Coffee Shop Business Plan

9 Chapter Business Plan Template in MS Word, Google Docs and MAC Pages
Pitch Deck Template in PowerPoint, Keynote & Google Slides
5 Year Financial Model Template in MS Excel, Google Sheets and MAC Numbers
Financial Dashboard Template in MS Excel, Google Sheets and MAC Numbers
Business Model Canvas Template in MS Excel, Google Sheets and MAC Numbers
SWOT Analysis Template in MS Excel, Google Sheets and MAC Numbers
Competitive Analysis Template in MS Excel, Google Sheets and MAC Numbers

I.- Coffee Shop Executive Summary

Business Overview

We are excited to promote [Company Name], a new and trendy coffee shop specializing in high-quality coffee and tea! [Company Name] is located at [insert location here] and offers a menu with a wide variety of specialty drinks and locally made pastries and snacks. [Company Name] is a perfect spot for those seeking a high-end coffee shop that offers to-go options, such as a snack and a drink, or those seeking to sit back and relax in a comfortable seating area with their favorite coffee or tea.

Services

[Company Name] has assembled a large menu of coffees, coffee drinks, teas, and a selection of various food items. Our menu will also highlight specialty offerings using recipes developed by the coffee shop's founder, and our location will further meet the needs of small groups seeking a meeting area within a trendy and hip coffee shop.

Customer Focus

Our primary consumers base will consist of residents living within a 2-mile radius of [Company Name] and those working within a quarter-mile radius of our location. The local customer demographics include 27,827 residents and 1,750 workers who do not reside in the neighborhood. The average income of our primary consumer base is $54,700 with 49.6% of individuals in management or professional occupations. 38.9% of the group is married, while the median age is 34 years old.

Management Team

[Founders Name], who founded [Company Name], has worked in the foodservice business for 20 years, and they are extremely familiar with the restaurant industry within the local area. [Founders Name] has both waited and cooked at restaurants for 5 years and has a thorough familiarity with the local restaurant industry. [Founders Name] familiarity is further proven through their experience of teaching cooking classes at the local culinary institute for 5 years. [Founders Name] has also gained an in-depth understanding of the food service business, including everyday operation needs and business management needs, such as staffing and marketing.

Success Factors

[Company Name] has a unique opportunity to succeed and see a profitable profit margin. [Company name] is located where there is a high demand for a hip coffee shop however there are no businesses currently meeting this demand. The area being entered will meet the needs of the younger demographic within the community and we are confident in the need for a business, such as ours, because of the extensive research done. [Founders Name] and their team surveyed the local population and received reassuring feedback including direct statements from consumers stating they would be eager to visit our business once launched.

Additionally, our management team has a successful history within the restaurant business while coffee shops generally see a high-profit margin within communities in the United States. Market trends regarding coffee within the United States as a drink, and within communities such as the one we are seeking to enter, are further supported by extremely successful businesses such as Starbucks and various other popular coffee shops.

Financial Highlights

[Company Name] is seeking investor funding of $360,000 to fund the start-up costs of opening our café. $180,000 will be used to design and build a coffee shop, while the remaining $180,000 pay for marketing, salaries, and land cost until [Company Name] breaks even. We are confident in our current estimate regarding our financial forecasting for [Company Name].

II.- Coffee Shop Business Overview

Who is [Company Name]?

Perfectly located at [insert location], [Company Name], focuses on offering high-quality coffee drinks, teas, and locally made pastries and snacks. [Company Name] will meet the need for a trendy coffee shop in a high-demand area for those seeking a snack and drink to go, or a comfortable area to enjoy our coffee shops seating area.

Founded by [Founders Name], who has been in the food service business for [Insert time] years, decided to launch [Company Name] during a trip to Fort Lauderdale, FL. While [Founders Name] was visiting in [Month] of [Year], they visited an independently owned coffee shop that saw significant success even with Starbucks being within a competitive distance of the location. [Founders Name] spoke with the owner and understood a similar coffee shop business plan would see similar success in his hometown.

The customer demographics and competitive environment of the inspiring Fort Lauderdale location were so similar [Founders Name] knew [Company Name] would see the same success in [insert location here]. After surveying the local area, [Founders Name] found his belief to be true according to his findings.

[Company Name]’s History

Once [Founders Name] returned from Fort Lauderdale, assessed the local customer base, and found potential retail locations, he incorporated [Company Name] as an S-Corporation on [date of incorporation].

Three initial locations were selected and [Founders Name] is currently completing due diligence on all properties while also assessing the local market to see which location will be the most profitable location for a coffee shop.

Since the incorporation of [insert company name], [Founders Name] has developed the company name, logo, and website. Additionally, a menu has been created, and necessary equipment and inventory requirements have been determined. [Founders Name] has also sought to begin building relationships with suppliers in the local region allowing for a more accurate estimation of coffee shop business plan financials. The website of [Company Name] can be viewed at www. [ insert hyperlink].

[Company Name]’s Products/Services

Below is [Company Name]’s initial menu. As you can see all items are classified under the following five main categories:

• Coffee & Espresso


• Tea


• Iced Beverages


• Pastries


• Gran N’ Go

[Company Name] Initial Menu

Menu	Menu
- Coffee & Espresso Pastries	- Tea Stonyfield Organic Yogurt
- Americano Cookies	- Chai Tea Latte Assorted Bottled Beverages
- Latte Brownies	- Green Tea Chips
- Cappuccino Scones	- Herbal Tea Biscotti
- Vanilla Latte Butter Croissant	- Black Tea
- Mocha Latte Chocolate Croissant	- Iced Beverages
- Caramel Macchiato Assorted Pastry	- Iced Cafe Latte
- Espresso	- Iced Vanilla Latte
- Regular Coffee Gran N Go	- Iced Chai Tea Latte
- Decaf Coffee Whole Fruit	- Iced Caramel Macchiato
- Rotating Options of Flavored Coffees Jell-O	- Fruit Smoothies
- Kozy Shack Pudding	- Iced Coffee

Design

[Company Name] will develop a 2,500 square foot coffee shop whose key elements will include the following:

• Storage Area


• Ordering counter


• Tables to comfortably seat 20 customers


• Restroom

Below please find a rough sketch of the floor plan:

The retail location has 10 dedicated parking spots which should suffice even in peak hours.

[Company Name] plans to be open 7 days a week, from 7AM to 11PM. As demand dictates, we may extend or reduce our hours.

III.- Coffee Shop Industry Analysis

[Company Name] will face competition from all food service providers within the local area, including those who offer similar services, supermarkets, restaurants, coffee shops, bakeries and other retail establishments. Coffee shops and other restaurants offering brewed coffee and grab n’ go food items similar to [company name]’s will prove as our largest and most direct competition.

What you Get in Your Coffee Shop Business Plan Package

Industry Statistics & Trends

According to CoffeeResearch.org, there are over 108 million coffee drinkers in the United States. U.S. consumers spend an average of $164.71 per year on coffee, while 54% of the adult population drinks coffee daily and an additional 25% of Americans drink coffee occasionally, but not daily. The average coffee consumption in the US is 3.1 cups of coffee per day, with men drinking 1.9 cups of coffee and women drinking 1.4 cups of coffee per day on average. Further 17% of adults in the U.S. consumer a gourmet beverage daily, consumption of iced coffees has seen an upward trend, and 61% of coffee drinkers believe coffee improves their mental acuity. Overall, the coffee industry represents a $9.2 billion industry, leading us to believe that a coffee shop investment is a sound investment that will provide generous profit margins.

IV.- Coffee Shop Customer Analysis

Profile of Target Market

[insert location] is an affluent area with a group of hard-working people who are likely to drink more coffee than the average U.S. citizen. [Company Name] will serve the residents of [insert location] and surrounding areas, as well as the hard-working employees within the area.

Demographics

The precise demographics of the town in which our retail location resides are as follows:

Customer Segmentation

Our primary consumer base will be couples, local workers, and shoppers. We will seek to attract couples who are looking for a comfortable area to meet between and before high traffic mealtimes. Local workers will make up a large portion of our consumer base as well considering approximately 1,750 individuals work in offices or stores within a quarter mile of our location. We believe these working individuals will visit our location prior to the workday, during lunch, and after their work day. Shoppers will also make up a large portion of our consumer base as we anticipate our location to provide a convenient are for visiting shoppers who are seeking an area to rest or grab a snack while window shopping.

V.- Coffee Shop Competitive Analysis

Direct & Indirect Competitors

[Company Name] will have several direct and indirect competitors within the area. The following competitors are within a 2-mile radius:

Joe’s Coffee Shop has been operating for the past 32 years and has been coined by local press as “a working man’s coffee shop”. Joe’s offers a basic menu of coffee and drinks, and sandwich options. Lunch here is offered to those on a meal break or seeking a take-out lunch selection. Joe’s offers a limited beverage menu and is located on the outskirts of [insert town]. The main customer demographic includes those who are commuting and seeking a quick stop. Joe’s does not target customers seeking a sit down establishment and emphasizes their ability to meet the needs of those who are on the go.

Old Time Organic Café has been in business for 5 years and offers a vast menu of organic teas and coffees, baked goods, and sandwiches served to go. The business model targets those seeking an organic only shop and their menu is very limited. There are only four tables for customer to sit at which leads us to believe Old Time Organic Café is seeking to target consumers who are on the go or those who are seeking a quick stop to pick up a coffee and a baked treat prior to work.

Starbucks recently opened a location in the shopping district, [Location Name], one year ago. The location has seen success, specifically with out-of-town shoppers, however this location has been a victim of backlash from townspeople who were against the company moving into town. Several advantages [Company Name] has over

Starbucks include rotating menu options which specialize in flavored coffees, the highest quality coffee house blends, and a local establishment which will entice consumers who are avoiding Starbucks due to the contempt for chain establishments seeking to infiltrate the local industry.

We believe Starbucks will continue to see success based on their location and being a recognizable chain. Although there is no doubt of the future success of Starbucks, we are confident that more customers will frequent [Company Name] based on our high-quality ingredients, product selection, and the fact we are independently owned and operated. Our consumer base is seeking to avoid chain restaurants and seeks to support locally owned businesses such as ours.

What you Get in Your Coffee Shop Business Plan Package

Competitive Pricing

Here is the pricing of our key competitors (Joe's Old Time Freddy's):

Competitive Advantage

Several advantages that [Company Name] holds over their competitors include high quality ingredients, a top-notch management team, and essential relationships. [Company Name] is guaranteed to work with only the best suppliers for their menu items. These high end, local companies will supply our coffee, teas, and pastries. Additionally, our suppliers will ensure they are providing the best products by testing their own house blends to guarantee their product will be appreciated by gourmet coffee drinkers.

[Founders Name] has invested many years to gaining a profound understanding of marketing and processes that will guarantee a smoothly run business. Because of [Founders Name] history within the restaurant industry, his team will be more skilled in caring and serving our customers in a more chic way than our competitors.

Finally, [Founders Name] has lived within the community for 25 years and has sought to build critical relationships with local leaders, newspapers, and influencers. These local leaders further support our business and were key members the community who fought the opening of the new Starbucks. Thanks to these essential relationships, it will be easy for [Company Name] to build a success brand and awareness of our business.

VI.- Coffee Shop Marketing Plan

The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company’s planned promotions and pricing strategies.

The [Company Name] Brand

[Company Name] will focus on a unique value proposition which will specialize in high quality menu items, unique and brilliant house coffee blends, and excellent customer service. Our location will further create demand for our business as we are conveniently located in an area that can offer dine-in and take-out options.

Promotions Strategy

Our target market will be working individuals located within a quarter mile of our business. [Company Name]’s promotion strategy to pull in these customers will include direct mail, public relations, advertising, sampling, ongoing customer communications, and pre-opening events. To build excitement prior to opening [Company Name]’s team members will organize pre-opening events specifically aimed toward prospective customers, local merchants, and press contacts. These events will build anticipation and excitement for [Company Name]. Additionally, we target surrounding neighborhoods and supply direct mail pieces to these locations. Our direct mail pieces will provide general information of our business and offer enticing promotional discounts to secure a consumer base who is ready to frequent our café.

[Founders Name] will further build excitement prior to our opening by contacting local and area newspapers and television stations describing our opening events and the unique value proposition provided by [Company Name].

Advertising will include promotional pieces and activities that include local newspaper pieces and the sponsoring of community events to gain awareness. Throughout the initial opening days, [Company Name] will also offer free coffee samples to pedestrians who will be sure to stop and learn more about our house blend coffees and company. [Company Name] will also maintain a website where we will publish a monthly email newsletter to inform customer of new events, product offerings, and more. The pre-opening events are vital to building awareness of our company and guaranteeing the success of our coffee shop business plan.

Pricing Strategy

Menu offerings will be priced moderately at [Company Name]. We have chosen to offer moderately priced products so our customers will feel they are receiving a great value while doing business with [Company Name]. We will create demand by pricing our products higher than Joe’s Coffee shop and on par with Starbucks and Old Time Organics Café.

VII.- Coffee Shop Operations Plan

Various requirements for [Company Name] to see a successful coffee shop business plan launch include administrative functions, kitchen function, and retail functions. Regarding administrative functions, [Company Name] will need legal, marking, bookkeeping, and the process of hiring, and training staff in place and prepared. We will also need to have supply chain needs organized to ensure we are sourcing and storing ingredients appropriately.

Kitchen Function needs include properly preparing food, using appropriate blenders, and brewing coffee correctly. Additionally, to fulfill retail functions our team members will need to be appropriately trained in taking orders, fulfillment (for take-out and eat-in), and customer service. Functions such as janitorial and maintenance personnel will also be required to keep our coffee shop clean and above local standards.

What you Get in Your Coffee Shop Business Plan Package

Milestones

[Company Name] expects to achieve the following milestones in the following [] months:

VIII.- Coffee Shop Management Team

[Founder’s name], manager of [Company Name] has been in the foodservice business for 20 years and has a proven capability of running a coffee shop himself. [Founder’s Name] has 5 years of experience in teaching classes at a local culinary institute. Classes taught by [Founders Name] include How to Cook for Everyday Eating and Coffee Blending for Connoisseurs. How to Cook for Everyday Eating teaches students fundamental skills needed for cooking every day, healthy, homestyle meals. Coffee Blending for Connoisseurs teaches students an overall understanding of grinding and blending coffee beans to create unique and memorable flavors. [Founders Name] has also worked throughout the region with restaurants on a part time basis. Restaurants he has worked for include Gianna’s Patisserie, and Mike’s place, where he oversaw kitchen quality. It should also be recognized that [Founders Name] graduated from the University of [ABC] where he majored in communications, and he attended the local culinary institute where he earned a certificate in foodservice management.

Hiring Plan

While [Founder] will work as our lead coffee shop manager, we will also need 3 full-time, or equivalent to 3 full-time, wait staff, 1 busser, and one part-time bookkeeper who will manage accounts payable, create statements, and specialize in other administrative functions. Each of these positions are vital in seeing a successful coffee shop launch.

IX.- Coffee Shop Financial Plan

Our coffee shop business plan financials show [Company Name]’s main source of revenue will come from the sale of menu items such as food and drinks. We will offer an eat-in and takeout system which will meet the needs of a broad spectrum of customers within our target market.

Major costs for [Company Name] include the cost of purchasing food and drink supplies, staff salaries, and rent for a small but highly sought-after location. Throughout the initial years, [Company Name] will also have high spending due to marketing as it establishes itself within the local market.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $360,000 to launch its coffee shop. The capital will be used for funding capital expenditures, employment costs, marketing expenses and working capital.

We are seeking total financing of $360,000 to launch [Company Name] Coffee Shop. The capital will fund capital expenditures, manpower costs, marketing expenses, and working capital. Approximately $180,000 of these funds will be used for designing a coffee shop, while the remaining $180,000 will be used to pay for marketing, salaries, and lease costs until [Company Name] breaks even.

Coffee Shop Financial Plan Sources And Uses Report

Key Assumptions

Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.

Coffee Shop Financial Plan Core Inputs

Coffee Shop Financial Plan Top Revenues Report

Coffee Shop Financial Plan Top Expenses Report

Coffee Shop Financial Plan Income Statement

Coffee Shop Financial Plan Cash Flow Statement

Coffee Shop Financial Plan Balance Sheet Statement