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How to Write a Successful Coffee Shop Business Plan (with Template)
- By Tam Nguyen
Table of Contents
Dreaming of opening a coffee shop? You’re not alone. The coffee industry is bustling with passionate business owners eager to make their mark. However, becoming successful coffee shop owners requires more than just a love for the brew. It demands a clear vision that differentiates your coffee house in a saturated market. A well-crafted business plan not only gives life to your idea but also sets your business on a path to thrive. Whether you’re a newbie or a seasoned entrepreneur, this guide, complete with a free template, will help you craft a business plan that markets and propels your coffee venture to success.
What is A Coffee Shop Business Plan?
A coffee shop business plan is a comprehensive document that explains what your business idea is, how you intend to penetrate the coffee market, and the strategies you’ll employ to run your coffee shop successfully. When opening a cafe, many aspiring cafe or coffee shop owners underestimate the value of a structured plan. However, this document does more than just outline the needs to open a coffee shop; it gives a detailed roadmap for your new business, offering clarity on every aspect of its operation.
More than that, presenting a well-structured business plan to potential investors is essential. It not only showcases your commitment but also your understanding of the industry, making it a vital tool for securing funding. While crafting a business plan can seem daunting initially, it’s the foundation that both clarifies your idea and sets your business on the trajectory for growth and success in the competitive world of cafes and coffee shops.
Why A Business Plan Is Important For A Successful Coffee Shop Business?
1. Clear Vision and Objectives
When you set up your coffee shop, having a business plan establishes a clear vision and defines your objectives. It is the backbone that steers every decision you’ll make. Without a clear outline, you may find yourself swaying from one idea to the next. With a detailed business plan, you can present a clear business proposal to stakeholders, ensuring them and yourself of the path you plan to tread.
2. Financial Planning
A comprehensive business plan is imperative for accurate financial planning. It will include information on how much capital is required to start, what your ongoing costs will be, and the revenues you plan to generate. If you’re seeking external funding, investors will want to see how you plan to use their money, and most importantly, how you plan to make a return on that investment. If you plan to sell specialty blends or unique treats, the financial section can also help you plan a strategy for pricing, promotion, and sales forecasts.
3. Operational Efficiency
Operational efficiency is the linchpin that holds all business operations together. A business plan will map out every detail, from supplier agreements to employee schedules. You may want to create special events or loyalty programs for regular customers, and this is where a business plan can help you plan a strategy for success. It becomes the reference point, ensuring that daily tasks align with the broader objectives, guaranteeing that resources, time, and efforts are used optimally.
Step-by-step Guide To Write A Coffee Shop Business Plan
1. Executive Summary
The Executive Summary is like the introduction of a novel – it provides a snapshot of what is to come. Typically, you write the executive summary last, even though it appears first in your business plan. It encapsulates the essence of your coffee shop’s mission, objectives, and financial overview, succinctly explaining what your business concept is about. This section is crucial because many coffee shops fail to engage potential investors right off the bat. Ideally, it should be concise – a page or two.
What should you cover in an Executive Summary?
- Introduce Your Coffee Shop or Cafe: Provide a company overview, giving readers insight into what makes your coffee shop unique from the myriad of coffee bars in the market.
- State Your Mission and Vision: Describe what drives your coffee business and where you see it in the future.
- Outline Your Objective: Define clear, measurable goals that you aim to achieve.
- Provide a Financial Overview: Highlight projected profit margins, a brief balance sheet, and other pertinent financial data.
2. Coffee Shop Business Description
This section paints a picture of your coffee shop. It’s where you elaborate on how you plan to infuse the local coffee market with your unique brews and pastries.
What should you cover in the Coffee Shop Description section?
- Coffee Shop Concept: Dive into the types of coffee drinks you plan to offer, whether it’s a rich espresso or a classic brewed coffee.
- Unique Selling Proposition: Discuss what makes your coffee shop stand out, be it a special blend of coffee beans, a unique roasting method using a specific coffee roaster, or artisanal pastry offerings.
- Operational Plan: Briefly touch upon how you’ll manage your coffee shop, from sourcing beans to serving cups of coffee.
3. Market Analysis
Before pouring your first espresso, performing market research before starting your coffee business is essential. This section dives deep into understanding your potential customer base and the coffee industry landscape in your area.
What should you cover in this section?
- Target Market: Describe your ideal customer. Are they local residents, office workers, or students?
- Location: Discuss the significance of your chosen location. Are there many coffee shops in the area? How does your location cater to your target market?
- Competition: Analyze existing coffee shops. What coffee and food products do they offer? What pricing strategy do they employ? How will your coffee shop compete or complement them?
4. Organization and Management
Behind every successful coffee shop is a robust organizational structure and a competent management team.
What should you cover in the Organization and Management Plan?
- Coffee Shop Ownership Information: Highlight the business’s legal structure.
- Profiles of Your Coffee Shop Management Team: Include details about your baristas, perhaps a part-time accountant, and someone to manage marketing. It can be helpful to create profiles for each role, detailing responsibilities and expertise.
5. Sample Menu
Your menu is the heart of your coffee shop. It’s more than just a list of coffee and tea; it’s an expression of your brand.
What should you consider when creating a Sample Menu?
- Menu Items: Detail the types of coffee, espresso drinks, and pastries you plan to offer. Maybe consider including non-coffee items like teas or specialty drinks.
- Unique Selling Proposition: Reiterate what makes your coffee or food items different from other coffee shops in the area.
- Menu Pricing : Discuss your pricing strategy, keeping in mind profit margin, competitors’ prices, and your target customer base.
6. Marketing Plan
To brew success, it’s not enough to have a fantastic coffee product; you must effectively market it.
What should you cover in a Marketing Strategy for your Coffee Shop Business?
- Define Your Brand: What voice, theme, or emotion do you want your coffee shop to evoke?
- Lay out your plans for social media campaigns, local partnerships, loyalty programs, SEO for website, and other promotional strategies.
- Considering using an online food ordering system in your food truck
- Create a digital menu with QR code to make your menu easy for your customers to access online
7. Operations Plan
Efficiency is key to the daily grind of running a cafe. The operations section provides a detailed look at the day-to-day operations of your coffee shop business.
What Operational Issues should you address in your Business Plan?
- Supply Chain: Where will you buy your coffee beans? Who will be your coffee roaster?
- Operating Hours: Consider the best times to cater to your target market.
- Staffing: Detail roles, such as barista, manager, and part-time support.
- Equipment: List down essential equipment, from espresso machines to ovens.
8. Financial Plan
In this crucial section of your business plan, delving into the financial specifics is paramount to lay out a concrete roadmap for the fiscal aspects of your coffee shop.
How Much Does It Cost to Start a Coffee Shop?
Starting a coffee shop is not just about brewing the perfect espresso; it’s also a substantial financial commitment. The cost for opening a coffee shop can range from $80,000 to $250,000. These costs can vary widely based on factors such as location, size of the establishment, equipment quality, and inventory requirements. Moreover, the process of opening a coffee shop might also involve unexpected expenditures, so it’s essential to account for some buffer in your budget.
How Many Ways to Fund Your Coffee Shop?
There are multiple avenues for funding your coffee venture. Traditional bank loans, personal savings, angel investors, crowdfunding campaigns, and partnerships are just a few options. It’s crucial to assess which option aligns best with your business vision and financial situation.
Important Questions to Consider When You Create Your Funding Request If you’re seeking funding, there are several questions you’ll need to answer in your business plan:
- How much money do you need to start and maintain your coffee shop until it becomes profitable?
- What will the funds be used for specifically?
- How do you plan to handle financial challenges that might arise?
- How do you plan to repay any loans or provide a return on investment?
9. Financial Projections
The financial projections section of your business plan forces you to translate your coffee shop vision into numbers, ensuring you’ve accounted for all key metrics that can make or break your venture.
This is the point where your coffee shop’s total revenues equal its total costs. Simply put, it’s when you neither make a profit nor a loss from selling coffee.
Use this formula: Fixed Costs / (Price – Variable Costs) = Break Even Point
Projected profit and loss statement:
This will provide a forecast of your expected income and expenses, giving a clear view of your venture’s profitability.
Cash flow analysis:
Essential for understanding the liquidity of your business, this tool is especially crucial for coffee shops, considering the fluctuating expenses and incomes coffee shops offer. When drafting this, consider who will read it, as stakeholders like investors or lenders might have specific expectations.
Coffee Shop Business Plan Template
- Mission: To offer the community high-quality coffee in a comfortable and vibrant environment.
- Vision: To become the go-to local coffee spot that fosters community connections and coffee appreciation.
- Coffee Shop Description: “Java Junction” will be a modern coffee hub that emphasizes direct-trade coffee beans and a relaxed, inclusive atmosphere.
- Costs: Estimated initial costs are $125,000.
- Profits: Projected annual profit by year two is $75,000.
2. Description of the Coffee Shop
- Coffee Shop Concept: A community-focused café emphasizing artisanal methods.
- Coffee Shop Name: Java Junction
- Coffee Shop Type: Sit-down café with an adjacent mini-library.
- Location: Main Street, Downtown Area – chosen for its high foot traffic.
- Order Fulfillment: Orders taken at the counter with table service for food.
- Working Hours: Mon-Fri (7 am – 9 pm), Sat-Sun (8 am – 10 pm).
3. Menu Offer
- Type of Food and Drink: Coffee, teas, pastries, and sandwiches.
- Offer: From classic espresso shots to unique blends like “Lavender Latte”.
- Unique Selling Point: Every coffee product uses direct-trade beans, ensuring farmer fairness.
4. Market and Competition Analysis
- Market Analysis: The local population includes a mix of professionals, students, and tourists. Many search for quiet spots to work or relax.
- Target Customer: Professionals aged 25-40 and students.
- Size of the Target Customer: Approximately 15,000 individuals.
- Competition Analysis: Three established coffee shops within a mile.
- Size of the Competition: Ranging from small boutique coffee shops to a larger chain.
- Competitors’ Offer: Basic coffee drinks, with limited specialty items.
- Competitors’ Prices: Average of $4 for a coffee drink.
5. Investment Plan (Detailed Cost Analysis)
Investment Cost (One-off): $75,000
- Equipment: $30,000
- Renovations: $20,000
- Initial Stock: $10,000
- Licenses: $5,000
- Miscellaneous: $10,000
Operating Costs (Monthly): $17,000
- Rent: $3,000
- Salaries: $10,000
- Utilities: $1,000
- Stock: $2,000
- Marketing: $1,000
6. Financial Forecast
Year one is projected to break even, with a profit of $50,000 expected in year two, and $75,000 in year three, considering growth and expanding customer base.
- Owner: Jamie Smith, a coffee enthusiast with a business degree.
- Manager: Alex Brown, previously managed a successful coffee chain for five years.
- Baristas: A team of 4 skilled individuals passionate about coffee.
8. Marketing Plan
Java Junction will use a mix of social media marketing, local print advertising, and loyalty programs to attract and retain customers. Regular events, such as “Buy Our Coffee Day” and collaboration with local businesses, will drive foot traffic and community engagement, integral components for starting your coffee shop and making it successful.
This coffee shop business plan sample is hypothetical and serves as a template. Tailoring specifics to your local market, vision, and unique aspects will be necessary. Every coffee shop has nuances that can make them successful, whether it be the coffee products they sell, the environment they cultivate, or the events they host. Focus on what will make your coffee shop stand out and be sure to engage your community.
Tips For Writing a Business Plan For a Coffee Shop
Your business plan becomes the blueprint of your vision. Here are essential tips to consider:
Comprehensiveness is Key: Ensure your plan encompasses all sections you should include, such as marketing, financial projections, and operations. A well-rounded plan provides a holistic view of your business.
Tailor to Your Audience: If you’re presenting to potential investors, focus on profitability and growth projections. For a landlord, emphasize the benefits your coffee shop will bring to their property.
Specialize in Marketing: Given the competitiveness in the coffee industry, it’s crucial to have a solid marketing plan. If marketing isn’t your strength, consider hiring someone to do marketing for your venture. A strong online presence, loyalty programs, and community engagement can set you apart.
Research Your Market: Understand what nearby coffee shops include in their offerings. Identify gaps in the market and strategize on how your shop can fill them.
Stay Flexible: While a business plan provides direction, remain adaptable. The coffee industry is dynamic, and your ability to pivot can prove invaluable.
Separate Sections for Clarity: If your plan becomes too dense, you might want to create a separate document for specific sections like a detailed marketing strategy or an in-depth market analysis. This makes your primary business plan concise and more readable.
Frequently Asked Questions
1. how profitable is owning a coffee shop.
Owning a coffee shop can be profitable, depending on factors like location, quality of products, and management. On average, after expenses, many coffee shops report a profit margin of around 3% to 5%, with some successful ones achieving even higher. However, it’s essential to factor in initial setup costs, ongoing expenses, and market competition.
2. How do I start a coffee shop business plan?
Starting a coffee shop business plan involves multiple steps. Begin by defining your coffee shop’s mission and vision. Conduct market research to understand your target audience and competitors. Then, detail out sections like your product offerings, pricing strategy, marketing plan, financial projections, and operational procedures. If you’re thinking of opening a coffee shop, a well-thought-out business plan is indispensable.
3. What is a business plan for a coffee shop?
A coffee shop business plan is a detailed document that outlines your coffee shop’s objectives, strategies, and operational procedures. It acts as a roadmap, guiding you from the startup phase to establishing a thriving business. Moreover, if you need a coffee shop business loan or investment, this plan becomes crucial in convincing stakeholders of your venture’s viability.
4. What are the 4Ps in a coffee shop business plan?
The 4Ps stand for Product, Price, Place, and Promotion. In the context of a coffee shop:
- Product: What type of coffee and related products will you offer?
- Price: How will you price your coffee? Will it be premium or competitive?
- Place: Where will your coffee shop be located? Is it accessible to your target audience?
- Promotion: How will you market your coffee shop? Will you offer promotions or loyalty programs?
These elements help in creating a marketing strategy tailored to your coffee shop’s unique needs and market position.
Launching a coffee shop is not just about brewing the perfect cup but weaving a narrative that resonates with your community, fostering an ambiance that people gravitate towards, and maintaining a seamless operation that drives profitability. The meticulous creation of a business plan is a pivotal step in this endeavor. It’s the beacon that guides budding entrepreneurs through the complexities of the coffee industry. In such a competitive marketplace, a well-structured, comprehensive business plan can make the difference between a fleeting venture and a thriving institution. To potential coffee shop owners, embrace the process, let your passion shine through in your plan, and remember that every great coffee shop started with a simple idea, much like a single coffee bean ready to brew greatness.
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Coffee Shop Business Plan Template
Business Plan Outline
- Coffee Shop Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
Coffee Shop Business Plan
Whether you are planning to start a new business or grow your existing coffee shop, you’ve come to the right place to create your coffee shop business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their coffee shops.
A coffee shop business plan is used to start and/or grow your business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
Coffee Shop Business Plan Sample
Below are links to each section of our coffee shop business plan example:
Next Section: Executive Summary >
Coffee Shop Business Plan FAQs
What is a coffee shop business plan.
A business plan for a coffee shop is a plan to start and/or grow your business. Among other things, it includes your company overview, allows you to conduct a market analysis to identify your target market, includes a sample menu, presents your marketing plan and pricing strategy to attract your local customer base, details your sales forecasts, and provides the income statement, balance sheet and cash flow statement for your coffee shop.
You can easily complete your coffee shop business plan using our Business Plan Template for a Coffee Shop here .
What Are the Main Types of Coffee Shops?
The different types of coffee shops include cafes, coffee bars and coffeehouses that sell coffee drinks and other snacks. Some coffee shops offer lunch and dinner menus and are close to being full-service restaurants. There are also coffee shops that are more accessible for people on the go or those who want to make their own coffee. These are retail coffee shops, drive thru coffee shops, coffee carts and trucks, and roasters or retailers.
What Are the Main Sources of Revenue and Operating Expenses for a Coffee Shop?
The primary source of revenue for many coffee shops come from its food and drink sales, which includes brewed coffee, coffee beans, seasonal drinks and refreshments, and baked goods. Gift card and merchandise sales like tumblers, mugs, and coffee makers also contribute to a coffee shop’s revenue stream.
The expected expenses for a coffee shop are the cost of coffee and food products, salaries and wages, rent, and advertising costs.
How Much Does it Cost to Start a Coffee Shop?
Opening a coffee shop business can cost anywhere from $40,000 to $100,000 depending on the size and location of the business. Additional costs such as inventory, employee salaries, and marketing expenses can range from $5,000 to $15,000 per month.
How Do You Get Funding for Your Coffee Shop Business?
The best way to get funding for a coffee shop business is through a bank loan or utilizing your personal savings, business credit cards or borrowing from friends and family. You can also look into government grants or loans, or try to find a partner who is willing to invest in your business. Whatever route you choose, be sure to have a solid coffee shop business plan for potential investors including a sales and marketing plan as well as a realistic idea of how much money you need to get started.
How to Start a Coffee Shop?
- Determine the type of coffee shop business you want to open . There are many different types of coffee shops, from small mom-and-pop shops to large chains.
- Create a coffee shop business plan. This will outline your plans for starting and running your coffee shop.
- Secure funding . You will need money to start and run a coffee shop, so you'll need to find investors or borrow money from a bank or other lending institution.
- Find a location for your coffee shop. This can be tricky, as you'll need to find a space that is affordable and has good foot traffic.
- Equip your coffee shop . You'll need to buy or lease equipment such as espresso machines, coffee brewers, and furniture in addition to the coffee beans and other food products you plan to sell.
- Hire staff . You'll need employees to run your coffee shop, so post job ads and interview potential candidates.
Learn more about how to start a successful coffee shop business:
- How to Start a Coffee Shop Business
- Try it out »
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.
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
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.
In the company overview section, you should include practical details about your coffee shop business. This will include:
- The structure and ownership of your coffee shop
- The staff you plan to hire and what you will pay them
- Your company’s mission statement, and startup expenses
While this may seem like a lot of work, the good news is this also serves as a way to kill two birds with one stone. As you flesh out your company’s goals & vision statements, it’s important to track this information in an internal wiki . Not only will this help your business stay true to its course, but it can also serve as a great resource for your staff.
AI Coffee will be a privately held company owned entirely by Mr Smith, who will also manage the coffee shop. We will hire two full-time employees with at least two years of barista experience, as well as four part-time employees to help during busy periods.
Startup costs for the coffee shop will be $70,000, which will be spent on rent, renovations, and purchasing equipment. The owner has put up half the money and has borrowed half from a bank. Based on annual sales of $160,000 and after costs and wages, we expect to be profitable within the second year.
Market and Customer Analysis
In the market analysis section, you should include details about the local market. This can include information on competitors, such as other coffee shops or any fast-food joints, restaurants, or bars that you think will be competing for your coffee shop’s money.
You should also outline what makes your coffee shop business unique and why you think it can be successful despite the competition. You can also include wider information about the coffee industry.
In the customer analysis section, you need to include information about your target market. Include details on who they are and why you think they will like your coffee shop, with metrics where possible. If you performed market research before starting your coffee shop business plan, include that here.
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 .
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 .
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.
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.
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.
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.
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.
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 Create a Coffee Shop Business Plan and Executive Summary: Free Template & Guide
By Debra Weinryb
Before you open a coffee shop, you will need to have a coffee shop business plan. This important document acts as a roadmap for your coffee shop business adventure – with everything you need to turn your business dreams into a reality.
If you’re passionate about coffee but have never written a business plan before, it can be nerve-racking to start. To help you out, we’ve put together a complete guide to writing a successful coffee shop business plan. In this guide, we’ll cover:
- What is a coffee shop business plan?
- How to write a business plan for a coffee shop
- The 10 sections of every successful coffee shop business plan
- A free coffee shop business plan template
Create a custom business plan for your coffee shop concept with this free template.
What is a Coffee Shop Business Plan?
A coffee shop business plan is a document that explains what your business idea is and how it will succeed. It answers several questions, like how you will set up your coffee shop, how you will fund your business, and what revenue you expect to make. It includes information about your marketing plan, sales strategy, coffee shop customers , pricing structure, competitors, required labor, and financial plan.
Similar in length to a traditional restaurant business plan , it’s a succinct document that usually spans 15-20 pages, but no more than 30 pages. Coffee shop business owners can make their plans pop with visuals like photos and designs of their coffee house, and site plans of their retail store. Charts and graphs are also used to show financial inventory information, like how much coffee beans will be purchased monthly and at what cost, for example.
Once complete, you will be able to show your coffee house business plan to potential investors, bankers, and business partners. That’s why it’s so important to dedicate a large amount of time and energy into getting your java shop business plan underway early on.
How to Write a Business Plan for a Coffee Shop
With the proper guidance, your brew shop business plan can be easy to write. That’s why having a coffee shop business plan template is a useful aid for conceptualizing your business and goals before you start to write. Additionally, having a coffee shop business plan example can help you think of key elements to demonstrate your coffee shop’s potential for growth and profitability – which are both important to attract funding.
Elements of a Coffee Shop Business Plan
Executive summary for a coffee business .
Start with your executive summary – a short and high-level overview of each section in your coffee house business plan. In any business plan sample for a coffee shop, you’ll see that this is the first section because it gives readers crucial information about your business before you dive into details.
The executive summary section describes your business concept, the problem it solves, your target market, financial highlights, lease information, as well as your vision for the menu, products, and how you will service coffee – whether that’s in a kiosk, drive through, pickup, or sit-down coffee shop.
As you write your executive summary, consider who will read your brew shop business plan and what you would like them to know. After all, you want to capture your reader’s attention and entice them to continue to read or even invest!
Here are a few key points of interest you can mention in your executive summary:
- Ambiance: The character and atmosphere of your coffee shop
- Location: Information on your potential foot traffic, facility/lease, and seating capacity.
- Kitchen storage: Space for multiple blends of coffee or a high-end espresso machine.
- Goals: Your mission statement and guiding principles that will drive your success.
- Funding: What funds you need and how you will use them to achieve your vision.
The Business Overview section takes a deeper dive into the coffee industry as a whole, your local market, and what makes your coffee shop model unique among the competition. Here, start by giving a brief overview as to when and why you started your coffee shop business. In addition, you can include major achievements such as hitting target sales goals or opening new coffee shop locations.
In this section, you can also go into more detail about the business operations of your neighborhood coffee shop . For example, explain what coffee and food products you will offer, your hiring and labor practices, and how you’ll brew coffee. This, of course, will depend on your coffee shop business model.
Here are a few types of coffee shops and how they could be described:
- Grab-and-go coffee shop: Pickup or drive through only, so folks can grab a cup of coffee in a heartbeat
- Traditional coffee shop: Sells baked goodies and a variety of coffee drinks in a relaxed atmosphere
- The coffee bar: Like a homey living room, with lounge music, WiFi, and fresh coffee
Management and Staff
In this section, you will talk about ownership. Start with the business owner(s) who will manage your coffee shop, and talk about their experiences/qualifications that will make them successful. You’ll also include details of who will take care of your day-to-day coffee shop operations.
Every coffee shop will need baristas who take care of sales and make drinks, but those that sell food may also need someone to operate basic kitchen equipment. Additionally, you may want to hire someone to do marketing and advertising, or an accountant to take care of your bookkeeping.
After deciding on what jobs you want to create, you’ll need to identify if they are part-time or full-time, how you will recruit/train them (e.g., barista training), and what you will pay them in wages and benefits. Your employees will factor into your financial forecast and expenses later on in your business plan for a coffee shop, so it’s essential to get a head start on your hiring budget.
Coffee Shop Market Analysis
Your Market Analysis section should show that you’ve looked at your target market, assessed your location, and understand how you’ll compete against other coffee shops in the area. Remember to consider what makes your restaurant unique and what will help it stand out. Here are two ways you can do just that:
Mention if your coffee shop is in a central location, such as near a college where students break for lunch, or next to office buildings where professionals drop in on their way to work. If you are one of many coffee shops in an area, consider pointing out what makes you different, like your wide variety of specialty coffees and the quality of your food.
Include information about your ideal customer – with details on who they are, why they shop at your coffee shop, and any metrics. If you performed market research before starting your coffee shop, include that too. For example, if you have data on a high demand for espresso in your area, the sales potential for a drive-through espresso stand could be very promising.
A section with a sample menu lets investors know exactly what you’ll be serving. Keep in mind that your sample menu should be a differentiator – otherwise, why would investors think that customers should choose your coffee over competitors who serve similar drinks?
Here are a few tips for choosing what to include in your great sample menu:
- Think about the types of coffee beans that could set you apart. Maybe you only serve organic coffee beans, unlike your competitors.
- Cater the types of drinks you serve to your target market. For a young customer, sweet frappuccinos, hot chocolates, and drinks topped with whipped cream can be popular. For health-conscious consumers, options like tea and “light” coffee may perform better.
- If your customers will be hungry, such as students on a lunch break, or employees on their way to work, then consider including food items like pastries.
Marketing Plan and Publicity
An effective marketing plan is essential for bringing new customers through your coffee shop’s door and retaining your loyal guests. In this section, start by describing how you want to drive incoming traffic, in addition to what budget you have in mind, and your expected return on investment. If you have a lot of detailed information, you may want to create a separate marketing plan document.
To cover all your bases, you can include the Four Ps of Marketing:
- Product: What beverage and food products you will offer? For example, will you offer non-coffee drinks, frappuccinos, espresso, or cold brews?
- Price: What is your average price point and how does it compare to competitive coffee shops?
- Place: The location of your coffee shop and how it will impact your success. For example, will you operate kiosks, and if so, where will they be placed to get the most foot traffic?
- Promos: How will you drive customers to your location(s)? Examples include live music, giving free samples, advertising, or partnering with influencers or other organizations.
Business Operations and Operating Plan
The business plan operations section includes the physical requirements of your coffee shop business, like retail space, specialized equipment, supplies, and labor. When describing your business’ operational expenses, also consider showing where your coffee shop is trying to save money. For example, if you are buying used furniture or equipment, let your reader or potential investor know how you are cutting losses.
Here are a few areas you can include in the operating plan section:
- Space you plan to lease, buy, or rent for your coffee shop
- Parking spaces for a truck or for customers to access your coffee shop
- Coffee machines like a coffee grinder, a brewing machine, or a hot water dispenser
- Specific arrangements like a sandwich prep table, counter space, or a display case
- Technology such as a coffee shop POS to process transactions and track inventory
- List your suppliers according to type – for your coffee beans and other food and drink products
- Menu items you will buy vs. make in your coffee shop, such as croissants or cookies
- The frequency at which you need to restock your coffee shop inventory
- Staff such as a Barista to brew coffee
- Staff to do food preparation, menu creation, and cleaning
- A manager to oversee payroll and human resources
Financial Forecast and Expenses
This is an important section, especially if you need to attract investors to your coffee shop. Since coffee shops are often smaller storefronts, usually with a lower profit margin , this section needs to emphasize how your coffee shop business will grow and be profitable in the long-term.
Your financial forecast and expenses section should include the following:
- Cash flow statement with monthly projections for all your coffee shop purchases
- Balance sheet to give investors a snapshot of your assets, liabilities and equity
- Break even analysis to demonstrate the sales you need in order to make a profit
Coffee Shop Business Plan: Next Steps and Plan Template
To get ideas of details to include, use a coffee shop business plan sample.
Whether you own a coffee shop or are just starting out, writing a coffee shop business plan is essential to your success. In such a highly competitive coffee market , you need a business plan to show potential investors what makes your store stand out.
If you’re looking for a coffee shop business plan example, a template is a great place to start. By using a coffee business plan template , you can improve your chances of securing funding or attracting new business partners. Using a business plan sample for a coffee shop will also keep you organized and show readers how your coffee shop can be successful.
FAQs: Coffee Shop Business Plan
If you have any lingering questions, we’ve answered the top coffee shop business plan FAQs.
How profitable is a coffee shop?
A coffee shop business’ profits can range from 2.5% to 85% of gross sales, according to this Chron article . The amount of profit depends on the size of your coffee shop – smaller coffee shops usually have lower profits.
How do you start a coffee shop business?
To start a coffee shop business, do lots of research on the industry and your market so you can plan how to separate yourself, your menu, and the quality of your products from competitor coffee shops. Consider where your coffee shop might be located and what kind of customer base you’ll have. Map out the expected costs for operations, marketing, etc. in a financial plan. This will help you plan a strategy for success so you can create a strong coffee shop business plan to present to potential investors.
How much budget is needed to open a coffee shop?
How much budget you need to open a coffee shop will depend on the location of your business. Start by doing some research on real estate in the area where you want your coffee shop business, suppliers for your menu items, cost of hiring employees, and other operating costs. Also, consider what kind of marketing campaigns – such as email, direct mail, and advertisements – that you might want to run and include those in your budget too.
How do you start a business proposal for a coffee shop?
To start a business proposal for a coffee shop, use a coffee shop business plan sample and make sure you include the key sections: an executive summary, business overview, management and staff, market analysis, marketing and publicity, operations plan, and financial forecast and expenses.
Also, make sure you do enough research before you start so you understand how a coffee shop business works, your market, and your competitors, and have relevant facts and figures to support the plan for your new business.
Debra was a Content Marketing Specialist at TouchBistro, writing about the latest food and restaurant industry trends. In her spare time, Debra enjoys baking and eating together with family and friends.
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Coffee Shop Business Plan Template
If you want to start a coffee shop business or expand your current one, you need a business plan.
Over the past 20+ years, our coffee shop business plan template has helped over 7,000 entrepreneurs and business owners create business plans to start and grow their coffee shops.
Below is an example coffee shop business plan template that will help you write your own coffee shop business plan:
2. Company Overview – Your company overview should include a detailed explanation of the company’s concept, location, products/services offered, customer profile and market size.
3. Industry Analysis – This section involves researching various aspects of the coffee industry such as its size, competitive environment, key players and trends.
4. Customer Analysis – The customer analysis should include a description of your target audience, their needs and how you plan to attract and retain these customers.
5. Competitive Analysis – This should include a description of your competitors, their strengths and weaknesses and how you plan to compete with them.
6. Marketing Plan – Your marketing plan should outline the strategies and tactics for achieving your specific marketing objectives.
7. Operations Plan – This should outline the day-to-day operations of the business, its personnel structure, hierarchy and supplier relationships.
8. Management Team – This section should include a description of the key players in the company, their skills and responsibilities.
9. Financial Plan – The Financial Plan should include your businesses’ financial statements and funding requirements.
Next Section: Executive Summary >
Coffee Shop Business Plan FAQs
- What Is the Easiest Way to Complete My Coffee Shop Business Plan?
- Growthink’s Ultimate Coffee Shop Business Plan Template allows you to quickly and easily complete your business plan.
- Where Can I Download a Sample Coffee Shop Business Plan PDF?
- You can download our coffee shop business plan PDF template here. This is a coffee shop business plan example that you can use in PDF format.
- What Is a Coffee Shop Business Plan?
- Why Do You Need a Business Plan?
1. A business plan sets a clear direction: Perhaps the most significant benefit of having a business plan is that it gives you a clear direction and purpose. It outlines your goals and objectives, how you plan to achieve them, and the timeline and resources required. A well-written business plan also clarifies your target audience and helps you understand their needs and preferences. With a solid business plan, you’ll have a better idea of where to focus your efforts and resources, which can save you time, money, and frustration.
2. Helps secure funding: Opening a coffee shop requires a significant investment in equipment, inventory, rent, and staffing, among other expenses. To secure funding from investors or lenders, a business plan is essential. It demonstrates your knowledge of the industry and market trends, your marketing strategy, financial projections, and how you plan to mitigate risks. A well-thought-out business plan can help convince potential investors that you have a viable idea and are a good investment.
3. Provides a roadmap for growth: A business plan is not just for starting your coffee shop; it’s also essential for long-term success. It’s a roadmap that can help you navigate the ups and downs of running a business. A good plan should contain measurable goals that you can track and adjust as needed. It should also have contingency plans if things don’t go as expected. As your coffee shop grows and evolves, refer to your business plan to ensure that you stay on track and adapt to changing market conditions.
4. Attracts and retains employees: In addition to investors and lenders, your business plan can also help attract and retain employees. A clear business plan shows potential employees what your vision is and what you want to achieve. It also shows them how they can contribute to your success and how you plan to reward them for their efforts.
5. Enhances credibility and professionalism: Finally, a business plan can enhance your credibility and professionalism. It shows that you have thought through your ideas and have a clear plan for how to execute them. This level of detail and preparation can go a long way in building trust with potential investors, lenders, employees, and customers. A well-written business plan can also make you stand out from your competition by demonstrating your attention to detail, industry knowledge, and commitment to success.
- What Are the Sources of Funding for a Coffee Shop?
- The main sources of funding for a coffee shop are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business and ultimately help you secure funding.
COFFEE SHOP BUSINESS PLAN OUTLINE
- Coffee Shop Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
- 10. Appendix
Start Your Coffee Shop Plan Here
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So, why have a business plan?
1. commence with a goal, 2. study your target market and competition, 3. map a marketing strategy, 4. have a financial plan in place, 5. prepare your executive summary last.
- Startup Business Plan
- Traditional Business Plan
- Strategic Business Plan
- Growth Business Plan
- Feasibility Business Plan
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- Executive summary
- Business synopsis
- Product and service description
- Marketing analysis
- Sales and marketing strategy
- Organization and operation
- Financial plan
- Ample significant information on financial matters
- Clear identification of the business’ industry
- Inclusion of the operational and management features
- Information on how the business’ sales and marketing will function
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Setting Coffee Shop Goals
Attainable and measurable goals are everything both in life and business: without them you can’t truly track your progress or success. A lot of people’s goal going into business is to make money and, yes, that’s fair enough. But the best way to actually achieve this kind of massive goal is to plan out a bunch of smaller and more immediate ones. The key to achieving the vision you have for your business is to set your goals and have a business plan in place for those goals.
Factors Within Your Control
There are some things in life and business that you simply can’t control. This is a fact that you’re going to have to come to terms with pretty fast so you can focus on things you can control. You can focus on your coffee quality, but you can’t control an increase in coffee prices. You can control the ways you’re merchandising your products, but you can’t control a medical report stating that coffee increases your risk for heart problems.
When you set your goals, make sure you are focusing on things you can actually affect. There are plenty of aspects of your business you have complete or at least the majority of control over. These are the ones you have to focus on and learn not getting caught up in the other messes.
Setting Specific Goals
Looking at a massive long term plan can be really overwhelming and is a recipe for hopelessness and indecision during an important process. That’s why you should set your long-term goal and then break that big goal down into small, short-term goals. These will be stepping stones for you to follow towards your final destination.
Set Your Long-Term Goals
This type of goal is something you’re wanting to accomplish over the next 3-5 years. These may be things like financial goals like sales goals, profit goals, or expansion goals. You might set your goal as “make $25,000 a month in sales”. These are the most typical long-term goals we’ve seen business owners make.
Set Your Short-Term Goals
Once you’ve determined your long-term goals, it’s time for you to break these big ideas down into smaller little ones. If your coffee shop is currently making $10,000 a month in sales, and you still want to get that $25,000 a month, you’re going to need to make a bunch of smaller plans to move it up to where you want. You want to create a set of plans that will act as your action plan that you can measure in increments to track your progress.
Think of it as a two-story house: you’re on the first floor and you want to get up to the second level. You’re going to need a staircase! Each step on that staircase will take you to the next and then the next, until you reach that second floor. As basic as that concept was, it’s pretty effective. It helps to visualize that to see that you don’t just automatically jump from the first floor to the second; you went up a series of steps to get there.
This is the same with business. You can’t expect your business to jump to the next level without defining the small steps to get you there. To do this, break down your long-term objective into daily, weekly, monthly, and annual goals. To increase your revenue , you might set your goal to sell 20% more pastries. To sell more pastries, your goals might be to train your employees to ask customers if they want food, and make sure your pastry case is always clean and appetizing.
Creating a Plan and Putting it Into Action
The next step is actually coming up with the plan. This involves deciding on which specific actions you’re going to take on a daily, weekly, and monthly basis to stay on top of your goals. You’re also going to want to be as specific as possible with who’s executing each and what results you want to see. The more detail the better! This makes for a good goal. Once you come up with a specific goal, ask yourself “How exactly do I plan on accomplishing this?” The answer to this isn’t an easy answer, but the more you work through that question, the clearer and more detailed plan you’ll have.
Focus and Evaluate
You’re going to want to focus on each step that you’ve created to see which specific actions can be taken to get this goal accomplished. You can get as nitty gritty specific as you’d like; the more the better so that you know exactly what you’re doing to get to the next step in the plan. It’s also essential to talk to your employees whatever goals you set because they’re going to be a massive part of the process too. You’ll want to keep track of their progress towards the goal and make sure they’re staying on track. It’s helpful to give them feedback and keep everyone updated on the overall progress towards each goal.
Once you set up your smaller periodic goals, you can then evaluate how realistic and attainable they are. After sitting down and checking out your goals, you might need to change things if they’re a little too unrealistic like wanting to go from $10K to $20K in sales in a week. You’re going to want to reevaluate your goals along the way to make sure you’re on track and that they’re still relevant. If you’re continuing to exceed your goals, you might want to make them more challenging. On the other hand if it feels like you’re not meeting any goals that you’re setting, you might want to adjust them. Aiming high is good, but not accomplishing any goals is demoralizing. Not hitting any goals also suggests they weren’t the right goals in the first place.
Goals Achieved? What’s Next?
You’ve achieved the goals, so now what? Well the answer to this is twofold:
First you’re going to want to take a look back and see how you did through that process. Take a look at the entire process and the results that came from it as a whole and all of the details. Ask yourself these questions:
- What was achieved?
- What was learned?
- What could’ve been done different?
- How can we improve?
- How realistic were the goals?
- Were they the right goals for what we wanted to get done?
Once you take some time to reflect, it’s time to make new goals and plan of action and the whole process starts itself over. This way your business will be on this guided and on-going journey towards new goals and achievements.
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7 Business Goals for a Coffee Shop
Owning a coffee shop is like owning the heart of a community; it’s a place for everyone. Most everyone has a place they like to go for coffee, tea, or a snack. A place where they can go relax and maybe socialize. If you run or plan to start a coffee shop business, you need to stand out. One of the best ways to do that is to define your goals.
Setting goals not only helps you stay on track but also helps you measure your progress and make any necessary adjustments along the way. It’s also important to set goals for your coffee shop’s long-term growth and sustainability. Goals direct and drive you not to settle, but to stand out from the competition.
With a business like a coffee shop, you are competing against giants such as Starbucks, Panera Bread, and Dunkin. You will also be up against bookstores that serve coffee like Barnes & Noble. And finally, there are the other coffee shops and tea houses in your city. The only way to stand a chance in this sector is to set great goals and execute plans to reach them,
So, what are the goals you should set for your coffee shop? In this article, we will some of the most important short-term and long-term goals you should have for your coffee shop and provide tips on how to set and achieve those goals .
Establish A Unique Identity
Coffee is everywhere. I would venture to guess that if you wanted a cup of coffee right now you could get one within the next 10 minutes. Not only at a coffee shop, but a convenience store, grocery store, fast food restaurant, or even a vending machine. So, for your coffee shop to succeed, you need a unique identity. Having a unique identity as a goal for your coffee shop will help differentiate your shop or cafe from the rest. This is an especially important goal if you are running a new business .
One way to establish your shop’s identity is with great branding. This can include developing a logo, color scheme, and overall aesthetic that sets your business apart from competitors. You can also stand out by a focus on offering unique or specialty coffee blends or brewing methods. Having a specialty blend that is hard to find will attract visitors from all over town.
Another way is to offer a unique experience. This includes hosting live events, art shows, or other community gatherings. You can also differentiate yourself by sourcing your beans ethically or providing a cozy or unique ambiance.
Build a Good Local Reputation
For a coffee shop, a good reputation goes a long way. Many people are open to meeting or visiting a coffee shop with a great reputation. Unlike a restaurant, a coffee shop experience doesn’t need to be a costly or involved event. A potential customer can stop in and check things out alone or with a friend. They also do not need to get dressed up or make plans. A coffee shop with a good reputation is something that will draw in customers who want to visit the shop because they are in the neighborhood.
Research shows customers want to spend their money on a brand with a reputation they can trust. A good reputation is gold and can be translated into financial success. It doesn’t only help you retain customers, it also brings in referrals. Your reputation tells potential customers that you are trustworthy and honest.
Maintain a High Quality of Coffee and Other Edibles
Image by mrsiraphol on Freepik
No one will keep buying a product whose quality fluctuates. If, after visiting your coffee shop a few times, a customer realizes that the quality of coffee reduces every time, they’d be reluctant to return. This damages trust, which is the fabric of any successful business venture.
Make it a goal to maintain a high standard of your coffee and other items you provide. Take pride in using the best ingredients and techniques available. Standardize your procedures, so your staff knows what to do even if you aren’t available.
Attract Regular Customers
Another goal you should prioritize is how to retain your customers, thereby turning them into regulars. You’d almost always get a customer walking into your shop to buy a coffee. They could be walking past your shop to have some coffee or tea and some rest. Or perhaps, they want to use your shop as a meeting place for business or to meet with a friend. This is why a coffee shop is one of the most generic places in any area. What matters most is making your customers come back for more.
How do you do this? Make it a goal to make the best first impression with your meals, coffee, environment, and service. Turn these things into systems that can be duplicated and improved upon. This will help retain your customers. Just like any other business, it is better to retain customers than to acquire new ones.
Set Up the Perfect Atmosphere
Research shows that coffee and edibles only make up 48% of a customer’s reason for their emotional connection to a coffee shop. The remaining 52 % are other factors, including the atmosphere. As earlier stated, the coffee shop isn’t only a place to drink coffee and connect with others. The environment must be conducive to socializing.
This includes ensuring the right facilities are in place – seating arrangement, comfortable furniture, right decor, design, lighting, etc. You can also play some cool music in the background or hire a live band once in a while. Your goal should be to make every customer feel at home. Your coffee shop should be a haven and a home.
Hire Reliable Staff
Having a well-trained and reliable staff is a top non-financial goal for any business . Your staff is the face of your coffee shop business and has the greatest impact on your customers. One of your topmost goals for your coffee shop business should be to recruit committed, open-minded, disciplined, knowledgeable, and caring staff. You need people willing to work to put a smile on the customers’ faces and to provide the best possible services.
Open a Second Location
Don’t limit yourself to having one coffee shop. Have it in your mind that you need to expand your coffee shop. This way, you’ll not only grow but your brand equity, and you’ll also make more money. Besides, it’ll be easier to operate since you’ve already garnered experience from running your first coffee shop.
Before opening a second location, you need to research the area where you want to open it. Look at the demographics, competition, and potential customer base in the area. You would have also earned the trust of your first customers, who would be eager to recommend your new branch to others.
Even if your first location is a smashing success, the success of the second location isn’t automatic. You will need to monitor its performance and make any necessary adjustments. Find out what works and doesn’t in the new location. In due time, your coffee shop business will become a household name.
Whether you have a coffee shop already or are looking to start one, the goals listed above should be on your list of priorities if you want to scale and sustain the business. It’s easier for your coffee shop to maintain steady growth if you have something to aim for. These goals also help monitor your rate of progress and set the pace for more growth. With a clear plan in place, you can work towards achieving your goals and making your coffee shop a success.
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Tom is a member of the Editorial Team at StartUp Mindset. He has over 6 years of experience with writing on business, entrepreneurship, and other topics. He mainly focuses on online businesses, digital publishing, marketing and eCommerce startups.
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How To Create Your Coffee Shop’s Mission & Vision Statement
Taking the plunge and opening a new business for the first time can be a nerve-racking experience. Countless things need to be taken care of—from choosing a name, registering your company, and crafting a beautiful logo to finding the perfect venue, hiring the right people, and much more.
And while all of the things mentioned above are fundamental for ensuring your coffee shop’s success, other vital elements are sometimes overlooked. Thus, if you want your coffee shop to be successful and thrive within and highly saturated market, you must have a clear mission statement and an inspiring vision statement. So, how do you create your coffee shop’s mission and vision statement?
The truth is there is no secret formula for the perfect mission or vision statement as these two key pieces are deeply rooted in a business’s core. Therefore, if you want to create compelling statements for your coffee shop business, you need to dig dip. Start by answering the following interrogations:
- What does your coffee shop do?
- How does your coffee shop do what it does?
- Who does your coffee shop serve?
- Where do you see your coffee shop in 5, 10, 20 years?
Once you have these figured out, writing your company’s mission and vision statement will come easily.
Table of Contents
Mission Statement vs. Vision Statement
Before you can even think of writing any of these statements, you must first understand their differences. Hence, let’s start by defining each term.
A mission statement describes the company’s business, including its goals and objectives to reach those short-term goals. A vision statement, on the other hand, explains the long-term goals or your expectations.
In other words, a mission statement is the company’s reason for being, while the vision statement is what your business to become. And while the two are very closely related, understanding their differences can help you run a more efficient and lucrative business.
Thus, to write an effective mission statement and an inspiring vision statement, you need to combine elements of the present and future of your coffee shop to come up with a roadmap for your company’s purposes, goals, and values.
Writing Your Coffee Shop’s Mission Statement
The mission statement of your coffee shop should answer the first three interrogations we mentioned earlier:
However, this does not mean you are going to literally answer each of these questions in a paragraph and call that your mission statement. Consider these three interrogations the ingredients to a recipe. In other words, these interrogations are merely the “must-haves” elements that should be included as part of your mission statement.
To make your job easier, you should follow these five principles when writing your mission statement:
- Keep it short.
- Use suitable language.
- Acknowledge your audience.
- Describe your company’s purpose.
- Reference the present (your current situation)
You can also add a blurb on your brand’s purpose. Think about why you decided to open a coffee shop or what your motivation was. Remember, a mission statement ties back to your short-term goals and objectives.
Writing Your Coffee Shop’s Vision Statement
Once you have defined your coffee shop’s mission statement, you can move on to your vision statement. As explained before, your company’s vision statement will reference the last interrogation: where do you see your coffee shop in 5, 10, 20 years?
When writing your vision statement, you must describe your coffee shop’s long-term goals, expectations, and what you are hoping to accomplish. For instance, do you want to be the leading organic coffee franchise in the United States? Or do you want to become the “go-to place” for anyone who wants good coffee at reasonable prices?
Vision statements depict a future image, and so they should be three things:
- Inspiring, it should motivate employees and customers alike to interact and connect with your brand.
- Realistic, it is true that within a vision statement, you are projecting long-term goals. But, this does not mean that you should be unrealistic about your future.
- Different, it must set you apart from your competitors. You should never emulate or try to become something you are not. Quite the opposite, think about how you are going to make your coffee shop stand out from all the other coffee shops around the world.
Know that your vision might change over the years, depending on how fast you grow, the market conditions, how scalable your business model is, and more. But, even if it does change, your vision should always align with your brand’s values and objectives.
Need some additional help with your vision statement? Check out this blog article with more helpful info!
Mistakes to Avoid When Writing Your Vision/Mission Statements
- Don’t rush it!
A mission statement defines your company, and a vision statement will give you something to hope for. Thus, it is as important as your logo or your company’s name. So, do not rush it! Take the time to write, edit, and revise your key messages.
- Don’t try to cover a lot of ground
It is entirely reasonable to want to extend your mission and vision statement and surpass the two-three sentence limit. But, remember that’s where websites, flyers, and other marketing efforts come in handy.
Therefore, do not overflow your statements with statistics or detailed information. Stick to your core values, goals, and objectives.
- Don’t write a mission statement only to cross it off your to-do list
Lastly, do not write a mission statement because you have to or because every other coffee shop has one. A mission statement should be real, authentic, and sincere. So, if you are unsure of what to write, think back to the beginning and remember what motivated you to open a coffee shop in the first place.
Coffee Shop Mission and Vision Statements’ Examples
In case you need additional inspiration, let’s go over some examples. Below we will describe the mission and vision statements of seven of the most successful and renowned coffee shop brands/franchises in the world:
- Mission Statement:
“To inspire and nurture the human spirit — one person, one cup, and one neighborhood at a time.”
- Vision Statement:
“To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.”
“To be the leading provider of the wide range delicious beverages & baked products around the kingdom in a convenient, relaxed, friendly environment that ensures the highest level of quality product and best value for money.”
“To be always the desired place for great coffee beverages and delicious complimentary donuts & bakery products to enjoy with family and friends.”
“To captivate the world with Premium Colombian coffee while generating value to Colombian coffee growers.”
“To be the go-to franchise for specialized Colombian coffee and the largest ambassador of the identity of Colombian coffee growers.”
The Coffee Bean and Tea Leaf
“To create a spirit within our company that inspires our team members to provide our customers with a total quality experience: quality of product, service, and environment.”
“To be Simply The Best roaster and global retailer of specialty coffee and tea.”
“A passion for excellence that makes every cup a unique experience.”
“To bring the culture of espresso around the world.”
“Dedication to quality, style, and service to delight consumers At Nespresso , we have left nothing to chance. We source the finest green coffees from all over the world, blending unique aromas and flavors to meet every taste preference.”
“To be recognized as the ultimate coffee experience worldwide. For us, that means a relentless commitment to excellence in all that we do, and a commitment to continuous innovation, aiming to consistently create moments of pleasure for our Club Members.”
“An experience that makes the day better.”
“We aspire to be The Community Place I Love, and we’re committed to sharing an extraordinary experience that feeds the soul.”
Frequently Asked Questions
Many think that a mission statement is something meant for you to include on your company’s website or use it as a public relations tool. But, in reality, a mission statement is much more than that. Mission statements play a crucial role in any organization. Primarily because they help maintain a brand’s focus, objectives, and attention. It also acts as a reminder of the company’s purpose and reason for being. ● As a result, a mission statement can also: ● Serve as a navigation tool in times of crisis. ● Be a medium for coming up with new and innovative ideas. ● Help shape the work culture within the company. ● Drive actions to achieve all short-term and long-term goals. ● Aid the company’s decision-making process. ● Position a brand within an industry/market by informing competitors, customers, shareholders, and more what you stand for.
The terms’ mission statement’ and ‘purpose statement’ are commonly used interchangeably. Nonetheless, these terms have some subtle yet significant differences. Simply put, a mission statement describes what the company does and how it does it. A purpose statement, on the other hand, usually focuses on why a brand does what it does — it explains its reason for being or “raison de d ‘être. Moreover, a company’s mission statement is rational and functional, while a company’s purpose statement usually comes from the heart and focuses on the emotional side of the business. As a result, the mission statement usually also includes the brand’s purpose statement.
To learn more on how to start your own coffee shop checkout my startup documents here
Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.
Hi! I’m Shawn Chun
My adventure in coffee began when I first launched my first coffee shop back in the early 2000s. I had to figure out so many things on my own and to make it worse within 2 years of opening two large corporate coffee chains moved in just blocks away from me!
As I saw smaller and even some larger coffee shops in the neighborhood slowly lose customers to these giant coffee chains and slowly close up shop, I knew that I had to start getting creative…or go out of business.
I (like you may be) knew the coffee industry well. I could make the best latte art around and the foam on my caps was the fluffiest you have ever seen. I even had the best state-of-the-art 2 group digital Nuova Simonelli machine money could buy. But I knew that these things alone would not be enough to lure customers away from the name brand established coffee shops.
Eventually, through lots of trial and error as well as perseverance and creativity I did find a way to not only survive but also thrive in the coffee/espresso industry even while those corporate coffee chains stayed put. During those years I learned to adapt and always faced new challenges. It was not always easy, however, in the end, I was the sole survivor independent coffee shop within a 10-mile radius of my location. Just two corporate coffee chains and I were left after that year. All told the corporate coffee chains took down over 15 small independent coffee shops and kiosks and I was the last one standing and thriving.
Along the years I meet others with the same passion for coffee and I quickly learned that it is not only “how good a barista is” that makes a coffee shop successful, but the business side of coffee as well.
Hence why I started this website you are on now. To provide the tools and resources for up and coming coffee shop owners to gain that vital insight and knowledge on how to start a coffee shop successfully.
Stick around, browse through my helpful blog and resources and enjoy your stay! With lots of LATTE LOVE!
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Coffee Shop Business Plan Template
Coffee shop business plan for starting you own cafe
According to the statistics reported in a Harvard study, American population spends more than 20 dollars on coffee in a week and more than 75 percent American drink coffee. It is also reported that approximately 20 percent coffee buyer take more than two cups a day. There is not the time for entering in cafeteria shops, so this the perfect choice to tap this market for profit. Our primary focus is to write best coffee shop plans for our clients and also assist the newcomers in the corporate sector.
Choosing to put down the coffee shop business plans should not be taxing to newcomers as it is not like doing lots of paper work. We are here to help and walk the first step of our client’s coffee shop with them. Our sample office house plan writers would deliver you all necessary information, realistic advice and guides you to develop a profitable coffee shop company.
How to start a coffee house?
It is important to understand the value of opening a coffee shop business plan before writing plan. Which are as follows:
- The use of coffee is increasing day by day and demand of high-quality coffee is also increasing.
- Coffee is an evergreen seasonal drink.
- It has high-profit margin than other business. Also, the starting cost is minimal.
Earning profit from a coffee shop company in not difficult. Many small coffee shop owners are making millions through this shop. However, many of them also face loss as consequences of not taking guidance or majorly not developing a company plan. We provide our customers the valuable information related to your proposed project and ready to assist you in the hour of need. Our professional experts take the initiative to help you making coffee shop company plans.
A well-planned business plan of coffee shop is a key to your coffee company, and this key is in our hand. It took a little time to customize your plan but the end would be marvelous.
The coffee shop company is earning millions these days and expanding day by day. People often visit these coffee shop houses to either appreciate themselves or to get rid of the daily stressor. As this business require less investment so the owners usually took the risk without a business plan coffee shop and often result in failure. Our company is helping the new investors to direct their time, efforts and wealth in an efficient way and earn more from the less.
What should be included in the coffee shop business plan?
Components of the coffee shop business plan.
Writing a proposed plan for the new company is not difficult. You must take prior records and data. Then you would have to review all the template business plans available on this website and then record your plan. It should include the following.
Write down the Vision statement
Objectives of your coffee shop
- You should properly write objectives of your coffee shop business plan. You can also describe your objectives on a yearly basis, e.g., becoming the best shop in the locality and maintain at least 65% net profit.
- You should be responsive regarding the development that would assist you in achieving your objective. e.g., attractive and pleasing shop environment with efficient and timely service, training of the workers so that they can deliver best services to the customers, creative marketing strategies to attract the customers and increase the sale of products with higher profit margin.
Define the mission
- Your mission could be to create the environment that is attracting, pleasing, comfortable and relaxing. It would also provide customers the opportunity of socializing themselves. The trained staff, friendly service and quality products would enhance the loyalty of the customers. Its profit would be used for the satisfaction of our loyal customers.
Open a coffee shop business plan with your own inspiration and imagination of the coffee company to give a good impression to the investors as they get a clear idea about your company. Our coffee shop business plan samples gives you draw a better vision for your shop.
Review of competitors
- Write down the overview of company owners, initial expenses summary, products and facilities of your shop. Note down complete designations and executive posts of the company owners.
- Your start-up expenses would include legal expenses, advertisement and promotional expenditure (opening expenses, brochures), consultant’s charges, insurances fees (insurance of worker’s compensation and property), rent expenses, stationary and phone expenses. You must estimate charges of all these expenses and write down in your plan. Essential expenses include food buying of food related items and machinery like beans, beverages, salads, coffee maker, coffee grinder, Espresso machine, microwave, toaster, dishwashers, counter area equipment, serving equipment, store, and office equipment, etc.
- You must also decide whether you will invest your money or creating a business plan for a bank loan . Location and services. You must describe the central location of your company. You could write whether space is taken on lease or rent.
Room for staff and visitors
- Describe the area covered by the store room, bathrooms, kitchen or production area, sitting area and any left space for the store room visitors.
- You should mention the products you would offer in your bar like best quality espresso with a classical taste, brewed coffee and tea through maintaining high-quality making and preparation standards. It can also offer salads, sandwiches, pastries or any snacking items. Espresso drinks would be offered in drinks like cappuccinos, mochas and with soy milk, skimmed milk or whole milk. Consult our coffee shop business plan samples for your shop and write down and effective company summary.
Product selling and market approaching strategy
Choice of strategy
- You should write a good sales approach in your plan for example distribution of approximately 2000 flyers in the nearby community or offer discount services to groups and students.
- Write down the estimated market potential of coffee drinkers in your area like students and faculty, teenagers, office workers and others. Also, study and write down customers’ needs like some also demand for little exotic environments in the shops.
- Also, observe other competitive markets around you and their slling patterns. Try to set up your firm up to their standard to compete in the market. Starting a coffee shop business plan with less and good quality is better than more with poor quality is the better option. Our consultant’s offers bestselling and advertisement strategies in low cost. You should consult them for the growth and generating revenues.
Management and financial outline
- The management anatomy of your enterprise is vital for your work. Write down the complete description of the names and roles of top management, baristas and number of staff.
- You should also write the salaries and wages of all managerial staff and employees. The cost of advertisements for the vacancy should be added to the financial outline, and total payroll should be written.
- You must include all financial details in your plan. It should include start-up expenditures of all types, wages, salaries, profit forecast, sales growth, current and long-term liabilities, and percent of product sales, net profit margin, selling and general administrative.
C hamber practice
- You must follow standard guidelines for planning financial issues because of it directly related to your growth in the corporate sector. You can also hire legal professionals who can assist in dealing with legal matters like licenses etc.
By following above coffee shop business plan sample you will be able to record an excellent plan.
Reasons for not writing coffee shop plans
- It is observed that coffee company plans are not commonly written. Following are some reasons for not writing the coffee company plans.
- They are overconfident in their intellectual abilities and make company plan in heads.
- The think their coffee company is a small scale shop and they do not require a well written Costa coffee business plan or they do not bother with it.
- Some company owners find writing plan to be too cumbersome or difficult.
- Some think that writing a coffee company plan is tedious and a difficult task and some even do not hear it.
Newbies in the corporate sector often have a misperception that they can do a flawless business without a business plan then they should keep in mind that they could face loss and difficulties without coffee shop plan. Terms of successful business plan
- You can only earn after writing a coffee company plan.
- The plan would cohort your ideas and make something out of your creative mind on paper, and this would be the reason for your success.
- You must have confidence on yourself but not on your ideas because building castles in the air worth nothing until you put them on paper and analyze them further.
Advantages of writing a coffee shop business plan
- The small coffee shop business plan helps to see their planning and thinking close to reality.
- The plan also contributes to getting bank loans and funding from the investors and lenders.
- A good plan would save you from any crisis and give direction to your thinking and planning. Thus you can save your money, energy and time.
- The plan helps you to decide the location of your shop, define your goals and helps in making different business related strategies.
- As business plan need an in-depth study of the market, it would also help to figure out your potential competitions and threat to your shop. Your knowledge related to your company expand through the coffee company plan.
Immigration Business Plan
The Coffee business in UK is expanding day by day and UK is earning billions from this business. shop plan for coffee shop UK writers are working proficiently is writing shop plans and helps in opening unique and different coffee house. Coffee shop business plan UK experts are helping to create and environment where you can ear and satisfy the customers.
How Often Should You Update Your Company Plan?
The format of your coffee company plan of coffee must like a working document so you can revise and edit it any time based on the situation. It important make necessary changes in the file when needed and revise it accordingly as it provides business direction in future. Ou service also helps you to update plans and contributes to expanding your coffee company. We tend to brighten up the chances of success in the coffee company through achieving the objective. Our coffee shop business plan sample would also help you to create your business plan.
Why should you let us write your coffee shop business plan?
Practice in store planning, excellent work.
excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!
We should write your shop plans because we work from scrap ideas and format it according to well established and realistic plans. We have professional business plan writers who have years of experience and practice in shop planning and offer their services related to shop planning in reasonable fees. You can focus on other activities as we will be planning your coffee company for you. Our online example plan would give you the basic idea about writing a plan.
You should know what the investors are looking for when it comes to investment. Obviously, the lender will look to a solid, well designed and planned business plan online coffee shop could provide for investment. We will assist you in creating a business plan of a coffee shop at affordable rates. You can also visit our website and have a look at our template business plans or fill a quick form, and our experts will get back to you.
There many unique ideas for selling the coffee and earn money. You can also start a coffee cart coffee company that helps customers to buy their favorite coffee in streets. If you are thinking to add this to your plan, then you must also write the coffee cart business plan. Opening coffee shop business plan with clear objectives of your company and further explaining the detailed strategy of your business, you can develop a successful shop. It is important to understand the value of energy, time and money. It should be directed in a right way, and we are here to channelize your energies in a right direction. Our coffee shop business plan samples would guide your to earn the profit and make money. Remember your goals is to satisfy you customers who love coffee. You must maintain the standard of your coffee company to make your name in the industry.
Download business plan for a coffee shop in PDF
OGScapital staff also specialize in compiling such as opening a bubble tea shop business plan , business plan for butcher shop , start up donut business plan , mini grocery store business plan , business plan for a sandwich shop , bakery business plan and other business plans.
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- Business Plans Handbook
- Business Plans - Volume 04
- Coffee House Business Plan
3005 37th Avenue Santa Fe, AZ 68002
Coffee Circus' owners are taking advantage of the coffee house rage that has been sweeping the country. Along with taking advantage of this trend, they are also planning for the future. Coffee Circus is also marketing itself as a full service restaurant to maintain stability, in case the coffee trend begins to fizzle.
- PURPOSE OF BUSINESS
Description of business, opportunities and strengths, critical risks and problems.
The interest by consumers in the coffee house industry is sweeping the country. Coffee Circus is positioned to bring this to the Northwest Santa Fe area. To date it has been confined to the Central and East areas.
Coffee Circus will provide a friendly, comfortable atmosphere where the customer can receive quality food, service and entertainment at a reasonable price. The coffee house will offer a variety of choices to the customers. Coffee and tea of all sorts will be offered. Juice, soda, and non-alcoholic beverages also will be available. Both wine and beer will be on sale. Coffee Circus will serve breakfast, lunch and dinner.
The interior design of the building will focus on projecting a relaxed atmosphere. Coffee Circus will be divided into different areas. Some will have tables and chairs, another will have large antique stuffed couches and chairs, end tables, coffee tables, book shelves filled with books and magazines, tiffany style lamps and braided rugs. A PA system will be installed so that the music and entertainment can be heard throughout. A large selection of table games will be provided.
There will be nightly entertainment featuring acoustic jazz, blues and folk music. On selected nights there will be poetry readings and an open microphone. The walls will be used as an art gallery and from time to time there will be an artist in residence.
The site contains a 3,525 square foot building which was used as a sports bar and restaurant. The building has substantial parking. The site shares the Hart Plaza with Folk Limited and Ryan Sports. Remodeling will consist of removing the existing booths, new carpet and some new furniture. The kitchen and bathrooms will require only minimum remodeling. The property is currently zoned for restaurants.
The area comprising a three mile radius around Coffee Circus is heavily populated with young, upwardly, mobile persons with expendable income. This is complemented by a large number of upper middle class "Baby Boomers" who are a large portion of those persons who frequent coffee houses.
A strength which this business will possess is the ability to change with the times. Rather than limiting the future opportunities by having a small area, Coffee Circus will have 3,525 square feet of space and a kitchen designed for flexibility. As the fad of coffee houses fades, Coffee Circus will be able to change to a full course restaurant or whatever the situation calls for.
The advertising and promotion will take a number of avenues. First, flyers will be distributed in the neighborhood. Ads will be taken out in all of the Catholic church bulletins in the area. Since Coffee Circus will be the first union restaurant in the state, ads will be placed in all of the union newsletters. Ads will also be placed in the target areas of the Burns' Grocery, and the local neighborhood newsletters. For businesses in the area, menus will be distributed and ordering will be available by fax. A customer mailing list will be developed with a calendar of events being mailed on a monthly basis.
Coffee Circus will be operated as a Sole Proprietorship. There will be private investors. However, these investors will be silent investors with a payoff of investment within three years. These investments will be paid twice-yearly in equal installments including interest. The total needed capital for Coffee Circus is $99,900. Owner's cash contribution is $10,000 and other investors and family members is $16,000. The amount needed in loans is $30,800 for equipment, $20,000 for remodeling, and $23,000 for operations. This is a total of $73,800.
Overall management will be the responsibility of the owner. The owner brings to the business over 20 years of business experience including over five years in restaurant management and five years in directing a multifaceted non-profit housing program. The general manager will have a minimum of 10 years experience. A major emphasis of Coffee Circus will be to hire economically disadvantaged or at-risk persons and provide them with job training. The majority of these persons will be identified through the City of Santa Fe Job Training Partnership.
To provide a friendly, comfortable atmosphere where the customer can receive quality food, service and entertainment at a reasonable price.
PURPOSE OF BUSINESS PLAN
This document is intended to outline the start-up of the business known as Coffee Circus. The business plan has a two-fold mission. One is to obtain financing. The other is to help define the who, what, where, when and how for the business so that the business will have a clear cut plan and operations map.
The goals of the business are to provide a substantial income and to create a business and working environment where both the customer and employee are treated with dignity and respect.
The specific goals of the business are:
Profit - personal income in excess of $50,000 per year within three years
Clientele - create a base clientele of persons who live and work in the area. These persons will like a relaxed atmosphere where they can "hang out"
Employees - Competent employees (at least 51% from low-income neighborhoods) who are committed and loyal
Coffee Circus will be a coffee house/restaurant located in the Hart Plaza on the southeast corner of 37th Ave. and Holgate.
The coffee house will offer a variety of choices to the customers. Coffee and tea of all sorts will be offered. The choices of coffee will range from espresso to latte, from regular flavor to raspberry-mocha. The teas will range from English to flavored varieties.
Juice, soda, and non-alcoholic beverages also will be available. For those who want something else to drink, both wine and beer will be on sale. Wine can be ordered by the glass or by the carafe. Bottled micro-brewed beer will be available.
The breakfast menu will feature croissants, muffins, bagels, donuts, french pastries, fruit filled crepes, etc. Except for the crepes, the baked goods will be purchased from The Works. Lunch and dinner will feature sandwiches, salads and seven different soups. In hot weather, a variety of cold soups will be offered. In addition, Coffee Circus will feature a vast array of appetizers. These will include artichokes (Both stuffed or served with butter); stuffed mushrooms; mini loaves of bread served with your choice of a bowl of pesto, queso, or green chile, etc. Desserts will consist of cheesecakes (some fat-free), pastries, pies, fresh fruit and cheese.
The interior design of the building will focus on projecting a relaxed atmosphere. The bottom portion of the walls will be forest green with the upper being eggshell white. The carpeting will be forest green. The table and chairs will be custom made from light oak. The chair coverings will be of forest green material and heavily padded for comfort. The table tops will be a marbleized forest green laminate. Plants will abound in gold pots. The dishes and eating utensils will be mismatched and purchased from antique and thrift stores. The coffee cups will be from the forties and fifties era. They will be provided by a local antique business and will be for sale.
Coffee Circus will be divided into different areas. An advantage to having different areas is that customers can partake in different activities without bothering anyone (i.e., political discussions will not interfere with the music, or the music will not interfere with those playing board games or reading).
The emphasis will be on providing a comfortable environment for the customer where they will want to linger and return many times.
The time is right for opening a coffee house in the city of Santa Fe. Coffee houses are having a great deal of success, which is evidenced by the full houses every day of the week. The southeast side of Santa Fe has no such places. The closest competition is the Coffee Club located at Santa Fe Park and Main. In order to reach a coffee house, a customer from our area must drive 20 to 30 minutes. The majority of these establishments are located on the West side of town. A few are beginning to open in the downtown area.
The area comprising a three mile radius around Coffee Circus is heavily populated with young, upwardly, mobile persons with expendable income. This is complimented by a large number of upper middle class "Baby Boomers" who are a large portion of those persons who frequent coffee houses.
An additional strength which this business will possess is the ability to change with the times. Rather than limiting the future opportunities by having a small area, Coffee Circus will have 3,525 square feet of space. The kitchen will be designed for flexibility. As the fad of coffee fades, Coffee Circus will be able to change to a full course restaurant or whatever the situation calls for.
The business will bring with it a strong group of persons with an extensive background in both restaurants and business.
There are risks inherent with any business. However, the restaurant business carries with it very unique risks. Most critical is the customers' changing tastes. Another is the economy. Restaurants rely heavily on serving persons who have expendable income. When the economy takes a down turn, people change their spending priorities. There are less trips to restaurants.
A problem also in restaurants is finding dependable help who will stay with the business. Many restaurant employees tend to be younger and are attempting to move into a career. When either their schooling ends or they find their "dream job," they move on. Often servers filling the positions are non-skilled, and tend to be single mothers or lower educated persons. These persons come with specific circumstances which must be accounted for by management. A single mother may experience child-care problems, or a bus person may have problems with reading. A good owner must learn to deal with these problems in a manner which benefits the business as well as the employee.
Generate monthly sales revenues of $71,000 per month of 3% of the target market within 18 months of opening.
- Maintain a high standard of food quality and service
- Provide first-rate live entertainment without a cover charge
- Ensure a friendly comfortable atmosphere
- Place monthly ads in neighborhood publications
- Distribute monthly fliers to neighborhood, businesses and churches
- Offer discount coupons
- Maintain and use a customer mailing list
The customer will be between 18 to 55 years old. The income level is between $20,000 and $100,000 per year. They will live within three miles of Coffee Circus. They will be white collar workers (managers, professionals, etc.) with expendable income. The education level will range from some college to post-graduate work. A limited number (10%) will come from other areas. This 10% will generally be persons who are coming to see a particular entertainer or poetry reading. A majority of the customers will be persons who enjoy a relaxing atmosphere, conversation and table games.
Estimated Market Share and Sales
Based on the customer profile for Coffee Circus the following numbers were compiled. The report used was prepared by Phoenix Real Estate using information obtained through the Facts Report. The report was prepared using Coffee Circus as the focal point and delineating numbers by a one, three and five mile radius. For purposes of determining market share for Coffee Circus, a three-mile radius was used. National statistics show that most persons do not travel more than three miles to eat or to listen to entertainment. The report shows that 162,908 persons live in the three mile radius. The following is the breakdown of target customers.
Formula For Market Share
The formula takes the total population and then multiplies that number by the percentages in order of importance to the Target Customer.
Total Population × Age% × Income% × Education% × Occupation% = Total Market 162,908×47.08%×55.90%×56.78%×50.91% = 12,393 persons
Market Share For Coffee Circus 2.2% Of Market=276 Cust./Day or 17 Cust./Hour 1.8% Of Market=230 Cust./Day or 14 Cust./Hour 1.6% Of Market=202 Cust./Day or 12 Cust./Hour
The occupancy of Coffee Circus is 127 persons. Two different methods can be used to determine occupancy levels.
Hourly - If you estimate percent of occupancy on an hourly basis, the customer rate would be 9.4% of occupancy. 12 cust/hr /127 = 9.4% occupancy per hour
Mealtime - Typically, you will have two turnovers per meal. Based on projections the percentages would be 23% for breakfast, 27% for lunch and 32% for dinner.
Breakfast - 57 cust/2 = 29 cust/127 = 23% occupancy level
Lunch - 67 cust/2 = 34 cust/127 = 27% occupancy level
Dinner - 79 cust/2 = 40 cust/127 = 32% occupancy level
In reality, the true occupancy rate lies somewhere in the middle. Not all of the customers will come in during those dinner times nor will they be spaced evenly throughout the day.
Promotion & Advertising
The advertising and promotion will take a number of avenues. First, flyers will be distributed in the neighborhood. Ads will be taken out in all of the Catholic church bulletins in the area: Holy Martyr, Queen of Peace and St. Christopher's. These ads will offer 10% off, if the parishioner brings the bulletin with them. The restaurant is located one block from Holy Martyr Church and school. The owner's family attend the church and have a son who has been a student in the school for 7 years. Special events will be promoted with a portion of the proceeds going to the school. Since Coffee Circus will be the first union restaurant in the state, ads will be placed in all of the union newsletters offering a 10% discount to anyone showing their union card. Ads will also be placed in the target areas of the Burns' Grocery, and the local neighborhood newsletters. For special entertainment nights, radio and newspaper ads will be placed. Entertainment and food critics will be given an invitation. On opening night we will have an invitation only party, with over 1,200 invitations being sent.
For businesses in the area, menus will be distributed and ordering will be available by fax. A customer mailing list will be developed with a calendar of events being mailed on a monthly basis.
Servers will always ask the customer if they want added items, i.e. specialty coffee, soup with the sandwich, appetizers, and dessert. This will not only increase sales for the business but will also increase the amount of money the server makes. Most people tip according to a percentage of the check. The higher the check the greater the tip. The server can control their own income.
All tables also will have "table tents" or advertisements. The tents will describe upcoming events. Also, pictures and descriptions of items for sale, such as micro-brewed beers, desserts, etc., will be on the tents. The menus will provide detailed descriptions of the items available, including a section describing the different types of beers available. For example, the chili beer.
If the customer has a complaint, everything will be done to satisfy them. If that does not work, the customer will be given their meal free of charge.
Chicken Little - Northwest corner of Holgate and 37th Ave. One block north of Coffee Circus.
Provides home-style cooking. Known for their southern style cooking. Pleasant homey surroundings. The restaurant caters to families who want to eat and leave. No live entertainment is provided. Their prices are moderate with little or no variation. They are known for good quality food and service. Extremely clean and well managed. There is little or no product comparison. They have become successful due to location and reputation.
Burger's Joint - Northwest corner of Holgate and 37th Ave.
A well-known fast food franchise with a good presence and marketing plan. The food and prices are about the same as their competition. There is no product comparison.
LaJolla - Southeast corner of 37th Ave. and Holgate
Serves Mexico City style food. The atmosphere is upscale and the food pricing is moderately high. The food is highly specialized and caters to a certain type of clientele. There is no comparison.
Steve's - Northeast corner of 37th Ave. and Holgate
Serves a full course menu. The pricing is moderate, but cheaper than Chicken Little. The quality is fair. Most persons eat there because of pricing and because they are shopping at the store. There is very little competition for Coffee Circus.
Keep cost of goods sold at or below 30%. Provide customers with prompt and courteous service.
- Provide initial training for all employees
- Hold monthly employee meetings
- Have an open door policy for employee suggestions and concerns
- Implement the use of the Business Plan systems
- Purchase and use the Food Fax software package
- Have clearly defined job descriptions and duties
- Have an employee policy handbook
- Do employee reviews every six months
- Customer suggestion box
- Design kitchen and service area to be efficient
The product will be distributed in the restaurant by food servers. The food will be cooked on site, except for some of the baked goods. Some of these, such as croissants will be purchased in the raw frozen form and baked daily.
When a customer enters Coffee Circus they will be greeted by a hostess who will seat them and provide them with menus. A server will greet them and give them water. The server will inquire what they would like to drink. The drink order will be prepared by the server. If the drink is either beer, wine or coffee, that will be prepared by the bartender. The drink order will be given to the bartender on a written check, which will be rung up on the register. If the server fixed the drink, it will be rung up on the register by the server. The server will deliver the drinks and then take the food order if the customer is ready. The server will take the food order, ring it up and the order will appear on the cook's computer screen. The cook will prepare the food, in the order the tickets are given. The server will prepare the salads, desserts, hot and cold soups and other items. The cook places the finished food on the window. The server must pick the food up within two minutes. The food is placed on the table and the server will ask if there is anything else which the customer needs. The server will check all the drinks and replenish water, ice tea and plain coffee. The server will ask if the customer needs another drink. Specialty drinks are not refill items. Non-specialty drinks are free refills. The server will familiarize the customer with the operations of Coffee Circus. They will explain to the customer that a number of table games are available if they wish to play. The server will let the customer know about the reading room and present them with a schedule of events. The customer will always be asked if they would like dessert or an after dinner coffee. The server is responsible for checking on the customer in a timely manner. This should be done in an unobtrusive manner. The server will maintain the tables in a clean and sanitary condition. Dirty dishes and plates must be removed immediately. Condiments must be kept full and the containers clean. The server is responsible for presenting the check, payment of the check and returning a receipt to the customer.
The cook is responsible for cooking and preparing all dishes not prepared by the server. The orders will appear on the computer monitor and the cook will prepare them according to the order given. The cook and their assistants are responsible for preparing all items in the morning such as the soups for the day, slicing meat, making specialty items and other dishes for the day. The assistant cooks are responsible for the prep work of all items for the servers and the cooks. This includes stocking all supplies, cutting cheese, fruit, salad items, ice, filling soup tureens, etc.
Cleanliness is required above all else. The servers will keep all of their work areas clean at all times. Spills must be cleaned immediately. After each shift, servers will check the side work chart and have it finished before they leave. This work will be checked by the shift supervisor. The cooking area will be maintained in a clean and sanitary manner. All areas will routinely be wiped down and swept. The cooks and assistants will also have side work which must be completed before leaving. The dishwasher is responsible for keeping the dishes washed and helping with busing the tables if needed. The dishwasher is responsible for mopping the kitchen floor. All employees must read and be knowledgeable of health regulations and follow those rules. Training will be provided by Coffee Circus. Hands must be washed on a routine basis. Smoking is allowed only in designated areas. No smoking is allowed in any food preparation area.
The servers will be required to present a clean appearance. A uniform consisting of an eggshell white polo shirt with Coffee Circus logo, forest green walking shorts or long pants, black sneakers and black ankle socks. The servers must be polite, friendly, and helpful, not only to the customer but to the other staff as well. At no time will employees be allowed to discriminate by remarks, actions or jokes.
Additional regulations are contained in the Employee Handbook.
The cash register system will be Quix 3000 Touchscreen. The built-in system software prints hard or soft guest checks, uses single or multiple remote printers, and reports and tracks data terminal to terminal, or throughout the network. Produces management reports for system, terminal, or revenue center; current and/or to-date totals for:
- Employee/cashier balance reports
- Employee tip reports
- Open and closed check reports
- Time period sales analysis
- Detailed or summarized menu item sales analysis
- Detailed or summarized sales group and category analysis
The food price will be in the moderate range and comparable to other coffee houses in the area. The cost will be determined by not only what the going rate in the area is but also by the percentage of actual cost of the food. The price will not only be competitive, but the food will be tasty, well presented, and large portions will be served in a relaxing atmosphere where the customer will be comfortable. The image projected by the pricing will be that the customer will be getting a fair value for their money; that they do not need to be rich to eat at Coffee Circus and anyone can afford to come in. They will be able to use the books and games. In the evening, they will be able to listen to the live entertainment. During the day, music will be played over the PA.
Credit terms will be offered only in the form of credit card service, such as Visa, MasterCard and Discover. Many people who eat out prefer to pay with credit cards, whether it is to keep track of expenditures or for a work expense account.
The cost of the food will be based on a set percentage. Restaurants traditionally keep food costs between 26% to 32%. Based on the type of food to be served and the delivery system, the percentage for Coffee Circus will be an average of 30% of the actual cost of the food. In order to accomplish this, Food Fax software will be utilized. The software contains the following features.
Inventory Accounting System
Calculates cost of goods, provides shelf-order inventory forms, receiving logs, compares actual usage to average usage by item, ranks highest over and under use items. Tracks vendors, allows look-up by name or vendor item codes. Automatic distribution of invoice amounts to general ledger account numbers. Purchase and transaction recap reports, inventory level control reports, price history and fluctuation reports.
Recipe Costing and Sizing
Plate and batch recipes instantly costed as prices change. Sizing and modeling capabilities.
Complete menu and sales analysis reporting. Evaluate menu performance, run products by contribution. Product cost reports available by day or any combination of days. Sales mix can be sequenced to follow "Z" tape order for fast data entry.
Ideal Use/Perpetual Inventory
Tightest possible method of inventory control compares actual use to ideal use by item and computes variance. Includes ability to run perpetual inventories and track batch recipe production variances.
Bid and Purchase Order
Built-in bid pricing system allows entry of vendor bids and automatic selection of best price available. Shopping list feature, automatic PO creation, price history reports and more.
Import sales mix data directly from almost any cash register. POS system or polling package.
Accounts Payable Interfaces
Export purchases to accounts payable system.
The suppliers have all been in business for a number of years and have dependable reputations.
They will supply all of the bread products such as croissants, loaves of bread, pastries, etc. The Works is a major supplier to restaurants in the area.
Genevieve Pie Company
Since 1987, Genevieve Pie Company has been creating a quality line of dessert products satisfying even the most discerning palate. One of their best known customers is The Big Easy.
Genevieve's is also the distributor for Verson Amos. Verson Amos has built a reputation of manufacturing the finest products since 1980. They will supply the cheesecakes.
Southwestern Coffee Roasters
This family owned and operated company has been roasting coffee for almost a decade. They will supply all of the coffee, teas, and equipment. They also provide ongoing barista training for all Coffee Circus employees at no cost.
Lewis Business Systems
Lewis will provide the Purveyor system. For 25 years, Lewis has provided operational solutions to the hospitality industry. Their specialized focus on restaurants, hotels and bars has made them one of the largest dealers of Quix systems in the country.
Powerhouse, Inc. will provide the software package to track the food inventory and pricing. This system was explained in depth previously.
For over a decade, Powerhouse has specialized exclusively in food and beverage management. In addition to its Food Fax software, recognized world-wide as the industry standard, Powerhouse's consulting and training expertise has been utilized by trade associations, publishers, governments and private companies to help operators reduce costs and improve profits.
Brite Lite will provide the outside signage.
Dirt Out will lease the dishwashing system to Coffee Circus. The lease includes all servicing, parts, labor, and chemicals. There is never an added charge. Dirt Out builds, guarantees and services its dishwashers. They provide regular and emergency service whenever you need it.
In Line has been in business for four years doing tenant improvements and design coordination. Clients include, Tasmania Restaurants, Red Bank and St. John's Boats. In Line is versed in all areas of restaurant permitting, design and regulations.
To have a competent and knowledgeable management staff which functions as a team.
- Hire experienced, qualified persons
- Conduct weekly management meetings
- On-going training to include outside classes in food service, management, etc.
- Reviews every six months
- Performance incentives
- Encourage creativity
Coffee Circus will be operated as a Sole Proprietorship. There will be private investors. However, these investors will be silent investors with a payoff of investment within three years. These investments will be paid twice-yearly in equal installments including interest.
Overall management will be the responsibility of the owner. There will be a general manager and shift supervisors.
As owner, Kirby Pitt brings to Coffee Circus an extensive and varied background. She has been General Manager for two restaurants and has been the Dining Room Captain for a major private club.
Her most recent experience was with a non-profit agency. She was responsible for overseeing three housing programs for the agency and a staff of six persons. Her duties included: monthly reports to Santa Fe Bank, City of Bradford and State Housing Trust Fund; over a $500,000 yearly budget. Ms. Pitt is competent in all areas regarding regulations for the above mentioned organizations, and other government programs.
Also, she performed the grant writing, and was responsible for fundraising and public speaking on behalf of the agency. She worked closely with the Executive Director on purchases of properties for affordable rental from Santa Fe Properties and also wrote the Sante Fe Properties monitoring reports.
In addition, she helped case-work clients, advocated for low income persons, performed housing counseling for persons in danger of foreclosure and worked with union members in need of services.
She serves as a commissioner for the City of Santa Fe Human Service Commission. She is also a member of the executive committee and the community services committee, and serves on the advisory board for the Oasis Family Service Center. In 1984, she was appointed by Mayor Gilda Raye to the Southwestern Village Planning Committee and is a registered lobbyist.
This position has not been filled. The requirements of the position require 10 years experience in restaurants, at least five of those years in some type of supervisory position. A bachelor's degree in hotel and restaurant management is preferable. The candidate for this position will be required to submit a resume and verifiable references. The candidate will be interviewed and hired by the proprietor.
The general manager will report directly to the owner. They will be responsible for the overall management of the staff. They will work in conjunction with the owner in ordering supplies, maintaining inventory, handling customer complaints and scheduling staff. Other duties would include ensuring staff coverage for all shifts and reports to the owner.
Must have five years experience in restaurant work. At least three years as a server. They must be at least 21 years old. They must possess a friendly and outgoing personality and have good personal hygiene.
The candidate for this position will be required to submit a resume and applications.
The candidate will be interviewed and hired by the proprietor and general manager.
They will be responsible for the oversight of the servers, bus person and hostess on their shift. They will work under the general manager.
The shift supervisor also works in the capacity of a server and is responsible for waiting on tables, taking the customers' food and drink orders and acting as cashier for their customers. They are responsible for helping to keep the serving area and the customer areas clean and sanitary. They are responsible for helping the assistant cook keep the service area stocked. At the end of their shift, they will be required to complete all side work as assigned.
The cooks must have a minimum of five years experience, three of which must be as a cook not an assistant. They must have at a minimum a GED or high school diploma.
The cook will submit a resume and fill out an application. They will be interviewed and hired by the owner and general manager.
The cook is responsible for cooking food served in the restaurant. They also are responsible for preparing food items in advance and seeing that the service area is kept stocked. Their responsibility is to see that the kitchen is kept in a clean, sanitary and working order. They oversee and train the assistant cook.
The assistant cook must at a minimum have a GED or be attending school or a training program. They must be at least 18 years of age.
Will be required to submit an application. Will be interviewed and hired by the cook, general manager and owner.
The assistant cook is responsible for assisting the cook in his duties. He/she is responsible for helping to keep the kitchen clean and sanitary. When needed will help with dishwashing duties. He/she is responsible for keeping the service area stocked.
The servers must have at a minimum a GED or be attending school or a training program and one year's experience working in a restaurant. They must be at least 21 years of age. They must possess a friendly and outgoing personality and have good personal hygiene.
Will be required to submit an application. Will be interviewed and hired by the shift supervisor, general manager and owner.
The server is responsible for waiting on tables, taking the customers' food and drink orders and acting as cashier for their customers. They are responsible for helping to keep the serving area and the customer areas clean and sanitary. They are responsible for helping the assistant cook keep the service area stocked. At the end of their shift, they will be required to complete all side work as assigned.
The hostess must have at a minimum a GED or be attended school or a training program. She must be at least 18 years of age and must possess a friendly and outgoing personality and have good personal hygiene.
The hostess is responsible for greeting customers as they arrive at the restaurant and seating them. She is required to take reservations and answer the phones. Also to assist with busing tables or assisting the servers when available. Duties include keeping the lobby area clean.
The bus person must be attending school or a training program, must be at least 16 years of age and have good personal hygiene.
The bus person is responsible for keeping dirty dishes off the tables. When customers leave they must clean the table and prepare it for future customers. They are to help the servers with getting non-alcoholic drinks. They also are responsible for helping the servers. They are responsible for helping the assistant cook keep the service area stocked. At the end of their shift, they will be required to complete all side work as assigned.
To maintain costs of goods sold to 30% or less. To increase sales within an 18 month period to 3% of the target market. To maintain financial records according to GAAP.
- Purchase and use Food Fax software
- Train employees proper food handling to prevent waste
- Maintain a weight and portioning system for food
- Check for quality of food from suppliers when food is delivered
- Maintain storage equipment in proper working condition
- Hire an experienced and qualified accounting firm
- Contract out payroll
- Purchase a personnel computer
- Utilize Business Plan equipment Use Accounting software
Financing Plan and Exit Strategy
The total needed capital for Coffee Circus is $99,000. Owner's cash contribution is $10,000 and other investors and family members is $16,100. The amount needed in loans is $30,800 for equipment, $20,000 for remodeling, and $23,000 for operations. This is at total of $73,800.
An acceptable exit strategy for Coffee Circus is to sell the business to another company. The restaurant business is booming in Santa Fe.
The least desirable plan would be to sell the equipment, furniture and other assets. The remaining balance would have to be renegotiated and a payment plan worked out.
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Coffee Shop Marketing Objectives
Marketing is at the heart of every business. Whether you are running an eCommerce site, a physical store that sells items, or a virtual store of another kind, you need to provide the correct marketing support for this business. When you operate a coffee shop, you need to be able to provide robust marketing support for your company as well.
Marketing is about more than just creating some ads that will run online or be shown on billboards or signs. Marketing encompasses the creation of the vision of your brand, its voice, the way it is styled and presented, and also the materials and means that are used for advertising it. If you are not sure about the details that are behind the marketing that you are providing, your marketing strategy will likely fail.
If you are ready to learn more about the coffee shop marketing objectives that you should have in mind for your business, you need to read on!
Create Your Branding
The very first thing that must be done to market your coffee shop with authority and success is the creation of your branding. You will need to know what your company stands for, what its voice is, and what ethics and values it should present to the people who interact with it. You will also need a logo and some brand colors in mind if you have not decided on these details either.
Your branding involves the creation of a company mission as well as a company identity. Is your mission to provide sustainable coffee that everyone can afford? Maybe your brand’s goal is to offer delicious coffee that is made with unique blends of beans. Whatever the goal of your coffee shop, it needs to be built into the branding that you create.
When you build a brand, you also link your brand to things that will create an emotional bond with consumers. It is not enough to just create a catchy name and a cute logo. You need to make it clear that your company stands for something. If you give away part of the cost of certain beverages to a charity, make sure that is clear in your marketing and your branding. If you are committed to delivering support to your local community, you need to make this clear as well.
Whatever emotional bonds that you are trying to craft between you and your consumer need to be clear and immediate when people interact with ads, billboards, and other marketing materials, the more people can tell about your company’s personality, the more likely they will be to connect with it in a positive way.
Make sure that you have a well-established branding concept and that you know what you want your company to stand for before you start contemplating any other part of your marketing strategy. There is no way to target ads, create the right messaging, or handle the many other details related to your brand correctly without a proper branding message and branding voice.
Always Remember to Think Local
Even if it is your goal to become a huge company like Starbucks, you will start out just like they did. Your first and most important goal to reach is the connection with the local community that turns into conversion to lots of sales. You will need to be a leader in your local area before you can be a national leader.
Coffee shops and other food industry businesses require the passion and love of the community before they can move on to national or even regional sales of any kind. You will need to remember that your local community is the lifeblood of your coffee shop, particularly in the beginning.
If you are thinking about your local area, you will already be aware of what coffee options there are in the vicinity of your shop. You will need to figure out how to stand out from them and offer value in ways that other shops cannot. When you define your place in the local fabric of the community, you will see that emotional connection that you have been wanting to create starting to form.
This is a great way to save some money in the beginning as well since you can target your ads locally and make sure that your efforts do not extend past a regional area at most. This is a great way to get a loyal brand following built up who will help tell others about your shop or shops when you graduate away from just selling in your local area.
Manage Your Website Correctly
You need a website that will pack a punch, and that will tell people your story correctly. When you do not have a website, people might not think that you are a legitimate company, or they might consider you just a local shop without any plans to grow. A website can tell people so much about your company and what it can offer them.
Make sure that your website is easy to navigate, works well on mobile, and that it is optimized to be seen by Google in local searches. These are the fundamentals that will help people who are visiting the area on a road trip or from out of town to find your business and patronize it. When you make sure that your website offers valuable content, you can help to bolster your brand and make it have the presence in the local area that you have been looking for.
As your brand grows, you can scale your website to meet the new and changing needs of your business. Make sure that your first focus is the local area and what you can offer to it. This will make sure that you are not struggling to find the business that you need to get the conversions rolling. A well-managed website cements the legitimacy of your business and helps people to connect with it.
The main goal of your marketing and your business communication is to help people to learn about your business and what it stands for so they can bond with it on a deeper level. When you are able to deliver this kind of connection at first glance through ads and the styling of your website, you will be sure to grow your business rapidly. There are many food industry businesses that do not take the time to connect with consumers in this personal manner, and it can lead to the ultimate failure of the business.
Advertising for a Coffee Shop
There are many ways that you can advertise your business. You will have a wide variety of options to utilize, and this can seem daunting at first. Don’t panic, though! There are some easy ways to make sure that you are not going to be throwing money away at ads that will not deliver results for your brand. You will need to try out various kinds of advertising as well as various ad styles while you build your business. The more you can target and optimize your outreach, the more likely you will be to connect with the right consumers and save money on your advertising efforts.
1. Social Media
This is the biggest and most effective bet that you can place on your coffee shop in the beginning. Social media ads are relatively affordable, and they can offer you big results, particularly locally when you are starting out. These ads are very simple to target and can offer you access to a clientele that you might have been unable to reach otherwise. Facebook gives you built-in functionality for A/B testing, data collection about who is looking at your ads, and even more nice features within their business suite.
When you generate social media ads, you need to remember that people will be scrolling by them quickly in their newsfeeds. Make sure that your tagline and headers are snappy and that you have the right language in the first few sentences of the ad. You should also consider the images that you use for these ads very carefully. This is the first impression of your shop and your brand, and it needs to pack a punch.
Think about the kinds of images or videos that evoke a response in you. You will need to craft ads that say exactly what your company stands for and can offer to consumers at a glance. This means that your advertising materials and content need to be noticeable and have the right ethos built into them for this kind of quick contact.
If your business is sustainability-focused, make this a big part of your ad. You will want people to be able to see instantly that you are giving back to the community or a big cause that you are invested in. If your business is interested in offering unique flavors and blends, make it clear right off that this is the goal of your shop.
You will need people seeing your ads to be positive that your shop will meet their needs and interested enough to go there to try out the coffee as soon as possible. Social media can deliver this immediacy to consumers with ease, and you can make the most of these ads in many ways.
2. Promote Reviews
You will want to have lots of reviews for your business online. It does not matter whether these reviews are posted on social media on your business page or whether they are delivered on Yelp or other review sites. You will need to solicit this information to make sure that people will take your business seriously.
You can ask consumers to review your business by offering something in exchange for reviews. You can also just hand people business cards with their order or ask them verbally at the cash register or drive-up window to please take a moment and review your shop. When you use a permanent reminder like a business card, you can deliver the information for your various social media sites and your website, as well as give them a reminder for your business’ name and location.
Reviews are also based on great service and a good experience. If you are not focused on providing these things to your customers, you will have trouble seeking these positive reviews. The best way to promote reviews is really just to provide great service and good food. If you can do that for your consumers, they will be very likely to tell people about you through reviews.
Many businesses neglect this part of the business marketing plan that they have in place because they do not realize how important it is for the overall health of their marketing plan. This is a critical part of the building process to support a marketing plan for all food-industry businesses. You will need to get reviews posted about your business as soon as you can before you can move on to other parts of your marketing plans.
3. Choose Your Larger Marketing Plans
If you are at the point where you are thinking about moving onto bigger advertising, you will need to think about the cost of this advertising when compared to the expected results that you will gain from its use. If you want to add a billboard or some other form of larger advertising to your plans, you need to think about your location and what this expense can do for your business.
Part of the trouble with local businesses that are advertised in this way is that there is seldom a huge benefit for this kind of spend. If you are located near a freeway, or you are at a location where traffic and other concerns might lead people to drive by without seeing your business, this can be a big help. However, if you are in the middle of town and you are only going to be capturing traffic from people walking by or people who saw your shop online, you should probably think about the expense of something like a billboard carefully.
Larger marketing ideas that tend to be more effective for food-related businesses are awareness-boosting campaigns that can be conducted through social media or through connections with local events. If you can sponsor a local event of some kind or have your company included in the swag that is offered to people participating in a 5K, for example, you will reach more people than you would with a large and expensive billboard.
This kind of business is often a grassroots kind of business at the beginning, and you will get a lot more from your marketing plans if they promote word of mouth and are not aimed at large-scale plans. This is a great kind of business to start if you are not comfortable spending money on things like billboards and TV ads, and you will get great results for your local advertising efforts when compared to these bigger and more extravagant kinds of ads.
4. Tell Staff Your Marketing Goals
One of the best ways that you can promote your business goals is to make sure that your staff knows what they are. You will want your team to work hard to promote the values that matter to you and to make it clear to your consumers what your business stands for. The people who interact with your consumers are the first impression that your business leaves.
Without staff that is involved in the marketing process, it can be much harder to meet marketing goals. Beyond informing your staff about your plans for your business and the goals that they need to help you meet, when you create a positive work environment, your employees will promote your business for you. Happy employees will tell everyone about where they work, and they will deliver your brand’s message for you.
You can also make sure that your team wears clothing that shows your business logo. This way, when they leave work for lunch or when they are done for the day, they will be wearing items that state the name of your shop. People they meet might ask where they work or ask about your shop because they see their gear.
When you make sure that your team stands for your business and stands behind your business, you will be promoting your shop with each interaction that consumers enjoy when they visit it. This is a critical part of promoting a local business that many companies neglect.
5. Be Present at The Shop
Another factor that can sometimes get lost in the shuffle is that you, as the business owner, need to be at the shop all the time. In the beginning, you are the voice, the face, and the marketing push behind your coffee shop. Since this is a local business, people will respond favorably to being able to chat with the actual owner when they get their coffee.
Being on-site also ensures that you know what is going on with your fledgling business. You will also be able to stay on top of any issues or struggles that are impacting daily processes at your store. When you know what is going on every day, you can attend to the issues that crop up right away.
Your presence will also ensure that your staff will stay on task and stick to the plan that you have laid out. When you have staff defining your business on their own, the course of your company might deviate from what you were planning. It can take a few years to establish the coffee shop of your dreams, and you will need to be involved with its daily operation in the beginning.
6. Decide What Kinds of Communication Work Best
There are many kinds of communication that you can use to tell people about your brand these days. You will want to find the right combination of communication styles to suit the area that your shop is in and the crowd that your shop is intended to connect with.
Communication via social media and word of mouth can do wonders for this kind of business. You will need to figure out the right kinds of ads that you can use with A/B testing, and you will need to try out different forms of local connection-making. These kinds of trial-and-error communication attempts can tell you a lot about the best ways to connect with your consumers.
When you test out different forms of communication, you often find that you are actually targeting a different group of the population in your local area than you might have expected. You can choose to continue on this course and embrace this as your target audience, or you can adjust your outreach to try to encompass a larger segment of the population.
Communication styles can vary depending on the kind of demographic that you are getting most of your business from, but you can also elect to reach out to different groups in their own unique ways. When you reach out to consumers in ways that speak to them, you can connect with them on a deeper level. If you have the time to create a couple of different advertising formats for different groups of consumers who might be interested in your shop, you will find that you can often attract a wide range of people to your business.
7. Consider Getting the Help of an Expert
If you have found that you are not ready for the process of building a marketing strategy and branding campaign, don’t worry! There is a lot that goes into this process! You will find that many people in the position of owning a business choose to work with an expert who is good at managing social media, or they will elect to hire a company that can manage the marketing plan creation and branding strategy that you end up using for your company.
If you have the cash upfront to get this kind of expert help, it can make a big difference in your success in creating a branding plan and in developing your marketing strategy overall. There are many things that are time-consuming about planning out all of the marketing opportunities for your business, and you might not even have the bandwidth to attend to them without some help.
When you work with a social media manager or someone who can create your overall marketing strategy, you will tap into skills that you might not have. This can be a big benefit for any kind of business, and if this is within your budget, it can be worth the investment.
Everything from the models that need to be chosen for ads to the video and text that are delivered in your Facebook ads can be handled with ease by a marketing expert. You will be able to just sit back and go to meetings where future marketing plans are decided upon. This can help you to be free to manage your shop and run your business without having to worry about the nuts and bolts of your marketing plans.
If you are able to hire a marketing manager, this can also attend to this need for your business. In this scenario, this marketing manager will handle all of your shop’s marketing needs, and they will run your social media page. This is a slightly different process than hiring a marketing company to manage all of your advertising, and it can be a happy medium between spending the money to contract with a marketing company and managing your marketing efforts on your own.
Marketing a Coffee Shop Can be Easy!
If you use the right tools and tips, and tricks to manage your coffee shop, you can get your marketing plans off on the right foot. Marketing involves generating a brand for your business and taking care of the outreach on social media and in your community to get people invested in your business. When you do this process correctly, you will be able to leverage access to the right consumers, and you will develop an identity for your business within your local community.
Developing the marketing plan for a coffee shop is a unique experience that is often based first on the locality that you opened your shop in. When you are working on this kind of food-based shop’s marketing, you will have to know the area that you are developing the shop in very well to get the most from your marketing efforts. There are many reasons why coffee shops can be advantageous to own, and this part of the marketing process can be easier to navigate than other kinds of marketing for different business types.
If you have just opened up your coffee shop or are just planning out the shop that you want to invest in, you will need to use this guide to get your coffee shop marketing plans on track from the start!
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1. Detalka Anticafe
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What travellers are saying.
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