How To Start & Write Your Coffee Shop Business Plan. Кофе business


Start a Coffee Shop or Cafe Business

This article is part of our Cafe Business Startup Guide—a curated list of articles to help you plan, start, and grow your cafe business!

Is coffee your passion? Have you wondered what it might take to open a drive-through kiosk, or your personalized version of a Starbuck’s cafe? Where do you begin? By reading and researching what others like you have done to turn their business idea into reality.

We’ve grouped the following resources together as a starting point for your research into what it would take to start your own coffee shop or cafe business. In addition to the free content (such as sample coffee shop business plans that you can read in full online), you will also find links for additional tools and products to help you move from the “Where do I begin?” research step to the “How do I get started?” step—when you’re ready.

Looking for inspiration? Check out our coffee house and internet cafe sample business plans. See how others like you got started and turned their business idea into a reality. These plans can be read fully online.

Coffee Kiosk Business Plan (Full Plan Online)Read how The Daily Perc opened drive-thru and mobile cafes serving coffee drinks and other beverages.

Coffeehouse Business Plan (Full Plan Online)This sample business plan describes how Dark Roast Java attracted a diverse clientele with its Mediterranean art glass decor.

Internet Cafe Business Plan (Full Plan Online)The JavaNet Internet Cafe was a true visionary business sample plan when it was written, and the number of cafes with this similar idea confirms it was an idea ahead of its time. Get inspired.

Religious Coffeeshop Business Plan (Full Plan Online)The Inspirational Grounds sample business plan describes how the religious coffee shop combined selling specialty coffee drinks, food, religious books and music to promote non-denominational Christian fellowship in a welcoming atmosphere.

Cafe Bistro Coffeehouse Business Plan (Full Plan Online)The Watertower Cafe sample business plan describes how the cafe will establish itself as a “destination” of choice to the many residents of the greater Atlanta metropolitan area, as well as numerous out-of-town visitors by providing affordable high-quality food, coffee-based products, and entertainment.

“Marketing will play a vital role in the success of JavaNet. JavaNet must build a brand around the services it offers by heavily promoting itself through local television, radio, and print advertising. Marketing efforts are just beginning by the time a potential customer enters JavaNet for the first time. A strong emphasis will be put on keeping customers and building brand loyalty through programs focused on staffing, experience, and customer satisfaction.”

Looking for more resources to help you start your coffee house or cafe? This free online business planning toolkit includes a presentation by business planning guru Tim Berry, a set of business calculators, sample business plans and more.

Additional Sample Business Plans

These additional Coffee Shop sample business plans are available in LivePlan.

Coffee Shop Business PlanIn this sample business plan, find out how the Java Culture coffee bar capitalized on its proximity to the University campus to build a core group of repeat customers.

Executive summary (excerpt)Java Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet coffee and great service Java Culture will offer its customers the best prepared coffee in the area that will be complemented with pastries.

Bakery and Coffee Business PlanA bakery preparing fresh pastries and other baked goods complements the specialty coffee drinks in the Jolly’s Java and Bakery sample business plan.

Executive summary (excerpt)Jolly’s Java and Bakery (JJB) is a start-up coffee and bakery retail establishment located in southwest Washington. JJB expects to catch the interest of a regular loyal customer base with its broad variety of coffee and pastry products. The company plans to build a strong market position in the town, due to the partners’ industry experience and mild competitive climate in the area.

This informative business binder provides the essential knowledge you need to plan and start a restaurant, cafe, bakery, or other food business. It covers such basics of the food service business as location considerations, facility requirements, personnel needs, legal requirements, finance, marketing, operations, and more. Also included in this start-up kit is a copy of LivePlan software, the world’s bestselling business planning software.

Get valuable financial intelligence and industry trends for restaurants and related businesses in a restaurant industry research report. We provide detailed reports with five years of financials, business ratios, and more. Better yet, our restaurant industry reports are available at the U.S. national, state, and even county level, so you can really understand the local competitive environment. Start your market research the easy way.

View an example industry report as a PDF

Select and purchase industry research reports and search for “Eating and drinking places, SIC Code 5812”, from the database.

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COFFEE SHOP BUSINESS PLAN

Table of Contents:

 

COFFEE SHOP BUSINESS PLAN Executive Summary:

COFFEE SHOP BUSINESS PLAN explains that Every day, millions of people stops for an espresso-based coffee drink. People who would not have dreamed of spending more than $10 for a cup of coffee a few years ago now gladly pay $50 to $250 for their cappuccino, mocha latte or vanilla ice blended drink. Liberty coffeehouse is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet coffee and great service, Liberty coffeehouse will capitalize on its proximity to the to build a core group of repeat customers. Liberty coffeehouse will offer its customers the best prepared coffee within few seconds in the area that will be complimented with pastries, as well as free books that its patrons can read to enjoy their visit

The specialty-coffee business is growing at a healthy pace. During the past 5 years, there has not been a single year, despite war and recession, in which specialty coffee sales have not grown. In many years the increase has been in double digits. In addition, no coffeehouse chains have failed during this time, although the list of casualties in other industries is quite long.

The Coffee Day, Barista, Mocha… and other major chains serve average quality drinks in establishments that have the same generic design appearance. Indeed, Coffee Day and The Coffee Bean are often referred to as “fast food” coffeehouses due to their “cookie cutter” design. Now that  coffee preferences have broadened and matured, many are asking for more from their coffeehouse.

A niche exists that has yet to be filled for a high-volume, upscale, quality-driven coffeehouse with a warm, inviting atmosphere.

Liberty Coffee Shop meets this need and fills this niche. We offer high-quality products in an upscale environment. Furthermore, our high-profile location in Liberty Lahore provides a mixed customer base that will maintain high levels of business in every season, at all times of the day, every day of the week.

Before continuing with the Coffee Shop Business Plan, have a look at these links to get an idea about best coffee chains:

http://www.foxnews.com/leisure/2016/02/02/america-best-coffee-shops/

http://www.msn.com/en-us/foodanddrink/nonalcoholic/the-10-best-coffee-chains-in-america/ss-BBn9ZQi

[wpdevart_youtube]https://youtu.be/cSoKHKYQ-9s[/wpdevart_youtube]

 

Note:

This Coffee Shop Business project is based on market assumptions and past data. The figures and amounts may vary as market trend changes with time.

 

Founders:                     Liberty Coffee Shop has a long career as an entrepreneur and marketing executive. There are three main founders of coffeehouse business and we are also partner in our business.

 

Financials:

                     The company anticipates rapid acceptance of the Coffeehouse concept in selected area, with revenues of $60,000+ in the first fiscal year.Net profit is projected to be approximately $150,000 in year one.

An advanced and expandable point-of-sale system:

After carefully tracking the performance of the selected area store through an expandable and highly detailed point-of-sale system, we will use this as a “blueprint” for expansion. For example, daily sales are tracked and analyzed by item, time period and cost of goods. Labor requirements are matched to projected in-store sales based upon past performance for maximum efficiency. Even after paying higher than average wages, we expect to allocate no more than 25% to labor costs.

This Business Plan only provides data on the the area you select.

Mission:

Our goal is to be the coffeehouse of choice for the local Liberty community with new innovation we know the world has moving so fast so everybody wants quickness in everywhere of their life so all that things we know and bring innovation in our coffeehouse business that is Time, we know Time is money we have introduced for the first time the coffee which has no takes more time and just within few seconds coffee will be in your hand. Business workers, tourists who visit the city, and students, by providing a higher quality experience than any competitor. As a result, we intend to create coffeehouses that quickly achieve profitability and sustain an attractive rate of return (20% or more annually) for our investors.

We also want to make our contribution to the welfare of the local community by supporting charitable and civic activities. We will support the farmers who grow our coffee by using Fair Trade, Sustainable Production and Organic products whenever possible.

Liberty Coffee Shop also awards its business to as many local suppliers as possible, keeping the business in the community or, at the least, in the state.

Objectives:

  • Make Liberty Coffee Shop the number one destination for coffee in every city.
  • Sales of $60,000+ the first fiscal year, $75,000+ the second fiscal year and 1 Million the third fiscal year
  • Achieve a 15% net profit margin within the first year and 30% by FY3
  • Achieve a total net profit of $100,000+ in FY1 and $200,000+ by FY3
  • Be an active and vocal member of the community, and provide continual re-investment through participation in community activities such as the Chamber of Commerce and financial contributions to local charities and youth organizations
  • Create a solid concept in the industry and track performance in order to begin expanding to other markets within six month.
  • Become selected as the “Best New Coffeehouse in the area” by the local restaurant guide.
  • Turn in profits from the first month of operations.

Keys to Success Factors:

The keys to our success will be:

  • A superior-tasting product backed by a unique quality store
  • A relaxing, upscale interior design
  • Prime site selection with an upscale affluent population, year-round tourist activity, heavy pedestrian traffic by the site, a dynamic student population and a concentration of local businesses
  • A market that exposes Coffeehouse to high-profile “trend-setters” and “key influencers”
  • Ongoing, aggressive marketing
  • Highly trained and friendly staff using best Talent Management Techniques.
  • Multiple revenue streams including gift items, gift baskets and coffee gift/frequency cards in addition to coffee, pastry, chocolates, tea, juice, water and soft drinks
  • A dynamic website with online sales capability
  • Employee training to insure the best coffee preparation techniques.
  • Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks.

Company Summary:

Liberty Coffee Shop launches with its first coffeehouse located in Seattle, WA. Liberty Coffee Shop will offer residents and visitors a totally new style of coffeehouse – one offering a uniquely flavorful coffee drink and a comfortable, upscale environment at which to socialize, relax or work.

  • Variety: No other coffeehouse in the area will provide the time saving coffee and the range of coffee drinks, tea, cocoa, juice, smoothies and other products that Coffee Beans does.
  • Location: Liberty Coffee Shop will be located in the prime section of Liberty Lahore in the heart of the shopping and entertainment district. Coffeehouse locations are designed for high volume year round, with revenues and profits to match.
  • Expansion: Assuming this store is successful, it will be the first of a chain of Coffee Beans coffeehouses located in markets that have similar demographic profiles, significant traffic by the store, year-round tourist activity and a sizeable student population.

 

The Coffee-House Concept:

At one time Cadillac was the acknowledged quality automobile. Then came Mercedes-Benz. And then Lexus, with its superb product and service approach. Liberty Coffee Shop will be the first “Lexus” of the coffeehouse chain industry, offering a higher quality product and better quality service in an exceptional environment.

Liberty Coffee Shop offers a superior coffee product, delicious pastries, fresh juices, the finest tea drinks, cookies, gourmet chocolates and gift items.

The Coffee Beans staff members who prepare the coffee (baristas) are highly trained and experienced. They know how to prepare an excellent espresso-based drink and brew tasty coffee. We use the highest quality equipment and ingredients to deliver a noticeably superior product.

Our design style is different from all other coffeehouses, an upscale “Cote d’Azur” look. It features stained glass decorations, art glass-work, Mediterranean Riviera style furnishings and outdoor dining.

Company Ownership:

Liberty Coffee Shop is a privately held corporation.

COFFEE SHOP BUSINESS PLAN Start-Up Summary:

Start-up expenses are in line with those of other coffeehouse chains. For example, Coffee Day spends approximately $30,000 on average to build-out a new store location. Our costs are an estimated $15,000 for opening inventory and operating capital. Future stores should cost no more than $25,000 to build out since many of the costs incurred here will not have to be repeated later.

The Start-up requirements, below, include $46,500 of short and long-term assets.

Long Term Assets: $32, 500

Under counter Refrigerators$3,000
Service/Prep Counter$1500
Ice Machine$2,000
Large Refrigerator$1,500
Milk Coolers (3)$1,000
Cash register (2) Point of Sale System$2,000
Espresso Machine$15,000
Fetco Coffee Brewer$1,500
Counters/Condiment bar/shelving$5,000

Short-Term Assets: $14, 000

Tables, Chairs, Furnishings$10,000
Persian Carpet$1,000
Lighting Fixtures$3,000

 

Start-up

Requirements
Start-up Expenses
CONSTRUCTION$. 0
Site design, architectural plan$ 10,000
Demolition/Construction$. 7,000
Electrical, Lighting$. 5,000
Electrical, Other$. 5,000
Flooring/installation$. 5,000
Bathroom Construction$. 8,000
Plumbing$. 3,000
Fireplace Construction$. 2,000
Painting$. 2,500
City permits/licenses/fees$. 1,500
Inserted Row$. 0
LEGAL$. 0
Accounting$2,000
Legal$ 1,500
Insurance$ 2,500
Inserted Row$ 0
MARKETING$ 0
Opening marketing/advertising$ 3,000
Graphic design for signage, menu boards$ 2,000
Outside Signage$ 1,500
Frequency Cards, Brochures$ 1,500
Inserted Row$ 0
OFFICE$ 0
Office equipment$ 600
Computer, scanner, printer$ 2,000
Telephones/Fax/DSL$ 500
Stationery etc.$ 1,000
Gift item displays (3)$ 500
Inserted Row 0
APPLIANCES, ETC$ 0
Preparation equipment$ 1,000
Dishwasher$ 3,500
Blenders (3)$ 2,000
Microwave$500
Panini maker$ 700
Storage racks$ 1,000
Music system$ 800
Food display case$ 3,000
Storage room shelving$ 2,000
Bulk bean grinder$ 700
Sinks (2), prep counters$ 1,200
Menu board construction$2,500
Cups/Lids (50,000)$4,500
Total Start-up Expenses$ 95,800
Start-up Assets
Cash Required$ 1,500
Start-up Inventory$ 25,000
Other Current Assets$ 15,000
Long-term Assets$32,500
Total Assets$ 103,500
Total Requirements$ 177,500

 

Start-up Funding
Start-up Expenses to Fund$ 95,800
Start-up Assets to Fund$ 103,500
Total Funding Required$ 199,300
Assets  
Non-cash Assets from Start-up$ 102,000
Cash Requirements from Start-up$ 1,500
Additional Cash Raised$ 0
Cash Balance on Starting Date$ 1,500
Total Assets$ 103,500
Liabilities and Capital 
Liabilities 
Current Borrowing$ 0
Long-term Liabilities$ 0
Accounts Payable (Outstanding Bills)$ 0
Other Current Liabilities (interest-free)$ 0
Total Liabilities$ 0
Capital 
Planned Investment 
Investors$ 250,000
Other$ 500
Additional Investment Requirement$ 0
Total Planned Investment$ 250,500
Loss at Start-up (Start-up Expenses)($ 95,800)
Total Capital$ 154,700
Total Capital and Liabilities$ 103,500
Total Funding$ 258,200

 

Products:

Liberty Coffee Shop sells high-quality specialty coffee beverages, tea, juice, water, soft drinks, pastries, chocolates and gift items. Despite being an upscale coffeehouse, our prices are in line with the leading national chains. Coffeehouse will offer its customers the best tasting coffee beverages in the area. This will be achieved by using high-quality ingredients and strictly following preparation guidelines. The store layout, menu listings and marketing activities will be focused on maximizing the sales of higher margin espresso drinks. Along with the espresso drinks, brewed coffee and teas, as well as some refreshment beverages, will be sold in the coffeehouse. Coffeehouse will also offer its clients pastries, small salads and sandwiches. For the gourmet clientele that prefers to prepare its coffee at home, Coffeehouse will also be selling coffee beans.

Vendors:

  • Coffee roasting is provided by Grizzly Mountain Coffee Company.
  • Tea is primarily supplied by Q-mart.
  • Our water vendor is Kinley.
  • Juices are provided by pure o natural (fresh orange juice and lemonade).
  • Pastries are provided by local bakery, Swiss Castile.
  • Chocolates and cocoa are from Q-mart.
  • Gift items are from various vendors
  • Soft drinks are provided by Sprecher’s, reliance fresh.

Product Description:

The menu of the coffeehouse will be built around espresso-based coffee drinks such as lattes, mochas, cappuccinos, etc. Each of the espresso-based drinks will be offered with whole, skimmed, or soy milk. Each of these coffee beverages is based on a ‘shot’ of espresso, which is prepared in the espresso machine by forcing heated water through ground coffee at high pressure. Such espresso shots are combined with steamed milk and/or other additives like cocoa, caramel, etc., to prepare the espresso-based beverages. Proper preparation techniques are of paramount importance for such drinks. A minor deviation from the amount of coffee in the shot, the size of the coffee particles, the temperature of milk, etc., can negatively affect the quality of the prepared drink.

 

The Liberty Coffee Shop Menu:

The Coffee house business plan menu sets us apart from other coffeehouses, giving us a competitive edge.

  • We offer six groups of drinks—coffee, tea, Italian sodas, smoothies, juice and cocoa—with several choices within each group. This enables us to provide more variety than our competitors while keeping the preparation of the drinks easy to execute.
  • We are taking advantage of the immense popularity of flavored drinks and tea by offering a product mix that includes items the other coffeehouses don’t carry as well as more familiar drinks.
  • We are the only coffeehouse to have a wide range of gourmet hot cocoa.
  • Coffee Beans offer several smoothie drinks and Italian sodas.
  • We carry the highest quality fresh juices.

Prices have been determined after a thorough analysis of all food costs for every item in each drink. In some cases, an average price has been calculated and applied to all similar drinks in order to keep the menu from confusing the customer.

Coffee and Espresso Drinks:

COFFEE

Coffees of the day:  Coffee Beans Blend, Riviera Roast, and Molokai Swiss water process DeCaf.

$2.3 Regular $3.3Large

ESPRESSO

NameDescriptionRegularLarge
EspressoA double shot of straight espresso.$2.4 Double
Coffee IndianoEspresso combined with hot water, a gourmet brewed coffee.$2.5$3.5
CappuccinoEspresso with a smooth topping of milk foam.$2.6$3.7
Coffee Latte Espresso combined with steamed milk, topped with a small amount of velvety milk foam.$2.62$3.55
Coffee Mocha A Coffee Latte combined with Ghirardelli chocolate, topped with whipped cream and chocolate shavings.$2.71$3.81
Espresso MacchiatoA straight shot of espresso topped with a spoonful of rich milk foam.$2.72$3.85
Espresso Con PannaA straight shot of espresso topped with a generous dollop of whipped cream.$2.75$3.85
Espresso Latte BreveOur famous latte made even more creamy with half and half.$2.75$3.85
Espresso “Red Eye”Espresso combined with our gourmet coffee of the day to get your day going.$2.75$3.85

COFFEE DRINKS

NameDescriptionSmallLarge
The Banana Nut Coffee. Warm milk. Banana, macadamia nut and vanilla syrups. Topped with whipped cream and cinnamon dusting.$2.7$3.8
The Cafe MilanoCoffee. Warm milk. Amaretto and vanilla syrups topped with whipped cream and almonds.$2.74$3.95

FLAVORED ESPRESSO DRINKSall flavored drinks feature quality Monin and Ghirardelli syrups.

NameDescriptionRegularLarge
Vanilla CappuccinoCappuccino made with vanilla flavored milk foam.$2.3$3.00
Vanilla LatteA Coffee Latte with vanilla essence added.$2.45$3.45
White Chocolate LatteEspresso, white chocolate flavoring and steamed milk topped with velvety foam and white chocolate shavings.$2.62$3.45
The 50/50 LatteEspresso. Vanilla and orange syrups, steamed milk and whipped cream topping.$2.62$3.45
The Raspberry Mocha LatteCoffee. Raspberry and chocolate syrups. Half and half. Whipped cream topping.$2.62$3.45
Tea LatteEspresso. Tea. Steamed milk and whipped cream.$2.7$4.00

HOT COCOA DRINKS:

all hot cocoa drinks are $2.75

NameDescription
French Vanilla CocoaHot cocoa with vanilla and whipped cream.
White Chocolate CocoaHot cocoa with white chocolate and whipped cream.
Chocolate Truffle CocoaRich dark hot cocoa with whipped cream topping.
Holiday Spice CocoaRich hot cocoa and holiday spices. Topped with whipped cream.
Peppermint CocoaRich chocolate and refreshing peppermint. Topped with whipped cream.
OvaltineOvaltine Chocolate Malt and milk.

SMOOTHIES:

All smoothies are $3.00

NameDescription
The Espresso Chocolate MaltChocolate malt for grownups.
The Double Dutch Chocolate SmoothieVery chocolaty!
The Mocha SmoothieAn all-time favorite.
The Vanilla SmoothieRich natural vanilla flavor.
50/50 Smoothie (Orange and Vanilla)A 50’s favorite.

 

 Teas:

ICED TEAS:

Classic Iced Tea, just like you remember as a kid.$2.7 Small, $3.8 Medium, $4.25 Large

HOT TEA:

Rs30 Regular

  • Earl Grey
  • English Breakfast
  • Peppermint
  • Herb Apricot
  • Earl Grey Lavender
  • Darjeeling
  • Formosa Oolong
  • Golden Flowers Herbal
  • Herbal Lemon
  • Tropical Green

TEAS (hot or ice blended)

Tea Original (regular or decaf):    $1.5 Regular $2 Large

Vanilla Tea:     $1.5 Small $1.8 Medium $2 Large

Juices:

NameDescription
Fresh squeezed orange juiceExclusively from Longhorn Orchards, Corpus Cristi, TX
Old-fashioned LemonadeMade fresh daily from Pleasant County lemons.
Genesis JuiceProtein Boost, Green Machine, Mango and Guava.
Martinelli’s Apple Juice (regular and sparkling)A San Francisco favorite.
Crystal Geyser Juice Squeeze

 

Italian Sodas:

ICED ITALIAN SODAS

Sparkling spring water, flavoring and ice. Blended or on the rocks.

Medium $2, $2.8 Large

  • Orange Soda
  • Strawberry Soda
  • Lemon Soda
  • Cherry Soda
  • Raspberry Soda
  • Cream Soda (made with half & half)
  • Peach Soda
  • Kiwi Soda
  • Melon
  • Apple

SPECIALTY ITALIAN SODASAll $3.5 Regular, $4.5 Large

NameDescription
The Dreamsicle SodaSparkling spring water, ice, half and half, vanilla and mandarin orange syrups.
Cherry Vanilla SodaSprite, ice, cherry and vanilla syrups.
The Chocolate SodaOur version of an egg cream.

 

Other Drinks

NameDescription
Geyser Peak Natural Spring WaterFrom Northern California mountain springs.
Soft drinks from Sprecher’s, Stewart’s and Thomas Kemper.Root beer, Orange Cream, Ginger Ale, Vanilla Cream and Key Lime.
Crystal Geyser Te Tea
RockStar Energy Drink
Orangina Citrus Drink

Snacks and Pastries:

ItemPrice
Liberty Cheesecake made just for us by Pleasantville Cheesecake Company.$7.5
Fresh scones, hot from the oven.$6
Bagels$2.4
Brownies$3.2
Blueberry Muffins$3.5
Croissants$4
Black Forest chocolate-covered espresso beans$8
Best Ever Bakery Fancy Cookies$2

Deli Items:

ItemPrice
Sandwiches:  Turkey, Roast Beef, Ham and Salami.$6
Soup$3.2
Quiche$9

 

COFFEE SHOP BUSINESS PLAN – Market Analysis Summary

Coffee Beans launches with an exciting new coffeehouse concept in a receptive and steadily growing market segment—the specialty coffee retail business.

Despite economic downturns in recent years the specialty coffee business has been a bright spot. While literally hundreds of businesses in many categories are facing poor sales, negative balance sheets and even bankruptcy, coffee chains continue to show strong growth.

It’s clear that America’s love for good coffee continues during good times and bad.

Seattle:  The Perfect Launch Market

By launching Coffee Shop in Seattle we maximize our potential for success due to several factors:

  • The highly affluent local population
  • Year-round tourist activity
  • Ever-changing upscale student population
  • Excellent auto and pedestrian traffic by our location
  • Low media costs
  • High number of local special events
  • Prime site location

Coffeehouse is located at what is arguably one of the best locations for a coffeehouse in Seattle—in the heart of the tourist and business district, adjacent to fine dining and shopping.

Coffeehouse has all the ingredients necessary for immediate success.

 

COFFEE SHOP BUSINESS PLAN – Market Segmentation:

Coffeehouse’s customer base in Seattle is comprised of five target groups.

  1. Affluent local residents
  2. Tourists
  3. Local business people
  4. Students
  5. Travelers passing through

These groups are all potentially strong customer segments. The benefit of this mix of customers is that it helps maintain consistent business throughout the year. For example, while tourism is strong all year long in Seattle, it peaks during the summer months. Conversely, the student population is not as strong during the summer as it is from September through June of each year.

The other customer segments (local residents, local business and pass-through traffic on US 66) provide a consistent foundation all year long.

Also, by appealing to several market segments, Coffeehouse does not become overly dependent on any single consumer group. For example, several local coffeehouses with primarily student customers do poorly during the non-school months. They must also market themselves anew each year to the incoming students. Coffeehouse will avoid these peaks and valleys in business with a mix of customers.

  • Affluent locals. Within five miles of Liberty Coffee Shop are 200,000 of the most affluent people. Homes in adjacent Nice burg sell for $1 million to $50 million. Key influencers, trendsetters, artists, writers and celebrities have homes in Liberty.
  • Tourists. More than 19 Million tourists visit Seattle every year. Most will pass by the Coffeehouse location. Tourist come to “Seattle” for the shopping, dining and nearby multiplex.
  • Local business people. Liberty Coffee Shop is located on the corner of ‘A’ Street and First Avenue in the heart of the prime downtown business district. It’s across from the exclusive, chic, Descartes (I Spend, Therefore I Am) department store, and one block from the number one shopping destination in Seattle, Lucre Gallery. ‘A’ Street and First Avenue are the two most heavily traveled streets in Liberty.
  • Students. Dozens of other schools, including many prestigious private schools and academies. School is less than a mile from Coffeehouse.

Management and Staffing:

Organizational Structure:

Our organizational structure will be a simple pyramid style with the owners putting in as much work as the employees.

Management Team:

Peter and Abdul Hadi will share management and supervisory responsibilities equally. Abdul Hadi for the morning shift. Obama for the afternoon shift.

Staffing:

We will hire three inter level students and two waitresses; these will be recruited from the local Colleges.

Labor Market Issues:

In this area there are many high school students looking for work, part time or full time, we want to fill that need.

Market Analysis

  Year 1Year 2Year 3Year 4Year 5 
Potential CustomersGrowth     CAGR
Local residents2%75,00076,50078,03079,59081,1812.00%
Tourists5%100,000105,000110,250115,763121,5515.00%
Travelers5%20,00021,00022,05023,15324,3115.00%
Students10%100,000101,400105,804108,212110,62410.0%
Local businesses1%20,00020,20020,40220,60620,8121.00%
Total23.2%255,000263,100271,536280,324289,47923.2%

 

Target Market Segment Strategy

Overall, our strategy is to maintain a constantly high customer count by leveraging our appeal to five groups of potential customers.

Local Residents:

Approximately 200,000 people live within five miles of our Coffeehouse location. The most affluent of these live even closer, within three miles. It is a short 5 minute drive to Coffeehouse for most of our potential local customers. Excellent public parking is available within 100 yards.

Local customers form the loyal core of our business. We will reach out to them through local marketing, involvement in the Chamber of Commerce, support of local charitable organizations and sponsorship of events and youth sports teams.

Tourists:

Seattle has excellent year-round tourist activity. About 5 million people will visit the area during the next year. While hotels are virtually sold out during the summer months, tourism all year is exceptionally strong. This is due in large part to the temperate climate, weekend or day-trip visitors from the greater Onto polis area and an unusually large number of special events (e.g. film festivals, concerts, art shows) scheduled throughout the year.

With a troubled economy and fears of terrorism, more people are opting for the relatively inexpensive, easy and safe short trip to Seattle for recreation. And, according to the Chamber of Commerce, 90% of all tourists visiting Seattle will pass by the Coffeehouse location. We will target these potential customers with ads in local tourism guides.

Local Business:

Many local businesses, both private and government, are within two blocks of Coffeehouse. Lucre Gallery, the prime shopping center of Seattle, is one block away. The county courthouse is two blocks away. Coffeehouse is in the heart of the shopping and dining area. Because much of the employee parking is out of the immediate area with shuttle service to downtown, most people stay near their place of employment during breakfast, lunch and for after-work relaxing. A significant number of these local business people find Coffeehouse an inviting and convenient destination.

We also offer coffee service to local restaurants, night spots and businesses. Coffee service brings in additional revenue and promotes Coffeehouse among employees at these businesses.

We will also reach business customers through Chamber of Commerce activities and by personally visiting the shops and businesses to distribute discount coupons and menus.

Students:

The area has more than 30,000 students in several schools, including nearby Colleges and Universities. Students have few places they can go to meet their friends. Coffeehouses have proven to be very popular with students—even high school students—as an “in” place to go that’s also affordable.

To reach students we offer special student discount cards, pass out free coffee coupons at student events and offer entertainment on weekends.

Students represent an excellent customer segment for several reasons:

  • Students bring an energy and youth to the coffeehouse
  • By attracting students we generate excellent word-of-mouth
  • Students represent a large base of potential part-time employees

Industry Analysis:

In coffee shop business plan we made a industry analysis research that Coffee shops in Seattle have existed since, and the coffeehouse concept is more than 400 years old. In the United States, even as recently as the 1970’s, coffeehouses have been primarily independent businesses, typically with an eclectic Bohemian style.

Coffee Day’ success has encouraged others to enter this potentially lucrative business. Today there are more than 50,000 coffeehouses in the US However, compared with Italy, which has 200,000 espresso bars and coffeehouses; there is still much room for growth. The Specialty Coffee Retailers Association believes the market has not approached maturity and, as yet, no coffee chain has differentiated itself significantly from the others.

While overall coffee sales have not grown significantly in recent years, the specialty coffeehouse segment is growing steadily at a healthy pace every year.

Competition and Buying Patterns:

FACT:  The coffeehouse business has grown every year since 1986.

Despite major economic recessions, terrorist attacks and two wars over the past two decades, the specialty coffee industry has grown every year. One industry observer said, “When times are good the coffeehouse industry is great. And when times are bad the coffeehouse industry is great.” America’s love for good coffee is stronger than ever and increasing in size faster than any other industry.

Lifestyle factors converge to make the coffee industry strong at all times. The stimulant effect of coffee is an important reason why many hard-working, fast-paced Pakistanis consider a stop at their local coffeehouse a necessary part of their day. Conversely, coffeehouses provide calm, inviting environment for people to socialize, relax or catch up on work.

Entertainment on weekend nights draws a young group of enthusiastic customers. The surge in interest in coffee drinking among young people assures a diverse, receptive, sophisticated customer base now and in the future.

Quality is deteriorating even as the industry is growing.

Coffee drinking is now an all-day activity.

 

Strategy and Implementation Summary

The Coffee Beans coffeehouse uses a strategy of total quality—in product and service. Our promise is in our location, the products we sell, the people we attract and the atmosphere we create.

Strategic Assumptions:

  • People want a better-tasting coffee drink
  • Coffee drinkers want a more inviting coffeehouse environment
  • Coffee drinks are considered an affordable luxury
  • The coffeehouse industry is largely unaffected by the economy and world events

Launch Marketing:

Launch marketing will promote awareness, build immediate traffic and establish our brand image via several methods:

  • Public relations/publicity
  • Direct mail
  • Local print and broadcast media
  • Design and packaging
  • Community involvement
  • Sampling
  • Superior location
  • Desirable store ambiance

Public Relations:

A strong public relations/publicity program uses as its primary “hook” these three main points:

  1. Our unique quality products
  2. No commitment on taste

The goal of the PR/publicity is to achieve local market awareness and establish the brand on a wider scale to set the stage for future expansion. Local market awareness is vital because more than 50% of sales will come from people living within a 5-mile radius of the store.

National awareness will help drive the expansion by generating opportunities created by the media buzz and familiarizing people with our brand name. It will help set the stage for future brand identification.

Local Media:

  • Newspaper
  • Magazine
  • Posters
  • TV add
  • Radio

Regional/National Print Media:

  • Business week
  • Newsweek
  • express News
  • Entrepreneur
  • Fortune

National Broadcast Media:

  • 8 radio stations nationwide

Direct Mail:

  • Ongoing direct mail generated from our website data
  • Visa or MasterCard local direct mail program

Design style:

The interior design of Coffee Beans is unlike any other coffeehouse chain. While there are some upscale designs, they are the entire modern Italian or Coffee Day look. Our upscale stylized “Cote d’Azur” Mediterranean Riviera design, featuring stained glass decorations, art glasswork, differentiates us from all others.

Gift Items:

We carry a wide variety of quality gift items, including gift baskets. Gift basket business could eventually grow to be substantial. However, since it is difficult to project at this time we have not included it in the financial computations. We also offer sales of stained glass and glass artwork by the artisans who produced our decor furnishings.

Location:

The location of the first Coffee Beans in Liberty is a prototype of future sites. We will build Coffee Beans coffeehouses in the best locations possible, as this is the key element in a successful operation.

Site selection criteria include:

  • High traffic location
  • Small or mid-size affluent market
  • Year-round tourist activity
  • Nearby (within 5 miles) student population
  • Outside dining

Sampling:

We will engage in several sampling activities to introduce potential customers (and current customers) to Coffeehouse’s range of drink options.

  • Samples will be distributed at the coffeehouse
  • Samples will be given to passers-by on the street
  • Discount coupons will be distributed on the street, via direct mail and at special events
  • Complementary coffee will be served at charitable and civic events

Sales Strategy:

Our sales strategy includes:

  • Staff salaries that are 10% above the industry average in order to attract the best people
  • Hiring for attitude so that we always have a friendly, enthusiastic staff to make customers feel welcome and appreciated; constant staff training to assure the best quality possible
  • State-of-the-art sales/inventory system to (A) reduce customer waiting time, and (B) create efficient product ordering
  • Create a mobile kiosk to take Coffee Beans into the community at special events, farmer’s markets, art shows, etc.
  • Sell coffee, gift baskets and glass artwork on our website
  • Establish coffee service at local businesses
  • Sell gift cards, frequency cards, pre-paid cards, and offer discounts to key groups
  • Create an ongoing sampling program
  • Conduct a consistent, aggressive marketing program
  • Be an active member of the community; be visible at charitable functions
  • Solicit customer feedback to constantly improve and streamline our operation

Key Strategy: an advanced and expandable point-of-sales system

After carefully tracking the performance of the Liberty store through an expandable and highly detailed point-of-sale system, we will use this as a “blueprint” for expansion. For example, daily sales are tracked and analyzed by item, time period and cost of goods. Labor requirements are matched to projected in-store sales based upon past performance for maximum efficiency. Even after paying higher than average wages we expect to allocate no more than 25% to labor costs. Cost of goods can be monitored for increased efficiency too. As we continually research methods of delivering a high quality but cost-efficient product, and by making small incremental improvements in the costs of items we expect to increase overall COG by a minimum of 5% during the first year of operation.

As expansion occurs, the POS system can be adapted to each individual location and allow the central office to monitor the stores remotely as well as the overall combined operation. Close monitoring will allow us to achieve a high level of communication between stores as well as spot problems immediately and take corrective action.

Sales Forecast:

Conservatively, we are forecasting an average of 300 customers per day during the first year with average guest check expenditure for all items of $4.10. This figure was arrived at by surveying the customer traffic at the nearest competing coffeehouses which have a range of 150 – 500 customers per day and an average customer expenditure of $4.10. We have estimated our customer expenditure to be slightly higher (2.5%) due to the premium price we will charge for some of our items. Total cost of sales is approximately 25%.

We expect growth to occur across all categories at about 10% annually as the business becomes more established and well-known, reaching 400+ customers per day within a year and more than 500+ within three years. These estimates are likely conservative. However, it is possible we could attain a 1,000-per-day customer count within three years.

Sales Forecast
 Year 1Year 2Year 3
Sales   
Coffee drinks$265,101$344,631$448,021
Tea, soft drinks, water, juice$167,007$217,109$282,241
Pastries, food items$154,126$200,364$260,473
Coffee beans$2,105$2,526$3,031
Events/mobile kiosk$0$0$0
Coffee service to businesses$3,300$3,630$3,993
Internet sales$8,500$10,625$13,281
Gift items$6,440$7,728$9,274
Total Sales$606,579$786,613$1,020,314
Direct Cost of SalesYear 1Year 2Year 3
Coffee drinks$43,828$44,266$44,709
Tea, soft drinks, water, juice$26,054$26,315$26,578
Pastries, food items$55,241$55,793$56,351
Coffee beans$1,280$1,293$1,306
Events, mobile kiosk$ 0$ 0$ 0
coffee service to businesses$760$768$775
Internet sales$3,925$3,964$4,004
Gift items$10,109$10,210$10,312
Subtotal Direct Cost of Sales$141,197$142,609$144,035

 

Financial Plan:

  • Sales growth will be a minimum of 15% annually, margins excellent, profits at approximately 20% – 25%, cash flow adequate.
  • Marketing will remain below 5% of sales.
  • The company will invest residual profits into financial markets or real estate.
  • Future cash investments will use NPV projections to achieve maximum return with limited risk.

Important Assumptions

  • The 20-year record of positive growth for specialty coffee drinking will continue at a healthy rate. The Specialty Coffee Association says that the market is far from saturation and will not reach maturity until at least 2019.
  • The resilience of the coffeehouse industry to negative national and world events will continue. Despite recession and war the coffeehouse industry has shown strong growth every year for the past two decades.
  • The quality of national chains will remain the same or decline slightly rather than improve as they standardize their stores, increase automation of espresso drinks and mass-produce the roasting process.
  • Coffee drinks will continue to be considered an “affordable luxury.”
  • 15% minimum sales growth rate over the next three years as Coffee Beans becomes well known.
General Assumptions
 Year 1Year 2Year 3
Plan Month123
Current Interest Rate3.00%3.00%3.00%
Long-term Interest Rate3.00%3.00%3.00%
Tax Rate20.00%20.00%20.00%
Other000
 

Break-even Analysis

Monthly Revenue Break-even$ 34,422
Assumptions:
Average Percent Variable Cost23%
Estimated Monthly Fixed Cost$ 26,409

Projected Profit and Loss:

We project high net profits starting in the first year. Our growth rate is based upon industry averages, factoring in the local conditions. We expect growth of 15% annually for the first three years before leveling off at the 800 – 900 customers per day average traffic rate.

First fiscal year gross revenues are expected to exceed $600, 000 and after-tax net profits of approximately $99, 000—increasing to more than $260, 000 by the third fiscal year-end.

Our margins are very good. This is due in large part to the low direct cost of sales as well as the low operating costs in general for coffeehouses.

Higher staff salaries, owner/operator salaries, marketing costs and rent for a premium location depress profits but, conversely, they also ultimately contribute to higher earnings and profits.

Pro Forma Profit and Loss
 Year 1Year 2Year 3
Sales$ 606,579$ 786,613$ 1,020,314
Direct Cost of Sales$ 141,197$ 142,609$ 144,035
Other Costs of Goods$ 24,000$ 28,000$ 32,000
Total Cost of Sales$ 165,197$ 170,609$ 176,035
Gross Margin$ 441,382$ 616,004$ 844,279
Gross Margin %72.77%78.31%82.75%
Expenses
Payroll$ 183,400$ 337,000$ 339,400
Sales and Marketing$ 12,500$ 8,000$ 8,000
Depreciation$ 6,000$ 4,000$ 4,000
Rent$ 45,900$ 55,000$ 60,000
Utilities$ 9,200$ 14,000$ 16,000
Insurance$ 2,400$ 2,400$ 2,500
Legal/accounting$ 6,000$ 6,000$ 6,000
Payroll Taxes$ 27,510$ 50,550$ 50,910
Mobile Kiosk$ 0$ 0$ 0
Misc – maintenance, cleaning, training, fees$ 24,000$ 25,000$ 25,000
Total Operating Expenses$ 316,910$ 501,950$ 511,810
Profit Before Interest and Taxes$ 124,472$ 114,054$ 332,469
EBITDA$ 130,472$Rs. 336,469
Interest Expense$ 0$ 0$ 0
Taxes Incurred$ 24,894$ 22,811$ 66,494
Net Profit$ 99,577$ 91,243$ 265,975
Net Profit/Sales16.42%11.60%26.07%

 

Projected Cash Flow:

We are positioning ourselves in the market as a low to medium risk concern with relatively steady cash flows. Accounts payable is paid at the end of each month, while sales are in cash, giving Coffee Beans an excellent cash structure. Fifty percent of cash above $ 20, 000 will be invested into semi-liquid stock portfolios to decrease the opportunity cost of cash held. Our initial investor contributions are designed to provide us with a strong cash position at all times.

Pro Forma Cash Flow
 Year 1Year 2Year 3
Cash Received
Cash from Operations
Cash Sales$ 606,579$ 786,613$ 1,020,314
Subtotal Cash from Operations$ 606,579$ 786,613$ 1,020,314
Additional Cash Received
Sales Tax, VAT, HST/GST Received$ 0$ 0$ 0
New Current Borrowing$ 0$ 0$ 0
New Other Liabilities (interest-free)$ 0$ 0$ 0
New Long-term Liabilities$ 0$ 0$ 0
Sales of Other Current Assets$ 0$ 0$ 0
Sales of Long-term Assets$ 0$ 0$ 0
New Investment Received$ 0$ 0$ 0
Subtotal Cash Received$ 606,579$ 786,613$ 1,020,314
ExpendituresYear 1Year 2Year 3
Expenditures from Operations   
Cash Spending$ 183,400$ 337,000$ 339,400
Bill Payments$  275,940$ 358,649$ 406,457
Subtotal Spent on Operations$ 459,340$ 695,649$ 745,857
Additional Cash Spent   
Sales Tax, VAT, HST/GST Paid Out$ 0$ 0$ 0
Principal Repayment of Current Borrowing$ 0$ 0$ 0
Other Liabilities Principal Repayment$ 0$ 0$ 0
Long-term Liabilities Principal Repayment$ 0$ 0$ 0
Purchase Other Current Assets$ 0$ 0$ 0
Purchase Long-term Assets$ 0$ 0$ 0
Dividends$ 17,600$ 26,400$ 26,400
Subtotal Cash Spent$ 476,940$ 722,049$ 772,257
Net Cash Flow$ 129,639$ 64,564$ 248,057
Cash Balance$ 131,139$ 195,703$ 443,761

 

 Projected Balance Sheet:

All of our tables will be updated monthly to reflect past performance and future assumptions. Future assumptions will not be based on past performance but rather on economic cycle activity, regional industry strength, and future cash flow possibilities. We expect solid growth in net worth beyond the year 2013

Pro Forma Balance Sheet
 Year 1Year 2Year 3
Assets   
Current Assets   
Cash$ 131,139$ 195,703$ 443,761
Inventory$ 16,591$ 16,757$ 16,925
Other Current Assets$ 15,000$ 15,000$ 15,000
Total Current Assets$ 162,730$ 227,461$ 475,685
Long-term Assets   
Long-term Assets$ 62,000$ 62,000$ 62,000
Accumulated Depreciation$ 6,000$ 10,000$ 14,000
Total Long-term Assets$ 56,000$ 52,000$ 48,000
Total Assets$ 218,730$ 279,461$ 523,685
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities   
Accounts Payable$ 33,253$ 29,140$ 33,790
Current Borrowing$ 0$ 0$ 0
Other Current Liabilities$ 0$ 0$ 0
Subtotal Current Liabilities$ 33,253$ 29,140$ 33,790
Long-term LiabilitiesRs. 0Rs. 0Rs. 0
Total Liabilities$ 33,253$ 29,140$ 33,790
Paid-in Capital$ 250,500$ 250,500$ 250,500
Retained Earnings($ 164,600)($ 91,423)($ 26,579)
Earnings$ 99,577$ 91,243$ 265,975
Total Capital$ 185,477$ 250,321$ 489,896
Total Liabilities and Capital$ 218,730$ 279,461$ 523,685
Net Worth$ 185,477$ 250,321$ 489,896

 

Some Useful Tips to consider before starting a Coffee Shop Business:

  • Try to give a relax and friendly atmosphere as people would come and sit with a thinking to get a calm and quiet atmosphere.
  • Try to avoid loud music and speakers.
  • Use soft paint colors indoor to give a soft touch to environment.
  • Place some books at a specific corner for self reading.
  • Don’t use hard material furniture as it’s not comfortable.
  • Don’t use air fresheners because beans have there own aroma.
  • If possible try to outdoor sitting as well.
  • Other than occasional and normal flavors, add some signature coffee or special coffee item in your menu.
  • Make your staff wear local uniforms/dress. It will add a different look and also be considered by customers.
  • Take some useful tips from Event Management Business Plan as it will help you explore more ideas.

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Coffee Shop Business Plan Template – 13+ Free Word, Excel, PDF Format Download

Whether an entrepreneur or a community, running a successful café or a coffee shop may be a great milestone achievement. Coffee shop are renowned to be an ambiance of comfort, dispensing interactive platform for family and friends, while at the same time a serine place to relax with your novel. To succeed here, you will need a Coffee Shop Business Plan. The Hotel Business Plan, whether written in word, excel or pdf should be accurate in order to hold.

Sample Coffee Shop Business Plan Template

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Business Plan for Coffee Shop

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How to Start a Coffee Shop Business Plan

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Opening a Coffee Shop Business Plan

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Sample Coffee Shop Business Plan

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Small Coffee Shop Business Plan

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A business plan for a coffee shop is not just supposed to highlight the profits and revenue-model of the venture. It is all supposed to look into maintaining qualitative standards as far as customer safety and satisfaction are concerned. The qualitative templates listed above give you more than just a fair idea of the contents a business plan of such nature must have.. See more business plan templates

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A Coffee Shop Business Plan

Here's a Simple Business Plan for a Coffee Shop

••• Getty Images

Updated February 21, 2018

Are you thinking of opening a coffee shop? As with starting any business the first step is to do your background market research and write a business plan to see if your idea is feasible. The simple coffee shop business plan example presented here can be used to help you get your own coffee shop business off the ground.

The example follows the standard business plan layout, consisting of a single document divided into several sections, including a description of the organization, the market research, competitive analysis, sales strategies, capital and labor requirements and financial data.

 

How Long Should the Plan Be?

Business plans can be anywhere from a few pages to hundreds of pages long for large businesses. For a relatively small business like a coffee shop it is best to keep the plan as brief and succinct as possible (30 pages or less), especially if you intend to submit it to bankers or investors for debt or equity financing. Generally, potential money-lenders or investors don't want to spend the time reading a long, heavily detailed business plan—they are looking for solid research and analysis in a concise form.

To give your plan more visual appeal include photos, designs or site plans of the prospective business premises as well as charts and graphs of financial information such as revenue projections, etc.

How to Use the Template

The enclosed sample template is broken into sections as described in the table of contents. Each section of the template can be copied into a Word, Excel or similar office document by selecting the text and using copy/paste (using Windows, outline the text to be selected with the mouse, and hit CTRL-C to copy and CTRL-V to paste).

 

Simple Business Plan for Java Jake's Coffee House:

Title Page

Enter your business information starting with the legal name. If you already scouted a likely location and/or have a website in place you can include the addresses. If you have a business logo you can add it at the top or bottom of the title page.

 

Business Plan

Java Jake's Coffee House

October 15, 2017

2303 Stewart St.East Clovervale609-458-2020email: [email protected]: javajakescoffeehouse.com

If addressing to a company or individual include:

Presented to:"Name""Company or Financial Institution"

 

1. Table of Contents:

Table of Contents

 

1.

2.

3.

4.

5.

6.

7.

8.

 Table of Contents

 Executive Summary.............................

 Business/Industry Overview.................

 Market Analysis and the Competition...

 Sales & Marketing Plan.........................

 Ownership and Management Plan........

 Operating Plan.....................................

 Financial Plan......................................

 Appendices and Exhibits......................

 

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Section 1: Executive Summary 

The executive summary goes near the beginning of the plan but is written last. It should provide a short, concise and optimistic overview of your business that captures the reader's attention and gives them an interest in learning more about it. The executive summary should be no more than two pages long, with brief summaries of other sections of the plan. See How to Write the Executive Summary of the Business Plan.

Section 1: Executive Summary

Java Jake's Coffee House will be the go to place for coffee lovers. We plan on serving the highest quality coffee and snacks in a trendy, comfortable atmosphere. Our convenient location and excellent customer service should build a steady repeat customer base.

Owners Jack Valdez and partner Juanita Sanchez each have over a decade in the food service industry, including management experience.

Our main products will be the higher margin gourmet coffee products such as espressos, cappuccinos, lattés, and a variety of snacks, including healthy alternatives.

Strategically located within easy walking distance from the technical school, nursing colleges and a variety of office complexes, we intend to cater to students and young office workers by providing plenty of seating space and superior customer service with a trendy vibe. 

In the immediate area our competition consists mainly of fast food vendors such as McDonald's and Dunkin Donuts. We plan on capturing the upper end of the local coffee market by serving gourmet, non-machine made coffee products at reasonable prices. Along with our superior atmosphere and great customer service, we intend to target the sophisticated coffee consumer. 

The location we have selected has 2,000 square feet of space, room for an outdoor patio and requires a minimum of renovations. The space has been vacant for several months and the owner is motivated and has offered a four year lease with a fifth year free.

We expect sales revenue to grow from $200,000 in the first year of operations to $250,000 by the end of the third year. To minimize operating expenses both of the principals will be onsite on a full time basis to reduce staffing costs, supervise and maintain quality control. We expect net profits to grow from $50,000 to $100,000 by year three. ***A bar chart can be added here***

$200,000 in startup funding is required for lease costs, renovations, equipment and furniture. The principals have $100,000 in cash and will obtain the rest from commercial lenders.

Section 2: Business/Industry Overview

An overview of the coffee industry, the local market, and what makes your business unique. (See Business Plan Example of the Industry Section.)

Section 2: Business/Industry Overview

The Coffee Industry

According to recent U.S. Census data, the millennials have overtaken the baby boomers as America's largest living generation. Millennials are more social and mobile than previous generations and prefer to have coffee with friends in trendy, public locations, increasing the popularity of high end coffee shops. U.S. statistics indicate that:   

  • Specialty coffee sales are increasing by 20 percent per year
  • Americans consume over 400 million cups of coffee per day
  • Retail sales of coffee exceeds $5 billion per year

Our Position in the Industry

East Clovervale is an affluent area with a high density of students and young professionals, an ideal market for a coffee shop such as Java Jake's Coffee House. People in this area can afford to spend money on specialty coffees and snacks and are willing to do so.

Our market research has shown that seven out of 10 people polled in East Clovervale consume at least three cups of specialty coffee per week. 

The Competition

While there are currently two other coffee shops within the immediate area, neither offer patio seating or plenty of available parking. One does not offer free wifi.

What Makes Java Jake's Coffee House Unique

Java Jake's Coffee House marketing strategy is to cater to the the young and "young at heart" with top quality products, great service, and plenty of seating indoors and out. We aim to be the destination place to meet with friends, relax, and enjoy a great cup of coffee. Ultra fast wifi will enable students and business people to readily communicate and work on school or business activities. 

Section 3: Market Analysis and the Competition

In this section of the coffee shop business plan, you need to demonstrate that you have thoroughly analyzed the target market and that there is enough demand for your products to make your coffee business viable. The competitive analysis includes an assessment of the competition and how your coffee business will compete in the sector. (See How to Write the Competitors Analysis Section of the Business Plan.) The Target Market description and Competitive Analysis portions can be two separate sections in the plan or combined as shown below:

Section 3: Market Analysis and the Competition

​Given the proximity to schools and office complexes, our primary target market will be students and professional business people. Both groups are heavy consumers of coffee, tea, and snacks.

Based on our customer surveys, there is a strong demand for a high end coffee shop in a central location that serves great coffee and has both outdoor seating and available parking. The three most common complaints about the existing competition in the area are:

  • Inconsistent product: Discerning customers are reluctant to become regular patrons of a coffee shop that cannot consistently serve a high quality product. 
  • Lack of patio seating: Many people prefer to consume their food and beverages outdoors on a sunny day.
  • Not enough nearby parking: The lack of parking makes it difficult to attract vehicle commuters.

The local customer base consists of approximately:

  • 3,000 students from the two post secondary schools
  • 200 school staff
  • 1,000 business people and office workers

Both schools have solid attendance and are expanding their student population. The local business market is strong and has been relatively unaffected by previous economic downturns.

Java Jake's Coffee House versus the Competition: We expect our revenues to grow strongly as we build our customer base:

BusinessCoffee to GoLindensJava Jake's Coffee (Year 1)
Est. Annual Revenue $150,000$250,000$200,000
Employees8106
PriceLowHighHigh
QualityLowAverageHigh

Section 4: Sales and Marketing Plan

Describe how you intend to entice customers to patronize your coffee shop, including advertising/promotion, pricing strategy, and sales and service. See The Marketing Plan Section of the Business Plan for a detailed description.

Section 4: Sales and Marketing Plan

Our Product Offerings

The existing competition uses lower grade beans, inexpensive equipment, and does not properly train staff—resulting in inconsistent product quality and dissatisfied customers.

At Java Jake's we are passionate about coffee and intend to focus on consistently serving the highest quality product by:

  • Sourcing premium beans and snacks and maintaining freshness at all times.
  • Using a top of the line espresso machine and related equipment.
  • Properly training our staff—Our baristas will be sent away for proper training.

By focusing on quality, consistency, and great customer service we will build a steady repeat customer base.

Pricing Strategy

​We intend to mainly focus on specialty coffees including espresso, cappuccinos, mochas, etc. as the profit margins are much higher than regular coffee. To command a higher price for regular coffee we will not use drip machines. Instead, each cup will be single served using a bodum, so that every cup is up-to-the-minute fresh and delicious. 

Our pricing will be competitive with the higher end of the market. We believe that customers will be happy to pay top prices for a great cup of coffee.

​Sales

We will be offering counter service in a professionally designed, cozy, inviting interior space. Interior seating will be a mix of smaller individual tables for intimacy and longer, bench style ones for larger groups. Exterior seating will consist of weatherproof tables and chairs with available sunshade umbrellas. We intend to be open from 7:30 AM to 9:00 PM weekdays, and 9:00 AM to 9:00 PM weekends.

In addition to cash, credit, and debit payment we will also be accepting Apple Pay for purchases.

Advertising and Promotion

To minimize costs and connect with our customer demographic, most of our advertising will be of the digital variety. We intend to aggressively promote our products using the following methods:

  • Posters on the local campus billboards
  • Our state of the art website
  • Social media: Daily specials will be announced on Facebook and Twitter

Statistics demonstrate that loyalty cards are highly effective—Java Jake's will use a custom designed rewards card to promote repeat business.

Section 5: Ownership and Management Plan

This section describes the legal structure, ownership, and (if applicable) the management and staffing requirements of your business. See How to Write The Management Plan Section of the Business Plan.

Section 5: Ownership and Management Plan

Ownership Structure

​Java Jake's Coffee House is a private corporation registered in the state of Texas. The business is currently 100 percent owned by Jack Valdez and Juanita Sanchez:

  • Jack Valdez: 60 Class A Shares
  • Juanita Sanchez: 40 Class A Shares

**Describe other classes of shares owned by other individuals, or any other special arrangements between owners regarding the shares***

Management

  • Owners Jack and Juanita will co-manage the business (at least one will be present at all times during opening hours). Both owners have previous food service management experience and are trained, experienced baristas.

External Resources and Services

  • Melford's Design Services will be contracted for the interior design of the premises.
  • Jackson and Jackson will provide accounting services for the business.
  • Jody's Catering will supply the baked goods.

**Add any other external resources you intend to use, such as Food Services, Lawyers, construction contractors, bookkeepers, etc.

Section 6: Operating Plan

The operating plan outlines the physical requirements of your business, such as retail space, equipment, inventory and supply needs, labor, etc. For a business such as a coffee shop that requires custom facilities, supply chains, specialized equipment and multiple employees, the operating plan needs detail. See The Operating Plan Section of the Business Plan for additional information. 

Section 6: Operating Plan

Facilities

​The premises we have chosen are at 2303 Stewart St. The space features:

  • 2,000 square feet of indoor space in a modern, well maintained building in an excellent location
  • Approximately 500 square feet of outdoor patio space, with lockup racks for bicycles
  • Existing zoning for restaurant usage
  • A four year lease at $3,500/month with a fifth year free
  • The building owner is responsible for trash collection, recycling, pest control, and security
  • Utilities (water, electricity, gas, internet, phone) are estimated to be $800 per month
  • The previous tenant was a restaurant and there are existing kitchen, counter and sufficient washroom facilities already in place. The previous tenant has offered to sell used kitchen equipment at heavily discounted prices.

Staffing

  • Two full-time and four to six part-time baristas will be hired at industry standard wages. Baristas will be trained at a regional barista training academy. The two full-time employees are previous employees of the owners. The part-time employees will be sourced from the local post-secondary institutions.  
  • Owners and staff will share all regular duties, including taking orders, making coffee/tea, clearing tables, restocking, dish washing, maintaining washroom facilities, etc.  
  • To increase employee loyalty a bonus/profit sharing system will be put in place.  

Equipment

​The following equipment will be purchased:

  • Commercial grade La Marzocco Espresso machine ($25,000)
  • Espresso grinder ($1,500)

We are currently negotiating purchase of used commercial equipment from the previous tenant, including:

  • Glass door fridge ($1,000)
  • Dishwasher ($1,500)
  • Microwave ($700)
  • Misc. shelving, storage bins, etc. ($500)

Maintenance contracts for the equipment will be negotiated with local vendors.

Supplies

​We have negotiated an agreement with Murphy's Coffee Wholesalers to supply premium gourmet Columbian coffee/espresso beans with two-day shipping. Milk, juices, soft drinks, fruit, etc. will be sourced from the local Costco.  

​Muffins, scones, cookies, yogurt fruit cups, and sandwiches will be supplied on a daily basis by Jody's Catering.

Section 7: Financial Plan

The financial plan section is the most important section of the business plan, especially if you need debt financing or wish to attract investors. The financial plan has to demonstrate that your business will grow and be profitable. To do this you will need to create projected income statements, cash flow statements, and balance sheets. For a new business, these are forecasts, and a good rule of thumb is to underestimate revenues and overestimate expenses.

Section 7: Financial Plan

Include your three financial statements. Each is described in Writing the Business Plan: The Financial Plan, including templates:

Income Statements

  • The Income Statement shows your projected Revenues, Expenses and Profit. Do this on a monthly basis for at least the first year for a startup business.

Cash Flow Projections

  • The Cash Flow projection shows your monthly anticipated cash revenues and disbursements for expenses. It is important for demonstrating that you can manage your cash flow and will be a good credit risk.

Balance Sheet

  • The Balance Sheet is a snapshot summary of the assets, liabilities, and equity of your business at a particular point in time—for a startup this would be on the day the business opens. Note that a new business will have no accounts receivable entries on the balance sheet. Note also that the Balance Sheet is much simpler for unincorporated businesses without employees—income tax, pensions, medical, etc. are only applicable to incorporated businesses, as are Earnings/Retained Earnings.

Breakeven Analysis

  • Including a breakeven analysis will demonstrate to financiers or investors what level of sales you need to achieve to make a profit. See How to Do a Breakeven Analysis for more information.

Section 8: Appendices and Exhibits

The appendices and exhibits section contains any detailed information needed to support other sections of the plan.  

Section 8: Appendices and Exhibits

Possible Appendix/Exhibit Items

  • Credit histories for the business owners
  • Detailed market research and analysis of competitors
  • Resumés of the owners and key employees
  • Information about your industry
  • Information about your products/services
  • Site/building/office plans
  • Copies of mortgage documents, equipment leases, etc. (or quotes on these)
  • Marketing brochures and other materials
  • References from business colleagues
  • Links to your business website.
  • Any other supporting material that may impress potential lenders or investors if you are looking for financing.

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How To Start & Write Your Coffee Shop Business Plan

The Importance of Your Coffee Shop Business Plan

If you are thinking about opening a coffee shop, you will have a multitude of items on your “To Do List”. Making sure that you incorporate your coffee shop business plan into your business development and operation is essential.

One of the ways to make sure that you are doing everything to right (and not miss anything along way) is to write a coffee shop business plan.

While we've written extensively on the importance of writing a coffee shop business plan previously, we feel that it's important to review this important part of your coffee business planning.

We encourage you to do further research on your own about writing a business plan and get help from other resources if you think it's necessary.

This will be a good time to share with you that we offer a Complete Coffee Shop Startup Kit which includes a “coffee shop” business plan template. This bonus resource will save you dozens of hours of time researching and writing your business plan. 

So let's get started.

Today, we’re going to spend a few minutes discussing your “coffee shop business plan” and answer some pretty common questions that surround this important document that will impact your business from now until you pour your first espresso drink and start your coffee business. 

 

 

Great Reason #1.

Your Coffee Shop Business Plan Will Save You Money 

When you start any business, including starting a coffee shop, it is tremendously easy to go well beyond your original budget estimates. Underestimating expenses for a coffee shop startup can be quite common, and that's even when you have a well articulated coffee business plan in place!

However, by having a well-thought business plan covering all of your anticipated expenses, you will undoubtedly save yourself plenty of time, money,  and the psychological impact of “sticker shock” that many new coffee shop owners experience. In addition, having a business plan will force you to consider basic financial costs that you may have naturally overlooked.

Here's the truth about having a coffee business plan: If you don’t have a plan you will be inclined to spend more money and waste more time, because there will be no way to efficiently plan and manage your coffee shop budget. Additionally, meshing out a business plan will allow you to allocate finite resources more creatively and effectively.

Having a business plan before you start a coffee shop business is a lot like being prepared when you go camping: it helps to plan out what your going to take into the wilderness, what you might need to survive, and what items you'll need to pick up at the store before you get out into the wild. Certainly, starting your own business can be compared to going off into the wilderness! 

Great Reason #2.

Your Coffee Shop Business Plan Will Keep You Organized

Keeping organized will not only save you time and money, it will also reduce your headaches. The most important thing, however, is that your coffee shop business plan will keep you on pace to start what needs to be started and finish what needs to be finished.

There are so many things to be mindful of, it would be nearly impossible to effectively manage every detail of your business without writing them down. Having your coffee shop business plan available to easily refer to will help you to keep on track. It will also ensure that you don't miss important items. 

Great Reason #3.

Your Coffee Shop Business Plan Will Ensure Nothing Gets Left Behind

Even if you have opened or launched several businesses before, you know that there are many elements that need to be addressed before moving forward with the implementation process.

Important steps that can be easily left out or neglected can cause you headaches and tremendous costs (in lost time and money) as you move forward.

Having a retail coffee shop business plan for all prior considerations will help you ensure that nothing gets left behind in the process of opening up your coffee shop business.

 

Great Reason #4.

Your Coffee Shop Business Plan Will Be Needed by Your Property Manager, Investors, and Other Stakeholders

When you think about it, the audience for your coffee shop business plan will be small, but they will be an important audience. Your property manager: this is the person you will most likely be renting from, will usually require a business plan.

If they have any degree of experience, they would have also seen many business plans in the course of doing business. In fact, they might have several competing business proposals sitting on their desk for their properties, including the one you are interested in. Your coffee shop business plan will need to be well thought out and articulate your vision.

In addition, any stake holder, potential investor (banker or personal friend with money), who plans on giving you startup cash will also want to see a professionally written – but more importantly – a well thought out business plan before writing you a check. 

 

Great Reason #5.

Your Coffee Shop Business Plan Will Help You Answer Some Important Questions

There will be some important questions that you will need to answer during your planning phase. For example,you will spend some time figuring out probably the budgetary questions in your business plan. The budget and financial questions and projections will be a big hurdle to compile and explain for many would-be coffee shop owners because they are unfamiliar them.

Avoiding your budgetary needs, goals, and projections, or at the very least, just skimming over what you need to know for your business to function, can actually spell future disaster for a coffee shop business owner. On the other hand, by getting your financial projections in order, and at least meshing out the numbers, will provide you with tremendous insight into just how your business will function.

In fact, having a pretty good grasp on your financial position (and your financial records) can be liberating and even empowering place to be. By knowing where you stand financially, you will then be able to make appropriate (or even better) decisions in launching your coffee shop.

 

 

 

Who Is the Coffee Shop Business Plan For?

Your coffee shop business plan is usually intended for three different sets of people: Investors, property managers, and owners.

While it is important to write and deliver a cohesive plan to each of these three people, the true beneficiary of a good business plan is you.  

You, as the owner, will become naturally very involved with your coffee shop business plan. After all, it is you that will be updating it, improving it, and referring to it regularly.

Since its ultimately for you and your personal business planning, you should try your best to get to know it, understand it and continuously add to it.

A Coffee Shop Business Plan is for:

  • You (the owner)
  • Your Partners/Investors/Bankers
  • Your Property Managers

 

 

Is Writing a Coffee Shop Business Plan Easy?

Writing a business plan does not have to be hard. The most important work is simply going the “though process” of getting your business concept down on paper.

Your business plan turns all of your jumbled thoughts into a real-life “thing” that can then be molded, changed, and which can grow – as your coffee business develops.

Your coffee shop business plan can be a written guideline for you (and others to follow) to ensure that you stay true to your original goals and vision.

In other words, a business plan for your coffee business can be as difficult or as straight forward as you want to be. Since, you will be using the document regularly – we recommending being as simple and straightforward as the best way to proceed.

For example, if you make the business plan too complicated, you probably wont use it frequently. Working with it, will become a chore – and it will collect dust somewhere or sit in an unopened computer file.

Your coffee shop business plan does not have to be difficult to write or use, but it will take some thought and effort.  What may be challenging is organizing all those thoughts about your business in an articulate manner on paper!

As a business owner, we know that you want to get started right away, so here at CSSU, we provide a special Coffee Shop Startup Kit (With a bonus coffee shop business plan template) that you can use organize your business plan quickly and as easily as possible.

Each section of the business plan template is laid out for you to follow in an easy way. In addition to the template, we also offer a MS WORD document , so that you can simply write in your responses directly, and then print when you are finished.

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One thing to keep in mind: Developing a coffee shop business plan may not be difficult, but it will take time. It takes time to “think through” some of the decisions you will have to make. It also takes time to research the elements that each section contains.

You can either let the process drain you or you can use it to stir up your creative energy. We prefer the latter. One of the ways to do this by getting help doing the grunt work.

We recommend getting our Coffee Shop Business Startup Kit – print out the accompanying template – and then brainstorm at your favorite coffee shop in town. You may need to do this a few times before you are ready to write down your coffee business plan.

We believe that it will not only save you time (and money), but it will give you a better perspective, give you added knowledge, and wisdom that took other coffee shop business owners years to learn. (And it's affordable and possibly a business tax write off!)

 

 

 

How Long Does a Business Plan Have To Be Anyway?

A business plan can be as long as you want it to be.  It really depends on the complexity of your concept. Still, a coffee shop business plan should be anywhere from 15-45 pages once it’s filled out (Occasionally more depending on the scope of the business).

That may sound like a lot, but it’s really not. Consider that you will have a variety of headings and sections that need to be broken up.

We recommend that you always use Headings, subheadings, and space between paragraphs and sections when constructing your coffee business plan.

Having space will allow you to easily read what you have worked hard on – and it will allow you to write in the margins.

Alright, So What’s Inside a Business Plan?

A business plan has several main sections that will need to be answered. While there is no “right structure” for your typical business plan, they will often include everything from your mission statement to your equipment needed, to your financial position and estimates.

There is also no right order that your business plan needs to come in, just as long it follows some cohesive framework.

Many investors and property managers look at many business plans so they might be used to certain sections that are labeled in a familiar manner. 

Here is what you will generally find in a typical business plan:

 

    • Executive Summary
    • Business Description – The Concept
    • Development To Date Details
    • Ownership & Management
    • Structure Details
    • Your Objectives
    • Your Products and Services (Your Menu)
    • Your Vision and Mission Statement
    • Your Unique Sales Proposition
    • Marketing Details
    • Location and Pricing
    • Market Research
    • Competitors
    • Equipment Details
    • Financials
    • Sales Projections
    • Net Income Projections
    • Balance Sheet
    • Permits and Regulatory Issues
    • Your Timeline
    • Risks
    • Exit Strategy
    • Ongoing Market Analysis

 

 

Do I Need To Have a Business Degree or Be Lawyer To Write a Coffee Shop Business Plan?

Nope. Writing a business plan is simply about getting your business thoughts down on paper in a structural way. It may be overkill to hire a lawyer to write out your business concept.

Now you may decide to have a lawyer review aspects of your business plan – along with your lease, trademarks, etc., but the truth is that you also do not need to be a business major or have a law degree to be able to write down your business vision, concept, and plan.

However, you may need a business plan template to work from. It would be silly to start from scratch and simply “re-create the wheel” when there are a lot of business plan templates that are affordable or even free. Spending a few dollars to save you hours and hours of work is well worth the investment.

 

 

Is a “Coffee Shop Business Plan” Different From a “Traditional” Business Plan?

Different business require slightly different or modified business plans. For example, having a tech business plan for a tech startup will generally emphasize different points when compared to a farming co-op business plan.

A traditional business plan is flexible to the specific niche that the business is happens to be in. With that said, it’s important for the business plan to address the specific and relevant business areas that pertain to its business only.

So, while there are similarities, a coffee business plan would be slightly – but importantly – different than a typical business plan. The nature of each coffee shop or coffee stand will be different so emphasizing certain aspects of the business plan may be warranted.

Nevertheless, being able to cohesively write a detailed business plan for any type of business will be essential, including a coffee shop business plan.  What doesn't change is the fundamentals of the coffee business that the business plan tries to capture – the plan to launch and viability of the business itself.

How Do I Use a Coffee Shop Business Plan?

Your business plan is organic. What I mean by this is that your business plan will grow along with you and your business. Your business plan therefore will always change, adapt, and need to be modified. Of course, we assume that you will be writing your business plan using a computer and then printing it out. We recommend that you provide plenty of space in the margins to make edits, make additions, and then, eventually make changes on the computer.

Remember that your business plan – is exactly that – a plan. A plan will change as your business changes – so having the ability to print out a physical copy – and be able to scribble notes, cross out bad irrelevant information is important as you move forward.

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

Don’t be afraid of getting it dirty of even full of coffee stains. This will be your road map to success. Your job is to make sure that it stays out of the glove box and that it is used regularly to make sure that you on the right path!

Should I Just Pay Someone To Write My Coffee Shop Business Plan For Me?

Why waste the money? You may not like “writing” at all … or doing paper work. This may make you the idea of paying someone to write your business plan for you very attractive. While this is possible, we don’t recommend this.

Here is the reason: A business plan will work your brain muscles – it will stimulate these mental muscles that you may haven’t been used in a long time or ever!

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

We offer an easy way to get your business plan started. Our Coffee Shop Business Plan Guide will provide you with the relevant templates to get you started.

 

 

#1: They have never heard of a business plan before: 

It’s natural that many coffee shop owners wouldn’t have heard of creating a business plan, because they simply never heard of the concept. While some business succeed, you may want to familiarize yourself with many of the points the business plan will bring forward.

#2: They don’t know where to start:

So a business owner may know about a business plan, but may not know where to start and so, they skip out on it. Unfortunately this isn’t a good idea. We all have to start somewhere. Finding a way to start your business plan can help you bring your idea and concept to life.

#3: They think it’s too hard or cumbersome:

Staring a business plan isn’t necessarily hard – but it does take work. It takes thoughtfulness. It takes time. Writing a coffee shop business plan doesn’t seem fun or anything that you imagined when you think about having a fun coffee business. While planning doesn’t guarantee success, we know that not planning will most likely lead to failure. While it may not seem fun to plan out your business (though we disagree!), losing your entire life savings in a disaster business doesn’t see fun either. o start your coffee business plan, you don’t have to re-create the wheel. There are plenty of resources to get you well on your way.

#4: They think their business is too small and it's not “worth it”:

Some would be coffee business owners think that having a business plan might be “over kill” because they are just starting one small business – a coffee stand. What’s hard about that, right? Well, even for small business like an espresso coffee stand, you will benefit from having your coffee business plan drawn up.  Even for small businesses, there are dozens and dozens of things to consider and keep track of.

#5: They'll keep their plans in their head:

Despite it all, many would-be coffee shop owners want to rely on their mental abilities and/or their memories by which to develop their business plan. However, when starting a business, you will simply be too busy and marred in the day-to-day operations to recall everything that you have to do to open your coffee business.

 

And yet… the #1 Reason Most Businesses Fail:

Lack of Adequate Planning

 

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

Have you ever taken a road trip to a new destination?  Not having a coffee shop business plan before you set out to open you café, is a lot like taking a cross country road trip without a map or GPS. You may know that you need to “head out West” but that’s about it.

Sooner or later, not planning out your trip and not having the tools you need to reach your destination will increase your expenses, frustrate you, and quite possibly get you nowhere. While developing your plan will take a little effort, it will be worth it in the end – and the in the begging of your business launch! 

 

Is There An Easy Way To Start And Finish My Business Plan?

Yes! Our Complete Coffee Shop Startup Kit contains a free business plan template for you to get started.

All you have to do is simply print out our Coffee Shop Business Plan template and take to a coffee shop with you. Better yet, take it to a potential competitors and fill it out. Do this a few times until you are ready to type and print it up.

Like your life, your business is what you make it. Make it fun. Be creative. Take your time. And get the help you need to get started. It’s not really expensive at all to get the help you need.

While we provide you with an-easy-to-use template: you will have to do some work. Take the time to research, learn, and develop your concept before you write it down.

 

 

Coffee Shop Startups have been helping small would-be coffee shop business owners get started. We provide informational resources that are important to consider before you launch your business. We offer an affordable Coffee Shop Business Plan Guide to help you start your coffee business.

 

 

 

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A FREE Sample Coffee Shop Business Plan Template

Are you about starting a coffee shop? If YES, here is a complete sample coffee shop business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a coffee shop. We also took it further by analyzing and drafting a sample coffee shop marketing plan template backed up by actionable guerrilla marketing ideas for coffee shops. So let’s proceed to the business planning section.

Table of Content

  1. Executive Summary
  2. Market Analysis
  3. SWOT Analysis
  4. Financial Projection
  5. Marketing Plan
  6. Marketing ideas & Strategies

Different Strokes with Coffee

We all have preferences as to how we’d like our coffee drinks. Whilst some say its black coffee with no sugar, or cream; yet others like it really creamy. Whatever the preference is, the truth remains that coffee sure does have a distinctive taste and smell that gets one hooked to it. One of the reasons besides the relaxing and therapeutic effect coffee has on the human body, most people find it really reliable when the need to stay up late either to watch some favorite movie or soap, or stay up late and study for an upcoming exam. Thanks to the caffeine level in it which helps keep one wide awake.

There are several business sides of the coffee beans. Whilst some folks are neck deep into the cultivation and harvesting of the coffee beans, yet others are into the processing and packaging of it. Furthermore, over the years, we have come to see that folks have even begun to make more money by   engaging in the business of serving hot or cold coffee drinks. That is what has metamorphosed into the coffee shop business as can be found all over the world.

Starting a coffee shop doesn’t sound a difficult task, however care have got to be taken so that one positions the business in a strategic place that is sure to attract an avalanche of coffee drinkers. Some true and fundamental factors have got to be considered in order to get it right.

One of this step is the putting together of a business plan. Writing a detailed business plan might not come easy. This is why it is important to get a template with which you will be able to draw yours up with. Care has to be taken to make sure that you dig and get the business plan that syncs with your type of business.

Conversely, if you think you have the wherewithal to hire a business consultant to help you whip a plan up, then that is fine. Otherwise you may want to make do with a template, which is as equally effective as the one a consultant writes. Here is a sample of a coffee shop business plan;

A FREE Sample Coffee Shop Business Plan Template

Coffee business is one of the businesses that any entrepreneur can successfully start in the corner of a busy street or in a mobile shop without breaking the bank for cash. At the same time, big – time investors can also leverage on the high demand for coffee to set up their own coffee shops in strategic locations. Starbucks and Costa Coffee are some of the leading Coffee Business Companies in the world. For example; Costa Coffee™ operates about 1,755 coffee bars in the United Kingdom alone and about 1,106 outlets in 30 countries of the world.

Costa Coffee™ could grow their business big because coffee business is indeed a rewarding business venture, irrespective of the scale one intends to start out from. In other words; there will always be an available market for you.

Coffee shops / bars can be located in any part of town, as long as there are people living or working there. Essentially, coffee shops / bars are located in airports, sea ports, shopping malls, hotel lobby, railway stations, bus station, campuses, hospital lobby, sport centers, as well as in any public facilities.

There are different types of coffee drinks that you can find in a coffee shop. Some of them are cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.

Over and above, the turnover for an average coffee bar can be as high as 50% and above- that is why entrepreneurs who intend making good money from a business with less struggle open their own coffee shop by either starting their own coffee bar from the scratch or by buying franchise.

Sample Coffee Business Plan Template – MARKET ANALYSIS

If you are conversant with Coffee business in the United States of America, you will quite agree that coffee consumption has shown steady growth over the years and from all indication, the growth is not going to plummet anytime soon. Coffee addicts would always go out of their way if possible to stop by a coffee shop to have a hot cup of coffee.

Typically, sales of coffee triple during winter season and in most cases small coffee bars struggle to meet the demand for coffees during this period. Over and above, those who run coffee shops don’t struggle to attract clients, especially if they are well positioned.

However, the idea of the ideal and prosperous coffee shop isn’t just about being well positioned; it is also about offering professional services that is able to cause an indifferent potential customer into a repeat and loyal coffee consumer.

Although there are limitations to how far we can go when it comes to marketing coffee and pastries in the airport but that does not stop us in improvising on ways to generate traffic at our coffee shop. Parts of the marketing and sales strategies that we will adopt are;

  • Opening of Coffee bar in a grand style by serving free cups of coffee to all those who step into the shop.
  • Ensure that we have different types of coffees at all times.
  • Make use of attractive hand bills to create awareness and also to give direction to potential clients
  • Position our signage / flexi banners at strategic places around the airport (subject to permission from the airport authority)
  • Advertise our coffee shop on local travelling magazines and yellow pages.

Our Target Market

When it comes to selling coffee, there is a wide range of people that consume coffee and we don’t intend to place restrictions on the type of customers that we intend attracting to our coffee bar. This is why we invested time to create a coffee shop marketing plan. The fact that our coffee shop will be located inside the Los Angeles Airport facility means that our target market can essentially be categorized into 2 groups (Travelers and Airport Workers).

The people we intend selling our products to are;

  • Corporate Executives
  • Business People
  • Sports Men and Women
  • Government Officials
  • Students
  • Airport Employees
  • Tourists
  • Families
  • Low class, middle class and high class consumers

Our Competitive Advantage

Going by the arrangement we met on ground, we are going to be one of the 2 coffee bars that will be in operation in the area around the airport where our coffee shop will be located. As a result, we are going to struggle less to make headway in the business. In essence, we have little or no competition.

We plan to run a standard coffee business which is why we hired one of the leading business consultants to work with us in setting up our coffee business. The business consultant we have hired has over 15 years of experience in the retail coffee industry and has successfully opened several coffee bars in major cities across the United States of America.

So far, he has been able to deliver on key areas and he will continue to work with us on market research, customer satisfaction surveys and to provide additional input into the evaluation of the new business opportunities as regard opening other outlets and selling franchises when the need arises.

We believe that with all these hard and detailed work that is being put in place, we shall no doubt be a force to reckon with when we eventually commence operation and open our doors to consumers who want to be given a run for their money.

Sample Coffee Shop Business Plan Template – SALES AND MARKETING STRATEGY

Coffee4All do not intend to spend heavily when it comes to marketing our products that is the reason why we decided to rent a shop in a location that attracts loads of traffics all through the calendar year.

The location of our coffee bar is strategically positioned to attract ample customers with little or no effort from our own part, which is why we do not make provisions for marketing and sales executives in our company’s structure. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeat sales from them;

  • Position our greeters to welcome and direct potential customer
  • Create a loyalty plan that will enable us reward our regular customers
  • Position our flexi banners at strategic positions all around the airport facility
  • Advertise our coffee shop on local travel magazines
  • Partner with traveling agencies to refer their clients to our coffee shop whenever they are traveling via Los Angeles International Airport

Our Pricing Strategy

When it comes to fixing prices for the range of coffees and pastries we sell, we are going to ensure that we set pricing in line with what is available in the coffee industry. We are very aware that we have got to lower our price so that we will be able to attract customers like never before as we seek to gain recognition as newbies. When this is achieved, then bottom line is that our customers will derive real satisfaction when they consume our coffee and pastries

We also have plans in place to discount our coffees once in a while and also to reward our loyal customers with free cups of coffees.

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

  • Payment by cash
  • Payment via Point of Sale (POS) Machine
  • Payment via online bank transfer (online payment portal)
  • Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.

Coffee Shop Business Plan – Publicity and Advertising Strategy

When it comes to publicity and advertising, we have a low budget for it simply because our business is located in a place that can easily attract the numbers of customers we would need with little or no stress on our own part.

But for the fact that we hope to some day in the near future start selling our franchise, we have decided to create a budget for publicity and advertisement for the major aim of introducing our brand in the market place. Everything that we will do in this regard is geared towards communicating our brand.

Here are the platforms we intend leveraging on to promote and advertise our business;

  • Place adverts on both print (travel magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
  • Install our Bill Boards on strategic locations
  • Engage in road show from time to time
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions around the airport

Generating Funding / Startup Capital for Coffee4All®

Coffee for all is a private business that is solely owned by Mrs. Kate Stevens and she does not have the intention of welcoming any external partners except immediate family members which is why she has decided to restrict the sourcing of her start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $60,000 (Personal savings $40,000 and soft loan from family members $20,000) and we are at the final stage of obtaining a loan facility of $80,000 from our bank. All the papers and document has been signed and submitted, the loan has been approved and any moment from now our account will be credited and we will be able to execute all the things that needs to be executed.

Coffee Shop Business Plan – Sustainability and Expansion Strategy

Our plans of establishing Coffee4All is basically to test – run the coffee business and we have decided to start our first outlet in a busy location – the Los Angeles Airport. Although we don’t have the intention of running chains of coffee bars in different airports, but we would be selling franchises in the nearest future. It is pertinent to state that we shall not allow our standard operating process to drop so that we do not lose our loyal customers.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Renting of Shop and remodeling the shop: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, electronic appliances, office appliances and coffee brewing equipment: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the airport facility: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Compilation of our list of products and detailed recipe: Completed
  • Establishing business relationship with vendors – suppliers of all our needed raw materials: In Progress

www.profitableventure.com

How to Start Your Own Coffee Roaster Business

Your best customer is a cafe owner. A cafe owner will need to buy your coffee every week and that will keep your business going. A cafe that needs 25kgs of coffee per week will pay roughly $20 per kg (underestimated). Over one year, that comes to just over $25,000. If you can manage to get four customer cafes then you will be making over $100,000 per year.

It all depends on your marketing, and the market is usually split up into four categories: top, middle, bottom, and boutique.

The top category are cafes that use the best coffee machines with Mazzer coffee grinders: La Marzocco, Synesso, Slayer, and Kees Van Der Westen-inspired machines like Spirit, Speedster and Mirage. These cafes will have atmosphere and a vibrant feel to them. They are filled with happy staff and have a large regular following that contribute to the overall spirit of the cafe. Coffee is a major focus in the cafe and they either serve a reputable brand or roast their own.

If there is a cafe in the middle of the worst part of town with a big sign that says they are now using your coffee, your brand is now associated with that type of cafe/shop. This is the bottom of the market. When enough people get used to seeing your brand name outside of that shop, you will attract other shops of the same calibre. Coffee isn't the main focus in this type of shop, it's just another way to make a buck. The equipment is usually poor and not maintained well.

The middle category is somewhere in between these two—not the greatest but not the worst. This is where the majority of most cafes sit.

The boutique section can include someone roasting beautiful coffee at home, or in a tiny space, serving brilliant cups of excellence. The boutique/speciality/micro-roasting type can hold up quite well in the industry, but as you grow you may out-grow this area and move into one of the three general categories. If you carry on roasting immensely good coffee, and choose your cafes well, you can end up in the top category. If you get lazy and accept a few middle-level cafes, then you can easily slide down and disappear.

This is where you decide at what level you want to play. Here in Australia, examples of top-quality roasters are Allpress Espresso, Coffee Alchemy, Campos Coffee, Single Origin Roasters, and Toby's Estate. This doesn't mean that their coffee is the best, it just means that they have excellent marketing strategies. They will only put their coffee in great cafes with the best machinery.

Think about the type of cafe that you would like to represent your product. Once you know, then think about all of the things that this type of cafe would want. Are they currently using La Marzocco level coffee machines or standard coffee machines? What coffee are they currently using? Look at your branding and ask yourself if the branding matches the category of the market where you are trying to position your coffee.

There is always room in the top category for more coffee roasters because the top usually has all of the best cafe owners. These cafe owners are the type that always pay their bills on time and are happy people who like to chat. The top category maybe hard to enter but once there it will make the rest of your marketing a lot easier.

The middle category is just so hard to enter. This is where most coffee roasters position themselves and they struggle while battling to hold their accounts (cafes). The problem with the customers in this category is that these cafe owners want free stuff. They will leave you in a second if they can get extra freebies from someone else. The freebies I talk about are umbrellas, wind barriers, "buy 5kgs of coffee and get 1kg free" offers, and new coffee machines and grinders that includes free servicing. This is why it's so hard to survive in the middle bracket; it comes down to how much money and perseverance you have.

The bottom category is easy to enter but isn't good for your brand unless you want to be there. The chicken shops, kebab shops, small rough bakeries, convenience stores, and old train station stores will not have much competition, but once entering these shops, your brand will be seen as average or below average.

On a personal note, I have worked for three coffee roaster companies and by far the best was the company in the top bracket. Not only were the people friendlier and happier but the wages were better.

To sum up the question, I believe it has a lot to do with where you want to establish your business as a coffee roaster in the overall market.

toughnickel.com


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