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How to Start a Cafe

Last Updated: June 22, 2023 Approved

This article was co-authored by Pete Canalichio and by wikiHow staff writer, Christopher M. Osborne, PhD . Pete Canalichio is a Brand Strategist, Licensing Expert, and Founder of BrandAlive. With nearly 30 years of experience at companies such as Coca-Cola and Newell Brands, he specializes in helping brands find the most authentic parts of their story to build a brand strategy. Pete holds an MBA from the University of North Carolina at Chapel Hill and a BS in Physics from the United States Naval Academy. In 2006, he won an MVP Award from Newell Brands for his contributions to their Global Licensing department. He’s also penned the award-winning book, Expand, Grow, Thrive. There are 12 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article has 20 testimonials from our readers, earning it our reader-approved status. This article has been viewed 438,873 times.

Opening a small, cozy, "cute" neighborhood cafe may be the most common dream of the prospective small business owner, but "cute" doesn't pay the bills. [1] X Research source [2] X Research source Cafes run on tight profit margins, require a significant initial investment, and demand long hours and many headaches of their owner-operators. Before abandoning all hope, however, do your homework regarding the steps required to start a cafe. With the right planning beforehand, your cafe will stand a fighting chance of success, and of becoming the small business of your dreams.

Planning Your Small Business

Step 1 Write a business plan.

  • Title Page and Table of Contents.
  • Executive Summary, in which you summarize your vision for the company.
  • General Company Description, in which you provide an overview of your company and the service it provides to its market.
  • Products and Services, in which you describe, in detail, your unique product or service.
  • Marketing Plan, in which you describe how you'll bring your product to its consumers.
  • Operational Plan, in which you describe how the business will be operated on a day-to-day basis.
  • Management and Organization, in which you describe the structure of your organization and the philosophy that governs it.
  • Financial Plan, in which you illustrate your working model for finances and your need from investors.

Step 2 Familiarize yourself with the legal requirements.

  • To begin with, you'll have to determine the nature of your business organization. The options include (but are not necessarily limited to) a sole proprietorship, partnership, and limited liability company (LLC). There are pros and cons for each option. [4] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source
  • From there, you can begin investigating what business licenses and permits you will need to secure in order to open for business. Consider consulting your local chamber of commerce, the Small Business Administration , or similar group for assistance. [5] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source
  • For tax purposes in the U.S., you'll also want to secure an Employer Identification Number (EIN) from the IRS.
  • You may want to consider hiring a business attorney to help you navigate the legal processes.

Step 3 Secure funding for your business.

  • Take the time to scout out the best options for securing a small business loan from a financial institution. You may or may not find your best deal at a bank with which you already have a financial relationship. Organizations like the U.S. Small Business Administration can help walk you through the process of securing your best loan.
  • Your funding options need not stop with a bank loan and your own savings. Try to entice investors or partners with your business plan, for instance. If you are willing to deal with the potential pitfalls of doing so, ask family and friends for personal loans. Your creative options can range from running a crowdfunding campaign to renting out the third floor of you home. Always keep on the lookout for prospective funding sources. [6] X Research source

Step 4 Create your brand identity.

  • Consider the target clientele for your cafe based on your observations and research of the surrounding community, and your business goals. Is it nine-to-five office workers? College kids? A tech-savvy crowd, or people looking for quiet conversation? Let this information help guide your branding as well.
  • Your ultimate goal is to create "one voice" that speaks across everything from your promotional materials to your lunch menu to your bathroom decor. [7] X Research source
  • If you are having trouble developing a brand identity, or sense that your concept is becoming too complicated, seek out the services of professionals that focus in this area.

Preparing Your Cafe

Step 1 Find the right location.

  • If it has been previously used as a cafe, this may work to your benefit because you won't need to spend time and money converting it into a cafe. Of course, consider why that previous cafe failed.
  • Personally scout prospective locations. Count how many cars or people pass by over an hour during different times of day. People will seek out good food and drink, but a new cafe will have a better chance of building a loyal clientele if it is in a high-traffic area. [8] X Research source

Step 2 Adjust the layout and decor to suit your brand.

  • Try to match the brand of the business with a product that will be unique, unusual, but will also help to sell the business
  • While important, don't focus solely on things like wall color and lighting fixtures. For a cafe in particular, make sure you create a kitchen area with good traffic flow that allows those preparing food to move their feet minimally.
  • While you'll probably want your cafe to be a comfy spot where customers will want to come and linger, lay it out so that it is friendly to take-away customers as well. People who grab their food or drink to go cost you less to serve and make happy. [9] X Research source

Step 3 Acquire the equipment needed to run your cafe.

  • Look for savings where you can find them. Perhaps a mix-and-match, eclectic furniture decor can work with your cafe theme, allowing you to save some money by picking up used tables, chairs, and other pieces as you find them.
  • For a cafe, though, don't skimp on the key equipment, such as an espresso machine. If coffee is going to be your focus, make sure you can produce a quality product. People who pay a premium for coffee tend to know the difference. [10] X Research source
  • Research equipment rental vendors in your area. Consider multiple options to find your best deal, because you need to find savings wherever you can.

Step 4 Build your menu.

  • For a cafe in particular, it is often better to keep the menu somewhat limited, especially at first. Focus on key items that complement each other, such as a selection of pastries that pair up with your coffee options, or a manageable array of soups and sandwiches. [11] X Research source
  • Make sure you are an expert on the items on your menu, whatever its size. If you aren't already a coffee expert, research the subject extensively. Know where your produce comes from. Be able to discuss the sourcing of the meats in your sandwiches. Display a personal connection to your food, to separate you from the big chains. [12] X Research source

Step 5 Develop relationships with suppliers and distributors.

  • Suppliers are the lifeblood of a cafe. Without product that's there when you need it (at a fair price), you have nothing. [13] X Research source
  • Ask other restaurant and small business owners in the area which suppliers they use. Once you've selected your suppliers, work to establish and maintain a good working relationship with them. Don't be afraid to make a switch to get better prices or better service, though.

Opening for Business

Step 1 Market and promote your cafe.

  • While spreading the word, try to remain consistent with your brand identity in your promotional materials. [14] X Research source
  • Establishing a marketing budget for your grand opening (which some say should be 20% of your first year's marketing budget). [15] X Research source
  • Using traditional media, like TV, radio, and newspapers.
  • Using digital media like social networks, websites, and advertising technology such as Google Adwords.

Step 2 Hire and train your kitchen and waitstaff.

  • Familiarity with the cafe business is of course helpful, but pay at least as much attention to personality, temperament, and attitude. Conduct thorough interviews, and ask insightful questions (how they have dealt with adversity before and how they would deal with a particular example in the cafe, for instance). [16] X Research source
  • Remember, on the rare instances when you are not in the cafe, your employees will be the face of your business.
  • Once again, How to Open a Small Business provides useful information on hiring employees, including details on your initial responsibilities as an employer. [17] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source

Step 3 Open for business when you are ready.

  • You want your official grand opening to go as flawlessly as possible, so it may make sense to do a "soft opening" beforehand as a practice run. Invite a small group of guests, maybe even just friends and family, and run through the operation of your cafe. See what works and what doesn't before the official grand opening. [18] X Research source
  • Make your grand opening "grand" with ample advertising, giveaways, and whatever else will make people notice and be curious enough to stop in. Also think about the best day and time to officially open. When will your target clientele be most likely to come in? A workday morning? During the lunch hour? Weekend brunch?

Step 4 Keep them coming back.

  • For instance, offer a loyalty program. It's not just a way to retain customers, it's also a good tool to understand them and build strong relationships with them. The lure of a free coffee after all the spots on a card are punched out can be enough to bring people back until it becomes a habit. [19] X Research source
  • Beyond simple punch-cards or coupons, there are a number of loyalty platforms using QR code.They make it very easy to offer a loyalty program and they are also cost-effective. Whatever method you use, do not see a loyalty program as giveaways. Rather, see it as a powerful marketing tool.

Expert Q&A

Pete Canalichio

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how to make a cafe business plan

Thanks for reading our article! If you'd like to learn more about being an entrepreneur, check out our in-depth interview with Pete Canalichio .

  • ↑ http://www.forbes.com/sites/quora/2012/12/20/whats-the-secret-to-a-successful-coffee-shop/
  • ↑ http://www.slate.com/articles/life/a_fine_whine/2005/12/bitter_brew.html
  • ↑ https://www.sba.gov/writing-business-plan
  • ↑ https://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/choose-your-business-stru
  • ↑ https://www.sba.gov/content/follow-these-steps-starting-business
  • ↑ http://www.businessnewsdaily.com/1733-small-business-financing-options-.html
  • ↑ http://www.entrepreneur.com/article/231966
  • ↑ http://smallbusiness.foxbusiness.com/starting-a-business/2014/04/09/want-to-open-coffee-shop-read-this/
  • ↑ http://www.ladyironchef.com/2014/12/things-to-know-before-opening-cafe/
  • ↑ http://fitsmallbusiness.com/grand-opening-ideas/
  • ↑ http://www.entrepreneur.com/article/241524
  • ↑ https://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/establishing-business/hiring

About This Article

Pete Canalichio

To start a cafe, start by buying or renting a space that's in a high-traffic area, which will help you get more customers. Then, fill the space with all of the equipment and furniture you need, like tables, chairs, and coffee machines. Once you've set up your cafe, design a menu and find distributors and suppliers to buy your food and coffee from. Finally, hire employees and make sure you have all of the necessary certificates and registrations to be operating a business before you open. To learn how to write a business plan for your new cafe, keep reading! Did this summary help you? Yes No

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Cafe Businesses Guide: 12 Key Components of Cafe Businesses

This cafe businesses guide is your one-stop shop for learning how to open a cafe and run it successfully. From general opening steps to business plan components to marketing tips, we’ve compiled everything you need to open and operate a cafe business. Read on for these 12 facets of opening a cafe business. 

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How to Open a Café: 12 Key Café Opening Success Solutions

Learning how to open a café is the start of an adventure of business ownership, customer satisfaction and customer experience , and community connection. From hosting brunch in your café to managing inventory, there’s a lot of work to be done and fun to be had. These 12 first steps will get you headed in the right direction.

12. Dive Into Your Competition

Starting a successful café business is, in part, reliant on the current café scene in your location. Check out your competition, and see where there are gaps in the industry you can fill. You’ll find a way to start building into the community.

11. Write Your Business Plan

Every business should have a business plan. Not every business does, but when you write up a business plan, you’re that much more prepared to be successful. You can structure your business plan like a restaurant business plan . 

10. Find a Location

Finding your location will come into your competitor research, and is among the first things you’ll want to do. You could have a pop-up restaurant café option in different locations. Maybe you’ll find the perfect rental space. Whatever it is, start searching from the start. 

9. Learn All About Licensing

Your business license needs will vary depending on your location and what you’re serving in your café. If you’re serving alcohol, look into getting a liquor license . Be sure to check all requirements with your state and county.

8. Build Your Café Concept

Building your café concept can come from tips on how to develop a restaurant concept . Your café concept is similar to your business plan, but different in the goal. Concepting a café is all about finding out how you want to design your business from an aesthetic and customer-centric perspective.

7. Learn the Café Rules and Regulations

Beyond business licensing, there are plenty of rules and regulations you need to learn. From food saféty to general health and wellness, businesses–especially businesses serving food–have a lot of rules to follow. 

6. Build Your Menu Plan

Choosing your menu types and offerings is a vital part of your business plan and café plan in general. From the beginning you need a plan for what you’re serving and how you’re sourcing it. The importance of sustainability can come into play. 

5. Hire Your Stellar Staff

Hiring everyone from wait staff to a café manager to baristas is a critical move. It's ideal to do so once you’ve got your business situated for the grand opening. After you have a business plan set up and funding secured, posting jobs will help prepare you to bring in the best staff.

4. Gather Your Funding

Gathering funding can be a sticking point for businesses. If you have savings set up, you’ll be ahead of the curve. If not, getting a small business loan or finding other investors is something you should consider early on.

3. Organize Your Inventory Management

Getting your inventory management system set up is something to priortize as soon as you start buying inventory. The BinWise beverage inventory program can help you with liquids. BlueCart can come along for your general order management needs.

2. Find a POS System

Learning how to choose a POS system and finding the right one for you is crucial for making money and managing it well. Your POS system is one of the backbones of the technological support of your café. 

1. Build Up Your Marketing

There’s never a bad time to start your marketing practices. You can start marketing your café business as soon as you have it planned in a concrete manner. The more you get the word out, the more success you’ll have right out the gate. 

Opening a Café: Swinging Open Your Café Doors 

The process of how to open a café is the start of a great adventure in your own café business. This cafe businesses guide is the place to start learning about everything, including the cost to open a cafe. 

"Key Takeaway: Learning how to open a café is the start of an adventure of business-ownership, customer satisfaction and customer experience, and community connection."

How Much Does It Cost to Open a Cafe? 8 Cafe Cost Factors

When you’re learning how to open a cafe, it’s important to learn the answer to “How much does it cost to open a cafe?” Your startup costs, overhead expenses , and everything else will be a foundational part of your cafe business plan and future success. There is the cost of labor . Restaurant food cost will come into play. There are food inventory costs, where food inventory software may come into the equation. 

The cost to open a cafe can start as low as $80,000, but it can go all the way up to $1 million as well. Your cost will depend on the size of the cafe you want to open and your goals for the business. It’s similar in that regard to the cost to open a wine bar or the cost to open a pop-up restaurant . 

So, how much does it cost to open a cafe? The answer is, it varies. You can expect to spend up into the tens of thousands, if not more. These eight costs of opening a cafe will play into your overall cost. Finding cost-effective options where you can for these costs will help you lower overall funding needs. 

8. Location Costs

Your location costs are going to be some form of rent unless you buy a location outright. Depending on the type of cafe you want to open, a sole location that you purchase could be a great fit. Renting, however, gives you a little more flexibility. The price will depend on your location. The guarantee is that this cost will be ongoing. 

7. Inventory Costs

Inventory costs are another ongoing cost of owning and operating a cafe. Your inventory consists of all beverage and food items and ingredients. It also covers disposable items and things you’ll need to keep replenishing. Your inventory costs will likely be one of the highest costs on your list when it comes to items you need on hand.

6. Payroll Costs

Payroll costs are an ongoing expense once you hire your staff. When you’re just starting out, it may just be you for a bit, but that’s a good time to plan for payroll expenses. Budget to pay your employees a living wage, and plan for a future with more employees, since that is what business growth will require. 

5. Licensing Costs

Your licensing costs will depend on your location and what you want to put on your menu. A general business license is a fixed expense to plan for. Getting a liquor license will also likely be on your list. BinWise isn’t a legal advisor. Our recommendation is that you look into your local licensing needs to make sure you have everything you might need.

4. Marketing Expenses

Marketing expenses won’t be a huge part of your overall budget, but they are a very important part. Small business marketing is best kept to a small amount of your budget. Finding ways to make that amount work for your email marketing , content marketing , and business branding is key. 

3. Insurance Costs

Your insurance costs are another location-dependent cost. Some coverage areas to consider are the business location, your employees and their health and other insurance, and liability insurance. Consulting an attorney for small businesses will be helpful in making sure you have all your insurance needs covered.

2. Equipment Costs

Your equipment costs are primarily a startup cost. If you invest in the best equipment from the beginning, you can avoid some replacement costs down the road. Budgeting several thousand dollars for your equipment costs from the start will help you get what you need for a smooth business opening and success down the line.

1. Business Taxes

Business taxes are an ongoing expense that could derail your business if you aren’t prepared for them. Like many costs on this list, business taxes are location-specific. For your location, look up taxes beforehand, and work with an accountant to make sure you have your ducks in a row. 

The Cost to Open a Cafe: Cash and Credit for Your Cafe

When you’re starting your journey of being a cafe owner, there are plenty of questions you’ll find yourself asking. How much does it cost to open a cafe? How many employees do I need? How do I organize my menu with alcoholic beverages, coffees, and all manner of foods? All of these and more will come into your cafe business plans. 

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Writing a Café Business Plan: 9 Café Business Plan Steps

Writing a café business plan is one of the best concrete steps you can take toward opening and operating a successful café. These nine parts of the business plan will help you map out your cafe and prepare for upcoming expenses and points of concern.

9. The Executive Summary

Your executive summary is the place to briefly share an overview of all the sections in your business plan. It’s the place for stating what your business is, why you’re opening it, and how you’ll execute each step of the process. 

8. Success Plan

The success plan portion of your café business plan is the spot to identify the area of your industry you’re filling and what you’ll do for your customers. This is the place to share why your business will be a successful café. 

7. Competitor Analysis

Your competitor analysis is something that helps you to define the parameters your café will fulfill. This section is where you’ll check out the other cafés in your area, see what they’re doing and how it’s working, and what you can do better.

6. Market Analysis

Market analysis goes hand in hand with competitor analysis. Market analysis is explicitly an analysis of the customer market you’re striving to obtain. What is your market interested in? What are their current café options? What can you do to draw them in? Answer those questions in your market analysis.

5. Services Demonstration

Your services demonstration is the place where you’ll lay out what you’re offering in terms of services. You’ll want to touch on menu offerings, with a menu layout for food and safety checks. You’ll also want to write out your plan for hours and frameworks for operations.

4. Marketing Strategies

Your marketing strategies section is the place to overview your marketing goals and lay out a few marketing campaign plans. You should give a rundown on the marketing plan in terms of how you want to grow the business. Your campaign mock-ups can be more in-depth, to give you plans to start with.

3. Ownership and Management Structure

The ownership and management structure part of your café business plan is where you’ll define the ownership structure. This section is built for the purpose of having a set structure for legal and organizational needs. It’s especially important if you’re sharing your business plan with potential investors.

2. Operations Plans

Your operations plan section is the spot to give a walkthrough of what daily operations will look like. This will include things along the lines of opening and closing procedures, scheduling, and inventory management plans. It’s your place to make sure you have a plan to keep everything running well. 

1. Financial Plans

Your financial plans section is the place to write out your budget, and plan for any investment or loan needs. The budget section is for you, but it’s also to share with anyone who you will be asking for loans or investments from. Overall, this section’s purpose is to help you figure out what you need financially, and how you can get it.

Café Business Plans: Plan to Plan Ahead 

Writing a café business plan gives you more control over the startup and operations of your café business. Having a written plan is a way of solidifying your plan through a step-by-step analysis of each part of the business. 

It’s also a great resource for you to stay grounded in your ideas, and grow them with measured steps when the time comes. You can use it to decide which type of cafe you want to open.

"Key Takeaway: Writing a café business plan gives you an outline of your business you can refer to and expand on at any time.

Types of Cafés: 12 Classic and Innovative Types of Cafés

Learning about all the types of cafés is a delightful part of the journey of learning how to open a café. These 12 types of cafes run the gamut of what you can do with your cafe business.

12. Drive-Thru Cafés

Drive-thru cafés can take many forms. Some are coffee shops. Others are more along the lines of a Sonic-esque place, with a drive-thru and places to park. Many are somewhere in between. A drive-thru café is a great option if you’re working with a limited budget and you want to create a business that is easy to maintain.

11. Café Food Truck

A café food truck fits in among all types of food trucks. If you’re located in one of the best places to start a food truck business, a café food truck is a great plan. It can even turn into a café with a permanent brick-and-mortar location.

10. Coffee Shops

Coffee shops are the type of establishment many people think of when they hear the word café. A coffee shop café is a solid business plan for any location since you’re likely to find coffee lovers no matter where you’re at. 

9. Pop-Up Café

A pop-up café is a smaller scale version of a pop-up restaurant . With pop-up restaurant marketing tactics and delicious food, a pop-up café is another great way to open a cost-effective café business and draw in the crowds.

8. Café Bakery

When people think of cafés, after thinking of coffee they generally drift to considering baked goods. A café bakery, therefore, is the perfect place in the world of cafés to build a business that customers will love. Who can say no to delicious pastries and drinks all in one place?

7. Themed Cafés

Themed cafés are a subset of café businesses that can be many things to many people. A themed café is, at a base level, any sort of café. The unique type of café comes into play with the theme decided on by the owner. From a cultural theme to a location-based option, themed cafés can be anything you can dream up. 

6. Specialty Cafés

Specialty cafés are a café of any size or shape that has a specialized offering for customers. Some popular options are to offer a specific type of cuisine or a branded space that speaks volumes. 

5. Cat Cafés

Cat cafés do, technically, fall under the umbrella of themed cafés. Cat cafés have, however, become such a common and famed theme that they get their own spot on this list. You can serve up any dish at a cat café, the truly important factor is the cats!

4. Brunch Cafés

Brunch cafés make up some of the best cafés and the best brunch places around the world. That’s not an exaggeration, brunch truly has taken over the world in recent years. A brunch café business will bring in customers, as long as you get the eggs Benedict right. 

3. Pub Café

A pub café is, to put it plainly, a café type of restaurant with a pub design. This type of café blends in with hole-in-the-wall spots and greasy spoons. It’s a mix of cute and rugged that you can’t go wrong with.

2. Breakfast Café

Breakfast cafés are a subset of specialty cafés, with their specialty being everything to do with breakfast. You can do an expansive breakfast café with all manner of brunch and lunch items. 

1. Classic Café

A classic café takes the number one spot on this list as a classic for a reason. A classic café is a small restaurant, with a number of meal options throughout the day. It’s down the middle, and a perfect option for anyone looking to open a café and see where it goes.

Types of Cafés: What’s Your Type? 

These 12 types of cafés are a great source of inspiration for your own café business. Once you’ve decided on the type of cafe you want to run, it’s time to get into the business specifics, including cafe inventory management.

Cafe Inventory Management: 15 Facets of Cafe Inventory 

Cafe inventory management is a key component of the work that goes into opening a cafe and running it smoothly. Cafe inventory management, including these 15 facets of the inventory process, gives you more control over your cafe business.

Cafe Inventory Lists

These five cafe inventory lists are the main categories of inventory you’ll have in your cafe. Overall, everything in your cafe that needs to be kept in stock, in some form or another, is under the umbrella of these categories of cafe inventory management.

5. Food Inventory

Food inventory makes up a large and very important portion of your cafe inventory management. Food inventory management will help you focus on getting the best foods, and always having them ready for your customers.

4. Dishes and Cutlery Inventory

Dishes and cutlery inventory isn’t something you think about immediately when you think of food and related inventory, but it’s especially important to stay on top of. Replacing dishes and cutlery as needed is the main function of dishes and cutlery inventory. 

3. Cleaning Supplies Inventory

Cleaning supplies are a part of every working part of your cafe business. From cleaning the tables after customers have dined to keeping the kitchen clean, you need plenty of supplies. 

2. Business Maintenance Inventory

Business maintenance inventory is a broad category, as it covers everything you need, from a business standpoint, to keep the cafe running smoothly. This could be anything from office supplies, technological support, or accounting supplies.

1. Beverage Inventory

Beverage inventory goes hand-in-hand with food inventory for a cafe business. Your beverage inventory starts with the general list of the beverages you serve. It gets broken down from there into ingredients, bottle volume levels, and bar glassware . 

Inventory Software Support

Inventory software support eases every step of the inventory process. Counting by hand and keeping endless spreadsheets is an exhausting way to do inventory. These five software support systems make inventory streamlined, to give you one less thing to think about while you run your business.

5. Warehouse Inventory Software

Warehouse inventory software is a subset of general inventory software. Getting software that encompasses your inventory warehouse gives you greater control over your inventory every step of the way.

4. Accounting Software

Accounting software will help you when it comes time to have your books in order. QuickBooks is a piece of accounting software that is loved and trusted by many business owners industry-wide.

3. Food Inventory Software

Food inventory software will help you keep your menu fresh and ready for customers. Food inventory software helps you keep track of what you’re low on, so you never have to worry about your reorder point . 

2. Beverage Inventory Software

Beverage inventory software goes hand in hand with food inventory software. It’s there to help you keep track of drink ingredients and general beverage stock, so you can confidently serve up all the best drinks.

1. POS Software

POS software, or point of sale software, is a critical part of the software support of every business. Choosing the right POS system for your cafe business will keep your finances moving smoothly.

Cafe Inventory Management Ideas

Beyond cafe inventory management techniques and software support, there are ideas you can implement to make your inventory process more efficient. These five cafe inventory management ideas will help you stay on top of your inventory, and make it a helpful, headache-free part of your cafe business.

5. Make Use of a Perpetual Inventory System

A perpetual inventory system is one idea you should implement right away. It’s a system where you do regular counts, so you can avoid an intense inventory count and keep everything in line.

4. Stay Organized Every Step of the Way

A good inventory system starts with organization. From the moment you start your cafe, keep your inventory organized so you can stay on top of it.

3. Focus on User-Friendly Features in Software

When it comes to choosing the software that will help you with your inventory process, focus on user-friendly programs. When you’re in the throes of inventory, the last thing you want is inventory software that is complicated to use.

2. Share Inventory Duties with Management Employees

Sharing your inventory duties with managers and supervisors at your cafe will help to ease the process and build up your team. A cloud-based software will help with this endeavor.

1. Build Inventory Time Into the Schedule

Inventory can easily become something you dread every time it comes around. Avoid that situation by building inventory time into your schedule, so it’s never something that you have to struggle through.

Managing Cafe Inventory: Put Your Management Where Your Mouth Is 

Mastering cafe inventory management will give you control over the ins and outs of your cafe business. Once you’re set with inventory plans, it’s time to dive into using that inventory, including within your menu items. 

"Key Takeaway: Mastering cafe inventory management will give you control over the ins and outs of your cafe business."

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Menus for Cafes: 12 Menu Categories for Cafe Businesses

Learning about menus for cafes is a delightful part of learning how to open a cafe, for all types of cafes. Planning your menus is vital for cafe success, and fun for learning about what you can provide for customers. These 12 menu categories are a great place to start.

12. Pastries

The pastry section of your menu is a classic cafe offering. Your pastries could be breakfast items, dessert items, or perfect for any time of day. You just can’t go wrong with pastries for a cafe business. If you can have a part of your kitchen be viewable for customers, so they can see the making of the pastries, it’ll be an extra special experience. 

11. Brunch Menus

A good brunch menu is ideal for any cafe specializing in brunch offerings. The rise of brunch as a popular meal over recent years has made this an even more important part of menus for cafes. From mimosas to eggs Benedict, perfecting your brunch menu is key.

10. To-Go Specialty Items

To–go specialty items fill a specific niche in the world of cafes. The COVID-19 pandemic ramped up the love of to-go orders from peoples’ favorite restaurants. You can play into that by having a specific to-go menu section with items that are equally delicious when they’ve traveled home.

9. Desserts

A dessert menu is a classic for any type of restaurant, bar, brunch cafe, or any type of cafe. Having a mix of sweet and savory dessert options will make your dessert menu a must-taste for anyone enjoying time at your cafe. 

8. Soups and Salads

Soups and salads are another classic no matter the place or theme of your cafe business. A mix of soups and salads that mix well together and with other items across your menu is the best plan. You should have at least four options for each.

7. Appetizers

Having a strong list of appetizers on menus for cafes brings people in the door for a quick bite or for the prelude of a longer meal. Your appetizers should include a mix of classic appetizers and specialty items specific to your type of cafe.

6. Domestic and Imported Beer

Domestic and imported beers come into play with the alcoholic beverages section of your cafe menu. For your beer selections, a mix of domestic and imported options will keep all your beer-loving customers happy. A good mix will also be helpful if there is ever any issue with the supply chain.

5. Specialty Cocktails

Specialty cocktails also join the party of your mixed drinks and 21 and over beverages. Having a mix of cocktail ingredients and classic cocktails available gives your cafe a punchy edge. Some cafe-specific cocktails, named after personal touches in your cafe, are a great way to make this part of your menu unique.

4. Coffee and Tea

Your coffee and tea lists for menus for cafes need to be immaculate. There are going to be customers who come in specifically to enjoy breakfast and brunch. Having excellent sources for your coffee and tea, and serving them up in aesthetically pleasing ways will exceed the expectations of your morning and early afternoon customers.

3. Wine Lists

Having great wine lists is a must for any bar or restaurant type of business. Your wine lists should complement your menu items. You can also lean into seasonal wine options, with summer white wine treats and red wine surprises in the colder months.

2. Entrees 

The best entrees can make or break a restaurant or cafe business. Put care into your entrees, and make them pairable with other options on your menu. Your customers will come in for the drinks and appetizers and keep coming back for the entrees. 

1. Signature Dishes

Signature dishes mean something different to every cafe. Whatever you’re most passionate about, make it a signature dish. If you have something with a unique ingredient, it belongs on this part of your menu. 

Cafe Menus: What Cafe Treats Will You Serve Up? 

When it comes to designing and creating menus for cafes, there’s plenty of work to do. It also ties into your cafe marketing strategy.

"Key Takeaway: Learning about menus for cafes is a delightful part of learning how to open a cafe, for all types of cafes."

Marketing Strategy for Cafe Businesses: 9 Marketing Tips

Learning about marketing strategy for cafe businesses will give you a business edge and expand on your work for all other aspects of opening your cafe. These nine marketing tips will help you define the space your cafe will fill in your community.

Cafe Marketing Strategy

These three upcoming cafe marketing strategies detail the areas of your cafe business that will be emphasized in your marketing plan. These categories mix and match together to create your marketing campaigns. You can pick and choose which ones you act on at a particular time. Overall, however, all three are vital for a successful cafe marketing strategy.

3. Marketing Your Meals

Marketing your meals, including foods and beverages, is one critical third of the trifecta of marketing strategy for cafe businesses. Your dishes and drinks are the key reason customers are going to come back time and again. Make use of them in your marketing to draw people in.

2. Location Marketing

Location marketing will help you build a rapport with your community and find your niche. Cafes are typically a type of restaurant that gets drawn into the local fold and relies on local credibility to find success. Marketing for your location, appealing to neighborhoods, and leaning into the culture, will help boost your business. 

1. Brand Marketing

Brand marketing connects to location marketing and marketing for your meals. Brand marketing is all about showcasing what makes your cafe unique. Maybe it’s some specialty signature dishes. Perhaps it’s the history of you as a cafe owner and the reason you got into the business. Whatever it is, tie it into your marketing efforts. 

Local Cafe Marketing

Local cafe marketing is a unique subset of the overall marketing you’ll be doing for your cafe business. Local cafe marketing techniques, including these three, will help you build your business locally to get established. They focus on building your community with customers and other small businesses alike. Those two areas of growth will help your business become a local.

3. Customer Rewards Program

A customer rewards program is an efficient way to build up your customer base and create a local following. Your rewards program could give people a free meal voucher, or alert them ahead of time about special events. 

2. Host Special Events

Speaking of special events, hosting special events is a great way to invite the community into your restaurant for a unique occasion. You can throw themed events or happy hours. Whatever it is, get the word out and get people excited.

1. Work with Other Business Owners

Working with other small business owners in the area will help you network within the business community. This will give your business a place in the local scene beyond the community of customers you build. 

Cafe Marketing for Business Growth

All marketing should lead to success in business, but some marketing plans do lead to growth more efficiently than others. These three solutions of marketing strategy for cafe businesses and growth are designed to move businesses onward and upward. They focus on things that can propel your business with the use of what’s already working and what can be improved.

3. Promote Your Best Dishes

Promoting your best dishes is one of the best ways to grow your business through your culinary expertise. Your best dishes are going to be some of your greatest drivers of profits. The more people know about them, the more your business will benefit.

2. Ask for and Act on Customer Reviews

Your customers will be one of the greatest indicators of how your cafe is doing. To make use of the well of customer experience, ask your customers for reviews. This can be done in an email form, or with a review card they can briefly fill out at the cafe. 

1. Keep Up with Competitor Analysis

Keeping up with competitor analysis will keep you apprised of any changes your competitors make to their business plans. If you see a shift, check it out, and look into revamping your cafe business to keep up with the times.

Cafe Marketing Strategies: Find Your Market 

Learning about marketing strategy for cafe businesses will get you ready to open your cafe doors and master your customer service and business growth plans. It goes hand-in-hand with learning about cafe rules and regulations.

Cafe Regulations: 12 Regulations You Need to Learn About

Learning about cafe regulations is a critical part of learning how to open a cafe. These 12 types of cafe regulations cover your cafe plans when it comes to every facet of your business. 

12. Resale Permits

Resale permits are a larger part of the permitting you need to sell food and drinks. They give you the legal right to resell items you’ve bought from wholesale suppliers. 

11. Live Entertainment Licensing

Living entertainment licensing will come into play if you decide to have live music or other entertainment events at your cafe. You need the licensing in place to be able to host those events. 

10. Alcohol Sales

Alcohol sales are a major part of getting your licensing squared away. Getting a liquor license can take time and money, so if you’re selling alcoholic beverages, get started on the process right away.

9. Business Licensing

General business licensing comes into play for every business. A business license, as a basic license, gives you permission to operate as a business. It should be one of the first licenses you get. 

8. Food Permits

Food permits are another must-have for a cafe business. A food permit gives you permission to sell food on the premises. It also ensures you’re following health standards for food preparation.

7. Seller’s Permits

Seller’s permits go hand-in-hand with resale permits, but with a broader scope. A seller’s permit gives you the general authority to be selling from your legal business premises.

6. Business Insurance

Business insurance is something to get after you’ve gotten set up as a licensed business. This insurance will help protect you and your employees. It will also cover your cafe against any litigation that could be brought against you.

5. Food Handler Permits for Employees

Food handler permits for your employees are an absolute must. You’ll need general food licensing for the cafe. On top of that, everyone who handles food in your cafe will need a food handler’s permit. 

4. Health and Safety Regulations

Health and safety regulations for cafe businesses cover your food preparation, but they also extend to cleanliness standards around the cafe. From the kitchen areas to the tables and guest-facing spaces, health and safety are kept in check.

3. Location-Based Environmental Regulations

Location-based environmental regulations may or may not exist for you and your cafe. In many countries, states, and smaller localities, there are regulations around materials you can use and standards to maintain.

2. Trademark Applications

Trademark applications are a unique licensing need. When it comes to designing the brand of your cafe, the more unique and creative, the better. When you have a logo and other brand resources set up, a trademark will make your cafe truly one of a kind.

1. Certificate of Occupancy

A certificate of occupancy goes together with the other general licensing you need to own and operate a cafe business. This certificate is a statement that your business is legally squared away to operate from the location you have set up.

Cafe Rules and Regulations: Are You Up To Code?

Sorting out the rules and regulations of your cafe business gets you another, quite tangible step closer to opening the doors for business. As you’re preparing for those opening days, diving into cafe management will give you even more solutions to the daily work of a cafe business.

"Key Takeaway: Cafe regulations extend to everything from general business licensing to alcohol licensing to food permits to health and safety requirements. Every part of your cafe business needs to be checked off the list of regulatory requirements."

Cafe Management: 10 Responsibilities of Cafe Managers

Cafe management, like restaurant management or bar management , is a multi-faceted line of work. It involves working with cafe regulations, understanding the cost to open a cafe, working with the cafe business plan, and spending time on cafe inventory management. 

10. Support Staff In Customer Service

Supporting cafe staff in all aspects of customer service is one of the key daily responsibilities of cafe managers. You’re there to help when extra hands are needed, and step in for conflict resolution should the situation occur. 

9. Maintain Revenue Records

Maintaining revenue records is easiest when done on a daily basis. It’s a clear-cut job for a cafe manager because managers have the most regular exposure to the revenue numbers. 

8. Update the Menu

Updating the menu can include everything from reprinting menus as needed to adding new food items to updating the wine lists . It’s not a daily job, but it does come up from time to time.

7. Manage Daily Inventory Needs

Managing daily inventory needs helps to keep your inventory running smoothly each day of the week. Staying on top of inventory and keeping all the necessary inventory in stock is a key manager duty. It makes your job easier and does the same for all employees. It also streamlines the cafe experience for your customers. 

6. Vendor Coordination

Vendor coordination for cafe management comes into play with order management and inventory management. As orders come in, you’ll have the task of checking them in. If any issues arise, a focus on vendor coordination will make your job easier. You can work on vendor coordination by being timely with ordering products and being respectful of the time when your orders are delivered.

5. Regular Order Management

Regular order management plays into vendor coordination and inventory management. At any given time, a cafe should have enough inventory to last a week. Keeping up with regular order management will help you achieve that goal and avoid worrying about your reorder point. 

4. Customer Complaint Resolution

Customer complaint resolution isn’t always a huge part of the job of a cafe manager, but when it comes up, it’s extremely important. This responsibility ties into taking care of your employees and backing them up in customer service. When there is a customer complaint or a customer causing trouble, it’s your responsibility to support your employee and resolve the conflict. 

3. Health and Safety Standards Management

Health and safety standards management is a task for the cafe team at large, but the bulk of organizing these standards rests with the cafe manager. There are rules and regulations you need to follow in a cafe business. As the manager, it’s your job to make sure those rules are being kept up with and to correct any issues before they become a problem.

2. Hiring Employees

Hiring employees is the start of your managerial responsibilities with the cafe staff. You and the cafe owner will work together on finding the right staff, but ultimately, the hiring tasks will be on your to-do list. 

1. Managing Scheduling

Managing scheduling is one of the most specific and important ways you can support your staff. This involves creating the schedule and working with employees as they request time off and specific days off. It’s weekly work that will give you a consistent opportunity to look after your staff.

Cafe Management: The Makings of a Well-Managed Cafe 

Cafe management comes with a lot of responsibility and hard work. It’s fulfilling work, fueled by customer experience and pride in your team and the work you accomplish. It’s one of many parts of working at a cafe.

Working at a Cafe: 13 Key Job Roles of a Cafe Business

Working at a cafe brings you into a delightful, bustling business. Whether you’re the Sous chef , a restaurant cashier or host, or a restaurant busser , there’s so much opportunity in all types of cafes. You could work in cafe and restaurant management, or as a cafe accountant to deal with operating expenses . The options are (nearly) endless with these 13 key cafe jobs.

13. Cafe Owner

The cafe owner is the start of the list, from a hierarchical standpoint, of the people who work at a cafe. In some cases, the owner will also be the manager, a supervisor, and even fill in the accountant role.

12. Cafe Manager

The cafe manager is responsible for the daily cafe management operations. This includes everything from employee management and support to inventory ordering and stock maintenance. 

11. Cafe Accountant

The cafe accountant is a very specific role within the jobs that fall within a cafe business. The accountant is responsible for keeping track of revenue and expenses, to keep the business on budget and in profit. 

10. Servers

Servers are one of the most important links in the chain of working at a cafe. Servers are responsible for taking orders, delivering food, and ensuring customer satisfaction. 

The chef is part of the team that makes up the kitchen staff in a cafe business. The chef can be a Sous chef or other type of chef. The key ingredient is that they manage the kitchen and oversee the dishes.

8. Kitchen Prep Workers

The kitchen prep workers in a cafe business report to the chef, and are another key component in keeping the cafe running smoothly. Having the best kitchen prep workers means your cafe provides great meals on a timely basis.

If your cafe has coffee options, a barista may be in order. The barista's job revolves solely around making coffee orders and keeping the coffee equipment in good working order.

6. Mixologist or Bartender

The mixologist or bartender is a necessary part of your cafe business when it comes to serving up the best drinks. Your bartender or mixologist will be in charge of drink mixing and serving at the bar top.

5. Dishwashers

One part of the work of the kitchen comes from the prep workers. The other part comes in the post-meal work with the dishwashers. Hiring a few dishwashers to keep your kitchen stocked with clean dishes will ease your kitchen process.

Bussers are the flip side of the server coin. Bussers are responsible for clearing away dishes and cleaning and sanitizing the tables in between guests. 

3. Barbacks

Barbacks work with the mixologist or bartender to keep the bar space efficient. They clean, serve drinks, and provide support to the bartender or mixologist as needed.

2. Sommeliers and Cicerones

Sommeliers and cicerones–certified beer specialists–work in a similar range to mixologists and bartenders. The difference is the level of specification in the job of a sommelier or cicerone. Their specialties are their focus in all their customer service roles.

The host of a cafe business is a tidy role, but it’s oh-so-important to the overall success of the business. The host welcomes in customers as they arrive, and they set the tone for the entire cafe. 

Hiring for Cafe Work

When it comes to hiring for cafe work, there are plenty of skills you should interview for. In your restaurant interview questions , ask about customer service experience, kitchen and food handling skills, and teamwork experience. When you take care in the interview process, you’ll fill your employee roster with all the best people.

Cafe Work: Cafes Can Be the Work For You 

Working at a cafe is busy, fulfilling, exciting work. It’s an active space with a lot going on every day. For cafe owners and workers alike, the day-to-day operations can be hectic, but oh-so worth it. As a cafe owner, you can mix up that daily work and experience by exploring unique cafe ideas.

"Key Takeaway: Working as part of a team at a cafe business built around a passion for customer service and great food is, by nature, a joyful experience. With the right team, cafe work can be one of the best jobs out there."

Unique Cafe Ideas: 9 Fun Ideas to Make Your Cafe Pop

Learning how to open a cafe gives you the opportunity to dive into unique cafe ideas. From the customers to people working at a cafe, leaning into a unique idea for the cafe gives time spent there a more delightful experience. For all types of cafes, these nine unique cafe ideas can add to the business model and food service of the cafe. 

Cafe Theme Ideas

Giving your cafe business a theme can help you effortlessly make use of unique cafe ideas. There is so much variety in the theme options you can choose from, so you can truly make this idea your own. These three cafe theme ideas are all excellent, you can’t go wrong with any of them, whether you’re hosting brunch or setting up for dinners. 

3. Indoor Garden Theme

An indoor garden theme is a great way to brighten up your cafe and bring life into the space. You can have a mix of hanging plants, shelved plants along the walls, and potted plants. If you have an outdoor space you can even have a classic garden area. 

2. Book Cafes

Book cafes are a theme that has been rising in popularity, and there is still so much room for this wonderful theme to grow. One of the best options for starting a book cafe is to create a space where customers can sit and dine, and also browse bookshelves. 

1. Parisian Theme

A Parisian theme is excellent for so many cafes. The classical, relaxed setting of a cafe immediately invites themes from Paris and French living in general. You can lean into the Parisian theme by looking at famous Paris cafes and emulating their style and menu options.

Cafe Food Presentation Ideas

Among the unique cafe ideas that relate to the direct customer experience are unique cafe food presentation ideas. Having delicious food should be your main goal from day one. To emphasize that goal, cafe food presentation gives you a way to spruce up each dish. These three ideas will give you a feel for how you can change up food presentation. 

3. Cafe-Themed Dishware

Cafe-themed dishware is a subtle way of branding your cafe and sprucing up every dish. Something as simple as a logo stamped in a brand color on each plate, bowl, and cup will give you a uniformed food presentation. 

2. Semi-Table Prepared Dishes

When you think about semi-table prepared dishes, the image that comes to mind is likely something along the lines of a hibachi grill type of place. While your cafe might make use of those tools, this tip can apply to anything that involves the meal presentation taking part at the table. 

1. Edible Garnishes

Edible garnishes are one of the most beautiful and tasteful ways to incorporate food presentation into the ideas of your cafe business. From edible flowers to drinks with a skewer of treats involved, edible garnishes are a win with every customer.

Cafe Holiday Ideas

Cafe holiday ideas are a unique subset of cafe themes in some cases, and a completely unique type of unique cafe idea in others. The mix of ideas among these three cafe holiday ideas showcase the range of ways you can celebrate different holidays in your cafe, to wow your customers any day of the year.

3. Unconventional National Holiday Celebrations

There are so many national holidays we celebrate these days. They include things like National Cocktail Day , National Pinot Grigio Day , International Bagpipe Day , and National Wine Day . You can celebrate all these holidays and more for a unique theme throughout the year.

2. Holiday Promotions

Holiday promotions aren’t just about the unique national holidays. You can lean into promotions for the typical holidays throughout the year. Holidays spent out and about, like Valentine’s Day or Halloween, are particularly well suited to these promotions.

1. Special Birthday Treats

Special birthday treats are something you would benefit from having on hand for any birthdays that come into your cafe. From unique menu items to a special delivery method, giving customers a special way to celebrate birthdays will add something extra to your cafe.

Finding Unique Plans for Cafes: Showcase What Makes Your Cafe One-of-a-Kind

These nine unique cafe ideas will give you the place to start to find the niche for your cafe. You can use these ideas as they are, or use them as a jumping-off point. Either way, finding the unique parts of your cafe plan will make your business successful, and bring joy to your work. They can also help you grow into a cafe franchise business.

Cafe Franchise Business Plan: Growing Your Cafe Business

The process to open a cafe, write a cafe business plan, and prepare for all the daily operations to keep a cafe running smoothly is a long, ultimately satisfying project. Once you’ve opened your cafe and gotten it running with marketing strategies for cafes and unique cafe ideas, however, what’s next? What are your potential growth opportunities ?

If you’re looking for the next step, a cafe franchise business plan is a great option. These eight steps will help you get there.

8. Analyze Your Franchise Potential

The first step of getting your cafe ready for franchising is checking out your franchise potential. Do your finances make this a feasible choice? Are you ready and organized with the paperwork? Has your cafe brought in the right numbers to expand to new locations? These are the questions you need to answer. 

7. Create a Franchise Budget

Creating a franchise budget at the beginning of creating your cafe franchise business plan will give you a head start. Check out the costs for all your franchise license needs and marketing requirements to make sure you’re ready.

6. Prepare Your Franchise Disclosure Document (FDD)

Your franchise disclosure document or FDD is the selling sheet you present to potential franchise owners. It’s the place for an extensive explanation of how the franchisor and franchisee relationship will work, and what franchisees can expect. 

5. Prepare Your Franchise Operations Manual

Preparing your franchise operations manual goes hand-in-hand with preparing your franchise disclosure document. The operations manual is your place to explain how every part of the cafe works, so that franchisees have a full game plan. 

4. Review Your Trademarks and Intellectual Property

Part of franchising your cafe means giving other folks permission to use your brand and all related intellectual property. To prepare for that, make sure you have your logos and any specific intellectual property trademarked, to avoid issues down the road.

3. Establish a Franchise Company In the Eyes of the Law

While you’re already set up with a general business license, you need another one for a franchise business. BinWise isn’t a legal advisor and we can’t tell you exactly what you’ll need for your location. You will, however, need a new level of business licensing to be set as a franchise. Check out your local government to find what you need. 

2. Issue and Register Your FDD 

Once you have all your papers in order and you’re legally set up to be a franchise cafe, it’s time to issue and register your FDD. A lawyer will come in handy for getting your documents where they need to go. From there, follow your local guidelines to get your FDD where it needs to go.

1. Develop Your Franchise Sales Strategy 

Developing your franchise sales strategy is something you’ll likely think about while you work through every process on this list. How will you get the word out to potential franchisees? From networking in the right spaces to meeting people organically, selling your franchise pitch is the peak of the work you’ll do to prepare your cafe for franchising.

Franchising Your Cafe Business: Grow Your Cafe to Franchises and Beyond

A cafe franchise business plan can help you grow your cafe beyond the confines of your first location, or even your first few locations. Starting a cafe often starts with a small space and big dreams that blend together into a beautiful space. When it’s time to grow, you can take those dreams and plans and make them into something more with a franchise.  

"Key Takeaway: Learning how to franchise a cafe business will build on your cafe business knowledge and give you more to work with.

The Guide to Cafe Businesses: Realize Your Cafe Business Dreams

This BinWise guide to cafe businesses is here for you whenever you need a refresher on running a cafe business. From the first few days of planning and opening to the ongoing operations of your business, come on back any time to keep your cafe plans moving forward.

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Cafe Business Plan Template

  • Written by Dave Lavinsky

Cafe Business Plan Template

Table of Contents

Cafe business plan.

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their cafes. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a cafe business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Cafe Business Plan?

A business plan provides a snapshot of your cafe as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Cafe Business Plan

If you’re looking to start a cafe or grow your existing cafe you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cafe in order to improve your chances of success. Your cafe business plan is a living document that should be updated annually as your cafe grows and changes.

Sources of Funding for Cafes

With regards to funding, the main sources of funding for a cafe 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.

The second most common form of funding for a cafe is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your cafe business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of cafe business you are operating and the status; for example, are you a startup, do you have a cafe that you would like to grow, or are you operating a chain of cafes.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the cafe industry. Discuss the type of cafe you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of cafe you are operating.

For example, you might operate one of the following types:

  • Take-Out Cafe: this type of cafe doesn’t have seating (or has limited seating) and is mostly visited by customers looking to grab a coffee and/or bakery item on their way to work or elsewhere.
  • Restaurant Cafe: this type of cafe is most similar to a restaurant and offers a full, sit-down menu in a nice atmosphere with a full wait staff.
  • Casual cafe: also known as a corporate, student or co-working cafe, this type of cafe typically offers food and drinks from a counter with no waiters or waitresses. Patrons purchase items and consume them in the cafe, often while performing work on their laptops or conversing with friends or colleagues.
  • Coffee Shop: This is a popular type of cafe. Coffee shops usually offer a selection of tea, coffee, pastries and other drinks

  In addition to explaining the type of cafe you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business? What is your business concept? What is your unique selling proposition?
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
  • Your business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the cafe business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the cafe industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards cafes with ultra high speed internet connections, it would be helpful to ensure your location could offer such a service.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cafe business plan:

  • How big is the cafe business (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key local suppliers in your market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your cafe. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The market analysis section of your cafe business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: local office workers, college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the target audience you choose will have a great impact on the type of cafe you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most cafes primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cafes (and restaurants and/or bakeries depending on the type of cafe you operate).

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes restaurants, supermarkets and customers making coffee and bakery items themselves at home. You need to mention such competition to show you understand that not everyone in your target market will visit a cafe each day.

With regards to direct competition, you want to detail the other cafes or coffee shops with which you compete. Most likely, your direct competitors will be cafes located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What products do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

  With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide superior cafe products?
  • Will you provide cafe products that your competitors don’t offer?
  • Will you make it easier or faster for customers to acquire your products?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cafe business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of cafe that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, will you offer pastries, soups, items such as café latte, cappuccino, espresso or macchiato?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your cafe. Document your location and mention how the location will impact your success. For example, is your cafe located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your cafe marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Making your cafe’s front store extra appealing to attract passing customers
  • Distributing samples outside the cafe
  • Advertising in local papers and magazines
  • Reaching out to local bloggers and websites
  • Partnerships with local organizations (e.g., gym members get a free cup of cafe with each pastry they purchase)
  • Local radio advertising
  • Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cafe such as serving customers, procuring supplies, keeping the cafe clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 10,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.  

Management Team

To demonstrate your cafe’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the cafe, coffee shop and/or restaurant business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in cafes and/or successfully running retail and small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your cafe, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 catering contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cafe:

  • Location build-out including design fees, construction, etc.
  • Cost of fixtures like chairs, tables, signage and cafe decor
  • Cost of equipment like grinders, espresso machines, blenders, refrigerators
  • Cost of ingredients and maintaining an adequate amount of supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Summary Putting together a business plan for your cafe is a worthwhile endeavor. If you follow the template above, you will be able to prepare a winning cafe business plan or a coffee shop business plan. You will really understand cafe business planning, business operations, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful cafe.

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Starting a cafe is no small endeavor, but anyone who appreciates the Parisian way of life can tell you how integral a local, welcoming cafe is to any community. But when you’re starting a business, there are several things to consider and processes to complete to make it official.

Wondering how to open a cafe in your neighborhood? We’ve got you covered. In this guide, we’ll provide the tools to help you learn how to open a cafe and build a successful business.

how to make a cafe business plan

Know your competition

There are over one million restaurants and over 30,000 coffee shops in the United States. New cafe owners can expect some steep competition. Of course, these dining options are more concentrated in some areas than others. Your neighborhood may be in desperate need of a great new cafe. That’s why your first step in starting a cafe should be to get to know your competition.

Maybe there is an obvious need you can fill, or perhaps you can take a look at what isn’t working for other local cafes and create a superior option for consumers. Look back at your town’s business records. Which cafes have closed in recent years? Do you know why they closed? Scour review sites like Yelp to see why your competition is being praised and criticized. But most importantly, make sure your business can contribute to local life before you invest too much time or money toward starting a cafe.

Create a business plan

No matter what type of business you want to start, creating a business plan is key to launching any successful endeavor. Your business plan is made up of eight sections, but you can alter your business plan to suit the specific needs of your cafe. The goal is to create a plan that will keep you on track, organize your research and prepare to prove your value to potential investors. Here are some of the topics you'll want to hit.

Executive summary

The executive summary gives you a chance to summarize your company’s value proposition. While this section leads your business plan, you will likely write it last as a summary of the subsequent sections of your business plan. You’ll use this section to explain what your business does, as well as what your current state of affairs looks like. You will also give a financial breakdown for where you see the business in three to five years. And of course, you can't forget to include what factors will drive your business's success.

Market analysis

This section builds on our first step and offers a more in-depth and higher-level analysis of your industry , market and any potential competitors. Utilize this section as an opportunity to prove your knowledge of the market and what unique void your cafe will fill.

The number one reason businesses fail is a lack of market need for their products or services, so make sure there’s demand for your cafe before you continue with the next steps.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Marketing and sales plan

If you want your business to succeed, you’re going to need a little more than word of mouth to reach new customers — at least when you’re first starting out. Once you’re more established, word-of-mouth marketing can be an effective way to gain new customers.

Your marketing strategy and sales plan should have a two-part approach. Positioning and promotion. How are you going to position your products to customers? What makes your goods or services special or valuable? Now that you know what your sell is, come up with a promotional plan that will get your brand in front of the eyes and ears of customers.

Financial plan and projections

When you share your financial plan and projections, you’ll give a glimpse at the current state of your business finances. You’ll also project where you see your finances going in the future based on your expected sales, expenses and more. Existing businesses that are creating, or updating, a business plan can use data from their past financial performance. They may want to include information such as income history, cash flow and balance sheets. If you’re just starting your cafe, you’ll likely have to use research and estimations to complete this section.

Learn the rules

Like any food services business , operating a cafe comes with an added degree of responsibility to your consumers, which is why the government will hold you accountable for cleanliness and safety. Before you open a cafe, learn more about the food services regulations in your state . Each state has different rules in place, so make sure you’re familiar with your state’s and devise a plan to comply. If possible, talk to other small business owners in the food services industry to be sure you have all the information you need.

Get the proper licenses, permits and insurance

You’re well on your way to starting a cafe, but before you can continue you’ll need to make sure you’re legally allowed to operate your business. The legal requirements of registering and licensing your business will vary based on your industry and location. However, you will likely need multiple business licenses at the state, federal, and local levels when starting a cafe.

Again, because you’ll be handling and serving food, you’ll be required to obtain more licenses and permits than a non-food services business, including food and health code licenses, health department permits, and more. If you plan on serving alcohol in your cafe, you’ll also need a liquor license. Additional licenses or permits may apply, including building, zoning or land-use permits; signage permits; and more.

If you plan on hiring employees to work in your cafe, you'll also need to obtain an employer identification number, or EIN. This will be required for tax purposes, among other things, but even if you don’t plan on hiring employees, there are several benefits of getting an EIN.

Additionally, you will need to obtain some type of business insurance for your cafe. If you have employees, you’ll be required to carry workers' compensation, unemployment, and potentially disability insurance. General liability and commercial property insurance are also common types of coverage. However, for the food services industry specifically, you’ll want to look into even more insurance policies, such as liquor and auto liability, fire, and food contamination insurance.

If you haven’t consulted with a business lawyer yet, now is a good time to do so to ensure you’re starting a cafe that is compliant with the law and protected from any potential issues down the road.

Hire the right people

A good cafe can make you feel right at home. And no one wants to feel uncomfortable in their own home. Thus, it’s important to hire cooks, servers, cashiers and management that will commit to maintaining your brand’s level of quality so that both you and your customers feel comfortable.

Not only do you want to hire the best employees, but you also want to create a productive and safe work environment so you can retain your talent. And if you’re new to hiring, avoiding these mistakes can help the process go more smoothly.

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Find small business funding

At some point along this journey, you likely wondered, "How much does it cost to open a cafe?" The costs will depend on your cafe’s location, renovation, marketing, employment and supply needs. There’s a very good chance you’ll need to find a business loan for your cafe to help with startup costs. There is no one-size-fits-all approach to business funding, so take your time when you consider what path you want to take. You may find the following funding options are a good fit for your business.

Business loans: While some business loans , such as SBA loans , may be out of reach for a brand-new business, if your cafe has been operating and profitable for a few years, these could be a great solution to your cafe’s funding needs.

Business lines of credit : With more flexibility than a standard business loan, a business line of credit gives you a set amount of money from which you can draw to cover your business expenses.

Business credit cards: A business credit card is a good option for startup business owners whose lack of credit history and time in business may put more traditional funding options out of reach. In fact, a 0% intro APR credit card can be treated almost like an interest-free loan. Just make sure you have a plan to pay off your balance before the introductory offer ends.

Equipment financing: Starting a cafe comes with significant upfront costs due to the equipment required, including kitchen appliances, furniture and more. With equipment financing , a lender fronts you the money specifically for the purchase of equipment, which then serves as collateral on the loan, making this type of financing easier to qualify for than other options.

Startup funding: There are some types of startup financing that cater toward new businesses, such as SBA microloans and some business grant . You may also turn to crowdfunding to get your cafe business off the ground.

Find and manage supplies

Whether you’re all about the farm-to-table movement or will be offering a very specific item, you need to get your suppliers settled before opening your cafe. How you source your ingredients, as well as less thrilling supplies like to-go containers and utensils, is an integral part of running a cafe. You’ll want to sit down and calculate how much inventory to carry, as well as how much it will cost and where you’ll source it from.

Don’t forget to look up reviews of your suppliers or ask for customer testimonials. You need to work with suppliers you can rely on. Feel free to make the rounds in your local entrepreneur network, as well. Recommendations from business owners you trust are a great place to start.

Next, you’ll have to create an inventory system that is easy to follow and reliable. Any cafe worth its salt knows you can’t risk accidentally running out of coffee filters on a busy Sunday morning. A good place to start may be with an inventory management app so you can keep track of what’s going in and out of your cafe, and when.

Choose a POS system

You’re likely dreaming of the day you’ll make your first dollar. While you may want to hang that dollar up on the wall, you’re also going to want to have systems in place that ensure you receive payment properly for every sale you make. A point-of-sale system will be essential to process these payments. While there are various POS systems to choose from, you’ll likely want to opt for one geared specifically toward business in the food services industry. Finding a good POS system for your cafe is a business necessity and will help all of your transactions run smoothly.

Build your dream cafe

When you first started thinking about how to open a cafe, this is likely what you imagined. Now that the paperwork and less creative work has been established, it’s time to do the work you love: Find your perfect location, hunt down the decor that gives you all the good vibes, build the perfect menu, play around with ideas for how to make your cafe stand out.

Visit other cafes and take notes on what you like and dislike. Is free Wi-Fi a must? How about comfy chairs or pretty plants? Do you like a menu with a lot of versatile choices or a more specialized one? Stay true to your vision and beliefs and you'll create a cafe that customers will flock to.

The bottom line

There will be countless long days spent making your cafe dreams a reality. Hopefully, this guide on how to start a cafe business will give you the jumping-off point you need. With these steps accomplished, you’ll be in a great position to start welcoming customers into your new cafe. Where you take it from there is up to you!

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to write a coffee shop business plan

  • Nirit Braun
  • Oct 30, 2023
  • 12 min read

How to create a coffee shop business plan

A coffee shop business plan is a detailed and strategic document outlining the essential aspects of starting and operating a coffee-focused business. It encompasses a comprehensive analysis of the business's goals, target audience, competitive landscape, marketing strategies, financial projections, operational procedures and more. This plan acts as a roadmap that guides entrepreneurs through the various stages of establishing and running their coffee shop, providing clear direction and a solid foundation for success.

When starting a business, especially in the competitive and dynamic realm of the coffee industry, creating a comprehensive and clear business plan is of paramount importance.

Ready to get your business brewing? Take Wix’s website builder for a whirl.

Top benefits of creating a coffee shop business plan

A well-crafted business plan helps entrepreneurs articulate their business goals, whether it's about offering unique coffee blends, creating a cozy ambiance or supporting sustainable sourcing practices. At the same time, a business plan requires entrepreneurs to identify and understand their target audience. This insight helps tailor marketing strategies, menu offerings and the overall customer experience to meet the specific preferences and needs of the intended customers.

Here's an overview of some key advantages to creating a coffee shop business plan:

Attracting investors and funding: A well-structured business plan acts as a persuasive tool when seeking investors or raising money for your business . It showcases your thorough understanding of the coffee industry, market trends and your strategies for success. This level of preparedness increases your credibility and instills confidence in potential investors, making them more likely to support your coffee shop venture.

Clear resource requirements: Writing a business plan prompts you to identify the specific resources, supplies and staff necessary to launch and operate your coffee shop. This includes everything from coffee beans and brewing equipment to furniture and interior decor.

Strategic financial planning: A comprehensive business plan outlines your financial projections, startup costs, operating expenses and revenue forecasts. This level of financial planning helps you determine how much funding you need to start a business . It also guides you in setting prices, managing cash flow and assessing profitability.

Market understanding and differentiation: Through market research and analysis, a business plan allows you to understand your target audience's preferences, behaviors and expectations. This knowledge helps you tailor your coffee shop's offerings, ambiance and marketing strategies to effectively attract and retain customers.

Risk mitigation: The process of creating a business plan prompts you to identify potential risks and challenges that your coffee shop might face. By acknowledging and addressing these risks early on, you can develop contingency plans and strategies to mitigate their impact.

Operational efficiency: A business plan outlines the operational processes required to run your coffee shop smoothly. It includes staffing plans, inventory management strategies and quality control measures. By establishing efficient procedures from the outset, you can minimize wastage, optimize resource allocation and ensure consistent customer satisfaction.

Goal setting and tracking: Your business plan serves as a benchmark against which you can measure your coffee shop's performance over time. By setting clear goals and key performance indicators (KPIs), you can track your progress and make necessary adjustments to stay on course toward achieving your objectives.

How to create a coffee shop business plan in 6 steps

Now we’ll walk through the six essential steps for crafting a coffee shop business plan tailored to your company's unique needs.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

Your executive summary is a concise and compelling overview of your coffee shop business plan. It encapsulates the key elements of your plan and provides a snapshot of your business concept, strategies and financial projections. While appearing at the start of the business plan, it's often written last, as it draws from the content of the entire document.

A clear executive summary for a coffee shop business should include:

The essence of your coffee shop: What makes it unique? What kind of experience will customers have when visiting your establishment?

Market potential and your target audience: Explain why your coffee shop is well-positioned to capture this opportunity.

Competitor landscape: Identify what sets your coffee shop apart from the competition. This could be your specialty coffee blends, unique ambiance, sustainable practices or exceptional customer service.

Example executive summary for a coffee shop: "Bean Haven Coffee is a meticulously crafted coffee shop that aims to provide not just beverages, but an immersive coffee experience. We pride ourselves on our curated selection of ethically sourced beans, offering customers the finest hand-crafted brews in a cozy, rustic ambiance. Our competitive edge lies in our commitment to sustainability, from our bean-sourcing practices to our eco-friendly packaging. With a strong emphasis on community engagement and partnerships with local artists, we are set to become a cultural hub that brings people together over a shared love for exceptional coffee. Through strategic marketing campaigns, leveraging social media and collaborating with nearby businesses, we aim to establish Bean Haven Coffee as the go-to destination for coffee enthusiasts and connoisseurs alike. Our projected financials indicate that we will reach profitability within the first 18 months of operation. We seek funding to cover initial startup costs and our business model is designed to achieve sustainable growth and profitability."

02. Company and domain names

Knowing how to name a business is crucial for a coffee shop venture and a key step before you register your business . A strong and memorable name can resonate with customers and differentiate your coffee shop from competitors. Use descriptive words that reflect your coffee shop's essence, whether it's about taste, ambiance or values.

Utilizing a business name generator like the one from Wix can provide inspiration and spark creativity. Play with different combinations of words and ideas until you find a name that feels right. Once you've settled on a name, check its availability for domain registration. A domain name that matches your company name is essential for an effective online presence.

When choosing a domain name consider the following best practices:

Ensure that the domain name reflects your coffee shop's identity and offerings

Choose a name that is easy to spell and remember

Opt for a timeless name that won't become outdated quickly

If possible, include relevant keywords in the domain to improve search engine visibility

Steer clear of names that are easily confused with competitors or other brands

03. Market analysis and research

With more than 38,000 coffee shops in the U.S. alone, there are plenty of competitors to analyze. Including a comprehensive market analysis in your business plan is essential for understanding the competitive landscape and formulating effective strategies. Research your local coffee market, identify existing competitors and analyze their strengths and weaknesses. Determine your target audience's preferences, behaviors and demographics to tailor your offerings and marketing campaigns accordingly.

A well-rounded market analysis can guide your business strategy, helping you position your coffee shop effectively, develop compelling value propositions and devise strategies to capture your desired market share.

04. Operations plan

The operations plan is a crucial section of your coffee shop business plan. It outlines the practical aspects of running your coffee shop. Use it to describe your chosen location and its significance for foot traffic, accessibility and target audience reach.

Then, take the opportunity to detail the interior design, layout and ambiance of your coffee shop to create a welcoming atmosphere. Next be sure to list the equipment needed for brewing, food preparation and service. Ensure it aligns with your menu and production capacity. Finally define the roles and responsibilities of your staff, from baristas to managers, and outline their qualifications and training needs.

05. Marketing and advertising strategies

The marketing and advertising portion of your business plan outlines your strategies for promoting your coffee shop and attracting customers. Depending on your target audience and brand positioning for this type of business , consider a mix of traditional and digital marketing methods. This means using social media platforms like Instagram, Facebook and Twitter to showcase your coffee creations, engage with customers and share your coffee shop's story. Collaborate with influencers, local organizations or other businesses to expand your reach and tap into new customer segments.

Additionally, you can choose to participate in community events, farmers' markets and collaborations with other local businesses to increase your visibility. Also consider implementing loyalty programs that reward repeat customers and incentivize them to visit regularly.

You’ll need to develop a suite of brand assets to use in your marketing as well, starting with a company logo. You can use a free logo maker to get a professional design in minutes.

Learn more: How to make a website

06. Financial plan

The cost to start a coffee shop business can range from $50,000 for a mobile operation to over $400,000 for a brick-and-mortar location with booth seating and a drive-thru. This hefty expense is just another reason why a financial plan is so important.

The financial plan is the backbone of your coffee shop business plan. It outlines your startup costs, operating expenses, revenue projections and funding strategy. Investors and lenders will closely scrutinize this section to assess the viability of your coffee shop venture, so remember to do the following:

Detail the initial investment required for equipment, interior design, licenses and permits

Estimate ongoing costs such as rent, utilities, supplies and salaries

Provide realistic revenue forecasts based on your expected capacity and customer traffic

Specify how you plan to secure funding

Highlight when you anticipate reaching profitability and generating positive cash flow

By meticulously planning your finances, you demonstrate a solid understanding of the financial aspects of your coffee shop business and showcase its potential for success.

steps to developing a business plan

Coffee shop business plan examples

Below we’ve put together business plan templates for two hypothetical coffee shop businesses, including all the sections discussed in our previous how-to steps.

Coffee shop business plan template 1: Coffee Haven Café

Coffee Haven Café is a charming coffee shop dedicated to delivering a premium coffee experience in a cozy and inviting setting. Our unique blends, ethically sourced beans and commitment to sustainability set us apart in a competitive market. By fostering community engagement and partnering with local artists, we aim to become a cultural hub that brings people together over exceptional coffee. Through strategic marketing efforts and a strong online presence, we project profitability within 18 months.

Company and domain name

Company name: Coffee Haven Café

Domain name: www.coffeehavencafe.com

Our marketing analysis revealed a growing demand for specialty coffee in our target location. We've identified key competitors and highlighted their strengths and weaknesses. Our target audience consists of young professionals and students who value quality and ambiance. By understanding these dynamics, we can tailor our offerings and marketing strategies effectively.

Location: Centrally located in a busy commercial area with high foot traffic

Premises: Rustic and inviting interior design that promotes relaxation and conversation

Equipment: High-quality espresso machines, grinders, brewing equipment and display cases for baked goods

Staffing: Experienced baristas, friendly waitstaff and a dedicated manager to oversee operations

Social media: Engage customers through Instagram, Facebook and X with enticing coffee shots and behind-the-scenes content

Local events: Participate in local festivals, art exhibitions and collaborate with nearby businesses for cross-promotions

Content marketing: Regular blog posts on coffee trends, brewing tips and spotlight features on local artists

Loyalty programs: Offer a loyalty card program with rewards for frequent visitors

Partnerships: Collaborate with nearby bookstores for reading sessions and local influencers for social media endorsements

Startup costs: $70,000 for equipment, furnishings, licenses and initial inventory

Operating expenses: Estimated monthly costs of $12,000 covering rent, utilities, supplies and staff salaries

Revenue projections: Projected revenue of $300,000 in the first year, growing to $450,000 in the second year

Funding strategy: Initial funding from personal savings and a small business loan from a local bank

Profitability timeline: Aim to achieve profitability within 18 months of operation

Coffee shop business plan template 2: Brew & Gather Coffee House

Brew & Gather Coffee House is a community-focused coffee shop aiming to create a warm and inclusive space for coffee enthusiasts. Our commitment to locally sourced ingredients and artisanal brewing techniques sets us apart. By fostering partnerships with neighboring businesses and hosting regular events, we aim to become a staple in the neighborhood. Our projected financials indicate profitability within the first two years.

Company name: Brew & Gather Coffee House

Domain name: www.brewandgathercoffee.com

Through extensive market research, we've identified an opportunity to serve a diverse community seeking an authentic and welcoming coffee experience. We've assessed competitors' offerings and identified an untapped niche. Understanding our target audience's preferences and values will guide our menu and marketing strategies.

Location: Situated near a local park, providing an oasis for relaxation and community gatherings

Premises: Modern yet cozy interior design with flexible seating arrangements to accommodate groups and individuals

Equipment: State-of-the-art espresso machines, pour-over stations and an open bakery display

Staffing: A blend of skilled baristas, friendly hosts and a community engagement coordinator

Social media: Utilize Instagram and TikTok to showcase brewing techniques, share customer stories and host virtual coffee-tasting sessions.

Local events: Host open mic nights, book clubs and workshops to engage the community.

Content marketing: Publish a monthly newsletter featuring coffee culture insights, staff spotlights and local partnerships.

Loyalty programs: Introduce a tiered membership program offering exclusive discounts and early access to events.

Partnerships: Collaborate with local farmers, artisans and musicians to create a truly immersive community experience.

Startup costs: $100,000 for leasehold improvements, equipment, permits and initial inventory

Operating expenses: Projected monthly expenses of $15,000, covering rent, utilities, wages and supplies

Revenue projections: Anticipate revenue of $350,000 in the first year, with a 15% increase in the second year

Funding strategy: Initial investment from personal savings and a crowdfunding campaign targeting the local community

Profitability timeline: Aim to reach profitability within the first two years of operation

How profitable is a coffee shop?

The profitability of a coffee shop can vary depending on a number of factors, including location, business model and marketing strategy. However, in general, coffee shops can be quite profitable.

According to a report by IBISWorld, the average profit margin for coffee shops is 8.33%. This means that for every $100 in revenue, coffee shops generate $8.33 in profit.

Some coffee shops are even more profitable. For example, coffee shops located in high-traffic areas, such as airports and office buildings, can generate profit margins of up to 15%. And coffee shops that sell specialty coffee drinks and food items can also generate higher profit margins.

Here are some tips for increasing the profitability of your coffee shop:

Choose a good location. A good location is essential for success. Look for a location that is convenient for potential customers and has high visibility.

Offer a unique selling proposition. What makes your coffee shop different from others? What can you offer that your competitors cannot?

Provide excellent customer service. This is essential for building a loyal customer base. Make sure your staff is friendly and knowledgeable, and that they are always willing to go the extra mile for your customers.

Market your coffee shop effectively. Let potential customers know about your coffee shop and the unique offerings you have. You can do this through online marketing, social media and word-of-mouth.

Control your costs. Coffee shops have high costs, so it's important to control your costs as much as possible. This means negotiating good deals with your suppliers, managing your inventory carefully and keeping your labor costs under control.

Why do coffee shops fail?

There are a number of reasons why coffee shops fail. Some of the most common reasons include:

Poor location: A coffee shop in a bad location won't attract enough customers to be successful. Coffee shops need to be located in areas with high foot traffic, such as near office buildings, universities and parks.

High overhead costs: Coffee shops have high overhead costs, such as rent, utilities and labor. If a coffee shop can't generate enough revenue to cover its overhead costs, it will eventually fail.

Poor management: Poor management can lead to a number of problems, such as low customer satisfaction, high employee turnover and financial difficulties. Coffee shop owners need to have a strong business plan and be able to manage their finances effectively.

Lack of marketing: Coffee shops need to market themselves effectively to attract new customers and keep existing customers coming back. Coffee shop owners need to develop a marketing plan and budget, and they need to track their results to see what is working and what is not.

Competition: The coffee shop industry is very competitive. Coffee shops need to offer something unique to stand out from the competition.

Coffee shop business plan FAQ

How do you start a coffee shop business plan.

To start a coffee shop business plan, you need to consider the following factors:

Location: Choose a location that is convenient for potential customers and has high visibility.

Target market: Identify your target market and tailor your business plan to their needs and preferences.

Menu: Develop a menu that includes a variety of coffee drinks and food items that will appeal to your target market.

Pricing: Set prices that are competitive and generate a sufficient profit margin.

Operating costs: Estimate your operating costs, such as rent, utilities, labor and inventory.

Marketing: Develop a marketing plan to reach your target market and generate awareness of your coffee shop.

How many cups of coffee does a coffee shop sell per day?

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Cafe Business Plan Template

Written by Dave Lavinsky

Cafe Business Plan

You’ve come to the right place to create your Cafe business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Cafes.

Below is a template to help you create each section of your Cafe business plan.

Executive Summary

Business overview.

The Countryside Cafe is a startup cafe founded by Cheryl Nelson and Tammy Overton in Tulsa, Oklahoma. Together they have over twenty years of experience in managing and operating cafes and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable restaurants. Cheryl is the former manager of a family-owned restaurant, where she had oversight of the employees, ordering, systems and financial record-keeping for the restaurant. Tammy was the head staff person of a chain restaurant who managed the scheduling, training and day-to-day operations of the restaurant. Together, they have decided to bring a family friendly environment and classic menu items to Tulsa.

Product Offering

The following are the products and services that Countryside Cafe will provide:

  • Exemplary service for customers
  • Honest, reliable relationships with vendors and suppliers
  • Restaurant services 24/7 hours to accommodate all residents of the area
  • Discounted menu pricing and expedited service for first responders
  • Family-friendly menu items that everyone can enjoy
  • Day to day management

Customer Focus

The Countryside Cafe will target customers throughout the Tulsa region who enjoy eating comfort foods, such as they may have grown up eating. Secondary target customers will be those who enjoy the hometown-feel of a small cafe rather than a large or more modern establishment. Those individuals who occupy nearby businesses or government offices will also be targeted by the Countryside Cafe, as well as those who own farms or ranches in the region.

Management Team

The Countryside Cafe will be owned by Cheryl Nelson and Tammy Overton. Together they have over 20 years of experience in managing and operating a regional cafe and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable organizations. Cheryl is the former manager of a family-owned restaurant and Tammy was the head staff person of a chain restaurant. Together, they have decided to bring a family friendly environment and homestyle, fresh foods to Tulsa. The menu will include breakfast, lunch and dinner meals, as well as popular favorites such as ice cream sundaes and homemade pies any time of day.

Success Factors

Countryside Cafe will be able to achieve success by offering the following competitive advantages:

  • Friendly, knowledgeable, and highly-qualified team of Countryside Cafe
  • Comprehensive menu of meals for any time of day, including snacks, such as French fries and desserts, along with soda fountain favorites such as sundaes, malts and milkshakes.
  • Countryside Cafe will offer special discounted pricing for first-responders in Tulsa.
  • Countryside Cafe will offer a child menu and a play area for children while their parents enjoy their meal.
  • First-time visitors to the Countryside Cafe will receive a free dessert of their choice.
  • Countryside Cafe offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Countryside Cafe is seeking $200,000 in debt financing to launch its cafe business. The funding will be dedicated toward securing the restaurant space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

  • Restaurant space build-out: $20,000
  • Office equipment, supplies, and materials: $10,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph outlines the financial projections for Countryside Cafe.

Countryside Cafe Pro Forma Projections

Company Overview

Who is countryside cafe.

Countryside Cafe is a newly established, full-service homestyle cafe in Tulsa, Oklahoma. Countryside Cafe will be the most reliable, cost-effective, and efficient choice for individuals and families, as well as businesspeople in Tulsa and the surrounding communities. Countryside Cafe will provide a comprehensive menu of favorite meals, snacks and desserts for any diner to utilize. Their full-service approach includes a comprehensive menu and seating options to suit each family, including small children.

  Countryside Cafe will be able to serve over fifty people at one time. The team of owners and staff members are highly qualified and experienced in preparing, making and serving favorite family meals and snacks. Countryside Cafe removes all headaches and issues of finding easy, friendly and moderately-priced meals in Tulsa and ensures all appetites are satisfied while delivering the best customer service.

Countryside Cafe Management History

The Countryside Cafe consists of two experienced restaurateurs with distinctive areas of expertise: Cheryl Nelson and Tammy Overton have over twenty years of experience together in managing and operating a regional cafe and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable organizations.

Cheryl Nelson is the former manager of a family-owned restaurant, where she had oversight of the employees, ordering, systems and financial record-keeping for the restaurant. Tammy was the head staff person of a chain restaurant who managed the scheduling, training and day-to-day operations of the restaurant. Together, they have decided to bring a family friendly environment and honest, favorite foods to Tulsa.

Since incorporation, Countryside Cafe has achieved the following milestones:

  • Registered Countryside Cafe, LLC to transact business in the state of Oklahoma.
  • Have a contract in place for a 20,000 square foot restaurant space in a family-friendly retail area
  • Reached out to numerous contacts to visit the Countryside Cafe upon launch and regularly after the launch.
  • Began recruiting a staff of eight servers and four office personnel to work at the Countryside Cafe.

Countryside Cafe Services

The following will be the services Countryside Cafe will provide:

Industry Analysis

The cafe and small restaurant industry is expected to grow over the next five years to almost $500 million. The growth will be driven by consumers who seek favorite foods they’ve always enjoyed. Consumers also want to be served in small, more intimate settings which are relaxing and comfortable. Customers with children will help grow the cafe industry because, as families, they are more relaxed in the informal “down home” comfort of a small cafe versus a large, more formal restaurant.

Costs will likely be reduced as cafes continue to expand and modify their menus to seek out the best, most desirable menu items for consumers rather than spending widely on menu choices that may not be well-received. Costs will also continue to go down due to lower prices on produce and beef within the Oklahoma area. As fresh fruit is more in demand, juices and smoothies will cost less to produce than in the past, as well.

Customer Analysis

Demographic profile of target market, customer segmentation.

Countryside Cafe will primarily target the following customer profiles:

  • Individuals and families within the region
  • Small business owners and employees within the region
  • City officials and those who work in the business of Tulsa
  • Farmers and ranchers in the greater Tulsa regions

Competitive Analysis

Direct and indirect competitors.

Countryside Cafe will face competition from other companies with similar business profiles. A description of each competitor company is below.

Mama’s Kitchen

Mama’s Kitchen was started in 1998 by Candy and Jamie Swanson. Originally intended as a truck stop, Mama’s Kitchen grew to include a larger restaurant area in 2005 and has served breakfast and lunch to travelers from that time to the present. Located on the main highway through the city of Tulsa, the restaurant receives many travelers who opt to stop for a meal.

Mama’s Kitchen is twenty-three miles away from the Countryside Cafe. There are a few similarities to the menus served by both restaurants, as homestyle fare is offered. The differences between the two restaurant businesses is found in the family-friendly dining-booth atmosphere of the Countryside Cafe, while Mama’s Kitchen has countertops and bar stools throughout. This makes seating for a family difficult and children are not able to reach the countertops on stools at Mama’s Kitchen, which creates discomfort for children.

Buddy’s Bar & Grill

Owned by Robert “Buddy” Gorman, Buddy’s Bar & Grill is a full-service bar with a small dining room attached. The restaurant is located six miles from the Countryside Cafe. Meals are served at Buddy’s Bar & Grill during lunch and dinner; however, the restaurant is not open for breakfast. Meals are geared toward grilled hamburgers, steaks and fried fish, while the bar menu is laden with appetizer choices served during happy hour each Tuesday afternoon. Robert Gorman is assisted by his sister, Babs, who acts as the lone server in the grill and is known for her fast service and quick wit, which customers find charming. Children are not allowed in the bar, but they can be served in the grill side of the restaurant. The children’s menu is limited to hamburgers or cheese sandwiches served with fries.

Howard’s Family Restaurant

Howard’s Family Restaurant serves breakfast, lunch and dinner in a small dining room attached to the golf country club on the outskirts of Tulsa. It is located ten miles from the Countryside Cafe. Most patrons of Howard’s Family Restaurant are golfers who want to enjoy a meal before or after playing golf. The restaurant is one of a chain of restaurants and, while the prices are higher than those of the other cafes and small restaurants in Tulsa, the restaurant is known by the national marketing of the parent company. Children are served a special kids’ play and dine menu and families are highlighted as the primary target of the chain.

Competitive Advantage

Countryside Cafe will be able to offer the following advantages over their competition:

  • Friendly, knowledgeable, and highly-qualified team of the Countryside Cafe.

Marketing Plan

Brand & value proposition.

Countryside Cafe will offer the unique value proposition to its clientele:

  • Highly-qualified team of skilled employees who are able to provide a delicious meal in a pleasant surrounding for the entire family.
  • Countryside Cafe will offer special discounted pricing for first-responders in Tulsa, including police, fire and hospital staff. Doctors and nurses are also included.
  • First-time visitors to the Countryside Cafe will receive a free dessert of their choice, which helps guests feel welcome and comfortable.
  • Unbeatable pricing to its clients; they will offer the lowest pricing in the city.

Promotions Strategy

The promotions strategy for Countryside Cafe is as follows:

Word of Mouth/Referrals

Countryside Cafe has built up an extensive list of contacts over the years by providing exceptional service and expertise to their clients, including guests of all ages. The personal contacts and business associates will follow the new owners to the new cafe and help spread the word of Countryside Cafe.

Professional Associations and Networking

The new owners of the Countryside Cafe, Cheryl and Tammy, will join the civic organizations and trade networks to help build their cafe to its potential. They will become active in the committees for city celebrations, as well, to help build visibility of their cafe and raise awareness of their specialty menu items.

Print Advertising

The Countryside Cafe will send a direct mail flyer to each home and business in Tulsa in the two weeks prior to the launch of the restaurant. The flyer will invite everyone to participate in special discounted offers during the first month of business and offer a free dessert for each person who stops by to check out the area’s newest cafe.

Countryside Cafe will fully utilize their website. The website will be well organized, informative, and list all the services that Countryside Cafe provides. The website will also list their contact information and list their menu and pricing, along with delivery options. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “homestyle cafe” or “cafe near me,” Countryside Cafe will be listed at the top of the search results.

The pricing of Countryside Cafe will be moderate and below or on par with competitors so customers feel they receive excellent value when purchasing their products and services. Certain items, such as the childrens’ menu items, will be priced at a reduced profit margin in order to facilitate larger families that want to visit and can afford to do so with the reduced prices.

Operations Plan

The following will be the operations plan for Countryside Cafe. Operation Functions:

  • Cheryl Nelson will be the co-owner and president of the company. She will oversee all business development and manage client relations.
  • Tammy Overton will be the co-owner and vice president of the company. She will manage the operations and oversee all staff members.
  • Tyler Grant will be the Office Manager who will manage the office administration, client files, and accounts payable.
  • Tommy Tucker will be the maintenance employee who will provide all maintenance and repairs at the property.

Milestones:

Countryside Cafe will have the following milestones completed in the next six months.

  • 5/1/202X – Finalize contract to lease restaurant space
  • 5/15/202X – Finalize personnel and staff employment contracts for the Countryside Cafe
  • 6/1/202X – Finalize contracts for Countryside Cafe vendors and wholesale accounts
  • 6/15/202X – Begin networking at industry events
  • 6/22/202X – Begin moving into Countryside Cafe restaurant
  • 7/1/202X – Countryside Cafe opens its doors for business

The Countryside Cafe will be owned by Cheryl Nelson and Tammy Overton. Together they have over twenty years of experience in managing and operating a regional cafe and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable organizations.

Cheryl Nelson is the former manager of a family-owned restaurant and Tammy was the head staff person of a chain restaurant.Together, they have decided to bring a family friendly environment and homestyle, fresh foods to Tulsa. The menu will include breakfast, lunch and dinner meals, as well as popular favorites such as ice cream sundaes and homemade pies any time of day.

Financial Plan

Key revenue & costs.

The revenue drivers for Countryside Cafe are the fees they will charge to customers for their products and services.

The cost drivers will be the overhead costs required in order to staff Countryside Cafe. The expenses will be the payroll cost, rent, utilities, inventory, office supplies, and marketing materials.

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of restaurant customers per Month: 1,000
  • Average revenue per Month: $25,000
  • Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, cafe business plan faqs, what is a cafe business plan.

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

You can easily complete your Cafe business plan using our Cafe Business Plan Template here .

What are the Main Types of Cafe? 

There are a number of different kinds of cafe businesses , some examples include: Take-Out Cafe, Restaurant Cafe, Casual cafe, and Coffee Shop.

How Do You Get Funding for Your Cafe Business Plan?

Cafe businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Cafe Business?

Starting a cafe business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

  • Develop A Cafe Business Plan - The first step in starting a business is to create a detailed cafe business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  
  • Choose Your Legal Structure - It's important to select an appropriate legal entity for your cafe business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your cafe business is in compliance with local laws.
  • Register Your Cafe Business - Once you have chosen a legal structure, the next step is to register your cafe business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
  • Identify Financing Options - It’s likely that you’ll need some capital to start your cafe business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
  • Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
  • Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
  • Acquire Necessary Cafe Equipment & Supplies - In order to start your cafe business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
  • Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cafe business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful cafe business:

  • How to Start a Cafe

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

By Debra Weinryb

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

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

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

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

Smiling barista standing in front of a modern coffee bar.

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

What is a Coffee Shop Business Plan?

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

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

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

two coffee baristas work in a coffee shop

How to Write a Business Plan for a Coffee Shop

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

Elements of a Coffee Shop Business Plan

Executive summary for a coffee business .

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

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

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

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

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

Business Overview

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

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

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

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

Management and Staff

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

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

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

Coffee Shop Market Analysis

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

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

Customer Analysis

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

Sample Menu

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

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

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

Marketing Plan and Publicity

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

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

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

Business Operations and Operating Plan

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

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

Retail Space

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

Specialized Equipment

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

Financial Forecast and Expenses

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

Your financial forecast and expenses section should include the following:

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

Coffee Shop Business Plan: Next Steps and Plan Template

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

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

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

FAQs: Coffee Shop Business Plan

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

How profitable is a coffee shop?

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

How do you start a coffee shop business?

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

How much budget is needed to open a coffee shop?

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

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

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

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

Debra Weinryb author photo

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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11+ Cafe Business Plan Examples [ Restaurant, Cyber, Internet ]

Cafe Business Plan

Coffee ranks second in the most sought commodities worldwide, the first is crude oil, according to a Business Insider report. That doesn’t come as a surprise. We’re all aware that most of us love drinking coffee. For some, coffee is their morning kick-starter and their fuel to start their long, busy day. Others drink several cups of coffee throughout their daily schedule , especially those who have desk jobs. But simply put, people are fond of coffee in general, which could also mean they’re fond of visiting cafes. So if you’ve been considering opening a cafe business lately, now is the time to go for it. It’ll certainly catch the attention of coffee lovers. But first, you need to plan your business right for that to happen. So, here we invite you to have a look at our Cafe Business Plan Examples !

11+ Cafe Business Plan Examples

1. cafe business plan financial template.

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2. Cafe Business Plan Template

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3. Cafeteria Business Plan

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4. Cafe Business Plan Example

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5. Start-up Cafe Business Plan

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6. Sample Cafe Business Plan

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7. New Cafe Business Plan

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8. Cafeteria Business Plan Template

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9. Cafe Business Plan in PDF

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10. Outdoor Cafe Business Plan

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11. College Cafe Business Plan

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12. Cafe Marketing Business Plan

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What Is a Cafe Business Plan?

A cafe business plan outlines the profile, products, services, operations, and strategies of a cafe business. It’s simply another form of a business plan that focuses on a cafe business’s overview. You can also call it a coffee shop business plan . This is the document you need to prepare to start making your cafe plan a reality. You should put everything that you’re envisioning for your cafe business on it.

You might be asking why you need a cafe business plan. We have a good explanation for you. Without a business plan, you wouldn’t have a clear vision or goal of establishing your cafe. And you won’t have any form of a solid action plan to achieve your business expectations. Along the way, you’ll face challenges in preparing your business. But you won’t know what to do to overcome them. With a written business plan , you’ll have a clear roadmap of how to arrive from point A to B and so on until you accomplish your business goals. And lastly, the government will look into your cafe business plan proposal before granting you a permit to open your cafe.

What Type of Business Is a Cafe?

Cafes primarily serve coffee to their customers. Therefore, they’re a food and beverage type of business. Historically, cafes were once called as coffeehouses, and they only served coffee. Today, cafes not only serve coffee. They now also serve entree, main course, and dessert dishes, but on a limited menu . Their primary products are still their  coffee menu  and also  tea menu .

How to Write a Cafe Business Plan

Among the first steps in conceptualizing a business is writing a business plan. It’s the first stage in your journey to becoming a cafe business owner. So to help you get started, we’ll give you a few tips in formulating your sample business plan for a cafe.

1. Establish Your Cafe’s Identity

In the first three sections of your business plan, you should establish your cafe’s identity right away. On the title page, you should state your cafe’s official name and display its business logo . On the executive summary , discuss its general overview. And after that, show its business profile.

2. Showcase Your Menu

If you’ve already prepared your cafe menu , showcase it in your business plan. This makes your business plan more appealing and convincing. It implies that you have a clear idea of what you want for your business, even if it’s not final yet. Make sure to provide descriptions of your products, such as their ingredients and possible prices.

3. Outline Your Strategies and Standard Operations

In launching a business, you’ll be doing a feasibility study and a market analysis . Based on their results, you need to come up with your marketing strategies and production plan . Those two should explain how you’re going to promote your cafe and how you’re going to conduct services, respectively.

4. Explain Your Startup Budget Calculation

Probably the most crucial section of a business plan is the budget plan . Financial aspects are never out of the equation in operating a business, especially starting one. So in your business plan, make sure to explain how your budget will cover for every needed expense for your cafe. You should also show an estimate of how it can generate revenue and profit.

What industry does a cafe business belong to?

A cafe business belongs to the food and beverage industry. But because it primarily serves coffee products, it also belongs to a specific section in the food and beverage industry, which is the coffee industry.

What makes cafes popular?

Coffee isn’t the only element that makes cafes popular in every locality. Another element is their overall ambiance. That includes the type of furniture used, the interior design, and the location. The atmosphere that cafes have are simply relaxing. They’re a good place to do work, meet up with friends, read a book, or spend some alone time.

What makes a topnotch cafe business?

The two things that make a topnotch cafe is producing high-quality coffee products and providing excellent customer service. Those two should work hand in hand.

Things could go south immediately if you mismanage your cafe. Plus, many cafes have established trust among customers, and they’re your competitors. With those said, running your cafe won’t be easy. But whoever said owning a business is easy? No one, of course. So start planning your cafe with the help of our business plan examples now! You may also refer to our small restaurant business plan examples .

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

Table of Contents

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

What is A Coffee Shop Business Plan?  

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

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

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

1. Clear Vision and Objectives

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

2. Financial Planning

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

3. Operational Efficiency

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

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

1. Executive Summary

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

What should you cover in an Executive Summary?

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

2. Coffee Shop Business Description

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

What should you cover in the Coffee Shop Description section?

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

3. Market Analysis

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

What should you cover in this section?

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

4. Organization and Management

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

What should you cover in the Organization and Management Plan?

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

5. Sample Menu

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

What should you consider when creating a Sample Menu?

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

6. Marketing Plan

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

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

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

7. Operations Plan

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

What Operational Issues should you address in your Business Plan?

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

8. Financial Plan

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

How Much Does It Cost to Start a Coffee Shop?

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

How Many Ways to Fund Your Coffee Shop?

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

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

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

9. Financial Projections

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

Break-even analysis:

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

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

Projected profit and loss statement:

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

Cash flow analysis:

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

Coffee Shop Business Plan Template 

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

2. Description of the Coffee Shop

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

3. Menu Offer

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

4. Market and Competition Analysis

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

5. Investment Plan (Detailed Cost Analysis)

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

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

Operating Costs (Monthly): $17,000

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

6. Financial Forecast

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

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

8. Marketing Plan

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

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

Tips For Writing a Business Plan For a Coffee Shop

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

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

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

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

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

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

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

Frequently Asked Questions

1. how profitable is owning a coffee shop.

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

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

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

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

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

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

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

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

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

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

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How to write a business plan for a café?

café business plan

Putting together a business plan for a café can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing café, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a café?

  • What information is needed to create a business plan for a café?
  • How do I build a financial forecast for a café?

The written part of a café business plan

  • What tool should I use to write my café business plan?

Having a clear understanding of why you want to write a business plan for your café will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a café business plan.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your café. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your café to be in the next three to five years.

Once you have a clear destination for your café, you'll focus on three key areas:

  • Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
  • Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
  • Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your café's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Crafting a comprehensive business plan for your café, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your café has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your café, let's delve into the necessary information needed to craft an effective plan.

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The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

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Information needed to create a business plan for a café

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your café business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a café

Before you begin writing your business plan for a café, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your café.

You might discover that customers may be interested in a wider range of specialty drinks, such as smoothies or milkshakes. Additionally, market research could reveal that customers may prefer healthier snack options, like salads or fruit bowls.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your café.

café business plan: successful entrepreneur

Developing the sales and marketing plan for a café

As you embark on creating your café business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a café

Whether you are at the beginning stages of your café or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

Staffing costs for a cafe might include wages for baristas, cooks, and cashiers, as well as insurance for the staff. Equipment costs could include items such as an espresso machine, refrigerators, ovens, and other necessary kitchen appliances. Additionally, costs for furniture and fixtures, such as tables, chairs, and displays, may be incurred.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your café.

What goes into your café's financial forecast?

The objective of the financial forecast of your café's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a café are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a café shows how much revenue and profit your business is expected to make in the future.

example of projected profit and loss statement in a café business plan

A healthy café's P&L statement should show:

  • Sales growing at (minimum) or above (better) inflation
  • Stable (minimum) or expanding (better) profit margins
  • A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established café.

The projected balance sheet of your café

Your café's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

  • Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
  • Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
  • Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

example of forecasted balance sheet in a café business plan

Your café's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

  • Your café's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
  • And its solvency: does your business have the capacity to repay its debt over the medium-term?

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your café has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your café business plan.

example of projected cash flow forecast in a café business plan

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

  • Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
  • Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
  • Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your café business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a café.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

sources and uses table in a café business plan

This table helps size the investment required to set up the café, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your café business plan, let's have a look at the written part of the plan.

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The written part of a café business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your café's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your café's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

The second section in your café's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your cafe, you may want to emphasize its potential for success. You could point out that the area has a large population and a strong market for cafés, suggesting that your business could do well in the area. You might also point out that the area is easily accessible by public transportation and has plenty of parking, making it convenient for customers to visit. You could also mention that the area has a vibrant, diverse population, making it a great place to attract a wide range of customers. All of these factors could make your café an attractive investment opportunity.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your cafe could offer freshly-made coffee, tea, and pastries to its customers who could enjoy these items made with quality ingredients and sit in the cafe and work or socialize with friends. Your cafe could also offer to-go orders and catering services for special occasions. These options would give customers the flexibility to enjoy the cafe's offerings no matter the time or place.

4. The market analysis

When you present your market analysis in your café business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your café, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your café aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include young professionals. They have the money to buy coffee and pastries as a quick snack and desire a convenient, yet sophisticated atmosphere to work or socialize. They often prefer to purchase higher quality, specialty coffee or tea drinks and appreciate a café that offers a variety of options and a pleasant atmosphere.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your café.

5. The strategy section

When crafting the strategy section of your business plan for your café, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your cafe may face the risk of theft or robbery. With the amount of cash on hand, it could make it an attractive target to criminals. Additionally, your cafe may be exposed to health risks, such as foodborne illnesses. Poor food hygiene practices and inadequate food safety procedures might lead to health risks for customers.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your café.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your café's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You might have key assets such as your cafe's brand name and logo, as well as the recipes for your signature dishes. These could be protected as intellectual property and could be the basis for your cafe's identity. Additionally, the interior design of your cafe, in particular the furniture, could be an important asset that contributes to the overall atmosphere and ambiance.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a café business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my café's business plan?

In this section, we will be reviewing the two main options for writing a café business plan efficiently:

  • Using specialized software,
  • Outsourcing the drafting to the business plan writer.

Using an online business plan software for your café's business plan

The modern and most efficient way to write a café business plan is to use business plan software .

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Screenshot from The Business Plan Shop's Financial Forecasting Software

Hiring a business plan writer to write your café's business plan

Outsourcing your café business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your café business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your café's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a café business plan is not advisable. Allow me to explain the reasons.

Firstly, creating an accurate and error-free financial forecast on Excel or any spreadsheet demands technical expertise in accounting principles and financial modelling. Without a degree in finance and accounting and significant financial modelling experience, it's unlikely that the reader will fully trust your numbers.

Secondly, relying on spreadsheets is inefficient. While it may have been the go-to option in the past, technology has evolved, and software now performs such tasks much faster and more accurately.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software offers ease in comparing actuals versus forecasts and maintaining up-to-date forecasts for clear visibility on future cash flows, as we discussed earlier in this guide. Such tasks are cumbersome when using spreadsheets.

Now, let's address the written part of your café business plan. While it may be less prone to errors, using software can significantly boost productivity. Word processors lack instructions and examples for each section of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they lack automated formatting capabilities.

In summary, while some entrepreneurs may consider Word or Excel for their business plan, it's far from the best or most efficient solution when compared to specialized software.

  • Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
  • A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a café. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

  • How to write a 5 years business plan
  • Business plan myths

Know someone who owns or wants to start a café? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Start a Cafe Business in 14 Steps (In-Depth Guide)

Updated:   January 26, 2024

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The cafe business market is expanding, with consistent success. With a projected compound annual growth rate (CAGR) of 3.7% from 2022 to 2032 , the market could reach $243 billion by 2032.

how to make a cafe business plan

Success hinges on astute planning, attention to customer experience, quality products, and adaptability in our digital age. This guide will cover key steps – from crafting your business plan to designing your space and menu to budgeting smartly. While competition varies by location, the rewards of operating your café often outweigh the demands.

This guide will walk you through how to start a cafe. Topics include market research, marketing, customer focus, registering an EIN, obtaining business insurance, and forming an LLC. Here’s everything you need to know to start your own cafe business.

1. Conduct Cafe Market Research

Market research is important for newcomers to the cafe business market. It offers insight into your target audience, local coffee shop trends, and market saturation. There are two types of market research, primary research you do yourself, and secondary research compiled by a third party.

how to make a cafe business plan

Some details you’ll learn through market research include:

  • Several key drivers feed the skyrocketing demand for cafés and specialty coffee shops.
  • Consumers increasingly view cafés as “third spaces” outside work and home to socialize, remote work, or simply enjoy high-quality drinks and snacks.
  • The millennial cohort in particular fuels growth – young generations drive trends like specialty brews, mobile ordering, and sustainability that cafés readily incorporate.
  • While chains like Starbucks, Dunkin’ Donuts, and Caribou Coffee dominate, independent cafés thrive by offering unique atmospheres and hyperlocal community connections.
  • Market saturation remains relatively low, indicating room for new café entrepreneurs to carve out territory with creative differentiation and localization.
  • The most lucrative café segments currently include specialty coffee, Latin coffee shops, dessert cafés, and automated mobile cafés.
  • Keys to continued success and profitability include astute site selection, efficiency, customer loyalty programs, and social media integration.
  • Adaptability also proves vital – café owners who rapidly implemented online ordering and contactless payment during COVID-19 mitigated revenue drops by up to 60%.

In summary, industry analytics overwhelmingly confirm the café sector’s resilience and viability for aspiring business owners. While big chains present competition, the broad market appeal, relatively low barriers to entry, and manifold opportunities for innovation symbolize a bright future.

2. Analyze the Competition

Competitive analysis is an important part of building a business. It helps you assess your pricing structure, build a thorough business plan, and develop services and products based on successful coffee shop ventures.

Some ways to learn more about other coffee shop owners include:

  • Drive around town with fresh eyes – note coffee shops already operating, and jot down specifics like size, appearance, hours, and menu options visible. Also check whether or not they offer additional services such as hookahs and other leisure areas, or if they let cats stay at the cafe, essentially doubling as a cat cafe . This can increase your overall reach and business attractiveness to new customer groups.
  • Covertly observe the in-store customer experience at multiple times of day – how busy do they seem, what offerings get ordered most, is the atmosphere inviting?
  • Search online reviews for existing cafés on Yelp, Google, and Facebook to gather customer sentiment.
  • Pay attention to what people rave and complain about to identify unmet needs a new entrant could satisfy.
  • Study their social media engagement across platforms – follower counts, post reactions, and user-generated content featuring their brand.
  • Assess the polish and functionality of online ordering platforms and mobile apps.
  • Consider search engine visibility by plugging “cafés near me” into Google Maps – where do rivals rank?
  • Incorporating both offline and online investigative work allows founders to realistically evaluate direct and adjacent competition while informing their positioning.
  • A SWOT analysis can then synthesize findings to illuminate viable differentiators – maybe an avant-garde drink menu, monthly comedian nights, and reservable workspaces.
  • Data and creativity together enable new cafés to stake out a distinctive niche.

Use details gleaned through competitive analysis to build up your coffee shop business. From forming a coffee shop business plan to sourcing ingredients for your coffee shop menu, competitive analysis helps your new coffee shop secure a place among independent coffee shop owners.

3. Costs to Start a Cafe Business

When launching a café, the majority of initial expenses stem from real estate, build-out, equipment, inventory, and permitting. Here, we’ll break down the coffee business expenses you may encounter as you begin your own coffee business.

Start-up Costs

  • Total start-up costs often range from $80,000-$250,000+ depending on size and services offered.
  • Appropriate commercial space is essential, be it leasing, buying, or even a food truck. Average small café lease rates run $15-$30 per square foot annually.
  • Purchasing an existing restaurant property can require $100,000-$500,000+ depending on location and features. Food trucks have lower barriers to entry around $50,000.
  • Build-out costs to furnish, renovate, and optimize the site layout add another $15,000-$38,000.
  • Specialized equipment constitutes a significant fixed cost. High-volume espresso machines range from $8,000-$15,000.
  • Fridges, ovens, dishwashers, and other kitchen appliances add a few thousand each. Ventilation, fire suppression systems, point-of-sale setups, and dining furniture also add up quickly. New cafés can expect to invest $20,000-$45,000 in key equipment.
  • Ingredient inventory must be purchased upfront before opening day. Estimate $5,000-$10,000 to stock coffee beans, bakery items, produce, dairy, paper products, utensils, and more until cash flow stabilizes.
  • Cafés with liquor licenses require extra capital for wine, beer, and spirits – at least $3,000 initially.
  • Various permits and professional services facilitate a smooth launch. Filing fees for LLC formation and food service licenses cost $500-$1,500.
  • Lawyers and accountants may charge $2,000-$5,000. Designers, architects, and contractors also have pricey fees but prove worthwhile for space planning and efficient build-outs.

Altogether, a 1,200 sq ft counter-service café with mostly second-hand equipment may launch for $80,000 if opting for a basic built-out space. A 2,500 sq ft full-service site with entirely new equipment and custom architecture could demand upwards of $250,000.

Also worth noting that smaller cafes are often present in movie theaters , whether in-house or external (e.g. Starbucks). Consider branching out as you’ll constantly have a steady influx of customers at such a hot spot.

Ongoing Costs

Once opened, cafés face numerous ongoing operating expenses split into fixed and variable costs:

  • Rent/Mortgage – $24,000-$100,000+ annually
  • Loan repayment – $8,000-$30,000
  • Equipment leases – $2,000-$10,000
  • Payroll including taxes and workers comp – $60,000-$250,000+
  • Insurance – $4,000-$8,000
  • Utilities – $6,000-$15,000+
  • Point of sale fees and subscriptions – $1,000-$4,000
  • WiFi and music licensing – $600-$1,500
  • Accounting and legal retainers – $500-$5,000
  • Advertising – $2,500-$15,000+
  • Food/beverage inventory – 30-50% of monthly sales
  • Janitorial supplies and shop upkeep – $1,000-$4,000

Careful financial planning and cost control will help offset slim profit margins in the competitive café sector. But for owners who curate an in-demand concept and brand identity, the earnings potential remains highly stimulating.

4. Form a Legal Business Entity

As you open a coffee shop, owners must weigh options on the legal business entity. The four primary formations each impact taxes, regulations, liability protection, and expansion capabilities differently. For coffee shops specifically, limited liability companies (LLCs) tend to offer the best balance of flexibility and owner protection.

Sole Proprietorship

Sole proprietorships represent the simplest yet riskiest entity. They involve minimal paperwork and cost nothing to initiate. Owners report profits or losses on personal tax returns. However, solo presenters bear unlimited financial liability – meaning their homes and assets get tied up if sued.

Partnership

Partnerships allow the sharing of operations and expenses across two or more founders. But similar to sole proprietors, general partners remain personally liable for debts and legal issues.

Corporation

On the incorporated side, C-corporations have the highest start-up costs – incorporation filing fees plus annual franchise taxes. They provide limited liability shielding but face double taxation on company earnings and shareholder dividends. S-corp election avoids double tax but adds accounting complexity with strict ownership rules that can prove overly restrictive for café growth.

Limited Liability Company (LLC)

By comparison, Arizona State University’s business experts hail LLCs as the best option for small hospitality firms like cafés. LLC registration protects owners’ assets if sued, avoiding sole proprietorship exposure. Taxwise, earnings, and losses pass to members’ returns without corporate double taxation. Operations governance brings flexibility akin to partnerships but with the liability limits of a corporation.

5. Register Your Business For Taxes

All new business owners must obtain an Employer Identification Number (EIN) from the IRS, which functions like a Social Security Number for your company. This unique 9-digit number identifies your LLC, corporation, or other legal business structure for federal tax purposes.

While sole proprietors can use their SSNs initially, the SBA highly recommends securing your own EIN even if you don’t plan to hire employees. Having an EIN adds legitimacy for partners, lenders, and vendors. It also enables opening business bank accounts properly titled to your company.

Thankfully obtaining an EIN takes just minutes online. Simply:

  • Navigate to the IRS EIN Assistant
  • Answer a few basic questions about your LLC or corporation
  • Provide your personal identifying information for verification
  • Get your EIN immediately upon submitting the form

The online EIN application has no fees or processing delays. You must print/save the final assignment notice from the IRS for record-keeping.

With your federal EIN secured, contact your state revenue office to register for additional tax IDs used in sales tax collection, payroll taxes, alcohol licenses if applicable, and other filings. States charge no registration fees either, though you’ll need to integrate reported sales and income on separate state returns annually.

Streamlining legal compliance from the start helps cafés focus on customers and growth in a complex regulatory environment. An EIN only takes minutes via the IRS portal but unlocks essential business functions down the road.

Let me know if you need any other details about obtaining an EIN, applying for state tax licenses, or navigating business taxes as a new café owner!

6. Setup Your Accounting

With slim profit margins prevailing in the food service industry, café owners must implement rigorous financial systems right from the start. Careful record-keeping, accounting software, fiscal diligence, and retaining a tax professional provide vital foundations for success.

Accounting Software

After securing your EIN, invest in user-friendly accounting software like QuickBooks to track all transactions in one place. The cash basis method recognizes income/expenses when money exchanges hands, which simplifies reporting for small cafés. Link your business bank and credit card accounts so payments automatically download into preset categories like supplies, payroll, utilities, etc.

Hire an Accountant

While the software does the heavy lifting, working with an accountant or bookkeeper safeguards accuracy in documenting deductible expenses, estimating quarterly taxes, reconciling accounts, and producing clean financial statements to spot issues.

Expect to invest $100-$250 monthly for comprehensive outsourced accounting or around $700-$1,500 for annual filing prep. An accountant also proves invaluable if audited down the road, supplying evidence to validate deductions claimed.

Open a Business Bank Account

Separating business finances from personal avoids monstrous headaches at tax time. Open dedicated café checking/savings accounts and apply for a business credit card solely for company expenditures. Consumer cards often can’t handle high transaction volumes anyway.

7. Obtain Licenses and Permits

While exciting to finalize menus and décor, new cafés must allot time upfront to navigate licensing requirements. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

At a minimum, register for a baseline food service establishment permit through local health departments before serving anything edible to customers. These prevent foodborne illness by stipulating protocols for ingredient sourcing, prep, storage, cleaning, and employee health policies.

If planning to sell alcoholic beverages, apply for separate liquor licensing through alcohol control boards in your state. Eligibility for beer/wine versus full liquor depends on the cuisine type, seating capacity, and hours. Liquor permits run $500-$2,000 with annual renewals and staff training mandates. Bartenders must obtain additional certification.

Cafés hosting live entertainment or background music require analog music licensing like an ASCAP or BMI Permit. These royalties compensate artists when songs commercially play and cost around $275-$590 yearly. Venues above certain occupancies need concert/event permits for talent shows, trivia nights, or open mic events too.

While not universally mandated, café owners concerned with public health may additionally pursue recognized food safety training and display-related signage. Programs like ServSafe offer evidence you uphold best practices for contamination avoidance, thereby attracting discerning patrons. Some cities even incentivize such voluntary credentialing.

Confirm precise requirements with business licensing departments and schedule adequate lead time. The permitting process held Emilie’s Bakery from a disastrous incomplete inspection at their grand opening ribbon cutting! Confirming regulatory obligations early keeps new cafés compliant and audit-proof.

8. Get Business Insurance

While an unbudgeted expense, business insurance gives café owners peace of mind against scenarios threatening their livelihoods. Policies cover losses from theft, property damage, customer injury lawsuits, and other risks – no small problem given hot liquids, slippery floors, and heavy equipment.

Imagine a winter pipe burst flooding your newly renovated space, destroying walls, wiring, and custom tile work. Without coverage, the café must pay six-figure repair costs out of pocket. Now imagine a patron spills tea and slips on your vinyl floors.

Thankfully getting insured does not break the bank and prevents catastrophic loss. Start by researching café-specific risks using Hartford’s industry risk profiler. Next, connect with independent insurance brokers familiar with local food-service clients. Standard policies include:

  • General liability – covers 3rd party injury/property claims
  • Equipment coverage – replaces stolen/damaged appliances
  • Workers comp – pays staff medical bills
  • Loss of income – continues some profits after a disaster

Ensure adequate limits given major assets like machinery or real estate improvements. For optimal protection, secure policies 30-60 days before opening doors to customers and require certain coverages from vendors. Defending your livelihood deserves priority!

9. Create an Office Space

Although counterintuitive given their physical retail sites, securing office space proves essential for café owners to operate administrative functions outside chaotic kitchens. An external headquarters, be it home-based, shared, or private, offers a space for administrative duties.

Home Office

Home offices allow bootstrapping cafés to avoid paying rent elsewhere initially. Dedicating space for filing, equipment storage, and food science experiments also enables tax write-offs on a portion of residential bills. However, separating work and personal life often proves beneficial for concentration.

Coworking Office

Coworking spaces like WeWork supply turnkey office infrastructure for around $300-$500 monthly. Many provide meeting rooms to interview chefs, kitchen incubators to test recipes after hours, and networking events to connect with fellow entrepreneurs. While budgets tighten, the flexibility and amenities keep startup costs manageable until cash flow stabilizes.

Commercial Office

As managers build out management teams over time, leasing a private commercial office better accommodates more employees permanently stationed behind the scenes versus just running the register. Expect monthly rates from $1,000-$1,500 but with no restrictions on hours or storage for extra equipment/records.

10. Source Your Equipment

Outfitting a café requires significant upfront investment in durable commercial-grade inventory spanning furniture, cooking gear, point-of-sale systems, and small wares. Thankfully multiple acquisition options balance quality and affordability.

When buying brand new, beverage-focused sites like Espresso Parts offer barista tools like high-end Italian espresso machines, grinders, tampers, and steaming pitchers often sold in discounted bundles. Commercial kitchen retailers like Webstaurant Store supply heavy-duty ovens, refrigeration, ventilation, prep tables, utensils, and display cases configurable to space.

To conserve startup capital, browse used listings on eBay , Facebook Marketplace , and Craigslist for quality floor models or refurbished wares at 40-60% discounts off retail. Peer networks connect buyers and sellers of specialty baking gear through their online exchange. Try searching locally first to inspect the condition before committing.

Renting essential equipment also limits large outlays while opening helps cash flow early on. National companies deliver commercial dishware, tables, linens, and servers for off-site catering gigs with flexible terms. Rental fees apply to eventually owning certain items too.

Leasing agreements for expensive machinery like high-performance coffee roasters allow spreading payments over 3-5 years until the balance is satisfied. This pay-as-you-go approach prevents major asset purchases from paralyzing young businesses. Credit checks often factor in leases, however.

11. Establish Your Brand Assets

Crafting a distinctive brand platform fuels recognition, trust, and customer loyalty over commodity competitors. While initially daunting, methodically curating visual identity, communications channels, and an online hub need not break tiny startup budgets.

how to make a cafe business plan

Get a Business Phone Number

Secure an official business line via cloud-based providers like RingCentral for around $30 monthly. Toll-free numbers project credibility while call routing, voicemail transcriptions, and custom greetings operate professionally.

Design a Logo

Design aesthetics likewise convey persona. Have a designer create a timeless wordmark logo evoking your café’s vibe through font, color, and icons from Looka . Expect to invest $200-$500. Vector files adapt easily to signs, cups, ads, and swag. Steer clear of overused visual clichés.

Print Business Cards

Print 500-1000 business cards for under $20 from Vistaprint to share during guest interactions, vendor meetings, hiring fairs, and community networking. Cards enable quick captive messaging after pleasant café encounters.

Prominent exterior signage also drives lucrative foot traffic – illuminate hours, menus, and brand insignia outside. While pricier than print materials, quality metal and neon signage lasts for years with proper installation.

Get a Domain Name

Digital real estate equally enables discovery by neighborhood patrons and tourists alike. Register an intuitive .com domain with your name via Namecheap for about $12 annually. Use this consistently across platforms like GMB, social media, and email.

Design a Website

Building out an owned website on Wix or WordPress enables showcasing menus, events, catering details, e-commerce, and contact options without third-party interference. Expect to invest $100-$500 launching with custom branding. If funding is extraordinarily tight, you can also commission affordable site development on Fiverr .

12. Join Associations and Groups

While competitive, the food and beverage industry encourages remarkable collegiality. Connecting with community resources, complementary businesses, and hospitality pros pays dividends for novice café owners through traded secrets and elevated visibility.

Local Associations

Joining the local chapter of the Specialty Coffee Association offers workshops on brewing techniques and customer retention alongside peer networking. Membership fees of around $100-150 prove worthwhile for insider tricks. Restaurant alliances additionally lobby for legislative changes benefitting eateries.

Local Meetups

Attending regular startup meetups via Meetup enables you to meet fellow entrepreneurs plus sponsor Booths featuring your scones or pour-overs and get your brand directly in front of potential customers and vendors like commercial linen services. Expect to invest $50+ monthly to maximize exposure at multiple events.

Facebook Groups

For free perpetual advice, join hyper-targeted Facebook Groups like RESTAURANT BUSINESS OWNERS and Coffee Shop Owners Only alongside local conversations. Learn from peers globally in managing staff, marketing on Instagram, saving money, and preventing common pitfalls.

13. How to Market a Cafe Business

While tempting to focus solely on perfecting recipes and interiors, dedicating time to strategic marketing proves indispensable for attracting initial customers and sustaining patronage long-term. By tapping personal connections alongside targeted digital and print channels, new ventures can amplify visibility and sampling.

Personal Networking

Start close to home, most small businesses earn new clients from word-of-mouth sources like friends, family, neighbors, and colleagues. Savvy owners incentivize referrals by offering free drink cards to existing patrons who check in on social media and tag new guests.

Digital Marketing

  • Run hyperlocal Facebook and Instagram ads highlighting signature breakfast sandwiches or oat lattes
  • Claim and optimize free business profiles like Google My Business, Yelp and TripAdvisor
  • Produce snackable behind-the-scenes café culture videos for TikTok and YouTube
  • Send limited-time reopening offers via SMS and email collection
  • Partner with workplace offices, fitness studios, and apartment buildings nearby to fuel referral rewards
  • List catering menus on gig marketplaces like UberEats for expanded visibility

Traditional Marketing

  • Distributing menus and flyers at the public library, rec center, and local colleges
  • Placing radio ads spotlighting trivia nights on community stations
  • Sponsoring Little League teams and putting up banners at games
  • Staking signs at busy neighborhood intersections

The most effective strategies entice trial from a fusion of existing networks and targeted local outreach. Space limitations prevent covering everything here but let’s brainstorm other ideas that could uniquely work for your café!

14. Focus on the Customer

In an increasingly commoditized food service sector, stellar customer service stands out as a competitive differentiator for cafés striving to build loyalty and earn referrals.

how to make a cafe business plan

Some ways to improve customer focus as a coffee shop owner include:

  • Tactics like greeting every patron by name, customizing orders for regulars, and gift card bonuses after frequent visits make customers feel individually appreciated, not just processed.
  • Baristas might also deliver samples of new whole bean arrivals to spark conversation and showcase expertise.
  • Little service touches spotlight the care and pride owners place in their neighborhood oasis.
  • A memorable send-off like “Your lunch is on us today, we so appreciate your continued support!” demonstrates genuine recognition of patronage that earns huge dividends offline and on platforms like Yelp.
  • Putting people first with thoughtful hospitality and attention powers expansion more than any single marketing tactic alone ever could.

Let’s discuss additional ways we can wow your café guests! Delivering consistently excellent service remains every entrepreneur’s secret weapon.

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How to write a cafe business plan

Cafe business plans are boring.

No one likes writing them, very few people even want to read them…but they can be vital for the success of a new business.

Why? Because as you write down your plans on a page, the process makes you to think critically about the how viable your concept really is.

There are a lot of long, technical business plan templates out there. This is not one of them. This is a simple, practical cafe business plan template for everyday humans.

Cafe Business Plan Kit

Enter your email and we'll instantly send you a link to download our business plan kit, as well as a other cafe business resources.

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A good business plan should make you answer hard questions like:

  • How are you really going to be different from your competitors?
  • Where are your customers going to come from?
  • How much money do you need to get started? (and then stay afloat for the first year)
  • What sales & profit are you projecting over the first 3 years?

Start with your goals

how to make a cafe business plan

Start by answering the most important, and often most difficult question: why are you doing this?

Some people are in it for the money, some are buying themselves a new career, some just want to see their vision become a reality. Your specific goals could also include how you’ll impact the community, your family (like time off) and a whole lot more.

Ultimately, you want to communicate what success looks like to you.

While you’re at it, I think it’s also wise to at least think about an exit plan. I know that seems like the opposite of what you should be doing right now, but having a strategy for selling or expanding your business will be a big deal in years to come. Some questions to ask all the partners involved in the business are: Is this for life, or are we planning to sell at some stage? How many years before we take a look at our options?

Marketing Plan: Who is this business for?

how to make a cafe business plan

The most effective businesses are designed with specific customers in mind. The more specific you get, the more you can focus the plan on what they want. The example above (from the business plan template) breaks down customers into segments based on who they are (demographics) and what “occasion” (time of day, circumstance) you can fulfil. Now we have an idea of who they are, let’s have a look at what the competition is doing.

Your Competition & Competitive Advantage

If you already have an exact location lined up, go ahead and take a look at which customer segments your closest competitors are looking after.

Be honest, most businesses have something and someone they’re just right for. Find out what it is and compare it to the segments you're targeting.

Identify those things that you can focus on to help you stand out. Remember, you don’t have to please everyone, but you do need to be completely amazing for the customers you’re targeting.

Once, you really understand your customer & your competitive advantage you’re off to a great start. The marketing plan should also include:

  • Pricing Strategy
  • Promotions & Advertising Strategy
  • S.W.O.T. Analysis – that is, the strengths, weaknesses, opportunities & threats of your business concept
  • Branding & Store Design Strategy

Once you've got the fundamentals of your marketing strategy in place, take a look at our list of 12 cafe marketing ideas that can help give you some inspiration for specific tactics & promotions

Operations Plan

How are you going to run this thing?

Yes, you need to cover mind numbing details like:

  • Business structure - company, partnership, sole trader, etc)
  • Approvals / Registrations Needed – Development Approvals, Outdoor dining permit, etc
  • Trading hours
  • Opening date

But the big one for a cafe business is Location & Lease…

Location & Lease Strategy

how to make a cafe business plan

Now if you’ve already signed a lease there’s not a lot to see here. Just outline the detail of the site and the basic lease terms.

In your plan, include a basic shopping list for your ideal site. Here’s an example from the cafe business plan template We are seeking a 100-150m2 retail lease with street frontage. The site will have high passing foot traffic drawing from a mix of office workers & local residents.  We are seeking minimum lease terms of 3 years + a 3 year option to allow a return on investment.

You can something like this to talk with brokers & real estate agents. It gives both you and them something to focus your search.

how to make a cafe business plan

Who do you need to make this happen?

Ask any experienced cafe owner, the number one thing keeping them up at night is staff.

Now is the right time to think through who you need & what skills they need to bring. You should also make it clear what sort of hours & skills both you (and your business partners) are going to contribute.

how to make a cafe business plan

How much is it going to cost to get started? How are you going to make money after that? The plan should include a Profit & Loss Statement (also called an 'Income Statement') – ideally over 3 years. Budget for opening costs. Including fit-out, equipment, stock & working capital.Where the money is coming from. Savings, loans, leasing, your parents...

Yes,  forecasting sales  is hard, even hospitality veterans get it wrong, but it’s important that you try. You can start with benchmarks & examples from other cafe businesses (a sample is included in the business plan kit) – but it’s wise to run your numbers by people who have done it before. They can provide a reality check based on your plan and location.

Ready to find out more about opening a café? Check out our step-by-step guide to opening a coffee shop - or take a look at our guide to buying a cafe.

how to make a cafe business plan

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CAFE BUSINESS PLAN: How to Write With Templates & All You Need

  • by Folakemi Adegbaju
  • August 10, 2023
  • No comments
  • 8 minute read

Cafe business plan template

Table of Contents Hide

Why do you need a cafe business plan, tips for writing a cafe business plan, #1. executive summary, #2. business description, #3. industry research, #4. the marketplace, #5. swot analysis, #6. marketing plan, #7. financial plan, #8. operational plan, cafe business plan template, is a cafe a profitable business, how do i start a cafe idea, is it hard to open a coffee shop, how do you attract customers to your coffee shop, do cafes make money, how much does a cafe owner make a month, final thoughts, why do most cafes fail, what does a coffee shop owner do, what are the duties of a café manager.

The first step to a successful cafe is developing a business plan. Make sure your cafe business plan is prepared if you intend to pitch investors for financing because they will undoubtedly request to view it. This article discusses how you can write an impactful cafe business plan for your cafe, and it comes with a cafe business plan template checklist to help you arrange things accordingly.

Get the cafe business plan template

 Let’s start the journey.

What Is a Cafe Business Plan?

A cafe business plan is a simple way to show how serious and committed your business is. It outlines your devotion as a business owner and can be compared in order to gauge how successful your cafe is. It includes an executive summary, an overview, and a description of a coffee shop business, market data, marketing strategies, business operations, and financial plans, among other essential components of a solid cafe business plan.

A cafe business plan is not only necessary to keep your business on track for success, but it also demonstrates your commitment as a business owner. You can sketch out and examine all conceivable outcomes in your cafe business plan, from the advantages to the challenges posed by competitors. Without one, determining whether your company is flourishing might be difficult.

A cafe business plan gives your cafe shop a clear direction while also emphasising any obstacles and competitive businesses you may face. With this knowledge at your disposal, you may determine ahead of time what solutions you will require for any issues you might run into, thus increasing your chances of being a successful business owner.

You can now begin creating your business plan for a coffee shop. Here are some helpful suggestions to help you write more effectively:

  • Gather helpful materials to aid you in your writing. This can include how-to manuals, market studies, emerging trends, and real or hypothetical sample company plans. All of these can serve as your source of inspiration and be incorporated into the relevant areas of your cafe business plan.
  • Write as much as you can without censoring yourself. Once everything is laid out, you may decide which elements apply to which sections of your cafe business plan.
  • Avoid being too focused on a single piece. If you run into writing difficulties, make a note and move on to the next paragraph. When you have more knowledge or are more certain, you can go back and review it.
  • Every worthwhile thing requires time. Your cafe business plan will too. If it takes longer than you anticipated, don’t be concerned. You’ll be able to hone your message and articulate your ideas in a cogent and concise manner as time goes on and you continue to work on your plan.

How to Write a Cafe Business Plan

There are numerous approaches to writing a cafe business plan, and we provide important advice from subject-matter experts to get you started. This will help you write the perfect cafe business plan.

Although the executive summary should be the first section of your business plan, it should actually be the last section completed because it provides a summary of the entire cafe business plan. It should be no more than one page in length and is the most crucial section of your business plan. To help your audience save time, the goal is to outline the key ideas of the plan. If they wish to learn more, they can then go back and examine the portions that most interest them. Keep this section brief while still being inspirational.

Your cafe’s concept will be realized in this part. It’s important to give a thorough description of your business, including specifics like how the concept will look, where it will be located, and the type of atmosphere or brand you plan to establish. Your company’s description paints an accurate image of your mission and objectives.

This entails gathering in-depth information about nearby cafes, their average foot traffic, break-even points, and other important insights that can help you run your own cafe successfully. Determine possible locations by analyzing and making a list depending on your target market. The majority of cafes perform better in locations with heavy foot traffic, like malls or shopping centres. The site ought to be convenient for customers and reasonably close to your suppliers and vendors.

Determine possible locations by analyzing and making a list depending on your target market. The majority of cafes perform better in locations with heavy foot traffic, like malls or shopping centres. The site ought to be convenient for customers and reasonably close to your suppliers and vendors. The competitors you face should be mentioned in your cafe business plan.

You want to show in this area of the cafe business plan that you have done a comprehensive analysis of your target market and that you can show there is a market for your product or service. Analyzing your competitors’ strategies is a smart way to collect intelligence. Visit your competition, make notes about their menu items, marketing strategies, operational procedures, pricing, and brand positioning, and then do a thorough analysis of your results.

You can also inquire about the performance of local companies from residents in the neighbourhood where you intend to live. Your marketplace analysis will be realistic and more clearly depict how your business can succeed if you gather as much information as you can.

Strengths, Weaknesses, Opportunities, and Threats are referred to as SWOT. A thorough examination of the numerous aspects, including market- and regulatory-related changes, that may have an impact on how your cafe is run must be included in your cafe business plan. You can make sure that you are better equipped to manage risks by performing a SWOT analysis. It will also provide you with a greater understanding of the industry and enable you to better plan for unforeseen circumstances that can negatively impact your café.

If you don’t advertise your café effectively, it might not be profitable. You should therefore set aside money in your budget specifically for marketing. This should be mentioned in the cafe business plan to provide a thorough account of your marketing plan.

The financial plan is the most crucial part of your business plan for your cafe , especially if you require loan funding or are trying to convince investors to invest. Your financial strategy needs to show the expansion and profitability potential of your company.

For your cafe to be successful, you must have a solid operations plan. This needs to contain every component necessary for you to operate your café successfully every day. These would consist of:

  • Choosing the Right Employees: This is essential to running your cafe. All potential avenues for finding suitable staff should be covered in a thorough hiring plan, including recruiters, employee recommendations, and advertising in newspapers, job sites, or on other social media platforms.
  • The most important duty, after hiring the correct workers, is to train them. For your personnel to follow, develop Standard Operating Procedures (SOPs) and a training manual. Techniques for managing crises and disasters must be included in the training.

Download our cafe business plan template.

It is important to note that aside from having a business plan, there are more crucial steps to how you can start a cafe business. The essence of this cafe business plan template is to ensure that you follow all the necessary steps that can help you start your business. The checklist below will serve as a reminder. 

  • Create a concept
  • Select a name
  • Compose a business plan
  • Have financial projections
  • Approved legal aspects
  • Employ your management team
  • Promote your business
  • Provide your menu

Download our cafe business plan template .

Yes, a cafe business is a very profitable business. Depending on food production costs and other KPIs, most coffee shops turn a profit during their first few years of being in business. A cafe can anticipate a double-digit increase in sales by the fifth year. You should also budget carefully for unforeseen expenses, startup fees, and the costs associated with your first year of business.

Following the right steps when you are about to start a cafe business is very important. Succeeding in business will surely be easier once you follow the right steps. We’ve listed below some of the steps you can follow when you want to start your cafe business:

  • Define your vision.
  • Create a detailed business plan.
  • Choose a location.
  • Find the best suppliers.
  • So source commercial equipment.
  • Design your café
  • Create a menu.
  • Hire the right people.

Even though opening an independent cafe requires a lot of labour, the process doesn’t have to last for a very long time. You’ll position yourself for success early on if you concentrate on building these fundamental components while creating your cafe business plan.

What is the essence of your cafe if you have no customers or an overflow of customers? Here are some steps you need to take to attract customers to your coffee shop:

  • Look at your pricing.
  • Start a loyalty card program.
  • Run a competition, particularly if you can get the local press to give you coverage.
  • Tap up your suppliers for marketing materials
  • Consider branded takeaway cups

Cafes can have gross margins of up to 85%, but small cafés often have operating incomes of just 2.5% of gross sales on average. Despite the financial obstacles, if you create a cafe, you might discover that you’re doing work you enjoy and making a gathering place that serves as a focal point for your neighbourhood.

A modest independent coffee shop’s typical annual revenue is between £100,000 and £150,000, and 22% of all cafés and coffee shops reach this level. However, just 12% will earn more than £250,000, while only 5% have a turnover of £25,000 or less.

If you’re thinking about opening a cafe, the first thing on your priority list should be preparing a business plan. Keep in mind that you are preparing the way for success. As a result of having your finances in order, you’ll be able to save money and actually obtain funding from banks and investors. The general message you want to convey must be woven into your business plan.

Coffee shops close their doors for a variety of reasons, including weak management, insufficient revenue to pay expenses, unreliable staffing, poor customer service, and excessive debt.

The choice of what kind of coffee to sell at your shop is entirely up to you as the owner. You must also make sure that your brewing procedures are excellent. However, coffee cannot generate all of the sales by itself. In actuality, only around 40% of a coffee shop’s overall sales come from coffee.

Managers of cafés are in charge of day-to-day operations. In addition to ordering café supplies, they hire, train, and oversee café staff, handle client complaints, and make sure that food safety and health rules are followed.

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Coffee Shop Business Plan PDF Example

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  • February 23, 2024
  • Business Plan

Business plan template for a coffee shop

Creating a comprehensive business plan is crucial for launching and running a successful coffee shop. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your coffee shop’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a coffee shop business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your coffee shop concept into reality. Let’s dive in!

Our coffee shop business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the shop’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts.

  • Executive Summary : Offers a quick look at your coffee shop idea, market research, your team, and money plans.
  • Coffee Shop & Location: Talks about the design, special features, and why the spot is great for customers.
  • Operations: Describes how your shop runs daily, like hours, staff roles, and your menu items with prices.
  • Key Stats: Gives numbers on how big the coffee shop world is and what’s trending.
  • Key Trends: Points out new things in coffee shops, like eco-friendly practices or tech for ordering.
  • Key Competitors: Looks at other coffee places nearby and how your shop is different.
  • SWOT: Lists strengths, weaknesses, opportunities, and risks for your shop.
  • Marketing Plan : Ideas for getting the word out and keeping customers coming back.
  • Timeline : Major steps and goals from starting up to the first year.
  • Management: Highlights Info on your leading team and their roles.
  • Financial Plan : Predicts financials for 5 years, like how much you’ll make, spend, and keep as profit.

Business plan template for a coffee shop

Coffee Shop Business Plan

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary presents a concise overview of your coffee shop’s business plan, encapsulating the essence of your establishment and its offerings. It should articulate your market positioning, the variety of coffee and related products you offer, its location, size, and a brief on the daily operations.

This section should also delve into how your coffee shop will carve its niche within the local community, including an analysis of the number of direct competitors in the vicinity, identifying who they are, as well as highlighting your coffee shop’s unique selling points that set it apart from these competitors.

Moreover, information about the management and co-founding team should be included, elaborating on their roles and the value they bring to the coffee shop’s success. Additionally, a synopsis of your financial projections, including anticipated revenue and profits over the next five years, should be provided here to offer a clear view of your coffee shop’s financial strategy.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Coffee Shop Business Plan executive summary1

Dive deeper into Executive Summary

Business Overview

For a Coffee Shop, the Business Overview section can be neatly divided into 2 main slides:

Coffee Shop & Location

Talk about your coffee shop’s look and feel, highlighting cozy seats and nice lighting that make it welcoming. Mention its location, noting how easy it is to get there, like being close to shops or having easy parking. Explain why this spot is great for attracting customers.

Operations & Offerings

List the kinds of coffee and other items you sell, including snacks or light food. Discuss pricing, making sure it matches the quality of what you’re selling and suits your target customers. Share special features of your shop, such as using local products or offering unique coffee flavors. Mention any deals or events you have to keep customers coming back.

Make sure to cover here _ Coffee Shop & Location _ Operations

Business Plan_Fast Food RESTAURANT

Market Overview

Industry size & growth.

In the Market Overview of your coffee shop business plan, begin by exploring the size of the coffee industry and its potential for growth. This analysis is key to understanding the breadth of the market and pinpointing opportunities for expansion.

Key Market Trends

Next, discuss current trends in the coffee market, like the growing demand for specialty coffee, the appeal of ethically sourced and organic beans, and the innovation in coffee brewing techniques. Highlight the interest in offerings that cater to diverse preferences and dietary needs, such as plant-based milk options and artisanal blends, as well as the increasing importance of sustainability in the coffee industry.

Key Competitors

Then, examine the competitive landscape, which encompasses a variety of coffee shops from high-end specialty cafes to more affordable, convenient options, as well as the rise of home brewing. Focus on what sets your coffee shop apart, whether it’s through top-notch customer service, a unique selection of products, or expertise in certain types of coffee. This section will underscore the demand for coffee shop services, the competitive atmosphere, and how your coffee shop is well-placed to succeed in this vibrant market.

Make sure to cover here _ Industry size & growth _ Key market trends _ Key competitors

Coffee Shop Business Plan market overview1

Dive deeper into Key competitors

Start by doing a SWOT analysis for the coffee shop. Point out Strengths (like skilled baristas and a variety of coffee options), Weaknesses (such as high running costs or lots of competitors), Opportunities (for instance, more people wanting unique coffee experiences), and Threats (like economic changes that might reduce how much people spend on coffee).

Marketing Plan

Then, make a marketing plan that shows how to draw in and keep customers. This could include ads aimed at the right people, deals to save money, an active and interesting online presence, and getting involved in the local area.

Lastly, set up a detailed timeline that marks important steps for the coffee shop’s start, marketing actions, growth in the number of customers, and goals for getting bigger. Make sure there’s a clear plan and goal for moving the business forward.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

how to make a cafe business plan

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the coffee shop’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the coffee shop toward its financial and operational goals.

For your coffee shop business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Coffee Shop Business Plan management1

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your coffee shop’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your coffee shop business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Coffee Shop Business Plan financial plan

Privacy Overview

how to make a cafe business plan

Complete Guides to Write Cafe Business Plan Step by Step

Great cafes combine exceptional coffee, a welcoming environment, and delectable treats to snack on while relaxing. The cafe is a low-risk business model with lower start-up costs and overhead than larger restaurants, but carving a niche for your cafe in the market and charting a path to success are critical considerations. There’s probably another cafe nearby, so how will you stand out? That’s why you need a cafe business plan. 

How to Write a Cafe Business Plan?

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The steps below will show you how to create a business plan that will help your cafe succeed.

Begin with Your Vision

how to make a cafe business plan

A business plan is the first step toward making your cafe-ownership dream a reality, so dream big by sketching out your vision for your future cafe or coffee shop. What will the design of your cafe be? What kind of decorations will be used? What will its location be? Which items are you planning to sell? Who will go there? 

Take inspiration from your favorite cafes, images you’ve seen, favorite films or books, and even your travels. Then write it all down or pin it to a wall to make an inspirational mood board. It will be extremely motivating to look up at your initial vision and be reminded of the finish line as you spend hours working on your business proposal about coffee shop.

Research on Other Business Plans

how to make a cafe business plan

Before you start writing your masterpiece, look at business plans from your industry, such as cafes, coffee shops, and quick-service restaurants. Examine how they structured their business and ensure that your cafe is on the right track.

Real-life cafe business plan examples from small business owners are also extremely valuable. Find current or former coffee shop owners, or even franchise owners, in your area and ask them how they succeeded and what they would do differently. 

While you’re at it, ask for recommendations for someone like an accountant to help you write your coffee business plan. Even if your future competitors are local business owners, they may be willing to share their experiences.

Creating a Business Plan Template

how to make a cafe business plan

A blank page can be intimidating, but there are numerous cafe business plan samples available online to assist you in getting started. Below already outlined the basic sections you should include in your business plan below, along with additional tips on how to flesh each one out.

The Executive Summary

how to make a cafe business plan

When a reader opens your business plan, the executive summary will be the first thing they see. This provides a high-level overview of all of your business plan’s sections. A well-written executive summary coffee shop will get you in the door, so read an example of business plan about coffee shop to get a sense of how the summary is worded and how all of the information is presented. There are a lot of cafe description samples to help you.

Consider who will read your business plan and tailor the opening paragraphs to your audience, just as you did for the customers who will visit your soon-to-be-opened cafe. Your executive summary is the most important marketing tool your cafe has as you prepare to open.

Read also: 3 Social Media Marketing Tools to Help Your Campaign Succeed

How will Your Cafe be Successful?

how to make a cafe business plan

The second section provides answers to questions such as “What problem does your cafe solve?” and “How will your cafe contribute to the solution?” Perhaps there isn’t a coffee shop or cafe in a busy shopping center near you. Perhaps a downtown restaurant has recently closed.

This summary gives a quick overview of your industry, where your cafe will be located, and how it will stand out. Will your airport-area shop specialize in breakfast sandwiches? Do you want to sell your famous local pie? You’ve envisioned the success of your future cafe. Make certain that the readers of your business plan understand this as well.

Examine Your Competition

how to make a cafe business plan

The following section of your business plan is known as the competitive analysis. It explains how your cafe will compete with other food and beverage businesses. Your competitors include nearby restaurants, coffee shops, and even public gathering places such as movie theaters. So now is the time to conduct competitor analysis coffee shop by visiting potential competitors and noting who their customers are, what’s for sale, and how much it costs.

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Understanding pricing strategies for similar businesses will help you determine how much you should charge for your coffee, pastries, sandwiches, and whatever else you’re selling in order to remain competitive in your market. Cafes and coffee shops can have high gross margins, but small cafes have notoriously low operating incomes (profits) due to high overhead costs.

However, if you take the time to conduct a thorough analysis of your competition, your cafe will have a better chance of success. By describing how your cafe will compete with similar businesses, you will persuade your reader (and, more importantly, yourself) that your goal of opening a restaurant or cozy cafe is both realistic and sustainable.

Examine Your Target Market

how to make a cafe business plan

Your future customers are known as your market in your business plan, the number of potential customers is known as your market size, and how you’ll reach them is known as your marketing plan.

In your cafe or restaurant business plan , you will then divide your market into market segments. If your coffee shop or cafe is near an elementary school, for example, a market segment could be parents or caregivers who stop by for high-end coffee after dropping their children off at school. Or college students sipping espresso while studying for exams.

You can zero in on how to reach each type of customer by segmenting your market. As part of your market analysis coffee shop, your marketing plan (how you will advertise to your target market) will be outlined in your business plan.

What You Intend to Sell and How You Intend to Sell It

how to make a cafe business plan

Now that you know what your competitors charge, you can develop a pricing strategy for your cafe. Be clever when developing your menu and pricing. Because you’ll be buying in bulk, try to use the same ingredients in a variety of dishes. 

Don’t be afraid to experiment. If you charge less for a croissant and coffee combo than for those items separately, you will encourage customers to buy more and reduce food waste. You’ll almost certainly end up changing your menu once you open for business. 

However, for the purposes of a business plan , you’ll need to know how much you intend to charge for the coffee or soup you intend to sell, which you’ll figure out by breaking down the ingredients required to make each item and researching your competition.

Make a Marketing Strategy

how to make a cafe business plan

Your marketing plan can be integrated into your sales plan or a separate section. Will you post your specials on social media every morning? In addition to marketing, this is a great section to explain your plans for customer retention. It’s easier than ever to reward and keep the customers who will frequent your cafe with a cafe point of sale system.

Read also: 6 Examples Marketing Mix Example Coffee Shop Business

Structure of Ownership

how to make a cafe business plan

Your company’s ownership structure will be included in your business plan. Explain how much experience you and your partners have and why you’re the right person (or people) for the job.

Your Business Strategy

how to make a cafe business plan

Include information about your facilities, employees, equipment, and supplies in this section. Consider the direct costs of rent, barista wages, coffee beans, and technology. Try to squeeze as many services as you can out of a single tool, such as a POS system that allows your customers to check out, your part-time employees to clock in, and your cafe’s inventory to be managed.

Estimate how frequently you’ll need to replenish ingredients like flour and eggs. Consider your operating costs carefully during the business planning stage. Wherever possible, save money and don’t skimp on essentials like your espresso machine.

Planning Your Finances

how to make a cafe business plan

You are now ready to create a financial plan coffee shop. This is typically the most time-consuming and crucial section of your business plan, particularly for lenders and investors. It should contain a summary of your startup costs, an income statement, projected cash flow, a balance sheet, and a break-even analysis.

Though creating a business plan may appear difficult, keep in mind that it is an important step to take before opening a cafe. A cafe can be successful is proven by a well-thought-out business plan.

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How to Write a Food and Beverage Business Plan + Sample Business Plan PDF

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Elon Glucklich

7 min. read

Updated February 17, 2024

Free Download: Sample Food and Beverage Business Plan Templates

The food and beverage sector is booming. Restaurant openings rose 10% in 2023 compared to 2022 — even higher than in pre-pandemic years.

From fine dining to food trucks, farmers to brewers, and wholesalers to coffee makers, there are opportunities across the food and beverage industry. 

But starting a business without covering the basics — your operations plan, marketing tactics, financial strategy, and more — carries huge risks. 

That’s why we recommend you write a business plan.

  • Why write a food and beverage business plan?

Writing a business plan is an easy first step that you can start for free. Plus, businesses that take time to plan are significantly more successful than those that don’t.

Many food and beverage establishments fail because of one of the following:

  • Poor inventory management
  • Underestimated expenses
  • High employee turnover
  • Misjudged the size of their market

Writing a business plan can help you:

  • Develop processes for managing inventory and logistics
  • Understand your cash flows and create a realistic expense budget
  • Budget for competitive employee pay that increases worker retention
  • Analyze your competition and determine how big your market is  

If you’re looking for funding from investors for your business, you’ll definitely need a business plan.

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  • How to write a food and beverage business plan

Many business plans follow a standard format and you can use it as a starting point when writing your own plan. Here’s what that includes:

Executive summary

  • Company summary and funding needs
  • Products and services
  • Marketing plan
  • Management team

Financial plan

For food and beverage companies, you must give extra attention to your market analysis, operations plan, and financial forecasts.

If you’re ready to start, download a free business plan template and fill it out as you read this article.

A sample business plan outline for a food and beverage business.

Every business plan should include an executive summary . It’s a brief outline summarizing the plan, no more than one or two pages.

We recommend that you write the executive summary last after fleshing out the details of your plan. 

Just summarize the vision for your business, describe your offerings and target market , and touch on your management team and financials. Don’t go into tons of detail — just provide a high-level sense of what you want your business to accomplish.

Opportunity: problem and solution

This section of your food and beverage business plan describes the opportunity you hope to capture.

Maybe you’re a farmer looking to diversify your revenue streams by distributing to grocery stores. Or a bar owner with high-end liquor that competitors in the market aren’t serving. 

Whatever your business is, describe the gap in the market and how you aim to fill it.

If you’re operating a more common type of business, like a restaurant , you can probably keep this section short. But it’s useful to document what makes your business unique and it will help focus your sales and marketing efforts later on.

Market analysis

In a field as crowded with competitors as the food and beverage space, a detailed market analysis is essential. 

Your focus should be on identifying the specific customer segments you aim to serve. 

Maybe you’re a butcher with connections to fresh livestock. Will you be more successful selling directly to consumers, or should you focus on selling to grocery stores and markets in your area?

Or, you’re opening  a diner. Should your menu focus on healthy meals or easy-to-make child-friendly options?

These are the types of questions that market research helps you answer. This section should detail the defining characteristics of your target market, including the demographics and preferences of your ideal customer and the size of the market you’re targeting. Market research questions specific to a food and beverage business could include:

  • Business location and characteristics
  • Area income
  • Local food and beverage preferences
  • Existing food and beverage options 

Elaborate on how your food and beverage offerings align with that target market ’s needs. Remember, you can’t please everyone, so focus on a specific group of people or type of person and build out from there.

Marketing and sales

For food and beverage businesses promotions are how you stand out and seize a share of your market.

The marketing and advertising chapter of your business plan is where you’ll detail your strategies for capturing the attention — and loyalty — of the customers you identified as your target market in the previous section.

With so many options for consumers in the food and beverage space, you’ll likely have to rely on multiple marketing channels , including::

  • Advertising on websites, television, and in relevant publications.
  • Content marketing — developing an engaging website and writing blog content that’s search engine optimized to drive traffic to your site.
  • Engaging with your customers on social media.
  • Offering discounts and customer loyalty programs.
  • Appearing at food and beverage industry trade shows and community events.

It doesn’t matter how delicious your recipes are, how fresh your crops are, or how innovative your cocktails are — if you don’t operate efficiently, your business probably won’t last long.

The operations strategy may be the most detailed section of your business plan, especially if you’re writing it for a bank loan or investment. This section describes how you will run your business day to day.

When writing the operations section, describe the following:

Physical space

Whether it’s a restaurant, a farm, or a food transportation business, describe the space you’re operating in, and all of the physical assets and equipment you’ll need to be successful. 

If it’s a sit-down restaurant, consider including a floorplan mockup in your appendix.

Supply chain 

List the suppliers and partners that get your product to customers. Think about the businesses you purchase ingredients from, the warehouses that goods are stored in, and the trucking companies that deliver your products to grocery stores. 

These are your supply chain partners. It’s crucial that you maintain good relationships with them.

Production processes

How long it takes to make your product, and what materials and equipment are required. Documenting how you produce your goods or services demonstrates that you understand the costs of making them. 

You may also uncover ways to produce them more quickly, or at a lesser cost.

Detail how you’ll handle matters of efficiency like order fulfillment, storage, shipping, and returns, as well as customer satisfaction. If you provide delivery services, document how you will handle the process of getting your product to customers’ homes or businesses.

List your staffing needs, training, and experience requirements for key staff. Also, document the management structure of your business. 

This helps ensure that important tasks you don’t have time to monitor are being done and that workers are being supervised.

Describe investments in payment processing systems, inventory management software, and other tools that support sales or operations in your business. Cataloging your technology systems will help you determine where it might make sense to invest in upgrades for efficiency.

Take some time to write a financial plan . Create detailed financial projections, including sales , expenses , and profitability .

If that sounds intimidating, take a deep breath, and remember that financial forecasts are really just best guesses. If you’re running an existing business, you can start with your previous year’s numbers. If you’re starting, make an educated guess about where you hope to be financially a year from now.

Investors will want to see a: 

  • Sales forecast
  • Income statement (also called a profit and loss statement )
  • Cash flow statement
  • Balance sheet 

If you use a tool like LivePlan , you’ll be able to build out your financial forecasts relatively quickly, even if you don’t have experience with business numbers.

Even if you aren’t seeking investment, the financial plan is crucial for understanding the viability of your business. It allows you to adjust your business model based on projected performance, and make informed decisions about where to spend your money.

  • Food and beverage business plan templates and examples

If you want to see how other food and beverage businesses have created their plans, check out our free library of food and beverage business plans . 

You can download all of them in Word format and jump-start your own business plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Elon Glucklich

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Check out LivePlan

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How to Start a Play Cafe

Home Blog Play Areas How to Start a Play Cafe

How to Start a Play Cafe

Cafes no longer have to only serve coffee and tea drinks to draw people in. A variety of additional services attract customers to new coffee shops. One of these options is a play cafe that includes an indoor play area for kids to use while adults supervise nearby and enjoy the cafe’s food and drinks.

Before diving into creating your own play cafe, you need to create a business plan and choose equipment options for the play area. With careful planning, you can see the opening day for your play cafe!

Table of Contents

What Is a Play Cafe?

  • Benefits of Play Cafes

Examples of Playgrounds for Play Cafes

Steps for starting a play cafe business, what kind of playground equipment do you need.

  • How Soft Play® Can Help You Start Your Play Cafe

A play cafe gives caregivers and their kids a place to socialize, enjoy tasty food and drinks, relax, and meet new friends. Outdoor playgrounds are often a place for caregivers to bring their kids to play, but these sites are not available during rainy, very cold or very hot weather. Play cafes provide a solution for adults with kids to meet other caretakers and have a climate-controlled place for their kids to play throughout the year and in any weather.

While traditional cafes typically cater to adults without kids, play cafes welcome kids and the adults who care for them. Cafes for all ages welcome the energy kids bring to a play area. So, caretakers who visit will feel comfortable bringing their kids to these family-friendly destinations.

In a play cafe, you will find all the elements of a cafe plus an indoor playground for kids to enjoy. When creating one of these businesses, you will need to first focus on all the elements of having an attractive cafe with food and drinks. Then, you can design a play area that meets the needs of the ages of kids who come to the site. For example, if you want a toddler-focused cafe, advertise as such and offer play elements for younger kids. If you want to cater to kids over 5, you will need equipment designed for the play needs of those older kids.

While a play cafe has multiple factors to consider when building, the reward will be a location where kids and caretakers in the community can come together.

Gain year round clientele

Benefits of Play Cafes & Indoor Playground Equipment

Play cafes provide several benefits over traditional cafes or outdoor playgrounds. Combining a play area for kids with food and drinks for their caregivers can net you the following perks:

1. Gain Year-Round Clientele

Outdoor playgrounds can get too hot during the summer, too cold in winter or too wet to play during rain or snow events. Your indoor play cafe will give you a place to provide kids in the area with a place to play all year long. During cold weather, kids and adults can enjoy hot chocolate or other warm beverages, and they can get lemonade or other cooling drinks during the summer from your cafe.

2. Offer Food and Fun in One Spot

Restaurants frequently have indoor playgrounds because they combine the convenience of a place to eat and relax with the fun of an indoor play area. Attract customers with your delicious offerings and encourage them to come back with an enticing play space. Or, use the playground as a way to attract visitors who will then purchase drinks and snacks.

3. Encourage Active Lifestyles for Kids

Indoor play keeps kids active all year long. Your play cafe encourages kids to see activity as a fun way to spend time. They can become more physically fit and develop mind-space coordination when they engage in active play.

With an indoor play area, kids and their caretakers can learn that just because weather conditions may keep them indoors does not mean that they have to stay on their phones or play video games all day. Your play cafe can serve as a healthier alternative to screen time that keeps kids active.

Create social connections

4. Create Social Connections

Kids and their caregivers should have places to go where they can form social connections. When kids visit your play cafe, they can make friendships with people outside their typical social circle. This widening of friendships can boost their ability to communicate with others and build their social skills.

Caregivers, too, can find others with kids to talk to while they supervise their youngsters in your play space. With the casual atmosphere of a cafe, adults have the chance to also relax and build friendships.

5. Have a Standout Business That Offers Something Different

Play cafes exist around the world, but they are not in every community. By opening one, you will likely offer your neighborhood something it does not have. With such a unique cafe offering, you will stand out from your competition as both a play destination for kids and a cafe for the community.

Several play cafes have successfully opened across the United States. The following are some ideas from existing play cafes that encourage kids to come and play for you to take business inspiration from:

Separate toddlers & older kid play areas

Separate Toddlers and Older Kids With Dedicated Play Areas

Daycare centers and schools keep kids 4 and younger in a separate group from their older peers. Some play cafes do the same to protect both groups of kids and encourage each age set to have more fun.

One example of a play cafe creating different spaces for younger and older kids is the Bumblebee Play Cafe in Elgin, Illinois. This play cafe provides visitors with  different play spaces for babies, toddlers and older kids. Separating the kids into different play spaces lets smaller kids use play structures suited better to their smaller sizes. Older kids don’t have to worry about younger kids getting in the way of their play session, either.

Provide Stations for Quieter Play

Not all kids will want to immediately engage in active play on a playground structure. While your indoor play area will serve as a major attraction for your play cafe, remember to include places for kids to relax and have quiet fun. At Kidcadia Play Cafe in Dearborn, Michigan, the attractions include toddler and older kid play structures  plus imagination stations . These stations feature a board with neon-colored markers, sensory boards along a wall, a giant light board with colored pins to arrange and tables for drawing.

Host Parties

Don’t forget that your play area will attract kids. Offer birthday parties to reach more kids and their caregivers. This is one strategy that The Village Play Cafe in Chatham, New Jersey, uses. They offer  birthday party packages  to make planning a party easier for caretakers. These packages provide food and drinks from the cafe and playtime on the indoor playground. The Village Play Cafe has extra party hosts for each event, so if you choose this option, include staff members to handle the booking and hosting of parties.

Use Wristbands for Adults

Depending on the size of your indoor play area, you may need to plan how to keep track of adults who come with kids. One site, Cafe O’Play in Stow, Ohio, regulates who can enter the play area by  giving caregivers a wristband  to show that they are accompanying a child into the play zone. Kids without an adult cannot enter the play area, and adults without a wristband can’t go into the play space. This regulation ensures each child has a responsible adult to supervise them while in the play area.

Some indoor play locations also give kids and their caregivers corresponding wristbands with a matching code on them. You can then have a staff member check that a caregiver and a child leaving your location have matching wristbands.

Add seating next to the play area

Add Seating Next to the Play Area

Be sure to require adult supervision of all kids in the play area — caregivers should keep a close eye on their kids as they play. To make supervising kids easier on adults, the Outlets at Tejon in California uses  stools and counters surrounding the play area .

This outlet center placed its play area next to the food court, creating a similar arrangement to that found in a play cafe. The counters offer adults a place to enjoy their food and drinks while keeping their kids on the indoor playground within sight.

If you feel ready to open a play cafe, you need to do a lot of planning before you can open the doors. With good planning, you can increase the chances of success for your business by meeting the specific demands of kids and their caregivers in your community for a place to socialize, dine and play.

1. Begin With Market Research

Start market research to find out whether a play cafe will work in your community. You need to know who lives in the area and the existing cafes where you want to open because your success depends on it. For example, if you want to open in an area with a large demographic of single, childless adults, you may not have as much success as opening in a suburb filled with families. Similarly, don’t open a play cafe near another play cafe.

Put together a business plan

2. Put Together a Business Plan

Decide how you want to run your business. This involves  creating a business plan  and thinking through some other aspects of your business, like:

  • Target audience:  First, choose the ages you want to target. For instance, do you want to focus on playtime for toddlers and their caregivers or school-aged kids up to 12?
  • Theme and branding:  You can also pick a theme for your play cafe. The theme could be a topic, such as fantasy, or a color scheme. Since you will use this design throughout your play cafe to unify the different areas of the site, choose it carefully.
  • The menu:  You may change menu offerings over time, but you should choose your initial offerings because they will determine the type of equipment you need. For example, if your play cafe will serve ice cream, you need freezers to store the ice cream safely. Do you want to have espresso drinks and a variety of teas? Include an espresso machine in your business plan.
  • Funding and financial projections:  How will you fund your play cafe? Do you have personal savings to take care of all the costs? If not, you may need to get a small business loan to help you start your operation. You’ll need a description of how you’ll use those funds and your projections for your cafe.
  • Location:  You’ll also want to know where your business will be. Choose a site to purchase or lease for your play cafe. Leasing may have a lower upfront cost, but you will continue to pay throughout your tenure. Make sure to have space for both food and drink preparation and a play area. The site should also be easy to access to encourage more people to come.
  • Legal logistics:  Other factors of your business plan include purchasing insurance and finding out about local permits you need to serve food and drinks or have kids playing on your property.

3. Purchase Your Equipment

Once you’ve finalized your plan, you need to purchase equipment to run your operation. Because your play cafe will have both indoor playground equipment and a kitchen for serving customers, you will need to include all these components in your supplies. The kitchen equipment will depend on your menu.

Source a provider for your food and drinks at this stage. Do you want to sell locally-produced teas and coffees? Find a company willing to work with you, and you may benefit each other through mutual marketing. What about snacks? Do you want to serve chef-prepared foods or simple dishes that most employees can quickly make?

More complex menus will require more equipment in the kitchen such as ovens and stoves for cooking. Simple foods, such as sandwiches, may only require toaster ovens to prep.

Don’t forget about serving ware. Will you serve on reusable dishes? If so, you may need to invest in a larger dishwasher to handle the extra utensils and dishes. If you choose disposable serving ware, consider the investment in the products you will need to make each month.

We’ll go over the play equipment you may need for your cafe in more detail shortly.

4. Hire Your Employees

Staff your play cafe with trustworthy employees who know how to give kids and their caregivers excellent customer service. If you will have parties, consider having host positions on staff for the events. You may need a cashier to handle play area fees and food orders, cooks for preparing foods, and drink makers for preparing coffee and tea orders. You should train all staff to handle working with kids and in their respective roles before you open your shop and conduct the appropriate background checks.

5. Open the Shop

Host an opening day for your play cafe. You may want to offer discounts on opening day to encourage people to try your venue and spread the word. Ideally, they will market your play cafe to their friends through recommendations and the money that you lose through opening day discounts will come back through increased visitors over time.

Be sure to advertise opening day through local businesses, local media outlets and social media to get the word out.

6. Market Your Business

Keep marketing your business. You will constantly have new people move into the area or travel through as tourists who may not know about your play cafe. Promotional events, ads with local publications and television stations, a quality website and a regularly updated social media presence can help you build your play cafe business.

The type of playground equipment you use for your play cafe is up to you. Find equipment to fit into the amount of space you have and meet the needs of the ages you serve. The following are common types of indoor play equipment you can choose from for your cafe’s play area.

Small play areas

Small Play Areas

Many play cafes start out as small businesses that don’t have as much real estate as larger facilities. Feel free to start your cafe with a small play area. These  small footprint structures  provide you with a budget-friendly option that doesn’t require a lot of space.

Customizing your small play area gives you the greatest control over the features. One type of popular small structure to customize is the ATOM. While small,  the ATOM packs multiple ways to play  into the space it uses. Features on the ATOM include musical drums, a diamond obstacle course to the second level, slides, a hammock, a sit-and-spin, ripple platform and a scoop climber.

Wonderscapes  offer another way to include both play structures and sculpted foam in a compact space. With four themes available, options include Safari Adventure, Garden Discover, Nautical Quest and Woodland Escape. Each theme includes a specific color palette and animals in its prepared design. Choosing Wonderscapes is one of the fastest ways to pick out a playground for your play cafe.

Soft Sculpted Foam

To make your playground fun and colorful, consider the perks of  soft sculpted foam . These pieces appeal to the eye by coming in a variety of designs. You have choices from whimsical animals and characters to abstract designs and semi-realistic sculptures. Adding these pieces gives kids places to climb on while sparking their imaginations. They are ideal additions to toddler play areas because their size works well with smaller kids.

Traditional playgrounds

Traditional Playgrounds

Traditional indoor playgrounds  are another option you can choose for your play cafe. These play structures have sizes that can fit almost any space you may have.

As with small play areas, classic playgrounds come in a variety of prerendered designs. The difference is the sizes of these traditional indoor play structures. They are larger than small play areas, with two or three levels for kids to play on. Choose from one of the prerendered options for your play cafe’s structure or get inspiration from the designs to customize your own.

Large Play Structures

If you have the space and funds to dedicate to a large play structure, choose from one of  the large attractions  available. These structures have multiple layers and immediately draw the eye to their size and features.

This type of structure could even be an upgrade after you experience some success and profits with your play cafe after opening. Upgrading to a large play structure lets you allow more kids in the play area at a time, expanding your cafe’s overall capacity.

Customize your large play structure to fit into your cafe. You can choose a long, low design that has a rectangular structure for use along a wall. Alternatively, you may choose a tall structure with a smaller footprint to fit into a corner.

Themed playgrounds

Themed Playgrounds

If your play cafe will have a theme, include a  themed playground  to match. When it comes to themes, you have several options of prepared choices. Plus, you can customize your own.  Existing themed playgrounds include candy land , medieval, kid’s clubhouse, train station, clock tower, ski resort, airport, fruit town, farmland and under the sea.

Install a themed playground in your play cafe to let kids’ imaginations run wild and create a design background to build on for your cafe’s marketing.

How Soft Play ®  Can Help You Start Your Play Cafe

Make your play cafe stand out with colorful indoor playground options that fit your space and budget limitations. With Soft Play, you get a free design consultation to help you find the right equipment for your new play cafe. Since 1984, we’ve worked to innovate the indoor playground. Today, Soft Play playgrounds are in  60 countries around the world  and restaurants across the United States.

Build your indoor playground and cafe experience today with us at Soft Play. Contact us for a design consultation  or  request a quote if you know the products you want for your playground in your coffee shop.

How Soft Play Can Start Your Play Cafe

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how to make a cafe business plan

how to make a cafe business plan

Delivering Copilot for everyone

Feb 7, 2024 | Yusuf Mehdi - Executive Vice President, Consumer Chief Marketing Officer

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Three screenshots of Microsoft Copilot

As we approach Super Bowl weekend, we’re thrilled to be a part of the festivities for the first time in four years. This year, we’re proud to celebrate the transformative power of AI and Microsoft Copilot, showcasing peoples’ “watch me” moments with Copilot enabling people to do things previously unattainable. With a simple sentence or two, you will see a budding entrepreneur turn a fledgling idea for a new product into an actionable business plan, a filmmaker’s concept into a rich set of storyboards, and a fantasy football player’s team come to life with a mascot image they can edit inline.

Coincident with the launch of our Super Bowl ad , we are also launching a significant new update to our Microsoft Copilot experience on copilot.microsoft.com and our Copilot app on iOS and Android app stores.  Today when you visit Copilot, you will see a more streamlined look and feel designed to help you bring your ideas to life and more easily gain understanding about the world. We have introduced a cleaner, sleeker look and feel for answers and a fun new carousel of suggested prompts to showcase the power of Copilot.

Today marks exactly one year since our entry into AI-powered experiences for people with Bing Chat. In that year we have learned so many new things and seen the use of our Copilot experiences explode with over 5 billion chats and 5 billion images created to date which have led to sustained growth in Edge and Bing share. Now with Copilot as our singular experience for people looking to get more out of AI creation, we are today introducing further image creation capabilities.

With Designer in Copilot, you can go beyond just creating images to now customize your generated images with inline editing right inside Copilot 1 , keeping you in the flow of your chat. Whether you want to highlight an object to make it pop with enhanced color, blur the background of your image to make your subject shine, or even reimagine your image with a different effect like pixel art, 2 Copilot has you covered, all for free.  If you’re a Copilot Pro subscriber, in addition to the above, you can also now easily resize and regenerate images between square and landscape without leaving chat. Lastly, we will soon roll out our new Designer GPT inside Copilot, which offers an immersive, dedicated canvas inside of Copilot where you can visualize your ideas.

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Copilot is free to use and works on Microsoft Edge, Chrome, Firefox and Safari. Or download the Copilot mobile app on iOS or Android .

AI is the defining technology of our time. Microsoft’s advancements in AI align with our company mission to empower every person and organization on the planet to achieve more. With Copilot, we’re democratizing our breakthroughs in AI to help make the promise of AI real for everyone.

1 Available in English in the United States, United Kingdom, Australia, India and New Zealand.

2 15 daily boosts included in Copilot, 100 daily boosts with a Copilot Pro subscription to be used for creative needs, faster image generation, and more detailed images.

Tags: AI , Copilot Pro , Microsoft Copilot , Microsoft Designer

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how to make a cafe business plan

IMAGES

  1. The Business Plan for Your Cafe

    how to make a cafe business plan

  2. Coffee Shop Business Plan Template Sample Pages

    how to make a cafe business plan

  3. 40 Coffee Shop Business Plan Template

    how to make a cafe business plan

  4. The Coffee Shop Business Plan

    how to make a cafe business plan

  5. FREE Restaurant Business Plan Template

    how to make a cafe business plan

  6. ️ Business plan cafe. How to Start a Cafe: 13 Steps (with Pictures

    how to make a cafe business plan

VIDEO

  1. Cafe Business Ideas #cafebusiness #cafeteria #ownbusiness #selfmotivate

  2. Cyber Cafe Full setup in side view 2023 साइबर कैफ़े के लिए जरुरी सामान 2023

  3. How to make Cafe Style Coffee at home #cooking #food #recipe #coffee #nescafe

  4. Cafe Business plan

  5. How to make cafe caremal #Coffee#trending #barista #viral #youtube

  6. Starting a Coffee Shop

COMMENTS

  1. How to Write a Business Plan for Opening a Cafe

    Section 1: The executive summary Section 2: How will your cafe business succeed? Section 3: Study your competition Section 4: Analyze your target market Section 5: Tell us what you'll sell and how you'll sell it Section 6: Create a marketing plan Section 7: Ownership structure Section 8: Your operations plan Section 9: Financial planning

  2. How To Start A Coffee Shop (2024 Guide)

    Create a Business Plan Having a business plan is important. It's similar to a map, helping you get from point A to point B.It's also essential if you are seeking a loan or investment. You...

  3. How to Write a Cafe Business Plan

    Operations How to Open a Coffee Shop: Starting a Coffee Shop Business Steps Thinking of opening a coffee shop? Here's a checklist and the average cost to start a cafe. Read more Menu + Food Different Types of Coffee and Espresso Drinks Operations How to Open a Coffee Shop: Starting a Coffee Shop Business Steps Accounting

  4. How to Start a Cafe: 13 Steps (with Pictures)

    1 Write a business plan. No matter what type of small business you intend to open, a written detailed business plan is an essential first step in the process. A good business plan analyzes your business, its market, and its plan going forward for several years. It is essentially your "road map" to success.

  5. Cafe Businesses Guide: 12 Key Components of Cafe Businesses

    From food saféty to general health and wellness, businesses-especially businesses serving food-have a lot of rules to follow. 6. Build Your Menu Plan. Choosing your menu types and offerings is a vital part of your business plan and café plan in general.

  6. Cafe Business Plan Template and Guide [Updated 2024]

    Your cafe business plan should include 10 sections as follows: Executive Summary Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan. The goal of your Executive Summary is to quickly engage the reader.

  7. How to Open a Cafe: The Ultimate Guide

    Follow the writer MORE LIKE THIS Small-Business Loans Small Business Starting a cafe is no small endeavor, but anyone who appreciates the Parisian way of life can tell you how integral a...

  8. How to write a coffee shop business plan

    A well-crafted business plan helps entrepreneurs articulate their business goals, whether it's about offering unique coffee blends, creating a cozy ambiance or supporting sustainable sourcing practices. At the same time, a business plan requires entrepreneurs to identify and understand their target audience. This insight helps tailor marketing strategies, menu offerings and the overall ...

  9. How to Write a Business Plan For Opening a Cafe

    Start With Your Vision A business plan is the first step in making your cafe-ownership dream a reality, so take time to dream by laying out your vision for your future cafe or coffee shop. What will your cafe look like? How will it be decorated? Where will it be located? Which items will you sell? Who will frequent it?

  10. How to make a café business plan that works

    How to make a café business plan that works Create your cafe and coffee shop business plan template here. Learn how to start your business, with specialist advice and resources from Sage. Tim Cooper 30 March, 2021 10 min read Leave a comment

  11. Cafe Business Plan Template (2024)

    Develop A Cafe Business Plan - The first step in starting a business is to create a detailed cafe business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

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

    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.

  13. Cafe Business Plan

    1. Cafe Business Plan Financial Template Details File Format Word Google Docs Apple Pages PDF Size: 25 KB Download 2. Cafe Business Plan Template deathcafe.com Details File Format PDF Size: 1 MB Download 3. Cafeteria Business Plan nbsbenefits.com Details File Format PDF Size: 550 KB Download 4.

  14. How to Write a Coffee Shop Business Plan (with Templates)

    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.

  15. How to write a business plan for a café?

    What information is needed to create a business plan for a café? How do I build a financial forecast for a café? The written part of a café business plan What tool should I use to write my café business plan? Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.

  16. How to Start a Cafe Business in 14 Steps (In-Depth Guide)

    2. Analyze the Competition Competitive analysis is an important part of building a business. It helps you assess your pricing structure, build a thorough business plan, and develop services and products based on successful coffee shop ventures. Some ways to learn more about other coffee shop owners include:

  17. How to Write a Cafe Business Plan

    Branding & Store Design Strategy Once you've got the fundamentals of your marketing strategy in place, take a look at our list of 12 cafe marketing ideas that can help give you some inspiration for specific tactics & promotions How are you going to run this thing? Yes, you need to cover mind numbing details like:

  18. CAFE BUSINESS PLAN: How to Write With Templates & All You Need

    How to Write a Cafe Business Plan #1. Executive Summary #2. Business Description #3. Industry Research #4. The Marketplace #5. SWOT Analysis #6. Marketing Plan #7. Financial Plan #8. Operational Plan Cafe Business Plan Template Is a Cafe a Profitable Business? How Do I Start a Cafe Idea? Is it Hard to Open a Coffee Shop?

  19. How To Write Your Cafe Business Plan

    2. Sort your priorities. Setting up a business can feel chaotic. A business plan makes things a bit simpler by giving you direction, defining objectives, and creating the strategies to help you reach your goals. It also helps you think about challenges you might face, so you can plan for a way to manage them.

  20. Coffee Shop Business Plan PDF Example

    Whether you're an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your coffee shop concept into reality. Let's dive in! The Plan. Our coffee shop business plan is structured to cover all essential aspects needed for a comprehensive strategy.

  21. Complete Guides to Write Cafe Business Plan Step by Step

    A business plan is the first step toward making your cafe-ownership dream a reality, so dream big by sketching out your vision for your future cafe or coffee shop. What will the design of your cafe be? What kind of decorations will be used? What will its location be? Which items are you planning to sell? Who will go there?

  22. How to Write a Food and Beverage Business Plan + Sample Business Plan

    Writing a business plan is an easy first step that you can start for free. Plus, businesses that take time to plan are significantly more successful than those that don't. Many food and beverage establishments fail because of one of the following: Poor inventory management; Underestimated expenses; High employee turnover; Misjudged the size ...

  23. Your Go-to Guide To Create An Impactful Cafe Business Plan

    1. Business Overview 2. Industry Research 3. SWOT Analysis 4. Operations Plan 5. Financial Analysis 6. Marketing Plan Planning to start a cafe of your own? That's a brilliant idea! A cafe is one of those formats that will always work and help your garner profits given that you have a viable strategy and a cafe business plan in place.

  24. How to Create a Cafe Floor Plan

    If your coffee shop floor plan has the space, invest in comfortable seating, low coffee tables, Wi-Fi, and sufficient electrical outlets for laptops. This setup encourages customers to work remotely from your cafe, to socialize, to linger a bit longer, and to spend more in refill drink and food orders. On the other hand, if your cafe has ...

  25. Coffee Shop Financial Plan: Budgeting for Cafeteria Success

    This encompasses fixed costs like equipment, supplies, and loan repayments, as well as variable expenses such as payroll and cafe marketing efforts. Within the financial section of your business plan, various reports offer investors an in-depth understanding of your coffee shop's expected performance.

  26. How to Start a Play Cafe

    With good planning, you can increase the chances of success for your business by meeting the specific demands of kids and their caregivers in your community for a place to socialize, dine and play. 1. Begin With Market Research. Start market research to find out whether a play cafe will work in your community.

  27. Delivering Copilot for everyone

    With a simple sentence or two, you will see a budding entrepreneur turn a fledgling idea for a new product into an actionable business plan, a filmmaker's concept into a rich set of storyboards, and a fantasy football player's team come to life with a mascot image they can edit inline.