start up cafe business plan

How To Start A Coffee Shop (2024 Guide)

Updated: May 1, 2024, 5:13pm

Table of Contents

How to prepare, 12 key steps to open a coffee shop, tips for success after opening a coffee shop, independent coffee shop vs. starting a franchise, frequently asked questions.

It’s no wonder you want to start a coffee shop. Coffee is one of the most popular and profitable beverages in the world. It is robust and delicate, flavorful and aromatic, stimulating and relaxing. It’s conversational, it brings people together and it jumpstarts the day. The coffee industry can be a lot of fun. If you want to know how to start a coffee shop, look no further—we’ve compiled the ultimate guide to get you on your way.

Before you truly launch into the process of starting a coffee shop, you should lay a solid foundation to build on.

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 want your lender to see what you intend to achieve and how you plan for success.

Creating a business plan helps you connect your investments with goals, have a business model, show your target market, sales strategy and overall potential for growth. It also helps you uncover any weak spots, honing in on things that could potentially go wrong. Try to map out the whole picture for the entire business including business structure, customers, location, pricing, cost, products, staff and financials.

Featured Partners

ZenBusiness

$0 + State Fees

Varies By State & Package

On ZenBusiness' Website

Northwest Registered Agent

$39 + State Fees

On Northwest Registered Agent's Website

Tailor Brands

$0 + state fee + up to $50 Amazon gift card

Varies by State & Package

On Tailor Brands' Website

Choose Your Business Structure

When it comes to choosing your type of business structure , it is important to decide what structure best supports you and your business. This is something you will need to do before you register your business with the state. It is best to choose your business structure carefully, as it directly affects you and your business from personal liability, taxes, legal protection, bankruptcy, selling or even transferring ownership.

You could run your business as a sole proprietor, partnership, limited liability company (LLC) or corporation. LLCs and corporations provide protection against personal liability, but require filing forms with your state. Take some time to consider which option works best for you.

Consider Costs: Funding and Finances

Unless you already have the finances to start your coffee shop, you’ll need to calculate your startup costs. After you determine your startup expenses, you’ll need to decide where to request funding. You may have self-funding or investors as financial resources or you may need to contact banks and credit unions to request a small business loan . Another popular option is crowdfunding, which allows other people to support and contribute to the success of the business. Whichever way you decide, you need to have a good idea of what your budget is going into it. Consider costs such as renovations, buildouts, construction, machines, water systems, coffee grinders—these can add up. It’s inevitable for unforeseen things to come up, so it is better to be as accurate as you can and avoid underestimating.

1. Have a Vision

Passion with a vision is the driving force you need to move into action and succeed. Your desire will be the fuel to your success, and your customers will sense your love and dedication to the business. This vision and passion not only fulfills your personal dreams and desires, but it delivers an exceptional outcome and experience to your customers. When the going gets tough, you’ll need that fuel to get you through and when you put your heart and soul into something you love, the payoff is even greater.

“People with passion can change the world” —Steve Jobs

2. Do Your Research

Knowledge is power and it is a major contribution to your success. In order to gain knowledge, you must do your research. Start by learning the ins and outs of what makes a successful coffee shop.

There are many ways to do this, from hands-on experience to networking, asking other coffee shop owners with experience and educational tools such as books, classes and online content. This will provide you with important tools and information to move forward with confidence. Write a list of questions to help you gather the information you need. Some examples include:

• How do you roast your own coffee beans?
• What makes a great cup of coffee?
• What are the best machines to use?
• What are the coffee shop essentials?
• What is the competition like in the area?
• What are the health codes for a coffee shop?
• What other sources can help the business grow?

The more knowledge you have, the better your business will be. You’ll have more insight on how to run it, and you’ll be able to make good decisions. Your staff will trust in you and your customers will enjoy buying from you.

3. Identify Startup Cost and Equipment

No matter what, starting a coffee shop will have expenses, and these are essential for your operation. If you are choosing a brand-new retail location, it will be more costly to build and renovate than it will be to rent an existing location. Depending on the size and location of your coffee shop, cost can vary from $100,000 to $600,000. Determine what your budget is and what your limit is to spend on the necessities including renovations, furnishings, products and equipment. Some common startup costs that you’ll have include:

• Rental space
• Licenses and permits
• Advertising
• Staff wages
• Furnishing and equipment

To gain a full picture, separate your one-time costs, such as licenses and permits, equipment and renovations, from your monthly costs, such as utilities, advertising and employee wages.It’s better to overestimate than underestimate, and it’s important to have additional funding to cover operating costs until the business becomes profitable. This can take anywhere from six to 12 months.

4. Develop a Branding Strategy

Branding is much more than a logo. It not only represents the overall identity of your business, but the quality of your product, allowing customers to recognize, become familiar and trust your services. Think of it as the face and personality of your coffee shop and what makes your café unique and stand out.

Ask yourself, “How can I leave a lasting impression on the consumer and how do I want my customers to feel when they arrive?” You want your brand to activate their senses so they will automatically anticipate the full experience before they even walk through the door. This leaves a lasting impression on the consumer, encouraging them to talk about their experience with others and visit again.

Here are some helpful questions to ask yourself when developing your brand:

• What makes your coffee shop unique? For example, the coffee beans, the atmosphere, the environment, the services, the ingredients, etc.
• What kind of experience do you want to provide, and what is your overall theme for the shop?
• How can you create a sense of community, and how does it serve others as a gathering hub?
• Is your brand logo appealing, and does it translate well on packaging, social media and merchandise?
• How will your logo create a sense of familiarity and trust for consumers?

Once you’ve found the perfect design, don’t forget to trademark your logo and protect your creative assets.

5. Find a Location and Commercial Space

When starting a coffee shop, it’s important to choose a location and space that provides a wonderful experience for your customers. With that in mind, you’ll also need to consider other factors that will determine the success of your business, returning true profitable potential.

Pick a location that targets your ideal customers. You want to make sure there will be enough foot traffic in the area to provide your coffee shop with high volume and avid coffee drinkers—keeping your business steady year round. Get an idea of population density in your area by contacting the city or visiting census.gov census data by zip code.

Research other coffee shops in the area. It’s a good idea to research other coffee shops in the area to see if they compete with the products and services you provide. Some coffee shops target specific audiences or have limited hours of operation. This could help you determine whether or not you want to target customers who are early birds or night owls. Maybe you want to serve breakfast sandwiches in the morning or dessert and coffee in the evening.

Either way, it’s a good idea to make sure you’re not in competition with your neighbor—try to complement them instead.

Find a location that is easily accessible. Customers are drawn to locations that are easily accessible whether on foot or driving. Customers love the convenience of hassle-free parking and street visibility for those walking from one destination to another.

Find a commercial space. Finding a cozy coffee space is just one necessary component to an exceptional café experience but, unfortunately, not all commercial spaces will be able to accommodate more than that. Coffee shops require a unique set of accommodations, such as sufficient space to move around, room for espresso machines, couches and tables, kitchen space, gas, drain and water lines just to name a few. Remember to take all of it into consideration.

Find a commercial space you can afford. This falls in line with your budget as an ongoing cost, making it a commitment for the long haul. Consider the length of the lease, rent increases, renovations, insurance requirements, security deposit, maintenance and repairs. This not only plays a role in your coffee prices, but can directly affect any business loans.

Start an LLC Online Today With ZenBusiness

Click on the state below to get started.

6. File for Permits and Licenses

Before you start firing up the espresso machine and filling the display case with baked goods, you’ll need to get approved for state and local licenses and permits. Make sure you’re prepared ahead of time and be aware that these licenses and permits take time to secure. Permits and license requirements vary from state, city and county so be sure to check with your area of operation in order to fully operate in compliance with state laws and regulations.

Here are some licenses and permits you’ll likely need to open a coffee shop:

• EIN (Employee Identification Number)
• Business license
• “Doing Business As” License (DBA)
• Retail Food Service License
• Resale License for Sales Tax
• Sign Permit
• Food Handler’s Permit
• Building Health Permit
• Live Entertainment License

Once these important documents are set in place, you’ll be well on your way to opening your doors.

7. Choose the Right Coffee Supplier

A successful coffee shop is one that brews quality coffee time after time. A delicious cup of coffee keeps your customers coming back for more, making the experience enjoyable and worth every penny. When sourcing coffee, you’ll want to offer a product you’re proud of and to do that you must partner with the right supplier.

Here are a few key pointers to consider when choosing your coffee supplier:

Coffee lovers can be picky so be prepared to brew a high-quality cup of joe. When scouting the right supplier, there are many factors to take into consideration. Learn about the origin, how the coffee is roasted and where they source the coffee beans. If possible, visit the supplier and sample the coffee firsthand or request samples by mail. Inquire how the coffee is stored—as heat and humidity can damage the flavor and quality. Look for a coffee roaster that offers a wide variety of coffee bean options and falls in alignment with the vision of your café.

Find a supplier that can support low minimums to higher-volume capacity and has a fast and reliable turnaround. Once you find a supplier that suits your needs, you’ll want to make sure the supplier is able to grow with you. You may want to purchase a wide variety of coffee beans or a minimum quantity to start and a larger quantity as you grow. Either way, make sure you choose a supplier you can rely on. Your business will have fluctuating needs and you want to make sure the supplier is consistent and can provide a steady supply.

Customer Service

Think of your supplier as someone you are forming a long-term relationship with. You’ll want them to be just as committed to your success as you are. A good supplier will provide great customer service and walk you through each step—from roasting to packaging, sampling, creating blends and making small to large orders.

There are a few important things to consider when finding a price that works for you, including quality, customer prices and profit. First, determine if the supplier offers quality beans for the price, Second, decide if the price is fair for your customers and what your profit margin will look like. Lastly, will this price allow you to turn a profit? Great coffee does not come cheap, but it should not break the bank either. Most importantly, the taste and price should be worth a return visit.

8. Design Layout and Workflow

Your coffee shop layout and workflow will play a critical role in attracting customers to your café. Not only is ambiance and environment important, but so is the customer flow, food flow and coffee flow.

Here are a few things to consider when designing a layout:

Create a first impression. From a marketing perspective, your first impression determines who will become your customers. Determine what message you want to convey and what type of experience you want your customers to have when they walk through the door. Is it cozy and quaint? Is there music, study areas or areas for conversation? Not only is ambiance important, but so are the little details—such as where your customer will stand in line, wait for their coffee and move comfortably from place to place.

Create a good workflow design. Keep in mind, you’ll want to provide great service to your customers and with great service, you’ll need to move quickly and efficiently. Coffee shops can get busy, so it’s important the layout allows your baristas to move gracefully and swiftly when under pressure. Create a layout that allows the barista to be in a good flow from taking orders to brewing, grinding, steaming and frothing.

Long before you sign any contracts, make sure the building can accommodate a good workflow and area design. Consider how you will arrange and place the essentials:

• Coffee machines, grinders, milk frothers and kitchen equipment
• Storage and supplies
• Food display
• Menus and signs
• Outdoor and indoor seating
• Food assembly
• Coffee assembly
• Customer and employee flow

9. Order Equipment and Supplies

Quality equipment is necessary for a good cup of coffee but, unfortunately, equipment is not cheap. It’s best to do your research when making big purchases and remember quality equipment is a long-term investment, essential for the growth and success of your business.

Here is a list of equipment essentials you’ll likely need for your café:

• Espresso and coffee machine
• Coffee grinder
• Water filtration system
• Refrigeration and freezers
• Hot food equipment
• Point-of-sale (POS) system
• Dine-in and take-out coffee containers
• Ice machine
• Bakery display

This is just a starter list of your standard equipment and supplies. Remember to do your research because every detail counts. Get ready to stock your shelves with blenders, stirrers, syrups, varieties of milk, condiments, containers and thermometers and more. Inventory management software is also a great tool for tracking and identifying these items, making it easy to know what’s in stock and what needs to be reordered.

10. Hire and Train Your Team

A good barista goes a long way, from the very first interaction with the customer to their coffee-making skills. Remember, the people you hire are the face of your café and they have the ability to make a positive difference to your customers’ day. Customer service is everything so hire staff who know the importance of building relationships with people and have strong communication skills. Customers love genuine interaction and it will help create a bond between the customer and the café.

You also want to train your employees properly so they can make a great cup of coffee with confidence. Make sure the barista is ready to learn and is fully equipped with all the essential tools and knowledge to succeed—even a skilled barista will benefit from a refresher.

Here are a few must-haves to look for when hiring and training a barista:

• Great customer service
• Strong communication skills
• Attention to details
• Ability to multitask
• Ability to work under pressure
• Responsible and reliable
• Willingness to learn
• Cleanliness
• A positive attitude

Overall, a great barista will not only have a love for coffee, but they will care about the success and reputation of your business. Learn more in our guide about how to hire employees.

11. Market Your Brand

It can be frustrating to gain exposure when first starting out, so having a marketing plan for your brand should be top priority. It’s also important you tailor your ads and promotional products in a way that attracts the right people. There are many influential ways to promote your brand, so make sure to utilize all avenues of marketing—whether it be through online web content, social media, storefront advertising or involvement in the community.

Let’s take a look at a few ways you can promote your brand:

• Create a website
• Search engine optimization (SEO)
• Social media
• YouTube, Instagram and Facebook
• Influencer marketing
• Community gatherings and pop up shops
• Giveaways and raffles
• Paid advertising

12. Open House

Hard work pays off and once the paperwork is signed, decor is in place and staff is on the schedule, it’s time to open your café. To do so, you’ll need to get people to walk through your doors on opening day.

Now is the time to create a buzz through your social networks. Plan a ribbon-cutting event to promote your business or welcome a few people to a soft opening for an exclusive firsthand experience. Post about opening day on social media, letting your target audience know you’ll be open for business. You can even offer discounts or freebies as an incentive; this will help build curiosity and entice people to visit.

During the open house, it’s a good idea to show the face behind the brand. Mingle with your customers and take the time to know your community as this helps to build good lasting relationships.

There is no secret formula to success but here are a few additional ways you can increase your chances of success and grow the business.

Invest in a Strong Point-of-Sale System

You can greatly improve your business through a point-of-sale (POS) system . POS systems are made up of hardware and software, working together to process sales and payment transactions at the point of purchase. This system is digital with an intuitive touchscreen and interface, replacing the traditional cash register.

Having a point-of-sale system will benefit every area of your business. It allows customers to use different payment types, which in turn increases your revenue. It improves accuracy with a touchscreen, allowing you to keep a close eye on sales, profits and expenses.

It shows real-time inventory data from tracking inventory, making reordering simple. It also includes time clock functionality for employees to clock in and clock out. You can print reports, customize receipts and so much more. A point-of-sale solution is a great addition, furthering the success of your business and keeping your business organized and running smoothly.

Stay Ahead of the Game

In a saturated market of coffee shops, it’s important your café stands out. Find ways to take your coffee shop to a whole new level, giving your customers a good reason to visit your café and not your competitors. This brings money in the door and profits up.

Create consistency with your customers so they know what to expect, giving them a reason to come back, which helps form a long-term relationship. Think of something you can include with their experience that they wouldn’t get anywhere else such as a free biscuit with purchase, rewards or loyalty programs. Another way is to create an environment that is warm and inviting. Have relaxing music playing, comfortable lounge areas and offer free Wi-Fi, this will help your customers feel at home.

If you’re considering opening a coffee shop, you may be wondering if it is better to start a franchise or an independent business. There are many differences between the two business models and the choice will ultimately depend on your personal vision and set of goals. Let’s briefly take a look at both sides of the coin.

Opening an Independent Coffee Shop

Independent small business ownership is for those who have a personal vision and want to follow their own passions. You decide how the business will run. You are your own boss and you call the shots in every area of operation. If you decide on opening an independent coffee shop, you’ll have the freedom and independence to fully create and market your own product and brand name.

On the other hand, you’ll have less exposure, and you’ll need to develop your own customer base. You are fully responsible for developing and maintaining the success of the business.

Opening a Franchise Coffee Shop

When you franchise a coffee shop, you buy the rights from a company to operate and do business under their brand name. They provide the blueprint to replicate a proven formula. There are many controlled elements when opening a franchise, ranging from hours of operation and marketing strategies to the type of equipment and ingredients used.

They define how the business will operate in every way and you gain the reputation of a brand that most people already know and trust. If you decide you want to open a franchise, you’ll be responsible for signing contracts and following many rules and regulations. Startup costs can be high and you will have to pay a continuous fee to keep using their name.

In a nutshell, both have pros and cons, and both have the potential for success. It’s important to do your research and consider all factors before making a decision.

Bottom Line

We all know coffee will never go out of style. Coffee shops are continuing to grow and are becoming more popular every day, offering a variety of flavors and styles. You will likely succeed as a coffee shop owner if you have an ongoing love for your business and a solid business plan. Stay committed to the journey, express your creative edge and be open to learning. All in all, owning a coffee shop can be a gratifying and profitable experience.

How profitable is a coffee shop?

The profit margin will all depend on a few major factors, such as volume of sales, location, price point, startup costs, operational cost and more. Every coffee shop will vary from person to person, but it is estimated that a coffee shop owner can make between $50,000 and $175,000 yearly.

Do I need any qualifications to run my own café?

There are no specific requirements or qualifications to start a coffee shop, but it is a good idea to learn general business skills. Although you do not have to have a lot of experience, you must have the motivation to learn and grow.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

• Best LLC Services
• Best Registered Agent Services
• Best Trademark Registration Services
• Top LegalZoom Competitors
• Best Business Loans
• Best Business Plan Software
• ZenBusiness Review
• LegalZoom LLC Review
• Northwest Registered Agent Review
• Rocket Lawyer Review
• Inc. Authority Review
• Rocket Lawyer vs. LegalZoom
• Bizee Review (Formerly Incfile)
• Swyft Filings Review
• Harbor Compliance Review
• Sole Proprietorship vs. LLC
• LLC vs. Corporation
• LLC vs. S Corp
• LLP vs. LLC
• DBA vs. LLC
• LegalZoom vs. Incfile
• LegalZoom vs. ZenBusiness
• LegalZoom vs. Rocket Lawyer
• ZenBusiness vs. Incfile
• How To Start A Business
• How to Set Up an LLC
• How to Get a Business License
• LLC Operating Agreement Template
• 501(c)(3) Application Guide
• What is a Business License?
• What is an LLC?
• What is an S Corp?
• What is a C Corp?
• What is a DBA?
• What is a Sole Proprietorship?
• What is a Registered Agent?
• How to Dissolve an LLC
• How to File a DBA
• What Are Articles Of Incorporation?
• Types Of Business Ownership

Next Up In Business

• Best Online Legal Services
• How To Write A Business Plan
• Side Hustle Ideas To Make Extra Money
• Starting An S-Corp
• LLC Vs. C Corp
• How Much Does It Cost To Start An LLC?

What Is SNMP? Simple Network Management Protocol Explained

What Is A Single-Member LLC? Definition, Pros And Cons

What Is Penetration Testing? Definition & Best Practices

What Is Network Access Control (NAC)?

What Is Network Segmentation?

How To Start A Business In Louisiana (2024 Guide)

Natalie Cusson is a small business owner with over 15 years experience in the creative arts. She's worked on ad campaigns for many trusted brands such as Nike, Subaru, Polaris, Red Bull and Progressive Insurance, just to name a few. Beyond her professional accomplishments, Natalie is driven by her love for writing and research, and is committed to maintaining a growth mindset. Not only is she passionate about learning and growing, she believes in embracing a healthy lifestyle.

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of directors of two non-profit organizations seeking to revitalize her former railroad town. Prior to joining the team at Forbes Advisor, Cassie was a content operations manager and copywriting manager.

How to Open a Café Business

How to Open a Café Business – Ultimate Beginner's Guide PDF

Successfully Opening a Café Business

Opening a café business can be an exciting opportunity for aspiring entrepreneurs. The sound of steaming espresso machines, delicious food being served, and the lively chattering of customers can pique the interest of any new business owner.

A café is one of many different coffee shop concepts that could work in your community. Finding the right concept for the right location to serve the appropriate target market will be a significant part of your café planning.

In today's post, we'll deep dive into the steps you'll want to take to open a café successfully.

How much does a café business cost?

Several main factors impact the cost of a café, which requires two specific budget breakdowns .

The first budget would be your café startup budget . The second cost breakdown would be your operational budget .

Your coffee shop startup budget will be the money you need to get from Square One to your grand opening. This budget includes your research, planning, legal, and administrative costs. Additionally, your startup budget includes your initial space lease, café buildout, equipment costs, furniture and fixtures, and training.

Your operational costs are centered on the day-to-day or monthly cost of operating your café. This includes your lease, insurance, labor, inventory, taxes, and other expenses.

Since a café often has a more extensive menu and offers indoor seating, the costs of a traditional café are often higher than that of a conventional coffee shop.

These costs will fluctuate depending on the location, size of the kitchen, menu offerings, real-estate, and buildout costs.

For more information, read our post, How Much Does it Cost to Start a Coffee Shop?

Beginner's Guide

Opening a Café Business (Easy Steps)

• pick a cafe concept
• choose a cafe menu
• determine what will make you stand out
• define your branding
• determine your cafe budget
• understand who your cafe customers will be
• setup your business structure
• choose your cafe location
• pick your cafe equipment
• write a cafe business plan
• determine your cafe funding
• choose your cafe roaster
• build out your cafe
• get a cafe license and permits
• develop a coffee brand and marketing strategy
• hire amazing baristas
• always deliver excellence

Trending Articles on Coffee Shop Startups:

Steps Open a Café Business

Pick a café concept..

Cafés come in all shapes, sizes, and themes. Even café concepts can vary among other cafés.

What type of café do you wish to have? Perhaps, more clearly, what kind of experience would you want your café customers to have?

Choosing the right café concept to fit your customers in a specific location will be vital to driving sales and keeping your business humming strong.

You will want to settle on a specific niche in the marketplace that offers a unique experience and a different menu. This will help side-step competitors and appeal to customers. 

Choose your café menu.

Cafés are often more than just traditional coffee shops and differ in various ways. For example, cafes often have a more extensive menu than traditional drive-thru coffee stands or coffee shops. Some cafes even can have a full kitchen, a large bakery operation, and a coffee roastery. Of course, many cafes also serve alcohol as well. Serving alcohol at your café may require additional permits and licenses, so check with your state's alcohol board.

These are significant undertakings, cost additional money, and require a greater startup budget and operational budget to maintain. But, of course, the benefits of having these operations in-house can improve your sales and increase your profit margin.

Choosing your café menu will play a big part in other big decisions you'll be making. Everything from your space needs, permit requirements, employee wages, and cafe equipment needs will be determined by your café's menu.

Deciding on your menu requires you to grasp what your customers want at the price they are willing to pay.

Determine what's going to make you stand out

Now that you are honing in on a concept and menu, this might be an excellent time to determine how your café will stand out from the competition.

The “special thing” that makes you different will often give you a competitive advantage in the marketplace and separate you from the rest of the choices available.

Perhaps it will be your special soup your rotating business lunches, or your in-house roasted organic coffee. It could be your decadent pastries or special cakes made by your award-winning baker. It might be the collection of art on your walls, your panoramic view, or the music you offer every night. All these elements and more have the potential to be a unique feature that only your café offers.

We often refer to this particular thing as your Unique Sales Proposition or USP.

Coming up with a winning USP will better position you among competitors and provide you with a solid foothold to make other decisions. This will include your branding, messaging, and marketing efforts. It will also help improve your sales and training and give you a competitive edge. 

Define your cafe branding.

As you begin to outline what type of café you will be in, you will also want to develop your café brand and messaging behind it.

Your café branding will include, among other things, your logo, name of business, your use of colors, menu choices, uniforms, etc.

Your branding may be reinforced by your décor, design, and layout, among other things.

Additionally, your messaging – the use of language, slogans, and energy that you communicate via all of your channels (website, social media, signage) – plays a role in what type of café you have chosen.

Your messaging has to appeal and trigger action among your target market to maximize your success and drive sales. So, as you move forward with your business planning, start crafting and refining your logo and overall messaging. If you need help, there are affordable branding experts online who can help design your logo, signs, and other items.

Yet, there are plenty of things you can do yourself before hiring an expert, so keep reading!

Determine your cafe budget.

In the early stages of your planning, you will want to sketch out your café startup budget . Of course, the easiest way is to start listing the things you need to get your café up and running.

Your cafe budget will be central to answering the question: How much will your café cost?

This final estimate and budget will take a little planning, realistic estimates, and adjusting.

As you plan out your café business, your budget may naturally increase. Keep a running list and include this budgeting effort in your cafe business plan .

You will also need to create an operational budget. This operational budget will itemize the costs of being open and running your café daily. These two estimated budgets (your startup budget and operational budget) will be essential to understand before you launch your business.

My recommendation is that you don't create and act on your budget in “real-time” or as you go. Instead, determine your café budget first – analyze it against your business plan, then move forward with securing the funds needed to get your café operational – and then spend the money.

Opening a café business

Understand who your café customers will be.

There is no secret that your customers play a significant role in your café's success. From generating sales and repeat business to being your most prominent marketers – your customers are the foundation of your profit and continued success.

Start with determining who your customers are. It should be among the first necessary steps you'll need to take. Afterward, you can start molding your entire business to serve them.

Your target market is the general market to which your café will appeal, often based on your geographic convenience, accessibility, and business concept.

If you dig a little deeper – you will also know who your target customers are – or those customers that are most likely willing to buy from you.

Set up your business structure.

To operate your café legally, you will have to set up an appropriate business structure. Often, your business structure is created in the state in which you plan on operating your business. This is done through your specific state's secretary of state office.

Keep in mind that you can still operate your business in other states and regions as long as you have the appropriate business licenses and health permits and complete other requirements for those areas. For example, you might decide to open a coffee business in New York but decide to operate a second coffee shop located in Los Angeles .

Your business structure is an essential part of your café startup process. You'll have several business structures to choose from – such as a sole proprietorship, corporation, limited liability company (LLC) , etc.

Choose your cafe location.

Choosing the best location for your café will be the cornerstone of your success. The perfect location can determine your sales strengths and position you to maximize exposure.

There are a few essential elements that revolve around your café's location. Your location should be easily accessible to your target market, and have parking and lighting, among others.

You will have to factor in neighboring businesses, competition, and other essential elements in your prospective location. These include neighboring points of interest, parks, farmers' markets, theaters, etc.

Additionally, your location's lease will be critical in moving forward with the location. A poor lease or a lease that makes business difficult may hamper your progress and sales.

For more information, read our post, How to Choose the Best Location for Your Café .

Pick your cafe equipment.

Now that you've picked out the concept and your menu and you're settling on a location, you'll want to start choosing the café equipment pieces you'll need.

Detail items such as ovens, stoves, and refrigerators. You will also need an espresso machine, commercial coffee grinders, and brewing devices.

Your café equipment will be a significant part of your budget and requires some thoughtful budgeting and comparison shopping. You may also want to include your café displays, menu boards, furniture, and fixtures in your calculations here as well.

For more information on choosing your coffee shop, please read   The Coffee Shop Equipment You Need

Write a café business plan

Writing a café business plan will help get all your thoughts, ideas, and plans on paper. In addition, your business plan will play a key role in helping you organize your thoughts and ensure that all elements of your business are addressed.

A café business plan is written for a small and significant audience. First, your business plan will be read by your potential investors, partners, and bank lenders. Next, your café business plan will also be read by property managers. Most property managers will expect to see a business plan which allows them to understand the nature of your business and operations thoroughly.

For help getting started, please read   How to Start and Write Your Cafe Business Plan.

Determine your café funding.

After you've developed your business plan, you will want to secure your funding. Before getting the financing, you will need to establish a café funding mix. Your mix will detail the pools of capital you will utilize to get the money to fund your café startup fully. It will also provide a guidepost to strategize accessing funds from each pool.

Your funding mix will help you prioritize your efforts to secure the funds you need to get your business self-sustaining. 

For a more detailed look at developing your café funding mix, please read our post, Developing Your Café Funding Mix.

Choose your café roaster and vendors.

If you decide not to roast your beans, you will need to work with a wholesale coffee roaster .

Choosing a coffee roaster is a big decision. After all, you are banking on their expertise, quality, reliability, and their ability to provide you with as much roasted coffee as needed. Some cafes run through hundreds of pounds of coffee in a week, so your wholesale roaster will need to be able to fulfill those orders.

You may decide to roast your coffee beans yourself, but this decision comes with added costs and other considerations.

In addition to your coffee roaster, you should consider looking at any vendors you might need to work with to fulfill your menu items.

For further reading, please read   How to Choose a Wholesale Coffee Roaster .

Build Out Your Café.

After securing your café location and signing your lease, you will probably need to remodel or build out your café. This may require some permitting, and it certainly requires some research to understand what codes and regulations you'll need to adhere to.

My recommendation is that you start early in the cafe design and layout process. Even though you may not have a location yet, you can still understand what is required for you to pass the inevitable health and building inspections. Establish contacts with your various departments. Never start working on your café without first checking with the agencies that will need to approve your design and layout.

Get your cafe license and permits.

You will need to get your health department permit, building permit, and business license to serve your first customer. Additionally, you may also need to have a fire department permit.

Each of these permits requires you to work with different governmental agencies before opening your café. The good news is that most of these agencies have worked with many café businesses in the past, so they would help you answer any questions you have.

Some agencies, like the building department, might be at the state level. In comparison, other agencies like the health department will be at the county or city level.

Develop a coffee brand & marketing strategy.

Setting your café apart from the rest of the field, in most cases, will be what allows your café to grow into the business you want it to.

You will want to create a brand – everything from your name, logo, slogan, and colors you use.

Your brand will be your banner symbol with which you, your employees, and your customers understand and develop a connection.

As you develop your café brand, you will also want to market your café business. Never believe that your café will succeed on its own simply with the fact that it exists.

Successful cafés figure out ways to effectively market to their target market. By understanding your target market and what you intend to do well, you can craft an effective marketing strategy.

Hire amazing baristas.

One of the best things you can do as a café owner is to hire amazing baristas and staff.

Reliable, honest, and skilled staff are hard to come by, so start looking for them early.

Once you hire your staff, do whatever it takes to keep morale high, pay fair wages, offer the opportunity for gratuity sharing, and provide regular barista training. Regular coffee education and barista training will improve your turnover rates.

Deliver excellence every time

Consistently deliver your best. If you have come this far to open your café, you will want to exceed your customers' expectations every time. I acknowledge that delivery consistency every time is hard, but it is necessary when your competitors are hoping you fail.

As a café owner and manager, you will want to offer high-quality products and services by constantly improving, continuously training, adapting, and listening to your customers. Treat your employees well, take steps to show how valuable they are to your business, and go the extra mile for your customers.

Further Reading : How to Start a Coffee Shop Successfully

Opening a Café Business

Additional Questions:

Is it hard to open a café.

Starting a café is not necessarily hard. Instead, it requires devotion and tenacity. There are several steps to owning and operating a café, and they all need to be completed before you can open your doors.

It will be challenging to have the patience, knowledge, and money to get you to the Grand opening. However, many successful café owners who started with less skill, less money, and less understanding than you, have succeeded because they had the motivation and devotion to follow through. Following through is the hardest part about starting a cafe.

How much money do café owners make?

Café revenue and income vary across the board. However, factors that determine café income and revenue aren't different from those of other retail businesses and restaurants.

To determine income, you'll need to determine how many sales you have per day, week, or month. Additionally, the number of sales needs to be multiplied by the average cost per ticket.

For example, let's take a tiny café open from 7 am to 7 pm, which sells 120 coffees per day, averaging $5 per receipt. That comes out to $600 per day or $4200 per week for coffee. So, this would come out to $16,800 per month.

Of course, this includes coffee alone and not muffins, pastries, soups, or other menu items. Additionally, you will want to subtract the operational costs to give you your café's net income and profits.

We take a deeper dive into the revenue and income that is generated by a coffee shop in our article, How Much Does a Coffee Shop Owner Make?

What is the difference between a cafe and a coffee shop?

A cafe is typically larger and offers indoor (and possibly outdoor) seating. Cafes may also offer waiting services and have a deeper menu. The menu may offer full-kitchen options for breakfast, lunch, and dinner. There are often different hybrid cafes that also offer walk-up or drive-thru options, but typically, you'll find a place for customers to sit, look at a menu, order from their items, and wait for their plates to be brought to them. A cafe may often be open later into the evening, serve alcohol , and offer live music.

Should I open up a low-cost coffee business instead?

If you would like to open a café but aren't sure you can manage the cost or secure funding, there may be a variety of other low-cost café options for you to consider.

Options include starting a mobile coffee business, an espresso catering business, or a drive-thru coffee stand . Additionally, you may also consider selling coffee online. Selling coffee online can help you establish your brand, help you target your customers, and provide you with the experience and funding you need to get your café started.

For more information, read Low-cost Ideas for Starting a Coffee Shop with No Money.

Are You Ready To Get Started?

Unlock Your Dream Coffee Shop Business with Our Exclusive Coffee Shop Startups Kit!

Ready to transform your passion for coffee into a thriving business? Look no further! Our Coffee Shop Startups Kit is your key to brewing success. Here's why you can't miss this opportunity:

Includes Exclusive BONUS Material!

👉 Order Now and Begin Your Journey!

Don't let the complexities of starting a coffee shop overwhelm you. Our Coffee Shop Startups Kit is your ticket to entrepreneurial success. Take the first step towards owning a profitable and fulfilling coffee business today.

Join the thousands of successful coffee entrepreneurs who started with a dream and a great plan. Your journey to coffee shop greatness begins right here!

Comprehensive. Proven. Affordable.

The Complete Coffee Shop Startup Kit

(Instantly Delivered To You)

Coffee Shop Startups

Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully. Over the last 11 years, we've helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits. We support business owners who want to start a coffee business by providing them with valuable information on starting their coffee business successfully.

• Coffee Blog
• Mobile Coffee Coaching
• Coffee Shop Business Course Info
• Testimonials
• Frequently Asked Questions
• Refunds, Terms & Conditions

All of our kits are delivered digitally. No physical delivery is made.

Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully.

Over the last 10+ years , we’ve helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits.

Your trust in us is important. Buy securely online with our Teachable Payment System. We have a no-hassle 14-day refund policy. Email us, and we’ll refund your money within 14 days of your purchase. Please read our testimonials from satisfied customers!

Disclaimer: The information and advice presented through this site and its products should not be considered legal or financial advice. The information within the website, affiliated websites, blogs, and any communications (electrical or otherwise) are for educational purposes only.

The author and publisher make no representations or warranties regarding the outcome or the use of the information within this website and products and are not assuming any liability for any claims, losses, or damages arising from the information.

Blog Center

Productivity

Comparisons

Product Updates

How to Write a Cafe Business Plan (+ a Free Plan Outline)

July 12, 2024

Jul 12, 2024

17 min read.

If you’re thinking of starting a cafe or coffee shop, your first step is drafting a business plan. This may sound intimidating, but it doesn’t have to be. When you’re armed with the know-how you need, writing a business plan is actually pretty straightforward.

This article and detailed examples will show you how to create a cafe business plan step by step. We’ll also show you how Lark can help as you draft your business plan and optimize your cafe’s operations .

Explore how Lark has helped Journey Kaffe grow

What is a cafe business plan?

There are more than 38,400 coffee shops in the US, with a total market value of over $48 billion. But there’s room for even more — and each new one will need a business plan.

A cafe business plan is a strategic document that outlines your vision, goals, and roadmap for establishing and running a successful cafe. Its main purpose is to give you a structured approach to planning and decision-making.

Additionally, it serves as a guide for the business’s day-to-day operations and a reference point for measuring progress and making adjustments once you’re up and running.

Typically, a cafe business plan includes an executive summary, a market analysis, and detailed financial projections.

The executive summary offers a concise overview of your cafe concept, target market, and unique selling points (USPs).

The market analysis delves into industry trends, your competition, and customer demographics.

The financial projections include startup costs, revenue forecasts, and a break-even analysis.

If you’re seeking financing from investors or lenders, your business plan maps out the viability and potential profitability of your cafe business.

Discover how ZUS Coffee propelled growth with Lark

What should you include in your cafe business plan?

In this section, we’ll discuss the framework of a solid business plan.

Lark Docs is useful for creating your plan as well as any other important documents your restaurant will need to function. It gives you a central location to store everything securely. You can also easily share docs with stakeholders and collaborators.

Executive summary

Your plan document should start with an executive summary. Consider writing this last, when you’ve put all the other pieces in place.

In the executive summary, you’ll present a concise overview of your cafe business plan. It should provide key highlights and a snapshot of the business. Also, include the cafe's name, location, and mission statement.

Next, summarize your business concept, including its USPs and target market. Highlight important financial projections, such as expected revenue and profitability.

Briefly mention the cafe’s management team and their expertise, and outline the competition and your strategic advantages.

Conclude this section with a summary of your funding requirements and the purpose of the plan. This section should be informative and inspiring so that it encourages readers to delve deeper into the plan’s details.

Business description

Your business description should give readers a detailed overview of your business concept, mission, and USPs. This information is summarized in the executive summary, but it's laid out in detail in the business description.

To create an effective business description, start with a clear and concise mission statement that captures the essence of your cafe. Describe the type of cafe it’ll be, including the food and beverages you want to serve, the atmosphere you’re aiming for, and the target market.

Highlight what sets your cafe apart from its competitors, such as a unique menu, specialty coffees, exceptional customer service, or sustainable practices.

Here’s a helpful sequence for laying out your business description:

1. Mission statement: A brief and impactful statement that defines your cafe's purpose and values.

Example: “Our mission is to create a warm and inviting cafe space where customers can enjoy high-quality, ethically sourced coffee and freshly baked pastries while experiencing a sense of community and connection.”

2. Business concept: Describe the overall concept, including the cafe’s theme, design, and ambiance.

Example: “Urban Elegance Café offers a sophisticated yet cozy environment with a modern design, perfect for both business meetings and casual get-togethers.”

3. USPs: Highlight what makes your cafe unique, such as a focus on organic ingredients, locally sourced products, or innovative menu items.

Example: “We pride ourselves on using only organic, fair-trade coffee beans and locally sourced ingredients.”

4. Target market: Identify your primary customer base and explain why your cafe will appeal to them.

Example: “Our primary customers are young professionals and students who appreciate premium coffee and a comfortable space for working or socializing.”

5. Location: Mention the planned location and why you’ve chosen it to attract your target market.

Example: “Located in the heart of downtown, our cafe benefits from high foot traffic and accessibility. We’ll attract both office workers and local residents.”

6. Business objectives: Outline your short- and long-term business goals.

Example: “Our short-term goal is to establish a loyal customer base within the first six months, and our long-term goal is to expand to multiple locations within five years.”

A detailed business description like this provides a snapshot of your cafe's identity and strategic direction. It helps stakeholders quickly grasp what your business is about and why it’s worth investing in or supporting. Plus, it sets the stage for a logical and compelling narrative in the remainder of your business plan.

Demographics

The demographics section of a business plan includes an in-depth analysis of the target market or customer base.

In this section, include detailed information on the ages, genders, income levels, occupations, education, and lifestyle preferences of your potential customers.

Keeping these demographic factors in mind is important for tailoring your offerings, marketing strategies, and overall business approach to the needs and preferences of your target market.

To gather the right demographic information, start with market research. Use data from local government databases, industry reports, and market research firms. Websites like the US Census Bureau, Pew Research Center, and your local chamber of commerce can provide valuable insights.

Another way to collect demographic information is to conduct surveys, focus groups, and interviews with local residents. This will give you firsthand information about the location you’re looking at.

Here are some examples of how to use the information you collected:

1. Age and gender: If your target market is young professionals aged 25–35, you might find that this group frequents coffee shops for both work and socializing.

Fine-tune your menu to include trendy coffee drinks and offer amenities like free Wi-Fi and comfortable seating.

2. Income levels: Analyze the income levels of professionals at your planned location to set appropriate pricing. In a higher-income area, you might offer premium coffee blends and gourmet pastries. In a middle-income area, focus on affordability and value for money.

3. Occupation and lifestyle: If your cafe is near a business district, cater to office workers with quick-service options, lunch specials, and grab-and-go items.

If located near a university, offer student discounts, extended hours, and a study-friendly environment.

If your research shows a high percentage of health-conscious individuals in the area, incorporate healthier menu options, like vegan pastries and sugar-free creams and syrups.

4. Education: Higher education levels often correlate with a preference for specialty coffee and artisanal products. Use this information to create a menu that includes organic, fair-trade coffee and unique, high-quality baked goods.

If you thoroughly understand the demographics of your target market, you can make informed decisions that help you achieve customer satisfaction and drive business success.

SWOT analysis

A key element of any business plan is a SWOT analysis . This is a strategic planning tool for identifying and evaluating the strengths, weaknesses, opportunities, and threats related to a business. It’s used to assess the current situation of the business and develop strategies for growth and improvement.

More specifically, a SWOT analysis gives a comprehensive overview of the internal and external factors that can impact the business, which helps owners and managers make informed decisions.

A strength could be a particularly unique menu, and a weakness could be limited seating capacity.

Opportunities and threats are external factors, like market trends that favor a particular specialty coffee (an opportunity) or new competitors entering the market (a threat).

For example, a cafe might identify its prime downtown location as a strength but its limited parking as a weakness.

An opportunity could be changes in the coffee business, such as an increasing demand for organic coffee, while a threat might be the opening of a new coffee chain nearby.

By analyzing these factors, you’ll be prepared to play to the strengths of your cafe enterprise, address weaknesses, capitalize on opportunities, and find ways to lessen the impact of potential threats.

To visualize what a SWOT analysis looks like, here's a simple diagram of one for a cafe that caters to health-conscious customers:

Competition analysis

One of the most important considerations in opening a new business is whether it can hold its own against its competition and potentially outperform it. To figure this out, you need to do a competition analysis.

A competition analysis involves identifying and evaluating your potential competitors to understand their strengths, weaknesses, strategies, and market positioning. It’s critical if you plan to open a cafe since it provides insights into the competitive landscape and helps you develop strategies to differentiate your business and capture the market share you’re hoping for.

Specifically, conducting a competition analysis helps you:

Identify market gaps: Discover unmet needs or underserved niches that your cafe can target.

Benchmark performance : Understand industry standards and set realistic benchmarks for your business.

Refine your USPs: Clearly define what makes your cafe stand out from the competition.

Develop effective strategies: Craft marketing, pricing, and operational strategies that capitalize on your competitors' weaknesses and leverage your strengths.

How to conduct a competition analysis

Follow these steps for a solid competition analysis:

Identify your competitors: Start by pinpointing both direct competitors (other cafes) and indirect competitors (bakeries, food trucks) near your intended location. Use online searches, local directories, and social media to compile a comprehensive list.

Analyze key competitors: Visit your competitors’ locations, review their menus, and observe their customer service. Take note of their pricing info, promotional strategies, and customer reviews. Analyze their online presence, including their websites and social media profiles, to understand their brand positioning and customer engagement.

Do a SWOT analysis: Perform a SWOT analysis for each key competitor. Identify their strengths (e.g., strong brand loyalty or a prime location), weaknesses (e.g., a limited menu or poor customer service), opportunities (e.g., a growing demand for specialty coffee), and threats (e.g., new entrants or changing consumer preferences).

Evaluate market positioning: Determine where your competitors stand in terms of market positioning. Are they targeting budget-conscious customers or premium coffee lovers? Knowing this information will help you position your cafe appropriately.

Suppose you plan to open a cafe in a busy downtown area. Your primary competitors include a well-established chain with a strong brand presence and a local boutique cafe known for its artisan pastries.

Upon analyzing these competitors, you find that the chain offers quick service but lacks a cozy atmosphere, while the boutique cafe has a loyal following but higher prices.

Making use of these strengths and weaknesses, you could position your cafe to offer a comfortable, inviting space with competitive pricing and a focus on high-quality, locally sourced products to fill the gap between quick service and premium offerings.

So, by conducting a thorough competition analysis, you can strategically position your cafe to attract customers and thrive in a competitive market.

Costs and revenue forecasting

One of the first questions when opening a new business is: Will it generate a profit ?

Cost and revenue forecasting involves predicting future expenses and income to determine the financial viability of your cafe. This process is essential for financial planning, securing outside financing, allocating resources wisely, and managing cash flow effectively.

This detailed analysis provides potential investors with a clear picture of your cafe’s financial potential. It also identifies potential financial challenges and helps you identify proactive countermeasures.

How to conduct cost and revenue forecasting

Build this section around the following three points:

Identify costs: List all startup costs (e.g., equipment, renovations, and licenses) and ongoing operational expenses (e.g., rent, utilities, salaries, ingredients, and supplies). Group them into fixed and variable costs.

Estimate revenue: Project your monthly sales based on expected customer volume, average transaction value, and menu pricing. Consider peak and off-peak periods, as well.

Create projections: Use the identified costs and estimated revenue to create monthly and annual financial projections. Include best-case, worst-case, and most likely scenarios to account for uncertainties.

Suppose your estimated monthly costs are $15,000 (fixed costs: $11,000 for rent and salaries; variable costs: $4,000 for ingredients and utilities).

If you expect to serve 3,000 customers per month with an average transaction of $7, your projected monthly revenue would be $21,000.

Subtracting your costs from your revenue, you forecast a monthly profit of $6,000. This basic forecast helps you understand your break-even point and profitability.

By conducting cost and revenue forecasting, you ensure that your cafe is financially prepared for both challenges and growth opportunities.

To track inventory and sales details in your bookkeeping once your cafe is up and running, take a look at Lark Base . It easily connects with your POS system to give you insights into your cafe’s performance. You’ll see at a glance which drinks and foods sell and which don’t, helping you monitor the success of your menu.

If you’d like some help with staying on top of your inventory and revenue stream, also check out Lark’s helpful inventory and revenue tracking system.

If you’re selling online, too, software like Larksuite paired with a good POS like Shopify can help your ecommerce run very smoothly. Lark has a built-in Shopify integration, making it even easier to keep your data in sync.

Staff and management

Your cafe business plan should also detail the projected staffing structure and management roles in the organization.

Include a staffing plan that outlines the number of employees needed, their roles (e.g., baristas, kitchen staff, and waitstaff), and any required qualifications or experience.

Describe management structure and skills and highlight key positions such as general manager, head chef, and floor supervisor, as well as their responsibilities. Include recruitment and training plans for your future staff, too.

Finally, outline employee policies when it comes to compensation, benefits, and scheduling.

Legal information

Your cafe business plan should include a detailed overview of any necessary legal requirements as well. This includes business licenses and permits, such as a general business license, health department permits, food handler permits, and possibly a liquor license if you plan to serve alcohol.

Also, describe compliance with local zoning laws and building codes as needed.

Include information on any required inspections and safety regulations, as well as an overview of insurance coverage, such as liability and property insurance.

Clearly identifying these legal requirements ensures that your cafe operates within the law and you avoid potential legal issues.

Marketing plan

In addition to the above sections, you could add a summary of your marketing plan, which describes the avenues you will use to reach potential customers.

This could include a website, print ads, sidewalk advertising, online ads, social media, frequent visitor discounts or rewards, special promotions , or building a mailing list.

However, a marketing strategy is typically more comprehensive than what’s included in a business plan, so it's good practice to draft a detailed marketing plan as a supplement to your business plan.

Use Lark’s restaurant sales guide for smooth cafe operations

Coffee shop business plan example: Green Elephant Cafe

Still not sure how to get started with your plan? Take a look at our cafe business plan example for a hypothetical establishment called the Green Elephant Cafe.

Green Elephant Cafe - Business Plan

The Green Elephant Cafe, located in a bustling downtown area, will provide a vibrant, eco-friendly space for locals, office workers, and tourists.

Our mission is to offer high-quality, ethically sourced coffee and organic pastries while promoting sustainability.

With a prime location and exceptional customer service, we project a monthly revenue of $20,000 with a profit margin of 10%.

Our experienced management team will guarantee operational excellence. We seek $100,000 in funding for startup costs and initial operations.

The Green Elephant Cafe is a modern, eco-conscious cafe that combines a cozy atmosphere with a focus on sustainability. We offer a diverse menu featuring organic, fair-trade coffees, teas, and freshly baked pastries.

Our cafe provides a welcoming environment with free Wi-Fi, comfortable seating, and a commitment to reducing our ecological footprint through sustainable practices.

Our target market includes young professionals, office workers, and tourists.

The downtown location is home to numerous office buildings, so we will attract a steady flow of employees looking for quality coffee and a relaxing space.

The area is also a popular tourist destination, which will give us a diversified customer base.

Our focus on sustainability appeals to environmentally-conscious individuals and health-conscious consumers.

Strengths : Prime downtown location, unique eco-friendly concept, high-quality products, and experienced management team.

Weaknesses : Higher costs for sustainable products, reliance on foot traffic, and initial significant marketing expenses.

Opportunities : Growing demand for organic and fair-trade products, the potential to expand to new locations, and potential partnerships with local businesses.

Threats : Competition from established cafes, economic downturns that affect discretionary spending, and fluctuations in ingredient costs.

The Green Elephant Cafe faces competition from both large coffee chains and local boutique cafes.

Our key competitors include a well-known national chain located nearby and a local artisan cafe famous for its pastries. The national chain offers convenience and brand recognition, while the local cafe excels in specialty baked goods.

The Green Elephant Cafe differentiates itself through its strong commitment to sustainability, organic offerings, and unique, relaxing atmosphere.

Cost and revenue forecasting

Initial startup costs, including leasehold improvements, equipment, initial inventory, and marketing, are an estimated $100,000.

Monthly operating expenses covering rent, utilities, salaries, and supplies are projected at $15,000.

With an anticipated monthly revenue of $20,000, we forecast a monthly profit of $5,000, breaking even within the first six months.

The Green Elephant Cafe will employ a dedicated team of baristas, kitchen staff, and servers.

Our management team includes a general manager with over 10 years of experience in the cafe industry and a head barista with a strong background in specialty coffee. For the first three years of operation, we’ll outsource accounting to a local firm.

Staff training will focus on exceptional customer service and sustainability practices.

We will obtain all necessary business licenses and permits, including a general business license, a signage permit, health department permits, and food handler certifications.

Compliance with local zoning laws and health regulations will be strictly maintained. We will also secure comprehensive liability and property insurance to protect our business and our customers.

In addition to our website, we will market with local print ads and engage in extensive email marketing.

Check out Lark’s detailed restaurant opening checklist

Cafe business plan outline for your use

Now that you understand the key components of a cafe or coffee shop business plan, here’s a blank template you can use to compose your own:

Explore Lark’s detailed guide on restaurant marketing

Common cafe business plan FAQs

Let’s take a look at some common questions asked about cafe business plans:

How profitable is owning a cafe?

Owning a cafe can be profitable if you manage costs effectively and attract a steady stream of customers.

Profit margins in the cafe industry typically range from 5% to 15%, depending on factors such as location, menu pricing, and operational efficiency.

To maximize profitability, focus on high-margin items like specialty drinks and pastries, manage labor costs, and build a loyal customer base through excellent service and marketing.

What should be included in a business plan for a small cafe?

Your business plan should include an executive summary, a market analysis, and detailed financial projections.

Outline your cafe's concept, target market, and USPs.

Financial projections should include startup costs, revenue forecasts, and a break-even analysis.

Also, include an operational plan that details daily operations, staffing requirements, and supplier relationships.

What are some things I should know before opening a coffee shop?

Before opening a coffee shop:

Think about the importance of location since foot traffic and accessibility are crucial for success.

Familiarize yourself with local regulations and licensing requirements.

Develop a deep understanding of your target customers and their preferences.

Identify the USP that sets you apart from the competition.

Be prepared for the demanding nature of the business, including long hours and the need for consistent quality and customer service.

How do you calculate profits for a cafe business plan?

To calculate profits for your cafe business plan, subtract your total expenses from your total revenue.

Start by estimating your monthly revenue based on your expected sales volume and average transaction value. Then, calculate fixed costs, such as rent, utilities, and salaries, as well as variable costs, like ingredients and supplies.

Include other expenses, like marketing, maintenance, and equipment depreciation.

Your profit is the remaining amount after you’ve deducted all expenses from your total revenue.

Find out how Lark and Mama Lou’s created restaurant success

Let Lark help you run a profitable cafe or coffee shop

We hope our detailed business plan descriptions and examples have given you everything you need to get going on your cafe business plan.

When you’re getting ready to launch your new cafe, Lark can help.

At Lark, we have extensive experience helping food and beverage businesses flourish . Our state-of-the-art project and workflow management solutions, intuitive form builder , attendance management software, built-in communication apps, and food and beverage templates will make managing your establishment a breeze.

To learn more, try Lark for free .

Table of Contents

Interested in Lark?

Contact us to get a customized demo today

Schedule a demo

Try for free

Keep reading

Back to all posts

Restaurant Startup Costs: What Are They in 2024?

Learn about the expenses involved in opening a restaurant. We outline startup costs in detail and share tips for stretching your startup dollars.

13 min read

Compressed Workweek: Can This Schedule Work for Your Business?

Learn about the compressed workweek system and whether it’s right for your business. We cover the pros and cons, key considerations, and best practices.

10 min read

Pay less to get more today

No more redundant tools. Save time and costs.

Get Lark today

Download Lark

Users love us

Open Platform

Savings Calculator

Lark vs. Slack

Lark vs. Zoom

Lark vs. Whatsapp

Lark vs. Teams

Lark vs. ClickUp

Lark vs. monday.com

Lark vs. Airtable

Lark vs. Trello

Lark vs. Wrike

Lark vs. DingTalk

Lark vs. Base.vn

Become a Partner

Partner Directory

Alternatives

Slack alternatives

Zoom alternatives

Discord alternatives

Airtable alternatives

Notion alternatives

Lattice alternatives

Project Management

Human Resources

Sales & Marketing

Students & Educators

IT Managers

Build with Us

Developers/Applications

Integrations/APIs

Property Management

Manufacturing

Media & Entertainment

Lark for Startups

Global Collaboration

Food & Beverages

Professional Services

Customer Stories

Help Center

Lark Academy

Lark Topics

Security & Compliance

Privacy Policy

Customer Terms of Services

User Terms of Services

Acceptable Use Policy

Cookie Policy

Cookie Settings

© 2024 Lark Technologies Pte. Ltd. Headquartered in Singapore with offices worldwide.

Cafe Business Plan Template

Written by Dave Lavinsky

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 Business Plan for a Cafe

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.

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how our professional business plan writers can create your business plan for you. Other Helpful Business Plan Articles & Templates

• Business Ideas
• Registered Agents

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

Updated:   January 26, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

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.

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.

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.

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.

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.

You Might Also Like

February 7, 2024

0  comments

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

The wellness industry has experienced explosive growth over the past several years. The global ...

January 15, 2024

How to Start a Summer Camp in 14 Steps (In-Depth Guide)

The summer camp industry has seen steady growth over the last 5 years. According ...

January 12, 2024

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

The U.S. zoo and aquarium industry was valued at nearly $3.1 billion in 2023. ...

January 9, 2024

How to Start a Rage Room in 14 Steps (In-Depth Guide)

Ever felt like smashing something when you’re angry or stressed out? You’re not alone. ...

Check Out Our Latest Articles

How to start a dog clothing business in 14 steps (in-depth guide), how to start a vintage clothing business in 14 steps (in-depth guide), how to start a bamboo clothing business in 14 steps (in-depth guide), how to start a garage cleaning business in 14 steps (in-depth guide).

Cafe business plan template + PDF

In this article, you will find an exemplary business plan for a cafe, offering a detailed framework to guide you through establishing and managing your own cafe. It's crucial to understand that while all names and numbers in this cafe business plan template are invented for illustrative purposes, they can be adjusted to suit the specific needs and realities of your cafe business.

Additionally, for ease of use and customization, a "Cafe Business Plan PDF" is available for download. This article serves as an invaluable tool for entrepreneurs who are keen on developing a robust and practical strategy for launching or growing their cafe, providing a clear roadmap and comprehensive insights into the industry.

How this cafe business plan sample was created

To create a personalized business plan for your cafe, all you need to do is click on "Get your business plan" . You'll be prompted to answer a few questions about your cafe, providing essential details about your business. Our advanced AI system will then use this information to generate a comprehensive business plan tailored to your specific needs and goals. This process takes only 5-10 minutes, after which you receive a fully structured plan. The beauty of this system lies in its flexibility; you can edit and customize the plan to perfectly align with your vision. Once finalized, you have the option to save it to your computer, ensuring that your cafe/restaurant roadmap to success is just a few clicks away.

Cafe business plan sample

Executive summary, business description, market research and analysis, swot analysis.

• Organizational Structure and Management Team

Products or Services

Marketing and sales strategy, operations plan, financial projections, risk analysis.

In today’s bustling cafe industry, standing out entails more than a robust business model; it calls for a compelling executive summary that captures the essence and potential of the venture. BizCafe is built upon this very vision—a cutting-edge oasis for young professionals and students seeking a coffee experience that is both gourmet and homely, in addition to an efficient workspace. Positioned in the heart of New York, BizCafe is poised to challenge the conventional cafe atmosphere by combining specialty coffees, artisan teas, delectable pastries, satisfying light meals, and indispensable modern amenities like high-speed Wi-Fi and charging stations.

Despite challenging industry dynamics such as fierce competition, economic volatility, supply chain obstacles, and shifting consumer tastes, BizCafe’s strategic plan remains solid. It thoughtfully balances the appeal of our signature products and brand-building initiatives, employing distinctive branding and customized loyalty programs to build a devoted customer base. These offerings are intended to meld effortlessly into the lives of our target clientele, creating a sense of community and loyalty. In the event of heightened risks, our backup plans include diversified menus, local sourcing, and continued product development.

Within a varied competitive landscape that includes Java Junction, The Study Spot, Green Leaf Tea House, and Urban Grind, understanding different market positions is crucial for honing BizCafe’s competitive edge and creating a space that is both unique and adaptable.

Operations form BizCafe’s core, with exhaustive planning that ranges from securing key supplier partnerships to appointing trained baristas and support staff committed to unmatched customer service. Our operational strategies underscore regular quality control, smart inventory management, adhering to health and safety standards, and fiscal responsibility with recurrent assessments and careful budgeting.

Our financial projections suggest a positive outlook. We anticipate reaching a break-even point by the end of the first year and foresee a promising 20% revenue increase by the third year. With the projected growth, we aim to pursue expansion and diversification, setting a course towards a $1 million revenue milestone by the end of the fifth year.

Marketing and sales are integral to introducing and embedding the BizCafe brand in public discourse and consumer habits. An ingenious blend of social media activity, loyalty incentives, local events, and partnerships with nearby businesses is designed to uphold and celebrate the BizCafe ethos. This is supported by a robust digital foundation that ensures convenience through online ordering platforms and sustains community engagement with impactful email communication.

Driving this promising enterprise are seasoned leaders such as Co-Founders & CEOs Alex Taylor and Jordan Lee, who bring a wealth of experience in business management and finance. Operations Manager Riley Kim and Marketing Director Casey Morgan complete the leadership team, guaranteeing seamless operations and strong, consistent brand visibility.

As an LLC, BizCafe benefits from the agility needed to adeptly manage the unpredictable nature of the cafe industry, all while taking advantage of a tax structure that encourages growth.

In conclusion, this executive summary portrays BizCafe not just as another cafe in New York’s tapestry but as a beacon in its cafe culture—a sanctuary for today’s discerning, digitally connected patron and a strategic investment opportunity for tomorrow’s wise investor.

Located in the bustling heart of New York, BizCafe is primed to become the go-to destination for the city's energetic young professionals and the academically inclined student population. Designed as a Limited Liability Company, BizCafe harmoniously balances the vibrancy of an artisan coffee hub with the tranquility of a focused work sanctuary. This innovative cafe caters to the tastes and lifestyles of customers aged 20-35, offering an array of specialty coffees, artisan teas, as well as a handpicked selection of pastries and light meals.

Embraced by the convenience of high-speed Wi-Fi and charging stations, BizCafe is not just a place for savoring a cup of freshly brewed java but is also an inviting space for clients seeking a comfortable place to work, study, or unwind. With a central location, this cafe capitalizes on the fast pace of New York City, becoming a social landmark that facilitates productivity and leisure.

BizCafe prides itself on mitigating anticipated industry risks. Facing competition from establishments such as Java Junction, The Study Spot, Green Leaf Tea House, and Urban Grind, BizCafe differentiates itself through its unique branding and customer loyalty programs. In the event of increased rivalry, the management plans to diversify the menu and enhance loyalty incentives to retain customer fidelity. Economic fluctuations will be met with competitive pricing and value deals, while supply chain disruptions are countered with established relationships and buffer stock, complemented by local sourcing as a contingency measure.

Looking to the next 3-5 years, financial projections are optimistic. The first year is focused on reaching the break-even point, with a revenue aim of $500,000, setting the stage for profit as the brand gains recognition. Steadying itself for moderate growth, BizCafe expects to increase revenue by 20% annually in years 2 and 3 and is planning an expansion that may include a second location or enriched services by year 5, hoping to surpass the $1 million revenue mark.

Within the café, operations pivot around supreme supply chain management, premium staffing, unwavering quality control, and sophisticated inventory management. Staff are selected for their skills and commitment to customer service, with a rotational shift system ensuring comprehensive coverage. In-house financial and customer service processes are evaluated routinely to align with the cafe's high standards.

The marketing and sales strategy is equally robust with a dynamic approach to embrace digital platforms. Social media marketing, loyalty programs, community engagement, collaborations, and a formidable digital presence all form pillars of BizCafe's promotional endeavors. Customized email marketing further personalizes the brand experience, resonating with the targeted clientele.

Leadership is the backbone of BizCafe's operation. Co-Founders Alex Taylor and Jordan Lee embody the essence of keen business acumen and financial mastery, while the operational finesse of Riley Kim and Casey Morgan's marketing expertise provides the momentum behind customer-centric initiatives.

Together, the tapestry of a digital-friendly environment, savvy marketing, responsive risk management, and a crystalline growth trajectory present BizCafe as an enterprise that blends traditional café culture with the innovative spirit of modern entrepreneurship. With a client base that revels in quality and a company ethos grounded in adaptability, BizCafe is on the verge of becoming a cornerstone in the cafe industry, directing its compass towards success in the years to come.

In a city renowned for its perpetual motion and varied tastes, BizCafe emerges as an innovative player in the cafe industry. Market research indicates an uptick in demand for spaces that offer both premium refreshments and conducive environments for work and socialising. By focusing on the 20-35 age group, BizCafe taps into a market niche of young professionals and students who seek quality, convenience, and experience in their choice of hangout spots.

Competition within New York's café landscape is intense but distinct. Java Junction is a chain with a time-efficient service model that resonates with customers on-the-go. BizCafe's strategy of personalised service and loyalty programs sets it apart, fostering a unique community feel and customer retention. The Study Spot, with its quietude and scholastic environment, draws in a specific crowd; however, BizCafe's added value of specialty beverages and high-speed Wi-Fi conducts a broader appeal. Meanwhile, Green Leaf Tea House and Urban Grind border on niche appeals, the former stressing on health-centric offerings, the latter on aesthetic ambiance. BizCafe strategically positions itself as a service-centric and versatile establishment that can address the shifts in consumer patterns by adroitly adapting its menu and atmosphere.

Navigating potential risks necessitates diligent planning. BizCafe recognises the threat of economic downturns, intense competition, supply chain volatility, and fluctuating consumer tastes. Each risk is counterbalanced by a strategy designed to not only mitigate but also to create opportunity from adversity. Unique branding and diversified menus cater to competition risks, whereas competitive pricing and efficient operational adjustments safeguard against economic variance. A robust supply chain buffer and local sourcing answer the call of disruptive external factors.

Financial projections posit a promising horizon for BizCafe. Upon surpassing the break-even point in its inaugural year, a steady climb in revenue suggests sustainability and growth. By years 4-5, expansion plans are on the horizon, contemplating a secondary venue or enhancing service diversity, paving the path toward a revenue benchmark of approximately $1 million.

BizCafe's Operations Plan is a well-oiled machine, prioritising impeccable supply management, adept staffing and training, and rigorous quality control. Inventory is precisely managed with cutting-edge software, neatly dovetailing with meticulous facility maintenance and customer service excellence. Financial health is overseen by an experienced CFO whose oversight is crucial in navigating the fiscal waters and securing profitability.

The marketing and sales approach is multifaceted. From savvy social media campaigning to targeted loyalty programs and community engagement, BizCafe understands the value of creating a narrative that resonates with its clientele. Partnerships with local enterprises and colleges further entrench the café within its commune, while an efficient digital presence caters to the tech-savvy customer base.

Leadership is paramount in orchestrating this symphony of business components. A management team with a fusion of experience in business administration, operations management, finance, and marketing provides the tactical expertise necessary to propel BizCafe into a mainstay of New York cafe culture.

In summary, BizCafe is positioned to carve out its market share in the energetic New York cafe scene. Through strategic risk management, financial prudence, operational excellence, and innovative marketing, BizCafe is poised for growth and success in the ever-evolving café industry.

Cafe business plan template

Organizational structure and management.

At the heart of BizCafe’s operations is a meticulously designed organizational structure blended seamlessly with a strategic management approach that nurtures the establishment’s vision of providing premium refreshments in a conducive environment for work and relaxation. Responding to the needs of young professionals and students in New York, BizCafe emerges as a bastion of social interaction and productivity, coupled with the indulgence of gourmet coffees and teas.

The organizational design of BizCafe is anchored in clear-cut roles and responsibilities that promote a collaborative work culture while ensuring efficiency at every managerial and operational level. The leadership team is composed of seasoned professionals with complementary skills and expertise, shaping a cohesive unit that drives forward the company’s objectives.

Alex Taylor, the Co-Founder & CEO, brings a decade of hospitality industry experience and astute business management know-how. Alex’s insight into customer service excellence ensures that BizCafe not only meets but exceeds customer expectations. Jordan Lee, Co-Founder & CFO, with an MBA in finance, navigates the fiscal waters with precision, laying down a robust financial groundwork that underpins the projected growth of the venture.

Directing daily activities is Riley Kim, the Operations Manager, whose operational management prowess and in-depth knowledge of the food and beverage sector ensure that the café operates like a well-tuned engine. With a focus on implementing efficient operational workflows, monitoring inventory, and ensuring staff training is up to par, Riley forms the backbone of BizCafe’s organizational prowess.

Bringing the brand to life is Casey Morgan, the Marketing Director. With a rich background in brand development and digital marketing, Casey is instrumental in carving out BizCafe’s space in a crowded marketplace, pioneering innovative strategies that encapsulate the brand’s ethos and resonate with the target audience.

In confronting industry-specific challenges, BizCafe leverages a proactive risk mitigation framework. To counter fierce competition, the café distinguishes itself with unique branding and customer loyalty programs whilst remaining adaptable, with plans to diversify the menu and refine loyalty rewards should the need arise. Economic downturns are confronted with competitive pricing and keen value deals, backed by strategies to slash operational costs without compromising quality. The threat of supply chain disruption is addressed through multi-faceted supplier relationships and the maintenance of a buffer stock; contingency plans include procuring supplies from local purveyors. Changing consumer preferences are met with a continuously evolving menu informed by customer feedback, with rapid adjustments poised as a standby response to market trends. Regulatory changes are attentively monitored and promptly adhered to, with staff training ensuring compliance.

Projected financial targets are optimistic yet grounded, aiming for a break-even in the first year with subsequent annual growth. Strategic planning anticipates not just the upholding of a strong financial position but also the potential for expansion within the next five years, including the prospect of opening a second location or augmenting service offerings, buttressed by solid profitability and a well-entrenched brand reputation.

Marketing and sales imbue BizCafe with vibrancy, harnessing the power of social media marketing, community engagement, and digital outreach to create and nurture a loyal customer community. Loyalty programs incentivize repeat patronage, and partnerships with nearby businesses amplify the café’s presence and appeal.

In sum, BizCafe stands as a paradigm of a well-structured and astutely managed establishment, blending operational excellence and strategic acumen to deliver an unparalleled café experience and robust business performance. With an eye toward sustainability and another on innovative expansion, BizCafe is well-poised to become an emblematic landmark in New York’s coffee culture landscape.

BizCafe, endeavoring to become the favored haunt for the city's spirited young professionals and scholars, is a burgeoning sensation in the cafe industry. Our establishment seamlessly marries the artistry of specialty coffees and artisan teas with freshly crafted pastries and light meals that answer the call of diverse palates. BizCafe is more than just a retreat for coffee aficionados; it is also a nexus for connectivity, offering high-speed Wi-Fi and ample charging stations, crafted for those who yearn for a comfortable niche to work and study.

Our "Products and Services" section is designed to highlight the values and operational tenets that set BizCafe apart in an industry teeming with competition. We present an inviting atmosphere, friendly to both brisk morning commutes and leisurely afternoons. The sumptuous café offers an expanse where work, study, and informal meetings can unfold in comfort—a rarity in the frenetic pace of New York.

Economic downturns, competition, supply chain disruptions, and changing consumer preferences—the cafe industry is no stranger to these potential risks. To safeguard our venture and flourishing brand against these, we employ strategic forethought. Our robust branding and customer loyalty programs act as our shield against competition, with contingency plans to further diversify our menu and bolster those same loyalty offers if the market demands. We counter economic challenges with competitive pricing strategies complemented by precise operational cost management. We have fostered relationships with a broad network of suppliers and stock contingencies to ensure consistent provisions, with local sourcing as a standby plan against supply chain challenges. We keep our ears to the ground, adapting our menu to reflect market trends and customer feedback, always ready to implement rapid adjustments to meet evolving tastes.

Operational efficiency is the linchpin of our endeavor. With a keen eye on quality and customer satisfaction, we meticulously manage our supplier relationships, staff expertise, inventory, facility maintenance, and regulatory compliance. Our Operations Plan details the measures in place to maintain excellence all-round—from sustainably sourced coffee beans to the engaging customer service delivered by our handpicked team of baristas—all to orchestrate the perfect cafe experience.

BizCafe navigates the marketing arena with as much acumen as it brews espressos. Our Marketing and Sales Strategy is a keen fusion of online dazzle and offline substance. We utilize the sticky webs of social media to captivate our audience, forge loyalty through rewards programs, engage our community through vibrant events, and amplify our reach via collaborations with local businesses.

The coalescence of ambition and management comes into play when we shine a light on the key members of our team. Alex Taylor and Jordan Lee at the helm, their seasoned expertise in business management and financial acumen respectively, ensure that strategic direction and economic stability are a part of the company's bedrock. Bolstered by Riley Kim's operational oversight and Casey Morgan's dynamic marketing campaigns, BizCafe is a testament to exemplary leadership and team synergy.

Financial projections for BizCafe elucidate a narrative of growth and success. We anticipate a breakeven by year-end, which sets the pace for progressive revenue increases in the following years, ideally pivoting towards a significant milestone—potentially reaching a projected revenue of around $1 million by the fourth or fifth year.

Summarily, BizCafe is an enterprise that reverberates with the promise of quality, comfort, and connectivity, grounded firmly on the bedrocks of strategic risk management, operational integrity, and customer-centric growth plans. As we chart our course in New York's dense cafe sector, we remain dedicated to serving not just cups of specialty beverages but also fostering a dynamic hub of activity and relaxation that resonates with the city's beat.

Café business plan

In crafting the Marketing and Sales Strategy for BizCafe, we begin by addressing the fundamental attributes that set BizCafe apart. Our diverse offering of premium specialty coffees, artisan teas, savory pastries, and light meals is crafted to align with the tastes of our target demographic: young professionals and students who desire a blend of quality, convenience, and comfort. With facilities like high-speed Wi-Fi and readily available charging stations, we cater to the productivity and connectivity needs of our customers.

Our marketing framework is designed to communicate these core benefits effectively to our target market. Recognizing the inherent risks in a competitive industry, we've laid out strategies to mitigate these and developed contingency plans. Against competition, we counter with our boutique branding and tailored loyalty programs to foster a strong customer base. Should the competitive landscape intensify, we are prepared to diversify our menu and amplify our loyalty program benefits, further differentiating BizCafe.

In dealing with economic downturns, we focus on positioning our offerings as competitively priced without sacrificing quality. We also streamline operations and collaborate with cost-effective suppliers to maintain healthy margins. For supply chain disruptions, we've cultivated relationships with multiple vendors and maintain buffer stock levels. As an alternative if needed, we have contingencies to source locally.

To keep pace with evolving consumer preferences, we employ ongoing dialogue with our clientele, maintaining flexibility to adapt our offerings swiftly. To ensure readiness for any regulatory changes, we maintain an informed and proactive stance, with training programs to quickly bring staff up to speed on new requirements.

Our approach to market penetration and growth is multi-faceted. We blend organic and paid strategies, including:

• Social Media Marketing : We prioritize engagement on platforms like Instagram and Facebook, where our visual content can shine and resonate with the younger audience. We plan to utilize targeted ads, influencers, and content marketing to bolster our online presence and drive foot traffic.
• Loyalty Programs : We leverage loyalty programs to maintain high customer retention rates, offering rewards that incentivize repeat visits.
• Community Engagement : We understand the value of an integrated community; hence, we host events and workshops aimed at building relationships and encouraging networking within our space. These events range from coffee tastings to productivity workshops, appealing to our demographic of professionals and students.
• Collaborations with Local Businesses and Educational Institutions : Partnering with like-minded businesses and local colleges allows us to extend our reach through cross-promotion while also tapping into existing networks of potential loyal customers.
• Digital Presence and Online Ordering : Given the proclivity of our audience for digital convenience, we maintain a strong digital presence through a user-friendly website and online ordering capabilities for pickups and deliveries.
• Email Marketing : Through carefully curated newsletters, we share updates, promotions, and exclusive offers to maintain engagement with our existing customer base, ensuring that BizCafe remains top-of-mind.

In parallel with these efforts, we recognize the need for a firm foundation. The organizational structure of BizCafe, an LLC, offers flexibility in management with personal liability protection for the owners. Our key management team members, each expert in their field, ensure operations align with strategic goals.

In summary, the Marketing and Sales Strategy for BizCafe is robust, diversified, and perfectly tailored to our target customer's lifestyle. It intertwines BizCafe’s core service offerings with innovative promotional tactics that are set to carve out a significant market share, promising growth, and an irreplaceable spot in our community's daily routine.

BizCafe, nestled within the vibrant streets of New York, is set to reinvigorate the traditional café experience by aligning it with the contemporary lifestyle and preferences of our target market—students and young professionals aged 20-35. Our operations plan is conceived to underpin this dynamic business model by ensuring efficiency, quality, and customer satisfaction.

Our strategic location—a nexus of cultural diversity and a hub for millennial activity—provides BizCafe with the advantage of tapping into a rich customer base yearning for a unique café experience. The provision of high-speed Wi-Fi and charging stations distinguishes us from traditional coffee shops, catering to patrons who seek a conducive place to work or study while indulging in our specialty coffees, artisan teas, and an assortment of pastries and light meals.

Addressing the operational execution, BizCafe will adopt a meticulous approach towards supply management. We shall form strategic alliances with reputable local suppliers to ensure a consistent supply of premium-quality coffee beans, tea leaves, and fresh ingredients for our culinary offerings. These partnerships will enable us to maintain our commitment to quality and sustainability—a fundamental trait of the BizCafe brand.

We recognize that our staff are the ambassadors of our brand. Hence, we will employ skilled baristas and support staff who exhibit a combination of technical expertise in coffee-making and a passion for customer service. A rotating shift system will be implemented to optimize staff utilization across our business hours, ensuring that our service quality does not waver during peak times.

In our quest for excellence, quality control remains paramount. Routine training sessions will be conducted to educate our staff on food safety and the meticulous preparation of our beverages, thereby upholding our promise of consistently high-quality products. We shall leverage advanced inventory management software to monitor stock levels, minimize waste, and streamline the replenishment process.

Realizing the necessity of maintaining an inviting and operational facility, we commit to routine maintenance checks of our café space and the upkeep of our coffee-making equipment. This ensures a pleasurable ambience for our customers and uninterrupted service delivery.

Our financial management, spearheaded by our CFO, will involve regular reviews and proactive budgeting to keep our financial goals on track. This financial foresight, coupled with the implementation of a comprehensive customer feedback system, will enable us to respond adeptly to market demands and elevate our service offerings.

Health and safety compliance is non-negotiable. We pledge to adhere rigorously to local health and safety regulations, conducting regular staff training and audits to foster a safe environment for both our patrons and our team.

BizCafe’s operations plan is not merely a blueprint for daily management but a reflection of our commitment to excellence in providing a compelling café experience. With this at our core, we set forth on a path to build BizCafe into a revered brand synonymous with quality, innovation, and unmatched customer service.

Cafe business plan example

The Financial Projections section provides a forecast that is essential for understanding BizCafe's potential for growth, profitability, and financial stability. This forecast is based on a comprehensive analysis of the current market, comparable business models, consumer behavior, and the broader economic climate. While projections inherently contain assumptions and estimations, they aim to present the most probable outcomes given the business environment and strategies in place.

BizCafe’s financial journey commences with the strategic objective of reaching its break-even point by the end of the first operational year, which aligns with projected revenues of approximately $500,000. Achieving this milestone will signify the successful penetration of BizCafe into the cafe industry and establish a strong foundation for subsequent growth. To facilitate this target, marketing efforts will be ramped up to raise brand awareness and drive traffic to the storefront. Cost management will also remain at the forefront, ensuring expenses are aligned with our growth strategy.

The following years, two and three, are projected to herald a period of steady growth. With established brand recognition and an expanding loyal customer base, we anticipate revenue growth of approximately 20% annually. This growth will be driven by a combination of factors, including an increased adoption of BizCafe's loyalty program, the introduction of new menu items in response to market trends, and strategic marketing campaigns designed to expand our reach. During this period, we anticipate revenues to reach approximately $720,000 by the end of year three, and we project improvement in profit margins due to enhanced operational efficiencies and economies of scale.

Years four and five mark the expansion phase for BizCafe. Fortified by a strong, loyal following and increased cash flows, this chapter will explore new avenues for expansion, which may include the opening of a second location or diversifying service offerings to cater to additional segments, like corporate catering or evening social events. These growth opportunities could further augment revenue, with a possibility of surpassing $1 million by the close of year five.

Throughout this five-year span, BizCafe will remain steadfast in executing our marketing and sales strategies to support these financial goals. Our multi-channel approach, which includes establishing a substantive digital presence, engaging with the community, partnering with local businesses, and consistent brand messaging, will be instrumental in driving sales and increasing profitability.

In preparing these financial projections, we also recognize and plan for potential risks and have formulated mitigation strategies. From the outset, BizCafe will establish a contingency reserve to safeguard against unexpected economic downturns, competitive pressures, or supply chain disruptions, ensuring operational stability and financial resilience.

The projected performance is reliant on the strategic execution by our experienced management team, who will maintain vigilant oversight of financial health. CEO Alex Taylor will lead the charge with a focus on cultivating a high-performing team and elevating the customer experience, while CFO Jordan Lee will enforce rigorous financial controls to safeguard against overspending and cash flow shortfalls.

In summary, BizCafe’s financial projections are rooted in a blend of conservative assumptions and strategic optimism. Our envisioned growth trajectory capitalizes on market opportunities and prudent financial management, positioning BizCafe as a compelling new entrant in the New York cafe sector with robust prospects for enduring success.

Cafe business plan

Risk management is a critical component for the success of any business, and BizCafe is no exception. Our risk analysis outlines potential challenges that BizCafe may face and establishes mitigation strategies and contingency plans to navigate these risks effectively.

Competition

The café sector in New York is highly competitive, with several key players such as Java Junction, The Study Spot, Green Leaf Tea House, and Urban Grind already established in the marketplace. Each competitor brings strengths to the table: Java Junction's wide variety of coffee blends appeals to busy professionals; The Study Spot attracts students and academics with a quiet atmosphere; Green Leaf Tea House draws in health-conscious clientele with organic offerings; and Urban Grind is favored for its trendy ambiance among young adults.

To mitigate this risk, BizCafe’s strategy hinges on unique branding and building a strong customer loyalty program that incentivizes repeat visits. Our contingency plan includes diversifying our menu options and enhancing loyalty programs to retain customers and attract new ones, even in a saturated market.

Economic Downturns

Providing luxury discretionary products such as specialty coffee, economic downturns could pose a significant risk to BizCafe’s profitability. Customers may cut back on non-essential spending during these periods.

Mitigation for this risk involves offering competitive pricing and creating value deals that are attractive to customers looking for affordable luxury. Our contingency includes reducing operational costs, such as renegotiating leases or finding cost-effective suppliers without compromising the quality of our products.

Supply Chain Disruption

Supply chain volatility can affect the availability of critical inputs like coffee beans, specialty teas, and baked goods. This risk could be caused by global events, natural disasters, or other unforeseen disruptions.

To counteract this, BizCafe will establish relationships with multiple suppliers and maintain a buffer stock to safeguard against short-term disruptions. The contingency plan focuses on developing local sourcing alternatives to reduce dependency on distant supply chains.

Changing Consumer Preferences

Consumer tastes in the food and beverage industry are constantly evolving. Failure to adapt to these changes can result in loss of market share.

Our approach includes staying abreast of industry trends and customer feedback to adapt our menu accordingly. As a contingency measure, BizCafe is prepared for rapid menu adjustments and the roll-out of new products, keeping our offerings fresh and aligned with customer preferences.

Regulatory Changes

Operating in the food and beverage industry, BizCafe must comply with numerous regulations concerning health and safety, labor laws, and food standards. Regulatory changes could impose additional costs or require operational adjustments.

Our mitigation strategy involves staying informed of regulatory changes and ensuring full compliance. Should significant regulatory changes be implemented, our contingency plan includes swiftly revising operational practices and investing in staff training to meet new requirements.

Financial Management

BizCafe’s financial health is paramount to its success. Poor financial management could lead to cost overruns, inadequate cash flow, and ultimately, business failure.

To mitigate this risk, regular financial reviews and strict budgeting practices will be instituted, overseen by our experienced CFO, Jordan Lee. Our risk-averse financial strategy involves conservative projections with room for agile adjustments to the market’s ebbs and flows.

In conclusion, BizCafe's risk analysis is comprehensive, taking into account a multitude of factors that could influence the café's success. By employing proactive mitigation strategies and having robust contingency plans, BizCafe is poised to address these risks effectively while remaining focused on delivering exceptional service to our target market.

Coffee shop business plan

More business plan templates.

Tire shop business plan

Sandwich shop business plan

Laundromat business plan

• Sample Business Plans
• Food, Beverage & Restaurant

Cafe Business Plan

Need help writing a business plan for your cafe? You’re at the right place!

We have helped thousands of entrepreneurs successfully create their business plans with ready-to-use templates and step-by-step guidance.

To help you get started, here’s a sample cafe business plan to use as inspiration. You may use it to outline your business concept, identify target customers, outlay your marketing plan, and project financials.

Sounds good? Let’s head straight to Sip and Savor’s cafe business plan.

1. Executive Summary

Business Name : Sip & Savor Business Location : New York City, NY, USA

Business Description

Sip & Savor is a cozy cafe in New York City. We chose this spot to serve both locals and tourists looking for a peaceful break from the city’s chaos.

Our cafe has a serene ambiance, a simple design, and a touch of greenery to create a welcoming atmosphere for people to relax, work, read, or simply enjoy great coffee.

Mission Statement

At Sip & Savor, we’re all about providing a peaceful escape in New York City. We want to offer fantastic coffee, delicious food, and a welcoming place to connect. Our mission is to create a peaceful environment for everyone who walks through our doors.

Our vision for Sip & Savor is to be a one-of-a-kind cafe, a place where people can find tranquility, inspiration, and real connections. We aim to be a beloved local spot while expanding to other vibrant neighborhoods across the city.

Market Research

Industry Analysis

The cafes in New York City are thriving, with people always searching for unique coffee experiences. Coffee consumption in the morning is a ritual for many Americans, so this industry is thriving.

Competitive Analysis

We have studied our local competitors, and we know that we stand out by focusing on quality and maintaining a serene ambiance.

Customer Analysis

Our target audience includes professionals, students, artists, freelancers, and tourists searching for a nice cozy place to have coffee and snacks alone or with their friends.

Cafe Menu and Other Offerings

Sip & Savor serves specialty coffee and teas, including pour-over coffee, signature espresso drinks, and certain loose-leaf teas. Apart from that, we also offer pastries, sandwiches, and salads.

Marketing and Sales Strategy

We’ll use social media, local partnerships, and community events for the brand awareness of Sip & Savor. Besides that, our loyalty programs and events will make repeat customers feel like a family.

Unique Selling Proposition

Sip & Savor is located in a high-foot area of New York City, with seating for 40 guests.

We’re investing in high-quality coffee equipment and partnering with local suppliers. Also, our team includes skilled baristas, kitchen staff, and friendly front-of-house staff.

Financial Plan

Our estimate for initial startup costs is $200,000, with revenue projections showing steady growth over the first three years.

We are expecting to break even within 6 months of operations. To get things going, we are seeking $300,000 in funding to ensure that our startup costs and working capital for the first year are covered.

We are excited to start our Sip & Savor cafe and invite potential investors to join us in this journey.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Description

Business concept.

Imagine a place where the fragrance of freshly brewed coffee mixes with soft live music. At Sip & Savor, we are not just serving coffee, we are creating an experience for all our guests.

Our menu is a combination of both global and local tastes. From rich signature coffees to delicate artisan pastries, each dish on the menu is thoughtfully chosen to make our guests feel comfortable.

Legal Structure

Sip & Savor is legally organized as a Limited Liability Company (LLC). What does that mean for you? It means we’re committed to operating responsibly and protecting both our customers and our team.

We have all the necessary permits and licenses to ensure a smooth and lawful operation.

Location Analysis

Why did we choose New York City? Well, it’s because we believe that everyone, from busy professionals to curious tourists, deserves a peaceful oasis.

Our cafe is perfectly placed in the middle of the city, where the vibrant streets meet the quiet corners. We’re here to provide refreshments to all who pass by.

Sip & Savor is the idea of Jack Brown, a passionate coffee enthusiast with a dream of creating a space where people can relax with classic teas, coffees, and refreshing snacks.

Jack is a gifted barista with 12 years of experience to ensure that Sip & Savor becomes your favorite spot in the city.

Step into Sip & Savor, and you’ll find a peaceful spot with soothing colors, comfy chairs, and a touch of greenery. It’s your place to relax, work, catch up with friends, or simply unwind with a cup of exceptional coffee.

Our Offerings

We’re not just about the ambiance; we’re passionate about coffee and good food too!

Our menu features carefully crafted coffee and tea drinks, along with delicious pastries, sandwiches, and salads made with local ingredients. Every bite and sip is designed to bring a smile to your face.

Why Sip & Savor?

Our commitment to serenity, quality, and genuine connections sets us apart. We don’t just serve coffee; we create moments. Whether you’re starting your day, taking a break, or looking for inspiration, Sip & Savor is where it all begins.

Future Goals

It is just a start for Sip & Savor because we have multiple dreams and goals. In the coming years, we aim to:

• Expand our presence in other high-foot neighborhoods across the city.
• Continue sourcing the finest coffee beans and local ingredients.
• Implement sustainable practices to minimize environmental footprint.

At Sip & Savor, we’re not just serving coffee; we’re creating an experience that you’ll want to revisit time and again.

3. Market Analysis

Industry overview.

The cafe industry in New York City is vibrant and ever-evolving. It’s a city known for its coffee culture and a population that enjoys the coffee experience.

With a strong coffee culture, the cafe industry is always in demand and thriving.

Trends and Opportunities

Rising Coffee Culture

Coffee is no longer just a beverage, it has become a culture now. New Yorkers love specialty coffee and are eager to explore new flavors and brewing methods.

Health-conscious Consumers

The demand for healthier and sustainable food & beverages is increasing, not only in New York, but the whole United States. So, customers are seeking cafes that offer organic and locally sourced ingredients.

Remote Work Culture

After the pandemic, remote work has become the new norm. So with the rise of professionals working from home, the demand is there for the cafes that allow work. This way Sip & Savor fits the demand perfectly and has become an ideal setting for remote workers.

Community and Connection

Customers are not only looking for coffee all the time, sometimes they want to be a part of a community where they can belong. Thus, through various events and workshops, we will build a community.

Target Market

Our target market includes:

• Professionals : Seeking a peaceful environment to work or unwind.
• Students : Looking for a cozy study spot.
• Tourists : Exploring the city and craving an authentic New York cafe experience.
• Creatives : Finding inspiration in a serene atmosphere.
• Locals : Building a sense of community in their neighborhood.

Market Potential

With the increasing trend of having a calm ambiance and connection to the community, Sip & Savor is positioned to capture a share of the market. New York presents ample opportunities for the growth and expansion of the cafe.

The cafe industry in New York City is growing, with a strong demand for quality coffee and welcoming spaces. Sip & Savor’s concept and commitment to quality make us more than capable enough to cater to the preferences of our target audience.

Sip & Savor faces competition from a diverse range of cafes and coffee shops in New York City. However, our unique selling proposition (USP) sets us apart:

• Sip & Savor is dedicated to creating a calm atmosphere, offering an escape from the urban hustle.
• Our commitment to quality coffee, locally sourced ingredients, and a warm community vibe distinguishes us from competitors.
• We prioritize customer engagement and exceptional service, ensuring that every visit is memorable.

4. Products And Services

At Sip & Savor, we take pride in curating a menu that elevates your coffee experience and satisfies your cravings.

Catering and Events

We offer catering services for events, meetings, and various gatherings providing beverages and other preferred snacks to the demanded location.

Sip & Savor hosts regular community events, including open mic nights, art exhibitions, workshops, and other events to bring like-minded people together.

Cozy Atmosphere

Our cafe provides a welcoming ambiance, ideal seating for remote work & meetings, and delicious beverages plus food.

We also provide free Wi-Fi to stay connected with everyone while you enjoy your time at Sip & Savor.

Sustainability and Responsibility

We are committed to eco-friendly practices, from sourcing ethically grown coffee beans to reducing waste through recycling and composting.

We also prioritize partnerships with local suppliers and artisans to support the community and promote sustainability.

Retail Coffee Beans and Merchandise

Take a piece of Sip & Savor home with you by purchasing our premium coffee beans or branded merchandise.

5. Sales And Marketing Strategies

Our marketing and sales strategy is built around creating awareness, creating a sense of community, and ensuring a steady flow of satisfied customers.

Online Presence

We maintain an informative and user-friendly website that shows the menu, events, and ambiance of the cafe.

Additionally, we maintain active profiles on social media platforms with regular posting featuring any special events and customer feedback.

Community Engagement

Sip & Savor hosts various events, workshops, and different open mic nights. We also offer loyalty programs to provide extra benefits to our regular customers with discounts and exclusive offers.

Sales Strategy

We promote our catering services for corporate meetings, events, and private gatherings. We also regularly introduce seasonal specials on a rotational basis to keep our menu fresh.

Our staff is trained to suggest complementary items to customers, such as pairing a pastry with a specialty coffee.

Our marketing and sales strategy is about building a loyal customer base and creating experiences.

6. Operations Plan

Facility and equipment.

Our café space spans approximately 900 square feet, providing seating for 40 guests.

We have invested in high-quality coffee equipment, including espresso machines, grinders, and brewing tools, to ensure consistency and excellence in our coffee offerings.

The kitchen is equipped with modern appliances for food preparation, adhering to strict hygiene and safety standards.

Supply Chain Management

We have established relationships with local suppliers for coffee beans, fresh ingredients, pastries, and other supplies. Regular communication ensures a steady flow of inventory.

Quality control measures are in place to guarantee the freshness and quality of our products.

Staffing & Training

Our staff consists of skilled baristas, kitchen personnel, and front-of-house staff who are trained to provide exceptional customer service.

Schedules are created to ensure adequate coverage during peak hours, and staff members are cross-trained to handle various tasks.

Food Preparation

Food preparation follows strict quality and safety standards, with an emphasis on using locally sourced and fresh ingredients.

We maintain a rotating seasonal menu to keep offerings fresh and exciting.

Operational Hours

Sip & Savor is open all 7 days from 11:00 A.M. to 11:00 P.M. Special events and extended hours may be offered for community gatherings or specific promotions.

Customer Experience

Customer satisfaction is our top priority. We strive to provide a welcoming atmosphere, prompt service, and a personal touch in every interaction.

Health and Safety

Strict adherence to local health and safety regulations and food handling guidelines is maintained.

Regular cleaning and sanitation routines are implemented, with a focus on maintaining a clean and hygienic environment for both customers and staff.

Technology Integration

Point-of-sale (POS) systems are used for efficient order processing and inventory management.

An online presence, including a website and social media, helps reach and engage customers and promote upcoming events and specials.

Sustainability Initiatives

We are committed to eco-friendly practices, including waste reduction, recycling, and energy-efficient equipment.

Sourcing locally and using sustainable materials for packaging are part of our commitment to minimizing our environmental footprint.

Sip & Savor’s operations plan is designed to provide customers with an exceptional experience while maintaining efficiency, quality, and sustainability.

7. Financial Plan

Estimating the daily number of seats and sales is one of the most important parts of finances. Here, we present the projections of Sip & Savor cafe.

Key assumptions

• We anticipate a steady sales growth, from $380,000 in Year 1 to $460,000 by Year 3.
• Effective management of Cost of Goods Sold (COGS) and operating expenses.
• There is continued demand for quality coffee and a serene environment in New York City.
• Effective marketing and community events to maintain a strong customer base.

Use of funds

It is estimated that Sip and Savor will incur an initial startup cost of $200,000 for remodeling, equipment purchases, stocking up on inventory, and other expenses. In the initial stage, there will be other operational expenses like rent, utilities, employee salaries, and marketing.

Sources of Funds

The founder has committed to invest $140,000 in the business. This investment is crucial to cover many startup costs, including space leasing, renovation, equipment purchase, and inventory stocking.

We have sourced a bank loan of $30,000 to supplement the owner’s investment. It will help the business sustain itself by providing a buffer for operational costs in the early months of business.

Projected Profit and Loss (P&L) Statement

Projected Balance Sheet

Projected Cash Flow Statement

Download the Free Cafe Business Plan Template

Ready to write your cafe business plan, start to finish? Not sure where to begin or download this sample plan? Here you go. Download our free cafe business plan pdf , import data directly into the editor, and start preparing your business plan.

Upmetrics is an AI-powered business plan software that makes business plan creation a breeze with its AI-powered capabilities.

So, what are you waiting for? Get your subscription today!

Related Posts

Coffee Shop Business Plan

400+ Sample Business Plan Examples

Coffee Roaster Business Plan

Food Cafe Business Plan

Business Problem Solving Guide

Top Business Plan Software

Frequently Asked Questions

Why do you need a cafe business plan.

A business plan is an essential tool for anyone looking to start or run a successful cafe. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your cafe.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your cafe.

How to get funding for your cafe business?

There are several ways to get funding for your cafe business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are!

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your cafe, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your cafe business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your cafe business plan and outline your vision as you have in your mind.

What is the easiest way to write your cafe business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any cafe business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Turn your business idea into a solid business plan

Explore Plan Builder

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Open a Cafe: The Ultimate Guide

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

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.

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?

with Fundera by NerdWallet

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.

LLC Formation

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.

On a similar note...

• Restaurant Website Builder

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. (Consider using a coffee shop name generator for more ideas).
• 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)

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

Related Coffee Shop Resources

• How to start a coffee shop with no money
• How much do coffee shop owners make
• Coffee shop names
• Coffee shop name generator

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.

Menubly LLC 8 The Green Suite R, Dover, Delaware 19901

Privacy Policy

Terms of service

Cookie Policy

Profit Margin Calculator

Food Cost Calculator

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.

• Google Docs
• Apple Pages

Size: 25 KB

2. Cafe Business Plan Template

3. Cafeteria Business Plan

Size: 550 KB

4. Cafe Business Plan Example

5. Start-up Cafe Business Plan

Size: 195 KB

6. Sample Cafe Business Plan

7. New Cafe Business Plan

8. Cafeteria Business Plan Template

9. Cafe Business Plan in PDF

10. Outdoor Cafe Business Plan

11. College Cafe Business Plan

12. Cafe Marketing Business Plan

Size: 212 KB

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 .

Text prompt

• Instructive
• Professional

Create a study plan for final exams in high school

Develop a project timeline for a middle school science fair.

How to Write a Coffee Shop Business Plan

Have you always dreamed of opening a coffee shop? Then you’ve come to the right place.

Starting a coffee shop business plan is the first step to success. If you’re planning on raising startup capital by pitching to investors , make sure your coffee shop business plan is ready because they will definitely ask to see it.

If you’ve never seen a coffee shop business plan before, here’s a sample you can use (along with the template below) to get you started. It covers all the basic elements of a proper business plan, including an executive summary, overview and description of a coffee shop business, marketplace information, marketing initiatives, business operations, and financial plans.

In this article, we provide a step-by-step approach on how to write a successful coffee shop business plan. We outline each section needed in a good plan, explain that section’s purpose, and provide an example you can use as a starting point.

6 things to consider before  writing your coffee shop business plan

Before you start actually writing your coffee shop business plan, there are a few things you want to nail down first that will save you time and make communicating your vision a lot easier.

Make sure you can answer each of the following questions:

1. How long should a coffee shop business plan be?

A business plan can be anywhere from a few sheets to hundreds of pages long, depending on the size of your proposed business.

For a relatively small business like a coffee shop it’s best to keep the plan as brief and succinct as possible. We recommend 30 pages or less – especially if you intend to submit it to financial lenders for debt or equity financing. They will be looking for solid research, analysis, and strategy written in a concise form.

2. Who’s going to read your coffee shop business plan?

Take into consideration the audience of your coffee shop business plan. Will you be approaching financial lenders or investors? Or is your plan specifically for you and your management team? Just like creating a marketing plan , you need to adjust your writing style and messaging to match the audience’s interest. Certain sections might need more emphasis over others depending on your primary audience.

3. Where will your coffee shop be located?

If you aren’t ready to choose an exact location for your coffee shop , you should at least know which neighbourhood you’re targeting. The location you choose will determine important elements of your coffee shop business plan, such as your competitive analysis and venue type.

4. What is your venue type?

It’s important that you have a clear idea or concept of the type of coffee shop you want to open . What you need to cover in your coffee shop business plan will depend on whether you’re opening a small intimate cafe, gourmet food stand, or craft microbrewery. These can all be considered coffee shops. Sometimes it’s helpful to create Pinterest boards to help you fully visualize your concept.

5. What are your business goals?

Do you have any ideas of what your short- and long-term business goals are for your coffee shop? Are you going to start with one location and then expand a year after launching? Do you want to start off smaller with a food stand and then, once you have enough sales, open a sister coffee shop in a different neighbourhood? Be as specific as you can when communicating your vision and the goals you’re aiming to achieve.

6. What are your credentials and experience?

Have you ever worked in the coffee shop industry? Do you have any certifications? Consider the skills and experience you have that would give your audience confidence that you’re the right person for the business.

If you’re confident you have the skills and experience, then it should show in the coffee shop business plan. But if you’ve never spent any time working in the foodservice industry, you may want to get some hands-on experience so that, at the very least, you know what you’re getting yourself into.

5 Tips for Writing a Coffee Shop Business Plan

So now you’re ready to start writing your coffee shop business plan. To make the writing process easier for you, here are five useful tips:

• Collect relevant resources (in addition to this article) that will help you when writing. This can include how-to guides, research and trends, and sample business plans – real or imagined. You can use all of these as inspiration and include them in the appropriate sections of your business plan.
• Write down as much as you can without filtering yourself in the first round. Once everything is out, you can then determine which parts are relevant to which part of your business plan.
• Don’t let yourself get stuck on one section. If you get writer’s block, make a note and move on to the next section. You can revisit it later, once you have more information or clarity.
• Use visuals such as graphics and images to clarify your message wherever appropriate. As you write your coffee shop business plan, pull images from any Pinterest boards you created while visualizing your venue and concept.
• All good things take time. So will your coffee shop business plan. Don’t worry if it takes longer than what you were hoping for. As time passes and you continue to work on your plan, you’ll be able to fine-tune your message and express your thoughts in a cohesive and succinct way.

Coffee Shop Business Plan Template

1. table of contents.

Even for a small coffee shop, your business plan is going to be a long document. A table of contents makes it easier for someone to find specific sections as they read through your plan.

2. Executive Summary

While the executive summary should appear at the beginning of your business plan, it’s the last thing that should be written because it’s an overview of the full business plan. It’s the most important part of your business plan and should be no longer than one page. The purpose is to summarize the main points of the plan, which helps save your audience time. They can then review the sections that are of most interest to them if they want to learn more. Remember to keep this section concise yet inspiring.

3. Business Overview

This section should include a list of basic information about your business. Refer to our coffee shop business plan template to see what it should look like when it’s fully fleshed out.

Below are common details that should be included in your plan, especially if you’ll be seeking bank loans or pitching to investors:

• Legal name of business
• Trade name of business (doing business as)
• Business address (or potential business address)
• Nature of business
• Structure of business
• Date business was established
• Current mailing address
• Phone number
• Banking details (branch and banker’s name)
• Social media handles

4. Business Description

This section is where your coffee shop concept comes to life.

It’s time to describe your business in great detail: elements like what the concept is going to look like, where it will be located, and the kind of vibe or brand you’ll be creating. Your business description provides paint a clear picture of your vision and goals.

Here’s what to include in your business description:

Will your coffee business be a sole trader, partnership, limited liability partnership or limited liability company? What people will be involved and what are their roles? Will some wear multiple hats? Be concise – you’ll go into more detail about the team later on.

Your coffee shop concept is your big idea . Take the time to describe why your idea is unique and what differentiates you from other coffee shops. Why should coffee drinkers choose your shop over the one down the street or two blocks over? Also, consider what kind of experience you want to create for your customers. Having a restaurant is not just about what you serve to customers but how you serve the whole experience.

Mission statement

Your restaurant mission statement  is one sentence that describes what your coffee shop will achieve. Think of your end goal as the ultimate driving force behind your business. Your mission statement should be something that can be displayed on marketing materials, so keep it short and straight to the point. It needs to easily express to people what your business is about.

Short- and long-term goals

In this section, you’ll want to mention any relevant personal and/or business goals. Your short-term goals describe your first year as a coffee shop owner. Long-term goals involve bigger picture thinking. They are things like how to scale your business or expand into new markets. Be descriptive in this section, but also realistic (i.e. stay within the scope of your financial projections ).

Menu and services

Include a sample menu and discuss your concept in greater detail. If you’re going to offer catering, delivery, or any other services, also include details about complimentary parts of the business in this section. Describe anything else you’ll be selling, such as pre-packaged foods, canned or bottled drinks, or retail products.

You probably haven’t secured a location or negotiated a lease just yet. No problem. Instead of those details, mention the neighbourhoods you’re considering for your venue and why. Answer the following questions and consider the effects they will have on your business:

• Attraction: Which features of the neighbourhood will affect your coffee shop?
• Competition: What other coffee shops or related businesses are located in the area?
• Demographics: What kinds of people live, work, or visit the neighbourhood?

Describe your concept with as much visual detail as possible. Communicate why these details are important and how they relate back to your brand. If you’re working with a design agency or interior designer, mention them in this section and include their visual proposals or mockups.

Business description summary

This section covers a lot, so briefly sum it all up at the end. The business description tends to be filled with a lot of necessary details, so a summary will help your audience understand the main points.

5. The Marketplace

For this section of the coffee shop business plan, you want to demonstrate that you have thoroughly analysed the target market and can prove there is a demand for your business.

A good way to gather intelligence is to do a competitor analysis . Visit your competition, document their menu items, marketing tactics, business practices, pricing, and brand positioning, then analyze your findings from a variety of different angles.

You can also ask people in your prospective neighbourhood about how businesses perform in that area. By gathering as much information as you can, your marketplace assessment will be realistic and paint a clearer picture of how your business can be successful.

The marketplace section is another lengthy part of the coffee shop business plan, that includes the following components:

Market segment

In this section, you should provide an overview of your target audience. Consider details like demographics, psychographics, and segments of your target market.

It’s time to put your target customers under the microscope, show how well you know them. What types of people will frequent your coffee shop and what similarities/differences do they share? Get qualitative and quantitative data, and reference external resources that provide statistics about your customer segments and any other relevant information. Note that each customer segment within your target demographic will most likely have specific needs.

Market Trends

Include relevant statistics about past and current trends within your targeted marketplace. Anything that relates to the demand for a coffee shop business, as well as social and economic factors that have affected similar businesses in the area. Also mention if you’ve conducted your own research or hired a third-party to conduct research on your behalf.

Competition

In this section, you’ll want to be specific about who you consider to be competition. You’ll have both direct and indirect competition within your chosen neighbourhood. Your direct competitors are the coffee shops that offer similar customer experiences and types of cuisine. Indirect competitors may be different from your coffee shop concept but still compete for your target market’s attention and spend.

Now that you’ve analysed the competition, you should be able to articulate what makes you stand out from the others. What does your coffee shop offer to your target audience that no one else currently provides? Why should someone choose your business over another?

Opportunities

Taking into account your competition and customers, you should see where the gaps lie between supply and demand. Use this knowledge to fine-tune your concept and provide a better option for customers. From the menu to opening hours, whatever your coffee shop can do better than everyone else should be highlighted in this section.

Now consider the flip side: what advantages do your competitors have over your business? What do they offer to the market that your coffee shop doesn’t? Provide rationale as to why your coffee shop faces these barriers and, most importantly, how you’ll tackle them once you’re officially open.

Marketplace summary

Time to sum it all up. Expect this section to be a long one, because you’ve got to summarise everything you’ve outline in regards to your marketplace. Highlight the pieces of information that will have the most impact on your audience, such as the demographics of your target market, advantages, and opportunities.

6. Marketing

You may be an amazing barista who can make a killer cappuccino, but without consistent customers and sales, your business isn’t going to last for very long. You need a marketing strategy to keep people coming through the doors.

In this section, we’ll provide an overview of what to include in your marketing strategy, which you can use later on as the framework for your full restaurant marketing plan .

Positioning

Describe how you’ll appeal to your target customers and stay top of mind. Use the differentiators you outlined in the marketplace section to guide your positioning strategy. What do you offer that your target customers can’t get anywhere else? How will you communicate these offerings?

Describe your pricing strategy and how it compares to competitors. The most common question small businesses owners have is, “How do you know what price to charge?”

Questions that will help you decide on a pricing strategy include:

• What are your food costs? (the total amount spent on food and beverages)
• What are your food portion costs? (the sum total of all ingredients in one menu item)
• What is the market price of similar menu items? (i.e. your competitors)
• How does your pricing compare to the market price?
• How is your pricing competitive?
• What kind of return on investment do you expect with this pricing strategy, and within what time period?

Once you’ve determined your pricing strategy, make sure it aligns with your financials. The prices you charge have to be competitive but still allow you to make a reasonable profit.

Online promotion

• Social Media: If you plan on creating and maintaining social media accounts like Twitter, Instagram, and Facebook, explain how you’ll use them to promote your business and brand.
• Website: Describe your website’s overall concept and how it aligns with your brand. Provide visuals of the main elements and design style. Also, mention if you plan to built the site in-house or pay for professional services.
• Advertising: List all of your paid digital promotions such as review sites, email marketing, and social media ads, as well as any agencies you’ll work with to develop and execute your digital marketing initiatives.

Traditional promotion

Will you be hosting an event for coffee lovers? Running a free coffee for a month contest? What about mailing printed ads to tempt locals with photos of your pastries? It’s always a good practice to have a mix of promotional tactics, so if you plan on utilising traditional channels as well as digital, list all your planned traditional ones here.

Marketing summary

Again, here’s your opportunity to briefly summarise your overall marketing strategy and describe which channels you’ll be investing in the most. Emphasize why your marketing strategy is the best approach for both the type of coffee shop you’re opening and the neighbourhood.

7. Business Operations

You’ve described your vision, the marketplace, and how you plan to market your business. Now it’s time to outline how you’ll actually execute your plan. This means outlining who will operate the day-to-day of your coffee shop.

Describe the main business management categories relevant to your coffee shop and identify the core team members who are going to have responsibility for each category. Introduce everyone on your payroll, from your restaurant consultant to management team to star baristas. List everyone’s qualifications, skills, and responsibilities, placing emphasis on how each role will help you reach your business goals.

List your suppliers according to type. Include descriptions of how each supplier will serve your coffee shop’s needs , as well as their credit and payment terms. This will include everything from food to technology to takeout coffee cups – even landscaping, if you location needs it. Consider how these suppliers may fit into your overall brand, in terms of what quality they are and how they’re sourced.

Since your coffee shop needs insurance coverage , conduct research to determine what’s mandatory. From general liability to workers’ compensation, getting the right insurance will help you sleep at night knowing you’re covered if something goes wrong (a big knock on wood here). Be sure to check with local and national requirements because these requirement may vary. Also, compare quotes from insurance providers. List each type of insurance your coffee shop will need and include what’s covered.

Figuring out what licenses your coffee shop will need is similar to insurance requirements (though this list may be longer). Required licenses and permits can be everything from a business license to food handler permits to music licenses. Start your research as soon as possible by checking your local government office website. List all of the licenses and permits required for your coffee shop and staff in this section.

Business operations summary

Summarize the main points discussed in the Business Operations section. This should be fairly straight forward, as it’s more fact-based than other sections.

8. Financials

The financial plan is the most important section of your coffee shop business plan – especially if you need debt financing or are trying to pitch to investors. Your financial plan has to demonstrate your business’ potential for growth and profitability. To do this, you will need to document your forecast in four main parts:

• Revenue (forecasted sales)
• Controllable costs (food and beverage costs, cost of labour)
• Expenses (rent, supplies, utilities, marketing, etc.)
• Start-up costs (costs related to opening your coffee shop, such as capital improvements and training)

For new businesses, a good rule of thumb is to underestimate revenues and overestimate expenses – the age old “under promise, over deliver” strategy.

We’ve created a forecast within our coffee shop business sample plan to demonstrate what numbers need to be included. Once you understand the sample forecast, you can then create your own forecast sheets and add in your numbers to project how profitable you’ll be.

9. Coffee Shop Business Plan Summary

Your business plan summary needs to tie together the overall message you’re trying to communicate. Use this final section to highlight how your coffee shop is different from what’s currently available in the market. It’s an opportunity for you to reiterate the most important points about your business.

Make sure to include the following sections:

• Why your business will be successful: In a few sentences, repeat how your coffee shop is different and why your business will work.
• What you need to be successful: If you’re asking for funding, repeat that ask here.
• A thank you note: Thank your audience for reading your coffee shop business plan and remind them that you value their time and feedback.

If you’re thinking about opening a coffee shop then creating a business plan needs to be at the top of your priority list. Remember: you’re building a foundation for success. This includes saving money – because you’ll have your financials organized – and being able to actually get funding from banks and investors.

It’s a lot of work, yes. But keep in mind that you’re working toward making your dream a reality. Any time you can put in now, and we highly recommend additional research wherever possible, will benefit you on the other side – from the first cup to that last drop.

More in Operations

The different types of restaurant concepts.

Get started on defining your own restaurant concept

How to Open a Bar Successfully

Learn the fundamentals of how to open a bar successfully

Defining Your Restaurant Target Market

Who do you envision visiting your restaurant?

Most Popular

How Much Does it Cost to Open a Restaurant?

Guide to Buying Restaurant Equipment

Choosing a Restaurant Location

How to start a café or coffee shop

Written and reviewed by:

Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality.

In recent years, the UK had been steadily moving towards the kind of well-established café culture that our European cousins are famous for. These independent brewers have taken a hit due to the ongoing cost of living crisis, but the industry is readying for growth and recovery in 2024.

In April, the UK economy grew by 0.2% thanks to a boost from the nation’s humble hot coffee makers. And, according to an economic report by UKHospitality, the sector has the potential to increase its contribution to create half a million new jobs by 2027.

It’s also now easier than ever to set up a simple store or pop-up with limited equipment – taking payment on your phone using a mobile card reader , for example. This means that starting your own café or coffee shop is becoming an increasingly accessible (and affordable) venture.

Still, future cafe owners need to be aware that consumer behaviour, and buying habits, have changed. Although convenience and cost are still big drivers, brand identity and aesthetic now play a huge part in a customer’s purchase decision – making marketing a crucial consideration for wannabe baristas.

Below, we’ll outline exactly what you need to know to take your café or coffee shop business plan from bean, to cup.

Get the latest startup news, straight to your inbox

Stay informed on the top business stories with Startups.co.uk’s weekly newsletter

By signing up to receive our newsletter, you agree to our Privacy Policy . You can unsubscribe at any time.

Read on to find out more…

How to write a café or coffee shop business plan, market research, financing your café or coffee shop business, concept, branding and design, waste disposal, equipment, utilities and supplies, taking payments, recruitment, regulations, useful links.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

When writing a business plan for a café or coffee shop specifically, you’ll need to consider:

• The overall industry, and how your business will fit into it – are you catering to the growing trend for premium products? Are you offering an independent alternative in an area with a lot of chain brands?
• Competitor analysis – following on from the above, the business plan needs to show a clear understanding of your intended area and customer base, as well as how your café will cater to a gap in the market
• Sales and marketing – for a coffee shop, this means outlining how you plan to price products, along with which items will be available on the menu. Similarly, if you have any ideas for promotions or other purchasing incentives (such as deals or loyalty schemes), include them in this section. See the dedicated marketing section for more information

This is in addition to the standard requirements of any business plan, such as account information and financial forecasts, as well as details of the management structure and operations plans. 

You can learn more about what to include, and get help to create your coffee shop business plan, using our business plan template page.

Sarah Heward, founder and co-owner at The Real Food Caf é tells Startups : “I had to think about the main players in the business and their backgrounds. I then conducted market research before focusing on design, including building a website and menus. My SWOT analysis came next, followed by timeline and financials.

“We made some basic errors – one was getting carried away with our enthusiasm and not doing our homework thoroughly enough, which led to some costly adjustments and mistakes.”

While choosing a convenient location is key, when it comes to running a café, coffee quality is still paramount. With the continued interest in premiumisation and sustainability in the industry, people are becoming increasingly aware of where their coffee is sourced and how it’s roasted. This connects with the growing conscious consumerism movement.

However, while some coffee brands are expanding rapidly, it appears that customers are nonetheless enticed by the intimacy of an independent coffee shop.

Starbucks struggled through the recession, and was forced to close a number of stores across the UK. Fast forward to 2019, however, and the company now has 995 UK stores – the second highest number of outlets for coffee shops in the country. 

While the estimated value of the UK coffee shop market stands at £10.1bn (according to the Allegra Project Café UK 2019 report), there are still opportunities within the sector. Indeed, approximately 95 million cups of coffee are drunk each day in the UK. 

What’s more, high street café culture is booming – according to data published by The British Coffee Association , 80% of people who visit coffee shops make a visit at least once a week, while 16% visit each day.

Cafe owner Heward  continues:  “I feel that the customers are now more into the quality of the coffee and they are conscious about reducing plastic waste. Artisan coffee producers are now more favoured over the bigger brands; people know the blends that they like and where to find it.”

Need help staying organised?

Starting a cafe or coffee shop takes time, and there are a number of steps to take.

We think project management software is a great way to keep everything on schedule. Whether you’re working alone or with other people, you can streamline processes, assign times and track progress to keep everything moving efficiently in the right direction.

Find out which project management tool we think is best .

Premises, equipment, staff… all of these things take money. Fortunately, there are a number of options available if you’re just starting a business and need to raise finance. While many people start businesses using their own savings, or money borrowed from family, there are also various other paths to pursue.

Despite the phenomenal success of Costa and other chains, coffee shops are not the kind of business to set up if you’re expecting a quick multi-million pound exit. Profit margins will only become significant if you open multiple outlets, and even then, your initial costs will be considerable. If you’re feeling particularly ambitious, it may be worth investigating if you can get a business loan to help you get started.

However, if you’re after a lifestyle business which provides you with a modest income, then setting up a coffee shop could be a great decision.

Startup loans – the Startup Loan company is a government-backed scheme, where you can borrow up to £25,000 with a fixed interest rate of 6% p.a.

Business loans – business loans are similar to startup loans, except they are not just for new businesses and don’t have the same caps.

You should also consider how you will keep track of your finances. It’s best practice to use a business bank account to separate your personal and business expenses and income, and you’ll have to if you’re starting a limited company. Nerdwallet compares leading UK business bank accounts if you need to find one.

Consider lighting, layout, and furniture when creating your café’s concept

Managing your money

Starting a business takes money and time, and accountancy software can help with both.

Whether you’re running your cafe alone as a sole trader, or with a staff, you’ll need to stay on top of your finances. If you’re not ready to employ an accountant to help out, then we suggest using an online accountancy tool.

Accountancy software is designed to simplify the complex processes related to money. From tracking your outgoings – whether that is salary or other necessary costs – to managing your taxes, you’ll find any finance process simpler with the right tools in place. Take a look at the accountancy software that we’ve rated best .

Or, take a quick look at our top recommended picks for accounting software that’s best suited to small and fledgling businesses below:

It’s not vital for you to have worked in a café before, but as with any business, industry experience goes a long way . If you don’t have any prior experience, it’s a good idea to spend at least a few weeks working in a similar establishment to the kind you want to open. 

If you choose a business to learn from that’s in a different geographic area, there won’t be any issues with competition, and you’ll find people are surprisingly receptive to offering advice if you’re honest about what you’re planning to do.

When doing her research , Sahar Hashemi , the co-founder of Coffee Republic, spent a day on the Circle Line, getting off at each of the 27 stops to investigate what type of coffee was on offer. It’s important to make sure you’ve spent some time considering the business from more than just a customer’s point of view.

This includes thinking about the type of company you want to create: do you have plans to become a big brand eventually? Or do you want your coffee shop to keep its small and local vibe for the foreseeable future?

And in turn, consider what your café can bring to the scene : whether that’s a focus on a certain type of bean or drink, a particular atmosphere you want to create, or an overarching ethos (e.g. charitable, eco-friendly).

As part of the design process , you’ll need to create a floor plan – you can either hire a professional to do this for you, or use floor planning software to do it yourself. Some of the most well-known software packages are RoomSketcher and CADPro.

Essentially, a floor plan will divide the space into customer-facing areas and dedicated work spaces. Ensure you meet any legal requirements, such as building and accessibility regulations. 

Also, think about the layout of the space, including decoration , along with how your staff will interact with customers. You should also consider what your logo will look like, and where it will be positioned. These are some of the main points to consider when creating your café concept, and contribute to how your coffee shop will be branded and designed.

One of the most well-known coffee brands around the world is Starbucks. For inspiration and advice that could benefit your own brand, think about the beverage giant’s marketing strategy, and the process it followed to create such a remarkable brand .

Ozkan Ozdemir is owner of Emy’s Kitchen, a Turkish cafe based in Islington. Ozdemir tells Startups  said :  “The idea to start Emy’s Kitchen was on our mind for many years. My mum, Emy, is a really good cook and we knew her food would be appreciated by other people too.”

Your café stands to benefit from having a website that provides the key details that your customers need to know. This includes contact information, opening hours, what’s on the menu, and where to find the café.

But a website goes beyond a business listing: think of it as an opportunity to further showcase your brand and reach a wider audience. As your coffee shop grows, you could write a blog that responds to industry developments, or highlights the social good your café is doing. Be sure to include any awards or nominations that your café may receive, too. 

An ‘About us’ section is a great way to connect with customers and create a sense of community. Plus, it’s an opportunity to reinforce your café’s USP. 

If you want to sell products online (such as coffee beans or bespoke cakes), then you’ll need to set up an online shop. Not sure which platform is best for your business? Check out our guide to the best ecommerce platforms for more information.

Also, if you want to host events (whether personal or private hire), then a website will allow you to easily and quickly manage registrations and bookings.

If you’re wondering how to create a business website , it can either be designed professionally, or you can use a website builder to make your own. 

Location and size are key when choosing a premises

The biggest decision you’ll have to make when thinking about how to start a coffee shop is regarding your premises. When looking at prospective sites, location and size are the two main factors you need to consider.

Mintel research found that 79% of Brits purchased an out-of-home hot drink in 2017, while this figure increased to 90% for younger millennials aged 18-27.

Ozkan Ozdemir, founder of Emy’s Kitchen, recalls: “Our biggest challenge was finding a good premises. As the business was a whole new concept we had started, we didn’t actually know which area in London would be best.”

So when choosing a café location, it may be worth looking for a busy urban area with a lot of foot traffic. However, these types of properties are expensive and the amount of square feet you will be able to get will be less than if you choose a more suburban or rural location.

Equally, you may have envisioned a spacious, airy coffee and tea shop with room for large sofas and coffee tables covered in newspapers or books – bear in mind that this may come at a price. 

And as the premiumisation trend continues, it may even be more profitable to forsake the perfect location in favour of investing in better beans. The important thing is to be flexible – focus on visiting a range of properties, big and small, in busy and quiet locations. 

Researching your market is essential: look into the locations that are popular among branded coffee shops, as these are the areas that have been identified for drawing in a good trade. If these shops are too busy during peak times, there could be room for an independent alternative. 

It is also important to know your competition. Consider what the most popular brands are offering, and how you could improve upon that.

While the size of the property you will buy or rent is intrinsically linked to its location, you should know roughly what sort of size and square footage you need. You should also be aware of how many covers (i.e. people seated) it can accommodate, as this will help you when going through property adverts. 

You need to be clear about your requirements: you’ll require a large seating area, a kitchen, a coworking area, a performance space, and/or a small retail section. A rough guide to café sizes is as follows:

Think about what you need from your coffee or tea shop, what is already provided, and what you would need to add yourself. When viewing properties, take the layout into careful consideration. Imagine your service area is fully staffed, and that you’re dealing with a bustling sitting space decked out with tables, chairs, and lots of customers in need of a caffeine injection.

Ozkan adds: “After we had started the business, we realised that the location wasn’t really that important as we have customers travelling from all around London for our breakfasts.”

As part of getting your café up and running, you’ll need to ensure you dispose of its commercial waste correctly. Whether you choose to hire a private company to collect it, or opt for the service provided by your local council, this is an essential part of operations. 

Some providers offer specific services for the hospitality sector, such as collecting glass, food waste, or coffee grounds. To help you choose a provider, read our guide to the best waste management companies . 

Of course, it’s ideal to reduce the amount of waste created in the first place as much as possible. Not only does this help to save money (less waste means fewer collections), but it’s good for the planet, too. Look for a provider that offers coffee cup recycling, and learn more about business recycling in general.

Before you negotiate the lease or purchase of a property, you must also check what commercial classification it currently falls under. If the property does not already have the correct classification for a coffee or tea shop, you will need to get planning permission from your local authority. You can use the Gov.uk licence finder to help you.

A café or coffee shop will most probably be classified as an A3 use class, although this will depend on the local authority. Planning permission for A3 use permits the sale of food and drink to be consumed on premises. For example, if you take on a property with a different class (e.g. a shop, which falls under category A1) and want to use the premises as a café, you’ll need to get the planning permission to change it to an A3 use class. 

To learn more, and to apply for a licence, visit the Gov.uk page on food business registration . 

Here, we outline the equipment, utilities and supplies you’ll need to start your own coffee shop. We’ll also look at the process of sourcing equipment, utilities, and suppliers.

Opening a café or coffee shop requires a lot of equipment. Some of it you’ll need straightaway, while other items you may be able to get further down the line, depending on your business requirements.

Essential kit includes:

• Coffee makers – espresso machines, as well as drip and cafétieres, plus equipment for any other specific drinks you offer e.g. pour over/filter
• Coffee grinders – ensure these are suitable for commercial use
• Cooking devices – e.g. ovens, toasters, sandwich presses
• Cooling and storage – e.g. refrigerators, freezers, shelving/cupboards
• Food containers – for syrup, ingredients, milk etc.
• Security devices – e.g. alarms , CCTV cameras , water detectors  
• Payment equipment – this includes a card reader, an iPad and/or a till, plus software. For more information on payment equipment, read our guide on small business POS systems

You can choose to buy some items outright from the beginning, or you can hire them on a rental or lease basis. For example, espresso machines are notoriously expensive, and it may be more sensible to rent one. By contrast, food containers are likely to be cheaper to purchase. 

Utilities 

You’ll need to get connected with business gas and electricity suppliers – be sure to compare energy suppliers to get the best packages for your small business.

Supplies/suppliers

You’ll need to think about the type of coffee you’ll choose for your café. Consider which (and how many) strengths will be on offer, and do your research about where it comes from and how it’s produced. When choosing suppliers, be sure to do taste tests (with coffee that’s been correctly prepared) so that you can know what your customers will experience. 

Also, check out a supplier’s record – have they won any awards or other industry recognition? Are they FairTrade and/or organic certified? Be sure to review the contract from a potential roaster as well – would you prefer an exclusive supplier, or to be able to use beans from multiple roasters?

Beyond this, the supplies you’ll require will depend on the type of café you run. For instance, the supplies used in a café that specialises in plant-based foods compared to a coffee shop that offers rum and other alcoholic beverages (like London-based Grind ) are going to be very different. 

You’ll also need to factor in non-edible supplies, like plates and cutlery, including both those used in-store and for takeaway. Plus, take into consideration the aprons or other items that your staff will need to wear or use.  

You can find suppliers in the following ways:

• Asking other small business owners for recommendations
• Attending trade shows and industry events (such as Caffé Culture , Coffee Shop Innovation Expo , and European Coffee, Tea & Soft Drinks Expo )

The Real Food Cafe founder, Sarah   Heward, advises:  “Speak to industry leaders with a lot of experience – they will challenge your thinking and not just tell you what you want to hear! Listen to them and prepare to be flexible

A card machine is an essential piece of equipment for your café. While cash is still popular, it’s good business sense to offer customers as many payment options as possible. Read our guide on how to take card payments to learn more.

As well as the device itself, you may need to enable online payment methods, such as a payment gateway . This will be the case if you’re offering online ordering or other ecommerce options.

Baristas, kitchen staff, and waiters are some of the roles to hire for in a café

Any business in the catering or hospitality industries involves hard, physical labour. Unless you can afford to employ staff from the outset, running a café will involve standing on your feet for the vast majority of the day.

Taking on staff is a highly legislated area, so you’ll need to understand and follow regulations on everything from health and safety to managing holiday requests . How much of the process you do yourself, and how much you outsource to a HR company , will depend on you, your vision for your business, and your budget.

Some top tips to consider when recruiting in the hospitality sector include:

• Culture – what type of atmosphere do you want to create, for both your staff and customers?
• Attitude – café staff are the face of your business, so it’s crucial to hire people who reflect its ethos and brand
• Experience – want perfect latte art with every pour? In need of standout dishes? If so, seek out experienced candidates for more skilled roles (such as baristas and chefs) so that your café can offer top-quality produce from the outset (and while other team members receive training)

Product images and other visual, shareable content are great for social media marketing

Emy’s Kitchen owner, Ozkan Ozdemir points out: “The food industry is very hard and you only have 20-30 mins to make customers happy, so you need a good team to achieve that goal.”

There are a number of ways to promote your café, including:

Social media

Loyalty programmes

Traditional marketing

When it comes to marketing a café or coffee shop, be sure to use social media. Creating content tailored to your target audience and the platforms they use is an essential part of social media marketing . 

Whether you film your baristas making the perfect cup of coffee, or share photos that your customers have taken, this type of business is highly visual – making it ideal for social media platforms. But it’s more than that just advertising – social media also offers an opportunity to engage and interact with your customers.

Whether you opt for a card that’s stamped per purchase, or a digital app that allows customers to collect points, loyalty programmes are a key part of marketing a café or coffee shop. 

Not only is this an incentive for people to return to your coffee shop, but if you use a digital system you can collect valuable information as well, such as common orders or popular visiting times.

While it’s easy to focus solely on digital marketing, remember that cafés and coffee shops are often central places in a local community. Be sure to connect with people face-to-face as well.

Options include printing and handing out flyers in your local area, as well as printing banners and posters. Plus, reach out to nearby offices and other companies to let them know you’re new in town.

Currently, there is no law that states you must undertake formal training to open a café or coffee shop. 

However, you must ensure that you and anyone else working with food at your business has the appropriate level of training and/or supervision to do their job properly. The legal responsibility lies with the business owner, so make sure you have all the information you need. 

You’ll need to be clued up on the basic principles of food preparation. Make sure you check out our restaurant and sandwich shop guides, as many of the principles for those kinds of businesses will also apply here.

The Food Standards Agency (FSA) is the body appointed by the government to be responsible for all food safety standards. The FSA can provide you with advice on all food hygiene matters, and offers an information pack called ‘Safer food, better business’ , which will help you to comply with the law and make your premises safe for the public. The publication covers key aspects of serving food, including contamination, cleaning, chilling, cooking, management, and keeping a food diary. 

Your business must also be registered with the local authorities. You can and likely will face inspections in the future, and a failed inspection is bad for your café in a number of ways: either legally (you could be closed down), in terms of business (bad publicity and referrals) or morally (as people could be taken ill or even die from contaminated food). 

In order to avoid such pitfalls, you should follow the Hazard Analysis Critical Control Point (HACCP) . This is an internationally recognised and recommended system of food safety management that focuses on identifying the ‘critical points’ in a process where food safety hazards could arise, and puts steps in place to prevent things from going wrong.

Take a look at the rules and regulations section of our catering guide , as the same restrictions on food preparation will apply. 

Your café or coffee shop will need to be appropriately insured – this is to protect you, as well as your customers. 

There are a range of providers out there who can offer cover that is tailored to your unique business requirements. However, you’ll usually need the following types of insurance:

• Building contents – this protects your café’s stock 
• Business interruption – with this type of cover, you’re insured for profit losses if you’re made to stop trading temporarily
• Employers’ liability – cover for the health and safety of your employees

Sarah Heward, founder and co-owner at The Real Food Café has this positive final message for Startups readers  comments :  “Starting your own business and seeing it go from strength to strength is an incredible sense of achievement. Hopefully, the long-term financial benefits make it all worthwhile.”

Here’s a recap of some of the most useful links from throughout the article:

• Gov.uk Licence Finder
• Gov.uk Food Business Registration
• Safer food, better business
• HACCP guidance

In addition, check out the links below to learn more about relevant industry organisations and events:

• British Coffee Association
• Specialty Coffee Association (UK Chapter)
• Caffe Culture Show
• Coffee Shop Expo
• European Coffee, Tea & Soft Drinks Expo

Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews.

• Featured guides

Written by:

Related articles.

• PRO Courses Guides New Tech Help Pro Expert Videos About wikiHow Pro Upgrade Sign In
• EDIT Edit this Article
• EXPLORE Tech Help Pro About Us Random Article Quizzes Request a New Article Community Dashboard This Or That Game Happiness Hub Popular Categories Arts and Entertainment Artwork Books Movies Computers and Electronics Computers Phone Skills Technology Hacks Health Men's Health Mental Health Women's Health Relationships Dating Love Relationship Issues Hobbies and Crafts Crafts Drawing Games Education & Communication Communication Skills Personal Development Studying Personal Care and Style Fashion Hair Care Personal Hygiene Youth Personal Care School Stuff Dating All Categories Arts and Entertainment Finance and Business Home and Garden Relationship Quizzes Cars & Other Vehicles Food and Entertaining Personal Care and Style Sports and Fitness Computers and Electronics Health Pets and Animals Travel Education & Communication Hobbies and Crafts Philosophy and Religion Work World Family Life Holidays and Traditions Relationships Youth
• Browse Articles
• Learn Something New
• Quizzes Hot
• Happiness Hub
• This Or That Game
• Train Your Brain
• Explore More
• Support wikiHow
• About wikiHow
• Log in / Sign up
• Finance and Business
• Business by Industry
• Hospitality and Tourism Businesses
• Food and Drink Businesses
• Restaurant and Cafe Management

How to Start a Cafe

Last Updated: March 17, 2024 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 11 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 452,580 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

• 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.

• 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.

• 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

• 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

• 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

• 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

• 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.

• 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

• 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

• 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.

• 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.

• 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. [17] 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?

• 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. [18] 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

You Might Also Like

Expert Interview

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

About This Article

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

• Send fan mail to authors

Reader Success Stories

Bernadette Paulse

Nov 26, 2016

Did this article help you?

Chi Ezenduka-Ezike

Nov 30, 2016

Nicole Rivera

Jan 8, 2017

Praveen Kaur

Jul 26, 2017

Apr 23, 2017

Featured Articles

Trending Articles

Watch Articles

• Terms of Use
• Privacy Policy
• Do Not Sell or Share My Info
• Not Selling Info

Get all the best how-tos!

Sign up for wikiHow's weekly email newsletter

• Specials & Events

St. Petersburg, FL

Visit us on the water, at the st. pete pier.

Chuck Prather

Owner & founder, downtown paradise, our three properties create the ultimate pier experience.

Family-Friendly

The whole family is invited to sip, savor, and relax while soaking in the sun! Pier Teaki turns 21+ after sunset at 8pm.

Amazing Views

Enjoy the bay view and cityscape at either the grand lawn by Driftwood Cafe, floor-to-ceiling windows at Teak, or the rooftop bar at Pier Teaki!

Exquisite Food

Executive Chef Felicia Lacalle has crafted amazing cuisine from Cuban-inspired bar bites to excitingly flavorful entrées.

Craft Drinks

Relax with the specialty coffee and teas at Driftwood Cafe or indulge in tasty tropical cocktails or mocktails at Teak and Pier Teaki.

Take a Look

Explore our brands below.

Nautical Family Restaurant

• Teak St. Pete

Coffee & Treats Shop

• Driftwood Cafe

Tropical Rooftop Bar

Our Location

800 2nd ave ne, st. petersburg, fl, 800 2nd ave ne, st. pete, fl.

• [email protected]
• (727) 513-8325

Our Social Media

Drop us a line, we'd love to hear from you, quick links.

• Family of Brands
• 800 2nd Ave NE St. Petersburg, FL

Best Coffee Shops in St. Petersburg, Northwestern District

Cafés in st. petersburg, establishment type, traveler rating, dietary restrictions, restaurant features, neighborhood.