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.
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Why should you even care about a business plan in the first place? If you have the money and passion for doing a business, isn’t that enough? Understand one thing: a sample business plan is not something you can walk away from. If you do not have a business plan, there will be nothing for you to fall back on when something goes wrong. A simple business plan is the blueprint of the business. If your cafe business must succeed, then a restaurant plan must be the number one document to create.
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Coffee Shop Business Plan Template
If you want to start a coffee shop business or expand your current one, you need a business plan.
Over the past 20+ years, we have helped over 7,000 entrepreneurs and business owners create business plans to start and grow their coffee shops.
Below are links to each section of your coffee shop business plan template:
Next Section: Executive Summary >
Coffee Shop Business Plan FAQs
What is the easiest way to complete my coffee shop business plan.
Growthink's Ultimate Coffee Shop Business Plan Template allows you to quickly and easily complete your Coffee Shop Business Plan.
Where Can I Download a Coffee Shop Business Plan PDF?
You can download our coffee shop business plan PDF template here . This is a business plan template you can use in PDF format.
What Is a Coffee Shop Business Plan?
A business plan provides a snapshot of your coffee shop 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 Do You Need a Business Plan?
If you’re looking to start a coffee shop or grow your existing coffee shop you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your coffee shop in order to improve your chances of success. Your coffee shop business plan is a living document that should be updated annually as your company grows and changes.
What Are the Sources of Funding for a Coffee Shop?
The main sources of funding for a coffee shop are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.
The second most common form of funding for a coffee shop or 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. Venture capitalists will not fund a coffee shop. They might consider funding a chain, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.
COFFEE SHOP BUSINESS PLAN OUTLINE
- Coffee Shop Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
- 10. Appendix
- Coffee Shop Business Plan Summary
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Coffee Shop Business Plan
Table of Contents:
- Coffee House Business Plan . 1
- Executive Summary: 2
- Founders: 3
- Financials: 3
- Objectives: 4
- Keys to Success Factors: 4
- Company Summary: 5
- The Coffee-House Concept: 6
- Company Ownership: 6
- Start-up Summary: 6
- Long Term Assets: Rs 92, 000 . 6
- Short-Term Assets: Rs 15, 000 . 7
- Start-up . 8
- Products: 12
- Vendors: 12
- Product Description: 12
- The Coffeehouse Menu: 13
- Coffee and Espresso Drinks: 13
- ESPRESSO .. 13
- COFFEE DRINKS . 14
- HOT COCOA DRINKS: 15
- SMOOTHIES: 15
- ICED TEAS: 16
- HOT TEA: 16
- Italian Sodas: 17
- Snacks and Pastries: 18
- Deli Items: 18
- Market Analysis Summary . 18
- Market Segmentation: 19
- Management and Staffing: 20
- Organizational Structure: 20
- Management Team: 20
- Staffing: 20
- Labor Market Issues: 21
- Target Market Segment Strategy . 22
- Industry Analysis: 23
- Competition and Buying Patterns: 23
- Strategy and Implementation Summary . 24
- Financial Plan: 30
- Projected Cash Flow: 33
- Projected Balance Sheet: 35
Executive Summary:
COFFEE SHOP BUSINESS PLAN explains that Every day, millions of people stops for an espresso-based coffee drink. People who would not have dreamed of spending more than $10 for a cup of coffee a few years ago now gladly pay $50 to $250 for their cappuccino, mocha latte or vanilla ice blended drink. Liberty coffeehouse is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. With the growing demand for high-quality gourmet coffee and great service, Liberty coffeehouse will capitalize on its proximity to the to build a core group of repeat customers. Liberty coffeehouse will offer its customers the best prepared coffee within few seconds in the area that will be complimented with pastries, as well as free books that its patrons can read to enjoy their visit
The specialty-coffee business is growing at a healthy pace. During the past 5 years, there has not been a single year, despite war and recession, in which specialty coffee sales have not grown. In many years the increase has been in double digits. In addition, no coffeehouse chains have failed during this time, although the list of casualties in other industries is quite long.
The Coffee Day, Barista, Mocha… and other major chains serve average quality drinks in establishments that have the same generic design appearance. Indeed, Coffee Day and The Coffee Bean are often referred to as “fast food” coffeehouses due to their “cookie cutter” design. Now that coffee preferences have broadened and matured, many are asking for more from their coffeehouse.
A niche exists that has yet to be filled for a high-volume, upscale, quality-driven coffeehouse with a warm, inviting atmosphere .
Liberty Coffee Shop meets this need and fills this niche. We offer high-quality products in an upscale environment. Furthermore, our high-profile location in Liberty Lahore provides a mixed customer base that will maintain high levels of business in every season, at all times of the day, every day of the week.
This Coffee Shop Business project is based on market assumptions and past data. The figures and amounts may vary as market trend changes with time.
Founders: Liberty Coffee Shop has a long career as an entrepreneur and marketing executive. There are three main founders of coffeehouse business and we are also partner in our business.
Financials:
The company anticipates rapid acceptance of the Coffeehouse concept in selected area, with revenues of $60,000+ in the first fiscal year.Net profit is projected to be approximately $150,000 in year one.
An advanced and expandable point-of-sale system:
After carefully tracking the performance of the selected area store through an expandable and highly detailed point-of-sale system, we will use this as a “blueprint” for expansion. For example, daily sales are tracked and analyzed by item, time period and cost of goods. Labor requirements are matched to projected in-store sales based upon past performance for maximum efficiency. Even after paying higher than average wages, we expect to allocate no more than 25% to labor costs.
This Business Plan only provides data on the the area you select.
Our goal is to be the coffeehouse of choice for the local Liberty community with new innovation we know the world has moving so fast so everybody wants quickness in everywhere of their life so all that things we know and bring innovation in our coffeehouse business that is Time, we know Time is money we have introduced for the first time the coffee which has no takes more time and just within few seconds coffee will be in your hand. Business workers, tourists who visit the city, and students, by providing a higher quality experience than any competitor. As a result, we intend to create coffeehouses that quickly achieve profitability and sustain an attractive rate of return (20% or more annually) for our investors.
We also want to make our contribution to the welfare of the local community by supporting charitable and civic activities. We will support the farmers who grow our coffee by using Fair Trade, Sustainable Production and Organic products whenever possible.
Liberty Coffee Shop also awards its business to as many local suppliers as possible, keeping the business in the community or, at the least, in the state.
Objectives:
- Make Liberty Coffee Shop the number one destination for coffee in every city.
- Sales of $60,000+ the first fiscal year, $75,000+ the second fiscal year and 1 Million the third fiscal year
- Achieve a 15% net profit margin within the first year and 30% by FY3
- Achieve a total net profit of $100,000+ in FY1 and $200,000+ by FY3
- Be an active and vocal member of the community, and provide continual re-investment through participation in community activities such as the Chamber of Commerce and financial contributions to local charities and youth organizations
- Create a solid concept in the industry and track performance in order to begin expanding to other markets within six month.
- Become selected as the “Best New Coffeehouse in the area” by the local restaurant guide.
- Turn in profits from the first month of operations.
Keys to Success Factors:
The keys to our success will be:
- A superior-tasting product backed by a unique quality store
- A relaxing, upscale interior design
- Prime site selection with an upscale affluent population, year-round tourist activity, heavy pedestrian traffic by the site, a dynamic student population and a concentration of local businesses
- A market that exposes Coffeehouse to high-profile “trend-setters” and “key influencers”
- Ongoing, aggressive marketing
- Highly trained and friendly staff using best Talent Management Techniques.
- Multiple revenue streams including gift items, gift baskets and coffee gift/frequency cards in addition to coffee, pastry, chocolates, tea, juice, water and soft drinks
- A dynamic website with online sales capability
- Employee training to insure the best coffee preparation techniques.
- Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks.
Company Summary:
Liberty Coffee Shop launches with its first coffeehouse located in Seattle, WA. Liberty Coffee Shop will offer residents and visitors a totally new style of coffeehouse – one offering a uniquely flavorful coffee drink and a comfortable, upscale environment at which to socialize, relax or work.
- Variety: No other coffeehouse in the area will provide the time saving coffee and the range of coffee drinks, tea, cocoa, juice, smoothies and other products that Coffee Beans does.
- Location: Liberty Coffee Shop will be located in the prime section of Liberty Lahore in the heart of the shopping and entertainment district. Coffeehouse locations are designed for high volume year round, with revenues and profits to match.
- Expansion: Assuming this store is successful, it will be the first of a chain of Coffee Beans coffeehouses located in markets that have similar demographic profiles, significant traffic by the store, year-round tourist activity and a sizeable student population.
The Coffee-House Concept:
At one time Cadillac was the acknowledged quality automobile. Then came Mercedes-Benz. And then Lexus, with its superb product and service approach. Liberty Coffee Shop will be the first “Lexus” of the coffeehouse chain industry, offering a higher quality product and better quality service in an exceptional environment.
Liberty Coffee Shop offers a superior coffee product, delicious pastries, fresh juices, the finest tea drinks, cookies, gourmet chocolates and gift items.
The Coffee Beans staff members who prepare the coffee (baristas) are highly trained and experienced. They know how to prepare an excellent espresso-based drink and brew tasty coffee. We use the highest quality equipment and ingredients to deliver a noticeably superior product.
Our design style is different from all other coffeehouses, an upscale “Cote d’Azur” look. It features stained glass decorations, art glass-work, Mediterranean Riviera style furnishings and outdoor dining.
Company Ownership:
Liberty Coffee Shop is a privately held corporation.
COFFEE SHOP BUSINESS PLAN Start-Up Summary:
Start-up expenses are in line with those of other coffeehouse chains. For example, Coffee Day spends approximately $30,000 on average to build-out a new store location. Our costs are an estimated $15,000 for opening inventory and operating capital. Future stores should cost no more than $25,000 to build out since many of the costs incurred here will not have to be repeated later.
The Start-up requirements, below, include $46,500 of short and long-term assets.
Long Term Assets: $32, 500
Short-Term Assets: $14, 000
Liberty Coffee Shop sells high-quality specialty coffee beverages, tea, juice, water, soft drinks, pastries, chocolates and gift items. Despite being an upscale coffeehouse, our prices are in line with the leading national chains. Coffeehouse will offer its customers the best tasting coffee beverages in the area. This will be achieved by using high-quality ingredients and strictly following preparation guidelines. The store layout, menu listings and marketing activities will be focused on maximizing the sales of higher margin espresso drinks. Along with the espresso drinks, brewed coffee and teas, as well as some refreshment beverages, will be sold in the coffeehouse. Coffeehouse will also offer its clients pastries, small salads and sandwiches. For the gourmet clientele that prefers to prepare its coffee at home, Coffeehouse will also be selling coffee beans.
- Coffee roasting is provided by Grizzly Mountain Coffee Company.
- Tea is primarily supplied by Q-mart.
- Our water vendor is Kinley.
- Juices are provided by pure o natural (fresh orange juice and lemonade).
- Pastries are provided by local bakery, Swiss Castile.
- Chocolates and cocoa are from Q-mart.
- Gift items are from various vendors
- Soft drinks are provided by Sprecher’s, reliance fresh.
Product Description:
The menu of the coffeehouse will be built around espresso-based coffee drinks such as lattes, mochas, cappuccinos, etc. Each of the espresso-based drinks will be offered with whole, skimmed, or soy milk. Each of these coffee beverages is based on a ‘shot’ of espresso, which is prepared in the espresso machine by forcing heated water through ground coffee at high pressure. Such espresso shots are combined with steamed milk and/or other additives like cocoa, caramel, etc., to prepare the espresso-based beverages. Proper preparation techniques are of paramount importance for such drinks. A minor deviation from the amount of coffee in the shot, the size of the coffee particles, the temperature of milk, etc., can negatively affect the quality of the prepared drink.
The Liberty Coffee Shop Menu:
The Coffee house business plan menu sets us apart from other coffeehouses, giving us a competitive edge.
- We offer six groups of drinks—coffee, tea, Italian sodas, smoothies, juice and cocoa—with several choices within each group. This enables us to provide more variety than our competitors while keeping the preparation of the drinks easy to execute.
- We are taking advantage of the immense popularity of flavored drinks and tea by offering a product mix that includes items the other coffeehouses don’t carry as well as more familiar drinks.
- We are the only coffeehouse to have a wide range of gourmet hot cocoa.
- Coffee Beans offer several smoothie drinks and Italian sodas.
- We carry the highest quality fresh juices.
Prices have been determined after a thorough analysis of all food costs for every item in each drink. In some cases, an average price has been calculated and applied to all similar drinks in order to keep the menu from confusing the customer.
Coffee and Espresso Drinks:
Coffees of the day: Coffee Beans Blend, Riviera Roast, and Molokai Swiss water process DeCaf.
$2.3 Regular $3.3Large
COFFEE DRINKS
FLAVORED ESPRESSO DRINKS all flavored drinks feature quality Monin and Ghirardelli syrups.
HOT COCOA DRINKS:
all hot cocoa drinks are $2.75
All smoothies are $3.00
Teas:
Classic Iced Tea , just like you remember as a kid. $2.7 Small, $3.8 Medium, $4.25 Large
Rs30 Regular
- English Breakfast
- Herb Apricot
- Earl Grey Lavender
- Formosa Oolong
- Golden Flowers Herbal
- Herbal Lemon
- Tropical Green
TEAS (hot or ice blended)
Tea Original (regular or decaf): $1.5 Regular $2 Large
Vanilla Tea: $1.5 Small $1.8 Medium $2 Large
Italian Sodas:
ICED ITALIAN SODAS
Sparkling spring water, flavoring and ice. Blended or on the rocks.
Medium $2, $2.8 Large
- Orange Soda
- Strawberry Soda
- Cherry Soda
- Raspberry Soda
- Cream Soda (made with half & half)
SPECIALTY ITALIAN SODAS All $3.5 Regular, $4.5 Large
Other Drinks
Snacks and pastries:, deli items:, market analysis summary.
Coffee Beans launches with an exciting new coffeehouse concept in a receptive and steadily growing market segment—the specialty coffee retail business.
Despite economic downturns in recent years the specialty coffee business has been a bright spot. While literally hundreds of businesses in many categories are facing poor sales, negative balance sheets and even bankruptcy, coffee chains continue to show strong growth.
It’s clear that America’s love for good coffee continues during good times and bad.
Seattle: The Perfect Launch Market
By launching Coffee Shop in Seattle we maximize our potential for success due to several factors:
- The highly affluent local population
- Year-round tourist activity
- Ever-changing upscale student population
- Excellent auto and pedestrian traffic by our location
- Low media costs
- High number of local special events
- Prime site location
Coffeehouse is located at what is arguably one of the best locations for a coffeehouse in Seattle—in the heart of the tourist and business district, adjacent to fine dining and shopping.
Coffeehouse has all the ingredients necessary for immediate success.
Market Segmentation:
Coffeehouse’s customer base in Seattle is comprised of five target groups.
- Affluent local residents
- Local business people
- Travelers passing through
These groups are all potentially strong customer segments. The benefit of this mix of customers is that it helps maintain consistent business throughout the year. For example, while tourism is strong all year long in Seattle, it peaks during the summer months. Conversely, the student population is not as strong during the summer as it is from September through June of each year.
The other customer segments (local residents, local business and pass-through traffic on US 66) provide a consistent foundation all year long.
Also, by appealing to several market segments, Coffeehouse does not become overly dependent on any single consumer group. For example, several local coffeehouses with primarily student customers do poorly during the non-school months. They must also market themselves anew each year to the incoming students. Coffeehouse will avoid these peaks and valleys in business with a mix of customers.
- Affluent locals . Within five miles of Liberty Coffee Shop are 200,000 of the most affluent people. Homes in adjacent Nice burg sell for $1 million to $50 million. Key influencers, trendsetters, artists, writers and celebrities have homes in Liberty.
- Tourists . More than 19 Million tourists visit Seattle every year. Most will pass by the Coffeehouse location. Tourist come to “Seattle” for the shopping, dining and nearby multiplex.
- Local business people . Liberty Coffee Shop is located on the corner of ‘A’ Street and First Avenue in the heart of the prime downtown business district. It’s across from the exclusive, chic, Descartes (I Spend, Therefore I Am) department store, and one block from the number one shopping destination in Seattle, Lucre Gallery. ‘A’ Street and First Avenue are the two most heavily traveled streets in Liberty.
- Students . Dozens of other schools, including many prestigious private schools and academies. School is less than a mile from Coffeehouse.
Management and Staffing:
Organizational Structure:
Our organizational structure will be a simple pyramid style with the owners putting in as much work as the employees.
Management Team:
Peter and Abdul Hadi will share management and supervisory responsibilities equally. Abdul Hadi for the morning shift. Obama for the afternoon shift.
We will hire three inter level students and two waitresses; these will be recruited from the local Colleges.
Labor Market Issues:
In this area there are many high school students looking for work, part time or full time, we want to fill that need.
Target Market Segment Strategy
Overall, our strategy is to maintain a constantly high customer count by leveraging our appeal to five groups of potential customers.
Local Residents :
Approximately 200,000 people live within five miles of our Coffeehouse location. The most affluent of these live even closer, within three miles. It is a short 5 minute drive to Coffeehouse for most of our potential local customers. Excellent public parking is available within 100 yards.
Local customers form the loyal core of our business. We will reach out to them through local marketing, involvement in the Chamber of Commerce, support of local charitable organizations and sponsorship of events and youth sports teams.
Seattle has excellent year-round tourist activity. About 5 million people will visit the area during the next year. While hotels are virtually sold out during the summer months, tourism all year is exceptionally strong. This is due in large part to the temperate climate, weekend or day-trip visitors from the greater Onto polis area and an unusually large number of special events (e.g. film festivals, concerts, art shows) scheduled throughout the year.
With a troubled economy and fears of terrorism, more people are opting for the relatively inexpensive, easy and safe short trip to Seattle for recreation. And, according to the Chamber of Commerce, 90% of all tourists visiting Seattle will pass by the Coffeehouse location. We will target these potential customers with ads in local tourism guides.
Local Business:
Many local businesses, both private and government, are within two blocks of Coffeehouse. Lucre Gallery, the prime shopping center of Seattle, is one block away. The county courthouse is two blocks away. Coffeehouse is in the heart of the shopping and dining area. Because much of the employee parking is out of the immediate area with shuttle service to downtown, most people stay near their place of employment during breakfast, lunch and for after-work relaxing. A significant number of these local business people find Coffeehouse an inviting and convenient destination.
We also offer coffee service to local restaurants, night spots and businesses. Coffee service brings in additional revenue and promotes Coffeehouse among employees at these businesses.
We will also reach business customers through Chamber of Commerce activities and by personally visiting the shops and businesses to distribute discount coupons and menus.
The area has more than 30,000 students in several schools, including nearby Colleges and Universities. Students have few places they can go to meet their friends. Coffeehouses have proven to be very popular with students—even high school students—as an “in” place to go that’s also affordable.
To reach students we offer special student discount cards, pass out free coffee coupons at student events and offer entertainment on weekends.
Students represent an excellent customer segment for several reasons:
- Students bring an energy and youth to the coffeehouse
- By attracting students we generate excellent word-of-mouth
- Students represent a large base of potential part-time employees
Industry Analysis:
In coffee shop business plan we made a industry analysis research that Coffee shops in Seattle have existed since, and the coffeehouse concept is more than 400 years old. In the United States, even as recently as the 1970’s, coffeehouses have been primarily independent businesses, typically with an eclectic Bohemian style.
Coffee Day’ success has encouraged others to enter this potentially lucrative business. Today there are more than 50,000 coffeehouses in the US However, compared with Italy, which has 200,000 espresso bars and coffeehouses; there is still much room for growth. The Specialty Coffee Retailers Association believes the market has not approached maturity and, as yet, no coffee chain has differentiated itself significantly from the others.
While overall coffee sales have not grown significantly in recent years, the specialty coffeehouse segment is growing steadily at a healthy pace every year.
Competition and Buying Patterns:
FACT: The coffeehouse business has grown every year since 1986.
Despite major economic recessions, terrorist attacks and two wars over the past two decades, the specialty coffee industry has grown every year. One industry observer said, “When times are good the coffeehouse industry is great. And when times are bad the coffeehouse industry is great.” America’s love for good coffee is stronger than ever and increasing in size faster than any other industry.
Lifestyle factors converge to make the coffee industry strong at all times. The stimulant effect of coffee is an important reason why many hard-working, fast-paced Pakistanis consider a stop at their local coffeehouse a necessary part of their day. Conversely, coffeehouses provide calm, inviting environment for people to socialize, relax or catch up on work.
Entertainment on weekend nights draws a young group of enthusiastic customers. The surge in interest in coffee drinking among young people assures a diverse, receptive, sophisticated customer base now and in the future.
Quality is deteriorating even as the industry is growing.
Coffee drinking is now an all-day activity.
Strategy and Implementation Summary
The Coffee Beans coffeehouse uses a strategy of total quality—in product and service. Our promise is in our location, the products we sell, the people we attract and the atmosphere we create.
Strategic Assumptions:
- People want a better-tasting coffee drink
- Coffee drinkers want a more inviting coffeehouse environment
- Coffee drinks are considered an affordable luxury
- The coffeehouse industry is largely unaffected by the economy and world events
Launch Marketing:
Launch marketing will promote awareness, build immediate traffic and establish our brand image via several methods:
- Public relations/publicity
- Direct mail
- Local print and broadcast media
- Design and packaging
- Community involvement
- Superior location
- Desirable store ambiance
Public Relations:
A strong public relations/publicity program uses as its primary “hook” these three main points:
- Our unique quality products
- No commitment on taste
The goal of the PR/publicity is to achieve local market awareness and establish the brand on a wider scale to set the stage for future expansion. Local market awareness is vital because more than 50% of sales will come from people living within a 5-mile radius of the store.
National awareness will help drive the expansion by generating opportunities created by the media buzz and familiarizing people with our brand name. It will help set the stage for future brand identification.
Local Media:
Regional/National Print Media:
- Business week
- express News
- Entrepreneur
National Broadcast Media:
- 8 radio stations nationwide
Direct Mail:
- Ongoing direct mail generated from our website data
- Visa or MasterCard local direct mail program
Design style:
The interior design of Coffee Beans is unlike any other coffeehouse chain. While there are some upscale designs, they are the entire modern Italian or Coffee Day look. Our upscale stylized “Cote d’Azur” Mediterranean Riviera design, featuring stained glass decorations, art glasswork, differentiates us from all others.
Gift Items:
We carry a wide variety of quality gift items, including gift baskets. Gift basket business could eventually grow to be substantial. However, since it is difficult to project at this time we have not included it in the financial computations. We also offer sales of stained glass and glass artwork by the artisans who produced our decor furnishings.
The location of the first Coffee Beans in Liberty is a prototype of future sites. We will build Coffee Beans coffeehouses in the best locations possible, as this is the key element in a successful operation.
Site selection criteria include:
- High traffic location
- Small or mid-size affluent market
- Nearby (within 5 miles) student population
- Outside dining
We will engage in several sampling activities to introduce potential customers (and current customers) to Coffeehouse’s range of drink options.
- Samples will be distributed at the coffeehouse
- Samples will be given to passers-by on the street
- Discount coupons will be distributed on the street, via direct mail and at special events
- Complementary coffee will be served at charitable and civic events
Sales Strategy:
Our sales strategy includes:
- Staff salaries that are 10% above the industry average in order to attract the best people
- Hiring for attitude so that we always have a friendly, enthusiastic staff to make customers feel welcome and appreciated; constant staff training to assure the best quality possible
- State-of-the-art sales/inventory system to (A) reduce customer waiting time, and (B) create efficient product ordering
- Create a mobile kiosk to take Coffee Beans into the community at special events, farmer’s markets, art shows, etc.
- Sell coffee, gift baskets and glass artwork on our website
- Establish coffee service at local businesses
- Sell gift cards, frequency cards, pre-paid cards, and offer discounts to key groups
- Create an ongoing sampling program
- Conduct a consistent, aggressive marketing program
- Be an active member of the community; be visible at charitable functions
- Solicit customer feedback to constantly improve and streamline our operation
Key Strategy: an advanced and expandable point-of-sales system
After carefully tracking the performance of the Liberty store through an expandable and highly detailed point-of-sale system, we will use this as a “blueprint” for expansion. For example, daily sales are tracked and analyzed by item, time period and cost of goods. Labor requirements are matched to projected in-store sales based upon past performance for maximum efficiency. Even after paying higher than average wages we expect to allocate no more than 25% to labor costs. Cost of goods can be monitored for increased efficiency too. As we continually research methods of delivering a high quality but cost-efficient product, and by making small incremental improvements in the costs of items we expect to increase overall COG by a minimum of 5% during the first year of operation.
As expansion occurs, the POS system can be adapted to each individual location and allow the central office to monitor the stores remotely as well as the overall combined operation. Close monitoring will allow us to achieve a high level of communication between stores as well as spot problems immediately and take corrective action.
Sales Forecast:
Conservatively, we are forecasting an average of 300 customers per day during the first year with average guest check expenditure for all items of $4.10. This figure was arrived at by surveying the customer traffic at the nearest competing coffeehouses which have a range of 150 – 500 customers per day and an average customer expenditure of $4.10. We have estimated our customer expenditure to be slightly higher (2.5%) due to the premium price we will charge for some of our items. Total cost of sales is approximately 25%.
We expect growth to occur across all categories at about 10% annually as the business becomes more established and well-known, reaching 400+ customers per day within a year and more than 500+ within three years. These estimates are likely conservative. However, it is possible we could attain a 1,000-per-day customer count within three years.
Financial Plan:
- Sales growth will be a minimum of 15% annually, margins excellent, profits at approximately 20% – 25%, cash flow adequate.
- Marketing will remain below 5% of sales.
- The company will invest residual profits into financial markets or real estate.
- Future cash investments will use NPV projections to achieve maximum return with limited risk.
Important Assumptions
- The 20-year record of positive growth for specialty coffee drinking will continue at a healthy rate. The Specialty Coffee Association says that the market is far from saturation and will not reach maturity until at least 2019.
- The resilience of the coffeehouse industry to negative national and world events will continue. Despite recession and war the coffeehouse industry has shown strong growth every year for the past two decades.
- The quality of national chains will remain the same or decline slightly rather than improve as they standardize their stores, increase automation of espresso drinks and mass-produce the roasting process.
- Coffee drinks will continue to be considered an “affordable luxury.”
- 15% minimum sales growth rate over the next three years as Coffee Beans becomes well known.
Projected Profit and Loss:
We project high net profits starting in the first year. Our growth rate is based upon industry averages, factoring in the local conditions. We expect growth of 15% annually for the first three years before leveling off at the 800 – 900 customers per day average traffic rate.
First fiscal year gross revenues are expected to exceed $600, 000 and after-tax net profits of approximately $99, 000—increasing to more than $260, 000 by the third fiscal year-end.
Our margins are very good. This is due in large part to the low direct cost of sales as well as the low operating costs in general for coffeehouses.
Higher staff salaries, owner/operator salaries, marketing costs and rent for a premium location depress profits but, conversely, they also ultimately contribute to higher earnings and profits.
Projected Cash Flow:
We are positioning ourselves in the market as a low to medium risk concern with relatively steady cash flows. Accounts payable is paid at the end of each month, while sales are in cash, giving Coffee Beans an excellent cash structure. Fifty percent of cash above $ 20, 000 will be invested into semi-liquid stock portfolios to decrease the opportunity cost of cash held. Our initial investor contributions are designed to provide us with a strong cash position at all times.
Projected Balance Sheet:
All of our tables will be updated monthly to reflect past performance and future assumptions. Future assumptions will not be based on past performance but rather on economic cycle activity, regional industry strength, and future cash flow possibilities. We expect solid growth in net worth beyond the year 2013
Some Useful Tips to consider before starting a Coffee Shop Business:
- Try to give a relax and friendly atmosphere as people would come and sit with a thinking to get a calm and quiet atmosphere.
- Try to avoid loud music and speakers.
- Use soft paint colors indoor to give a soft touch to environment.
- Place some books at a specific corner for self reading.
- Don’t use hard material furniture as it’s not comfortable.
- Don’t use air fresheners because beans have there own aroma.
- If possible try to outdoor sitting as well.
- Other than occasional and normal flavors, add some signature coffee or special coffee item in your menu.
- Make your staff wear local uniforms/dress. It will add a different look and also be considered by customers.
- Take some useful tips from Event Management Business Plan as it will help you explore more ideas.
Also study: Coffee Shop Industry Analysis & Trends
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I am a Ugandan i love business a lot because i did Records management in Information Science, i would wish to start a coffee shop so how much is needed to start one.
Its really good, and it has given me the full concept of that have been disturbing me
Thanks for sharing this post. Yes, those are the most important technique or business plans for a perfect coffee shop. This blog will be very helpful for who will start their business newly. Dear, you have not mentioned, one of the most important factors is the proper location for your coffee shop. I am a coffee shop owner. One month ago I have designed a coffee shop for my business. That was designed by Simply Coffee Shops. I am also happy with my business.
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