Coffee Shop Business Plan Template

Getting your own coffee shop business off the ground requires a business plan. Here is a coffee shop business plan template that includes the important elements you need to include in your business plan.

To ensure your coffee shop business success in this highly competitive market, you need a properly structured business plan for your coffee shop. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their coffee shop businesses.If this is your first time writing a business plan, we’ll walk you through these sections and give you some key things to consider.

Coffee Shop Industry Overview

There are many kinds of coffee shops, but traditionally, they are establishments that sell coffee, tea, and other hot beverages. Recently, many coffee shops are also competing with restaurants in the quick service category by serving baked goods, sandwiches, salads, and other snacks.

As of 2022, there are more than 65,000 Coffee & Snack Shops in the US, a 2.4% increase from 2021.

This industry’s major products and services include

Coffee Shops have grown at a faster pace than most other industries as consumers have increasingly sought out specialty coffees and convenience at an affordable price. Additionally, operators will likely expand their menu options to match any changes in consumer preferences to further stimulate consumer interest.

Industry revenue is expected to grow by an annualized rate of 1.9% over the three years to 2024, reaching $49.5 billion.

 

Key Success Factors for Coffee Shop Business

There are 6 factors that can help you boost profitability, efficiency, and ultimately success in the coffee shop industry despite the challenges.

  • Define your market position clearly: It is essential to possess a clear position in the market against competitors in the limited-service industry and other food service operators.
  • Controlling costs effectively: In this low-margin industry, controlling costs and reducing waste are particularly important.
  • Ability to franchise: There is now a significant amount of franchising in the United States and abroad, and it can provide owners with a lot of support.
  • The product is sold at high-profile outlets: Stores must be located in highly visible locations with easy entrances, parking, and drive-throughs for customer convenience and service.
  • Market research and analysis: Businesses need to monitor market and consumer needs, wants, and desires, particularly in relation to healthy food demand.
  • Multi-skilled and flexible workforce: To meet peak demand periods, businesses need a reliable supply of skilled, seasonal workers.

What is a Coffee Shop Business Plan?

A business plan for coffee shop is a written document that sets your company’s financial goals and discusses how you’ll reach them.

A solid, comprehensive strategy will serve as a road map for the next three to five years of the coffee shop business. Any bank or investor you approach will require a business plan for coffee shop, so putting one together will be critical to securing funding.

In short, writing a business plan can help you succeed if you’re thinking of starting a coffee shop business or pitching to investors or venture capitalists.

Coffee Shop Business Plan Template

Why Write a Business Plan for a Coffee Shop?

If you want to start a coffee shop business or expand an existing one, the first thing you need to do is to write a business plan. A business plan is also necessary for attracting investors who want to know if your coffee shop is on the right track and worth investing in.

A business plan clarifies all of these factors, including the type and style of coffee you want to sell, the customer base that you hope to attract, and the experience you want to provide.

A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a coffee shop business idea, and may help you better understand your company’s finances and competition.

Coffee shop owners who have a business plan grow 32% faster than those who don’t, and 74% of fast-growing businesses have one.

A coffee shop business plan is a living document that should be updated annually as your company grows and changes.

Funding Sources for Coffee Shop Business

Asking family and friends to invest in your coffee shop business is a great way to start. Once you’ve set a budget and identified what you’ll need to start the store, take the services of your friends and family to help you get it off the ground. You might need to present the willing ones a solid business plan to reassure them that their chances of making a profit are good.

Bank loans and angel investors are the two most common sources of funding for a coffee shop business. When it comes to bank loans, banks will want to look over your coffee shop business plan to make sure you’ll be able to pay it back with interest.

The loan officer will not simply want to ensure that your financials are reasonable in order to gain this confidence. They will, however, expect to see a professional plan. They will be more confident in your ability to run a business successfully and professionally if you have a plan like this.

A business loan officer would want to see your coffee shop business plan and to decide, perhaps a business proposal. They will also consider the following:

  • Your current earnings
  • Your present debt
  • credit rating
  • There are any outstanding liens or bills against you
  • Previous commercial credit rating

Coffee Shop Business Plan PDF and Word

Download our coffee shop business plan in PDF and Word here.

How to Write a Coffee Shop Business Plan

To write a coffee shop business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a business plan for coffee shop business, or you can just download our proven coffee shop sample business plan to get a better idea.

Executive Summary

The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.

It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.

Tell them what kind of coffee shop business you have and what stage you’re in; for example, are you a startup, do you have a coffee shop that you want to expand, or do you have a lot of coffee shops?

Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.

  • Provide a high-level overview of the coffee shop industry
  • The name, location, and mission of your coffee shop
  • A description of your coffee shop, including management, advisors, and a brief history
  • Discuss the type of coffee shop you are operating, Give an overview of your target customers., and how your product differs from competitors in the industry
  • Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
  • And give an overview of your financial plan

Check out these executive summary examples to help you write a perfect one for your business plan.

Company Analysis

The company analysis follows the executive summary as the second section of a business plan. Your company overview will be short and clear, similar to the executive summary.

Even if they just have a few minutes, your reader has to understand what your company does and who your customers are.

The following sections will be included in your business plan’s Company Analysis:

  • Company summary: Your company analysis will describe the type of coffee shop business you are operating and its future goals.  The type of coffee shops you might be focused on are: (Cafe, Coffee Bar, Coffeehouse, Retail Coffee Shops, Coffee Trucks and Carts, Drive Thru Coffee Shops, etc.)
  • Company history: When and why did you start your coffee shop business?
  • Management team: Who runs the company, and other key positions.
  • What milestones have you achieved so far? Your milestones could include sales goals achieved, new store openings, etc.
  • Legal structure and ownership: Your reader will want to know what business entity your company is: a sole proprietorship, LLC, partnership, or corporation.
  • Locations and facilities: Information about your workspaces or plans to acquire them.
  • Mission statement: An overview of your company’s guiding principles. Learn how to write a perfect mission statement.

Industry Analysis

You need to include an overview of the coffee shop in the industry analysis you performed before sitting down to write your coffee shop business plan.

While this research may appear to be unnecessary, it helps you to build strategies that maximize business opportunities while lowering or avoiding the identified risk.

You may learn a lot about the coffee shop industry by doing research. It helps you in understanding the market wherein you operate.

Market research can help you improve your strategy, especially if it identifies market trends. For example, if there is a trend toward decaffeinated coffee consumption, make sure your plan includes plenty of decaffeinated options.

The third purpose for conducting market research is to demonstrate to readers that you are an industry expert.

Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.

  1. Give a quick overview of the coffee shop industry. Define the coffee shop business in terms of size (in dollars), historical background, service region, and products.
  2. Examine previous trends and growth patterns in the coffee shop industry.
  3. Identify the market’s major competitors.
  4. Age, gender, and general lifestyle of the targeted market
  5. Who are the market’s main suppliers?
  6. Determine the factors that have an impact on the coffee shop industry. These might include government regulatory rules and other businesses’ competitive activities.
  7. Using research data, the industry forecast expected growth. Predictions should be made for both the long and short term.
  8. Describe how your coffee shop business intends to position itself in the industry. Concentrate on how your coffee shop business can benefit from opportunities highlighted in the industry.

Customer Analysis

The customer analysis section is an important part of any business plan for coffee shop since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how the product will meet those requirements.

Here are some examples of customer segments: Specific Coffee LoversBusiness People, Independent Workers, Coffee Beans Buyers, Couples, Families, Travelers, Teenagers, Students, etc.

Customer analysis may be divided into two parts: Psycho-social profiles (why your coffee shop services and products suit a customer’s lifestyle) and Demographic profiles (descriptions of a customer’s demographic qualities).

In terms of demographics, you should include information on the ages, genders, locations, and income levels of the consumers you want to serve. Because most coffee shop serves consumers who live in the same city or town, such demographic data is easily accessible on government websites.

The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.

Competitor Analysis

It is necessary to do a competitor analysis. Not least because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:

  • Identify the strength and weaknesses of your coffee shop competitors.
  • Search for opportunities to distinguish your coffee shop from competitors.
  • Set your product’s price.

On the market, you will almost certainly discover some extremely powerful competitors, some of whom will be offering things similar to yours at unbelievably low costs. However, not every competitor works with low-cost, low-quality services.

The first step is to determine who your direct and indirect rivals are.

The direct competitors consist of other coffee shop businesses that offer essentially the same products to the same people as you do. 

Indirect competitors are more difficult to detect. They can sell a variety of cuisines or follow a different service model. However, because they serve the same target market, these businesses are competitors.

While indirect competitors may not serve the same meals, they compete for the same hungry customers. Supermarkets, Restaurants, and customers brewing coffee at home are all included.

Once you’ve identified the competitors, concentrate on the direct, head-to-head competitors, since they are the most threatening to your coffee shop business — but keep an eye on the indirect competitors as well, just in case.

Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.

You will be able to position yourself competitively in the market if you perform proper competitors research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:

  • Prices – Are they cheaper or more costly than you and other coffee shops, what value do buyers get for that price, and does shipping significantly raise the price?
  • Quality – The quality services and products they provide, the perceived worth in the eyes of the customers
  • Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
  • Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers

The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium services and products? Will you offer unique services and products that your competitors don’t offer? Will you offer better pricing or will you offer greater customer support?

Consider how you will outperform your competitors and include them in this portion of your coffee shop business plan.

Marketing Plan

Creating a marketing plan for a coffee shop business involves identifying the target demographic and finding products that suit their preferences. Coffee shop owners need to constantly seek out coffee shop businesses that their competitors do not carry.

As part of your marketing plan for a coffee shop, you should include:

Pricing and Product Strategy

Your coffee shop business must offer services and products that are unique, need in public, and different from those of your competitors. Research what your competitors carry and how they price their products.  unique coffee shop item identifies your store as the place to go for a unique coffee shop business and differentiates it from others.

Placing and Promotions

The location of your coffee shop business is referred to as place. Make a note of where you’re going and how it’ll affect your success. Your coffee shop should be located somewhere with a lot of foot or car traffic to attract first-time customers. The more people who walk past your coffee shop, the more likely you are to attract new customers.

Promoting your coffee shop is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your coffee shop. A few marketing methods you could consider are:

  • Marketing in local newspapers and magazines
  • Approaching bloggers and websites
  • Some free sample on holidays
  • Pre-Opening events
  • Billboards and Flyers
  • Marketing on social media
  • Marketing through websites
  • Pay Per Click marketing
  • Email Marketing
  • Interiors
  • Unique Selling Point (USP)
  • Produce special premium memberships and offers

Operations Plan

While the previous sections of your coffee shop business plan described your goals, your operations plan discusses how you will achieve them.

An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.

Your operations plan should be divided into two individual parts, as seen below.

All the daily tasks involved in running your coffee shop business, such as serving customers, cleaning coffee shop, procuring supplies, etc., are short-term processes.

Long-term goals are milestones that you aim to reach. These may include the dates when finalizing the lease agreement for the coffee shop space or Reaching break-evens. It might also be when you plan to launch a new coffee shop or to serve the 1000th customer.

Management Team

When writing a business plan for coffee shop, the management section’ outlines your management team, staff, resources, and how your business ownership is structured.

A strong management team is necessary to demonstrate your coffee shop ability to succeed as a business. Highlight the backgrounds of your key players, emphasizing the skills and experiences that demonstrate their ability to grow a business.

You and/or your team members should ideally have prior experience working in a coffee shop company. If so, emphasize your knowledge and experience. However, you should emphasize any experience that you believe will help your coffee shop business succeed.

Consider forming an advisory board if your team is lacking. An advisory board would consist of 2 to 8 people who would act as mentors to your company. They would assist in answering questions and providing strategic direction. If necessary, seek out advisory board members with experience running coffe shop and small businesses. 

Financial Plan

As part of your financial plan, you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Business financial statements include your income statement, balance sheet, and cash flow statement.

Income Statement

A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.

As you develop your income statement, you need to develop assumptions. For example, will you serve 20 clients per day or 50? Will sales increase by 3% or 15% per year? As you can imagine, your assumptions have a significant impact on your financial forecast. Do your best to verify your assumptions by conducting research.

Balance Sheet

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.

The balance sheet shows your coffee shop’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:

  • Assets: Tangible goods with the monetary worth that the company owns.
  • Liabilities: Debt owing to a company’s creditor.
  • Equity: The net difference when the total liabilities are subtracted from the total assets.

The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.

Create a pro forma balance sheet for your coffee shop business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.

Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.

For example, spending $150,000 to build out your coffee shop business will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.

Similarly, if a bank sends you a check for $700,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.

Cash Flow Statement:

Your cash flow statement will help you determine how much money you need to start or grow your coffee shop business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a coffee shop business:

  • Espresso maker
  • Grinders for coffee
  • Coffee machine
  • Catering equipment
  • Hardware for storing data (bins, utensil rack, shelves, food case)
  • Equipment for the serving area (cups, glasses, flatware)
  • Equipment for the counter area (counter top, sink, ice machine, etc.)
  • Equipment storage (cash register, security, ventilation, signage)
  • Other unforeseen expenses
  • Marketing costs

Appendix

List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.

Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix. You may, for instance, include some of your apparel designs.

Summary of the Coffee Shop Business Plan

A business plan for coffee shop is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the coffee shop business, your competitors, and your customers. The plan will help you understand the steps necessary to launch and grow your coffee shop business.

Do you want to Finish Your Coffee Shop Business Plan in less the one day?

Wouldn’t it be nice if your business plan could be completed faster and easier?

With wise business plans Business Plan Template, you can finish your plan in just 6 hours or less with a 30-Day Money-Back Guarantee!

In addition, you can download our 300+ free business plan templates covering a range of industries.
 

OR, we can develop your coffee shop business plan for you

Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.

Get in Touch

Contact Us Today For A Free Consultation