Business Plan: Coffee Shop Report

Executive summary, introduction of coffee shop business plan, market feasibility, technical feasibility, financial feasibility, human resource feasibility, conclusion for coffee shop business plan.

Wondering how to write an introduction or conclusion of coffee shop business plan? Check out this essay example! Here, you will find a complete business plan: coffee shop goals and objectives, recommendations, and features that make it successful. Write a great coffee shop report with the help of our example!

Our new coffee shop will be situated in Melbourne. The business will target only female clients. The hotel will concentrate on gaining the allegiance of customers by providing them with an unparalleled experience of coffee beverage services. The cafe will offer many crafted dishes to fulfill our clients’ banquet, lunch, and supper desires. Our menu will comprise of omelets, benedicts, toasted bread, and toasties.

The article below focuses on a coffee shop’s business plan. The café will be registered as a sole proprietorship. It will be wholly owned and operated by one entrepreneur. The cafe will be established in the city of Melbourne.

What is the size of the market?

In Melbourne and its neighboring cities, coffee shop industry is estimated to generate revenue worth $4.78 billion annually (David 2015). The business is large and varied. Over the last few years, the number of coffee shops and cafes has increased.

What is the growth rate of the industry?

The industry’s revenues are expected to increase by 7.3% annually for the next two years (Hunter 2015). The increase has been boosted by growing incomes and the citizens’ unceasing love for quality coffee.

Is the market at full capacity?

We are predominantly interested in a coffee café because currently there are a few businesses that offer these services. Therefore, our venture aims to fill this market gap by delivering exceptional beverage services.

Where are our customers getting the product now?

The leading coffee cafes in Melbourne include Auction Rooms, Three Bags Full, Hardware Sociate, Di Bella Roasting Warehouse, Market Lane, Proud Mary, and Sensory Lab (Purnama 2013). All these cafes offer services to both male and female clients. We expect to face competition from these shops and other medium food kiosks spread across the city of Melbourne. The other competitors are restaurants and food stalls that offer beverage services.

Where are the customers?

We will target female clients who work or study in regions around Melbourne. The city currently has a population of 4.35 million people (Johnny 2015). Half of these residents are women. In the future, the population is expected to increase to surpass that of Sydney. The main reason for positioning itself in this segment is that the business has the opportunity of incorporating new features to the existing services to cater for the changing demands and needs of our targeted customers. We will offer our services to females. Through this, we will differentiate our services from our competitors.

To gain a competitive advantage over our competitors, we will differentiate our products and services (Agnihotri 2015). One major way of fulfilling the above is through value addition. We will focus on improving our beverages’ package to enhance their aesthetic appeal. All drinks and snacks will be packed and served in impressive food packages designed to surpass our customers’ expectations.

We will only offer services to female clients to differentiate ourselves from our rivals. In Melbourne, a few coffee shops focus on particular communities such as religious, age, sex, or political minorities. If our café focuses on specializing in satisfying only women’s community, we will attract many clients and enhance our market share. The market segment presents an opportunity for the business.

How many would purchase from you?

With increased government expenditure, vibrant tourism, transport, and trade in the region, our business will be favorable and convenient to many women. An increase in government expenditure implies that there is more money in circulation, and more people can afford to enjoy the food services at our business center (Kwek 2015). We expect to serve up to 300 clients in a day.

What external factors come to bear? Government, Industry Dynamics

An important external factor that will affect our business is government regulations. We will have to satisfy all the standards required by the local governments.

How long will this opportunity last in the market?

Our projections indicate that during our earlier years of operation, we will experience less competition because we will only focus on female clients. However, competition is expected to increase in the future because we have a window period of two years. Over time, several players will enter the market eating into our company’s customers. Because of this, our company will experience enormous pressure from the new entrants. Such risks put pressure on our business’ future success. The above imply that we must always differentiate our products and services from those offered by our competitors. If we fail to do so, our rivals will fill the gap and gain an advantage over the company.

What keeps new competition from entering this market?

A threat faced by new entrants has been the inability to adapt to the ever changing service features and standards required by the clients. Another threat that prevents new competitors in the industry is competition from established rivals.

In the first months of our operation, we plan to focus on understanding the thoughts, desires, and behaviors of our clients. Through this, we will be able to come up with the appropriate targeting and positioning techniques in future. Equally, the chance will enable the business to identify efficient and reliable marketing channels to be utilized in the future.

Options for developing the technology

Our café will be registered as a sole proprietorship. The shop will be wholly owned and operated by five entrepreneurs. The cafe will be established in the city of Melbourne. The coffee shop will serve clients throughout the week as indicated below:

Options for producing the product or service

Our products and services will be generated in house. Equally, we will utilize the same approach in our sales and distribution. As such, we expect our clients to visit our establishment. There will be no outside catering services. With increased turnover for startup cafes, the owners are expected to offer their skills and labor to fill in where required until the business starts to generate profits.

Options for sales and distribution

To reach our customers, we will utilize some approaches. Advertising will be our primary marketing strategy. We will create a series of television, the internet, and technology advertisement platforms. Through this, we will subcontract these functionalities to other firms. The firms will comprise of individuals knowledgeable in product information as well as customer service. Through social media, we will encourage more potential clients to access our services. The social media will also enable us to interact with potential customers to understand their expectations

Resources required for development

With respect to our limited inexperience in the industry, we will collaborate with reputable and competent suppliers. The vendors will offer sensibly priced products. The merchandise will be delivered according to an approved time timetable. The cost of establishing the shop is $363,000. The majority of the expenses will be used in purchasing the raw materials including furniture fixtures. Raw materials to be used at the café will be sourced from experienced suppliers. They include kitchenware, food processors, utensils, dishwasher, clothing, and stainless steel tables.

The laws and regulation relating to the business

Before opening our enterprise, we will obtain accreditation from relevant business licensing regulators in Melbourne. Similarly, we will get a permit that will illustrate that our company will work towards environment conservation.

Any moral or ethical issues that you are uncomfortable with

Our research identified that ethical issues of workers being mistreated by their supervisors are prevalent in the hospitality industry. The business will formulate and implement appropriate ethical cultures to prevent such incidences. The code of ethics should articulate the accepted standards. Similarly, ethical culture will be enhanced by all levels of supervision.

Technological changes are changing or emerging that may affect the business

During our research, we noted that a significant threat faced by coffee shops and other beverage outlets is speedy technological transformations. Many clients enjoy cafes with the latest technological facilities such as Wifi access. The threat puts pressure on the company’s future success. Every year, we will be required to adopt new technologies to be ahead of our rivals. If we fail to do so, our competitors will fill the gap and gain an advantage over our company.

Projected revenues from sales of our products and services

The table below illustrates the expected sales volume in units sold and in dollars sold. Our approximate selling price per unit is $ 11.37. The expected revenues are indicated below.

Financial dynamics and opportunities

Indicated below are the cost structures illustrated based on unit basis:

  • Price per unit minus is $11.37
  • Variable costs are estimated to be $4.51 per meal
  • Gross margin per unit minus is 44.90
  • Fixed costs per unit are 48.0
  • Net margin per unit is 8.0%

Indicated below is the income statement used in the calculations:

Is the project worthwhile financially?

Indicated below are assumptions utilized in our financial plan

  • Meal Price ranges from $8.00 – $15.00
  • Average lunch price is 8.79
  • Average dinner price is13.74
  • The restaurant is located in the Melbourne City

Gross margin 45% and net profit are 8.0%. The figures indicate that the venture is economically viable. Below is a 1-year monthly cash flow statement:

Projected cash flow statement

How much investment is required and how they will be used

Financial risk.

Total fixed costs linked with the coffee shop are $669,186. They represent yearly expenses. The variable cost is $ 4.51 for each meal. The breakeven revenue will be $1,108,970. It equals to 97,535 meals. We would not get better returns elsewhere, so we better invest in the shop. I will have to give up my mortgage to finance the project. The return of investment is $1, 229,334 after three years. The above illustrations are indicated in the table below:

Sources of funds

The money needed will be sourced as shown in the table below. There are higher chances that we are going to get all the money required for the project. We will have to sacrifice money needed for other investments to attain our objectives.

What technical and management experience is required?

The business will hire 20 employees. They will comprise of two managers and subordinate staff. The managers will be needed to have more than three years of experience in a similar environment.

The technical team should have at least one year of experience. Together, the management team will select every applicant. We have implemented an up-to-date interview procedure. The process will staff the coffee café with highly experienced persons for every position. Every candidate will be evaluated and ranked based on a pre-defined set of values intended for each vacancy. Hiring efforts will focus on recommendations.

Who are the owners and what are their roles?

The restaurant’s management team will comprise of the owner, the manager, and technical expert. The owner has a restaurant career. He has served for over 20 years in the foodservice industry. He will be the general manager of the business. The manager will oversee smooth operation of the facility.

As such, the hotel manager will manage the overall undertakings like hiring and making financial arrangements. The manager will report to the owner of the shop. A technical expert will direct every functional group. As such, the technical expert will ensure that all installations in the shop are up and working. The supervisor reports to the general manager.

What is the ownership structure?

The organizational fabric of the shop will represent a corporate divisional order. The divisional order will be predominant service sections of the cafe. They include housekeeping segment, food and beverage section, concierge block, and front desk management. For instance, the prominent sectors of the enterprise will be separated into semi-autonomous bodies. The smaller sections will be apportioned to a particular field of service.

Every semi-autonomous will have a group head. As such, the group leader will be selected as the managing officer of that particular segment. At the top of the hierarchy will be the hotel manager. The present-day economic conditions in the beverage industry are characterized by increased competition.

In this regard, the coffee shop will adopt the above organizational structure to save on the cost of operation. The organizational structure has many advantages. Through this structure, every section functions effectively for the reason that they are centered on certain precise task. By doing so, the shop will be able to enhance the output of every section.

What are the labor requirements?

Attracting, inspiring, and retaining a skilled workforce is significant and often challenging for today’s businesses (Hazelton 2014). Appropriate staffing measures will aid our coffee shop intensify the satisfaction of its workers, reduce recruiting costs and increase the hotel’s productivity.

In this regard, the business has put in place appropriate sourcing policies that attract a diverse variety of high-performing candidates. We have also implemented a transparent hiring procedure, which guarantees objective selection using pertinent criteria. Through this, the company will attract competitive and competent candidates. Our orientation processes guarantee that new employees are informed about the business’ values, objectives, key policies, and measures.

The shop will offer a positive working environment for its staff. Through this, the business will be able to attract and retain qualified workers. A positive work environment enables the employees to undertake their roles without challenges. Thus, the productivity of the cafe will increase.

Similarly, the business should identify, compensate, and support the right behavior to attract and retain a competent workforce. Through this, the worker’s morale will be boosted. By involving and engaging the employees, the shop will be able to motivate its workforce. As such, individuals are more dedicated and involved if they are allowed to add their thoughts and proposals towards the improvement of the business.

Equally, the firm will adopt fun in the workplace to motivate the employees. The initiative will enable the employees develop a positive staff culture, boost their morale and motivation, and enhance employer and employee relationship. Likewise, the approach will improve teamwork, increase employee satisfaction, help attract and retain the best people, and improve customer satisfaction. The initiative will also enhance creativity and problem solving, resolve conflict and difficult issues, and augment productivity and performance.

Likewise, the hotel manager will come up with policies that encourage relationship among the employees. Through building relationship among the employees, the managers will enable the employees to understand and appreciate each other’s social, religious, or racial background (Stafford 2013). They will be achieved by offering the employees with regular seminars, workshops, and other social events. Through this, they will get to know one another better enhancing mutual respect.

The managers acknowledge that recruitment and hiring of new employees contribute to the increase in operating costs. Therefore, the business has adopted a competitive reward scheme to reduce the employee turnover. Because the firm is aiming to be among the top coffee shop in Melbourne, its reward system is expected to be competitive.

As such, the reward scheme will indicate the individuals to be awarded and the reason behind the rewards. The practice will enhance individual performance and firm’s outcomes. The reward system will balance with the organization’s culture.

To enhance and maintain quality, the cafe’s executives will implement performance measurement strategies (Carlson 2013). The shop will adopt quality and time performance measures. Quality performance test will assess the value of the services rendered by the employees. Equally, time performance will determine the period it takes the employees to perform their services.

The hotel will undertake the above assessment regularly to enhance the efficiency of the performance measures. Changes in performance measures and requirements related to increasing the competency-base of workers to meet global requirements will also be monitored. Therefore, the cafe will implement a culture of accountability.

Similarly, they will focus on results. When goals and visions are brought into line with organizational accountability, the administration can hold employees answerable for their tasks. Equally, performance measures will encourage workers to accomplish the lounge’s goals, missions, and objectives.

What is the company’s growth strategy?

The shop’s organizational culture will change as the business grows. The appropriate succession planning measure will be instituted to recognize and develop internal staff with the possibility to fill future vacancy positions in the cafe (Catherine 2014). The process is the most efficient and appropriate way of filling organization’s vacancies.

Through this approach, the shop will reduce its recruitment costs and orientation training expenses and time. The approach will offer employees with abilities to advance their career through regular training. As a result, employees will progressively develop and advance their careers. Through career advancement, workers’ morale will be enhanced enabling them to dispense their knowledge and capabilities effectively. By improving on the workforce’s morale, the business will increase its productivity leading to an increase in returns.

In conclusion, it should be noted that the cost of establishing the shop is $363,000. The majority of the expenses will be used in purchasing the raw materials including furniture fixtures. The business will target only female clients. As such, the coffee bar will offer many crafted dishes.

Start-up Expenditures and Expenses Worksheet

Swot analysis.

SWOT Analysis

Agnihotri, A. 2015, ‘Extending boundaries of Blue Ocean Strategy’, Journal of Strategic Marketing , vol. 32, no. 8, pp.1-10.

Carlson, K. 2013, ‘Designing Business Training for Fun and Results’, Performance Improvement , vol. 52, no. 9, pp. 45-46.

Catherine, F. 2014, ‘Sustainable cultures: Engaging employees in creating more sustainable workplaces and work styles’, Facilities, vol. 32, no. 8, pp. 438-454.

David, B. 2015, Coffee culture in Australia . Web.

Hazelton, S. 2014, ‘Positive emotions boost employee engagement: Making work funbrings individual and organizational success’, Human Resource Management International Digest, vol. 22, no. 1, pp. 34-37.

Hunter, B. 2015, Melbourne CBD, Melbourne . Web.

Johnny Y. 2015, Start a new business/Café Business . Web.

Kwek, G. 2015, Australia makes its mark on global coffee culture . Web.

Purnama, M. 2013, Melbourn Top 10 Cafes . Web.

Stafford, K. 2013, ‘Does Fun Pay? The Impact of Workplace Fun on Employee Turnover and Performance’, Cornell Hospitality Quarterly , vol. 54, no. 4, pp. 370-382.

  • Chicago (A-D)
  • Chicago (N-B)

IvyPanda. (2023, August 27). Business Plan: Coffee Shop Report.

"Business Plan: Coffee Shop Report." IvyPanda , 27 Aug. 2023,

IvyPanda . (2023) 'Business Plan: Coffee Shop Report'. 27 August.

IvyPanda . 2023. "Business Plan: Coffee Shop Report." August 27, 2023.

1. IvyPanda . "Business Plan: Coffee Shop Report." August 27, 2023.


IvyPanda . "Business Plan: Coffee Shop Report." August 27, 2023.

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Intro To Business Coffee Shop Project

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  • 1. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 1 Preston Hall Business Plan “Better Brew, Better Taste” The Sleepy Armadillo Coffee House strives to create a welcoming environment to both customer and employee. Our goal is to provide quality products and services to our local coffee drinking community while doing it in a genuine friendly manor.
  • 2. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 2 BUSINESS PLAN OUTLINE COVER PAGE......................................................................................................................1 TABLE OF CONTENTS........................................................................................................2 INTRODUCTION.................................................................................................................3 EXECUTIVE SUMMARY .....................................................................................................4 History..................................................................................................................4 Location ...............................................................................................................4 Objective Preview.............................................................................................4 GENERAL COMPANY DESCRIPTION.................................................................................5 Mission Statement............................................................................................5 Company Goals and Objectives....................................................................5 Business Philosophy........................................................................................5 Marketing Preview ..........................................................................................5 Industry Analysis..............................................................................................6 Legal Form of Ownership..............................................................................6 PRODUCTS AND SERVICES................................................................................................7 Products and Services Intro..........................................................................7 Competitive Edge .............................................................................................7 Pricing..................................................................................................................7 MARKETING PLAN............................................................................................................8 Target Market....................................................................................................8 Marketing Objectives ......................................................................................8 Competition........................................................................................................9 Distribution........................................................................................................9 MANAGEMENT PLAN.....................................................................................................10 Labor Force......................................................................................................10 Management Philosophy............................................................................10 BUILDING SPECIFICATIONS...........................................................................................11 Licensing and Permits..................................................................................11 Store Layout....................................................................................................11 Equipment........................................................................................................11 APPENDICES ...................................................................................................................12
  • 3. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 3 INTRODUCTION TO THE BUSINESS Drinking Coffee on a daily basis is a way of life here in Ashland Oregon. This is precisely why I plan on opening a coffee shop in this small and quaint town where the people love each other as much as they love their coffee. I intend to sell freshly brewed coffee using these techniques; cold drip, French press, pour-over, and syphon. The products I will be offering include coffee, coffee beans, coffee cups, gift cards, baked goods, and coffee making equipment such as filters and French presses, etc. The Sleepy Armadillo Coffee House will provide coffee, food, entertainment, and a welcoming environment for the local community.
  • 4. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 4 EXECUTIVE SUMMARY Coffee isnt just a drink, it's a way of life! History Whether you drink coffee for the taste, the caffeine content, or just as a social activity, coffee brings people together. Coffee has been around fora while; its cultivation first took place in Abyssinia the earliest credible evidence of coffee drinking appears in the middle of the 15th century. Coffee is a major export commodity: it was the top agricultural export for twelve countries in 2004, the world's seventh-largest legal agricultural export by value in 2005, and the second most valuable commodity exported by developing countries. A coffeehouse or café is where I will be focusing in on. Coffee shop establishments serving prepared coffee or other hot beverages have existed for over five hundred years. This is a thriving market that continues to show growth and establishment thought the world. Location The Sleepy Armadillo Coffee House will be located on Main Street in Ashland, Oregon. The storefront is appealing and inviting, and the street is full of bustling businesses. There are ten coffee shops in a mile radius, all of which are doing well. My business would draw coffee drinkers and also people whom like a lounge like atmosphere. We will hire musicians to come and play acoustic sets during Wednesday and Friday nights to draw crowds. I am planning on opening the shop on June 3, 2017. I will start advertising in the area a few months before the shop opens. I plan of having fliers for the acoustic set nights that will draw in most of my customers. I will also set up an instagram page to post pictures and to gain followers interesting them in checking out my business. Company Objectives 1. Make distinctly great tasting coffee, at a reasonable price 2. Build up the community by giving back by hosting free social events 3. Create a welcoming environment where people can talk and mingle 4. Treat my employees and customers with the upmost respect 5. Turn a profit from the business but not at the expense of quality or moral. The coffee industry is flourishing globally and internationally. There is a large target market and variety of customers that enjoy coffee in the Ashland Oregon area.
  • 5. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 5 GENERAL COMPANY DESCRIPTION My business will be in the restaurant industry, specifically a coffee shop. The Sleepy Armadillo will offer coffee and other premade baked goods customers. Mission Statement: The Sleepy Armadillo Coffee House strives to create a welcoming environment to both customer and employee. Our goal is to provide quality products and services to our local coffee drinking community while doing it in a genuine friendly manor. Company Goals and Objectives: My goal is for my business to located on 370 East Main St, Ashland, OR. This is a prime location for a coffee shop, because there are many businesses around that would enjoy a near by coffee shop, there is also a demand for unique coffee in the area which I would offer, and it is on main street meaning it would attract lots of business. Our goal is too be ahead of other competing coffee shops in the area of customer service and quality of product. My company objectives are to: 1. Make distinctly great tasting coffee, at a reasonable price 2. Build up the community by giving back by hosting free social events 3. Create a welcoming environment where people can talk and mingle 4. Treat my employees and customers with the upmost respect 5. Turn a profit from the business but not at the expense of quality or moral. Business Philosophy: The philosophy of The Sleepy Armadillo can be summed up in three words: Product, Service and Atmosphere. At The Sleepy Armadillo we aim to give our customers a unique experience with every sip of our coffee. Surrounded by a cozy relaxed hip atmosphere and served by our friendly staff, customers are made to feel at ease as if they were sitting at home in their living room. Marketing Preview:
  • 6. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 6 We will mainly be marketing to coffee entrepreneurs, business people, and high school/college students. This will be our niche market where we focus most of our advertising. We will advertise on social media and via fliers and newspaper articles. Industry: This industry is a growing industry and we see changes in the industry’s future as far as its’ supply and demand. Potential issues or changes would be mostly long- term changes over the global scale, such as prices rising and falling due to natural disaster and or lack of supplies. My company will take advantage of these occurrences by being aware of when they will be taking place. It is important to know when the market is going to fluctuate or change so that you can be ahead of the game. Legal Form of Ownership: The legal form of ownership is going to be a partnership so that we will have the combined capital to start up a business.
  • 7. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 7 PRODUCTS AND SERVICES Products and Services As a coffee shop the Sleepy Armadillo will provide coffee, baked goods, and gift cards to its customers. We want to provide them with an environment that is relaxing where they can come in and get things done, just hang out, or even just to socialize. In the sleepy armadillo we will provide free Wi-Fi Internet access. We want to do this because in today’s age it is almost required that you offer Internet access to those people and customers who want to use your business. We want to cater to people who come to get work done though we also are trying to have a fun and entertaining environment. Some of our services included, providing the community free social events that will be held every Friday and Wednesday night. There will be live acoustic sets where people can come just sit and enjoy some good music. Competitive edge There will be a few factors that will make our business stand out from the rest. For one as I previously stated, we would be host events on Wednesday and Friday nights. This will bring a huge draw to our business. We also will offer free Wi-Fi Internet access so that our costumers will feel like they are at home. We will have comfortable furniture to encourage a laid back atmosphere. A disadvantage that we will have to face is the fact that we are a new starting up business that needs to build customer relations. We will overcome this by advertising our business and having excellent customer satisfaction. Pricing For my companies pricing I will be using a market segment pricing strategy. The strategy works by hitting multiple markets by having pricing that each societal class would appreciate. Here is an example of this style of pricing. MKT 1 MKT2 MKT3 Premium $10 $15 $12.50 Market $7.50 $10 $8 Penetration $2.50 $5 $6
  • 8. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 8 MARKETING PLAN Target market My target market is going be young adults ranging from 16-35. There are many needs that the Sleepy Armadillo Coffee Shop will meet for their customer market. The coffee industry and the coffee shop business has boomed in recent years, especially with regards to specialty coffees. The market for specialty coffees has grown as consumers become more educated about espresso-based drinks and how they are made. According to a National Coffee Association Annual Drinking Trends Survey, specialty coffee consumption has risen from 9 percent in 2000 to 16 percent in 2004. Every day, more than half of the adult population drinks coffee, 108.9 million people. The United States accounts for 52 million of those coffee drinkers. While fast food chains are growing at a rate of 2 percent each year, coffee shop chains grow more than 10 percent annually. Even though 75 percent of the cups of coffee brewed daily are consumed at home, 66 percent of Americans buy their coffee outside of their homes. The Specialty Coffee Association of America reported at the end of 2003 that the retail coffee shop count in the country had reached 17,400 or 4% more than in 2002. The market size of coffee grew from $7.53 billion in 1999 to $8.96 billion in 2003. Marketing Objectives Increase Sales One of the most important goals of marketing for-profit entities is driving business and increasing sales. Marketing needs a good return on investment Improve Product Awareness A marketing effort can be focused at reviving or invigorating interest in a product that has been on the market for a long time or about which people have longstanding attitudes. We will be offering this via our unique variety of ways of brewing our coffee. Establish Yourself in the Industry A new organization will find it extremely difficult to be heard above the noise in a crowded marketplace, with a public distracted by many stimuli
  • 9. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 9 Brand Management Maintaining a place in the mind of the public takes work, and some marketing efforts are simply aimed to maintain a prominence in the public space. That is why my branding of the sleepy armadillo will be on coffee mugs and stickers available for the public to purchase. Competition There are ten coffee shops in a mile radius of where my shop will be located. All of them offer some sort of coffee service but most of them are not primarily coffee shops, but rather a side operation. I don't think this will be an issue for me to gain attention from the community because my shop will be so different from those others in the area. Distribution We will be a self-distributing business meaning that we will only be selling locally at out opening. We will look into spreading the company if it flourishes and does well in our location. We will look into possibly selling merchandise online in the future.
  • 10. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 10 MANAGEMENT PLAN Labor Force How many employees will we have? Management The Sleepy Armadillo will be primarily run by myself along with my future business partner. I plan taking up most of the responsibilities that come from running a coffee shop for the first few years of our opening, A full-time manager will be hired to oversee the daily operations at the Sleepy Armadillo. I will want this candidate to have had three years of managerial experience. This person's responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties. Crew Members Three part time employees will be hired on to our barista team at the Sleepy Armadillo. Their responsibilities will consist of opening the shop along with closing. They will need training that we will provide. Candidates will need to have some experience in a coffee shop, preferably a year of experience. Management Philosophy Excellence in products and services to The Sleepy Armadillo Coffee Shops customers is the top priority for the management. We believe that high-quality production and service from staff is facilitated by a healthy workplace. A work environment that is flexible, encourages open communication, prizes fairness, recognizes good work performance and respects the differences and rights of individuals optimizes our staff's health and performance. Motivation to achieve excellence is maximized when staff is treated with decency, trust and respect.
  • 11. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 11 BUILDING SPECIFICATIONS Oregon Licensing and Permits • Tax identification number: All businesses in Oregon with employees must register for state and federal tax identification numbers. • Insurance: Before opening your coffee shop, Oregon law requires you to purchase a worker's compensation insurance policy through a certified agent authorized to do business in the state. • Food service license: In addition to a business license, you must apply for a food service license, which requires two basic steps. First, you must obtain a plan review from your local health department. Provide the health department with a copy of your proposed menu and a detailed floor plan of your coffee shop that illustrates the location of your electrical, plumbing and ventilation systems. Once your plan is approved, you may apply for a separate food service license • Business license: Before you can begin doing business in the state of Oregon, you must obtain a business license. If you plan to operate as a limited liability company or corporation, you must register with the Secretary of State. If you're operating as a sole proprietorship or partnership, you are only required to file for an Assumed Business Name certificate. At the time of publication, the fee for filing an assumed name is $50. The fee to register a corporation or limited liability company is $100 Store Layout Our coffee shop will be a classic café style layout. We will have a front counter that stretches along the front of the room. We will have a glass counter that displays our snacks and consumable goods for the day. We will have a small stage for the acoustic sets that we plan on having each Wednesday and Friday. We will have casual seating all through the shop, along with tables and bar seating. Equipment List: Espresso machine Coffee Brewers w/Airports Bean Grinder Espresso Grinder Tea Brewer Upright Freezer Upright Refrigerator Under counter Refrigerator Pastry Case/Display case Ice Cube holder and maker for Iced Coffee Blender Storage space: racks or shelves Sinks Wares (mugs, silverware, plates, and other serving utensils.)
  • 12. Hall Sleepy Armadillo Coffee House 370 E. Main Street, Ashland, OR 97520 | 970.631.3911 [email protected] 12 APPENDICES Possible Building Layout/Design

Coffee Shop Business Plan Sample

Are you interested in opening your own coffee shop, cafe, or purchasing an existing coffee shop franchise?  Well, you’ve come to the right place!  This sample business plan will help provide insight on what a Coffee Shop Business Plan should look like.

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1.Executive Summary

Sample Coffee Shop (The Company) was incorporated in the province of British Columbia on January 1, 2021 by Mr. John Doe and Mrs. Jane Doe.  Sample Coffee Shop is seeking a $150,000 business loan to purchase an existing “Sample Coffee Brand” franchise located at #100 – 500 Wellington St. Vancouver, BC.

As the Covid-19 pandemic subsides, and widespread immunization takes place, more and more people will return to local establishments.  Furthermore, in the current economic environment the company has identified multiple ways to add value to the existing franchise.  These value adds include: extending hours of operation, a wider selection of food and dessert, catering services to local offices, and offering promotions on food-delivery apps Doordash and UberEats.

With over four decades of combined business management experience, Mr. and Mrs. Doe bring an abundance of knowledge and expertise to this opportunity.  Mr. Doe, being a senior executive of 105077 Inc. where he has overseen the company’s manufacturing process, monitored and evaluated middle management.

Mrs. Doe has been involved in healthcare management for the past 7 years, working to foster an environment that provides necessary and quality health care services to patients.  In addition, Mrs. Doe was raised in a family that owned and operated a successful food business in The US; therefore, bringing invaluable experience to this opportunity.  Together, Sample Coffee Shop looks to provide a new, heightened level of customer experience to guests, and help develop the wider Sample Coffee Brand brand.

The Coffee and Snack Shop industry in Canada has seen modest growth over the past five years.  However, as industry players overcome the economic challenges of the Covid-19 pandemic there is a wave of optimism throughout the industry.  As Canadians return to daily life industry players are reminded of the staple their stores provide.  Whether serving professionals on their way to work, students looking for a place to study, or catering to local offices; coffee shops provide the food and beverages that keep the Canadian economy moving.

Mr. and Mrs. Doe are prepared and qualified for the opportunity at hand – transforming the franchise’s largest location into a growing coffee shop again, and exceeding customers expectations each and every day.

2.Business Overview

Sample Coffee Brand – Wellington St. has experienced challenges in the past few years, from declining sales to weathering the Covid-19 pandemic.  Sample Coffee Shop has identified this as an excellent opportunity to purchase the Wellington St. Franchise at fair market value, while improving customer service, experience, expanding the food menu, and catering to local office buildings.

2.1 Business Summary

Founded in 2005 at Parker and Smithe Street in downtown Vancouver, Sample Coffee Co has been a leader in brewing superbly fresh coffee, committing to local craftsmanship, and unparalleled service.  In 2010 Sample Coffee Brand was recognized as the “Hottest Brand in Canada”. Today there are 25 Sample Coffee Co locations across British Columbia and Alberta, with many more to come.

Sample Coffee Brand is committed to providing an atmosphere of connectivity, which even trickles down to the size of their locations.  With all but one Sample Coffee Co location being less than  1,400 square feet, the franchisor is dedicated to providing immense seating space to guests.

Lattes, cappuccinos, mochas and fresh brews are all made from Waves’ exclusive coffee blends. As coffee professionals, Sample Coffee Co understands the ranges of coffees grown from around the world, offering the highest possible quality beans from South America to Africa.  Waves’ roast master oversees that each batch of beans is put through visual, aromatic and taste tests then filtered in drum roasters.  With blended drinks, Belgian hot chocolate, African rooibos teas, cold drinks, pastries, paninis and sandwiches brought in from local bakeries, Sample Coffee Co really offers something for any mood.

2.2 Industry Overview

Many Canadians frequent coffee establishments (NAICS 722512 – Limited-service eating places) on their way to work in the morning or throughout the day.  Coffee franchises are indeed part of a profitable industry.  The younger generation is driving coffee consumption trends in Canada.  Adults aged 18-49 prefer specialty coffee, where adults aged 65-79 gravitate towards traditional coffee blends. The youngest Canadian consumers, aged 18-34 are more interested in coffee that is ethically sourced, leading to a rise in fair trade and organic coffee sold from coffee shops.

Millennials and Gen Zs are increasingly making consumer decisions based on sustainability, which for coffee can mean where coffee is sourced, how it is transported, how it is produced, and the affects these things have on social issues and the environment.  For example, Fair Trade certified coffee ensures it is produced in an environmentally friendly way, and that workers in the coffee industry are being treated safely and fairly.

2.3 Mission Statement

The Sample Coffee Co mission is to meet people who share our passion and ideals so that together, we create great neighbourhood coffee houses that enrich the lives of everyone we welcome inside.

2.4 Goals and Objectives

  • Receive $150,000 in funding
  • Transfer business license from the current owner
  • Take part in franchise training
  • Officially launch on May 1, 2021
  • Create an instagram account for the Wellington St. location
  • Get to know our customers and staff
  • Breakeven or make a small profit in Year 1
  • Grow revenue, and make a profit in Year 2

2.5 Key Success Factors

  • Work closely with the franchisor to ensure our location represents the wider Sample Coffee Brand brand
  • Inventory Management: Don’t have too much, or too little inventory at any given time
  • Customer Service: Consistently offer the greatest customer service available

2.6 Staffing


A Store Manager will be hired at the beginning of Year 3.  They are to provide positive, pleasant experiences that enrich the lives of everyone who comes through our door.

Job Duties and Responsibilities

  • Provide friendly, prompt customer service
  • Continually learn about our products and consistently provide quality food and beverages
  • Master the art of beverage preparation
  • Foster a good working environment
  • Welcome and encourage new staff members and act as a role model
  • Assist in training, supervising and supporting staff
  • Conduct staff meetings
  • Maintain cleanliness in the coffee house at all times
  • Conduct daily cash handling duties and receive reports of any errors
  • Follow company policies and procedures
  • Create action plans and follow through in a timely manner
  • Place and verify vendor orders and deal with issues daily
  • Resolve customer and staff concerns
  • Display sales and financial accountability
  • Retail management experience
  • Exceptional leadership skills
  • Exceptional communication skills
  • Ability to meet budgeted sales and profit goals

Sample Coffee Brand baristas carry out several customer service responsibilities.  Baristas greet customers, take food and drink orders, prepare menu items, and answer questions about our menus and services.  It is imperative that our baristas display personable and friendly attitudes, while maintaining a level of professionalism.

Requirements & Competencies:

  • Receive and process customer payments
  • Prepare and serve hot or cold beverages, such as coffee, espresso drinks, blended coffees or teas
  • Take customer orders and convey them to other employees for preparation
  • Clean and sanitize work areas, utensils, or equipment
  • Describe menu items to customers or suggest products that might appeal to them
  • Clean service or seating areas. Serve prepared foods, such as muffins, biscotti, or bagels
  • Prepare or serve menu items, such as sandwiches or salads
  • Weigh, grind, or pack coffee beans for customers
  • Stock customer service stations with paper products or beverage preparation items
  • Order, receive, or stock supplies or retail products. Slice fruits, vegetables, desserts, or meats for use in food service
  • Check temperatures of freezers, refrigerators, or heating equipment to ensure proper functioning
  • Demonstrate the use of retail equipment, such as espresso machines

coffee shop introduction sample of business plan

2.7 Management Team

Mr. John Doe

Executive Director, 105077 Inc.

Washington, The US

2016 – 2020

Role and Responsibilities:

  • Estimating, negotiating, and managing budgets and timelines
  • Establish manufacturing goals, objectives, and standards
  • Investigate and implement new methods/technologies to increase cost effectiveness and improve profitability of manufacturing operations
  • Re-negotiating timelines or schedules as necessary to meet company demand
  • Implementing initiatives to support the overall growth and achievements
  • Develop and manage project plans and corresponding reporting and budgets
  • Drive and implement quality control programs
  • Proactively identify problems and swiftly implement appropriate solutions
  • Managing inventory and raw material levels
  • Work with internal teams and external vendors to identify supply chain bottlenecks and develop strategies for improvement
  • Support the development and implementation of project and process documentation
  • Contribute to the long-term growth of the company

Mrs. Jane Doe

Manager of Operations, Health Place

Vancouver, BC

November 2015 – Present

  • Managing staff, overseeing client care and ensuring adherence to established policies and procedures
  • Promote the quality of life of people with disabilities by developing day-to-day management and long-term care strategies
  • Work with other health care professionals to determine patients’ goals and create both short- and long-term plans to achieve those goals
  • Using current policies and regulations to guide care decisions aids in promoting consistency, reducing mistakes and improving safety for patients and staff

3.Products & Services

Sample Coffee Co takes two things seriously: coffee and chocolate.  The company sources only the best coffee beans available from small lot farmers.  By blending top quality coffee beans together with real Belgian chocolate the result is a flavourful mocha that is second to none.  Sample Coffee Co is committed to providing a fresh and wide variety of sandwiches, wraps, soups and seasonal pastries. Sample Coffee Co provides an elevated coffee-shop experience by pairing locally-sourced coffee and chocolate beverages with a delicious fresh food menu.

  • Fresh Baked
  • Gluten Free
  • Muffins & Loaves
  • Scones & Croissants
  • Squares & Cookies
  • Ciders & Other
  • Coffee Blends
  • Iced & Blended


The success of Sample Coffee Co Wellington St. will depend on how well the operations are managed by Mr. and Mrs. Doe.  The following elements are critical to a successful operation:

Owner’s Involvement: Mr. and Mrs. Doe are committed to assuring the success of this franchise location.  When not physically in the store, mobile analytics will be used to keep track of the store’s performance.

Staff Satisfaction: By using open and honest communication Mr. and Mrs. Doe plan to develop strong professional relationships with their team.  A team that feels supported and appreciated is much more likely to provide a heightened level of customer-service.

Understanding of the Business: From franchise training to the first few weeks and months of operation, Mr. and Mrs. Doe are committed to developing a thorough understanding of Sample Coffee Co business model; and which actions will bring increased productivity and profitability.

Inventory Management: It is critical that the franchise doesn’t purchase too much, or too little of any given product.  Mr. and Mrs. Doe will work closely to ensure inventory is managed properly.

Great Products: Sample Coffee Brand is proud to serve exceptional products to their customers.  The franchise will be diligent in ensuring all products are handled with care, of the proper date, and have no defects.

Alignment With the Franchisor: All of our operations must be aligned with Sample Coffee Brand.  Sample Coffee Co has a clear and concise operational plan and the management of Sample Coffee Co Wellington St. plans to follow these operational guidelines closely.

Safety: Sample Coffee Co Wellington St. will take the safety of it’s staff and patrons seriously.  During the Covid-19 pandemic Mr. and Mrs. Doe will be diligent about ensuring all stakeholders follow government guidelines.  Additionally, management will ensure that all operations are congruent with Worksafe BC regulations.

4.1 Location

  • 2800 sq ft.
  • Currently seats 30 – 40 people; full-capacity is 85 people
  • Bitcoin ATM machine available to guests
  • Most spacious location within the franchise
  • Meeting room services available

4.2 Equipment

Equipment as of March 12, 2021:

Small Meeting Rooms: 6 chairs, 2 tables

Big Meeting Room: 10 stools, 8 chairs, 3 tables

Floor Area: 12 stools, 38 chairs, 13 tables

Outside Patio: 2 umbrella, 13 chairs, 5 tables

Office: 1 two shelf filing cabinet, 1 office desk, 1 printer, 4 white chairs, 2 chairs, 2 s/s storage shelves, 1 Samsung CTV monitor

Rear Room: 2 Frigidaire Air Freezer, 1 True Upright Cooler, 1 Hobart Dishwasher, 1 safe, 1 floor cleaning bucket

Serving Area: 1 True Display Cooler, 1 Blending Machine, 1 Ice Making Machine, 1 Coffee Making Machine, 1 Insign Small Fridge, 1 Merrychef Oven, 2 POS Machine, 1 Bunn Bender, 2 Coffee Storage – APPROXIMATE MARKET VALUE: $70,000

4.3 Inventory

Upon transfer of ownership Sample Coffee Shop will receive less than $1,000 of inventory.  Items will include bakery, breakfast, lunch and drinks items.  Mr. and Mrs. Doe will focus on inventory management; ensuring to only purchase items that will be sold.

5.Market Overview

The Coffee Shop industry in Canada has grown over the five years to 2020, driven by the expansion of major coffee retailers, such as Starbucks Corporation (Starbucks). However, the industry experienced increased volatility over the past five years due to challenges established by the global spread and economic effect of COVID-19 (coronavirus). Prior to the economic upheaval caused by the pandemic, the industry was sustained by growth in the domestic economy.

Steadily increasing consumer spending in Canada for the majority of the period has supported the industry’s growth, as consumers have been more willing to splurge on small luxuries such as coffee and doughnuts. Busier lifestyles, which have left less time for preparing meals or beverages at home, have also helped the industry, especially as coffee and snack shops have placed a greater emphasis on convenience. Nevertheless, the industry was challenged by the outbreak of the coronavirus, which caused an abrupt decline in demand for industry goods and services while some establishments were forced to close due to the effects of social distancing and essential business restrictions.

The industry has benefited from greater consumer spending on breakfast over the past five years, which has boosted revenue and kept profits stable. The breakfast segment has been a bright spot in an otherwise slow growing food service sector during the period. However, coffee and snack shop operators have been forced to contend with increased competition from fast food restaurants, such as McDonald’s Corporation and Tim Hortons Inc. (Tim Hortons), which recognizes that serving specialty coffee during breakfast is a key means of drawing customers through the door. For this reason, operators have added a greater variety of food items to their menus, such as breakfast sandwiches, fruit and granola cups.

Increased consumer spending and growing demand for specialty products have also encouraged many independent coffee shops to open for business.  Over the five years to 2025, operators will continue to offer more nontraditional, high-margin menu items such as iced coffee, breakfast items and wraps. Industry revenue is forecast to grow at an annualized rate of 2.0% to $5.1 billion over the five years to 2025.

5.1 Market Trends

  • Delivery Apps: Skip the Dishes, Doordash, UberEats
  • Unique Blends of Coffees: Proprietary blends of coffee are becoming more and more popular. Coffee and tea shops — and even full-service restaurants — increasingly offer blends to support good health and reduce fat with soy and collagen creamers. Blends like mushroom coffee and matcha lattes are common. Most dedicated coffee shops offer blends that increase gut health, boost metabolism, and/or support the immune system.
  • Increased Competition: Coffee shop’s are forced to contend with increased competition from quick-delivery restaurants
  • Snapchilled Coffee: Freshness matters. Even if you prefer chilled coffee in hot weather, the snap chilling process is supplanting cold brewing. The process takes freshly brewed coffee and cools it rapidly, which extracts more flavor and more appealing aromas than the cold brewing process. There is also no waste of unused cold-brewed coffee. Snapchilled coffee doesn’t take as long to make as cold-brewed, and you don’t need to dilute the coffee by adding ice cubes. Look for this trend to become more common in coffee and tea shops in 2021.
  • The Most Important Meal: Greater consumer spending on breakfast is expected to boost industry revenue
  • Choosing Tea for Health Benefits: Many consumers now choose tea for its complex blend of chemicals and additives like turmeric, ginger, and chamomile. Most of these tea additives are classified as “adaptogens,” which are substances that relieve mental and physical stress. 3
  • Labour Intensive: The industry remains relatively labour intensive

5.2 Competition

coffee shop introduction sample of business plan

Pallet Coffee Roasters

980 Wellington St. Vancouver, BC V6Z 1N9

Sells coffee online through their ecommerce store

coffee shop introduction sample of business plan

Blenz Coffee

232 Howe St, Vancouver, BC V6C 3R9

64 franchises in British Columbia alone

coffee shop introduction sample of business plan

Railtown Cafe

968 Wellington St. Vancouver, BC V6Z 1N9

Offers coffee, pastries, and delicious food

5.3 Competitive Advantage

  • Massive space which helps provide customers with a safe, socially distanced setting and meeting area
  • Unique set of offerings like a robust selection of rooibos drinks, free meeting rooms and consistently gracious team members. It’s these elements and more that make Sample Coffee Co an intimate and locally-conscious answer to the replicated atmosphere of multinational coffee giants

5.4 Risk Analysis

  • Another wave of Covid-19: The risk of another wave of Covid-19 can be mitigated through our pre-established “delivery platform”. The pandemic has made our audience more focused on customized service, and we can deliver on that by bringing our products to them directly through our catering service, or through UberEats and Doordash.
  • Potential new entrants to the marketplace: Competition is already fierce in our industry. We must remind ourselves and our team to over-deliver by being the best version of our professional selves.  Additionally, by working closely with the franchisor we can progress a mutually beneficial relationship that develops our specific location and the wider Sample Coffee Brand brand.
  • Boost to the minimum wage: Although this would be damaging in the short-medium term we can’t see this happening anytime soon. The BC provincial government understands how hurtful this would be to the hospitality industry and will likely only raise the minimum wage when the time is right for businesses and workers alike.
  • Drop in consumer spending: This is potentially the biggest threat to our business; however, both the federal and provincial government have shown their preparedness to provide economic stimulus to keep the economy moving through consumer spending. Moreover, this can take a few weeks or months to execute, so our location will be prepared for a potential drop in consumer spending by having excess cash available.

6.Marketing Plan

Mr. and Mrs. Doe will be focused on developing a community that wants to come back to the franchise.  By providing kind and professional service, while ensuring guests take advantage of Coffee Rewards we will create a new, exceptional atmosphere.  There are a variety of competing coffee shops in the surrounding area, so to win over customers we must ensure we exceed every client’s expectations in customer-service and through the quality of our products.

6.1 Target Customer

Office Workers

  • 25 – 55 years of age
  • Works in local downtown offices
  • Wants a place to relax and enjoy while out of the office
  • 18 – 25 years of age
  • Attends UBC Robson Square, or a local language school
  • Looking for great deals

Retail Patrons

  • Shops at Nordstrom, Pacific Centre, Holt Renfrew
  • Less focused on price – more focused on quality of food, drinks, selection

6.2 Key Channels

Sample Coffee Co Wellington St. – Instagram Account

Management will develop a customized instagram account to grow our community on one of the most popular social media platforms available, Instagram.  By posting special offers, promotions, and introducing our team we will stay engaged with our audience, and therefore bolster sales.

Special Promotions on Food Delivery Apps

Food delivery apps Doordash and UberEats are incredibly popular right now.  Management will create special promotions to get the franchises food and drinks in front of the target customer.

Catering Services to Local Offices

By catering to a wide audience of local offices we can develop key relationships with individuals and businesses.  This channel will develop our catering service, and eventually transpire into more guests in our store by nurturing the relationships we develop with local office staff.

The Official Sample Coffee Co Coffee App

The official app for Sample Coffee Co Coffee allows you to use your phone to pay and earn points at every location. Scan the app barcode in store to earn points on your purchases and build progress toward rewards. With this app you can add money to your account, set up auto-reload of your account, view transaction history and follow your rewards progress. It’s the fastest way to pay at Sample Coffee Co Coffee. Features:

  • Sample Coffee Co Coffee Rewards: View your account points balance and other rewards
  • Pay with your phone at Sample Coffee Co Coffee locations.
  • Reload your account or set up auto-reload with your credit card.
  • Earn progress to rewards.
  • Send Sample Coffee Co Coffee e-gifts to friends and family.

6.3 SWOT Analysis

coffee shop introduction sample of business plan

7.Financial Plan

The following financial projections are a product of this very business plan.  By investing in marketing, and having a sound operational strategy, Sample Coffee Shop will turn around the Sample Coffee Co Wellington St. location and bolster year over year (YOY) sales.

7.1 Financial Summary

coffee shop introduction sample of business plan

7.2 Income Statement – Year 1

coffee shop introduction sample of business plan

7.3 Income Statement – Year 2

coffee shop introduction sample of business plan

7.4 Income Statement – Year 3

coffee shop introduction sample of business plan

How can we help you?

Get in touch with us or visit our office

  • United States

How to Create a Coffee Shop Business Plan and Executive Summary: Free Template & Guide

By Debra Weinryb

Smiling coffee shop owner standing in front of an espresso machine.

Before you open a coffee shop, you will need to have a coffee shop business plan. This important document acts as a roadmap for your coffee shop business adventure – with everything you need to turn your business dreams into a reality. 

If you’re passionate about coffee but have never written a business plan before, it can be nerve-racking to start. To help you out, we’ve put together a complete guide to writing a successful coffee shop business plan. In this guide, we’ll cover:

  • What is a coffee shop business plan?
  • How to write a business plan for a coffee shop
  • The 10 sections of every successful coffee shop business plan
  • A free coffee shop business plan template

Smiling barista standing in front of a modern coffee bar.

Create a custom business plan for your coffee shop concept with this free template.

What is a Coffee Shop Business Plan?

A coffee shop business plan is a document that explains what your business idea is and how it will succeed. It answers several questions, like how you will set up your coffee shop, how you will fund your business, and what revenue you expect to make. It includes information about your marketing plan, sales strategy, coffee shop customers , pricing structure, competitors, required labor, and financial plan.

Similar in length to a traditional restaurant business plan , it’s a succinct document that usually spans 15-20 pages, but no more than 30 pages. Coffee shop business owners can make their plans pop with visuals like photos and designs of their coffee house, and site plans of their retail store. Charts and graphs are also used to show financial inventory information, like how much coffee beans will be purchased monthly and at what cost, for example.

Once complete, you will be able to show your coffee house business plan to potential investors, bankers, and business partners. That’s why it’s so important to dedicate a large amount of time and energy into getting your java shop business plan underway early on.

two coffee baristas work in a coffee shop

How to Write a Business Plan for a Coffee Shop

With the proper guidance, your brew shop business plan can be easy to write. That’s why having a coffee shop business plan template is a useful aid for conceptualizing your business and goals before you start to write. Additionally, having a coffee shop business plan example can help you think of key elements to demonstrate your coffee shop’s potential for growth and profitability – which are both important to attract funding.

Elements of a Coffee Shop Business Plan

Executive summary for a coffee business .

Start with your executive summary – a short and high-level overview of each section in your coffee house business plan. In any business plan sample for a coffee shop, you’ll see that this is the first section because it gives readers crucial information about your business before you dive into details.

The executive summary section describes your business concept, the problem it solves, your target market, financial highlights, lease information, as well as your vision for the menu, products, and how you will service coffee – whether that’s in a kiosk, drive through, pickup, or sit-down coffee shop. 

As you write your executive summary, consider who will read your brew shop business plan and what you would like them to know. After all, you want to capture your reader’s attention and entice them to continue to read or even invest!

Here are a few key points of interest you can mention in your executive summary:

  • Ambiance: The character and atmosphere of your coffee shop
  • Location: Information on your potential foot traffic, facility/lease, and seating capacity.
  • Kitchen storage: Space for multiple blends of coffee or a high-end espresso machine.
  • Goals: Your mission statement and guiding principles that will drive your success.
  • Funding: What funds you need and how you will use them to achieve your vision.

Business Overview

The Business Overview section takes a deeper dive into the coffee industry as a whole, your local market, and what makes your coffee shop model unique among the competition. Here, start by giving a brief overview as to when and why you started your coffee shop business. In addition, you can include major achievements such as hitting target sales goals or opening new coffee shop locations.

In this section, you can also go into more detail about the business operations of your neighborhood coffee shop . For example, explain what coffee and food products you will offer, your hiring and labor practices, and how you’ll brew coffee. This, of course, will depend on your coffee shop business model. 

Here are a few types of coffee shops and how they could be described:

  • Grab-and-go coffee shop: Pickup or drive through only, so folks can grab a cup of coffee in a heartbeat
  • Traditional coffee shop: Sells baked goodies and a variety of coffee drinks in a relaxed atmosphere
  • The coffee bar: Like a homey living room, with lounge music, WiFi, and fresh coffee

Management and Staff

In this section, you will talk about ownership. Start with the business owner(s) who will manage your coffee shop, and talk about their experiences/qualifications that will make them successful. You’ll also include details of who will take care of your day-to-day coffee shop operations. 

Every coffee shop will need baristas who take care of sales and make drinks, but those that sell food may also need someone to operate basic kitchen equipment. Additionally, you may want to hire someone to do marketing and advertising, or an accountant to take care of your bookkeeping. 

After deciding on what jobs you want to create, you’ll need to identify if they are part-time or full-time, how you will recruit/train them (e.g., barista training), and what you will pay them in wages and benefits. Your employees will factor into your financial forecast and expenses later on in your business plan for a coffee shop, so it’s essential to get a head start on your hiring budget.

Coffee Shop Market Analysis

Your Market Analysis section should show that you’ve looked at your target market, assessed your location, and understand how you’ll compete against other coffee shops in the area. Remember to consider what makes your restaurant unique and what will help it stand out. Here are two ways you can do just that:

Mention if your coffee shop is in a central location, such as near a college where students break for lunch, or next to office buildings where professionals drop in on their way to work. If you are one of many coffee shops in an area, consider pointing out what makes you different, like your wide variety of specialty coffees and the quality of your food.

Customer Analysis

Include information about your ideal customer – with details on who they are, why they shop at your coffee shop, and any metrics. If you performed market research before starting your coffee shop, include that too. For example, if you have data on a high demand for espresso in your area, the sales potential for a drive-through espresso stand could be very promising.

Sample Menu

A section with a sample menu lets investors know exactly what you’ll be serving. Keep in mind that your sample menu should be a differentiator – otherwise, why would investors think that customers should choose your coffee over competitors who serve similar drinks?

Here are a few tips for choosing what to include in your great sample menu:

  • Think about the types of coffee beans that could set you apart. Maybe you only serve organic coffee beans, unlike your competitors.
  • Cater the types of drinks you serve to your target market. For a young customer, sweet frappuccinos, hot chocolates, and drinks topped with whipped cream can be popular. For health-conscious consumers, options like tea and “light” coffee may perform better.
  • If your customers will be hungry, such as students on a lunch break, or employees on their way to work, then consider including food items like pastries.

Marketing Plan and Publicity

An effective marketing plan is essential for bringing new customers through your coffee shop’s door and retaining your loyal guests. In this section, start by describing how you want to drive incoming traffic, in addition to what budget you have in mind, and your expected return on investment. If you have a lot of detailed information, you may want to create a separate marketing plan document.

To cover all your bases, you can include the Four Ps of Marketing:

  • Product: What beverage and food products you will offer? For example, will you offer non-coffee drinks, frappuccinos, espresso, or cold brews?
  • Price: What is your average price point and how does it compare to competitive coffee shops?
  • Place: The location of your coffee shop and how it will impact your success. For example, will you operate kiosks, and if so, where will they be placed to get the most foot traffic?
  • Promos: How will you drive customers to your location(s)? Examples include live music, giving free samples, advertising, or partnering with influencers or other organizations.

Business Operations and Operating Plan

The business plan operations section includes the physical requirements of your coffee shop business, like retail space, specialized equipment, supplies, and labor. When describing your business’ operational expenses, also consider showing where your coffee shop is trying to save money. For example, if you are buying used furniture or equipment, let your reader or potential investor know how you are cutting losses. 

Here are a few areas you can include in the operating plan section:

Retail Space

  • Space you plan to lease, buy, or rent for your coffee shop
  • Parking spaces for a truck or for customers to access your coffee shop

Specialized Equipment

  • Coffee machines like a coffee grinder, a brewing machine, or a hot water dispenser
  • Specific arrangements like a sandwich prep table, counter space, or a display case
  • Technology such as a coffee shop POS to process transactions and track inventory
  • List your suppliers according to type – for your coffee beans and other food and drink products
  • Menu items you will buy vs. make in your coffee shop, such as croissants or cookies
  • The frequency at which you need to restock your coffee shop inventory
  • Staff such as a Barista to brew coffee
  • Staff to do food preparation, menu creation, and cleaning
  • A manager to oversee payroll and human resources

Financial Forecast and Expenses

This is an important section, especially if you need to attract investors to your coffee shop. Since coffee shops are often smaller storefronts, usually with a lower profit margin , this section needs to emphasize how your coffee shop business will grow and be profitable in the long-term. 

Your financial forecast and expenses section should include the following:

  • Cash flow statement with monthly projections for all your coffee shop purchases
  • Balance sheet to give investors a snapshot of your assets, liabilities and equity
  • Break even analysis to demonstrate the sales you need in order to make a profit

Coffee Shop Business Plan: Next Steps and Plan Template

To get ideas of details to include, use a coffee shop business plan sample.

Whether you own a coffee shop or are just starting out, writing a coffee shop business plan is essential to your success. In such a highly competitive coffee market , you need a business plan to show potential investors what makes your store stand out. 

If you’re looking for a coffee shop business plan example, a template is a great place to start. By using a coffee business plan template , you can improve your chances of securing funding or attracting new business partners. Using a business plan sample for a coffee shop will also keep you organized and show readers how your coffee shop can be successful.

FAQs: Coffee Shop Business Plan

If you have any lingering questions, we’ve answered the top coffee shop business plan FAQs.

How profitable is a coffee shop?

A coffee shop business’ profits can range from 2.5% to 85% of gross sales, according to this Chron article . The amount of profit depends on the size of your coffee shop – smaller coffee shops usually have lower profits.

How do you start a coffee shop business?

To start a coffee shop business, do lots of research on the industry and your market so you can plan how to separate yourself, your menu, and the quality of your products from competitor coffee shops. Consider where your coffee shop might be located and what kind of customer base you’ll have. Map out the expected costs for operations, marketing, etc. in a financial plan. This will help you plan a strategy for success so you can create a strong coffee shop business plan to present to potential investors.

How much budget is needed to open a coffee shop?

How much budget you need to open a coffee shop will depend on the location of your business. Start by doing some research on real estate in the area where you want your coffee shop business, suppliers for your menu items, cost of hiring employees, and other operating costs. Also, consider what kind of marketing campaigns – such as email, direct mail, and advertisements – that you might want to run and include those in your budget too.

How do you start a business proposal for a coffee shop?

To start a business proposal for a coffee shop, use a coffee shop business plan sample and make sure you include the key sections: an executive summary, business overview, management and staff, market analysis, marketing and publicity, operations plan, and financial forecast and expenses.

Also, make sure you do enough research before you start so you understand how a coffee shop business works, your market, and your competitors, and have relevant facts and figures to support the plan for your new business. 

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Debra was a Content Marketing Specialist at TouchBistro, writing about the latest food and restaurant industry trends. In her spare time, Debra enjoys baking and eating together with family and friends.

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></center></p><h2>How to Write a Successful Coffee Shop Business Plan (with Template)</h2><ul><li>By Tam Nguyen</li></ul><p><center><img style=

Table of Contents

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

What is A Coffee Shop Business Plan?  

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

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

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

1. Clear Vision and Objectives

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

2. Financial Planning

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

3. Operational Efficiency

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

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

1. Executive Summary

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

What should you cover in an Executive Summary?

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

2. Coffee Shop Business Description

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

What should you cover in the Coffee Shop Description section?

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

3. Market Analysis

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

What should you cover in this section?

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

4. Organization and Management

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

What should you cover in the Organization and Management Plan?

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

5. Sample Menu

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

What should you consider when creating a Sample Menu?

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

6. Marketing Plan

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

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

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

7. Operations Plan

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

What Operational Issues should you address in your Business Plan?

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

8. Financial Plan

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

How Much Does It Cost to Start a Coffee Shop?

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

How Many Ways to Fund Your Coffee Shop?

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

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

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

9. Financial Projections

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

Break-even analysis:

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

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

Projected profit and loss statement:

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

Cash flow analysis:

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

Coffee Shop Business Plan Template 

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

2. Description of the Coffee Shop

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

3. Menu Offer

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

4. Market and Competition Analysis

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

5. Investment Plan (Detailed Cost Analysis)

Investment Cost (One-off): $75,000

  • Equipment: $30,000
  • Renovations: $20,000
  • Initial Stock: $10,000
  • Licenses: $5,000
  • Miscellaneous: $10,000

Operating Costs (Monthly): $17,000

  • Rent: $3,000
  • Salaries: $10,000
  • Utilities: $1,000
  • Stock: $2,000
  • Marketing: $1,000

6. Financial Forecast

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

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

8. Marketing Plan

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

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

Tips For Writing a Business Plan For a Coffee Shop

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

Comprehensiveness is Key: Ensure your plan encompasses all sections you should include, such as marketing, financial projections, and operations. A well-rounded plan provides a holistic view of your business.

Tailor to Your Audience: If you’re presenting to potential investors, focus on profitability and growth projections. For a landlord, emphasize the benefits your coffee shop will bring to their property.

Specialize in Marketing: Given the competitiveness in the coffee industry, it’s crucial to have a solid marketing plan. If marketing isn’t your strength, consider hiring someone to do marketing for your venture. A strong online presence, loyalty programs, and community engagement can set you apart.

Research Your Market: Understand what nearby coffee shops include in their offerings. Identify gaps in the market and strategize on how your shop can fill them.

Stay Flexible: While a business plan provides direction, remain adaptable. The coffee industry is dynamic, and your ability to pivot can prove invaluable.

Separate Sections for Clarity: If your plan becomes too dense, you might want to create a separate document for specific sections like a detailed marketing strategy or an in-depth market analysis. This makes your primary business plan concise and more readable.

Frequently Asked Questions

1. how profitable is owning a coffee shop.

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

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

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

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

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

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

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

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

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

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

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Coffee Shop Business Plan Template

Business Plan Outline

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

Coffee Shop Business Plan

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

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

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

Coffee Shop Business Plan Sample

Below are links to each section of our coffee shop business plan example:

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is a coffee shop business plan.

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

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

What Are the Main Types of Coffee Shops?

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

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

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

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

How Much Does it Cost to Start a Coffee Shop?

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

How Do You Get Funding for Your Coffee Shop Business?

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

How to Start a Coffee Shop?

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

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

  • How to Start a Coffee Shop Business

Where Can I Get a Coffee Shop Business Plan PDF?

You can download our free coffee shop business plan template PDF here . This is a sample coffee shop business plan template you can use in PDF format.

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Coffee Shop Business Plan Sample

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Coffee shop business plan sample

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

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

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

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

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

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

1. Business Plan Title Page

3. market overview, 4. competitive analysis, 5. swot analysis, 6. marketing plan, 7. funding request, 8. management summary, 9. financial highlights, coffee shop business plan powerpoint presentation, download coffee shop business plan example pdf.

Coffee Shop Business Plan Template

Coffee Shop Business Plan Sample

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

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

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

Coffee Shop Business Plan Template

What makes a great cover page for a business plan?

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

2. Executive Summary

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

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

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

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

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

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

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

Read more: Executive summary examples

Financial Highlights

Financial highlights of coffee shop business plan Sample

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

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

Market Analysis

Market Analysis of Coffee Shop Business Plan Sample

Target Market

Target Market of Coffee shop business plan sample

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

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

Competitive analysis of coffee shop business plan

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

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


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

Free: Business Plan Examples

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

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

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

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

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

Read more: how to do market research research

Fund Requirement for Coffee Shop Business Plan

Read more: ways to find investors for your business

Management Summary Coffee Shop Business Plan

Financial Indicators

financial indicators of coffee shop business plan samples

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

Break even analysis

Break even Analysis of Coffee Shop Business Plan

Profit and Loss Statement

profit and loss statement of coffee shop business plan samples

Projected Cash Flow

projected cash flow of coffee shop business plan samples

Projected Balance Sheet

balance sheet of coffee shop business plan samples

Coffee Shop Business Plan Sample. FAQs:

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

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

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

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

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

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

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Business Plan: ELEGANT coffee shop

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Free Related PDFs

Jonathan Morris

This article outlines the history of the origins of espresso coffee in Italy, its incorporation into Italian mass culture during the years of the economic boom, and the transfer of 'Italian style coffee' into overseas markets during the 1950s and 1960s. The second part of the chapter outlines the adaptation and valorisation of 'Italian-style coffee' as part of the Speciality Coffee movement in the United States in the 1970s and 80s, the development of the coffee shop chain format, and the transfer of this back into Europe, notably via the UK, with the ambiguities over authenticity and nationality that this generated. The article concludes with a consideration of the impact of these developments on the Italian coffee industry.

'A History of Espresso in Italy and in the World' (2008),

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Coffee Market in China: Trends & Consumer Strategies A Coffee industry Market Research of a Traditional Tea-Drinking Country

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Azizi Bupe / Sample Business Plan Project


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  1. The Ultimate Guide to Creating a Sample Business Plan: Step-by-Step Instructions

    In the world of entrepreneurship, having a well-thought-out business plan is essential for success. A business plan serves as a roadmap, outlining your goals, strategies, and financial projections.

  2. The Ultimate Guide to Crafting a Winning Business Proposal: Sample Included

    In the competitive world of business, a well-crafted business proposal can make all the difference between securing a lucrative deal or losing out to the competition. The introduction section of your business proposal serves as your chance ...

  3. Sample Roofing Contract Template: Customize for Your Business Needs

    When it comes to the roofing industry, having a solid contract in place is crucial for both contractors and clients. The introduction section of your roofing contract should include essential information about your company and the client yo...

  4. Business Plan: Coffee Shop Report Example

    In conclusion, it should be noted that the cost of establishing the shop is $363,000. The majority of the expenses will be used in purchasing

  5. Intro To Business Coffee Shop Project

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  6. Coffee Shop Business Plan Sample

    Read the latest post from Black Sheep Business Consulting, "Coffee Shop Business Plan Sample".

  7. Coffee Shop Business Plan (How to Write & Template)

    The executive summary acts as a captivating introduction to your coffee shop business plan, enticing readers to explore the detailed

  8. How to Write a Coffee Shop Business Plan

    Executive Summary. A concise introduction to your coffee shop's concept in the form of an executive summary is the first section of a business plan. · Company

  9. How To Write a Coffee Shop Business Plan & Executive Summary

    How to Create a Coffee Shop Business Plan and Executive Summary: Free Template & Guide. By Debra Weinryb. Smiling coffee shop owner standing in front of an

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

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    Let's review the Coffee shop business plan sample in PDF to find out how cloud-based software can make your day-to-day work more efficient.

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    ELEGANT COFFEE SHOP 1. Executive Summary The concept ELEGANT coffee shop is determined to become a daily necessity for local coffee addicts, a place to