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How to Write a Business Plan for Opening a Cafe
- by Lightspeed
minute read

Think of your plan as a roadmap for your entrepreneurial adventure—one that’s easier to create than you might think! In this article, we’ll show you how to write a business plan that will set your cafe up for success.
How to write a business plan for opening a cafe
What is a cafe business plan, start with your vision, study other business plans, building your business plan template, section 1: the executive summary, section 2: how will your cafe business succeed, section 3: study your competition, section 4: analyze your target market, section 5: tell us what you’ll sell and how you’ll sell it, section 6: create a marketing plan, section 7: ownership structure, section 8: your operations plan.
- Section 9: Financial planning
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At its core, a cafe or coffee shop business plan is a document that explains what your business idea is and how it will succeed. It answers questions like how much it costs to set up shop, how those costs will be funded and how much money you expect to make from your cafe. A coffee shop business plan includes information about your competitors, target market and pricing structure.
When it’s finished, your business plan can be shown to potential investors, bankers, partners and anybody else who will help you open your cafe. As you can probably tell, it’s an extremely important document, so it’s worth your time and effort to get it right. First, you’ll learn about all the different pieces of information that will go into your business plan and then we’ll help you pull the pieces together.
A business plan is the first step in making your cafe-ownership dream a reality, so take time to dream by laying out your vision for your future cafe or coffee shop. What will your cafe look like? How will it be decorated? Where will it be located? Which items will you sell? Who will frequent it? How will your customers navigate your cafe, from the moment they walk through the door to the moment they swip e or tap their credit card to check out?
Pull inspiration from cafes you love, images you’ve seen, your favorite films or books, even your travels. Then write it all down or post pictures on a wall to create an inspirational mood board . As you spend hours working on your business plan, it will be incredibly motivating to glance up at your initial vision and be reminded of the finish line.
Before you pen your masterpiece, look at business plan examples from your industry: cafes, coffee shops and quick-serve restaurants. Study how they planned their business and make sure that your cafe is on the right track.
Real-world examples from small business owners are also invaluable. Seek out current or former coffee shop owners or even franchise owners in your town and ask them how they succeeded and what they would have done differently. While you’re at it, you can seek recommendations for, say, an accountant who can help you write your business plan. Even if local business owners are your future competition, they might be willing to share their experiences.
A blank page can be overwhelming, but there are countless business plan templates available online to help get your started. We’ve outlined the basic sections you should include in your business plan below, as well as further tips on how to build out each one.
When a reader opens your business plan, they will see the executive summary first. This gives a high-lev el overview of all the sections in your business plan. A well-written executive summary will get your foot in the door, so be sure to read examples to get a feel for how the summary is worded and to see how all the information is presented.
Just as you thought about the customers who will visit your soon-to-be-open cafe, consider who will read your business plan and tailor the opening paragraphs to your audience. As you’re preparing to open your cafe, your executive summary is the most important marketing tool your cafe has.
The second section answers questions like, “What problem does your cafe solve?” and “How will your cafe be the solution?” Maybe there is no coffee house or cafe in a busy retail center near you. Or maybe a restaurant just closed downtown.
This summary provides a brief overview of your industry, mentions where your cafe will be located and describes how it will stand out. Will your shop specialize in breakfast sandwiches near an airport? Sell your locally famous pie? You’ve envisioned how your future cafe will be a success. Make sure the readers of your business plan understand that too.
The next part of your business plan is usually referred to as the competitive analysis . It explains how your cafe will compete with similar food and beverage businesses—including big coffee chains like Starbucks and fast food giants like McDonald’s. Nearby restaurants, coffee shops and even public gathering areas like movie theaters are all your competition. So now is the time to do the research of visiting your potential competitors and making a note of who their customers are, as well as what’s for sale and how much it costs.
By understanding the pricing strategy for similar businesses, you’ll know how much you need to charge for your coffee, pastries, sandwiches and whatever else you’re selling in order to remain competitive in your particular market. Gross margins (the amount of money you make based on what you sell) for cafes and coffee shops can be high, but small cafes have notoriously small operating incomes (read: profits) due to the high cost of overhead.
However, if you put in the time to undertake a thorough analysis of your competition, your cafe has a higher chance of being successful. By writing down how your cafe will compete against similar businesses, you will convince your reader (and, most importantly, yourself) that your goal of opening a restaurant or cozy cafe is realistic and sustainable.
In order for your cafe to succeed, it needs a steady flow of customers. Unfortunately, attracting foot traffic is not quite as easy as “if you build it, they will come.” In your business plan, your future customers are known as your market , the number of potential customers is your market size and how you’ll reach them is your marketing plan.
In your cafe or restaurant business plan, you’ll then take your market and divide it further into market segments . For example, if your coffee shop or cafe is close to an elementary school, a market segment might be parents or caretakers who stop by for high-end coffee after dropping their children off at school. Or college students studying for exams as they swig espresso.

Now that you know what the competition charges, it’s time to create a pricing strategy for your cafe.
When creating your menu and prices , be smart. You’ll be buying ingredients in bulk, so try to use the same ingredients in many different dishes. Are you thinking of selling wine at your cafe? Liquor, like coffee, offers some of the largest profit margins in the industry, but a liquor license will cost you money and there may be a waiting period, so you might want to start with non-alcoholic beverages.
Don’t be afraid to get creative. If you charge less for a croissant and coffee combination than you do for those items alone, you’ll encourage customers to buy more and cut down on food waste . Once you open for business, you’ll probably end up making changes to your menu. But for the purpose of a business plan, you’ll need to know how much you will charge for the coffee or soup you plan to sell, which you’ll determine by breaking down the ingredients needed to make each item and researching your competition.
Your marketing plan can be part of your sales plan or it can be a separate section. Will you advertise your specials every morning on social media ? Will you partner with another local business for special promotions? In addition to marketing, this is also a great section to explain your plans for retaining your customers. Will you offer loyalty programs or have your employees give your top customers a free cookie on their birthday? With a cafe point of sale system , it’s easier than ever to reward—and keep—the customers who will frequent your cafe.
Your business plan will include the ownership structure of your business. Explain how much experience you and your partners bring to the table and why you’re the right person (or people) to go into business.
In this section, you’ll include information about your facilities, employees, equipment and supplies. Think the direct costs of rent, barista wages, ingredients like coffee beans and technology. Try to get many services out of individual tools, like a POS system that lets your customers check out, your part-time employees clock in and also manages the inventory of your cafe.
Approximate how often you’ll need to reorder ingredients like flour and eggs. Carefully considering your operating costs during the business planning stage pays off. For instance, a coffee roaster is an upfront start-up cost, but roasting your own coffee at your cafe can save you operating costs in the long run. Save money where you can (secondhand chairs, anyone?) and don’t scrimp where it’s important, like your espresso machine.
Section 9: Financial planning
Now you’re ready to craft a financial plan for your cafe. This is usually the most time-consuming and important section of your business plan, especially for lenders and investors. It should include an overview of your start-up costs, an income statement, projected cash flow, a balance sheet and a break-even analysis .
Startup costs
You’ve heard the adage that it takes money to make money, and this is because most businesses need initial funding to get them off the ground. A major reason you might be writing a business plan in the first place is to secure funding, like a business loan, for your cafe, but remember that your start-up funds can come from anywhere. How much money do you need to borrow? Will you dip into your savings? Crowdfund from your fans? No matter where you find your initial financing, a business plan lays out how your cafe will be funded and how that money will cover your business start-up costs.
Income statement
Once you know your start-up costs, operating costs, pricing strategy and target market, you are ready to lay out all this information into an easy-to-digest income statement . Take all of your expenses (mainly operating costs) and your projected sales volume (the amount that you are selling each month based on your pricing strategy and market research) to prove that your cafe business will turn a profit. In your case, create a projected monthly income statement for the first year your cafe will be in business. Explore some examples of income statements to see what your final analysis will look like.
Looking ahead to the future
A big part of writing a business plan for your cafe is figuring out the projected cash flow your cafe will earn over time. Depending on the audience for your business plan, you may have to project your cafe’s cash flow up to five years in advance, broken up into months or quarters. Though this exercise might seem difficult, it’s not impossible. You’ve already completed most of the financial legwork.
Combine those crunched numbers with your personal experience as a customer and a worker to project how much money your cafe will make in the future. Consider seasonal differences, like a spike in business around the holidays if you’re in a busy shopping district, or a lull in business during the summer if your cafe caters to college students. Just like your income statement, these cash flow projections will go into your business plan as easy-to-view statements.
Balance sheet
A balance sheet details the assets, liabilities and equity of your cafe business on the day it opens. It’s generally used to determine how much money a business has to work with. For a small cafe, it’s not as important as the income statement, but it’s useful as a realistic snapshot of the financial health of your restaurant.
Breaking even
Now that you’ve detailed how you will make a profit and you know how much money you are working with, you can approximate how long it will take your cafe to turn a profit. This is called the break-even point.
Keeping the restaurant dream alive
Though creating a business plan can seem complicated, remember that it’s an important step you should take before starting a cafe. A thoughtful business plan proves to others (and yourself) that your cafe can be successful.
Looking to invest in the right tools for your cafe? Chat with one of our experts to see how cloud software can make your day-to-day more efficient.

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Lightspeed is a cloud-based commerce platform powering small and medium-sized businesses in over 100 countries around the world. With smart, scalable and dependable point of sale systems, it's an all-in-one solution that helps restaurants and retailers sell across channels, manage operations, engage with consumers, accept payments and grow their business.
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Successful Coffee Shop Business Plan

Need a Coffee Shop Business Plan? We Can Help
Want to know how to open a coffee shop the right way? Want a solid answer to the critical question “ how much does it cost to open a coffee shop ?” Before you start the process of opening a coffee shop, you need to do your homework and distill everything you learn into an exceptional coffee shop business plan.
After helping entrepreneurs (most with little or no coffee shop experience) in 30 states to launch more than 300 independent coffee shops , we know that a business plan is vital for success. In fact, we believe that it’s so vital, we include a fully editable electronic version with every purchase of 7 Steps to Success , the proven guide to coffee shop startup success.
The more you time and effort that put into developing your business plan, the more prepared you will be to open and run a successful coffee shop.
The Elements of a Successful Coffee Shop Business Plan

And, if you’re seeking outside financing for your coffee shop, a compelling business plan is an absolute necessity.
A strong business plan forces you to answer all the questions needed to set up your coffee startup to thrive. Done right, your plan becomes a reference manual for running a thriving coffee shop.
Your plan should include six sections plus a cover page. Most sections should take up a page or two but not much more – you’re not writing a book! Financial data, however, often takes a few pages.
Section 1: Executive Summary
The executive summary should actually be the last section you write. This one-page summary highlights and condenses key points from each section of your business plan.
Devote a few sentences to each section. Make them unique and interesting. Every word counts.
This is your chance to tell the story of your business. Next to the financial data, it is the most important part. It is the first page that bankers and potential investors will review.
After you write the executive summary, share it with bankers or business consultants then revise your plan based on their suggestions.
Section 2: Business Description
Write a brief description of your proposed coffee shop. Include the:
- Business name (get creative!)
- Location (physical or online)
- List of products or services – draft a potential menu
- Target market
- Law firm that reviews contracts
- Pictures of the space
- Leasing arrangements
Section 3: Management Profile

If you are the primary manager, summarize your resume. Highlight any restaurant or coffee shop experience you have. If you lack direct experience, emphasize transferable skills and accomplishments.
If you have managers or partners, include their education, employment record, skills, and accomplishments.
Don’t forget to highlight business consultants. Investors gain confidence from advisers with a proven track record.
Section 4: Information about the Coffee Industry and Your Competition
The coffee market in the USA continues to grow with many potential customers underserved, especially in rural areas! Conduct research into both the coffee industry and your community. Your marketing analysis should examine:
- Industry trends
- Key financial measures in the industry
- Local competitors – not only other coffee shops (both chains and independents) but also potential substitutes for coffee (ice cream, smoothies, etc.)
- Demographics and demand in your community
- Consumer coffee sales sensitivity to economic cycles
Section 5: Marketing Strategy
In your marketing plan:
- Explain what will set you apart and why customers will choose to buy from you (your unique selling proposition)
- Describe location of your coffee shop and the type (walk-in, drive-thru, kiosk, etc.)
- Identify target customers (geography, age range, income, interests, etc.)
- Outline marketing strategies you will use to attract customers
Section 6: Financial Data
Your financial plan outlines the assets, liability and cash flow for your coffee shop. Bankers will examine this section to determine the financial health of your potential business. This section requires three documents:
- A cash flow statement
- An income or statement, and
- A balance sheet.
Cash Flow Statement
The cash flow statement helps determine your business’ ability to pay its bills in the short term. It outlines:
- The initial investment (to help determine this, be sure to read how much does it cost to open a coffee shop ?)
- Level of sales needed to break even
- Expected expenses, and
- How much money – if any – you will receive from outside sources.
The cash flow statement also reflects investments. Ending cash is the money you have at the end of the month.
Income Statement or P&L
In simplest terms, the income statement or P&L shows total sales and expenses for the year.
Most information needed to fill out this statement comes from the cash flow statement (sales, cost of goods sold, expenses). You may use tax figures from an accountant.
Balance Sheet
The balance sheet summarizes assets, liabilities and net worth at a particular point of time, using this formula: total assets – liabilities = net worth.
Once you’ve completed the cash flow and income statements, the balance sheet is a matter of filling in the blanks:
- Total assets include assets (cash and inventory) plus fixed assets (equipment minus depreciation).
- Liabilities include accounts payable and long-term debt.
Any business, including a coffee shop, with high liquidity, low debts, and sufficient working capital has a higher probability of success. Keep enough cash or liquid assets on hand to cover six months’ worth of expenses.
The Proven Coffee Shop Business Plan Template
As an award-winning coffee roaster with a team of coffee shop startup consultants , Crimson Cup has the expertise to guide you from drafting an exceptional business plan through choosing a location and marketing your coffee shop. In fact, Roast magazine editors cited our education and training programs as a factor in choosing Crimson Cup as their 2016 Macro Roaster of the Year .
We train hundreds of baristas and coffee shop owners each year at our Crimson Cup Innovation Lab – the largest SCA-Certified Premier Training Campus in the Midwest.
Founder and President Greg Ubert wrote the book on successfully opening and running a coffee shop. He and the Crimson Cup team of have helped hundreds of entrepreneurs become successful coffee shop owners.
“For many potential owners, writing their first coffee shop business plan can seem overwhelming,” Greg said. “We’re happy to share our experience and walk you through the ins and outs.”
You’ll find a complete coffee shop business plan template provided with Greg’s book, Seven Steps to Success in the Specialty Coffee Industry .
Greg has written about coffee shop business plans for S mart Business Columbus and CoffeeTalk magazine. He also serves on the boards of directors for both Heartland Bank and the Columbus Chamber of Commerce .
Going Beyond the Coffee Shop Business Plan
Greg’s book became the foundation for our 7 Steps to Coffee Shop Startup Success process which has helped hundreds of entrepreneurs open and run successful coffee shops.
We provide all the support you need to open a coffee shop – without expensive franchise fees or royalties. You don’t even need to sign a long-term contract to buy our coffee.
More than just a short-term course on drink preparation or running a coffee shop, we offer hands-on training and ongoing guidance for both baristas and business owners.
With decades of experience in running coffee shops, our coffee shop startup consultants can help you go beyond the business to plan to:
- Choose the right location
- Lay out your shop for optimal success
- Create a menu that customers will love
- Hire and train staff
- Attract customers with low-cost grassroots and social media marketing techniques
- Serve great-tasting drinks with award-winning coffee and high-quality coffee shop supplies
- Prepare to thrive in good times and bad
Through our proven process, we have helped shape business plans for hundreds of successful independent coffee shops in 30 states, Guam, and Bangladesh. Can we help you too?
How to Create a Coffee Shop Business Plan
Sample plan illustrates the process.
- Section 1: Executive Summary
Section 2: Business/Industry Overview
Section 3: market analysis and the competition, section 4: sales and marketing plan, section 5: ownership and management plan, section 6: operating plan, section 7: financial plan.
- Section 8: Appendices and Exhibits
- Small Business
- Online Business
- Home Business
- Entrepreneurship
- Operations & Success
Susan Ward has run an IT consulting firm and designed and presented courses on how to promote small businesses.
A simple coffee shop business plan can help you get your business off the ground by following a standard layout consisting of a single document divided into several sections. Included should be a description of the organization, market research, competitive analysis, sales strategies, capital, and labor requirements and financial data.
Business plans range from a few pages to hundreds of pages long depending on the size and scope of the business. For a relatively small business like a coffee shop, it is best to be succinct and keep the plan to 30 pages or less, especially if you intend to submit it to bankers or investors for debt or equity financing. Potential investors want to see solid research and analysis presented in a concise form.
To give your plan more visual appeal Include photos, designs, or site plans of prospective premises to give your plan more visual appeal. Charts and graphs help illustrate financial information such as revenue projections.
A basic business plan for a coffee shop can be done in eight sections, plus a title page.
Enter your business information starting with the legal name. If you already scouted a likely location or have a website in place, include the addresses. If you have a business logo, add it at the top or bottom of the title page. The title page also should include a table of contents that lists each section and the page number where it begins.
Business Plan
Java Jake's Coffee House
October 15, 2017
2303 Stewart St. East Clovervale 609-458-2020 email: jj@javajakescoffeehouse.com web: javajakescoffeehouse.com
Presented to: "Name" "Company or Financial Institution"
Table of Contents:
1. Executive Summary
2. Business/Industry Overview
3. Market Analysis and the Competition
4. Sales & Marketing Plan
5. Ownership and Management Plan
6. Operating Plan
7. Financial Plan
8. Appendices and Exhibits
Section 1: Executive Summary
Place the executive summary near the beginning of the plan, but write it 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.
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 more than a decade in the food service industry, including management experience.
Our main products will be 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. We plan on capturing the upper end of the local coffee market by serving gourmet, nonmachine-made coffee products at reasonable prices. Along with our superior atmosphere and great customer service, we intend to target sophisticated coffee consumers.
The location we have selected has 2,000 square feet of space, room for an outdoor patio, and requires minimal 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.
$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.
Provide an overview of the coffee industry , the local market, and what makes your business unique.
The Coffee Industry
According to analysis by Pew Research, millennials have overtaken 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:
- Gourmet coffee's popularity is increasing across diverse demographics
- Americans consume more than 600 million cups of coffee per day
- Retail sales of coffee exceed $47 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 currently are two other coffee shops within the immediate area, neither offer patio seating or substantial 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 place to meet with friends, relax, and enjoy a great cup of coffee. Ultrafast wifi will enable students and business people to readily communicate and work on school or business activities.
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.
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.
- Lack of parking: The lack of parking makes it difficult to attract vehicle commuters.
The local customer base consists of approximately:
- 3,000 students from two post-secondary schools
- 200 school staff
- 1,000 business people and office workers
Both schools have solid attendance and are expanding their student populations. The local business market is strong and has been relatively unaffected by previous economic downturns.
Compared to our compeition, we expect our revenues to grow strongly as we build our customer base:
Describe how you intend to entice customers to patronize your coffee shop, including advertising, promotion, pricing strategy, sales, and service.
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.
- Providing baristas with professional training.
By focusing on quality, consistency, and great customer service, we will build a steady repeat customer base.
Pricing Strategy
We intend to 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 coffee press 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.
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 6:30 a.m.-9 p.m. on weekdays, and 7 a.m.-9 p.m. on weekends.
In addition to cash, credit, and debit, we also will 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
- Daily specials announced on Facebook, Instagram, and Twitter
Statistics demonstrate that loyalty cards are highly effective, and Java Jake's will use a custom-designed rewards card to promote repeat business.
Describe the legal structure, ownership, and (if applicable) the management and staffing requirements of your business.
Ownership Structure
Java Jake's Coffee House is a private corporation registered in the state of Texas. The business is 100% owned by Jack Valdez and Juanita Sanchez:
- Jack Valdez: 60 Class A Shares
- Juanita Sanchez: 40 Class A Shares
Owners Jack and Juanita will co-manage the business, and at least one will be present at all times during open hours. Both owners have previous food service management experience and are trained and 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.
Outline 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.
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 and washroom facilities already in place. The previous tenant has offered to sell used kitchen equipment at heavily discounted prices.
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, dishwashing, maintaining washroom facilities, etc.
To increase employee loyalty, a bonus/profit sharing system will be put in place.
The following equipment will be purchased:
- Commercial grade La Marzocco Espresso machine ($25,000)
- Espresso grinder ($1,500)
We currently are negotiating the purchase of used commercial equipment from the previous tenant, including:
- Glassdoor 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.
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.
This 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.
Include these financial statements:
- Income Statements: These shows your projected revenues, expenses, and profits. Do this on a monthly basis for at least the first year for a startup business.
- Cash Flow Projections: These show 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: This 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 demonstrates to financiers or investors what level of sales you need to achieve to make a profit.
Section 8: Appendices and Exhibits
The appendices and exhibits section contains any detailed information needed to support other sections of the plan.
Possible appendix/xxhibit Items include:
- Credit histories for the business owners
- Detailed market research and analysis of competitors
- Resumes 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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Coffee Distribution Business Plan
Start your own coffee distribution business plan
The Coffee Warehouse
The Coffee Warehouse will provide a first-class delivery service of quality hot and cold beverage related supplies, including whole bean or ground coffee, flavor syrups, jet teas, fruit smoothies, bubble teas, concentrated milk, fresh baked goods and assorted paper supplies. Our services will include invaluable trade resources, effective promotional programs, custom-designed marketing material, informative monthly newsletters, training and product demonstrations, as well as information on the latest market trends in the coffee/specialty beverage industry.
3.1 Product & Service Description
PRODUCT DESCRIPTION The Coffee Warehouse will carry a variety of quality products that will enable us to provide full service delivery to espresso stands and coffee houses. Our underlying philosophy in selecting products is to choose lines that will bring consistent quality, competitive prices, and product satisfaction to our customers. We have personally researched and sampled each of the following products that we offer to ensure the quality we guarantee.
- Lowery’s Gourmet Whole Bean and Wired Willey’s White Coffee
- Assorted Gourmet Syrups & Coffee Toppings
- Chocolate, White Chocolate and Caramel Syrups/Sauces
- Oregon Chai Concentrate
- Jet Cafe and Jet Tea Fruit n’ Tea Freeze
- Cappuccina line of product
- Big Train line of product
- Red Bull Energy Drinks
- Good Cow Concentrated Milk with Custom Dispensing Equipment
- Fresh Baked Goods
- Assortment of White, Pre-printed Paper, and Clear Beverage Cups Systems – as well as an assortment of other paper supplies
At this time, the majority of these products are only available to customers through wholesale vendors such as Cash and Carry retail outlets – therefore it is the customer’s responsibility to acquire these products by their own means. The Coffee Warehouse will make these same products available through our high quality, full service delivery – bringing these products directly to their doorstep at a competitive price.
SERVICE DESCRIPTION An important component of our business is not just our products, but our service. In addition to our full service delivery, the following are other important service elements that we will offer to our customers:
- Ideas to help our customers increase sales through menu development, creative promotions, co-op advertising, and much more.
- Custom designed marketing material such as printed banners, promotional posters, punch cards, pre-purchased beverage cards, reader boards, etc.
- Distribute a monthly newsletter featuring the latest coffee trends, new industry equipment, breaking trade news, promotional ideas, new creative recipes, and upcoming events.
- Samples of the latest product releases – with eye-catching point-of-sale to advertise new items to the end consumer.
- Routine equipment maintenance and training.
3.2 Competitive Edge
KEY COMPETITIVE STRENGTHS No other wholesaler in the market offers full service delivery with the variety of product we feature. We are better positioned than our main competitors to take advantage of the increasing demands of coffee and specialty beverage supplies because we focus exclusively on high-quality distribution and customer service. In addition to the variety of products we feature, The Coffee Warehouse has exclusive distribution rights to Good Cow’s concentrated milk/dispensing system. This product is not currently available in our market by any other suppliers.
KEY COMPETITIVE WEAKNESSES Our primary weakness is that we are a new business competing largely against established suppliers. To significantly build sales, we must not just find new customers – we must take customers away from existing suppliers. However by offering a superior selection of supplies, new groundbreaking products to the market, and focusing on high-quality service and full service delivery, we feel will can quickly establish accounts and build strong relationships. Co-founder Jennifer Smith has had many discussions with owners of coffee and espresso businesses that confirm this opinion.
3.3 Sales Literature
Sales literature to be distributed to both current and potential customers will include brochures, fliers, newsletters, as well as other print media such as print advertisements. Jennifer Smith is highly skilled in graphic design and desktop publishing, and has quality design and printing equipment to publish professional pieces at a low cost.
3.4 Sourcing
The Coffee Warehouse will purchase product directly from manufacturers, as well as master distributors. Because this eliminates the broker or “middle man,” this allows us to operate on a 25-30% profit margin, while providing our customers with competitive prices.
To further reduce costs, The Coffee Warehouse plans to share product shipments out of California with distributors operating in Portland, Oregon and Tri-Cities, Washington. Other product not being shipped directly to Spokane will be purchased and picked up in Seattle, Washington. The Coffee Warehouse plans to send a truck to Seattle on a bi-weekly basis to pick up product, thus cutting costs by an average of 5%.
3.5 Technology
To streamline the efficiency of our distribution methods, The Coffee Warehouse plans to use the latest in cutting edge technology – not only in the warehouse – but also in the trade.
All of our drivers/sales representatives will be equiped with Thinque MSP handhelds and software. Thinque MSP applications will reduce field expenses, decrease day’s sales outstanding, and increase worker efficiency. Features can be used in or out of the warehouse and include managing returns and collections; adjusting item price, profit or margin; applying promotional items to an account; streamlining orders; tracking inventory; reducing out-of-stocks; and providing sales history reports. All information recorded in the handheld is available in real time to be viewed by management in the office.
3.6 Future Products and Services
Within the first year of business, The Coffee Warehouse intends to open a retail/wholesale store and high-quality showroom. Products will be available for purchase by both our wholesale customers who may need product between delivery days, as well as retail consumers interested in purchasing product for their home use. We will also offer a showroom that will feature equipment, supplies, trade resources, and information on marketing services with examples of marketing and promotional material available to customers.
With the addition of the product showroom, The Coffee Warehouse will offer customers quarterly product and training demonstrations that will be presented by trained beverage experts from the industry.
The Coffee Warehouse also plans to hold semi-annual trade shows for current or potential customers. These trade shows will allow customers the opportunity to sample products, talk to manufacturers, learn about new industry trends, review marketing material, and network with other business owners in their market.
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The Ultimate Coffee Shop Business Plan and Template
If you are looking to write a coffee shop business plan, you have come to the right place.
A coffee shop business plan is an essential tool for coffee shop owners or people who want to open a coffee shop. A business plan will help you plan your strategy for success and act as a guide as you look to build your coffee shop.
In this article, we’ll look at why you should write a business plan for your coffee shop or cafe, as well as provide you with a sample and a template that contains inspiration for the things you should include in your coffee shop business plan.
Table of Contents
- 1 Why Write a Coffee Shop Business Plan?
- 2.1 Executive Summary
- 2.2 Company Overview
- 2.3 Market and Customer Analysis
- 2.4 Sales and Marketing Plan
- 2.5 Management Team
- 2.6 Financial Plan
- 3 Wrapping Up
Why Write a Coffee Shop Business Plan?
The basic idea behind a coffee shop is simple. The business needs to sell enough coffee products to cover costs and make a profit. However, many variables will define whether your business is successful.
A coffee shop business plan will help you plan a strategy for success. It will consider factors such as opportunities, risks, and how you will market yourself . By having a good idea of this before you start a coffee shop, you will be better placed to overcome or avoid any difficulties.
Here are some examples of how a business plan could help iron out any difficulties:
- While creating the market analysis section, you may decide that competition is too intense. If this is the case, you could look for a new area with fewer competitors or find a way to make your coffee shop business stand out.
- By creating a marketing plan before you open, you can put yourself in an excellent position to make sales from the moment you start a coffee shop.
- By creating cash flow projections, you will be able to spot any potential financial issues well before they come to light, preventing cash flow problems.
Without a business plan, you would either not know about the potential difficulties listed above, or you would be aware of them but lacking any defined strategy for overcoming them. By creating a coffee shop business plan, you can tackle issues with a clearer head.
Business plans are also essential documents if you plan to apply for funding for your coffee shop.
You’ll likely need to submit the business plan to the bank when applying for a loan, or to investors when applying for equity funding. Having a well-thought-out business plan shows you have done your market research and analyzed your idea which helps give investors an overview of the risks and potential rewards of investing.
If you are going to use your business plan to apply for funding, you’ll need to go into a little more detail about the financials of your business. This will include your income and expenses and you’ll also need to include a section that discusses how you will use the money you’re raising.
Coffee Shop Business Plan Template
A Google search will reveal differences when it comes to the exact sections you should include in your coffee shop business plan.
Nonetheless, a coffee shop business plan template will include the sections listed below. In this part of the article, we’ll go through a coffee shop business plan template and discuss what you should include in each section.
Executive Summary
The executive summary is a short overview of your coffee shop business plan. It should include all the important details about your business. When deciding what to include, think about what you would want someone to see if they told you they would only read this one section of your plan.
Open your executive summary with a statement about what your coffee shop business is all about. Talk about what it will offer that is unique and mention why you think it will be successful. Is it the only coffee house in town, for example?
Coffee shop name: AI Coffee Shop
Executive Summary:
AI Coffee will serve high-quality coffee to office workers and business people who work nearby. We will sell espresso-based drinks with a focus on providing quality at speed. We will sell coffee to take away as well as to eat in, with an indoor seating area with space for 25 customers in our coffee shop.
While there are other coffee shops in the area, we believe that there is demand for more — especially ones that focus on a high-quality product. We will also provide a light lunch menu and pastries that we believe will differentiate us from other coffee shops in the area.
Company Overview
In the company overview section, you should include practical details about your coffee shop business. This will include:
- The structure and ownership of your coffee shop
- The staff you plan to hire and what you will pay them
- Your company’s mission statement, and startup expenses
AI Coffee will be a privately held company owned entirely by Mr Smith, who will also manage the coffee shop. We will hire two full-time employees with at least two years of barista experience, as well as four part-time employees to help during busy periods.
Startup costs for the coffee shop will be $70,000, which will be spent on rent, renovations, and purchasing equipment. The owner has put up half the money and has borrowed half from a bank. Based on annual sales of $160,000 and after costs and wages, we expect to be profitable within the second year.
Market and Customer Analysis
In the market analysis section, you should include details about the local market. This can include information on competitors, such as other coffee shops or any fast-food joints, restaurants, or bars that you think will be competing for your coffee shop’s money.
You should also outline what makes your coffee shop business unique and why you think it can be successful despite the competition. You can also include wider information about the coffee industry.
In the customer analysis section, you need to include information about your target market. Include details on who they are and why you think they will like your coffee shop, with metrics where possible. If you performed market research before starting your coffee shop business plan, include that here.
Market Analysis
The coffee industry is expected to keep growing between 2020 and 2024 in the U.S. Research suggests that coffee is one of the most consumed beverages in the country, with the average person drinking two cups per day. We believe that this growth, plus the high volume of coffee people drink each day, makes opening a coffee shop a good business opportunity.
Competitor Analysis
AI Coffee will be located in a vibrant district that is seeing offices open up and new companies move in. There are currently two other coffee shop competitors in the immediate area, but we believe there is room for more.
Our shop’s main advantages are that it is closer to a new office building than the other shops. We also plan to differentiate ourselves by offering a small lunch menu, unlike any of the existing coffee shops, as well as various customer loyalty schemes .
Customer Analysis
The location of the coffee shop has high footfall, especially before and after work and during lunchtimes. The area has a high proportion of local professionals who can afford to spend money on coffee and other drinks.
The office blocks in the immediate vicinity are home to around 2,500 people. There are also other buildings being developed nearby. The location is also close to shopping and entertainment districts. We expect to receive significant revenue from passersby, who will keep us busy during the day.

Sales and Marketing Plan
Before you start a coffee shop, you should have a clear idea of what your business’s sales strategy will be.
Your sales strategy contains practical details on how you will handle sales. You should also include sales forecasts and how you have come up with these forecasts. In this section, you should include information about the products you will sell and your pricing strategy.
Your marketing plan will discuss the strategies you will use to get customers through the door. Discuss your budget and expected returns on investment. If you have a particularly complex marketing plan, you may want to create a separate document for this and only include the highlights in your business plan.
AI Coffee will open from 7.30 a.m. until 7.30 p.m. seven days a week. We expect the hours immediately before and after office hours, as well as between 12 p.m. and 1 p.m., to be the busiest of the day, with much of our sales being to take out.
We will use a commercial espresso machine and we expect to be able to produce up to a maximum of 70 cups of coffee per hour, which should be sufficient during busy times.
We will sell our espresso-based drinks and tea at between $3 and $6, depending on the drink and the size. We will sell pastries at between $2 and $5, as well as light meals at between $7 and $12. These meals will be packaged so customers can either eat them on-site or take them away.
We expect to generate around $730 per day from food and drink sales.
Marketing Plan
We will market our coffee shop to customers in the nearby area through display marketing in relevant locations. We will also use social media marketing to target people nearby, and we will connect with people through our social media accounts. We will use these accounts to keep customers updated with new menu items as well as offers and discounts.
We will also create a website and an app, which we will use to run a customer loyalty scheme . We will provide the option to order coffee through the app and pick it up at the shop. We think this will appeal to busy professionals.
Our marketing will focus on the quality of the coffee we sell, as well as the benefits of our shop to office workers ( in-app ordering ). During the week after we open, we will offer substantial discounts on coffee to attract people to our business. This offer will be central to our marketing during this period.
We will encourage repeat customers using a loyalty scheme that will give them a free cup of coffee when they buy eight drinks.
Our marketing budget will be $500 in the first two months, but we will cut this down to around $350 a month after that.
Operating Plan
The operating plan will include details of how you will run your coffee shop. This will include costs, as well as specifics about things like opening times, food and drink production, prices, and more.
It will also allow you to spot any potential conflicts. For example, if you plan to serve 150 office workers between 7:30 a.m. and 9 a.m., can you do it with only two members of staff or would you be better off hiring another employee?
You can also use this section to explain any licenses or certifications you need to get before you open your shop, as well as how you will train employees.
We will open from 7:30 a.m. to 7.30 p.m. We will always have at least three staff members in place to take care of making coffee, process sales, and keep the coffee shop tidy.
We will buy our coffee wholesale from a supplier that specializes in high-quality coffee. This coffee will cost $40 per five-pound bag. We will keep enough coffee in stock to last for at least one week.
In terms of equipment, we will use a commercial grinder to grind beans before making each cup.
We will buy pastries and light meals from a local supplier who will also take care of the packaging. We will receive a daily delivery at 7 a.m., thirty minutes before the shop opens.
We will thoroughly clean up the shop after closing to ensure it is ready for the following day. We will build HACCP processes to stay compliant with food safety regulations. All members of staff will receive training so they know about these processes.
Management Team
In the management team section, you should include who the business owners are and who will manage your coffee shop. You should write about any experience or qualifications they have that will help make them successful.
If the owners won’t be managing the coffee shop, you should include details about who will take care of the day-to-day running of the business. In this section, include how much you will be paying each of the management team as well as how any profits will be shared amongst the owners.
The owner will also manage the coffee shop. The owner has over ten years’ experience working in coffee shops, including six years in various management positions. AI Coffee will also hire two full-time employees. These employees will have at least two years’ experience working in a coffee shop. We will pay each full-time employee $22,000 a year.
We will also hire four part-time employees with or without experience to work at weekends and provide cover during the week. We will pay these employees $10 an hour.
Financial Plan
The final section of the coffee shop business plan is the financial plan. Here you need to go into detail about how your business will be financially successful.
Include operating costs (this includes the cost of equipment), loan repayments, cash flow and expected revenue (in the first year, especially). Also, include a balance sheet analysis that shows how much revenue you need to take in to become a profitable coffee business.
In this section, we will explain our financial plan, including costs, expected sales, and profit. We will also include a balance sheet. We believe this plan accurately illustrates why AI Coffee will be financially successful.
ADD FINANCIALS
Wrapping Up
That’s all for our coffee shop business plan guide. We hope that this has equipped you with enough knowledge on how to start a coffee shop and will help you with your business planning.
To find out more about getting a business up and running, check out our guides to writing a business proposal in 2019 and writing a small business marketing plan.
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How To Write Your Coffee Shop Business Plan
How to Write a Coffee Shop Business Plan

Plan For Success With a Coffee Shop Business Plan

From setting up your drive-thru coffee stand to opening a mobile coffee truck to buying an existing coffee shop, the ideas are nearly endless!
After you settle on a feasible coffee shop concept , you will have no shortage of items on your to-do list. Next is getting your game plan together.
One way to make sure that you are doing everything right (and not miss anything along the way) is to write a thorough coffee shop business plan .
In this post, we will discuss how to write a coffee shop business plan.
Additionally, we will answer some pretty common questions surrounding this essential business document that will impact your success as you start your coffee business .

Great Reasons to Write Your Coffee Shop Business Plan

To simplify your life and save you money, you want to have a game plan. And you're going to want to put your game plan in writing in a business plan.
Your Business Plan Will Save You Money
When you start any business, including a coffee shop or a drive-thru coffee stand, it is tremendously easy to go well beyond your original coffee business budget estimates. A business plan can help significantly reduce your costs, as well as time-busting mistakes.
Underestimating expenses for a coffee shop startup can be quite common, and that's even when you have a well-articulated business plan in place. However, by having a well-thought business plan covering your concept and all of your anticipated expenses, coffee equipment , etc., you will undoubtedly save yourself plenty of time, money, and the psychological impact of “sticker shock” that some new coffee shop owners experience.
If you don’t have a business plan, you will be inclined to spend more money and waste more time because it will be difficult to plan and manage your coffee shop budget efficiently.
Your Coffee Shop Business Plan Will Keep You Organized
Keeping yourself organized will not only save you time and money; it will also reduce your headaches.
However, the most important thing is that your business plan will always reveal your next steps to starting your coffee business. It will also help keep you on pace to start what needs to be started and finish what needs to be finished.
There are so many steps to be mindful of when starting a coffee shop. It would be nearly impossible to effectively manage every detail of your business without writing them down. Having your coffee shop business plan available will help you to keep on track.
Your Business Plan Ensures Nothing Gets Left Behind
Even if you have opened several businesses before, you know that many many many elements need to be addressed before moving forward with the implementation process.
Important steps that can be easily left out or neglected can cause headaches and tremendous costs (in lost time and money) as you move forward.
Your Plan is Essential for Your Audience

Your property manager:
This is the person you will most likely be renting from and will often require to see your business plan. If they have any degree of experience, they would have also seen many business plans previously.
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.
Your investors:
Besides, any stakeholder, such as a potential investor (banker or a personal friend with money), who plans on giving you startup cash will also want to see a professionally written business plan. Having a written business plan demonstrates that you have seriously thought through your business.
You, the coffee shop owner:
While it is important to write and deliver a cohesive business plan to each of these three sets, the true beneficiary of a good business plan is you .
You, as the owner, will become naturally very involved with your business plan. The process of thinking, writing, planning, and developing your plan all serve to help you better prepare for your coffee shop business.
Your Plan Helps You Get The Answers To Important Questions
There will be some important questions that you will need to answer during your coffee shop planning phase. For example, you may spend some time figuring out your coffee shop 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 with 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, getting your financial projections in order and at least meshing out the numbers in good faith will provide you with tremendous insight into just how your coffee business will function.
In fact, having a pretty good grasp on your financial position (and your financial records) can be liberating and even empowering. By knowing where you are financial, you will then make appropriate (or even better) decisions in launching your coffee shop.

Writing Your Business Plan Takes Time

Writing a thorough coffee shop business plan 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.
Write your plan in chunks and write-as-you-go. You can either let the process drain you or use it to gather up your creative energy!
One of the ways to do this by getting some help with the grunt work. We recommend getting our Complete Coffee Shop Startup Kit – print out the accompanying MS Word template and then brainstorm at your favorite coffee shop in
We believe that it will not only save you time (and money), but it will give you a better perspective, and give you added knowledge and wisdom that took other coffee shop business owners years to learn.
The process of thinking things through and writing out the process will help you better formulate your thoughts and set you on a course of action.
How Long Does a Business Plan Have To Be?
A coffee shop business plan can be as long as you want it to be. Don't think of your business plan as an assignment that needs to be turned in to your English teacher. It's completely for you – and just a few other important people.
The length of your business plan really depends on the complexity of your concept. Still, it can range anywhere from 15-60 pages once it’s filled out (Occasionally more depending on the business's scope).
We recommend that you always use headings, subheadings, and spaces between paragraphs and sections when constructing your business plan. Having spaces between paragraphs will allow you to read what you have worked hard on easily, and it will allow you to write in the margins.
A coffee shop business plan has several main sections. While there is no “right structure” for your typical business plan, they will often include everything from your mission statement to your coffee shop equipment needed to your financial position, projections, and estimates.
There is also no right order that your business plan needs to come in, just as long it follows some cohesive framework that works for you. However, keep in mind that many investors and property managers look at many business plans, so they might be used to certain sections that are labeled familiarly.

Inside Your Coffee Shop Business Plan
Here is what you will find inside a coffee shop business plan:

Related Questions:
Do i need to have a business degree or be a lawyer to write a coffee shop business plan.
The simple answer is no .
Do you need any extra training to write your coffee shop business plan?
Writing a business plan is simply about getting your business thoughts down on paper in a structured and comprehensive way. It may be overkill to hire a lawyer to write out your coffee business concept.
Now you may decide to have a lawyer or business consultant to review aspects of your coffee shop business plan – along with your lease, trademarks, etc. However, the truth is that you also do not need to be a business major or have a law degree to write down your business vision, concept, and plan.
But to make the process much easier for you, you may need a business plan template to work from.
It would be silly to start from scratch and “recreate the wheel” when many business plan templates 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 busi ness plan different from a “traditional” business plan?
A Coffee Shop Business Plan is unique from other business plans.
Different businesses require slightly different or modified business plans. For example, having a business plan for a tech startup or manufacturing company will generally emphasize different points when comparing them to a farming co-op business plan or a coffee shop business plan. Each should have its own emphasis because the audience will be different.
A traditional business plan is flexible to the specific niche that the business happens to be in. The business plan needs to address the specific and relevant business areas that pertain to its business only. Retail coffee businesses have unique requirements.
So, while there are similarities, a coffee business plan would be slight – but importantly – different than a “typical” or generic 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, cohesively writing a detailed business plan for any 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.
How Do I Use a Coffee Shop Business Plan?
Your coffee shop business plan is an organic document.
I mean by this that your business plan will grow along with you and your coffee business. Your business plan, therefore, will always change, adapt, and will 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 eventually make changes on the computer.
Remember that your coffee shop 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 scribble notes, cross out 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 it stapled but near you all the time.
Don’t be afraid of getting it dirty or 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 is used regularly to ensure that you are on the right path!

Should I pay someone to write my coffee shop business plan for me?
People often consider having someone else write their business plan. But why waste the money on someone else thinking for you?
You may not like writing at all … or doing paperwork. This may make the idea of paying someone else to write your business plan for you a desirable solution. While this is possible, we don’t recommend this.
Here is the reason why you should write your own business plan:
Your coffee business concept will emerge from your thoughts and ideas. Therefore, you're the best person to capture these ideas on paper.
Additionally, a business plan will help you work your brain muscles – it will stimulate these mental muscles that you may haven’t used in a long time.
You will need this thought stimulation for you to completely and thoroughly execute your personal plan thoughtfully. Most importantly, writing your business plan gives you a sense of real ownership of 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.

Reasons Why Some Never Start Their Business Plan:
#1: they don't understand what a “business plan” is: .
Naturally, many coffee shop owners wouldn’t have heard of creating a business plan before starting a coffee business because they never heard of the concept. You may want to familiarize yourself with many of the points the business plan will bring forward into your business's general awareness.
Some would be coffee business owners think that having a business plan might be “overkill” because they are just starting one small business.
#2: They don’t know how to start writing a coffee shop business plan:
So a business owner may know about a business plan but may not know where to start, 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 a business plan is too difficult to start:
Starting a business plan isn’t necessarily hard, but it does take work. It takes time and thoughtfulness. Writing a business plan doesn’t seem fun or anything 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 soon-to-be amazing coffee business, losing your entire life savings in a financial disaster doesn’t seem fun either. To start your coffee business plan, you don’t have to recreate 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 “overkill” because they are just starting one small business – a coffee stand. What’s hard about that, right? Well, even for a 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 to develop their business plan. However, when starting a business, you will be too busy and marred in the day-to-day operations to recall everything you have to do to open your coffee business.

Why Do Coffee Shops Fail?
Main Reasons Why Coffee Shops Fail

There are several main reasons why coffee shops fail. The failure to adequately plan is among the top reasons why coffee shops fail.
A lack of business planning can ruin any business, including a coffee business. Without planning your coffee shop setup, you'll likely make a lot more mistakes, spent a lot more money, and have plenty of headaches along the way.
For an in-depth article on why coffee shops fail, read our post, Why Do Coffee Shops Fail?
What Happens If I Don’t Have a Coffee Shop Business Plan?
Have you ever taken a road trip without a true destination? It's hard to say where you're going to end up. When you are spending and investing loads of money, you may not have the patience to plan out your coffee business.
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 lead you to failure. While developing your plan will take some effort, it will be worth it in the end – and then at the begging of your business launch!
Is There An Easy Way To Start a Coffee Shop 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 print out our Coffee Shop Business Plan template . Like our own lives, your business is what you make it .
Your business plan will help you develop 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 for your business plan, you will still have to do some work. Take the time to research, learn, and develop your concept before you write it down.
Let's get your business plan started!

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Coffee Shop Business Plan Template
Business Plan Outline
- Coffee Shop Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
Coffee Shop Business Plan
Whether you are planning to start a new business or grow your existing coffee shop, you’ve come to the right place to create your coffee shop business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their coffee shops.
A coffee shop business plan is a plan to start and/or grow your coffee shop business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
Coffee Shop Business Plan Sample
Below are links to each section of our coffee shop business plan sample:
Next Section: Executive Summary >
Coffee Shop Business Plan FAQs
What is a coffee shop business plan.
A business plan is a plan to start and/or grow your coffee shop business. Among other things, it outlines the company overview, allows you to conduct a market analysis to identify your target market, includes a sample menu, presents your marketing plan and pricing strategy to attract your local customer base, details your sales forecasts, and provides the income statement, balance sheet and cash flow statement for your coffee shop.
You can easily complete your coffee shop business plan using our Coffee Shop Business Plan Template here .
What Are the Main Types of Coffee Shops?
The different types of coffee shops include cafes, coffee bars and coffeehouses that sell coffee drinks and other snacks. Some coffee shops offer lunch and dinner menus and are close to being full-service restaurants. There are also coffee shops that are more accessible for people on the go or those who want to make their own coffee. These are retail coffee shops, drive thru coffee shops, coffee carts and trucks, and roasters or retailers.
What Are the Main Sources of Revenue and Operating Expenses for a Coffee Shop?
The primary source of revenue for many coffee shops come from its food and drink sales, which includes brewed coffee, coffee beans, seasonal drinks and refreshments, and baked goods. Gift card and merchandise sales like tumblers, mugs, and coffee makers also contribute to a coffee shop’s revenue stream.
The expected expenses for a coffee shop are the cost of coffee and food products, salaries and wages, rent, and advertising costs.
How Much Does it Cost to Start a Coffee Shop?
Opening a coffee shop business can cost anywhere from $40,000 to $100,000 depending on the size and location of the business. Additional costs such as inventory, employee salaries, and marketing expenses can range from $5,000 to $15,000 per month.
How Do You Get Funding for Your Coffee Shop Business?
The best way to get funding for a coffee shop business is through a bank loan or utilizing your personal savings, business credit cards or borrowing from friends and family. You can also look into government grants or loans, or try to find a partner who is willing to invest in your business. Whatever route you choose, be sure to have a solid coffee shop business plan for potential investors including a sales and marketing plan as well as a realistic idea of how much money you need to get started.
How to Start a Coffee Shop?
- Determine the type of coffee shop business you want to open . There are many different types of coffee shops, from small mom-and-pop shops to large chains.
- Create a coffee shop business plan. This will outline your plans for starting and running your coffee shop.
- Secure funding . You will need money to start and run a coffee shop, so you'll need to find investors or borrow money from a bank or other lending institution.
- Find a location for your coffee shop. This can be tricky, as you'll need to find a space that is affordable and has good foot traffic.
- Equip your coffee shop . You'll need to buy or lease equipment such as espresso machines, coffee brewers, and furniture in addition to the coffee beans and other food products you plan to sell.
- Hire staff . You'll need employees to run your coffee shop, so post job ads and interview potential candidates.
Learn more about how to start a successful coffee shop business:
- How to Start a Coffee Shop Business
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Latest Post
How to Write a Coffee Shop Business Plan
If your goal is to open a successful coffee shop , writing a business plan is a smart place to start. The idea of a business plan is overwhelming and even scary for MOST people – But it doesn’t have to be. To put it simply, the point of a business plan is to get the idea for your business off of the cocktail napkin into a more organized and thought out format. It forces you to ask yourself some tough questions, get organized and think things through before you spend the first dollar. The first phase of writing a coffee shop business plan is figuring out if your business concept is even remotely viable. Meaning, is there even a market for this? Then after some high level analysis of some key points of research, if it seems plausible, you move into the second phase which is compiling all the costs associated with launching the business. This will include things like rent, equipment, buildout, and so on. After you have figured out what it will cost to launch the business, you need to figure out how long it will take to get the your initial start-up investment back out of the business. Finally, you need to figure out what the next steps are for growing the business once it has become profitable. This is an essential document if you seek financing or outside investment in your coffee shop business. Again, it doesn’t have to be difficult, you just need to know what the lenders and investors are looking for. To write a coffee shop business plan just follow this step-by-step template.
7 Essential Elements in a Coffee Shop Business Plan
1: executive summary.
The executive summary is the introduction to your business plan. It highlights the most essential elements of your plan in a clear, concise manner–it shouldn’t take more than two pages. Using positive language, this section may summarize your goals and objectives, a description of the gap you’re filling in the market, and your high-level business concept. You want the person reading this section to have enough information to feel optimistic about your idea and eager to dive deeper into the details.
Even though this is the first section in your business plan, it might serve you to write it last. It needs to be refined and polished, as it can be the make-or-break section for potential stakeholders. You’ll be able to more effectively prioritize and bring to light the best parts of your business plan once you’ve written all of them out.
2: Company Summary
The company summary section of your coffee shop business plan features a nuts-and-bolts description of your company and explains the concept in depth, and what will make it disruptive and different from every other coffee shop. Include the following:
- Proposed name of the coffee shop
- Owners’ names
- Location (it may just be a city and state for now)
- Mission and Vision
- Company history (Any information that describes events that led up to the idea for the business)
- Overall unique and differentiating concept (what sets it apart)
(Remember, anybody can have a great product or service. Meaning, anybody can start a coffee shop business and sell delicious coffee, pour beautiful latte art, and have an aesthetically pleasing interior design. At this point these factors are expected by consumers – They fall within the most basic consumer needs. Sadly, most coffee shop owners believe these are their major differentiating factors… Think about the last five coffee shops you’ve visited. They probably all offered around 95% the same user experience, menu, and messaging with slight twists on the aesthetics. You need to dig deeper. How will you set your business apart from all the rest? What will make your coffee business unique, disruptive, and special? Most importantly, how will you keep your coffee business fulfilling and relevant 2 years from now?)
3: Management Team Overview
The credibility of a new business always hinges upon the credibility of its management team. The goal of this section of your plan should be to impress upon the reader the trustworthiness and credibility of your team. Include information on the background and experience of each member, and highlight their main accomplishments in this (or related) businesses up to this point in their careers.
4: Product and Customer Targeting Strategy
Every coffee shop serves a slightly different group of people. Who are YOUR people? Men. Women. Anyone who drinks coffee? This would be way too general! You first need to know your unique selling proposition that sets you coffee shop apart. (It isn’t having great coffee! Everybody in the coffee business says they have great coffee.) You need a unique point of view where you can plant your flag in the ground to differentiate from other coffee businesses. Then you need to identify who specifically will align most with your concept, vision, and unique point of view. (YOUR people, also known as a target audience.) How will you reach your target audience? How will you influence their buying behaviors? What is your marketing budget? (For more information on identifying your ideal customer, read our post here. )
5. Store Design Ideas, Equipment Choices, and User Experience
In this section, describe not only the design choices and aesthetic of your cafe, but go into detail about your disruptive and unique user experience too. Make sure the environment and user experience directly tie into your business concept and the aspects that make it unique and disruptive. Think about how customers can interact with your environment, products, and staff differently than every other coffee shop. How will it stand out? (Here’s a tip. Don’t look for your inspiration inside the 4 walls of the specialty coffee industry. Dare to be different. We suggest looking for inspiration in unlikely and unrelated places.)
These are topics we discuss in great depth in our 3-Day Coffee Business Master Class and our How to Open a Coffee Shop Online Class , we also provide sample coffee shop floor plans, equipment lists, and guide students through creating coffee shop concepts with staying power. Check out our class schedule to learn more.
6: Proposed Location and Market Analysis
Successful coffee shop owners know that location is especially important in this business. One major point to consider is that it takes more than just finding a location near a major thoroughfare, business park, residential area or shopping center. You need to make sure the “soil is fertile” with YOUR specific target customers that will actually support your coffee shop business concept. Propose a handful of specific locations that are rich with your ideal customers. Also, do some research into factors such as market size, the area’s projected growth over the next 5, to 10 years, drive-by-traffic, and walk-by traffic. (For more information on finding the right location for your market, read our post here. )
7: Financial Plan
A successful business start up is one that is able to ramp up sales fairly quickly, with the goal of bringing in more revenue than it requires to keep the business running. In other words, it needs to be able to turn a profit. This is what your financial plan can help you determine.
Sit down with a good spreadsheet software program and make educated but slightly conservative estimations on factors like:
- Estimated number of transactions per day
- Projected average $ transaction
- Estimated gross sales per day, week, month, and year
- Start-up budget based on your location’s estimated earning potential
- Operating budget including fixed expenses and prime costs
- Projected net profit after all expenses have come out
- Return on start-up investment timeline
- 5 Year growth strategy
This is one of the most critically important aspects of writing a coffee shop business plan. We teach our students a very detailed and easy to grasp process for how to project all of the above financial bullet points of the business plan and a lot more in our 3-Day Coffee Business Master Class and our How to Open a Coffee Shop Online Class . We also provide a coffee shop 5 year financial plan template and budgeting spreadsheets. Since we have helped so many students open successful coffee shops over the years, this is something we have a lot of hard data on – not just vague industry averages! If you need help writing your coffee shop business plan, we help!
Write your coffee shop business plan with expert guidance
For many entrepreneurs, writing a business plan is the first step in putting their ideas into motion. For comprehensive, step-by-step training to open, manage, or own a coffee shop, register for our Texas Coffee School classes in person and online.
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Coffee Business Categories

Open a Coffee Shop
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Run a Coffee Shop
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Barista Tips
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Leverage our expertise
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We’ve helped hundreds of students successfully launch their own coffee shop businesses. Join us in our 5-Star Rated Coffee Classes, whether you’re an aspiring entrepreneur looking to open a coffee shop, a manager, a barista or home enthusiast looking to sharpen your skills.

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IMAGES
VIDEO
COMMENTS
At its core, a cafe or coffee shop business plan is a document that explains what your business idea is and how it will succeed.
Going Beyond the Coffee Shop Business Plan · Choose the right location · Lay out your shop for optimal success · Create a menu that customers will love · Hire and
How to Create a Coffee Shop Business Plan · 1. Executive Summary · 2. Business/Industry Overview · 3. Market Analysis and the Competition · 4. Sales
Elements of a Coffee Shop Business Plan · Executive Summary · Company Overview · Team and Management · Sample Menu · Restaurant Menu Templates · Market Analysis.
Financing Needed · Espresso machine – $6,000 · Coffee maker – $900 · Coffee grinder – $200 · Food service equipment (microwave, toasters, dishwasher, refrigerator
3.1 Product & Service Description · Lowery's Gourmet Whole Bean and Wired Willey's White Coffee · Assorted Gourmet Syrups & Coffee Toppings · Chocolate, White
Coffee Shop Business Plan Template · Executive Summary · Company Overview · Market and Customer Analysis · Sales and Marketing Plan · Management Team.
A coffee shop business plan has several main sections. While there is no “right structure” for your typical business plan, they will often include everything
Determine the type of coffee shop business you want to open. · Create a coffee shop business plan. This will outline your plans for starting and running your
(Remember, anybody can have a great product or service. Meaning, anybody can start a coffee shop business and sell delicious coffee, pour beautiful latte art