plan must include a solid financial plan with robust cost and revenue models. You can totally build this from scratch. But if you are short on time and wish to avoid potential mistakes, we highly recommend you use our detailed Excel financial model Spreadsheet included in our Coffee Shop Business Plan template .

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

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

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Setting up a Coffee Shop – Our How to Guide

• Last Updated: June 10, 2024
• BY: Aimee Bennett

Have you ever wanted to set up or run your own coffee shop and wondered just what that challenge would involve?

Perhaps you have a real passion for trying out new coffee flavours from around the world and sharing the best with friends and family.

Maybe you’ve always wanted to be your own boss and you think that having your own coffee shop would be a great way to achieve that.

Or perhaps you love the idea of talking and interacting with different customers every day as you provide them with a friendly, professional service.

A coffee shop could be the perfect option!

Running a successful coffee shop isn’t easy but it can be incredibly rewarding. You’ll gain personal confidence and business experience, benefit from knowing that you’ve created value and made people happy, while hopefully earning some money along the way!

But there are many different aspects to running a coffee shop business that you need to consider in order to have the best chance of success when setting up your own company and this article will take you through as many of them as possible.

Think of this as a quick and easy how to run a coffee shop for dummies ! Let’s dive in.

Your coffee shop business model & Set up

The first task is really to decide what sort of coffee shop you want to be, or in fact whether you want to actually be a ‘shop’ at all!

It is possible to set up a coffee shop in many different ways; essentially all we are talking about is a way of giving customers coffee and a way of getting paid for it – everything else in the business model is optional.

Here are a few different ways that you could operate:

A community coffee shop – run on a for-profit or not-for-profit basis, a community shop could be owned by many different stakeholders and/or operate on a donations model. It can also work in partnership with an existing business or organisation, particularly if that partner shares the community-run values (think libraries, student-run university businesses, charity or co-op shops etc.) This is a great inclusive option if you have a group that can help.

A pop-up or mobile coffee shop – a temporary coffee business that can move locations and has little in the way of customer services (e.g. seating, toilets, wifi etc.) or additional products. A low-risk and low-cost option for starting out.

A permanent shop – this could be run as a cafe, a themed destination, or a basic high volume/high footfall coffee shop. This is probably the model most people are familiar with and there are still a whole host of ways in which you can be creative about your business within it.

A subscription and delivery business – if you intend to serve a large number of very local clients who may want to purchase on a delivery or subscription basis, this could be an option for you. Perhaps your customers could be 50 local companies who you can deliver ‘coffee runs’ to on a daily basis for example – think about the opportunities and value that can be added through subscription.

We have also previously written about coffee shop business models on our blog so take a look at the different options available to determine what will work best for you.

Also remember that you can tweak and evolve your model at any time. There have been plenty of examples of entrepreneurs that start out with a simple mobile cart, run some pop-up stalls at events and food markets and then progress to opening a small shop.

But none of these business models are free to set up of course!

The cost of setting up and running a coffee shop

Ah yes . . . the money. Unless you have been left a fully stocked shop as part of an odd inheritance or some strange competition, you’ll need to spend something to set up your coffee shop business.

There are certain one-off and fixed running costs for a coffee shop that you will need to take into account in business planning. These cover areas such as:

• Permits, licenses and insurance
• Business administration and accountancy costs
• Stock and logistics – both for consumables and equipment
• Rent, electricity, water, gas and similar costs
• Entertainment for customers such as music and wifi

These costs will depend on where the business will be based.

For example, the costs of running a coffee shop in the UK won’t differ too much from the rest of the world, relative to the regular costs of licenses, stock and premises in the country. The coffee market in the UK is very robust; 95 million cups of coffee are drunk every day and the competition for this business affects prices.

Once you have your business model sorted and a clear idea of the initial costs, you need to determine whether or not you’ll need money to set up the company.

Financing a coffee business set-up

If you need some initial capital to get your new coffee business off the ground you’ll need to look into financing options.

You might have enough saved up or be able to borrow from willing family and friends (which can be a minefield itself as you probably know!)

Other options, depending on the amount of capital required, could include;

• A bank loan (quite risky)
• A second mortgage (moderately risky)
• Maxing out credit cards (very risky)
• Crowdfunding
• Investment – on an equity basis for example
• Local/regional funding support

There might be other solutions in your area that you could access, depending on the type of company you intend to build. This could also determine where you choose to set up, your staff and other key business decisions.

What else to consider when setting up a coffee shop

Once you have your overall business model and financing in place, you are well on the way to launching your very own coffee shop . But there are still a number of other decisions to make:

Next let’s think about where exactly your coffee shop will be based. A coffee shop needs at least enough space to store ingredients, make your beverages and get paid for them in order to operate properly.

There may be a few different ways to look at location depending on your chosen business model as we discussed above. But even the most mobile pop-up cart setup will need some physical space to run the shop and to store everything when not in use.

Your choice of location might also be determined by logistics. Coffee itself is relatively light and easy to transport but other ingredients such as fresh milk and cakes need to be delivered on a different timescale.

If things go well, sooner or later you’ll need to get hiring.

Tell friends and family that you’re on the lookout for employees needed to run a coffee shop and put a sign up at your business in case your customers can refer you to someone.

Obviously try to look for someone with good experience, but remember you’re competing for staff against giant coffee chains so you need to emphasise your differences.

Your brand and style

One of the great things about small consumer businesses like coffee shops is the potential for building a truly unique brand.

You don’t need to try and out-Starbucks Starbucks – they’ve been doing it longer and have more money than you do, so it’s probably not the best idea. Think about what you could become known for and why people will buy coffee from you as opposed to an alternative shop.

A coffee shop needs to provide a great experience (as well as great coffee). You could be selling beautiful cups of the best steaming liquid gold, but if people aren’t having a nice time, they won’t be back in a hurry.

To build your brand think about how other companies make you feel when you interact with them. What businesses do you love? What do you tell your friends about? What would you like people to say about you when you aren’t in the room?

Think of the brand as the one-liner that people use to refer to your business:

• Oh yes I know CoffeeShells – that coffee shop with the pet tortoises on the window sills.
• Have you heard about Coffeeman Sam? It’s a pop-up coffee cart made from an old fire engine!

The more memorable yet genuine it is, the more people will spread the word. And if you give them a good experience, and a great coffee, when they arrive, you’ve done your job well!

Admin and taxes

Yes, we can’t avoid this in business I’m afraid! There’s no need to go into this in too much detail here, but be sure to check what rules and regulations you need to adhere to.

Look into advice on tax and administration requirements shared by government sources, such as this interview with independent coffee shop owners .

Sales and marketing

How will you get people in the door?

Building your customer base is one of the biggest challenges that you will face – get this right and everything else will be a little bit easier.

There’s no one task or activity that will make or break your sales and marketing activity, but everything (from your cups and furniture through to the quality of your Facebook and Twitter game) plays a part.

Be strategic and don’t over-commit to marketing activities at the expense of serving customers and providing a great experience.

Who will you buy coffee and other products from? How will the products be stored and delivered? What contract terms will you work on?

These are the sort of questions you will need to answer when developing your supplier network.

Personal relationships are important here but also don’t be afraid to drive a hard bargain when you need to make the finances work out for your business.

In conclusion

A lot of people have asked us over the years how hard is it to run a coffee shop?

The truth is that isn’t easy, like setting up any business, but it is a straightforward type of company to build if you have a clear vision in mind.

The demand is there, the suppliers are eager to help and the different options for business models, brand, location and premises mean you can really stamp your own personality on the company.

The best way to find out if you have what it takes is to try it. To really learn how to run a coffee shop training will help, but direct experience is better.

Good luck if you take the plunge – and let us know how you get on!

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• 15 Steps to Opening a Coffee Shop

15 Steps to Opening a Coffee Shop: Business Plans, Starting Tips and Costs

Is a Coffee Shop a Good Investment?

In the UK,  95 million cups of coffee are consumed per   day , which makes opening of a coffee shop a potentially great investment. At the same time, a coffee shops sells on average  200 cups per day.  There are around  24,000 coffee shops across the UK  and  the coffee market is expanding . In fact, it is estimated that the number of coffee shops will reach  30,000 by 2025.

Small coffee shops tend to have  a profit of 2.5 percent of gross sales on average.  However, medium and large coffee shops might earn a higher profit. On average, a coffee shop owner can earn between  £46,000 and £120,000 per year.

How Much Does It Cost to Open a Coffee Shop?

Opening a coffee shop might cost around  £29,999 to £99,000.  Yet, the cost of starting a coffee business depends on  the location, size, style of the shop, and the equipment. 

At the same time, you can buy your own coffee shop equipment or you can consider  coffee machine rental , if you have a limited budget. 

Below you can find an estimation of the cost of basic products and services involved in opening and running a coffee shop.

15 Steps to Starting up a Café

Opening your own coffee shop might be complicated and time consuming. However, this list of 15 steps will give you an idea of the most important elements of the process.

• Study Your Coffee Competitors
• Find a Coffee Shop Concept
• Write a Solid Business Plan Before Opening a Coffee Shop
• Find a Perfect Location for Your Café
• Know How to Finance Your Coffee Business
• Buy Equipment Every Coffee Shop Needs
• Find the Best Quality Coffee Beans for Your Café
• Design the Interior of Your Coffee Shop
• Find a Payment System That Works Best for Your Coffee Shop
• Create an Online Presence for Your Coffee Shop
• Spread the Word About Your Coffee Shop
• Hire Staff for Your Coffee Shop
• Create a Menu for Your Café
• Get the Necessary Permits and Licences for Your Coffee Shop
• Become a Coffee Expert

1. Study Your Coffee Competitors

Before you start brewing up coffee for your customers you should do your research about the coffee industry. Study your  competitors  and learn the stories of  independent coffee shops owners , which might be a good inspiration. This is particularly important if you are new to the industry.

Pay attention to whether  franchise or independent businesses  prevail in the area you want to open your shop. 

An independent coffee shop with a unique and cosy atmosphere might be able to compete with franchised shops. However, doing better than 10 distinctive cafes on the same street might be a challenge.

2. Find a Coffee Shop Concept

Finding a concept  should be on the top of your checklist before opening a café because your business plan will be developed around it. A unique concept might actually determine your success in a highly competitive coffee business.

If you find a spot close to a university you should think about  casual layout,  and creating a student vibe. To keep students hooked to your place, consider offering  cheap breakfast options.

If you find a suitable space in a  business area , creating an  elegant  and  quiet place  where people can work or organise their meetings might be a good idea. On the other hand, in the areas with  nurseries and schools  you should think about  parents’ needs such as   childcare.

If your coffee shop will be located in an area where people tend to walk their dogs, an  animal friendly  space might be a great success.

3. Write a Solid Business Plan Before Opening a Café

A business plan is a tool that will help you  organise and prioritise plans and expenses  for your coffee shop. Moreover, a business plan is a must when you plan to seek a  loan or get investors on board.

In your coffee shop business plan you should include:

• A title (legal name and coffee shop logo ).
• A summary (objectives and mission).
• The business structure overview.
• Market and competitor analysis.
• Product description.
• A sales plan (pricing, service, customer enticement strategy, marketing).
• A financial plan (income statement, cash flow, balance sheets, breakeven analysis).
• An operating plan (physical equipment, inventory, supply chain).
• Management strategy (ownership and staffing).
• Appendices and exhibits.

Last but not least, you might include  visual elements , for example,  the shop layout and design .  Graphs and charts  will be helpful to present financial calculations.

A business plan can be a few or even hundreds of pages long, depending on the scale of your coffee shop. You can download our  editable business plan structure .

4. Find a Perfect Location for Your Café

Finding a location might be a turning point in the process of starting a café. A good location might decide about your future success. Bad location might lead a failure and huge money loss.

You might search for the location on your own or you might hire  a commercial real estate agent,  which might save a lot of time. However, commissions account for around  10% of annual rental fee.

While searching for a suitable location, think about the following factors:  demographics, proximity to strategic places  such as kindergartens, schools, universities, business district or public transportation, and  competitors.  Pay also attention to  foot and car traffic. A shopping mall  might not necessarily be a good idea because even with a good income prospect it might not be enough to cover  the high rent.  Don’t disregard  less obvious locations  if they have good visibility.  Districts that are still growing  might bring you considerable income in the future.

Do not limit yourself to conventional coffee shops. Sometimes,  a coffee truck located   next to a train station  might be better investment than a coffee shop on the main street.

Additional aspects to keep in mind are related to the shop itself. Pay attention to  the plan and space.  If you plan to open  take-away,  you will need a tiny space. However,  a sit-in café  will require more a spacious shop. A space with already  insulating gas, and water might reduce your opening cost.

5. Know How to Finance Your Coffee Business

Starting a coffee shop might be expensive, so make sure that you have enough capital. Keep in mind that a coffee shop might first bring profit between  6 and 12 months after opening . Make sure you have enough money to cover  rent, equipment, and salaries for staff for that period. 

If you do not have money for opening a coffee shop, there are  different ways to get funding for your business.  You might consider finding  an investor  or getting  a  business loan.

How to Get a Business Loan for a Coffee Shop?

To get a loan for you coffee shop you will need a solid business plan and you need to decide what loan would be the most suitable for you.

A business start-up loan  might be a good solution for those who want to  maintain ownership, and need money to cover initial expenses.  Besides, it helps to build  business credit.

On the other hand,  a small business loan  might be a better solution for those who  already own a business and seek an expansion.

Whatever loan you decide to apply for, make sure that you are well-prepared to get your loan approved .

6. Buy Equipment Every Coffee Shop Needs

The next step should be  buying proper equipment  for your coffee shop.

While there are a few  commercial coffee machines  that are suitable for a coffee shop, you should consider investing in an espresso machine in particular, to brew the highest quality coffee for your customers.

Depending on your individual preferences and needs, you might choose among  lever commercial espresso machines, pump commercial espresso machines, pod commercial espresso machines , or  steam commercial espresso machines.

You should pay attention to both  the price  and  the performance  of your desired espresso machine. Think about the number of people you plan to serve coffee every day, and make sure that you can deliver without a delay.

There are many different coffee machine suppliers to choose from. One of the most popular  coffee machines suppliers  in the UK are: Franke, Fracino, Gaggia, De’longhi, Jura, Kenco, Bosch, Selecta, Astoria, Saeco, and Miele.

If your budget is limited and you cannot afford buying a machine outright, rent or leasing a coffee machine might work for  the beginning of your coffee business.

7. Find the Best Quality Coffee Beans for Your Café

To hook your customers to your coffee shop, a nice location and a unique concept might not be enough. Since your main product will be coffee, you need to pay special attention to  the quality of coffee beans .

Yet, the best quality coffee will  cost you more.  In fact, coffee beans might be one of the biggest expenses of opening a café.

There are two broad types of coffee available on the market:  Coffee Arabica and Coffee Robusta . Coffee Arabica has a sweet and soft taste and high acidity, and tends to be more expensive than Robusta.

On the other hand, Robusta’s taste is stronger and harsher than Arabica. It also contains more caffeine than Arabica.

You need to think what price you should pay to create profits from sales. Keep in mind:  the higher quality coffee, the higher the price of coffee in your café.

The next step is to choose how you want your coffee beans to be  roasted.  There are several roasts to choose from:  light broad, brown, medium, dark, and extra dark.

At the same time, you might select among Amercian Roast, French Roast, Italian Roast, European Roast, and Viennese Roast. By researching the coffee market you might also learn how to blend different roast to create  a unique product for your customers.

When it comes to suppliers, you might choose  multi-national supplier or a local roaster.  Selecting local supplier might give extra point to your business, as  supporting local products.  

If you care about fair trade and ethical pay, you should acquire information how your provider gets coffee. You may ask potential provider for fair trade certification.

8. Design the Interior of Your Coffee Shop

Another exciting step is to design the interior of your coffee shop.  Front as well as back house plans  are crucial for  service efficiency and customers’ comfort.  The design should be aligned with the concept you selected at the beginning of the process.

Think what kind of  atmosphere  you want to create. Do you want an  open style  of front house with  bright colours , suitable for students hanging out; or maybe you want a space with  darker colours  to create a  sense of privacy  that will be appreciated by people coming to your place for a business meeting. If you target parents, think about how you will incorporate a  kids corner into the layout.

Using any available space and adding decorations will depend on the  size of your shop.  With a  small space  you need to be very careful to  not overwhelm your customers. Finally, you need to think about creating a workplace that will be  welcoming  but also  organised and efficient.

9. Find a Payment System That Works Best for Your Coffee Shop

After the creative part of designing interior, you should focus on more technical aspects of your business. Choosing the right  EPOS system  that works the best for a coffee shop is very important to make  the operations smooth, enhance customer service, and foster the communication between front of house and back house.

A  cash register  will help you with  the management of your business finances  such as track of daily income and daily operations.

You might choose  touch screen cash register , with different options, services and solutions  specialized for specific sector such as restaurant or hospitality.  If you want  more mobile option  of epos system, you might consider an  mPOS system solution , which actually can be used on  a tablet or smartphone  if you have a good internet connection.

As with coffee machines, you have the option to buy your POS outright, or opt to  rent an ePOS system.

10. Create an Online Presence for Your Coffee Shop

Online presence is extremely important for every kind of business in today’s world.

Your coffee shop needs a website so your customers can find you. It will show your customer  who you are  and  why your coffee shop is special.  Overall, through your website you can post your  location, opening hours, images, and get customer reviews.

It is very easy to set up a website. However, remember that the  website design cost  will depend on  how advanced you want your site to be.  Moreover, since customers search for coffee shops on their mobile phones, make sure that you provide the best user experience by adjusting to  mobile web design.

11. Spread the Word About Your Coffee Shop

Increasing the number of customers might take time. Spreading the word about your coffee shop will help you to enhance your newly created business.

Using social media  is one of the best ways to showcase your coffee business to people. You can show your  uniqueness and retain loyal customers.   Instagram in particular might be useful , as both you and your customers can share great photos of your products.

Working with influencers can prove to be an effective way to increase the number of customers.

At the same time,  video marketing  might be very efficient strategy to boost your online presence. Show your audience why your coffee shop is the best.

Further, since you already have a website you might start  writing a blog.  Showing your passion for coffee will make people follow your coffee business journey.

Email marketing  is another easy, cheap, and efficient way to reach your customer directly and make them come back. Think, for example, about  inviting customers to a coffee event at your shop.

If you have allocated marketing expenses in your coffee shop budget, you can easily reach your  desired audience  through ads, either on social media platforms or search engines.

Finally,  offering free coffee to businesses in your neighbourhood might be a great way to introduce yourself to the local community.

12. Hire Staff for Your Coffee Shop

The number of staff will depend on the size of the coffee shop and variety of products you want to offer.

Every coffee shop needs  baristas  to brew the main product that you are offering to your customers.

Moreover, if you plan to make and sell food you will also need a  chef.  Everything depends on your  vision and management style. You need to offer excellent service so your customers come back to you. For that reason, besides  technical skills or willingness to learn,  you should look for candidates that will represent your concept and vision of your coffee shop well. 

Personality and social skills should be factors for hiring the best staff.

13. Create a Menu for Your Café

Although coffee will be the main product at your café, you can consider offering alternatives, such as food, to boost your income.

You can serve  basic and typical pastries  such as muffins, donuts, and croissants, which are an excellent addition to coffee. However, you need to make a decision whether you will order those products from  vendors  or you will prepare them in your café.

Offering a breakfast menu might be a good idea, especially if your café is located close to universities or business centres. You should take  different food preferences  into consideration, and be conscious that many customers will ask for  vegan and gluten-free options . Make your customers happy by offering a variety of products.

Do not stick to the same menu for the whole year. Seasonal special products will definitely make your customers spend more in your coffee shop.

For example, most coffee lovers cannot forego a  pumpkin spice latte  during the autumn season. Christmas season might be a perfect time for a  special edition of a hot chocolate.

14. Get the Necessary Permits and Licences for Your Coffee Shop

When you start up your coffee shop you must get all the paperwork done before opening day.

In the UK, when you open a food business, such as a coffee shop, you are obliged to  register it with local authorities.  The registration is free of charge. You should do it at the latest  28 days  before opening.

When your registration is done, local authorities might visit you for  food hygiene inspection.  You will get a rate according to the  Food Hygiene Rating Scheme.

What Licenses Do You Need to Open a Coffee Shop?

To open a coffee shop you will need several licences or permits besides Food Hygiene Certificate mentioned above.

• Pest control:  it is a legal requirement to have a proper procedure for pest control.
• Food Premises Approval:  if your products contain meant, fish, and diary you need to get a Food Premises Approval from your local council.
• Public Liability Insurance:  the insurance will cover legal expenses in case your customers suffer from injuries or property damage in your coffee shop.
• PRS for Music license:  if you want to play music in your coffee shop you will need to get permission from the copyright owners.
• Planning permission:  if the space was not a restaurant/ coffee shop in the past, you need to get permission to change to A3 class.

If you plan to place tables outside your coffee shop you need to check with local council whether you need a licence to do that. Different cities and towns will have different regulations and fees so it is in your best interest to check it with local authorities.

Visit The Food Standards Agency (FSA) for further information about opening a business with food and drinks.

15. Become a Coffee Expert

As a coffee shop owner you need to become  a coffee nerd.  You are expected to know  the beans and roast  you offer, as well as  the brewing methods  you use. When you educate yourself, you will be able to answer questions of your customers about coffee.

You might attend  coffee cupping,  which is a gathering to taste the flavour and aroma of coffee at different levels in the brewing process, to increase your knowledge and meet coffee experts. Joining  the British Coffee Association , which represents the coffee industry in the UK by promoting the business, talking to politicians and media to create the best conditions and culture to thrive, will definitely keep you updated about industry news

Further, you might learn about industry events such as coffee shop innovation expo or annual industry dinner.

Last but not least, you might learn a lot from  Specialty Coffee Association , which hosts events, championships, and educate about coffee in the UK.

Patrycja is a Content Writer at Market Inspector. Her educational background lies in M.LL. in Law, and an MA in International Relations. She gained international experience in HR and content creation in the United Arab Emirates, Turkey, and Poland. Patrycja’s focus lies in the areas of business and technology, digital marketing, and renewable energy.

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Whether you’re a barista looking for a change of scenery or you’re embarking on a brand new venture, starting a coffee van business is a great opportunity for you. The freedom that comes with owning a food truck is appealing to many of us in the hospitality industry, and starting a coffee van business comes with these same great benefits, allowing owners the flexibility to operate in various locations and bring freshly brewed coffee to customers wherever they are. 

So, how exactly do you go about setting up a mobile coffee business? In this guide, we’ll cover all you need to know to start a coffee truck business. Read on to learn more about coffee shop rules and regulations, coffee van ideas, and more. 

• Why set up a coffee van business? 

Mobile coffee shop rules and regulations

Coffee van ideas, how to start a coffee truck, why set up a coffee van business.

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