starting a coffee shop business plan

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.

Featured Partners

ZenBusiness

$0 + State Fees

Varies By State & Package

On ZenBusiness' Website

Northwest Registered Agent

$39 + State Fees

On Northwest Registered Agent's Website

Tailor Brands

$0 + state fee + up to $50 Amazon gift card

Varies by State & Package

On Tailor Brands' Website

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.

Start an LLC Online Today With ZenBusiness

Click on the state below to get started.

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.

• Best LLC Services
• Best Registered Agent Services
• Best Trademark Registration Services
• Top LegalZoom Competitors
• Best Business Loans
• Best Business Plan Software
• ZenBusiness Review
• LegalZoom LLC Review
• Northwest Registered Agent Review
• Rocket Lawyer Review
• Inc. Authority Review
• Rocket Lawyer vs. LegalZoom
• Bizee Review (Formerly Incfile)
• Swyft Filings Review
• Harbor Compliance Review
• Sole Proprietorship vs. LLC
• LLC vs. Corporation
• LLC vs. S Corp
• LLP vs. LLC
• DBA vs. LLC
• LegalZoom vs. Incfile
• LegalZoom vs. ZenBusiness
• LegalZoom vs. Rocket Lawyer
• ZenBusiness vs. Incfile
• How To Start A Business
• How to Set Up an LLC
• How to Get a Business License
• LLC Operating Agreement Template
• 501(c)(3) Application Guide
• What is a Business License?
• What is an LLC?
• What is an S Corp?
• What is a C Corp?
• What is a DBA?
• What is a Sole Proprietorship?
• What is a Registered Agent?
• How to Dissolve an LLC
• How to File a DBA
• What Are Articles Of Incorporation?
• Types Of Business Ownership

Next Up In Business

• Best Online Legal Services
• How To Write A Business Plan
• Side Hustle Ideas To Make Extra Money
• Starting An S-Corp
• LLC Vs. C Corp
• How Much Does It Cost To Start An LLC?

Best Pennsylvania LLC Services In 2024

Best Florida LLC Services In 2024

Best Maryland LLC Services In 2024

Best Texas LLC Services In 2024

Best Arizona LLC Services In 2024

Best California LLC Services In 2024

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.

• Restaurant Website Builder

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

What is A Coffee Shop Business Plan?

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

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

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

1. Clear Vision and Objectives

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

2. Financial Planning

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

3. Operational Efficiency

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

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

1. Executive Summary

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

What should you cover in an Executive Summary?

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

2. Coffee Shop Business Description

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

What should you cover in the Coffee Shop Description section?

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

3. Market Analysis

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

What should you cover in this section?

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

4. Organization and Management

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

What should you cover in the Organization and Management Plan?

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

5. Sample Menu

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

What should you consider when creating a Sample Menu?

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

6. Marketing Plan

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

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

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

7. Operations Plan

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

What Operational Issues should you address in your Business Plan?

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

8. Financial Plan

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

How Much Does It Cost to Start a Coffee Shop?

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

How Many Ways to Fund Your Coffee Shop?

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

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

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

9. Financial Projections

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

Break-even analysis:

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

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

Projected profit and loss statement:

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

Cash flow analysis:

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

Coffee Shop Business Plan Template

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

2. Description of the Coffee Shop

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

3. Menu Offer

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

4. Market and Competition Analysis

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

5. Investment Plan (Detailed Cost Analysis)

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

6. Financial Forecast

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

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

8. Marketing Plan

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

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

Tips For Writing a Business Plan For a Coffee Shop

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

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

Frequently Asked Questions

1. how profitable is owning a coffee shop.

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

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

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

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

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

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

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

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

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

Related Coffee Shop Resources

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

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

Menubly LLC 8 The Green Suite R, Dover, Delaware 19901

Privacy Policy

Terms of service

Cookie Policy

Profit Margin Calculator

Food Cost Calculator

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Open a Coffee Shop

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

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

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

How to open a coffee shop in 7 steps

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

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

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

Completely start from scratch and open your own shop

Open a coffee shop franchise

Buy an existing coffee shop that's for sale

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

Step 2: Create a business plan.

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

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

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

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

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

Step 3: Find the right location.

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

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

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

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

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

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

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

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

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

Step 5: Find suppliers.

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

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

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

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

Step 6: Create a warm, inviting environment.

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

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

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

Step 7: Adopt a good inventory system.

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

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

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

How much do you need?

with Fundera by NerdWallet

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

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

How much does it cost to open a coffee shop?

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

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

LLC Formation

The bottom line

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

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

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

On a similar note...

LIMITED TIME OFFER

Ink Business Unlimited® Credit Card

BUSINESS STRATEGIES

How to write a coffee shop business plan

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

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

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

Top benefits of creating a coffee shop business plan

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

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

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

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

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

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

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

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

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

How to create a coffee shop business plan in 6 steps

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

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

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

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

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

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

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

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

02. Company and domain names

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

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

When choosing a domain name consider the following best practices:

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

Choose a name that is easy to spell and remember

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

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

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

03. Market analysis and research

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

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

04. Operations plan

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

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

05. Marketing and advertising strategies

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

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

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

Learn more: How to make a website

06. Financial plan

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

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

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

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

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

Specify how you plan to secure funding

Highlight when you anticipate reaching profitability and generating positive cash flow

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

Coffee shop business plan examples

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

Coffee shop business plan template 1: Coffee Haven Café

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

Company and domain name

Company name: Coffee Haven Café

Domain name: www.coffeehavencafe.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Company name: Brew & Gather Coffee House

Domain name: www.brewandgathercoffee.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How profitable is a coffee shop?

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

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

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

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

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

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

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

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

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

Why do coffee shops fail?

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

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

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

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

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

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

Coffee shop business plan FAQ

How do you start a coffee shop business plan.

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

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

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

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

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

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

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

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

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

How to create a bakery business plan

How to create a bar business plan

How to create a virtual assistant business plan

How to create an eCommerce business plan

How to create a cleaning business plan

How to create a plumbing business plan

How to create a trucking business plan

How to create a daycare business plan

How to create a food truck business plan

How to create a restaurant business plan

How to create a clothing line business plan

How to create a hair salon business plan

How to create a real estate business plan

How to create a contractor business plan

How to create a vending machine business plan

How to create a party planning business plan

Looking for another business idea?

How to start an online business

How to start a consulting business

How to start a fitness business

How to start a fitness clothing line

How to start a makeup line

How to start a candle business

How to start a clothing business

How to start an online boutique

How to start a T-shirt business

How to start a jewelry business

How to start a subscription box business

How to start a beauty business

How to start a flower business

How to start a car wash business

How to start a food prep business

How to start a DJ business

How to start a pool cleaning business

How to start a baking business

How to start a trucking business

How to start a construction business

How to start a landscaping business

How to start a food business

How to start a vending machine business

How to start a contractor business

How to start a coaching business

Coffee dropshipping

Looking to start a business in a specific state?

How to start a business in Arizona

How to start a business in South Carolina

How to start a business in Virginia

How to start a business in Michigan

How to start a business in California

How to start a business in Florida

How to start a business in Texas

How to start a business in Wisconsin

Related Posts

How to create a website from scratch in 11 steps (for beginners)

How to start a business in 14 steps: a guide for 2024

How to start a coffee shop in 7 steps

Was this article helpful?

Coffee Shop Business Plan Template & PDF Example

• September 4, 2024
• Food & Beverage

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

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

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

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

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

Coffee Shop Business Plan Template (Download)

Fully editable 30+ slides Powerpoint presentation business plan template.

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

Executive Summary

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

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

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

Coffee Shop Business Plan Executive Summary Example

Business Overview

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

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

Market Overview

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

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

Management Team

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

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

Financial Plan

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

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

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

Coffee Shop & Location

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

Operations & Offerings

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

Industry Size & Growth

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

Key Market Trends

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

Competitive Landscape

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

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

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

Identifying Your Coffee Shop’s Competitors

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

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

Coffee Shop Competitors’ Strategies

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

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

What’s Your Coffee Shop’s Value Proposition?

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

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

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

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

Marketing Plan

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

Marketing Channels

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

Digital Marketing

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

Local Advertising

Connect with the local community to increase foot traffic:

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

Promotional Activities

Attract customers with enticing offers and loyalty programs:

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

Sales Channels

Optimize  sales channels  to maximize revenue and customer satisfaction.

In-Store Upselling

Maximize each customer’s visit:

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

Subscription Services

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

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

Mobile Ordering and Pickup

Facilitate convenient ordering and pickup options:

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

Strategy Timeline

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

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

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

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

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

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

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

Related Posts

Steakhouse Business Plan Template & PDF Example

• Business Plan

Bubble Tea Business Plan Template & PDF Example

Bar Business Plan Template & PDF Example

Privacy overview.

How to Write a Coffee Shop Business Plan + Free Sample Plan

Makenna Crocker

8 min. read

Updated February 7, 2024

Free Download:  Sample Coffee Shop Business Plan

Wake up and smell the business potential! In the US, 72% of adults reported drinking coffee in 2022 . Globally, coffee consumption rose to 175.6 million bags of coffee from 2021 to 2022 – that’s up 4.2%. In such a large, steadily growing industry, there are many possibilities for you to find a niche.

But all of that opportunity creates a heavily saturated market. Walk around your downtown and you’re likely to come across at least a few potential competitors. Starting a business in such a competitive space only adds to the risks you face by not being prepared.

So where should you begin? Start by creating a business plan. The planning process will ensure you understand the competitive landscape, price your coffee appropriately, and are ready to adapt to changing consumer preferences. This article will cover the steps necessary to write a business plan for your own coffee shop business.

Need more guidance? Download our free sample coffee shop business plan for a full business plan example that you can follow as you create your own.

• What should you include in a coffee shop business plan?

Your coffee shop business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections:

• Executive Summary
• Company Summary
• Market Analysis
• Unique Value Proposition
• Menu and Services
• Marketing and Promotion Strategies
• Operations Plan and Risk Mitigation
• Financial Plan and Forecasts

Here’s an example of a coffee shop business plan outline. Next, we’ll dive into each of the sections individually.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

• Carve out time for market research

Seeing cafes on every block is not uncommon in a lot of cities, so you will need to invest time in market research to identify your target customers and help your coffee shop business stand out. 

You can start simply by walking around your area. What do you notice about the other coffee shops? Where are they located in relation to traffic patterns, and how do they appeal from the outside? Then, go inside and take note of their customer service, menu offerings, and ambience. Keeping track of what others seem to be doing well and what could be better will ultimately help your coffee shop stand out.

Consider the neighborhood where you plan to open and what locals will want from your business. Are you located near a university? If so, what kind of drinks are most popular amongst young adults? Are people in your area typically on the go, or do they prefer more of a sit-down experience? 

To gather more insights, you can talk to customers and read industry publications to understand trends. You could even look into coffee shops in your town that have closed to try to figure out why they failed so you can avoid those same mistakes.

• Focus on what sets you apart

To bring your coffee shop vision to life in a competitive landscape, you need to differentiate yourself in the market. Your business plan is where you focus on developing your coffee shop’s unique value proposition (UVP). You should not only understand, but be able to clearly explain what makes you different from your competitors.

Maybe you have stellar supplier relationships that will let you serve better tasting coffee for cheaper? Or maybe your coffee shop will double as a community gathering place?

Your unique value proposition explains what solves your customers’ problems, the benefits of your product or service, and why your target customers should choose to do business with you. Regardless of what sets you apart, you need to emphasize it across your business.

• Create an appealing menu

A compelling menu is crucial for any food and beverage establishment. Your business plan shouldoutline your beverage offerings, as well as food if you plan to provide it. And your description of menu offerings should connect to your target market: If you’re catering to busy commuters, you can emphasize quick meals like pastries and to-go options for each of your coffees. If families are your primary market, highlight kid-friendly options like hot chocolate. 

Maybe you can provide large amounts of coffee and pastries for community events or business meetings? If so, include a subsection about these additional services you can provide, since these may be part of your unique value proposition.

It’s also crucial to plan for the design aspect of your menu. If visual design isn’t your strength, mention in the plan the intention to hire a graphic designer for a professional and appealing prototype. Additionally, consider involving an editor for quality assurance – you may be able to find a trusted friend or business partner for this.

• Utilize marketing and promotion strategies

In a highly competitive space like the coffee business, creating a well-thought-out marketing and promotion strategy is arguably the most important part of planning. Along with reflecting your brand’s unique appeal, the  marketing plan should also be adaptable to your business’s growth over time. Consider including these key elements:

• Digital Platforms : Outline which social media platforms (like Instagram, Facebook, etc.) will be most effective for reaching your target audience. Include strategies for content, such as promotional posts or interactive engagement.
• Local Advertising : Discuss the use of physical signage in strategic locations to attract local foot traffic. Mention the design and messaging of these signs to ensure they align with your brand identity.
• Detail plans for a soft opening or launch event. Consider including community-oriented activities like live music or local collaborations to generate initial interest and goodwill.
• Describe potential programs for customer retention and engagement , such as loyalty programs or seasonal promotions. Mention the use of automated communication tools (like texts or emails) for keeping customers informed and engaged.
• Feedback and Evolution: Include a plan for gathering customer feedback and how this will inform future marketing and promotion strategies. Doing this shows adaptability and a commitment to continuous improvement.

Incorporating these elements into your business plan will not only provide an outline for your marketing efforts but also demonstrate to potential investors or partners how you intend to attract and retain customers.

Don’t neglect your operations plan

Just like having a strong marketing plan, staying on top of your day-to-day operations is crucial. That’s why your business plan should include a detailed operations plan .. The operations plan details all of the tasks you’ll need to manage as the owner to ensure you’re running a functional business. 

Who is responsible for each task, and what are your staffing and training requirements? Ensure that you have the right people for the job, the right amount of people to help run each task, and a delegated plan in order to keep your coffee shop business running smoothly.

Consider the potential for equipment breaking and running out of cups, plates, and other inventory. How might things need repaired, and how much inventory should you have on hand to be best prepared? 

Here, you will also want to factor in storage needs for supplies and a layout that supports quick and easy access for staff – proper layout and organization will encourage good customer flow and barista efficiency. Discuss the seating capacity, counter space, and equipment arrangement to ensure optimal service speed and customer comfort.

• Financial planning is essential

When setting up your coffee shop business, there will likely be more upfront costs. These could include:

• Coffee bean and food purchases
• Salaries 
• Coffee cups and silverware

With all of this in mind, you can create the start of your sales, expense, and cash flow forecasts . They will help give you some answers on how to price things in order to be profitable, and will ultimately tell you whether or not you have a viable business.

On top of startup costs , you will need to take into account recurring costs like recurring coffee beans and ingredient purchases, utility costs and Wi-Fi access for customers. Don’t forget the cost of paying yourself and your employees. Bucket these all into categories so that you can easily keep track of them.

You’ll also want to consider your revenue streams. Will you charge more for milk alternatives? If people want to rent out your space for work meetings or events, what is your rate? 

Going further, when do you anticipate you will break even? Don’t just consider when your revenue costs equal your startup costs, as this isn’t the most accurate. We recommend you do a break-even table twice – once with your assumptions and again with your actual results. We have a full writeup on this if you’d like to dive deeper.

If you’d like extra guidance with forecasting your financials, tools like LivePlan help you do just that.

Learn more: How to Forecast Expenses and Revenue in LivePlan  

• Understand risks and how to mitigate them

Just like with any business, challenges might arise. Issues with supply chain, service consistency, or poor quality products are just a few of the things that can unfortunately go wrong when running a coffee shop business. 

It’s important to have strategies for long-term sustainability that keep potential risks like these in mind. Documenting things like your training strategy and coffee bean storage protocol will help keep up with proper quality control of the drinks and service you provide. Strategic inventory management will also reduce the chance you run into supply chain or pricing issues.

• Download your free coffee shop business plan PDF

By anticipating potential challenges, your business plan prepares you for sustainable success. If you’d like some extra help, download our free sample coffee shop business plan – you’ll get a full business plan example that you can follow as you create your own for your successful coffee shop business.

Makenna Crocker is the Marketing Specialist at Richardson Sports. Her work focuses on market and social trends, crafting gripping and authentic content, and enhancing marketing strategy to foster stronger B2B and B2C relationships. With a master’s degree in Advertising and Brand Responsibility from the University of Oregon, she specializes in generating a strong and responsible brand presence through content that positively influences and inspires others.

Table of Contents

• Don’t neglect your operations plan

Related Articles

6 Min. Read

How to Write a Law Firm Business Plan + Free Sample Plan PDF

8 Min. Read

How to Write a Home Health Care Business Plan

How to Write a Nail Salon Business Plan + Free Sample Plan PDF

9 Min. Read

Free Etsy Business Plan Template [2024 PDF + Sample Plan]

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

The quickest way to turn a business idea into a business plan

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

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

You are using an outdated browser. Please upgrade your browser to improve your experience.

• For business
• For advisors
• For brokers
• How to open a coffee shop

Page written by Chris Godfrey . Last reviewed on October 15, 2024 . Next review due October 1, 2025.

Almost everyone loves a good cup of joe, which explains why there are more than 38,000 dedicated coffee shops across the USA and we spend $47 billion a year buying food and drinks from them. However, buying coffee from a café is a lot different than running a café, so if you’re thinking of starting a new coffee shop business, here’s what you need to know:

How profitable is a coffee shop?

US coffee shops typically generate profits of 15% (EBITDA), with sit-in cafés earning about $300 to $800 per square foot per year and walk-in ‘kiosk’ style coffee shops earning up to $1,300 per square foot per year. The actual profits your venue generates will depend on your location, the type of food and drink you sell and your product pricing structure. 

Do I need any qualifications to run my own café?

No, although previous experience in the hospitality industry would be a bonus and, if you’re buying into a major coffee chain, you’ll need to meet minimum liquid cash and net worth requirements.

12 Steps to start a coffee shop

What does it take to get a new coffee shop off the ground? Here are 12 points to get you there:

1. Conduct research

Before you commit time and money to your project, you should conduct essential research. This is the kind of information you need to know upfront:

• Where will you base your business? 

After your food and drink offering, the location of your business is the most important part of opening a coffee shop. You want a location with high visibility in an area with good foot traffic and perhaps a parking lot nearby. You also want a viable customer base. Do the math. Is the area where you want to open big enough to support another coffee shop? Can you attract enough people to your café to sample your menu? Are there already too many coffee shops selling in the same territory? If your chosen location is either too competitive or the local population is too small to support your business, look elsewhere.

• Who are your target customers?

Few coffee shops can appeal to everyone. Instead, you’ll aim your business at a small segment of the people who live and work in your area. Who are they? What is their price point? What expectations will you need to meet – for example, are you fast and simple, selling coffee for folks on the move, or are you the kind of café where people want to linger and enjoy a light meal? Determine your ideal buyer, then shape your theme, menu, branding and marketing accordingly.

2. Choose a concept

If you’re not buying into one of the major coffee shop franchises , you need to design the look, theme and style of your café from scratch. There are three basic coffee shop formats:

• Coffee to go: This is a simple kiosk store where customers order at the counter and then take their coffee or food away with them. Your menu is basically drinks plus snack items, such as donuts.
• Counter-service café: Similar to above, but now you add a few tables and chairs for customers to eat and drink inside as well as buy coffee to go. No wait service. Your menu comprises drinks, snacks and light meals such as sandwiches.
• Full service café: This is more like a casual restaurant. Customers are seated at tables and served by staff who bring their order to them. Your menu can include drinks, alcoholic beverages, snacks, sandwiches, cakes and light hot meals. 

Clearly, the more bells and whistles your venue offers, the more it will cost to set up and maintain. However, your average sale will typically be larger the more sophisticated your café is. You could also boost customer traffic by joining with another business, such as an existing book shop, where you feed off each other’s customers. If you have space, you could also add a drive thru to capture more commuter traffic.

If you choose to buy into one of the major coffee shop chains your format will be decided for you, as will your price point, décor, menu and marketing. This route can be faster to get started and provide some added guarantee of success, but it can also be expensive. For example, to open a Dunkin’ Donuts franchise you can expect to spend anywhere from $437,000 all the way up to an eye-watering $1,787,000.

3. Write a business plan

If you’re seeking external investment or a commercial business loan to open your café, you’ll need a detailed business plan to support your pitch or application. Investors and lenders will want to know why you need their funds and what the money will do for your new coffee shop. Business plans should do more than paint a rosy picture – explain the risks involved, what the downsides could be – and how you intend to overcome them. 

Even if you don’t need investment or a loan, a business plan can still be a very useful vital tool. Use it as your business manual, referring to the contents to guide your strategy and manage your financials.

Find out more about creating your business plan here.

4. Get funding

If you don’t have enough cash on hand to launch your new business on your own, you’ll need funds from investors or lenders. Many new business get started using financial support from friends and family, but if that’s not an option, there are networks of venture capitalists and angel investors readily available online. Bringing in external investment can give you the cash you need to get your coffee shop off the ground but be aware that investors will usually want a piece of the action in exchange for their money. This means you will need to give up a share of your ownership and you may lose overall control of the business. 

With a business loan you don’t have to surrender a share of your store to get the funds. Although it’s never easy for new businesses to borrow money, some lenders have special products and programs for startups and entrepreneurs. These types of financing include:

• Term loan – this is a lump sum that you pay back over time. Borrow up to $5million over as long as 25 years. Collateral may be required.
• Business line of credit – a loan that functions like a high-value credit card. Withdraw cash anytime up to the maximum of your credit limit. You only pay interest on the sum you withdraw, not the whole line. This can significantly reduce your borrowing costs. Collateral may be required.
• Merchant cash advance – borrow against the value of your credit/debit card sales. As your card sales increase, your credit limit goes up. Pay the loan back with a small percentage of your weekly or daily card sales. No added collateral is required.
• Equipment loans use the asset you’re financing as security, similar to a car loan or a residential mortgage, so no added collateral is required.  Buy machinery, furniture, technology, etc. Use the equipment as you pay for it. 

To get these types of loan you can approach banks, credit unions and online lenders one by one, or you can use the services of a loan marketplace that will immediately introduce you to a choice of loans from a range of lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for borrowers who have never taken out a business loan before. 

5. Find a commercial space

Your coffee shop concept and your business location influence each other. For example, if you choose a location in a downtown area where there are lots of offices, you may do well by offering lunchtime cuisine and a place for office workers to hold impromptu meetings. Alternatively, if your location is near a busy transit hub, a simple kiosk store selling coffee to go may be in order. Keep in mind that if you lease or buy a space that was not previously a restaurant or café, you’ll need to convert the premises for the sale of food and drink – which may also mean re-zoning – and make sure it complies with state and local health and safety rules. 

6. File for permits and licenses

Venues that sell food and drink – including coffee shops – are governed by a host of laws, and you’ll need to get the necessary licenses and permits to operate. If you sell alcoholic beverages, you’ll need to register with the federal Alcohol and Tobacco Tax and Trade Bureau (TTP) and obtain a liquor license . You’ll also need to get state and local operating licenses and permits for your location, including a health inspection permit from local health inspectors. They will need to inspect your café to ensure it meets hygiene and safety standards before you open for business.

Required licenses and permits for a coffee shop:

• Business license – usually provided by local or state agency
• Employer Identification Number (EIN) – available from IRS
• Food service license – from local authority such as city manager’s office
• Liquor license – from TTB and your state’s Alcoholic Beverages Control agency
• Health permit – from your local health inspection agency

7. Design your coffee shop layout

The design and efficiency of your coffee shop will have great impact on your business. You want a space that functions well but also provides customers with a pleasing experience. All venues that sell food and drink, including simple coffee shops, are divided into two sections – front-of-house and back-of-house.

Front of house: This is the area of your café where customers are served.

• Customer capacity – ensure that your café can accommodate the number of customers you expect to serve at any time based on the size of your dining area and the service you provide. This may be less critical for kiosk stores, but if you’re offering a sit-in service you can either maximize the number of seats to increase revenue or offer spacious seating arrangements for a more relaxed experience. Keep in mind that customer numbers will also usually be restricted by the fire code set by your local health and safety inspector.
• Customer experience – as well as creating a free-flowing space that allows your café to work efficiently, avoid aspects that can degrade the customer experience such as visible bussing stations and tables sited close to restroom entry points.
• Furniture – your furniture should be comfortable for your guests and fit your store’s theme. Consider style, material, and durability to ensure it can withstand the demands of daily use in a commercial setting.
• Ambiance and décor – the ambiance and decor of your front-of-house area are important to create an inviting atmosphere for customers. Specialty lighting, pleasing color schemes, artwork, and music can enhance the customer experience and create a cohesive atmosphere. Pay attention to small details such as table settings, wall decorations, and even plants or greenery to add a touch of freshness and visual interest. 
• Cleanability:  In an environment where spills and messes are inevitable, it’s essential to choose materials and finishes that are easy to clean and maintain. Select furniture coverings and flooring that are stain-resistant and durable, such as laminate, vinyl or stone.
• Traffic flow: Your workers need to move efficiently around your coffee shop. Ensure your layout provides clear pathways for servers to navigate between tables, serving stations and the kitchen area. 

Back-of-house: This is the area of your café that customers usually do not see and where food and some speciality drinks are  prepared. It includes kitchen, storage areas, cleaning stations etc. You want a layout that handles all of the back-of-house tasks with good traffic flow and efficiency.

• Ware-washing – you’ll need sufficient space for a ware-washing area. This area should include a dishwashing machine, a three-compartment sink for manual washing, space for dish racks, and shelving for clean dishes. 
• Dry and cold storage – dry storage spaces should be clean, organized, and easily accessible for inventory management and stock rotation. Cold storage spaces, such as walk-in refrigerators and freezers, should be strategically placed to minimize the distance food needs to travel from storage to preparation areas.
• Food preparation – an efficient food preparation area controls the flow of ingredients, equipment, and personnel. This area should include sufficient counter space, cutting boards, sinks, and storage for utensils and equipment. Placing preparation areas close to refrigeration and dry storage areas can help streamline workflow and reduce unnecessary movement.
• Cooking – this area should accommodate your café’s specific cooking equipment needs, such as ranges, ovens, grills, and fryers. Consider ventilation and fire safety protocols when planning the layout of the cooking area. Proper ventilation systems should be in place to remove heat, smoke, and cooking odors from the kitchen.
• Service – this area should provide quick and efficient plating, ensuring proper organization of prepared dishes. It should be equipped with counters, warming equipment, and storage for plates, utensils, and garnishes.

8. Find a source for your coffee beans and supplies

Your key food suppliers will be determined by the theme of your café  – for example if you’re operating an artisan coffee shop that specializes in rare coffee types, you’ll need suppliers who can get those exotic coffee beans to you as fast and as fresh as possible. Depending on the type of café you’re running, you’ll need food suppliers for the following:

• Meat/fish/poultry/game
• Vegetables and fruits
• Rice and pulses
• Oils and ingredients to make sauces and marinades
• Desserts, cakes and pastries
• Soft drinks
• Alcoholic drinks

9. Order your coffee shop equipment

Your equipment needs will also be shaped by the type of café you operate. Typical commercial kitchen and back-of-house equipment includes:

• Coffee brewers
• Coffee grinders
• Espresso machine
• Coffee roaster
• Hot water dispenser
• Reach-in refrigerator
• Ice machine
• Compartment sink
• Glass washer
• Work stations
• Ventilators
• Storage racking and cabinets
• Pots, pans, knives, strainers, sieves etc.
• Cleaning equipment, scrubbers, rubber gloves etc.

If you don’t have the cash to buy the equipment you need, consider equipment financing that lets you use the equipment as you pay for it. You may also be able to find some used commercial kitchen equipment that will be cheaper, although you should always check for damage and faults before making any large purchases.

10. Hire and train your staff

Unless you plan to cover all the bases yourself, you’ll need employees to make your coffee shop work. You may be able to operate with only a small number of experienced employees, such as your head barista, in the early days of your venture. For unskilled work, bulk up your staff numbers with less experienced workers who will command lower salaries. 

The total number of employees you need will be determined by the size of the business and what kind of service you provide. 

11. Market your coffee shop

As the old saying goes, advertising pays – and you’ll need to market your new café to establish a solid customer base. Experts suggest allocating up to 20% of your operating budget to marketing activities in the first year of operation. 

Before you start any kind of marketing activity, conduct some basic research – what are your competitors selling? What kind of loyalty programs do they offer? Are there any successful promotional tactics that you can mimic? Create a plan that promotes your brand and sets your coffee shop apart from all the rest. Utilize a range of marketing actions to get your story across:

• Social media
• Flyers to local residents and commercial locations such as office blocks, hospitals, bus stations
• Local advertising
• Promotions for special products, discounts and loyalty deals
• Product tastings
• Sponsorships of local school sports teams
• Special events

12. Host a soft opening

Before you go live with your shiny new café, you’ll want to run some tests to make sure everything works and to iron out any glitches. In the hospitality trade, these tests are called a ‘soft opening’ and you will usually invite friends, colleagues and contacts garnered from your business’ social media accounts to come and kick the tires. Typically, you offer discounts or some other benefit to those that attend. In return, you get to ask them for a detailed review. 

Holding more than one soft opening – perhaps for a whole week before your grand launch – can give you valuable business information, allowing you to sort out any kitchen issues, finetune menus, improve ambience and décor and tailor your pricing.

How much does it cost to open a coffee shop?

When it comes to cost , the price to turn a vacant space into a kiosk type coffee shop  or an upmarket full-service café will depend on your location, the size of your operation, your leasing and build-out costs and the sophistication of your fixtures and furnishings. Expect to spend anywhere from $60,000 to $300,000 if your venue includes features such as a parking lot or drive-thru. No matter if you’re leasing the space or buying the property for cash or with a commercial mortgage , be aware you will also be responsible for property taxes, permits, inspections and agency fees.

What do coffee shop startup costs include?

The more sophisticated your coffee shop is, the more it will cost to launch, but in most cases you should expect to pay for the following to get your café started:

• Lease deposit and fees
• Utility deposits
• Build-out costs 
• Furniture and equipment
• Technology costs – including POS system, CCTV and alarm
• Inventory and basic supplies
• Marketing costs – including website build
• Employee recruitment and training costs
• Insurance premiums
• Permit and license fees
• Inspection fees
• Legal expenses and business registration costs

How Swoop can help

Running your own café can be lucrative and a lot of fun, but you’ll need cash to get you there. Funding is where Swoop can really help. No matter if you’re launching a brand-new coffee shop, or you’re buying an established business, chances are you’ll need finance to make the operation grow. Many types of business loan are suitable for coffee shops, but working with finance experts can make all the difference when applying for funding. Contact us to discuss your borrowing needs, get help with loan applications and to compare high-quality business loans from a choice of lenders. Eliminate the financial grind. Register with Swoop today .

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

Swoop promise

At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

Find out more about Swoop’s editorial principles by reading our editorial policy .

Create your free Swoop account to easily apply for startup business funding

Related pages

• Can I get a startup business loan with no money or credit?
• Consulting business
• Farming business
• Graphic design business
• Gym business
• How much does it cost to start a business?
• How to choose your title as a business owner
• How to get a liquor license
• How to get a loan to start a business
• How to incorporate a business
• How to open a bar
• How to start a car rental business
• How to start a cleaning business
• How to start a food truck business
• How to start a retail business
• How to start a small business
• How to start an eBay business
• How to start an ecommerce business
• Landscaping business
• Laundromat business
• Makeup business
• Moving and removal business
• Nursery business
• Open a gas station
• Open a liquor store
• Open a pizza shop
• Start a bakery
• Start a brewery
• Start a business
• Start a car detailing business
• Start a catering business
• Start a non-profit organization
• Start a photography business
• Start an online business
• Transport business
• Vending machine business

The Best US Business Opportunities in 2025

What is a good credit score?

What documents do you need for your funding application? A business owner's guide

Open Banking – what is it and how does it work?

Clever finance tips and the latest news

delivered to your inbox, every week

Join the 70,000+ businesses just like yours getting the Swoop newsletter.

Free. No spam. Opt out whenever you like.

By subscribing, I accept the privacy-policy and I give my consent to receive Swoop Funding e-mails about the latest updates and offers.

18 Soho Square, W1D 3QH, London, UK

Suite 42, 4th Floor, Oriel Chambers, 14 Water Street, Liverpool, L2 8TD

Kingfisher Way, Silverlink Business Park, Newcastle upon Tyne, NE28 9NX, UK

Suite 105A, Airivo, 18 Bennetts Hill, Birmingham, B2 5QJ

Aberystwyth

Aberystwyth Innovation and Enterprise Campus Gogerddan Campus Aberystwyth University Ceredigion SY23 3EE

Dogpatch Labs, The CHQ Building, Custom House Quay, Dublin, Ireland

Suite 801, Level 8, 84 Pitt Street, Sydney, NSW 2000, Australia

180 John St, Toronto, ON M5T 1X5, Canada

43 W 23rd St, New York, NY 10010, United States

21 Dreyer Street, Cape Town, South Africa, 7708

Join the 70,000+ businesses just like yours getting the Swoop newsletter. Free. No spam. Opt out whenever you like.

Running a Coffee Shop Business Plan: From Barista to Business Owner

Opening a coffee shop can be an exciting and satisfying venture. It’s a place where people gather to enjoy their favorite beverage, connect with friends, or find a moment of solace.

In this article, I will go into the key elements of creating a strong business plan for your coffee shop, covering everything from market analysis to financial projections.

Table of Contents

Executive Summary

Outline your target market, demonstrating a solid understanding of your customer base and their preferences. Emphasize your competitive advantage, showcasing what sets your coffee shop apart from others in the market. This could be your unique offerings, exceptional customer service, or prime location.

Read more about: Online Coffee Business Plan: Brewing The Digital Blend

Company Description

Begin by articulating your vision, which encapsulates your long-term aspirations and what you envision your coffee shop to become. Next, outline your mission, which clearly defines the purpose and values that drive your business. It should reflect the core principles and goals that guide your daily operations.

Describe your coffee shop’s concept, whether it’s a cozy neighborhood café, a trendy specialty coffee shop, or a combination of both. Elaborate on the type of coffee you’ll offer, such as single-origin beans, organic blends, or a unique signature roast. Highlight any distinct brewing methods or specialty beverages that showcase your expertise and passion.

Market Analysis

Examine the competitive landscape by researching existing coffee shops in your area. Consider their offerings, pricing, and customer base. Identify any gaps or opportunities that you can leverage to differentiate your coffee shop.

Organization and Management

The structure of your coffee shop’s management team is crucial for smooth operations and delivering exceptional customer experiences. Describe the key roles and responsibilities of personnel, such as the manager, head barista, kitchen staff, and front-of-house staff. Outline their qualifications, highlighting relevant experience, certifications, or training that make them valuable assets to your team.

To ensure consistent quality in customer service and coffee preparation, detail your plan for employee training and development. This may include comprehensive barista training programs, workshops on customer service and communication skills, and regular skill enhancement sessions. Emphasize your commitment to ongoing learning and professional growth within your team.

Read more about: Nonprofit Coffee Shop Business Plan: Coffee, Community, and Compassion

Product Line and Menu

Consider including a diverse selection of coffee beans from different regions to cater to various flavor profiles and preferences. Specify the characteristics of each bean, such as its origin, roast level, and tasting notes. This not only adds depth to your menu but also allows customers to explore the world of coffee through their taste buds.

In addition to coffee, outline your selection of pastries, snacks, and other food items that complement your beverages. Include descriptions of freshly baked pastries, sandwiches, salads, or any other items that align with your coffee shop’s concept and target audience. Emphasize the quality of ingredients and any unique twists or local influences that set your food offerings apart.

Marketing and Sales Strategy

Describe how you plan to promote your coffee shop. Utilize social media platforms to create an online presence, engaging with your audience through captivating content, promotions, and customer testimonials. Collaborate with local businesses by offering partnerships or cross-promotions to expand your reach. Host events, such as coffee tastings, live music performances, or educational workshops, to generate buzz and attract potential customers.

Operations Plan

Describe the layout and design of your space, emphasizing the importance of creating a warm and inviting atmosphere. Consider factors like comfortable seating, appropriate lighting, and aesthetically pleasing decor. Ensure that the layout promotes smooth workflow and provides ample space for both customers and staff to move around comfortably.

Outline the equipment needed for coffee preparation, storage, and display. This includes espresso machines, grinders, brewing equipment, refrigerators, and display cases. Specify the maintenance and cleaning procedures for each piece of equipment to ensure optimal functionality and hygiene.

Read more about: Operations Plan

Financial Projections

Project your revenue by considering factors such as the average number of customers per day, the average transaction value, and the pricing of your products. Take into account seasonal variations, local market conditions, and industry trends. Use market research and competitor analysis to make informed projections.

Anticipate your expenses, including rent, utilities, employee wages, marketing costs, raw materials, and ongoing operational expenses. Be realistic and conservative in your estimations, factoring in potential fluctuations in costs and unforeseen circumstances.

Consider seeking assistance from a financial advisor or accountant to ensure accuracy and reliability in your projections. Their expertise can help validate your financial analysis and provide valuable insights into financial strategies, potential risks, and investment opportunities.

Funding Request

Provide a detailed breakdown of how the funds will be allocated, emphasizing how each expense will contribute to the growth and profitability of your coffee shop. This level of transparency helps potential investors or lenders understand the purpose and value of their investment.

Frequently Asked Questions

Questions: how do i conduct market research for my coffee shop business plan.

Answer: Utilize surveys, interviews, and online research to gather valuable insights about your target audience’s preferences, purchasing power, and location-specific dynamics.

Question: How can I differentiate my coffee shop from competitors?

Question: what financial aspects should i consider in my coffee shop business plan.

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

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

Share This Story, Choose Your Platform!

Related posts, best ways to implement sustainable practices in your coffee shop, how to host events at your coffee shop, best coffee shop loyalty programs to implement, infusing style and substance: a blueprint for coffee shop design, infusing comfort and charm: small coffee shop design concepts.

Coffee Shop Business Plan Template

If you want to start a coffee shop business or expand your current one, you need a business plan.

Over the past 20+ years, our coffee shop business plan template has helped over 7,000 entrepreneurs and business owners create business plans to start and grow their coffee shops.

How To Write a Business Plan for Coffee Shop Owners

Below are links to a guide for writing each of the key elements of your own coffee shop business plan:

• Executive Summary – The Executive Summary includes an overview of your business plan, highlighting the key points of your plan, such as the company’s mission, coffee and food products offered (specialty coffee beans, coffee drinks, etc.), target market, competitive advantage, financial health, and funding requirements.
• Company Overview – The Company Overview section should include a concise and compelling description of your coffee shop, including your mission statement, company structure, coffee products offered, and unique selling proposition. Highlight your commitment to quality, sustainability, and creating a welcoming customer experience.
• Industry Analysis – The Industry Analysis section should include a detailed analysis of the coffee industry, including market size and growth, consumer trends, economic factors, and the regulatory environment that may affect your coffee shop business.
• Customer Analysis – The Customer Analysis section should delve into the target demographic for your coffee shop. This includes identifying key customer segments, their preferences, and behaviors. Consider factors such as age, income level, lifestyle, and coffee consumption habits.
• Competitive Analysis – The Competitive Analysis section should provide a detailed overview of the local coffee market. Identify direct competitors, their strengths, weaknesses, target market, and pricing strategies. Analyze potential threats and opportunities arising from competition.
• Marketing Plan – The Marketing Plan section should outline your marketing strategies to attract and retain customers. This includes identifying your target market, developing a strong brand identity, and implementing effective marketing campaigns. Consider leveraging social media, local partnerships, and loyalty programs to build a loyal customer base and drive sales.
• Operations Plan – The Operations Plan is a crucial component of your coffee shop business plan. This section will outline the day-to-day operations of your shop, including staffing, equipment, inventory management, and customer service.
• Management Team – The Management Team section should outline the qualifications, experience, and roles of the individuals who will be responsible for the day-to-day operations of the coffee shop. Key members might include a general manager, a barista supervisor, and a financial controller.
• Financial Plan – The Financial Plan section should provide a comprehensive overview of the coffee shop’s financial projections. This includes detailed breakdowns of anticipated revenue streams, operating expenses, profit margins, and cash flow. It should also outline the funding requirements for the business, including potential sources of financing and repayment schedules.
• Appendix – The Appendix section of your coffee shop business plan should serve as a repository for supporting documents that provide additional context and depth to your proposal. This may include market research data, competitor analyses, lease agreements, permits and licenses, insurance policies, financial statements, and any other relevant materials that can strengthen your business plan.

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is a coffee shop business plan.

A coffee shop business plan is a formal document that outlines the goals, strategies, and tactics for launching and operating a coffee shop. It describes in detail how the business will operate, including the types of products and services provided, the target market, the proposed location, and the projected financials. It serves as a roadmap for the business and helps to ensure that all aspects of the business are considered and planned for in advance.

Why Do You Need a Business Plan?

A business plan is an essential document that captures your vision, outlines your market, and provides the financial blueprint for your entire operation. It is a guide to your overall business planning process and is important for all of these reasons:

1. A business plan sets a clear direction: Perhaps the most significant benefit of having a business plan is that it gives you a clear direction and purpose. It outlines your goals and objectives, how you plan to achieve them, and the timeline and resources required. A well-written business plan also clarifies your target audience and helps you understand their needs and preferences. With a solid business plan, you’ll have a better idea of where to focus your efforts and resources, which can save you time, money, and frustration.

2. Helps secure funding: Opening a coffee shop requires a significant investment in equipment, inventory, rent, and staffing, among other expenses. To secure funding from investors or lenders, a business plan is essential. It demonstrates your knowledge of the industry and market trends, your marketing strategy, financial projections, and how you plan to mitigate risks. A well-thought-out business plan can help convince potential investors that you have a viable idea and are a good investment.

3. Provides a roadmap for growth: A business plan is not just for starting your coffee shop; it’s also essential for long-term success. It’s a roadmap that can help you navigate the ups and downs of running a business. A good plan should contain measurable goals that you can track and adjust as needed. It should also have contingency plans if things don’t go as expected. As your coffee shop grows and evolves, refer to your business plan to ensure that you stay on track and adapt to changing market conditions.

4. Attracts and retains employees: In addition to investors and lenders, your business plan can also help attract and retain employees. A clear business plan shows potential employees what your vision is and what you want to achieve. It also shows them how they can contribute to your success and how you plan to reward them for their efforts. Once you have your team in place, refer to your business plan to ensure everyone is aligned with your goals and objectives.

5. Enhances credibility and professionalism: Finally, a business plan can enhance your credibility and professionalism. It shows that you have thought through your ideas and have a clear plan for how to execute them. This level of detail and preparation can go a long way in building trust with potential investors, lenders, employees, and customers. A well-written business plan can also make you stand out from your competition by demonstrating your attention to detail, industry knowledge, and commitment to success.

What Are the Sources of Funding for a Coffee Shop?

The main sources of funding for a coffee shop are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business and ultimately help you secure funding.

The second most common form of funding for a cafe or coffee shop is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

How Do I Download a Free Business Plan Template for a Coffee Shop?

You can download our coffee shop business plan PDF template and use our sample coffee shop business plan to write your own business plan. If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Coffee Shop Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.

What Other Resources Are Available for Coffee Shop Owners?

How To Start a Coffee Shop

Coffee Truck Business Plan Template

COFFEE SHOP BUSINESS PLAN OUTLINE

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

Start Your Coffee Shop Plan Here

Other Helpful Business Plan Articles & Templates

How to Open A Coffee Shop

If you’re looking for the definitive guide to opening a coffee shop in 2020, this is it.

Our business is built entirely on the foundation of “Helping People Succeed in Specialty Coffee”. In short, this is what we do. We help people open coffee shops, and help people who own coffee shops run them to be more efficient and profitable. This is our niche. 

If you’re in the beginning phases of opening a coffee shop, or already own one and are looking for ways to improve it – you are our target audience. We exist solely to help YOU.

It’s what our company has been doing for over 30 years, and what we have done for thousands of coffee shops worldwide in that time span. 

We’re based out of Portland, Oregon. One of the most competitive coffee markets in the world. Within this market, we run two successful coffee shops and one of the top selling roasteries in the Pacific Northwest. In short, we walk the walk and talk the talk. 

Being cafe and roastery owners ourselves helps us to remain in touch with the needs of our customers, and gives us the understanding of what we need to do in order to serve them best. 

This guide is designed to help anybody looking for help with the question, “how to open a coffee shop and how to do it the right way, the first time.”

Before you spend another dollar on your business, we strongly encourage you to read this guide, take notes, and get back to us with anything you need clarified. We’re here to help.

Develop an Airtight Business Plan

One of the most common questions we get is: “Do I need a business plan?” 

The answer is usually… it depends.

Usually when someone asks this question, they’re talking about a fully fleshed out financially-deep, written business plan – the type that you’d take to a bank during the startup phase while securing investors or a loan. While that’s useful if you’re trying to secure a large loan from an investor (and wise to consider finances in the long-term), the type of business plan we believe to be most beneficial in the early stages of opening a coffee shop? It’s more of a general gameplan and guideline that helps you understand how you position yourself in a competitive market, what makes you stand out, the brand identity you need your employees to embody, and so on. 

All businesses start with an idea. Maybe your idea is entirely unique; you’ve never seen anything like it anywhere. Maybe your idea isn’t entirely unique, but it IS unique to your area. Whether you want to open a large cafe or a  coffee cart , you need a game plan.

Your business idea and plans can run the gamut, but without a plan, it will likely always be just that. An idea. A perfected business plan brings life to your ideas, and forces you to consider everything you need to consider in order to both show others how seriously you’re taking your dreams, but also to provide a roadmap to follow throughout the life of your business. A business plan shows that you’re serious about what you want to do, you’ve done your homework, and gives structure to an otherwise intangible idea. It’s the road map that gets you from A to Z. 

But where do you get started? Some people may have gone to business school to prepare for this moment, but a great majority of our customers haven’t. 

That’s where  our business plan  comes in. More than anything else, it is to keep you and anyone you work with organized and focused on your goals, understanding their role in the grand scheme of things. When starting a business, the best advice for starting out is that you always want to fill a niche. You need to fully understand the needs of your future customers. Are you positioned in a bustling downtown area full of people coming and going to work? Maybe you don’t need a large space with a lot of seating. But if you’re near a college, for example, you WILL need lots of tables, couches, and chairs (and outlets for people to charge their laptops at!). Keeping your business plan flexible allows you to address the unique needs of whatever location you decide to go for. Your location and ideal customer can’t be ignored even in the early planning phase. 

If you’re looking to be one of the first coffee shops in your area and without much competition, you might be able to get away without a structured plan. But if you’re looking to open a coffee shop in a competitive market – you will need to have a truly original idea, and to understand your audience as best as humanly possible. THAT is how you’ll get customers coming through your doors, day in and day out. A good business plan helps guide you towards success by forcing you to think about important details that may not be obvious at first. 

One tip – you may find your concept changing as you work through your business plan – that’s normal! You may even find out your idea just doesn’t make sense on paper. You can theoretically spend lots of time and effort on something only to find that your idea isn’t working out half way through – it can be demoralizing, but working through a business plan makes sure you’re not investing thousands of dollars in an idea that’s doomed from the start. At the end of the day, it’s better to lose a little bit of time and effort than potentially delve into a big, expensive business endeavor that never had much of a chance to begin with. Working through these things sets you up for success when you finally do have that winning idea and location.

The bonus of a business plan is you can use it to secure investors, create interest, and convince your family and friends that your idea isn’t just a pipe dream. It also functions as your basis for training and getting your employees as passionate about your shop as you are. Having a business plan conveys you’re serious about what you’re trying to do. 

Building a good business plan requires a lot of time and effort. In the early days of Bellissimo, one of our most popular services was creating business plans for coffee shops, much like ours. Over time, we began to realize there were a lot of consistencies showing up from coffee shop to coffee shop. Shop owners would routinely ask the same questions, or want the same things in theirs. We would charge multiple thousands of dollars for these business plans, and our business plans eventually grew to be such a unique item, we decided to pivot our strategy into the concept of “let’s templatize this business plan, make it more affordable, and make it available to a wider audience.” 

In doing this, we were able to utilize the internet in a way that we couldn’t before, and get our tried and true, battle tested coffee shop business plan in the hands of soon-to-be coffee shop entrepreneurs around the globe. By lowering the price to a meager $695 (rather than the thousands we used to charge for one-on-one plan writing), we have been able to expand our reach, and streamline the process for thousands on their way to coffee shop success. 

If your coffee shop does not currently possess a streamlined, developed business plan, we encourage you to check ours out. 

Find the Perfect Location

Finding the right location is possibly the most important thing a potential coffee shop owner can do. Without the right location, everything else you do is potentially wasted effort. After all, what good is excellent coffee, customer service, and an affordable lease if there are no people around to sell your beverages to?

What to look for

Traffic. Traffic and accessibility are your essential needs. Depending on the community that you serve, it can be vehicle traffic (namely if you’re opening a drive thru or have ample parking, but foot traffic is ideal). Through marketing and promotions, you may occasionally attract customers outside their immediate living and working areas, but you will almost never get regulars. That’s why you need to be near as many people as possible. Large office buildings, hospitals, and tourist areas are the most ideal centers to concentrate on. Apartment buildings are not bad either, but generally won’t lead to quite as much business. They sound great in theory, but remember that a majority of people brew their coffee at home, only going out occasionally. It’s unwise to limit your audience to only the people who live in a specific building and bank on them to come down every day.

Any location is a balancing act between cost and benefit. The best locations are usually much more expensive, and most coffee shops just have to justify extremely high rent costs. The exception to this is smaller spaces that may be more affordable. They also allow for more customer turnover, and can be a great option for coffee businesses. Namely if your clientele do not need lots of space to sit. Many coffee shops can be hugely successful in a small space due to low overhead and a constant flow of customers.

The last thing that can make or break a location is renovations. It’s tempting to look for a place that was already a restaurant or coffee shop, but that’s not always the best idea because a business already failed there once. At the very least, it’s important to figure out why that business failed and what you can do differently. When looking at locations that aren’t properly vented and plumbed, make sure to factor in that cost (or talk to the landlord about doing it) because it can quickly turn into a massive investment. 

Cafe Locations vs Coffee Cart Location

Both cafes and coffee carts want similar things out of a location. Foot traffic is essential, as well as visibility. However, because coffee carts are smaller and have less overhead, they are more flexible with where they can be placed. Mobile coffee carts also have he benefit of changing locations depending on where the best market is. Cafes are a bigger investment with a potentially bigger profit, but they have to be positioned well. Coffee carts are a little more forgiving when it comes to initial investment and location, so they are a popular entry point into the industry.

How to get your ideal location

Finding your ideal location is one thing, but actually getting it is a whole new challenge. The most important thing to remember is:  negotiate!  Be able to talk about your business what the benefits of it clearly. Data (even data that isn’t perfect) can help drive your point home. By opening a coffee shop in a space you’re inherently bringing value to whomever owns it, not the other way around. Leverage that idea when negotiating for price and buildout. Don’t forget that things like plumbing and counters are the landlord’s property, so your landlord may contribute to those expenses. Remember, a coffee shop almost ALWAYS brings up the value of a neighborhood and adds significant foot traffic to any shopping center. They are seen as valuable community meeting spaces, and homes within walking distance of a coffee shop are more desirable. The very nature of you bringing your business to a neighborhood should be seen as a huge plus to any landlord. However, don’t assume that every landlord will automatically understand the value your business can bring, so it’s up to you to help them understand what they stand to gain by leasing to your business and helping you with your buildout.

Develop Essential Skills

Barista skills.

Plenty of people with varied backgrounds or entrepreneurial spirits want to open a coffee shop even if they’ve never worked in one, and that’s fine! Strictly speaking, you don’t need to have been a barista to open a coffee shop, but it really helps. A part time barista job while you work on your coffee bar can at least get you started with the knowledge you’ll need. Not being able to jump behind the bar or train employees yourself can be a huge disadvantage when opening a new coffee business. You’re guaranteeing the need for a partner or a skilled manager, and then relying on their schedule for any other employees. You also won’t be as informed when it comes to the products you offer because you won’t have the firsthand knowledge of creating them and seeing how customers react. 

Certainly, you could work as a barista for a period of time; many people do. Working as a barista is a great method to see if a coffee shop environment is right for you. You learn the skills, get practice working with a team, and when it comes time to hire employees you have a better idea of what to look for, but if you want those skills without having to work for a few years,  we have a solution for you . 

By investing in your barista education and training, you naturally improve your ability to train your future employees. Remember, even your best baristas will likely not work for you forever. It is up to YOU to be able to train future employees to be able to provide consistently great products that keep your customers returning happily over and over again. 

Business Skills

Maybe you’re in the opposite position: you’ve been a barista and want to open up your own shop. Barista skills are vital, but a coffee shop needs a lot more than that to run well. Here are some of the business skills you’ll need to be confident in:

Negotiation

We talked about the importance of lease negotiation before, but that’s not the end of it. Opening a coffee shop is expensive, and paying sticker price for everything is often just not feasible. Negotiation doesn’t have to be hard and you don’t have to be pushy. These strategies are sometimes effective, but they sometimes aren’t. 

The most tried and true method of negotiation is being able to assess and communicate value. 

It might be your business’s value to someone else (like a landlord), or it might be a machine’s value to your business. In business, everyone is looking to get as much as they can, but everyone understands this. That’s why this value language is universal. Communicating benefits when talking about your own value and communicating challenges when buying are should help to get negotiations started off correctly.  

In day one of our  five day workshops  on how to start a coffee business, we spend a good amount of time teaching negotiation tactics and techniques for ways to convince landlords that your business is worth investing their time and resources in. With just a few simple techniques and concepts worth understanding, we have seen our students negotiate up to 3 years of free rent in a new building for their cafes, or negotiated with  landlords to do their entire buildout (saving them tens of thousands of dollars in renovations). The return on investment from one of our workshops often can pay off ten fold. 

Network early and network often. 

You never know who might become a valued partner or a customer. It’s no secret that a lot of people drink coffee. It’s also obvious that to many consumers who don’t have developed palettes, there are plenty of options for “good” coffee. It’s easy to pick out bitter, sour coffee, but identifying the subtle nuances of coffee beyond it just tasting better is beyond many people, so having a coffee shop that stands out for other reasons helps bring in customers. One way to stand out and start networking is by being present on the floor and in your community. Humans are communal creatures; we like seeing other humans. If we associate a face with a business instead of just a brand, we are far more likely to want to return to that business. 

Additionally, word of mouth is one of the most powerful means of getting new customers. By grabbing the attention of one person, you might also grab the attention of their friends and family. This goes a long way towards building up your shop as a real member of a community. Once you’ve attained that status, you know your networking is succeeding.

And never underestimate the power of reviews. They say that a negative review reaches five times the amount of people than a positive one. By being present in your business, you can drastically improve the amount of control you have in ensuring your customers have a positive experience (and your employees can learn from your example of how they should best interact with customers, a double win!)

Nearly every coffee business is going to need an employee at some point, so this is a skill you’ll need. The most important advice we can give when it comes to hiring is to focus on personality and attitude instead of skills. Ask  interview questions  like: 

• How would your supervisor and co-workers describe you?
• Give me an example of a time at work when you went above and beyond what was asked of you.
• Tell me about a difficult situation at work, how you got through it, and what you learned.

Bar skills can always be taught, but finding someone willing to go the extra mile with customers and for your business is nearly impossible to teach. Like we say above, good coffee is subjective to most customers, but good service is something they’ll remember. With every customer, you’re looking to make your coffee shop their coffee shop, and not everyone can do that. Of course, finding the right employees is only the first step. 

Unless your pockets are very deep, you likely will not be able to afford hiring a qualified manager in the beginning phases of your cafe. It is imperative that you possess management skills, or can learn. Good management is not as simple as “being the boss”. As a manager, respecting and valuing your employees is first and foremost. Just making demands is the fastest road to unhappy and underperforming employees. 

We all like to feel like we’re part of something, so give your employees opportunities to take part in your business. Encourage them to invent drinks, take pictures for social media, and anything else you can think of for them to take part in and feel valued. Most baristas are multi talented so find out what hobbies your employees have. An artist might be able to contribute to a unique menu while a photographer might be able to take pictures for your website. It’s important to remember that even your best employees will likely not be with your company many years down the road. (of course, if they are, then by all means you’ve struck gold. Be sure to reward them) – in general, however, being a barista is typically a pit stop in a persons journey through life and few make it a long term career. Remember that, and appreciate the humanity behind your employees. Let them flourish in ways that show that you respect them, and they’ll reward you by doing a great job of what you expect out of them.  Just be sure you make it clear what it is you need from them .

An unavoidable part of managing is conflict. Sometimes it’s employees in conflict with each other, sometimes it’s a conflict between you and an employee. Good management means not letting it get personal and keeping things focused on how to improve performance as an individual and in a team. 

Remember, YOUR performance might be what needs improving. Always try your best to stay objective and understand the needs of the business, see what other people see, listen to the feedback you receive even when it might be uncomfortable. Listen to what your employees have to say, or what they might seem unhappy about. Hold monthly meetings and encourage your staff to bring up anything they feel particularly excited or worried about. 

Assuming they want to do a good job (most people do), there is probably a reason for certain tasks not getting done right or at all. Listen and brainstorm ways to make processes easier or more streamlined. Help your employees feel heard and use their insight to improve your business. 

Treat meetings as a constructive experience, and not a place to allow for complaints. Create a process where everyone can feel like their complaints will be heard and addressed in a constructive way – but meetings are NOT that place. Lots of things can affect people’s performance, and you never know what someone will be going through on a given day. If it’s not personal, it might be something trivial that you can address quickly and easily. Be sure you’re present, and your employees know that you have an open door policy to hear what they have to say.

This doesn’t mean personal things can’t affect performance. Family or health issues are unfortunately common and often affect work performance. A sympathetic manager who makes an effort to understand those situations can mean a lot to an employee and talking through what’s happening can be all that’s needed to get things back on track.   

Budgeting & Inventory

Having an accountant in your corner can be a big help, but they can’t do everything for you. You also might not be able to fit an accountant into your own budget. What then?

Budgeting skills are vital in coffee where transactional profit is often low and inventory can make or break a business. Smart budgeting involves balancing past data with future assumptions to only spend as much money as you need. Budgets are seldom perfect, but being able to create one and develop it through observation is essential.   

A big thing that many coffee shop owners will forgo is keeping track of their cost of goods. It is easy to get in the habit of placing your orders and not looking at the invoices, but as your distributors raise their prices, you should too. If the cost of milk goes up, the cost of your lattes may need to go up as well. Otherwise, you’ll start to notice that your profits are quickly disappearing and you may not realize it until your profit is in jeopardy. 

We’ll cover marketing more in depth below, but it is an essential and unavoidable part of a successful business. Effective marketing starts with outreach, but also includes many more layers to actually bring paying customers in. A new drink, sales, etc. are all ineffective if not marketed well.  

“How am I supposed to learn all these things if I’m already working?” You could go to business school, but that path doesn’t make sense or is nearly impossible for many people who want to open a coffee shop. If you want to cut right to the important stuff while spending a fraction of what you’d spend on business school,  our 5-day bundle is perfect for you .

Stay Organized

Find good partners.

You’ll certainly need a good general contractor experienced in cafe/restaurant spaces (more on that later) but what about other partners? 

Step one is recognizing your weaknesses. As a business owner, you will have to be good at a lot of things, but no one can be good at everything. There are certain gaps that just can’t be ignored, and it might be wise to hire someone to help you in those areas. Here are four of the most common professionals you might want to look for:

Accountant or Bookkeeper 

Money is at the core of any business, so making sure everything is accounted for and accurate is essential. A good accountant/bookkeeper can alleviate a lot of the stress that comes with money and provide some recommendations based on experience. Coffee shop budgets can become complicated quickly, so hiring an accountant to help, even for a short time, is essential.

Business Attorney

You likely won’t need to put a lawyer on retainer, but developing and good working relationship with a business attorney is a worthwhile investment. There are certain things that you will just need a lawyer to look over. 

Human Resources Professional

Hiring an HR Professional is not as common as talking to a lawyer, but it should be. HR brings another perspective to your efforts that’s not just about what’s legal (though they can help with that too). By talking to an HR professional, you’re making sure all your employee policies are correct and lawful, and you can feel confident hiring and working correctly with your staff. 

Marketer 

Getting a good marketing plan early can be a game changer for new businesses. Asking someone with expertise to help you form a long term plan, make contacts, and execute strategies will pay off hugely in the long run. You may want to hire a marketer for a short time to get you started off and again down the line to scale your business up. 

Employee Handbook

Most coffee shops will need at least one employee even before they open, so we can not emphasize enough how significant it is to get this done early and correctly. Getting a thorough, clear employee handbook early on helps set expectations and procedures for anyone you work with. A good employee handbook must have the following: 

• Defining employees and their relationships with employers
• Standards of conduct for staff
• Team member communications
• Employment Policies
• Salary and Benefits Policies

Each of these sections needs to be carefully thought out and written. Once you have a completed handbook, you should also have it reviewed by an HR expert and a lawyer; your handbook can’t just be an afterthought. This document lays out everything you expect of employees and what employees can expect of you. It makes sure everyone is held accountable for what they agree to do. From a legal perspective, you need an employee handbook before one person works one hour for you. Ask any new employee to take time to read the handbook and initial every page. This simple process both makes sure everyone is on the same page as well as saves you from potentially spending thousands of dollars in legal fees. No business owner can afford to get their employee handbook wrong. However, getting this all right takes quite a bit of time and effort. To help new business owners focus on their business, we offer an  employee handbook template  that comes pre reviewed by legal and HR professionals and is designed to have you ready to go quickly. 

Operations Manual

Most prospective business owners know they need an employee handbook, but fewer know about the importance of an operations manual. 

Simply put: The employee handbook defines relationships and expectations, but the operations manual tells your employees how to actually do their jobs. 

An operations manual is a supplement to on the job training and acts as a reference for employees. It limits your liability by making sure employees know how to consistently make drinks, maintain machinery, and interact with customers. It also provides you and your managers tools to make sure every employee is trained up the same way and to the same standards. No one can blame a barista for not following proper procedure if it was never taught, especially when it comes to complicated equipment maintenance. 

You should treat your operations manual as the textbook of your business. It might not be the most exciting or glamorous, but it is vital to making sure your employees feel equipped to do their jobs and consistently give great experiences to customers. An operations manual and an employee handbook work together to communicate policy and make sure your business objectives are clear. Like the handbook, any new hire should sign and date a copy of your operations manual to make sure it is understood. 

Want to save even more time? We also offer an  operations manual template  that has everything your business needs.

Begin Building

How much does it cost to open a coffee shop.

Budgets for new coffee shops can vary especially depending on the equipment you want. To get an idea for what opening a coffee shop costs, here are some general figures:

One of the biggest expenses in a coffee shop is your initial equipment. Here are some estimates for the big things that you’ll see in most shops.

It’s not cheap, but being  budget conscious  can keep things from getting out of control. Buying used equipment is always an option, but try to find out how well the equipment was maintained. Poorly maintained equipment can end up costing more than brand new, and in the long run it can mean terrible value. 

Find Funding

Whenever opening any business, doing it with as little debt as possible is ideal. That means your first funding strategy should always be saving your own money. Being frugal can be hard, but it’s a good test to make sure you really want to open a coffee shop. Even after saving money though, chances are you’ll need funding of some kind. Here are some of the safest ways to get startup capital:

A lot of businesses start off with a Small Business Association Loan.  sba.gov  makes connecting with lenders about as easy as it can be. These loans are still very much loans, with all the trappings and potential challenges, but they are usually more tailored to fit businesses like small coffee shops and might have more generous repayment terms. Still, we recommend taking the smallest loan you possibly can.  

Angel Investors

Angel Investors are becoming a more popular means of finding funding. They are investors who have specifically stated their interest in small business who might have a hard time finding other loans, hence the term angel. However, there are far fewer angel investors looking to invest in hospitality businesses, so this method can still be challenging for coffee shops. Usually, you’ll need some kind of unique hook beyond just good coffee, like extreme environmental sustainability or a focus on charity work. 

City Grants

Cities are often looking for certain kinds of businesses to open. Driving tourism and spending is always a value proposition, and sustainability is becoming increasingly important. Investigate your local government’s website for grants to see what you’d have to do for them. Applying for grants is often a somewhat time consuming process, but it can pay off greatly and put you on the map for your city. 

Fundraising

Fundraising has one major pro and major con. The con is fundraising usually does yield that much money, but the pro is that money doesn’t require you to repay it. Fundraising is always more effective if you are already well known in a community and fundraise through a community event. Putting on a party further cuts into your bottom line, but just asking for money cold will not net you anything. 

“Should I try crowdfunding?” 

Sites like Kickstarter and Indiegogo have popularized crowd funding, and a few coffee shops have had success using those platforms. We caution against it because of how difficult it is to deliver rewards while you’re opening. Managing a campaign is also incredibly time consuming during a period where your time is very precious. This is a recipe for upset backers and a bad reputation. A much better use of crowdfunding is for a specific event or addition once you are already open and have an established brand.

Coffee Shop Design

Coffee shop design is a  topic unto itself , but we’ll give you the two most important design considerations right here: flow and upselling. 

All products have a certain psychology to them, and coffee is no different. Don’t just think about who your ideal customer is, but also their state of mind. A lot of people getting coffee are tired or grumpy, sometimes both. That’s why it’s very important to your customer experience to make your shop easy to navigate, your menu understandable, and you offerings clear. Internal signage helps, but flow really starts with design. The path from walking through the door to coffee in hand should be immediately obvious and easy to navigate. A good contractor with cafe experience goes a long way towards helping you develop a good flow. 

Coffee is a high margin but low cost product. We’re being honest here, just selling coffee is often not financially wise. Most cafes need to  raise the average “ticket price”  of their customers to stay viable. You don’t need every customer to buy food, beans, or merchandise, but you need a number of them to. That’s why most coffee shops place their pastry/food case near the ordering station to make adding on food easy. Positioning other addon items like beans along the path to ordering is essential. As people walk in they are visually prompted by your additional offerings.

Plan to Open

Waiting until every minute detail is perfect will probably mean you’ll never get open. Things will be a little rough around the edges, but the sooner you can start getting customers through the door, the better. We recommend opening in 2-3 stages, starting with a soft open and ending with a grand opening. 

Opening Party

Your opening party might be your soft open, or you may want to separate them out. At your opening party, you should invite friends and anyone who helped with your business at any stage as well as potential business partners and promoters. Expect to give out a lot of coffee to thank these people and get them talking about your shop. The opening party is also a great place to see how your bar flow is working with a more forgiving audience. Some things will likely need to be reworked, and that’s normal.  

Soft Opening

A soft opening usually coincides with your opening party or comes shortly after when the wrinkles have been ironed out. This is the time to do a little marketing and a little promotion, to let business slowly start to build. There are still likely to be new issues and challenges to work out and this slower drip of customers helps really get your systems solidified. 

Grand Opening

About two weeks after your soft opening, you will want to hold a grand opening. This is your big party with as much marketing and promotion as your can muster. Make sure everyone is ready to go and provide the best possible service. 

After a grand opening, it’s normal to dip back down in customer count quite a bit. People are reluctant to change their routine. This dip is where your hard work on customer service and superior product will come in handy and the real marketing begins.

Develop Your Employees

Training new employees is a never ending responsibility that business owners can’t skimp on. By training employees well, you make sure they feel confident and ready to provide the experience you want customers to have. 

When first training employees, it can be beneficial to run through exercises that emphasize efficiency. For example, give a new barista 4-5 drink orders and task them with making the drinks as quickly as possible without rushing. Allow new baristas extra time to think it over, and talk through the process with them. Come up with a few of these exercises (even better if you come up with them based on real life scenarios specific to you shop) and work through them. Be encouraging when the barista gets things right and gently correct by explaining the reasoning behind doing things a certain way. The more your baristas understand the “why” of things, the more you can trust them to make good decisions independently. 

You can follow up with training by holding friendly contests among your staff or barista throwdowns with other cafes in the area. Baristas can compete on things like latte art, drink efficiency, and whatever else you might want. These should be fun above all else, and latte art throwdowns can be great publicity events. 

Attempt to make training fun, but if your coffee shop takes off, you or your manager might not have time to train. As a business owner you stretch yourself incredibly thin, so we offer a way to pick up the slack.  Online Barista Training  is a learning platform accessible from any computer that cuts your training time down by up to 80%. We supply informative videos, instructions, and quizzes to educate baristas on all the fundamentals, so they can hit the ground running on the bar. Normal training might take 10 hours on the floor, with Online Barista Training it can take 2.

Grow Your Business

The most straightforward way to grow is having a menu with popular staples and rotating specials. When creating specials, consider seasonal flavors and unique combinations. In the age of social media, the visual appeal of a drink also can’t be understated. A drink that looks fun and iconic and tastes good is a better marketing tool than a drink that tastes amazing and looks normal. Of course, an amazing looking and tasting drink is ideal, but if you have to make a sacrifice, don’t take visual appeal for granted.

Your menu should also take into consideration what your customers want and where you’re located. If you have a lot of parents with kids, consider offering some kid friendly options. If you have a lot of busy business people, consider offering subscription services or refills in your branded mug to make their daily coffee trip as easy as possible for them.   

Marketing for Coffee Shops

Marketing is a crucial part of owning a coffee shop that many business owners (understandably) don’t always devote enough time to. There are hundreds of ways to market your shop, but some are more useful than others. 

Don’t try to get by without  a website . A few businesses manage to do it, but they are the exception. You want a site that is above all easy to navigate. 90% of your visitors are there to see your menu, you address, your hours, or your contact information, so make those things easy to find. If you want to add more info about your story, staff, or anything else, do it! Having several pages on your site is generally a good idea, but you just need to make sure your most important info is easily accessible. 

Social Media

Everyone wants a good social media presence, but how important is it to your specific business? 

Do you have a lot of customers in their teens to mid 20s? An aesthetically pleasing instagram feed and a snapchat geotag are probably worthwhile investments. 

Are your customers just a little older? Don’t neglect Instagram, but it doesn’t need to be as big of a focus. Instead, encourage customers to leave Google reviews and consider investing in some targeted paid advertising. 

Are your customers middle aged and older? Maintaining your Facebook page becomes a little more important, and good service is a huge focus. 

It’s important to try out different social media platforms and methods to see what sticks. A lot of baristas are younger and probably more invested and up to date with current social media, so ask for their opinions. If you have a barista who is particularly skilled at social media, let them take the reigns for a while. It’s a great experience and frees up your time a little.  

Traditional Advertising

Are newspaper, radio, or TV ads worth it?

Maybe, it depends on your market. Newspaper ads are great for smaller, hyper local communities. Radio ads can be surprisingly effective among older demographics in a slightly wider range. The only avenue we seldom recommend is TV ads because of their expense. The other challenge with traditional advertising is that it can be difficult to track exactly how useful they are while digital ads can tell you exactly what your budget is returning.   

Whatever marketing you do, consider asking customers what brought them in and regulars why they like coming back. Their answers are the best way to actually figure out what works. As you find your niche, reinvest even more into marketing.   

Opening another location sounds like it would be easier than opening your first location, but really it is just as complicated if not moreso. Unless your brand is incredibly strong, there’s no guarantee of success in one area leading to success in another. A bad expansion move can sink not just the new location, but the original location as well. 

When looking to expand, it is vitally important to take the same steps as opening your first coffee shop. Finding a good location, doing market research, developing your menu, etc. are all steps that can’t be taken for granted. Also, consider that your time will now be split between two places. A good manager at each who can run things when you’re not there is paramount.

Coffee Roasting

Coffee roasting is a topic many coffee shop owners consider at one point or another. Roasting simultaneously has a lot of competition, yet a lot of room for growth. Much like the beer industry, more and more micro roasters are becoming popular, and home roasting has been on a steady incline. With that mind, we recommend business owners start small if at all. Roasting is an entirely different business model than running a coffee bar and can be a huge financial drain if not done carefully. We recommend waiting until at least your second year in business to consider expanding to roasting. 

If you do decide to move into roasting, it can be a very rewarding field. The roast can affect so much about the coffee experience, and from a business perspective it can be a great way to diversify. A lot of coffee shops aren’t interested in moving into roasting, and that’s completely understandable. Roasting is only one way to grow your business, not the only way. That being said, Bellissimo’s roastery has been HIGHLY successful in getting our beans in the homes of people within the Pacific Northwest. Water Avenue coffee is the 2nd highest grossing roastery in the Portland area and we’re not slowing down – there’s good money to be made in roasting! (not to mention, you get to work directly with coffee farmers all over the globe). 

We see more and more people interested in roasting, so we offer a  1-day Intensive Roasting workshop  where we teach you all about the roasting process and provide a good base for you to start exploring on your own or communicate with your local roaster more effectively. Whether for home or commercial roasting, learn all about the equipment and process behind coffee. (fun fact – most people are surprised to find out that light roast coffee has MORE caffeine in it than dark roast because it’s spent less time in the roaster, and thus, has had less of the caffeine cooked out of it!)

The coffee industry is a fascinating and rewarding place. Coffee professionals get to meet all kinds of people, and building your own space is a totally unique feeling. We hope this article is a great starting point for taking your first steps into this amazing industry. If you have any more questions, we have a variety of resources, workshops, and expertise to help you through any stage of owning your own business. Once again, we’re here to help.

You can email us direct at [email protected]

We look forward to hear from you!

How To Write Your Coffee Shop Business Plan

How to write a coffee shop business plan.

Business Plan for Coffee Shops Series

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

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

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

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

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

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

Is a Coffee Shop Business Plan Necessary?

Why write a coffee shop business plan.

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

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

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

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

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

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

A business plan is needed by:

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

Benefits of Putting Together a Plan

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

Writing a coffee shop business plan also has other benefits. 

Let's discuss the benefits below:

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

Increases Your Chances of Success

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

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

A Plan Will Save You Money 

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

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

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

A Plan Will Keep You Organized

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

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

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

Ensures Nothing Gets Left Behind

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

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

Details Your Budget

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

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

Business Plan: Your Budget and Cost Estimates

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

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

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

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

Key Sections of Your Coffee Shop Business Plan:

The Executive Summary

Your Business Structure

Coffee Shop Financials

Unique Selling Proposition

Coffee Shop Startup Costs

Business Plan Description

Coffee shop business plan sections:.

Write a Coffee Shop Business Plan

Where do you start.

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

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

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

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

Start Your Business Plan Writing With The Following:

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

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

2024 Coffee Shop Business Plan Template

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

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

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

Trending Articles on Coffee Shop Startups:

Questions & Answers

Related Questions:

Is a business plan required for my coffee shop business.

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

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

Fortunately, the simple answer is NO.

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

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

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

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

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

How Do I Use a Business Plan?

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

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

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

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

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

Frequently Asked Questions:

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

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

Why you should write your business plan:

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

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

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

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

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

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

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

How Long Does a Business Plan Have To Be?

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

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

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

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

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

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

Are You Ready To Get Started?

Unlock Your Dream Coffee Shop Business with Our Exclusive Coffee Shop Startups Kit!

Ready to transform your passion for coffee into a thriving business? Look no further! Our Coffee Shop Startups Kit is your key to brewing success. Here's why you can't miss this opportunity:

Includes Exclusive BONUS Material!

👉 Order Now and Begin Your Journey!

Don't let the complexities of starting a coffee shop overwhelm you. Our Coffee Shop Startups Kit is your ticket to entrepreneurial success. Take the first step towards owning a profitable and fulfilling coffee business today.

Join the thousands of successful coffee entrepreneurs who started with a dream and a great plan. Your journey to coffee shop greatness begins right here!

Comprehensive. Proven. Affordable.

The Complete Coffee Shop Startup Kit

(Instantly Delivered To You)

Coffee Shop Startups

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

• Coffee Blog
• Mobile Coffee Coaching
• Coffee Shop Business Course Info
• Testimonials
• Frequently Asked Questions
• Refunds, Terms & Conditions

All of our kits are delivered digitally. No physical delivery is made.

Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully.

Over the last 10+ years , we’ve helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits.

Your trust in us is important. Buy securely online with our Teachable Payment System. We have a no-hassle 14-day refund policy. Email us, and we’ll refund your money within 14 days of your purchase. Please read our testimonials from satisfied customers!

Disclaimer: The information and advice presented through this site and its products should not be considered legal or financial advice. The information within the website, affiliated websites, blogs, and any communications (electrical or otherwise) are for educational purposes only.

The author and publisher make no representations or warranties regarding the outcome or the use of the information within this website and products and are not assuming any liability for any claims, losses, or damages arising from the information.

Transform Your Coffee Shop with Digital Menu Boards

Coffee shops are regular stops for many people, leading to a rise in competition as demand increases. Your coffee shop must stand out by using every innovative idea. One such idea is the digital menu board, a better alternative to the printed menu.

What is a digital menu board, and how does it impact coffee shops? More importantly, how can you transform your business with it? We’ll answer these questions and more in the sections below.

What Is a Digital Menu Board?

A digital menu board is a modern tool for restaurants, coffee shops, and other food-related businesses. It uses digital screens to display the menu, as well as other information like discounts or new recipes.

Digital menu boards can be easily updated using management systems, and their screens keep the visuals appealing. Printed menus don’t offer these advantages. Updating printed menus takes time, and their visuals fade over time, causing additional costs.

Thus, a digital menu board is an upgrade every cafe owner should consider. It creates a welcoming atmosphere for customers and eases the workload of staff, altogether improving the coffee house as a whole. When you switch to digital menu boards, you make an investment with significant returns.

Elements of a Coffee Menu Board

Menu boards are more effective with excellent design, which appeals to customers and helps them make the right choice. Here are the core elements to be found on every coffee menu board:

• Core Menu: This is the main display, where you show everything you have to offer. It should be the first thing customers see, particularly regular ones. So, prioritize your core menu. The core menu highlights your essentials, like lattes, cappuccinos, and espressos.
• Special Drinks: In addition to your core menu, display your unique or seasonal drinks. For example, during Valentine's season, you may wish to celebrate lovers with a red velvet latte. Make sure couples know about the special offering, encouraging them to try it out, especially in the spirit of the season.
• Transparent Pricing: List prices clearly to avoid confusion and any potentially embarrassing situations! You don’t want a customer mistaking prices and ordering an item beyond their budget. The risk is higher with differently sized items, so ensure you list the prices of each item.
• Customization Options: Coffee lovers know that not all coffees are the same. What you enjoy as morning coffee may not appeal to someone else. Your coffee shop must cater to personal preferences or risk losing customers! Highlight all possible customization options, and feature them. When customers can find their personal preferences, they’re more likely to become regulars.
• Food Pairings: Many cafes enhance their offerings with snacks. If you take this route (and you should!), use pairings to improve customer experience and increase sales. Make the pairings enticing, and look up popular combinations that people enjoy.
• Nutritional Information: Many people are conscious of what they eat. Perhaps you are too. Either way, your coffee shop should accommodate these customers. Note any vegan options, gluten-free products, or calorie counts.
• Current Promotions: Whenever you have promotions that customers will be interested in, display them on your menu board.

Using a Menu Board

The elements already hint at the purposes of a menu board, but there are other ways you can use this board.

For starters, digital menu boards can provide additional information about the ingredients used for the coffee. Honestly, some customers care to know. It also creates a more personalized experience for them. Digital menus are also easy to read, a plus for your brand and customers. So, you can maximize this feature to enhance legibility.

The design of the menu board is appealing to customers, adding to the café's aesthetic. This feature improves your brand image and makes customers more satisfied with your services.

Speaking of customer satisfaction, use the digital menu board to make the coffee shop feel like home for your customers. You can do this by displaying customer testimonials or personalized welcome messages for regular customers.

How To Make Your Coffee Shop Menu

Having learned the elements of a digital menu board and its uses, let's get practical. How do you make the menu itself? Here are some steps:

Step 1: Research and Plan

The research phase forms the foundation of your coffee shop menu. And by research, we mean understanding your target audience. Who are your customers, and what do they want? From the start, your approach should center on your customer and their needs.

Understand their preferred coffee, level of health consciousness, and other details. Your location matters too, as people in a particular area may have unique tastes.

Consider your competitors as well. What is common about their menus? How do they aim for originality? What out-of-the-box methods can you implement?

Step 2: Start the Design

Your design speaks volumes about the cafe and what people should expect. Forget the maxim, “Don’t judge a book by its cover.” Your cafe will be judged by its design, a core part of its branding.

Your menu design should fit with the overall colors and style of your shop for consistency. Do not compromise on any design aspects, including resolution and font. Your menu should not appear like a poorly edited movie.

While selecting fonts, choose something readable that fits with your brand’s overall image. If your coffee shop is inspired by Victorian classics, for example, your font should reflect that. Finally, arrange your offerings well, ensuring people can read them with ease.

Step 3: Description is an Art

Be intentional about how you describe your offerings, using creativity to further attract customers. People are drawn to novelty, a touch of humor, and an innovative style. Your language should introduce the product and emphasize its benefits.

Your cafe is not the only one adopting a digital menu, so find ways to make yours stand out. Your menu should be memorable and make customers excited.

Step 4: Use a Content Management System

As mentioned earlier, one of the best features of a digital menu is its flexibility. Updating a printed menu takes time and extra resources, but a digital menu can be changed in just a few minutes. How so? With a content management system (CMS). These systems allow you to make quick and easy updates.

The Benefits of Upgrading to a Digital Coffee Menu Board

Overall, here are some benefits of upgrading to a digital coffee menu board:

• Digital menus allow for quick updates, an edge over printed menus. You can easily add new items, change prices, or update information.
• They have a high visual appeal, attracting customers and leaving a positive impression on your business.
• With digital menus, you can promote key items, emphasizing them on the screens.
• Digital menu boards increase sales by making the items more appealing to customers.
• Digital menus enhance customer experience, which can lead to loyal customers for your coffee shop.
• Digital screens may seem expensive at first, but they end up costing less than printed menus because they don’t need recurring printing costs.
• Digital systems provide insights that can help you make informed decisions and shape your strategies.

A digital menu offers more to your coffee shop than it takes. It gives a competitive edge, adds to the shop's aesthetics, brings in more customers, and increases loyalty. Ensure your menu has all the core elements, follow the steps, and be creative! Make your digital menu stand out among others.

• Quick Order

Subtotal ( Item) '1'"> ( Items)

• breadcrumbs Blogs & Guides
• breadcrumbs Coffee van business guide: How to start a coffee truck

Coffee van business guide: How to start a coffee truck

Checkout using your account, don't have an account.

Creating an account has many benefits: check out faster, keep more than one address, track orders and more.

calendar October 14, 2024 user Jonathan White folder-open Mitchell & Cooper Insights Guides eye Views

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.

Bonzer Expands Dispenser Lineup with Two Innovative Products: The Condiment Holder and Countertop Dispenser

Similar Items

The Bonzer Cup Dispenser is a high-quality, durable dispenser designed for use in commercial settings. It features a plastic body, adjustable spring-loaded pusher and silicone gasket to accommodate different cup sizes. Please order this dispenser with a FREE choice of gasket here.

The Bonzer Plastic Elevator Cup Dispenser is an in-counter model available in 2 lengths. 450mm and 600mm depending on space, more cups can be stored. The stainless steel tube offers the most hygienic and durable solution. Please order this dispenser with a FREE choice of gasket here.

The Bonzer Cup Dispenser is a high-quality, durable dispenser designed for use in commercial settings. It features a stainless body, adjustable spring-loaded pusher and silicone gasket to accommodate different cup sizes. Perfect for cafes, restaurants, and other food service businesses. Please order this dispenser with a FREE choice of gasket here.

Introducing the Bonzer Condiment Dispenser, the perfect addition to any café or coffee shop looking to enhance their customer experience. This sleek and efficient dispenser is meticulously designed to keep your condiments fresh and organized, ensuring that every serving is a delight.

Bonzer Countertop Cup & Lid Holder is your versatile solution for keeping cups and lids organized in style! Whether you’re running a bustling coffee shop, a busy cafeteria, or simply want to declutter kitchen, this sleek and functional holder has got you covered.

Best Coffee Shops in Yekaterinburg, Sverdlovsk Oblast

Cafés in yekaterinburg, establishment type, traveler rating, dietary restrictions, restaurant features, neighborhood.

Financial Reporting and Analysis Software

• Our products:
• Financial Analysis
• Reporting Tool
• US Industry Benchmarking
• Russian Entites Profiles

Russian Company OOO "EVEREST GRUP"

Brief profile.

active Commercial

TIN	1001299201
Region, city	Sverdlovsk Oblast, Ekaterinburg
Company Age	(for comparison: the industry average is 18 years)
Core Activity	Extraction of chrysotile asbestos
Scale of Operation
Revenue and its change over the year	in 2023 (no revenue in 2022)
Number of employees and its change over the year	(according to Federal Tax Service in 2023)
Founder	(100%; 10 thousand RUB)
Managing Organization %name%
Where the company is listed as the founder	(99.9%; 10 thousand RUB) (51%; 5.1 thousand RUB) (61%; 610 thousand RUB)

Facts to Consider

Negative net assets.

For two years in a row, the organization suffered a loss (in 2023 – 2.4 million RUB).

show 2 more negative facts

In 2022 the organization had no sales revenue.

The founder of the organization has changed.

Complete Profile

• 1. General Information
• 2. Registration in the Russian Federation
• 3. Company's Activities
• 4. Legal Address
• 5. Owners, Founders of the Entity
• 6. OOO "EVEREST GRUP" CEO
• 7. Entities Founded by Company
• 8. Number of Employees
• 9. Company Finance
• 10. Timeline of key events
• 11. Latest Changes in the Unified State Register of Legal Entities (USRLE)

General Information

Full name of the organization: OBSHCHESTVO S OGRANICHENNOI OTVETSTVENNOSTIU "EVEREST GRUP"

TIN: 1001299201 (region of TIN receipt – Republic of Karelia)

KPP: 665801001

PSRN: 1151001009158

Location: 620000, Sverdlovsk Oblast, Ekaterinburg, ul. Borisa Eltsina, str. 3, of. 802

Line of business: Extraction of chrysotile asbestos (OKVED code 08.99.23)

Organization status: Commercial, active

Form of incorporation: Limited liability companies (code 12300 according to OKOPF)

Registration in the Russian Federation

The organization OBSHCHESTVO S OGRANICHENNOI OTVETSTVENNOSTIU "EVEREST GRUP" was registered in the Unified State Register of Legal Entities 9 years 2 months ago 27 July 2015.

The average age of legal entities for the type of activity 08.99.23 "Extraction of chrysotile asbestos" is 18 years. This organization is younger.

The tax authority where the legal entity is registered: Inspektsiia Federalnoi nalogovoi sluzhby po Verkh-Isetskomu raionu g. Ekaterinburga (inspection code – 6658). The tax authority before 07/26/2022 – Upravlenie Federalnoi nalogovoi sluzhby po Respublike Kareliia (code 1000), before 03/30/2022 – Inspektsiia Federalnoi nalogovoi sluzhby po g. Petrozavodsku (code 1001).

Registration with the Pension Fund: registration number 075028150470 dated 27 July 2022.

Registration with the Social Insurance Fund: registration number 100025210966131 dated 18 July 2022.

Company's Activities

The main activity of the organization is Extraction of chrysotile asbestos (OKVED code 08.99.23).

Additionally, the organization listed the following activities:

46.12.2	Activities of agents in the wholesale trade of ores and metals in primary forms
46.12.21	Activity of agents in the wholesale trade of ores
46.12.3	Activities of agents in the wholesale trade of industrial and technical chemicals, fertilizers and agrochemicals
46.33.1	Wholesale of dairy products

Legal Address

OOO "EVEREST GRUP" is registered at 620000, Sverdlovsk Oblast, Ekaterinburg, ul. Borisa Eltsina, str. 3, of. 802. ( show on a map )

On 07/18/2022 the organization moved its legal address from another region, the previous address was: .

There are no other active organizations at the current legal address. However, the following organizations were previously registered here: BITRIVER-NORTH LLC (before address change 06/24/2021)

Owners, Founders of the Entity

The founder of OOO "EVEREST GRUP" is

Founder	Share	Nominal value	from which date
(Moscow)	100%	10 thousand RUB	11/01/2021

Below are the former founders:

Founders	Share	Nominal value	from which date	Until
	100%	10 thousand RUB	07/27/2015	04/11/2018
(TIN: 772171128537)	100%	10 thousand RUB	04/11/2018	11/01/2021

Subject to the entire chain of the current founders, the list of OOO "EVEREST GRUP" ultimate founders is as follows:

The beneficial owners are:	Share	Nominal value	Via
	49%	4.9 thousand RUB
	49%	4.9 thousand RUB	/
	2%	200 RUB

OOO "EVEREST GRUP" CEO

Previously the organization was managed by (general manager from 01/25/2016 until 11/15/2021 * ).

Management (the functions of the sole executive body) since 15 November 2021 is performed by the managing organization MC BITRIVER, LLC .

Entities Founded by Company

Currently OOO "EVEREST GRUP" is listed as a founder in the following organizations:

• OOO "TGK" (Republic Of Tuva, Ak-Dovurak; 99.9%; 10 thousand RUB)
• OOO "TD "ASBEST" (Republic Of Karelia, Petrozavodsk; 51%; 5.1 thousand RUB)
• OOO GOK "TUVAASBEST" (Republic Of Tuva, Ak-Dovurak; 61%; 610 thousand RUB)

Number of Employees

Company finance.

The Authorized capital of OOO "EVEREST GRUP" is 10 thousand RUB. This is the minimum authorized capital for organizations established in the form of a LTD.

As of December 31, 2023, the organization's total assets were 32.6 million RUB This is 323 thousand RUB (by 1 %) more than a year earlier.

The organization is not subject to special taxation regimes (operates under a common regime).

Information about the taxes and fees paid by the organization for 2023

Land tax	RUB.
NON-TAX INCOME administered by tax authorities	RUB.
Penalty amounts	RUB.
Corporate property tax	RUB.
Transport tax	RUB.
Insurance and other contributions for compulsory pension insurance credited to the Pension Fund of the Russian Federation	RUB.
Insurance contributions for compulsory social insurance in case of temporary disability and in connection with maternity	RUB.
Insurance premiums for compulsory medical insurance of the working population credited to the budget of the Federal Compulsory Medical Insurance Fund	RUB.
Income tax	RUB.
Value added tax	RUB.

Information about the arrears and debts under penalties and fines as of 08/10/2024

Penalty amounts	penalty fee RUB.
Non-tax income administered by tax authorities	fine RUB.
Personal income tax	fine RUB.

Enforcement proceedings

In relation to a legal entity, the database of the Federal Bailiff Service contains the following enforcement proceedings as of 11/16/2024:

Enforcement proceedings, number, date of initiation	Amount due, rub.	Remaining debt balance, rub.
Insurance premiums, including penalties for period 2024
The act of the body exercising control functions # from 07/01/2024

Timeline of key events

• The address is no longer listed as the legal address in the Unified State Register of Legal Entities.
• The tax authority where the legal entity is registered was changed to Inspektsiia Federalnoi nalogovoi sluzhby po Verkh-Isetskomu raionu g. Ekaterinburga (earlier it was Upravlenie Federalnoi nalogovoi sluzhby po Respublike Kareliia ).
• is no longer listed as the head in the Unified State Register of Legal Entities.
• Managing organization – MC BITRIVER, LLC .
• The new founder – MC BITRIVER, LLC .
• Piven Sergei Aleksandrovich is no longer listed as the founder in the Unified State Register of Legal Entities.
• The new founder – Piven Sergei Aleksandrovich .
• is no longer listed as the founder in the Unified State Register of Legal Entities.

Latest Changes in the Unified State Register of Legal Entities (USRLE)

• 07/28/2023 . Changes to the information contained in the Unified State Register of Legal Entities in connection with the renaming (resubordination) of address objects.
• 07/26/2023 . Changes to the information contained in the Unified State Register of Legal Entities in connection with the renaming (resubordination) of address objects.
• 04/14/2023 . Changes to the information contained in the Unified State Register of Legal Entities in connection with the renaming (resubordination) of address objects.
• 04/11/2023 . Changes to the information contained in the Unified State Register of Legal Entities in connection with the renaming (resubordination) of address objects.
• 04/10/2023 . Changes to the information contained in the Unified State Register of Legal Entities in connection with the renaming (resubordination) of address objects.
• 04/06/2023 . Changes to the information contained in the Unified State Register of Legal Entities in connection with the renaming (resubordination) of address objects.
• 08/02/2022 . Entering information about registration in the FSS RF.
• 07/27/2022 . Entering information about registration in the Pension Fund of the Russian Federation.
• 07/26/2022 . Entering information about accounting with the tax authority.
• 07/18/2022 . State registration of changes made to the constituent documents of a legal entity related to changes in information about a legal entity contained in the Unified State Register of Legal Entities, based on an application.

* The date of change in the Unified State Register of Legal Entities is shown (may be different from the actual date).

The data presented on this page have been obtained from official sources: the Unified State Register of Legal Entities (USRLE), the State Information Resource for Financial Statements, the website of the Federal Tax Service (FTS), the Ministry of Finance and the Federal State Statistics Service.

Start free Ready Ratios financial analysis now!

No registration required! But once registered , additional features are available.

• Terms of Use
• Privacy Policy

Login to Ready Ratios

If you have a Facebook or Twitter account, you can use it to log in to ReadyRatios:

Have you forgotten your password?

Are you a new user ?