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The Ultimate Coffee Shop Business Plan and Template

The Ultimate Coffee Shop Business Plan and Template

Posted June 11, 2021 | Author: Ian Naylor | Categories: Coffee Shops | Comments: 2

If you are looking to write a coffee shop business plan, you have come to the right place.

A coffee shop business plan is an essential tool for coffee shop owners or people who want to open a
coffee shop. A business plan will help you plan your strategy for success and act as a guide as you look to
build your coffee shop.

In this article, we’ll look at why you should write a business plan for your coffee shop or cafe, as well as
provide you with a sample and a template that contains inspiration for the things you should include in
your coffee shop business plan.

Table of Contents

1 Why Write a Coffee Shop Business Plan?

2 Coffee Shop Business Plan Template

2.1 Executive Summary

2.2 Company Overview

2.3 Market and Customer Analysis

2.4 Sales and Marketing Plan

2.5 Management Team

2.6 Financial Plan

3 Wrapping Up
Why Write a Coffee Shop Business Plan?

Latte on a Table

The basic idea behind a coffee shop is simple. The business needs to sell enough coffee products to
cover costs and make a profit. However, many variables will define whether your business is successful.

A coffee shop business plan will help you plan a strategy for success. It will consider factors such as
opportunities, risks, and how you will market yourself. By having a good idea of this before you start a
coffee shop, you will be better placed to overcome or avoid any difficulties.

Here are some examples of how a business plan could help iron out any difficulties:

While creating the market analysis section, you may decide that competition is too intense. If this is the
case, you could look for a new area with fewer competitors or find a way to make your coffee shop
business stand out.

By creating a marketing plan before you open, you can put yourself in an excellent position to make
sales from the moment you start a coffee shop.

By creating cash flow projections, you will be able to spot any potential financial issues well before they
come to light, preventing cash flow problems.

Without a business plan, you would either not know about the potential difficulties listed above, or you
would be aware of them but lacking any defined strategy for overcoming them. By creating a coffee
shop business plan, you can tackle issues with a clearer head.

Business plans are also essential documents if you plan to apply for funding for your coffee shop.
You’ll likely need to submit the business plan to the bank when applying for a loan, or to investors when
applying for equity funding. Having a well-thought-out business plan shows you have done your market
research and analyzed your idea which helps give investors an overview of the risks and potential
rewards of investing.

If you are going to use your business plan to apply for funding, you’ll need to go into a little more detail
about the financials of your business. This will include your income and expenses and you’ll also need to
include a section that discusses how you will use the money you’re raising.

Coffee Shop Business Plan Template

Trendy Coffee Shop

A Google search will reveal differences when it comes to the exact sections you should include in your
coffee shop business plan.

Nonetheless, a coffee shop business plan template will include the sections listed below. In this part of
the article, we’ll go through a coffee shop business plan template and discuss what you should include in
each section.

Executive Summary

The executive summary is a short overview of your coffee shop business plan. It should include all the
important details about your business. When deciding what to include, think about what you would
want someone to see if they told you they would only read this one section of your plan.

Open your executive summary with a statement about what your coffee shop business is all about. Talk
about what it will offer that is unique and mention why you think it will be successful. Is it the only
coffee house in town, for example?

Sample
Coffee shop name: AI Coffee Shop

Executive Summary:

AI Coffee will serve high-quality coffee to office workers and business people who work nearby. We will
sell espresso-based drinks with a focus on providing quality at speed. We will sell coffee to take away as
well as to eat in, with an indoor seating area with space for 25 customers in our coffee shop.

While there are other coffee shops in the area, we believe that there is demand for more—especially
ones that focus on a high-quality product. We will also provide a light lunch menu and pastries that we
believe will differentiate us from other coffee shops in the area.

Company Overview

Barista Holding Latte

In the company overview section, you should include practical details about your coffee shop business.
This will include:

The structure and ownership of your coffee shop

The staff you plan to hire and what you will pay them

Your company’s mission statement, and startup expenses

Sample

AI Coffee will be a privately held company owned entirely by Mr Smith, who will also manage the coffee
shop. We will hire two full-time employees with at least two years of barista experience, as well as four
part-time employees to help during busy periods.

Startup costs for the coffee shop will be $70,000, which will be spent on rent, renovations, and
purchasing equipment. The owner has put up half the money and has borrowed half from a bank. Based
on annual sales of $160,000 and after costs and wages, we expect to be profitable within the second
year.
Market and Customer Analysis

In the market analysis section, you should include details about the local market. This can include
information on competitors, such as other coffee shops or any fast-food joints, restaurants, or bars that
you think will be competing for your coffee shop’s money.

You should also outline what makes your coffee shop business unique and why you think it can be
successful despite the competition. You can also include wider information about the coffee industry.

In the customer analysis section, you need to include information about your target market. Include
details on who they are and why you think they will like your coffee shop, with metrics where possible. If
you performed market research before starting your coffee shop business plan, include that here.

Market Analysis

The coffee industry is expected to keep growing between 2020 and 2024 in the U.S. Research suggests
that coffee is one of the most consumed beverages in the country, with the average person drinking two
cups per day. We believe that this growth, plus the high volume of coffee people drink each day, makes
opening a coffee shop a good business opportunity.

Competitor Analysis

AI Coffee will be located in a vibrant district that is seeing offices open up and new companies move in.
There are currently two other coffee shop competitors in the immediate area, but we believe there is
room for more.

Our shop’s main advantages are that it is closer to a new office building than the other shops. We also
plan to differentiate ourselves by offering a small lunch menu, unlike any of the existing coffee shops, as
well as various customer loyalty schemes.

Customer Analysis
The location of the coffee shop has high footfall, especially before and after work and during lunchtimes.
The area has a high proportion of local professionals who can afford to spend money on coffee and
other drinks.

The office blocks in the immediate vicinity are home to around 2,500 people. There are also other
buildings being developed nearby. The location is also close to shopping and entertainment districts. We
expect to receive significant revenue from passersby, who will keep us busy during the day.

Sales and Marketing Plan

Business Plan Doc

Before you start a coffee shop, you should have a clear idea of what your business’s sales strategy will
be.

Your sales strategy contains practical details on how you will handle sales. You should also include sales
forecasts and how you have come up with these forecasts. In this section, you should include
information about the products you will sell and your pricing strategy.

Your marketing plan will discuss the strategies you will use to get customers through the door. Discuss
your budget and expected returns on investment. If you have a particularly complex marketing plan, you
may want to create a separate document for this and only include the highlights in your business plan.

Sales Plan

Sample

AI Coffee will open from 7.30 a.m. until 7.30 p.m. seven days a week. We expect the hours immediately
before and after office hours, as well as between 12 p.m. and 1 p.m., to be the busiest of the day, with
much of our sales being to take out.
We will use a commercial espresso machine and we expect to be able to produce up to a maximum of
70 cups of coffee per hour, which should be sufficient during busy times.

We will sell our espresso-based drinks and tea at between $3 and $6, depending on the drink and the
size. We will sell pastries at between $2 and $5, as well as light meals at between $7 and $12. These
meals will be packaged so customers can either eat them on-site or take them away.

We expect to generate around $730 per day from food and drink sales.

Marketing Plan

We will market our coffee shop to customers in the nearby area through display marketing in relevant
locations. We will also use social media marketing to target people nearby, and we will connect with
people through our social media accounts. We will use these accounts to keep customers updated with
new menu items as well as offers and discounts.

We will also create a website and an app, which we will use to run a customer loyalty scheme. We will
provide the option to order coffee through the app and pick it up at the shop. We think this will appeal
to busy professionals.

Our marketing will focus on the quality of the coffee we sell, as well as the benefits of our shop to office
workers (in-app ordering). During the week after we open, we will offer substantial discounts on coffee
to attract people to our business. This offer will be central to our marketing during this period.