writing a coffee shop business plan

Writing a Business Plan

While it may be tempting to put off, creating a business plan is an essential part of starting your own business. Plans and proposals should be put in a clear format making it easy for potential investors to understand. Because every company has a different goal and product or service to offer, there are business plan templates readily available to help you get on the right track. Many of these templates can be adapted for any company. In general, a business plan writing guide will recommend that the following sections be incorporated into your plan.

The executive summary is the first section that business plans open with, but is often the last section to actually be written as it’s the most difficult to write. The executive summary is a summary of the overall plan that highlights the key points and gives the reader an idea of what lies ahead in the document. It should include areas such as the business opportunity, target market, marketing and sales strategy, competition, the summary of the financial plan, staff members and a summary of how the plan will be implemented. This section needs to be extremely clear, concise and engaging as you don’t want the reader to push your hard work aside.

Company Description

The company description follows the executive summary and should cover all the details about the company itself. For example, if you are writing a business plan for an internet café, you would want to include the name of the company, where the café would be located, who the main team members involved are and why, how large the company is, who the target market for the internet cafe is, what type of business structure the café is, such as LLC, sole proprietorship, partnership, or corporation, what the internet café business mission and vision statements are, and what the business’s short-term objectives are.

Services and Products

This is the exciting part of the plan where you get to explain what new and improved services or products you are offering. On top of describing the product or service itself, include in the plan what is currently in the market in this area, what problems there are in this area and how your product is the solution. For example, in a business plan for a food truck, perhaps there are numerous other food trucks in the area, but they are all fast –food style and unhealthy so, you want to introduce fast food that serves only organic and fresh ingredients every day. This is where you can also list your price points and future products or services you anticipate.

Market Analysis

The market analysis section will take time to write and research as a lot of effort and research need to go into it. Here is where you have the opportunity to describe what trends are showing up, what the growth rate in this sector looks like, what the current size of this industry is and who your target audience is. A cleaning business plan, for example, may include how this sector has been growing by 10% every year due to an increase in large businesses being built in the city.

Organization and Management

Marketing and sales are the part of the business plan where you explain how you will attract and retain clients. How are you reaching your target customers and what incentives do you offer that will keep them coming back? For a dry cleaner business plan, perhaps if they refer customers, they will get 10% off their next visit. In addition, you may want to explain what needs to be done in order for the business to be profitable. This is a great way of showing that you are conscious about what clear steps need to be taken to make a business successful.

Financial Projections & Appendix

The financial business plan section can be a tricky one to write as it is based on projections. Usually what is included is the short-term projection, which is a year broken down by month and should include start-up permits, equipment, and licenses that are required. This is followed by a three-year projection broken down by year and many often write a five-year projection, but this does not need to be included in the business plan.

The appendix is the last section and contains all the supporting documents and/or required material. This often includes resumes of those involved in the company, letters of reference, product pictures and credit histories. Keep in mind that your business plan is always in development and should be adjusted regularly as your business grows and changes.

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Your Guide to Writing a Business Plan

If you’re starting a new business, then you need an effective plan. Not only does this enable you to plan your company, but it also gives potential clients an insight into how your business works. A business plan is also vital if you want to attract investors or secure a loan from the bank. Drafting a business plan is a complex process, but it doesn’t have to be. This guide will ensure you create a definite plan to impress investors and clients. 

When creating your business plan, there are some essential elements you must include. The Executive Summary provides a description of your business, and what you hope to achieve. People usually write at least one page, but leave their Executive Summary until last.

You’ll also need to detail what your business offers and define your target audience. This makes it easier for people to see whether your company has a chance of succeeding. The opportunity section is also an excellent way for you to see what competitors offer and how you can create a USP to stand out from the competition. 

Appealing to Investors

Every business that wants growth and prosperity must ensure they promote themselves to potential investors. Business plans aren’t just about what the business is, but who is part of it too. Detail your current team members and explain what they bring to the company. Investors want to know they’re making a wise investment.

Your current finances and financial forecast are also essential aspects of your business plan. Look at your products, how much you’re selling them for and what kind of profit margin you expect to gain. It’s also vital you detail your outgoings and look at how various economic situations could affect your finances. 

Writing a Winning Executive Summary

There are problems in every market, and a successful business solves that problem. If you can show how you’ll be able to offer solutions in your business plan, you’ll appeal to investors. Choose your target audience based on research and ensure you show your research. There are many ways to conduct market research including defining SOMs, SAMs and TAMs. 

TAM stands for Total Available Market and comprises everyone you want your product to reach. Your Segmented Addressable Market (SAM) is a specific portion of the market you’ll target. This is important because it shows you’re able to direct your product at the right people and not just everyone. Your SOM (Share of the Market) is what you feel you’ll gain with your product.  

How to Determine Pricing

Pricing your product is one of the most challenging things you’ll have to do. There are many things to consider, such as how much it’s worth and making sure you don’t charge unrealistically. Many new businesses believe undercharging is the best way to go, but doing this can undermine your company’s authority and cause fewer people to be interested in investing.

Market-based pricing involves looking at your competitors and evaluating their prices. Which company has the most customers? How does their pricing match others? These are all vital aspects you should consider. Remember, customers expect quality and a fair price, so make sure you combine the two. 

Future Goals

Investors and banks want to know that you’ve considered what the future will hold for your company. When you write your business plan, be sure to take into account how you see the company growing, what you’ll do to ensure it thrives and that you understand the potential risks. Banks and investors want to know that you can build a business and are aware of the obstacles you’ll have to overcome.

Starting your own business doesn’t have to be difficult. If you ensure you produce a robust business plan, it can be an exciting process. Your business is part of your future, so start by outlining your goals and look forward to seeing results. 

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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.

Business Overview

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

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

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

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

Management and Staff

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

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

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

Coffee Shop Market Analysis

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

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

Customer Analysis

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

Sample Menu

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

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

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

Marketing Plan and Publicity

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

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

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

Business Operations and Operating Plan

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

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

Retail Space

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

Specialized Equipment

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

Financial Forecast and Expenses

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

Your financial forecast and expenses section should include the following:

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

Coffee Shop Business Plan: Next Steps and Plan Template

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

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

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

FAQs: Coffee Shop Business Plan

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

How profitable is a coffee shop?

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

How do you start a coffee shop business?

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

How much budget is needed to open a coffee shop?

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

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

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

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

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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How to Create a Coffee Shop Business Plan

Sample plan illustrates the process

• Section 1: Executive Summary

Section 2: Business/Industry Overview

Section 3: market analysis and the competition, section 4: sales and marketing plan, section 5: ownership and management plan, section 6: operating plan, section 7: financial plan.

• Section 8: Appendices and Exhibits
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Susan Ward has run an IT consulting firm and designed and presented courses on how to promote small businesses.

A simple coffee shop business plan can help you get your business off the ground by following a standard layout consisting of a single document divided into several sections. Included should be a description of the organization, market research, competitive analysis, sales strategies, capital, and labor requirements and financial data.

Business plans range from a few pages to hundreds of pages long depending on the size and scope of the business. For a relatively small business like a coffee shop, it is best to be succinct and keep the plan to 30 pages or less, especially if you intend to submit it to bankers or investors for debt or equity financing. Potential investors want to see solid research and analysis presented in a concise form.

To give your plan more visual appeal Include photos, designs, or site plans of prospective premises to give your plan more visual appeal. Charts and graphs help illustrate financial information such as revenue projections.

A basic business plan for a coffee shop can be done in eight sections, plus a title page.

Enter your business information starting with the legal name. If you already scouted a likely location or have a website in place, include the addresses. If you have a business logo, add it at the top or bottom of the title page. The title page also should include a table of contents that lists each section and the page number where it begins.

Business Plan

Java Jake's Coffee House

October 15, 2017

2303 Stewart St. East Clovervale 609-458-2020 email: jj@javajakescoffeehouse.com web: javajakescoffeehouse.com

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

Table of Contents:

1. Executive Summary

2. Business/Industry Overview

3. Market Analysis and the Competition

4. Sales & Marketing Plan

5. Ownership and Management Plan

6. Operating Plan

7. Financial Plan

8. Appendices and Exhibits

Section 1: Executive Summary 

Place the executive summary near the beginning of the plan, but write it last. It should provide a short, concise, and optimistic overview of your business that captures the reader's attention and gives them an interest in learning more about it. The executive summary should be no more than two pages long, with brief summaries of other sections of the plan. 

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

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

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

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

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

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

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

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

Provide an overview of the coffee industry , the local market, and what makes your business unique.  

The Coffee Industry

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

• Gourmet coffee's popularity is increasing across diverse demographics
• Americans consume more than 600 million cups of coffee per day  
• Retail sales of coffee exceed $47 billion per year  

Our Position in the Industry

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

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

The Competition

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

What Makes Java Jake's Coffee House Unique

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

Demonstrate that you have thoroughly analyzed the target market and that there is enough demand for your products to make your coffee business viable. The competitive analysis includes an assessment of the competition and how your coffee business will compete in the sector.

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

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

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

The local customer base consists of approximately:

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

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

Compared to our compeition, we expect our revenues to grow strongly as we build our customer base:

Describe how you intend to entice customers to patronize your coffee shop, including advertising, promotion, pricing strategy, sales, and service. 

Our Product Offerings

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

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

• Sourcing premium beans and snacks and maintaining freshness at all times.
• Using a top-of-the line espresso machine and related equipment.
• Providing baristas with professional training.

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

Pricing Strategy

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

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

We will be offering counter service in a professionally designed, cozy, inviting interior space. Interior seating will be a mix of smaller individual tables for intimacy, and longer, bench-style ones for larger groups. Exterior seating will consist of weatherproof tables and chairs with available sunshade umbrellas. We intend to be open from 6:30 a.m.-9 p.m. on weekdays, and 7 a.m.-9 p.m. on weekends.

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

Advertising and Promotion

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

• Posters on the local campus billboards
• Our state-of-the-art website
• Daily specials announced on Facebook, Instagram, and Twitter

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

Describe the legal structure, ownership, and (if applicable) the management and staffing requirements of your business. 

Ownership Structure

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

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

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

External Resources and Services

Melford's Design Services will be contracted for the interior design of the premises.

Jackson and Jackson will provide accounting services for the business.

Jody's Catering will supply the baked goods.

Outline the physical requirements of your business, such as retail space, equipment, inventory and supply needs, labor, etc. For a business such as a coffee shop that requires custom facilities, supply chains, specialized equipment, and multiple employees, the operating plan needs detail. 

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

• 2,000 square feet of indoor space in a modern, well-maintained building in an excellent location
• Approximately 500 square feet of outdoor patio space, with lockup racks for bicycles
• Existing zoning for restaurant usage
• A four-year lease at $3,500/month with a fifth year free
• The building owner is responsible for trash collection, recycling, pest control, and security
• Utilities (water, electricity, gas, internet, phone) are estimated to be $800 per month

The previous tenant was a restaurant, and there are existing kitchen and washroom facilities already in place. The previous tenant has offered to sell used kitchen equipment at heavily discounted prices.

Two full-time and four to six part-time baristas will be hired at industry standard wages. Baristas will be trained at a regional barista training academy. The two full-time employees are previous employees of the owners. The part-time employees will be sourced from the local post-secondary institutions.  

Owners and staff will share all regular duties, including taking orders, making coffee/tea, clearing tables, restocking, dishwashing, maintaining washroom facilities, etc.

To increase employee loyalty, a bonus/profit sharing system will be put in place.  

The following equipment will be purchased:

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

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

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

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

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

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

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

Include these financial statements:

• Income Statements:  These shows your projected revenues, expenses, and profits. Do this on a monthly basis for at least the first year for a startup business.
• Cash Flow Projections:  These show your monthly anticipated cash revenues and disbursements for expenses. It is important for demonstrating that you can manage your cash flow and will be a good credit risk.
• Balance Sheet:  This is a snapshot summary of the assets, liabilities, and equity of your business at a particular point in time. For a startup, this would be on the day the business opens. Note that a new business will have no accounts receivable entries on the balance sheet. Note also that the balance sheet is much simpler for unincorporated businesses without employees. Income tax, pensions, medical, etc. are only applicable to incorporated businesses, as are earnings/retained earnings.
• Breakeven Analysis : Including a breakeven analysis demonstrates to financiers or investors what level of sales you need to achieve to make a profit.

Section 8: Appendices and Exhibits

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

Possible appendix/xxhibit Items include:

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

Need a Coffee Shop Business Plan? We Can Help

Want to know how to open a coffee shop the right way? Want a solid answer to the critical question “ how much does it cost to open a coffee shop ?” Before you start the process of opening a coffee shop, you need to do your homework and distill everything you learn into an exceptional coffee shop business plan.

After helping entrepreneurs (most with little or no coffee shop experience) in 30 states to launch more than 300 independent coffee shops , we know that a business plan is vital for success. We believe that it’s so vital that we include a fully editable electronic version with every purchase of Seven Steps to Success in the Specialty Coffee Industry , the proven guide to the coffee shop startup success.

The more you time and effort that put into developing your business plan, the more prepared you will be to open and run a successful coffee shop. 

The Elements of a Successful Coffee Shop Business Plan

Researching and creating an exceptional business plan will create a roadmap for transforming your coffee shop startup idea into a flourishing reality.

And, if you’re seeking outside financing for your coffee shop, a compelling business plan is an absolute necessity.

A strong business plan forces you to answer all the questions needed to set up your coffee startup to thrive. Done right, your plan becomes a reference manual for running a thriving coffee shop.

Your plan should include the following six sections plus a cover page. Most sections should take up a page or two but not much more – you’re not writing a book! Financial data, however, often takes a few pages.

Section 1: Executive Summary

The executive summary should actually be the last section you write. This one-page summary highlights and condenses key points from each section of your business plan.

Devote a few sentences to each section. Make them unique and interesting. Every word counts.

This is your chance to tell the story of your business. Next to the financial data, it is the most important part. It is the first page that bankers and potential investors will review.

After you write the executive summary, share it with bankers or business consultants then revise your plan based on their suggestions.

Section 2: Business Description

Write a brief description of your proposed coffee shop. Include the:

• Business name (get creative!)
• Location (physical or online)
• List of products or services – draft a potential menu
• Target market
• Law firm that reviews contracts
• Pictures of the space
• Leasing arrangements

Section 3: Management Profile

If you are the primary manager, summarize your resume. Highlight any restaurant or coffee shop experience you have. If you lack direct experience, emphasize transferable skills and accomplishments.

If you have managers or partners, include their education, employment record, skills, and accomplishments.

Don’t forget to highlight business consultants. Investors gain confidence from advisers with a proven track record.

Section 4: Information about the Coffee Industry and Your Competition

The coffee market in the USA continues to grow with many potential customers underserved, especially in rural areas! Conduct research into both the coffee industry and your community. Your marketing analysis should examine:

• Industry trends
• Key financial measures in the industry
• Local competitors – not only other coffee shops (both chains and independents) but also potential substitutes for coffee (ice cream, smoothies, etc.)
• Demographics and demand in your community
• Consumer coffee sales sensitivity to economic cycles

Section 5: Marketing Strategy

In your marketing plan:

• Explain what will set you apart and why customers will choose to buy from you (your unique selling proposition)
• Describe location of your coffee shop and the type (walk-in, drive-thru, kiosk, etc.)
• Identify target customers (geography, age range, income, interests, etc.)
• Outline marketing strategies you will use to attract customers

Section 6: Financial Data

Your financial plan outlines the assets, liability and cash flow for your coffee shop. Bankers will examine this section to determine the financial health of your potential business. This section requires three documents:

• A cash flow statement
• An income or statement, and
• A balance sheet.

Cash Flow Statement

The cash flow statement helps determine your business’ ability to pay its bills in the short term. It outlines:

• The initial investment (to help determine this, be sure to read about coffee shop startup costs )
• Level of sales needed to break even
• Expected expenses, and
• How much money – if any – you will receive from outside sources.

The cash flow statement also reflects investments. Ending cash is the money you have at the end of the month.

Income Statement or P&L

In simplest terms, the income statement or P&L shows total sales and expenses for the year.

Most information needed to fill out this statement comes from the cash flow statement (sales, cost of goods sold, expenses). You may use tax figures from an accountant.

Balance Sheet

The balance sheet summarizes assets, liabilities and net worth at a particular point of time, using this formula: total assets – liabilities = net worth.

Once you’ve completed the cash flow and income statements, the balance sheet is a matter of filling in the blanks:

• Total assets include assets (cash and inventory) plus fixed assets (equipment minus depreciation).
• Liabilities include accounts payable and long-term debt.

Any business, including a coffee shop, with high liquidity, low debts, and sufficient working capital has a higher probability of success. Keep enough cash or liquid assets on hand to cover six months’ worth of expenses.

The Proven Coffee Shop Business Plan Template

As an award-winning coffee roaster with a team of coffee shop startup consultants , Crimson Cup has the expertise to guide you from drafting an exceptional business plan through choosing a location and marketing your coffee shop. In fact, Roast magazine editors cited our education and training programs as a factor in choosing Crimson Cup as their 2016 Macro Roaster of the Year .

We train hundreds of baristas and coffee shop owners each year at our Crimson Cup Innovation Lab – the largest SCA-Certified Premier Training Campus in the Midwest. 

Founder and President Greg Ubert wrote the book on successfully opening and running a coffee shop. He and the Crimson Cup team of have helped hundreds of entrepreneurs become successful coffee shop owners.

“For many potential owners, writing their first coffee shop business plan can seem overwhelming,” Greg said. “We’re happy to share our experience and walk you through the ins and outs.”

You’ll find a complete coffee shop business plan template provided with Greg’s book, Seven Steps to Success in the Specialty Coffee Industry .

Greg has written about coffee shop business plans for S mart Business Columbus and CoffeeTalk magazine. He also serves on the boards of directors for both Heartland Bank and the Columbus Chamber of Commerce .

Going Beyond the Coffee Shop Business Plan

Greg’s book became the foundation for our 7 Steps to Coffee Shop Startup Success  process which has helped hundreds of entrepreneurs open and run successful coffee shops.

We provide all the support you need to open a coffee shop – without expensive franchise fees or royalties. You don’t even need to sign a long-term contract to buy our coffee.

More than just a short-term course on drink preparation or running a coffee shop, we offer hands-on training and ongoing guidance for both baristas and business owners.

With decades of experience in running coffee shops, our coffee shop startup consultants can help you go beyond the business to plan to:

• Choose the right location
• Lay out your shop for optimal success
• Create a menu that customers will love
• Hire and train staff
• Attract customers with low-cost grassroots and social media marketing techniques
• Serve great-tasting drinks with award-winning coffee and high-quality coffee shop supplies
• Prepare to thrive in good times and bad

Through our proven process, we have helped shape business plans for hundreds of successful independent coffee shops in 30 states, Guam, and Bangladesh. Can we help you too? If you have a question before purchasing the book, please contact us and we will respond within one business day.

Need More Information?

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Latest Post

How to Write a Coffee Shop Business Plan

If your goal is to open a successful coffee shop , writing a business plan is a smart place to start. The idea of a business plan is overwhelming and even scary for MOST people – But it doesn’t have to be. To put it simply, the point of a business plan is to get the idea for your business off of the cocktail napkin into a more organized and thought out format. It forces you to ask yourself some tough questions, get organized and think things through before you spend the first dollar. The first phase of writing a coffee shop business plan is figuring out if your business concept is even remotely viable. Meaning, is there even a market for this? Then after some high level analysis of some key points of research, if it seems plausible, you move into the second phase which is compiling all the costs associated with launching the business. This will include things like rent, equipment, buildout, and so on. After you have figured out what it will cost to launch the business, you need to figure out how long it will take to get the your initial start-up investment back out of the business. Finally, you need to figure out what the next steps are for growing the business once it has become profitable. This is an essential document if you seek financing or outside investment in your coffee shop business. Again, it doesn’t have to be difficult, you just need to know what the lenders and investors are looking for. To write a coffee shop business plan just follow this step-by-step template. 

7 Essential Elements in a Coffee Shop Business Plan

1: executive summary.

The executive summary is the introduction to your business plan. It highlights the most essential elements of your plan in a clear, concise manner–it shouldn’t take more than two pages. Using positive language, this section may summarize your goals and objectives, a description of the gap you’re filling in the market, and your high-level business concept. You want the person reading this section to have enough information to feel optimistic about your idea and eager to dive deeper into the details. 

Even though this is the first section in your business plan, it might serve you to write it last. It needs to be refined and polished, as it can be the make-or-break section for potential stakeholders. You’ll be able to more effectively prioritize and bring to light the best parts of your business plan once you’ve written all of them out.

2: Company Summary

The company summary section of your coffee shop business plan features a nuts-and-bolts description of your company and explains the concept in depth, and what will make it disruptive and different from every other coffee shop. Include the following:

• Proposed name of the coffee shop
• Owners’ names 
• Location (it may just be a city and state for now)
• Mission and Vision
• Company history (Any information that describes events that led up to the idea for the business)
• Overall unique and differentiating concept (what sets it apart)

(Remember, anybody can have a great product or service. Meaning, anybody can start a coffee shop business and sell delicious coffee, pour beautiful latte art, and have an aesthetically pleasing interior design. At this point these factors are expected by consumers – They fall within the most basic consumer needs. Sadly, most coffee shop owners believe these are their major differentiating factors… Think about the last five coffee shops you’ve visited. They probably all offered around 95% the same user experience, menu, and messaging with slight twists on the aesthetics. You need to dig deeper. How will you set your business apart from all the rest? What will make your coffee business unique, disruptive, and special? Most importantly, how will you keep your coffee business fulfilling and relevant 2 years from now?)

3: Management Team Overview

The credibility of a new business always hinges upon the credibility of its management team. The goal of this section of your plan should be to impress upon the reader the trustworthiness and credibility of your team. Include information on the background and experience of each member, and highlight their main accomplishments in this (or related) businesses up to this point in their careers.

4: Product and Customer Targeting Strategy

Every coffee shop serves a slightly different group of people. Who are YOUR people? Men. Women. Anyone who drinks coffee? This would be way too general! You first need to know your unique selling proposition that sets you coffee shop apart. (It isn’t having great coffee! Everybody in the coffee business says they have great coffee.) You need a unique point of view where you can plant your flag in the ground to differentiate from other coffee businesses. Then you need to identify who specifically will align most with your concept, vision, and unique point of view. (YOUR people, also known as a target audience.) How will you reach your target audience? How will you influence their buying behaviors? What is your marketing budget? (For more information on identifying your ideal customer, read our post here. )

5. Store Design Ideas, Equipment Choices, and User Experience

In this section, describe not only the design choices and aesthetic of your cafe, but go into detail about your disruptive and unique user experience too. Make sure the environment and user experience directly tie into your business concept and the aspects that make it unique and disruptive. Think about how customers can interact with your environment, products, and staff differently than every other coffee shop. How will it stand out? (Here’s a tip. Don’t look for your inspiration inside the 4 walls of the specialty coffee industry. Dare to be different. We suggest looking for inspiration in unlikely and unrelated places.)

These are topics we discuss in great depth in our 3-Day Coffee Business Master Class and our How to Open a Coffee Shop Online Class , we also provide sample coffee shop floor plans, equipment lists, and guide students through creating coffee shop concepts with staying power. Check out our class schedule to learn more.

6: Proposed Location and Market Analysis

Successful coffee shop owners know that location is especially important in this business. One major point to consider is that it takes more than just finding a location near a major thoroughfare, business park, residential area or shopping center. You need to make sure the “soil is fertile” with YOUR specific target customers that will actually support your coffee shop business concept. Propose a handful of specific locations that are rich with your ideal customers. Also, do some research into factors such as market size, the area’s projected growth over the next 5, to 10 years, drive-by-traffic, and walk-by traffic. (For more information on finding the right location for your market, read our post here. )

7: Financial Plan

A successful business start up is one that is able to ramp up sales fairly quickly, with the goal of bringing in more revenue than it requires to keep the business running. In other words, it needs to be able to turn a profit. This is what your financial plan can help you determine. 

Sit down with a good spreadsheet software program and make educated but slightly conservative estimations on factors like:

• Estimated number of transactions per day
• Projected average $ transaction
• Estimated gross sales per day, week, month, and year
• Start-up budget based on your location’s estimated earning potential
• Operating budget including fixed expenses and prime costs
• Projected net profit after all expenses have come out
• Return on start-up investment timeline
• 5 Year growth strategy

This is one of the most critically important aspects of writing a coffee shop business plan. We teach our students a very detailed and easy to grasp process for how to project all of the above financial bullet points of the business plan and a lot more in our 3-Day Coffee Business Master Class and our How to Open a Coffee Shop Online Class . We also provide a coffee shop 5 year financial plan template and budgeting spreadsheets. Since we have helped so many students open successful coffee shops over the years, this is something we have a lot of hard data on – not just vague industry averages! If you need help writing your coffee shop business plan, we help!

Write your coffee shop business plan with expert guidance

For many entrepreneurs, writing a business plan is the first step in putting their ideas into motion. For comprehensive, step-by-step training to open, manage, or own a coffee shop, register for our Texas Coffee School classes in person and online.

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Hands-on training for every step of starting your coffee shop business.

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Coffee Business Categories

Open a Coffee Shop

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Run a Coffee Shop

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Barista Tips

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Leverage our expertise

Download our Barista Guide

Register for a Coffee Class

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

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How To Write Your Coffee Shop Business Plan

How to write a coffee shop business plan.

Business Plan for Coffee Shops Series

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

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

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

The next thing to do is get your game plan together.

One way to ensure you do everything right (and not miss anything along the way) is to write a thorough coffee shop business plan .

Sitting down to write a business plan may seem daunting or tedious. It doesn't have to be. Putting together your vision can be fun and exciting.

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

Reasons for a Business Plan

Why Write a Coffee Shop Business Plan?

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

• You (the owner)
• Property Managers

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

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

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

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

Signing a coffee shop property lease will be a significant step in opening your coffee business. Many aspiring coffee business owners have not yet been through the process of negotiating a lease agreement. It may be tricky, so you must be prepared. I strongly recommend you listen to our property lease interview in our Complete Coffee Shop Startups Kit.

Benefits of Writing a Coffee Shop Business Plan

Business plans can effectively bring your thoughts and ideas in sync with your vision, budget, and other elements.

In addition to its necessity in some settings, writing a coffee shop business plan has other benefits.  

Let's discuss the benefits below:

• A business plan increases the chances of success.
• Your coffee shop business plan will likely save you money (and time) 
• Business plans help keep people organized
• Ensures nothing gets left behind
• Propels you to develop a budget and stick to it

A Business Plan Increases Your Chances of Success

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

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

A Coffee Shop Business Plan Will Save You Money 

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

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

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

A Coffee Shop Business Plan Will Keep You Organized

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

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

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

Your Business Plan Ensures Nothing Gets Left Behind

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

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

A coffee shop business plan ensures that all the essential parts of your business are addressed.

A Coffee Shop Business Plan Details Your Budget

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

For some, figuring out a coffee shop's budgetary needs may be a significant hurdle because you may be unfamiliar with them.

However, taking the time to flesh out your budget, costs, and the money needed to open ( financial projections ) in good faith will provide you with tremendous insight into how your coffee business will function.

By knowing where you are financially, you will then make appropriate (or even better) decisions in launching your coffee shop.

Business Plan: Your Budget and Cost Estimates

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

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

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

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

You can let the process drain you or use it to gather your creative energy! To save time, I recommend getting our free coffee shop business plan template found in our  Complete Coffee Shop Startup Kit . You'll also want to look at our coffee shop business plan guide for a better background and help with each section.

How Long Does a Business Plan Have To Be?

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

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

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

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

Business Plan Description

Elements of a Coffee Shop Business Plan

Write a Coffee Shop Business Plan

Where do you start.

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

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

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

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

Start Your Business Plan Writing With The Following:

• A business concept (Description)
• Know your target customers and build your menu around them.
• Detail your coffee equipment
• Your coffee shop budget

Once you've settled on these business plan subjects, you'll be able to move forward with developing and writing the rest of your business plan. Everything from your coffee shop branding, management, and barista training .

Coffee Shop Business Plan Template

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

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

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

Trending Articles on Coffee Shop Startups:

Questions & Answers

Related Questions:

Is a business plan required for my coffee shop business.

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

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

Fortunately, the simple answer is NO.

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

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

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

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

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

How Do I Use a Coffee Shop Business Plan?

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

By this, your business plan will grow with you and your coffee business. Therefore, нour business plan will always change, adapt, and need to be modified.

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

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

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

Coffee Shop Business Plan Continued

Should I pay someone to write my coffee shop business plan for me?

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

Why you should write your own business plan:

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

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

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

Reasons Why Some Never Start Their Business Plan:

#1: Unfortunately, some don't know how to start writing a coffee shop business plan.

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

#2: The perception that a business plan is too difficult to start.

Starting a business plan isn't necessarily hard, but it does take work. It takes time and thoughtfulness. Writing a business plan doesn't seem fun or anything you imagined when you think about having a fun coffee business. While planning doesn't guarantee success, we know that not planning will most likely lead to failure.

#3: Some think their coffee business is too small and not “worth it” to write a plan.

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

#4: Many believe they can keep their “business plans” in their head.

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

Why Do Coffee Shops Fail?

Main Reasons Why Coffee Shops Fail

There are several main reasons why coffee shops fail . The failure to adequately plan is among the top reasons coffee shops fail.

A lack of business planning can ruin any business, including a coffee business. Without planning your coffee shop setup, you'll likely make many more mistakes, spend a lot more money, and have plenty of headaches. 

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

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

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

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

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

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

Get The Complete Coffee Shop Startup Kit &

Start your coffee shop planning.

Comprehensive. Convenient. Affordable.

Coffee Shop Startups is the premier coffee shop business resource for aspiring entrepreneurs. We provide the most comprehensive way to research and plan your coffee shop business.

Our Complete Coffee Shop Startups Kit is packed with everything you need to know before you open your coffee shop business. With hours and hours of one-on-one interviews, you'll hear from real-world coffee shop business owners and experts.

When you purchase The Complete Coffee Shop Startups Kit , you receive an invaluable collection of exclusive resources designed to help your coffee shop business grow.

These tools will get your coffee business on the right track and give you the motivation to move forward with confidence.

There’s never been a better time to start a coffee shop business. And there’s never been a better resource to help you get started the right way.

Now’s the time to take action – but only you can do that.

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Explore In-Depth Coffee Business Articles:

Here's How to Open a Coffee Shop With No Experience Successfully

Should You Serve Alcohol at Your Coffee Shop?

Design a Coffee Shop the Smart Way

Seven Ways to Open Your Coffee Shop With No Money

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13 Tips to Open a Successful Coffee Shop

Candice Landau

12 min. read

Updated November 13, 2023

Free Download:  Sample Coffee Shop Business Plan Templates

Worldwide, experts estimate that people drink about 2.5 billion cups of coffee a day. Sales in the ready-to-drink market—which includes coffee shops—are forecast to grow by 67 percent between now and 2022. Additionally, coffee and other ready-to-drink shops show incredible resilience in volatile markets, helping to eliminate some of the uncertainty associated with small business ownership. If you’ve been thinking of combining your love of coffee with your entrepreneurial spirit, it may be time to try your hand at opening a coffee shop.

• What You Need to Open a Coffee Shop

Aside from a love of that sweet java, you’ll want to get a few things in order to get your shop up and running. To help with this, Jack Wilson, owner of Radio Coffee and Beer in Austin, Texas, and Marc Renson, owner of Ambition Bistro in Schenectady, New York, stepped away from brewing and serving to offer 13 tips to prospective owners. Here’s what they recommend you consider when starting a coffee shop:

• Write a business plan
• Find the right location
• Develop a floor plan
• Hire an accountant
• Find local funding options
• Save money for your personal expenses
• Compare prices and quality on everything
• Network with lenders and other coffee makers
• Develop your marketing plan
• Focus on the Exterior
• Remain positive
• Hire slowly
• Set high standards
• 1. Write a business plan for your coffee shop

One of the most vital steps you’ll take toward starting your coffee shop is to write a business plan. This document spells out:

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• What your business is and who it serves
• How it will be profitable
• Your target market (primary customer demographics)
• Your competitors
• Sales and revenue projections
• Milestones and goals

Keep your business plan lean

Before you dive into creating a traditional, long-form business plan, we recommend creating a one-page pitch. This will allow you to quickly validate your business idea and get a good sense of who your market is, how you’re going to reach them, and find ways to differentiate yourself from your competitors. Will you serve pour-overs exclusively? Will you only use high-end coffee grinders and bean varieties? Will you include baked goods on your menu as well?

Similar to a thorough executive summary, this one-page pitch or Lean Plan  is a faster, more efficient way to plan your business.

Browse our free coffee shop sample business plans

Need help getting started? Check out our business plan templates for guidance. They’re free real-world examples for you to work from and are available to download and edit as Word documents. Whether you’re starting a little coffee and internet café or a coffee house bistro, there’s a business plan template—a sample business plan—to suit your coffee shop needs.

Coffee Kiosk Business Plan

Read how The Daily Perc opened drive-thru and mobile coffee stands, serving coffee drinks and other beverages to their target market: daily commuters and captive consumers.

Coffeehouse Business Plan

This sample business plan describes how Dark Roast Java attracted a diverse clientele with its Mediterranean art glass decor.

Internet Cafe Business Plan

The JavaNet Internet Cafe was a true visionary business sample plan when it was written, and with most coffee houses adopting some form of this plan, it’s obvious that it was an idea ahead of its time.

Cafe Bistro Coffeehouse Business Plan

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

Coffee Roaster Business Plan

Beanisimo Coffee is a startup coffee roaster in Salem, Oregon. Founder Frank Jones aims to bring old-world Italian traditions and recipes to meet the market need for premium coffees. His target market is coffee houses, restaurants, and grocery stores.

The key to making a sample business plan useful is to take the time to modify it so it’s right for your business. A lot of the benefit of creating a business plan is in the process of thinking through each part of the plan. Not sure if you need a plan? Check out this article on reasons why having a business plan is important.

• 2. Find the best location for your coffee shop

To be successful, you need the right location for your coffee shop. You want something that fits the following parameters:

• Centrally located and easy to access
• Highly visible and experiences consistent foot traffic
• A space that fits your vision

Jack Wilson, the owner of Radio Coffee and Beer, warns that finding this dream spot won’t happen overnight.

His team scoured city after city, scouting each location, even going so far as to count pedestrian traffic by hand. He was looking for a former restaurant space, so he didn’t have to remodel everything from scratch. Finally, one day when he dropped his keys on the sidewalk he noticed a tiny “for sale” sign in a former tavern window. After months of searching, he’d found his spot.

Keep in mind that effective restaurant spaces are highly sought after and difficult to find. It may take a while to find just the right spot, but for a business type that benefits from ease of access and casual traffic, it’s worth taking your time to find the right spot.

• 3. Create a floor plan

A solid and welcoming floor plan is vital for a coffee shop. You want customers to have space to form a line, employees to have the materials they need within reach for quick access and a comfortable seating area. As with finding a location, it will take some time to produce a good floor plan.

According to Wilson you should, “walk yourself through every scenario you can think of,” he says. “If you’re making coffee, what needs to be near you? If you’re a customer, what do you want in a seating area? Visualize everything you can and start putting those ideas down on paper.”

Demo floor plan via RoomSketcher.

Design your cafe floor plan online

Here are a few free websites you can use to kickstart your planning process. Once you’ve drawn up an initial sketch on paper, get online and make it a reality.

Autodesk Homestyler (free): This is probably my favorite option. You can either start designing your floor from scratch or choose from a gallery of designs to personalize with your own look and feel. In fact, there’s even an option to experiment with real-world products and brands. When you’re done, you’ll be able to share the design as part of your planning process. It can even be used as part of your pitch to potential investors.

Floorplanner: This software is clean and simple to use, with plenty of drag-and-drop furniture and other items to fill out your design. It allows for both 2-D and 3-D visualization of your designs and can be easily printed out if needed.

Gliffy: While it may not be the go-to floor plan solution, I’ve included Gliffy on this list anyway, due to it being a well-known diagram and flowchart application. If you’ve used it before, you may want to give it a try to minimize the learning curve and jump right into designing. While you’re at it, you can even plot out your SWOT analysis.

• 4. Hire an accountant

One of the best pieces of advice Wilson says he can offer a new coffee shop owner is to turn your books over to an accountant. Aside from taking valuable time away from the business, having a numbers expert works in your favor.

“You won’t be as hard on yourself as you sometimes might need to be,” Wilson says. “Plus, you will make assumptions that an accountant wouldn’t make.”

In reality, your accountant is really your small business consultant. Make sure you find someone who believes in you and can help accomplish your business goals. If you’re unable to hire an accountant right away, you can also look to an online option like QuickBooks . The benefit of online accounting software is that you’ll have direct visibility into the day-to-day finances of your business. As an added benefit, it also directly integrates with the LivePlan business planning software, allowing you to actively compare forecasts and actuals on a dime.

Both are great options for managing your finances, and the decision fully depends on your situation and level of expertise.

• 5. Attain funding from local sources

Finding startup funds for a coffee shop can be difficult. Renson suggests talking with friends and family about investing in your coffee shop first. Present a solid business plan to them and ask them to invest in your business.

If funding via your family isn’t an option, or if you need more cash than your family can provide, Renson suggests looking into local loan options. In some cases, cities offer business assistance programs to offset costs. Consider an SBA-backed loan or see if a local bank or credit union is an option. Keep in mind that any bank loan will require you to show evidence that your business has some traction already. They want to know you’re a reasonable risk. So if you’re not up and running yet, there are other options for bootstrapping your business that you might consider.

• 6. Save money for your personal expenses

When identifying startup costs , don’t forget that you need to consider your own personal expenses alongside your business. All of your time and energy will be devoted to your new business, which potentially won’t be profitable for around six-months, even if you start bringing in revenue immediately.

So, plan ahead. Renson suggests making sure you set aside enough money to cover your personal expenses for at least six months if not longer. You’ll need to decide whether it’s possible to run your coffee shop while working another job or side gig or if you’ll be able to solely focus on your new business.

You will also want to understand the concept of cash flow . Considering that over half of the businesses that fail are profitable on paper when they fail, you’ll want to be sure you understand how much cash you’ll need on hand.

• 7. Shop around for everything

While you’re in the planning and funding stages and working through your finances,  keep a list or spreadsheet of all the startup expenses you’re looking at so you can compare prices.

Before you buy, try to get at least two price quotes for every item so you’re not losing money on basic necessities or recurring costs. Use the internet to your advantage and look for the best prices on everything from comfy chairs to espresso machines.

• 8. Network your heart out

Having a hot location and brewing superior coffee will only get you so far. You need to network to maintain a connection to the area and to attract more customers. Look into joining the local chamber of commerce, a business association, or partner with a local charity. Be visible in your local community and get dedicated partners long before you open your doors.

• 9. Develop your marketing plan — before you open

If you start marketing the day you open, you’re already behind. On opening day , you want people excited to come in. You’ll want to develop your marketing strategy and begin advertising to potential customers several months before opening.

Affordable marketing options to consider:

• Partner with other local businesses by providing free coffee in exchange for on-site advertising.
• Leverage social media as direct communication with your customers.
• Participate in local events, providing free specialty coffee samples leading up to your grand opening.
• Do a small direct mail or email campaign that sends coupons to local residents or businesses.
• Call everyone, including the media, to tell them about your plans to open the shop.

Image via Radio Coffee and Beer .

• 10. Don’t just focus on the interior of the building

It’s likely that you’ll stress over every little detail of your shop, from what paintings to hang on the wall to the point of sale system (POS System) you’ll use. That being said, it can be very easy to ignore the exterior of your shop or coffee cart which directly contrasts with choosing a location with heavy foot traffic.

According to Wilson, you’ll want to “pay attention to the landscaping, signage, and exterior appearance because that’s the first thing people see.” Some people decide whether or not to come in based on their first impression of the building, so make it count.

By creating a clean and unique exterior, you’ll begin to create a buzz in your community. People will start to wonder, who is setting up shop there? Every little thing you can do to attract attention to your coffee shop can serve as a marketing tool.

• 11. Have a positive attitude

Like every business, you’ll face challenges to get your shop off the ground. Renson says keeping a positive attitude when things aren’t going your way is a must. Not only does it benefit your outlook, but it showcases strong leadership to your employees and a welcoming presence for customers.

Fake it if you have to. If you get in the habit of keeping an optimistic attitude, even if it’s less than genuine to start, you’ll eventually teach yourself to stay upbeat and will keep those around you optimistic and ready to work.

• 12. Hire slowly

You need help manning the register, waiting on customers, and making drinks, but don’t hire too many people too fast. Renson suggests hiring a few friends, or neighbors who will volunteer to help you out for the first few weeks. Slowly, bring on staff as needed.

Hiring trusted staff can be tough. No matter how well someone does in an interview, you don’t know how well he or she fits until they’re on the floor. Keep a close eye on the register, Renson suggests, and don’t be afraid to let people go if they are hurting the business.

• 13. Set high standards

It’s okay to set high standards for your employees and overall business. That’s not to say that you should micromanage your employees. You’ll want to focus on effectively training your staff at the start and building an effective workflow that encourages collaboration and high-quality work. Their ability to make good coffee drinks quickly will have an impact on customer loyalty and satisfaction.

Starting an independent coffee shop is hard work, but that doesn’t mean it has to be a long-term struggle. If you focus on establishing these core pieces while developing your coffee shop business plan, you’ll set yourself up for success early on.

Clarify your ideas and understand how to start your business with LivePlan

Candice is a freelance writer, jeweler, and digital marketing hybrid.

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