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How to Write a Business Plan for Opening a Cafe

• by Lightspeed

minute read

So you’re thinking of opening a cafe. We salute you. A well-crafted cafe is a bedrock of your community, a welcome stop in any big city, an oasis in your town and a second home for your regular customers. Before you can open a cafe, though, you have to create a cafe business plan.

Think of your plan as a roadmap for your entrepreneurial adventure—one that’s easier to create than you might think! In this article, we’ll show you how to write a business plan that will set your cafe up for success.

How to write a business plan for opening a cafe

What is a cafe business plan, start with your vision, study other business plans, building your business plan template, section 1: the executive summary, section 2: how will your cafe business succeed, section 3: study your competition, section 4: analyze your target market, section 5: tell us what you’ll sell and how you’ll sell it, section 6: create a marketing plan, section 7: ownership structure, section 8: your operations plan.

• Section 9: Financial planning

Section 10: Plans for growth

Finally, we’ll end with an example business plan to show you what it looks like in action. 

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  Want a quick summary of what to include in your cafe business plan? Consult this handy table. 

At its core, a cafe or coffee shop business plan is a document that explains what your business idea is and how it will succeed. It answers questions like how much it costs to set up shop, how those costs will be funded and how much money you expect to make from your cafe. A coffee shop business plan includes information about your competitors, target market and pricing structure.

When it’s finished, your business plan can be shown to potential investors, bankers, partners and anybody else who will help you open your cafe. As you can probably tell, it’s an extremely important document, so it’s worth your time and effort to get it right. First, you’ll learn about all the different pieces of information that will go into your business plan and then we’ll help you pull the pieces together.

A business plan is the first step in making your cafe-ownership dream a reality, so take time to dream by laying out your vision for your future cafe or coffee shop. What will your cafe look like? How will it be decorated? Where will it be located? Which items will you sell? Who will frequent it? How will your customers navigate your cafe, from the moment they walk through the door to the moment they swip e or tap their credit card to check out?

Pull inspiration from cafes you love, images you’ve seen, your favorite films or books, even your travels. Then write it all down or post pictures on a wall to create an inspirational mood board . As you spend hours working on your business plan, it will be incredibly motivating to glance up at your initial vision and be reminded of the finish line.

Before you pen your masterpiece, look at business plan examples from your industry: cafes, coffee shops and quick-serve restaurants. Study how they planned their business and make sure that your cafe is on the right track.

Real-world examples from business owners are also invaluable. Seek out current or former coffee shop owners or even franchise owners in your town and ask them how they succeeded and what they would have done differently. While you’re at it, you can seek recommendations for, say, an accountant who can help you write your business plan. Even if local business owners are your future competition, they might be willing to share their experiences.

A blank page can be overwhelming, but there are countless business plan templates available online to help get your started. We’ve outlined the basic sections you should include in your business plan below, as well as further tips on how to build out each one. 

At the end of the day, your template doesn’t have to be fancy or include imagery. The most important thing is that it contains all the necessary information and is logically organized so it’s digestible to anyone reading it.

When a reader opens your business plan, they will see the executive summary first. This gives a high-lev el overview of all the sections in your business plan. A well-written executive summary will get your foot in the door, so be sure to read examples to get a feel for how the summary is worded and to see how all the information is presented.

Just as you thought about the customers who will visit your soon-to-be-open cafe, consider who will read your business plan and tailor the opening paragraphs to your audience. As you’re preparing to open your cafe, your executive summary is the most important marketing tool your cafe has.

It’s designed to capture the attention of your reader, and give them an overview that’s brief and compelling. Here are some tips on writing a strong executive summary:

• Clearly state the purpose and unique value proposition of your business at the start
• Highlight what sets you apart from competitors
• Take your audience and potential investors into consideration as you write
• Summarize the business opportunity you’re presenting

The second section answers questions like, “What problem does your cafe solve?” and “How will your cafe be the solution?” Maybe there is no coffee house or cafe in a busy retail center near you. Or maybe a restaurant just closed downtown.

This summary provides a brief overview of your industry, mentions where your cafe will be located and describes how it will stand out. Will your shop specialize in breakfast sandwiches near an airport? Sell your locally famous pie? You’ve envisioned how your future cafe will be a success. Make sure the readers of your business plan understand that too.

You can talk about the following in this section:

• Your cafe’s unique selling points (these could relate to your menu, brand, other offerings, etc.)
• Your location strategy (how will you maximize foot traffic? What factors were involved in your decision?)
• What your menu will look like compared to competitors 
• A sneak peek into your marketing strategy (more on that later, though)
• How you’ll optimize your operations for efficiency, cost-effectiveness, etc.

The next part of your business plan is usually referred to as the competitive analysis . It explains how your cafe will compete with similar food and beverage businesses—including big coffee chains like Starbucks and fast food giants like McDonald’s. Nearby restaurants, coffee shops and even public gathering areas like movie theaters are all your competition. So now is the time to do the research of visiting your potential competitors and making a note of who their customers are, as well as what’s for sale and how much it costs.

By understanding the pricing strategy for similar businesses, you’ll know how much you need to charge for your coffee, pastries, sandwiches and whatever else you’re selling in order to remain competitive in your particular market. Gross margins (the amount of money you make based on what you sell) for cafes and coffee shops can be high, but small cafes have notoriously small operating incomes (read: profits) due to the high cost of overhead.

However, if you put in the time to undertake a thorough analysis of your competition, your cafe has a higher chance of being successful. By writing down how your cafe will compete against similar businesses, you will convince your reader (and, most importantly, yourself) that your goal of opening a restaurant or cozy cafe is realistic and sustainable.

In order for your cafe to succeed, it needs a steady flow of customers. Unfortunately, attracting foot traffic is not quite as easy as “if you build it, they will come.” In your business plan, your future customers are known as your market , the number of potential customers is your market size and how you’ll reach them is your marketing plan. 

In your cafe or restaurant business plan, you’ll then take your market and divide it further into market segments . For example, if your coffee shop or cafe is close to an elementary school, a market segment might be parents or caretakers who stop by for high-end coffee after dropping their children off at school. Or college students studying for exams as they swig espresso. 

Now that you know what the competition charges, it’s time to create a pricing strategy for your cafe. 

When creating your menu and prices , be smart. You’ll be buying ingredients in bulk, so try to use the same ingredients in many different dishes. Are you thinking of selling wine at your cafe? Liquor, like coffee, offers some of the largest profit margins in the industry, but a liquor license will cost you money and there may be a waiting period, so you might want to start with non-alcoholic beverages.

Don’t be afraid to get creative. If you charge less for a croissant and coffee combination than you do for those items alone, you’ll encourage customers to buy more and cut down on food waste . Once you open for business, you’ll probably end up making changes to your menu. But for the purpose of a business plan, you’ll need to know how much you will charge for the coffee or soup you plan to sell, which you’ll determine by breaking down the ingredients needed to make each item and researching your competition.

Take Toronto cafe and bakery Le Beau , for instance. They’re known for their freshly baked croissants, which come in many different flavors. People go to the cafe specifically for their famous croissants, and of course usually end up buying other items as well. If you want to cultivate this type of loyalty, you’ll have to start early. 

Your marketing plan can be part of your sales plan or it can be a separate section. Will you advertise your specials every morning on social media ? Will you partner with another local business for special promotions? In addition to marketing, this is also a great section to explain your plans for retaining your customers. Will you offer loyalty programs or have your employees give your top customers a free cookie on their birthday? With a cafe point of sale system , it’s easier than ever to reward—and keep—the customers who will frequent your cafe. 

It’s also important to create a strong brand identity. Allow this to guide your marketing plan so that the reader is confident that your business will be able to create more successful marketing campaigns. 

You can also include information about:

• Using your online presence to market your business
• Whether you’ll implement customer loyalty programs 
• Events you plan to host to boost your business profile
• The programs and tools you’ll use to monitor the progress of your marketing initiatives

Your business plan will include the ownership structure of your business. Explain how much experience you and your partners bring to the table and why you’re the right person (or people) to go into business.

Clearly outline the legal structure of your business and what form that will take. That could be an LLC, corporation, sole proprietorship or partnership. To further legitimize your business plan, identify the roles and responsibilities that each owner or partner will take on. Explain how you’ll work together to ensure effective management and decision-making. 

You could even include any plans or contingencies for future ownership, as well as the governance structure of your business and how decisions will be made. 

In this section, you’ll include information about your facilities, employees, equipment and supplies. Think about the direct costs of rent, barista wages, ingredients like coffee beans and technology. Try to get many services out of individual tools, like a POS system that lets your customers check out, your part-time employees clock in and also manages the inventory of your cafe. This will maximize your efficiency and allow you to run your business from one platform, which your employees and customers will also benefit from. 

Approximate how often you’ll need to reorder ingredients like flour and eggs. Carefully considering your operating costs during the business planning stage pays off. For instance, a coffee roaster is an upfront start-up cost, but roasting your own coffee at your cafe can save you operating costs in the long run. Save money where you can (secondhand chairs, anyone?) and don’t scrimp where it’s important, like your espresso machine.

Section 9: Financial planning 

Now you’re ready to craft a financial plan for your cafe. This is usually the most time-consuming and important section of your business plan, especially for lenders and investors. It should include an overview of your start-up costs, an income statement, projected cash flow, a balance sheet and a break-even analysis .

Startup costs

You’ve heard the adage that it takes money to make money, and this is because most businesses need initial funding to get them off the ground. A major reason you might be writing a business plan in the first place is to secure funding, like a business loan, for your cafe, but remember that your start-up funds can come from anywhere. How much money do you need to borrow? Will you dip into your savings? Crowdfund from your fans? No matter where you find your initial financing, a business plan lays out how your cafe will be funded and how that money will cover your business start-up costs.

Income statement

Once you know your start-up costs, operating costs, pricing strategy and target market, you are ready to lay out all this information into an easy-to-digest income statement . Take all of your expenses (mainly operating costs) and your projected sales volume (the amount that you are selling each month based on your pricing strategy and market research) to prove that your cafe business will turn a profit. In your case, create a projected monthly income statement for the first year your cafe will be in business. Explore some examples of income statements to see what your final analysis will look like.

Looking ahead to the future

A big part of writing a business plan for your cafe is figuring out the projected cash flow your cafe will earn over time. Depending on the audience for your business plan, you may have to project your cafe’s cash flow up to five years in advance, broken up into months or quarters. Though this exercise might seem difficult, it’s not impossible. You’ve already completed most of the financial legwork.

Combine those crunched numbers with your personal experience as a customer and a worker to project how much money your cafe will make in the future. Consider seasonal differences, like a spike in business around the holidays if you’re in a busy shopping district, or a lull in business during the summer if your cafe caters to college students. Just like your income statement, these cash flow projections will go into your business plan as easy-to-view statements.

Balance sheet

A balance sheet details the assets, liabilities and equity of your cafe business on the day it opens. It’s generally used to determine how much money a business has to work with. For a small cafe, it’s not as important as the income statement, but it’s useful as a realistic snapshot of the financial health of your restaurant.

Breaking even

Now that you’ve detailed how you will make a profit and you know how much money you are working with, you can approximate how long it will take your cafe to turn a profit. This is called the break-even point.

Section 10: Planning for growth

Include a section that discusses potential avenues for expansion in the future. This will show important stakeholders you’ve already started thinking about the future direction of your business.

Review the scalability of your business model and operations to support expansion efforts effectively. Determine whether the infrastructure, systems, and processes you’ll start with can support your visions of growth.

The opportunities you mention could include opening additional cafe locations in new neighborhoods or cities, expanding your product offerings to include catering services or packaged goods, or diversifying into related businesses such as coffee roasting or wholesale distribution.

Example business plan

We’ve created a business plan for a hypothetical cafe called Sip & Savor Café. Keep in mind that it’s shorter than is typical. 

Section 1: Executive summary

Sip & Savor Café is a quaint yet vibrant coffee shop nestled in the bustling downtown district. Our vision is to create a welcoming space where patrons can indulge in artisanal coffee, delectable pastries, and light bites while fostering connections and savoring moments of tranquility amid the urban hustle. With a dedication to exceptional service and a commitment to community engagement, Sip & Savor Café aims to become the preferred destination for coffee enthusiasts and locals seeking a reprieve from the daily grind.

Section 2: How Sip & Savor will succeed

Sip & Savor Café will differentiate itself by offering a curated selection of specialty coffees, locally sourced ingredients, and unique menu offerings that reflect the diverse tastes and preferences of our customers. Our prime downtown location, near office buildings and shopping centers, will maximize foot traffic and visibility. We will optimize our operations for efficiency and cost-effectiveness by selecting suppliers carefully and using a streamlined tech solution while maintaining a strong emphasis on quality and customer satisfaction.

Section 3: Competitive analysis

Through a comprehensive competitive analysis, we have identified key competitors in the area, including national coffee chains and independent cafes. By offering personalized service, a welcoming atmosphere, and distinctive menu items, Sip & Savor Café will differentiate itself from competitors and attract a loyal customer base. We’ll also create a strong loyalty program for our customers to rival the likes of big chains.

Section 4: Our target market

Our target market includes urban professionals, students and local residents seeking a convenient and comfortable place to enjoy coffee and light meals. We’ll create a space that encourages people to sit, stay and work. By understanding the preferences and behaviors of our target market segments, we will tailor our offerings and marketing efforts to effectively reach and engage with our customers. 

Section 5: What we’ll sell

Sip & Savor Café will offer a diverse menu of specialty coffees, teas, and seasonal beverages, accompanied by a selection of freshly baked pastries and sandwiches. We will implement a smart pricing strategy, utilizing high-quality ingredients and creative combinations to maximize value for our customers. Our menu will evolve based on customer feedback and seasonal trends, ensuring a dynamic and appealing selection of offerings.

Section 6: Our marketing strategy

Our marketing plan will focus on building brand awareness, driving foot traffic, and fostering customer loyalty. Strategies include social media campaigns, local partnerships, community events, and loyalty programs to engage customers and generate buzz around Sip & Savor Café. We will also prioritize customer retention through personalized service and rewards programs.

Sip & Savor Café is structured as a partnership between founders Emma and Liam, who collectively bring over 20 years of experience in the hospitality industry. Each partner holds a 50% ownership stake and shares responsibility for day-to-day operations, strategic decision-making and financial management.

Section 8: Operations plan

Our operations plan outlines efficient workflows, staffing requirements, inventory management systems, and quality control measures to ensure smooth and consistent operations. We will invest in modern equipment, staff training, and technology to optimize efficiency and deliver a superior customer experience.

Section 9: Financial plan

Sip & Savor Café will require initial funding to cover startup costs, including leasehold improvements, equipment purchases, and initial inventory. We have secured financing through a combination of personal savings, small business loans, and investor contributions. Our financial projections indicate steady revenue growth and profitability over the first three years of operation, supported by growing customer traffic and cost-effective operations.

As Sip & Savor Café establishes itself as a local favorite, we plan to explore opportunities for expansion, including additional locations and new menu offerings. By maintaining a focus on quality, customer satisfaction, and community engagement, we aim to sustain long-term growth and success in the competitive cafe market.

Keeping the restaurant dream alive

Though creating a business plan can seem complicated, remember that it’s an important step you should take before starting a cafe. A thoughtful business plan proves to others (and yourself) that your cafe can be successful. 

Looking to invest in the right tools for your cafe? Chat with one of our experts to see how cloud software can make your day-to-day more efficient.

1. How profitable is owning a cafe?

Profitability varies, but successful cafes can generate healthy profits with the right management, location, and business model.

2. How do I start a cafe business?

Start by creating a solid business plan, securing financing, finding a suitable location, obtaining necessary permits/licenses, hiring staff, sourcing suppliers, and marketing your cafe.

3. Is a cafe a successful business?

Cafes can be successful if managed effectively, offering quality products, good customer service, and a welcoming atmosphere.

4. How do I write a business proposal for a cafe?

Include sections on your concept, target market, location analysis, marketing strategy, financial projections, and management plan.

5. What is the failure rate of coffee shops?

Failure rates vary, but some studies suggest around 60% of new coffee shops close within the first five years due to various factors like location, competition, and mismanagement.

6. How much do small cafe owners make?

Earnings vary greatly depending on factors like location, size, and business model, but small cafe owners may make anywhere from modest incomes to substantial profits.

7. How much does it cost to run a coffee shop per month?

Costs can vary widely based on factors like rent, utilities, staff wages, inventory, and marketing expenses, but estimates range from several thousand to tens of thousands of dollars per month.

8. Are cafes a good investment?

Cafes can be a good investment if carefully planned and managed, offering opportunities for profitability and growth in the food and beverage industry.

9. Are cafes more profitable than restaurants?

Profitability depends on various factors including location, target market, and operating expenses. While cafes may have lower overhead costs than full-service restaurants, profitability can vary widely between individual establishments.

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Cafe Business Plan Template

Written by Dave Lavinsky

Cafe Business Plan

You’ve come to the right place to create your Cafe business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Cafes.

Below is a template to help you create each section of your Cafe business plan.

Executive Summary

Business overview.

The Countryside Cafe is a startup cafe founded by Cheryl Nelson and Tammy Overton in Tulsa, Oklahoma. Together they have over twenty years of experience in managing and operating cafes and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable restaurants. Cheryl is the former manager of a family-owned restaurant, where she had oversight of the employees, ordering, systems and financial record-keeping for the restaurant. Tammy was the head staff person of a chain restaurant who managed the scheduling, training and day-to-day operations of the restaurant. Together, they have decided to bring a family friendly environment and classic menu items to Tulsa.

Product Offering

The following are the products and services that Countryside Cafe will provide:

• Exemplary service for customers
• Honest, reliable relationships with vendors and suppliers
• Restaurant services 24/7 hours to accommodate all residents of the area
• Discounted menu pricing and expedited service for first responders
• Family-friendly menu items that everyone can enjoy
• Day to day management

Customer Focus

The Countryside Cafe will target customers throughout the Tulsa region who enjoy eating comfort foods, such as they may have grown up eating. Secondary target customers will be those who enjoy the hometown-feel of a small cafe rather than a large or more modern establishment. Those individuals who occupy nearby businesses or government offices will also be targeted by the Countryside Cafe, as well as those who own farms or ranches in the region.

Management Team

The Countryside Cafe will be owned by Cheryl Nelson and Tammy Overton. Together they have over 20 years of experience in managing and operating a regional cafe and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable organizations. Cheryl is the former manager of a family-owned restaurant and Tammy was the head staff person of a chain restaurant. Together, they have decided to bring a family friendly environment and homestyle, fresh foods to Tulsa. The menu will include breakfast, lunch and dinner meals, as well as popular favorites such as ice cream sundaes and homemade pies any time of day.

Success Factors

Countryside Cafe will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Countryside Cafe
• Comprehensive menu of meals for any time of day, including snacks, such as French fries and desserts, along with soda fountain favorites such as sundaes, malts and milkshakes.
• Countryside Cafe will offer special discounted pricing for first-responders in Tulsa.
• Countryside Cafe will offer a child menu and a play area for children while their parents enjoy their meal.
• First-time visitors to the Countryside Cafe will receive a free dessert of their choice.
• Countryside Cafe offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Countryside Cafe is seeking $200,000 in debt financing to launch its cafe business. The funding will be dedicated toward securing the restaurant space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Restaurant space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Countryside Cafe.

Company Overview

Who is countryside cafe.

Countryside Cafe is a newly established, full-service homestyle cafe in Tulsa, Oklahoma. Countryside Cafe will be the most reliable, cost-effective, and efficient choice for individuals and families, as well as businesspeople in Tulsa and the surrounding communities. Countryside Cafe will provide a comprehensive menu of favorite meals, snacks and desserts for any diner to utilize. Their full-service approach includes a comprehensive menu and seating options to suit each family, including small children.

  Countryside Cafe will be able to serve over fifty people at one time. The team of owners and staff members are highly qualified and experienced in preparing, making and serving favorite family meals and snacks. Countryside Cafe removes all headaches and issues of finding easy, friendly and moderately-priced meals in Tulsa and ensures all appetites are satisfied while delivering the best customer service.

Countryside Cafe Management History

The Countryside Cafe consists of two experienced restaurateurs with distinctive areas of expertise: Cheryl Nelson and Tammy Overton have over twenty years of experience together in managing and operating a regional cafe and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable organizations.

Cheryl Nelson is the former manager of a family-owned restaurant, where she had oversight of the employees, ordering, systems and financial record-keeping for the restaurant. Tammy was the head staff person of a chain restaurant who managed the scheduling, training and day-to-day operations of the restaurant. Together, they have decided to bring a family friendly environment and honest, favorite foods to Tulsa.

Since incorporation, Countryside Cafe has achieved the following milestones:

• Registered Countryside Cafe, LLC to transact business in the state of Oklahoma.
• Have a contract in place for a 20,000 square foot restaurant space in a family-friendly retail area
• Reached out to numerous contacts to visit the Countryside Cafe upon launch and regularly after the launch.
• Began recruiting a staff of eight servers and four office personnel to work at the Countryside Cafe.

Countryside Cafe Services

The following will be the services Countryside Cafe will provide:

Industry Analysis

The cafe and small restaurant industry is expected to grow over the next five years to almost $500 million. The growth will be driven by consumers who seek favorite foods they’ve always enjoyed. Consumers also want to be served in small, more intimate settings which are relaxing and comfortable. Customers with children will help grow the cafe industry because, as families, they are more relaxed in the informal “down home” comfort of a small cafe versus a large, more formal restaurant.

Costs will likely be reduced as cafes continue to expand and modify their menus to seek out the best, most desirable menu items for consumers rather than spending widely on menu choices that may not be well-received. Costs will also continue to go down due to lower prices on produce and beef within the Oklahoma area. As fresh fruit is more in demand, juices and smoothies will cost less to produce than in the past, as well.

Customer Analysis

Demographic profile of target market.

Customer Segmentation

Countryside Cafe will primarily target the following customer profiles:

• Individuals and families within the region
• Small business owners and employees within the region
• City officials and those who work in the business of Tulsa
• Farmers and ranchers in the greater Tulsa regions

Competitive Analysis

Direct and indirect competitors.

Countryside Cafe will face competition from other companies with similar business profiles. A description of each competitor company is below.

Mama’s Kitchen

Mama’s Kitchen was started in 1998 by Candy and Jamie Swanson. Originally intended as a truck stop, Mama’s Kitchen grew to include a larger restaurant area in 2005 and has served breakfast and lunch to travelers from that time to the present. Located on the main highway through the city of Tulsa, the restaurant receives many travelers who opt to stop for a meal.

Mama’s Kitchen is twenty-three miles away from the Countryside Cafe. There are a few similarities to the menus served by both restaurants, as homestyle fare is offered. The differences between the two restaurant businesses is found in the family-friendly dining-booth atmosphere of the Countryside Cafe, while Mama’s Kitchen has countertops and bar stools throughout. This makes seating for a family difficult and children are not able to reach the countertops on stools at Mama’s Kitchen, which creates discomfort for children.

Buddy’s Bar & Grill

Owned by Robert “Buddy” Gorman, Buddy’s Bar & Grill is a full-service bar with a small dining room attached. The restaurant is located six miles from the Countryside Cafe. Meals are served at Buddy’s Bar & Grill during lunch and dinner; however, the restaurant is not open for breakfast. Meals are geared toward grilled hamburgers, steaks and fried fish, while the bar menu is laden with appetizer choices served during happy hour each Tuesday afternoon. Robert Gorman is assisted by his sister, Babs, who acts as the lone server in the grill and is known for her fast service and quick wit, which customers find charming. Children are not allowed in the bar, but they can be served in the grill side of the restaurant. The children’s menu is limited to hamburgers or cheese sandwiches served with fries.

Howard’s Family Restaurant

Howard’s Family Restaurant serves breakfast, lunch and dinner in a small dining room attached to the golf country club on the outskirts of Tulsa. It is located ten miles from the Countryside Cafe. Most patrons of Howard’s Family Restaurant are golfers who want to enjoy a meal before or after playing golf. The restaurant is one of a chain of restaurants and, while the prices are higher than those of the other cafes and small restaurants in Tulsa, the restaurant is known by the national marketing of the parent company. Children are served a special kids’ play and dine menu and families are highlighted as the primary target of the chain.

Competitive Advantage

Countryside Cafe will be able to offer the following advantages over their competition:

• Friendly, knowledgeable, and highly-qualified team of the Countryside Cafe.

Marketing Plan

Brand & value proposition.

Countryside Cafe will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a delicious meal in a pleasant surrounding for the entire family.
• Countryside Cafe will offer special discounted pricing for first-responders in Tulsa, including police, fire and hospital staff. Doctors and nurses are also included.
• First-time visitors to the Countryside Cafe will receive a free dessert of their choice, which helps guests feel welcome and comfortable.
• Unbeatable pricing to its clients; they will offer the lowest pricing in the city.

Promotions Strategy

The promotions strategy for Countryside Cafe is as follows:

Word of Mouth/Referrals

Countryside Cafe has built up an extensive list of contacts over the years by providing exceptional service and expertise to their clients, including guests of all ages. The personal contacts and business associates will follow the new owners to the new cafe and help spread the word of Countryside Cafe.

Professional Associations and Networking

The new owners of the Countryside Cafe, Cheryl and Tammy, will join the civic organizations and trade networks to help build their cafe to its potential. They will become active in the committees for city celebrations, as well, to help build visibility of their cafe and raise awareness of their specialty menu items.

Print Advertising

The Countryside Cafe will send a direct mail flyer to each home and business in Tulsa in the two weeks prior to the launch of the restaurant. The flyer will invite everyone to participate in special discounted offers during the first month of business and offer a free dessert for each person who stops by to check out the area’s newest cafe.

Countryside Cafe will fully utilize their website. The website will be well organized, informative, and list all the services that Countryside Cafe provides. The website will also list their contact information and list their menu and pricing, along with delivery options. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “homestyle cafe” or “cafe near me,” Countryside Cafe will be listed at the top of the search results.

The pricing of Countryside Cafe will be moderate and below or on par with competitors so customers feel they receive excellent value when purchasing their products and services. Certain items, such as the childrens’ menu items, will be priced at a reduced profit margin in order to facilitate larger families that want to visit and can afford to do so with the reduced prices.

Operations Plan

The following will be the operations plan for Countryside Cafe. Operation Functions:

• Cheryl Nelson will be the co-owner and president of the company. She will oversee all business development and manage client relations.
• Tammy Overton will be the co-owner and vice president of the company. She will manage the operations and oversee all staff members.
• Tyler Grant will be the Office Manager who will manage the office administration, client files, and accounts payable.
• Tommy Tucker will be the maintenance employee who will provide all maintenance and repairs at the property.

Milestones:

Countryside Cafe will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease restaurant space
• 5/15/202X – Finalize personnel and staff employment contracts for the Countryside Cafe
• 6/1/202X – Finalize contracts for Countryside Cafe vendors and wholesale accounts
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Countryside Cafe restaurant
• 7/1/202X – Countryside Cafe opens its doors for business

The Countryside Cafe will be owned by Cheryl Nelson and Tammy Overton. Together they have over twenty years of experience in managing and operating a regional cafe and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable organizations.

Cheryl Nelson is the former manager of a family-owned restaurant and Tammy was the head staff person of a chain restaurant.Together, they have decided to bring a family friendly environment and homestyle, fresh foods to Tulsa. The menu will include breakfast, lunch and dinner meals, as well as popular favorites such as ice cream sundaes and homemade pies any time of day.

Financial Plan

Key revenue & costs.

The revenue drivers for Countryside Cafe are the fees they will charge to customers for their products and services.

The cost drivers will be the overhead costs required in order to staff Countryside Cafe. The expenses will be the payroll cost, rent, utilities, inventory, office supplies, and marketing materials.

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of restaurant customers per Month: 1,000
• Average revenue per Month: $25,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Cafe Business Plan FAQs

What is a cafe business plan.

A cafe business plan is a plan to start and/or grow your cafe business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Cafe business plan using our Cafe Business Plan Template here .

What are the Main Types of Cafe? 

There are a number of different kinds of cafe businesses , some examples include: Take-Out Cafe, Restaurant Cafe, Casual cafe, and Coffee Shop.

How Do You Get Funding for Your Cafe Business Plan?

Cafe businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Cafe Business?

Starting a cafe business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

• Develop A Cafe Business Plan - The first step in starting a business is to create a detailed cafe business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your cafe business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your cafe business is in compliance with local laws.
• Register Your Cafe Business - Once you have chosen a legal structure, the next step is to register your cafe business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your cafe business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
• Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
• Acquire Necessary Cafe Equipment & Supplies - In order to start your cafe business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cafe business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful cafe business:

• How to Start a Cafe

How To Start A Coffee Shop (2024 Guide)

Updated: May 1, 2024, 5:13pm

Table of Contents

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

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

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

Create a Business Plan

Having a business plan is important. It’s similar to a map, helping you get from point A to point B.It’s also essential if you are seeking a loan or investment. You want your lender to see what you intend to achieve and how you plan for success.

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

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Choose Your Business Structure

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

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

Consider Costs: Funding and Finances

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

1. Have a Vision

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

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

2. Do Your Research

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

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

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

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

3. Identify Startup Cost and Equipment

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

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

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

4. Develop a Branding Strategy

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

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

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

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

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

5. Find a Location and Commercial Space

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

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

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

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

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

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

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

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6. File for Permits and Licenses

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

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

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

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

7. Choose the Right Coffee Supplier

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

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

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

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

Customer Service

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

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

8. Design Layout and Workflow

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

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

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

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

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

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

9. Order Equipment and Supplies

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

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

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

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

10. Hire and Train Your Team

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

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

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

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

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

11. Market Your Brand

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

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

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

12. Open House

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

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

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

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

Invest in a Strong Point-of-Sale System

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

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

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

Stay Ahead of the Game

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

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

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

Opening an Independent Coffee Shop

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

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

Opening a Franchise Coffee Shop

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

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

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

Bottom Line

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

How profitable is a coffee shop?

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

Do I need any qualifications to run my own café?

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

How do I write a simple business plan?

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

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

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

Cafe Business Plan Template

Written by Dave Lavinsky

Cafe Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their cafes. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a cafe business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Cafe Business Plan?

A business plan provides a snapshot of your cafe as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Cafe

If you’re looking to start a cafe or grow your existing cafe you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cafe in order to improve your chances of success. Your cafe business plan is a living document that should be updated annually as your cafe grows and changes.

Sources of Funding for Cafes

With regards to funding, the main sources of funding for a cafe are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a cafe is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your cafe business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of cafe business you are operating and the status; for example, are you a startup, do you have a cafe that you would like to grow, or are you operating a chain of cafes.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the cafe industry. Discuss the type of cafe you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of cafe you are operating.

For example, you might operate one of the following types:

• Take-Out Cafe: this type of cafe doesn’t have seating (or has limited seating) and is mostly visited by customers looking to grab a coffee and/or bakery item on their way to work or elsewhere.
• Restaurant Cafe: this type of cafe is most similar to a restaurant and offers a full, sit-down menu in a nice atmosphere with a full wait staff.
• Casual cafe: also known as a corporate, student or co-working cafe, this type of cafe typically offers food and drinks from a counter with no waiters or waitresses. Patrons purchase items and consume them in the cafe, often while performing work on their laptops or conversing with friends or colleagues.
• Coffee Shop: This is a popular type of cafe. Coffee shops usually offer a selection of tea, coffee, pastries and other drinks

  In addition to explaining the type of cafe you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business? What is your business concept? What is your unique selling proposition?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the cafe business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the cafe industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards cafes with ultra high speed internet connections, it would be helpful to ensure your location could offer such a service.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cafe business plan:

• How big is the cafe business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key local suppliers in your market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your cafe. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The market analysis section of your cafe business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: local office workers, college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the target audience you choose will have a great impact on the type of cafe you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most cafes primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cafes (and restaurants and/or bakeries depending on the type of cafe you operate).

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes restaurants, supermarkets and customers making coffee and bakery items themselves at home. You need to mention such competition to show you understand that not everyone in your target market will visit a cafe each day.

With regards to direct competition, you want to detail the other cafes or coffee shops with which you compete. Most likely, your direct competitors will be cafes located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

  With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior cafe products?
• Will you provide cafe products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cafe business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of cafe that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, will you offer pastries, soups, items such as café latte, cappuccino, espresso or macchiato?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your cafe. Document your location and mention how the location will impact your success. For example, is your cafe located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your cafe marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your cafe’s front store extra appealing to attract passing customers
• Distributing samples outside the cafe
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., gym members get a free cup of cafe with each pastry they purchase)
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cafe such as serving customers, procuring supplies, keeping the cafe clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 10,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.  

Management Team

To demonstrate your cafe’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the cafe, coffee shop and/or restaurant business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in cafes and/or successfully running retail and small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your cafe, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 catering contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cafe:

• Location build-out including design fees, construction, etc.
• Cost of fixtures like chairs, tables, signage and cafe decor
• Cost of equipment like grinders, espresso machines, blenders, refrigerators
• Cost of ingredients and maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Summary Putting together a business plan for your cafe is a worthwhile endeavor. If you follow the template above, you will be able to prepare a winning cafe business plan or a coffee shop business plan. You will really understand cafe business planning, business operations, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful cafe.

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

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

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Dreaming of opening a coffee shop ? You’re not alone. The coffee industry is bustling with passionate business owners eager to make their mark. However, becoming successful coffee shop owners requires more than just a love for the brew. It demands a clear vision that differentiates your coffee house in a saturated market. A well-crafted business plan not only gives life to your idea but also sets your business on a path to thrive. Whether you’re a newbie or a seasoned entrepreneur, this guide, complete with a free template, will help you craft a business plan that markets and propels your coffee venture to success.

What is A Coffee Shop Business Plan?

A coffee shop business plan is a comprehensive document that explains what your business idea is, how you intend to penetrate the coffee market, and the strategies you’ll employ to run your coffee shop successfully. When opening a cafe, many aspiring cafe or coffee shop owners underestimate the value of a structured plan. However, this document does more than just outline the needs to open a coffee shop; it gives a detailed roadmap for your new business, offering clarity on every aspect of its operation.

More than that, presenting a well-structured business plan to potential investors is essential. It not only showcases your commitment but also your understanding of the industry, making it a vital tool for securing funding. While crafting a business plan can seem daunting initially, it’s the foundation that both clarifies your idea and sets your business on the trajectory for growth and success in the competitive world of cafes and coffee shops.

Why A Business Plan Is Important For A Successful Coffee Shop Business?

1. Clear Vision and Objectives

When you set up your coffee shop, having a business plan establishes a clear vision and defines your objectives. It is the backbone that steers every decision you’ll make. Without a clear outline, you may find yourself swaying from one idea to the next. With a detailed business plan, you can present a clear business proposal to stakeholders, ensuring them and yourself of the path you plan to tread.

2. Financial Planning

A comprehensive business plan is imperative for accurate financial planning. It will include information on how much capital is required to start, what your ongoing costs will be, and the revenues you plan to generate. If you’re seeking external funding, investors will want to see how you plan to use their money, and most importantly, how you plan to make a return on that investment. If you plan to sell specialty blends or unique treats, the financial section can also help you plan a strategy for pricing, promotion, and sales forecasts.

3. Operational Efficiency

Operational efficiency is the linchpin that holds all business operations together. A business plan will map out every detail, from supplier agreements to employee schedules. You may want to create special events or loyalty programs for regular customers, and this is where a business plan can help you plan a strategy for success. It becomes the reference point, ensuring that daily tasks align with the broader objectives, guaranteeing that resources, time, and efforts are used optimally.

Step-by-step Guide To Write A Coffee Shop Business Plan

1. Executive Summary

The Executive Summary is like the introduction of a novel – it provides a snapshot of what is to come. Typically, you write the executive summary last, even though it appears first in your business plan. It encapsulates the essence of your coffee shop’s mission, objectives, and financial overview, succinctly explaining what your business concept is about. This section is crucial because many coffee shops fail to engage potential investors right off the bat. Ideally, it should be concise – a page or two.

What should you cover in an Executive Summary?

• Introduce Your Coffee Shop or Cafe: Provide a company overview, giving readers insight into what makes your coffee shop unique from the myriad of coffee bars in the market.
• State Your Mission and Vision: Describe what drives your coffee business and where you see it in the future.
• Outline Your Objective: Define clear, measurable goals that you aim to achieve.
• Provide a Financial Overview: Highlight projected profit margins, a brief balance sheet, and other pertinent financial data.

2. Coffee Shop Business Description

This section paints a picture of your coffee shop. It’s where you elaborate on how you plan to infuse the local coffee market with your unique brews and pastries.

What should you cover in the Coffee Shop Description section?

• Coffee Shop Concept: Dive into the types of coffee drinks you plan to offer, whether it’s a rich espresso or a classic brewed coffee.
• Unique Selling Proposition: Discuss what makes your coffee shop stand out, be it a special blend of coffee beans, a unique roasting method using a specific coffee roaster, or artisanal pastry offerings.
• Operational Plan: Briefly touch upon how you’ll manage your coffee shop, from sourcing beans to serving cups of coffee.

3. Market Analysis

Before pouring your first espresso, performing market research before starting your coffee business is essential. This section dives deep into understanding your potential customer base and the coffee industry landscape in your area.

What should you cover in this section?

• Target Market: Describe your ideal customer. Are they local residents, office workers, or students?
• Location: Discuss the significance of your chosen location. Are there many coffee shops in the area? How does your location cater to your target market?
• Competition: Analyze existing coffee shops. What coffee and food products do they offer? What pricing strategy do they employ? How will your coffee shop compete or complement them?

4. Organization and Management

Behind every successful coffee shop is a robust organizational structure and a competent management team.

What should you cover in the Organization and Management Plan?

• Coffee Shop Ownership Information: Highlight the business’s legal structure.
• Profiles of Your Coffee Shop Management Team: Include details about your baristas, perhaps a part-time accountant, and someone to manage marketing. It can be helpful to create profiles for each role, detailing responsibilities and expertise.

5. Sample Menu

Your menu is the heart of your coffee shop. It’s more than just a list of coffee and tea; it’s an expression of your brand.

What should you consider when creating a Sample Menu?

• Menu Items: Detail the types of coffee, espresso drinks, and pastries you plan to offer. Maybe consider including non-coffee items like teas or specialty drinks.
• Unique Selling Proposition: Reiterate what makes your coffee or food items different from other coffee shops in the area.
• Menu Pricing : Discuss your pricing strategy, keeping in mind profit margin, competitors’ prices, and your target customer base.

6. Marketing Plan

To brew success, it’s not enough to have a fantastic coffee product; you must effectively market it.

What should you cover in a Marketing Strategy for your Coffee Shop Business?

• Define Your Brand: What voice, theme, or emotion do you want your coffee shop to evoke?
• Lay out your plans for social media campaigns, local partnerships, loyalty programs, SEO for website, and other promotional strategies.
• Considering using an  online food ordering system  in your food truck
• Create a  digital menu with QR code  to make your menu easy for your customers to access online

7. Operations Plan

Efficiency is key to the daily grind of running a cafe. The operations section provides a detailed look at the day-to-day operations of your coffee shop business.

What Operational Issues should you address in your Business Plan?

• Supply Chain: Where will you buy your coffee beans? Who will be your coffee roaster?
• Operating Hours: Consider the best times to cater to your target market.
• Staffing: Detail roles, such as barista, manager, and part-time support.
• Equipment: List down essential equipment, from espresso machines to ovens.

8. Financial Plan

In this crucial section of your business plan, delving into the financial specifics is paramount to lay out a concrete roadmap for the fiscal aspects of your coffee shop.

How Much Does It Cost to Start a Coffee Shop?

Starting a coffee shop is not just about brewing the perfect espresso; it’s also a substantial financial commitment. The cost for opening a coffee shop can range from $80,000 to $250,000. These costs can vary widely based on factors such as location, size of the establishment, equipment quality, and inventory requirements. Moreover, the process of opening a coffee shop might also involve unexpected expenditures, so it’s essential to account for some buffer in your budget.

How Many Ways to Fund Your Coffee Shop?

There are multiple avenues for funding your coffee venture. Traditional bank loans, personal savings, angel investors, crowdfunding campaigns, and partnerships are just a few options. It’s crucial to assess which option aligns best with your business vision and financial situation.

Important Questions to Consider When You Create Your Funding Request If you’re seeking funding, there are several questions you’ll need to answer in your business plan:

• How much money do you need to start and maintain your coffee shop until it becomes profitable?
• What will the funds be used for specifically?
• How do you plan to handle financial challenges that might arise?
• How do you plan to repay any loans or provide a return on investment?

9. Financial Projections

The financial projections section of your business plan forces you to translate your coffee shop vision into numbers, ensuring you’ve accounted for all key metrics that can make or break your venture.

Break-even analysis:

This is the point where your coffee shop’s total revenues equal its total costs. Simply put, it’s when you neither make a profit nor a loss from selling coffee.

Use this formula:  Fixed Costs / (Price – Variable Costs) = Break Even Point

Projected profit and loss statement:

This will provide a forecast of your expected income and expenses, giving a clear view of your venture’s profitability.

Cash flow analysis:

Essential for understanding the liquidity of your business, this tool is especially crucial for coffee shops, considering the fluctuating expenses and incomes coffee shops offer. When drafting this, consider who will read it, as stakeholders like investors or lenders might have specific expectations.

Coffee Shop Business Plan Template

• Mission: To offer the community high-quality coffee in a comfortable and vibrant environment.
• Vision: To become the go-to local coffee spot that fosters community connections and coffee appreciation.
• Coffee Shop Description: “Java Junction” will be a modern coffee hub that emphasizes direct-trade coffee beans and a relaxed, inclusive atmosphere.
• Costs: Estimated initial costs are $125,000.
• Profits: Projected annual profit by year two is $75,000.

2. Description of the Coffee Shop

• Coffee Shop Concept: A community-focused café emphasizing artisanal methods.
• Coffee Shop Name: Java Junction. (Consider using a coffee shop name generator for more ideas).
• Coffee Shop Type: Sit-down café with an adjacent mini-library.
• Location: Main Street, Downtown Area – chosen for its high foot traffic.
• Order Fulfillment: Orders taken at the counter with table service for food.
• Working Hours: Mon-Fri (7 am – 9 pm), Sat-Sun (8 am – 10 pm).

3. Menu Offer

• Type of Food and Drink: Coffee, teas, pastries, and sandwiches.
• Offer: From classic espresso shots to unique blends like “Lavender Latte”.
• Unique Selling Point: Every coffee product uses direct-trade beans, ensuring farmer fairness.

4. Market and Competition Analysis

• Market Analysis: The local population includes a mix of professionals, students, and tourists. Many search for quiet spots to work or relax.
• Target Customer: Professionals aged 25-40 and students.
• Size of the Target Customer: Approximately 15,000 individuals.
• Competition Analysis: Three established coffee shops within a mile.
• Size of the Competition: Ranging from small boutique coffee shops to a larger chain.
• Competitors’ Offer: Basic coffee drinks, with limited specialty items.
• Competitors’ Prices: Average of $4 for a coffee drink.

5. Investment Plan (Detailed Cost Analysis)

• Equipment: $30,000
• Renovations: $20,000
• Initial Stock: $10,000
• Licenses: $5,000
• Miscellaneous: $10,000
• Rent: $3,000
• Salaries: $10,000
• Utilities: $1,000
• Stock: $2,000
• Marketing: $1,000

6. Financial Forecast

Year one is projected to break even, with a profit of $50,000 expected in year two, and $75,000 in year three, considering growth and expanding customer base.

• Owner: Jamie Smith, a coffee enthusiast with a business degree.
• Manager: Alex Brown, previously managed a successful coffee chain for five years.
• Baristas: A team of 4 skilled individuals passionate about coffee.

8. Marketing Plan

Java Junction will use a mix of social media marketing, local print advertising, and loyalty programs to attract and retain customers. Regular events, such as “Buy Our Coffee Day” and collaboration with local businesses, will drive foot traffic and community engagement, integral components for starting your coffee shop and making it successful.

This coffee shop business plan sample is hypothetical and serves as a template. Tailoring specifics to your local market, vision, and unique aspects will be necessary. Every coffee shop has nuances that can make them successful, whether it be the coffee products they sell, the environment they cultivate, or the events they host. Focus on what will make your coffee shop stand out and be sure to engage your community.

Tips For Writing a Business Plan For a Coffee Shop

Your business plan becomes the blueprint of your vision. Here are essential tips to consider:

• Comprehensiveness is Key: Ensure your plan encompasses all sections you should include, such as marketing, financial projections, and operations. A well-rounded plan provides a holistic view of your business.
• Tailor to Your Audience: If you’re presenting to potential investors, focus on profitability and growth projections. For a landlord, emphasize the benefits your coffee shop will bring to their property.
• Specialize in Marketing: Given the competitiveness in the coffee industry, it’s crucial to have a solid marketing plan. If marketing isn’t your strength, consider hiring someone to do marketing for your venture. A strong online presence, loyalty programs, and community engagement can set you apart.
• Research Your Market: Understand what nearby coffee shops include in their offerings. Identify gaps in the market and strategize on how your shop can fill them.
• Stay Flexible: While a business plan provides direction, remain adaptable. The coffee industry is dynamic, and your ability to pivot can prove invaluable.
• Separate Sections for Clarity: If your plan becomes too dense, you might want to create a separate document for specific sections like a detailed marketing strategy or an in-depth market analysis. This makes your primary business plan concise and more readable.

Frequently Asked Questions

1. how profitable is owning a coffee shop.

Owning a coffee shop can be profitable, depending on factors like location, quality of products, and management. On average, after expenses, many coffee shops report a profit margin of around 3% to 5%, with some successful ones achieving even higher. However, it’s essential to factor in initial setup costs, ongoing expenses, and market competition.

2. How do I start a coffee shop business plan?

Starting a coffee shop business plan involves multiple steps. Begin by defining your coffee shop’s mission and vision. Conduct market research to understand your target audience and competitors. Then, detail out sections like your product offerings, pricing strategy, marketing plan, financial projections, and operational procedures. If you’re thinking of opening a coffee shop, a well-thought-out business plan is indispensable.

3. What is a business plan for a coffee shop?

A coffee shop business plan is a detailed document that outlines your coffee shop’s objectives, strategies, and operational procedures. It acts as a roadmap, guiding you from the startup phase to establishing a thriving business. Moreover, if you need a coffee shop business loan or investment, this plan becomes crucial in convincing stakeholders of your venture’s viability.

4. What are the 4Ps in a coffee shop business plan?

The 4Ps stand for Product, Price, Place, and Promotion. In the context of a coffee shop:

• Product: What type of coffee and related products will you offer?
• Price: How will you price your coffee? Will it be premium or competitive?
• Place: Where will your coffee shop be located? Is it accessible to your target audience?
• Promotion: How will you market your coffee shop? Will you offer promotions or loyalty programs?

These elements help in creating a marketing strategy tailored to your coffee shop’s unique needs and market position.

Related Coffee Shop Resources

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

Launching a coffee shop is not just about brewing the perfect cup but weaving a narrative that resonates with your community, fostering an ambiance that people gravitate towards, and maintaining a seamless operation that drives profitability. The meticulous creation of a business plan is a pivotal step in this endeavor. It’s the beacon that guides budding entrepreneurs through the complexities of the coffee industry. In such a competitive marketplace, a well-structured, comprehensive business plan can make the difference between a fleeting venture and a thriving institution. To potential coffee shop owners, embrace the process, let your passion shine through in your plan, and remember that every great coffee shop started with a simple idea, much like a single coffee bean ready to brew greatness.

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How to Open a Café Business

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

Successfully Opening a Café Business

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

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

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

How much does a café business cost?

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

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

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

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

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

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

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

Beginner's Guide

Opening a Café Business (Easy Steps)

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

Trending Articles on Coffee Shop Startups:

Steps Open a Café Business

Pick a café concept..

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

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

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

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

Choose your café menu.

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

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

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

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

Determine what's going to make you stand out

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

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

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

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

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

Define your cafe branding.

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

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

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

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

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

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

Determine your cafe budget.

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

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

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

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

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

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

Opening a café business

Understand who your café customers will be.

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

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

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

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

Set up your business structure.

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

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

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

Choose your cafe location.

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

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

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

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

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

Pick your cafe equipment.

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

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

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

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

Write a café business plan

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

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

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

Determine your café funding.

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

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

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

Choose your café roaster and vendors.

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

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

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

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

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

Build Out Your Café.

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

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

Get your cafe license and permits.

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

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

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

Develop a coffee brand & marketing strategy.

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

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

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

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

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

Hire amazing baristas.

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

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

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

Deliver excellence every time

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

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

Further Reading : How to Start a Coffee Shop Successfully

Opening a Café Business

Additional Questions:

Is it hard to open a café.

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

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

How much money do café owners make?

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

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

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

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

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

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

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

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

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

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

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

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

July 12, 2024

Jul 12, 2024

17 min read.

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

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

Explore how Lark has helped Journey Kaffe grow

What is a cafe business plan?

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

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

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

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

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

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

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

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

Discover how ZUS Coffee propelled growth with Lark

What should you include in your cafe business plan?

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

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

Executive summary

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

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

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

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

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

Business description

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Demographics

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SWOT analysis

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

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

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

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

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

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

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

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

Competition analysis

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

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

Specifically, conducting a competition analysis helps you:

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

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

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

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

How to conduct a competition analysis

Follow these steps for a solid competition analysis:

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

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

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

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

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

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

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

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

Costs and revenue forecasting

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

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

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

How to conduct cost and revenue forecasting

Build this section around the following three points:

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

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

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

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

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

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

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

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

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

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

Staff and management

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

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

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

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

Legal information

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

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

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

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

Marketing plan

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

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

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

Use Lark’s restaurant sales guide for smooth cafe operations

Coffee shop business plan example: Green Elephant Cafe

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

Green Elephant Cafe - Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cost and revenue forecasting

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

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

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

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

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

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

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

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

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

Check out Lark’s detailed restaurant opening checklist

Cafe business plan outline for your use

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

Explore Lark’s detailed guide on restaurant marketing

Common cafe business plan FAQs

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

How profitable is owning a cafe?

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

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

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

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

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

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

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

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

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

Before opening a coffee shop:

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

Familiarize yourself with local regulations and licensing requirements.

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

Identify the USP that sets you apart from the competition.

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

How do you calculate profits for a cafe business plan?

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

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

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

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

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

Let Lark help you run a profitable cafe or coffee shop

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

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

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

To learn more, try Lark for free .

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Cafe business plan template + PDF

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

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

How this cafe business plan sample was created

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

Cafe business plan sample

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

• Organizational Structure and Management Team

Products or Services

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cafe business plan template

Organizational structure and management.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Café business plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cafe business plan example

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

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

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

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

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

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

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

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

Cafe business plan

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

Competition

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

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

Economic Downturns

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

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

Supply Chain Disruption

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

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

Changing Consumer Preferences

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

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

Regulatory Changes

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

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

Financial Management

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

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

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

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Starting a cafe is no small endeavor, but anyone who appreciates the Parisian way of life can tell you how integral a local, welcoming cafe is to any community. But when you’re starting a business, there are several things to consider and processes to complete to make it official.

Wondering how to open a cafe in your neighborhood? We’ve got you covered. In this guide, we’ll provide the tools to help you learn how to open a cafe and build a successful business.

Know your competition

There are over one million restaurants and over 30,000 coffee shops in the United States. New cafe owners can expect some steep competition. Of course, these dining options are more concentrated in some areas than others. Your neighborhood may be in desperate need of a great new cafe. That’s why your first step in starting a cafe should be to get to know your competition.

Maybe there is an obvious need you can fill, or perhaps you can take a look at what isn’t working for other local cafes and create a superior option for consumers. Look back at your town’s business records. Which cafes have closed in recent years? Do you know why they closed? Scour review sites like Yelp to see why your competition is being praised and criticized. But most importantly, make sure your business can contribute to local life before you invest too much time or money toward starting a cafe.

Create a business plan

No matter what type of business you want to start, creating a business plan is key to launching any successful endeavor. Your business plan is made up of eight sections, but you can alter your business plan to suit the specific needs of your cafe. The goal is to create a plan that will keep you on track, organize your research and prepare to prove your value to potential investors. Here are some of the topics you'll want to hit.

Executive summary

The executive summary gives you a chance to summarize your company’s value proposition. While this section leads your business plan, you will likely write it last as a summary of the subsequent sections of your business plan. You’ll use this section to explain what your business does, as well as what your current state of affairs looks like. You will also give a financial breakdown for where you see the business in three to five years. And of course, you can't forget to include what factors will drive your business's success.

Market analysis

This section builds on our first step and offers a more in-depth and higher-level analysis of your industry , market and any potential competitors. Utilize this section as an opportunity to prove your knowledge of the market and what unique void your cafe will fill.

The number one reason businesses fail is a lack of market need for their products or services, so make sure there’s demand for your cafe before you continue with the next steps.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Marketing and sales plan

If you want your business to succeed, you’re going to need a little more than word of mouth to reach new customers — at least when you’re first starting out. Once you’re more established, word-of-mouth marketing can be an effective way to gain new customers.

Your marketing strategy and sales plan should have a two-part approach. Positioning and promotion. How are you going to position your products to customers? What makes your goods or services special or valuable? Now that you know what your sell is, come up with a promotional plan that will get your brand in front of the eyes and ears of customers.

Financial plan and projections

When you share your financial plan and projections, you’ll give a glimpse at the current state of your business finances. You’ll also project where you see your finances going in the future based on your expected sales, expenses and more. Existing businesses that are creating, or updating, a business plan can use data from their past financial performance. They may want to include information such as income history, cash flow and balance sheets. If you’re just starting your cafe, you’ll likely have to use research and estimations to complete this section.

Learn the rules

Like any food services business , operating a cafe comes with an added degree of responsibility to your consumers, which is why the government will hold you accountable for cleanliness and safety. Before you open a cafe, learn more about the food services regulations in your state . Each state has different rules in place, so make sure you’re familiar with your state’s and devise a plan to comply. If possible, talk to other small business owners in the food services industry to be sure you have all the information you need.

Get the proper licenses, permits and insurance

You’re well on your way to starting a cafe, but before you can continue you’ll need to make sure you’re legally allowed to operate your business. The legal requirements of registering and licensing your business will vary based on your industry and location. However, you will likely need multiple business licenses at the state, federal, and local levels when starting a cafe.

Again, because you’ll be handling and serving food, you’ll be required to obtain more licenses and permits than a non-food services business, including food and health code licenses, health department permits, and more. If you plan on serving alcohol in your cafe, you’ll also need a liquor license. Additional licenses or permits may apply, including building, zoning or land-use permits; signage permits; and more.

If you plan on hiring employees to work in your cafe, you'll also need to obtain an employer identification number, or EIN. This will be required for tax purposes, among other things, but even if you don’t plan on hiring employees, there are several benefits of getting an EIN.

Additionally, you will need to obtain some type of business insurance for your cafe. If you have employees, you’ll be required to carry workers' compensation, unemployment, and potentially disability insurance. General liability and commercial property insurance are also common types of coverage. However, for the food services industry specifically, you’ll want to look into even more insurance policies, such as liquor and auto liability, fire, and food contamination insurance.

If you haven’t consulted with a business lawyer yet, now is a good time to do so to ensure you’re starting a cafe that is compliant with the law and protected from any potential issues down the road.

Hire the right people

A good cafe can make you feel right at home. And no one wants to feel uncomfortable in their own home. Thus, it’s important to hire cooks, servers, cashiers and management that will commit to maintaining your brand’s level of quality so that both you and your customers feel comfortable.

Not only do you want to hire the best employees, but you also want to create a productive and safe work environment so you can retain your talent. And if you’re new to hiring, avoiding these mistakes can help the process go more smoothly.

LLC Formation

Find small business funding

At some point along this journey, you likely wondered, "How much does it cost to open a cafe?" The costs will depend on your cafe’s location, renovation, marketing, employment and supply needs. There’s a very good chance you’ll need to find a business loan for your cafe to help with startup costs. There is no one-size-fits-all approach to business funding, so take your time when you consider what path you want to take. You may find the following funding options are a good fit for your business.

Business loans: While some business loans , such as SBA loans , may be out of reach for a brand-new business, if your cafe has been operating and profitable for a few years, these could be a great solution to your cafe’s funding needs.

Business lines of credit: With more flexibility than a standard business loan, a business line of credit gives you a set amount of money from which you can draw to cover your business expenses.

Business credit cards: A business credit card is a good option for startup business owners whose lack of credit history and time in business may put more traditional funding options out of reach. In fact, a 0% intro APR credit card can be treated almost like an interest-free loan. Just make sure you have a plan to pay off your balance before the introductory offer ends.

Equipment financing: Starting a cafe comes with significant upfront costs due to the equipment required, including kitchen appliances, furniture and more. With equipment financing , a lender fronts you the money specifically for the purchase of equipment, which then serves as collateral on the loan, making this type of financing easier to qualify for than other options.

Startup funding: There are some types of startup financing that cater toward new businesses, such as SBA microloans and some business grant . You may also turn to crowdfunding to get your cafe business off the ground.

Find and manage supplies

Whether you’re all about the farm-to-table movement or will be offering a very specific item, you need to get your suppliers settled before opening your cafe. How you source your ingredients, as well as less thrilling supplies like to-go containers and utensils, is an integral part of running a cafe. You’ll want to sit down and calculate how much inventory to carry, as well as how much it will cost and where you’ll source it from.

Don’t forget to look up reviews of your suppliers or ask for customer testimonials. You need to work with suppliers you can rely on. Feel free to make the rounds in your local entrepreneur network, as well. Recommendations from business owners you trust are a great place to start.

Next, you’ll have to create an inventory system that is easy to follow and reliable. Any cafe worth its salt knows you can’t risk accidentally running out of coffee filters on a busy Sunday morning. A good place to start may be with an inventory management app so you can keep track of what’s going in and out of your cafe, and when.

Choose a POS system

You’re likely dreaming of the day you’ll make your first dollar. While you may want to hang that dollar up on the wall, you’re also going to want to have systems in place that ensure you receive payment properly for every sale you make. A point-of-sale system will be essential to process these payments. While there are various POS systems to choose from, you’ll likely want to opt for one geared specifically toward business in the food services industry. Finding a good POS system for your cafe is a business necessity and will help all of your transactions run smoothly.

Build your dream cafe

When you first started thinking about how to open a cafe, this is likely what you imagined. Now that the paperwork and less creative work has been established, it’s time to do the work you love: Find your perfect location, hunt down the decor that gives you all the good vibes, build the perfect menu, play around with ideas for how to make your cafe stand out.

Visit other cafes and take notes on what you like and dislike. Is free Wi-Fi a must? How about comfy chairs or pretty plants? Do you like a menu with a lot of versatile choices or a more specialized one? Stay true to your vision and beliefs and you'll create a cafe that customers will flock to.

The bottom line

There will be countless long days spent making your cafe dreams a reality. Hopefully, this guide on how to start a cafe business will give you the jumping-off point you need. With these steps accomplished, you’ll be in a great position to start welcoming customers into your new cafe. Where you take it from there is up to you!

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Food Cafe Business Plan

Having a cafe that smells like coffee and confectionery, buzzing with chatter, and made friendlier, and more engaging with books and music is a dream for many.

And if it’s your dream too, the search engine has brought you to the perfect spot!

Now you no longer need to sit and dream about having a cafe. Because we have tips and practices that can help you start your cafe business.

Opening a food cafe from scratch can be intimidating, but not if you have a food cafe business plan .

Industry Overview

The cafe industry stood at a whopping market value of 47.5 billion dollars in 2019. Though the pandemic had a major impact on the industry, it is gaining momentum once again.

According to statistics, Starbucks is the leading coffee brand in the US, with frappuccino being its most popular drink.

Although people of all ages consume coffee, with the senior population consuming three times more coffee than the younger ones, the 18-29-year-olds tend to be more experimental with their coffee than the older population.

Hence, it is a good practice to study your target audience and a few other aspects of the business to serve your customers better.

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Things to Consider Before Writing Your Food Cafe Business Plan

Although a business plan helps you deal with several aspects of your business, there are a few aspects you should look into before getting started.

Pick a theme

Now you might wonder what theme has to do with a cafe, isn’t great coffee enough?

But let’s say, think about Starbucks for example. Or Dunkin Donuts. They are the leading coffee brands in the US and what sets them apart from all the other brands is their theme.

There is a highly likely chance that a Starbucks cafe anywhere would have a similar look and feel, even if it optimizes its menu to serve different customers.

Hence, the theme makes a major contribution to building your brand’s identity.

Decide upon a business structure

The legal structure of your business decides a lot ranging from taxes to the liability on your personal assets. Hence, it is important to figure out your legal structure before getting started.

Look into all of your options, and pick the one that fits your business the best.

Figure out the resources you’ll need

We all know that you’ll need supplies to whip up brilliant coffee, but for running a cafe you’ll need resources beyond the material. Both literally and figuratively.

Opening and running a cafe single-handedly is a herculean task, hence figure out the resources and help you’ll need from people before getting started.

Add services to enhance customer experience

The cafe business is extremely profitable if done right, but it attracts a lot of competition too. Hence, it is important to offer services that’ll help you stand out from your competitors.

It can be anything from a library, to live music, a painting bar, or even a live dessert counter. Offer something that enhances your customers’ experience and makes them want to return again.

Write Your Business Plan

Before you start writing your business plan for your new food cafe business, spend as much time as you can reading through some examples of  food and restaurant business plans .

If you are planning to start a new food cafe business, the first thing you will need is a business plan. Use our sample food cafe business plan to start writing your business plan in no time.

We have created this sample food cafe business plan for you to get a good idea about what a perfect food cafe business plan should look like and what details you will need to include in your stunning business plan .

Reading some sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

Food Cafe Business Plan Outline

This is the standard food cafe business plan outline which will cover all important sections that you should include in your business plan.

• Introducing Rodeo Mexican Cafe
• Funding Requirement & Capitalization Plan
• Summary of Financial Highlights
• The Rodeo Experience
• The Rodeo Vision
• Purpose Statement
• Cuisine Overview
• Jessica’s Tienda de Regalos
• Other Rodeo Activities
• Customer Service Excellence
• Creating a Great Service Staff
• Attention to Details
• Kid’s Menu
• Sunday Brunch Menu
• Strict Inventory Controls
• Purchasing Cost Controls
• Recipe & Portion Controls
• Cross Utilization of Inventory
• Sanitation & Food Handling
• Software & Systems
• Training Program
• Money Management
• Retention through Support & Feedback
• Operating Details
• Target Market
• Market Segmentation
• Rodeo’s Neighbors
• Competitive Landscape
• Key Competitors
• Competitive Advantages
• Market Positioning & Branding
• Marketing Strategies
• The Rodeo Staff
• Compensation Program
• Professional Services Providers
• External Issues
• Funding Requirement & Capitalization
• Brunch Revenue Assumptions
• Lunch Revenue Assumptions
• Dinner Revenue Assumptions
• Balance Sheet (Five-year projections)
• Income Statement (Five-year projections)
• Cash Flow Statement (Five-year projections)

After getting started with Upmetrics , you can copy this sample cafe business plan into your business plan to modify the required information, and download your food cafe business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample food cafe business plan

Need help writing your business plan from scratch? Here you go;  download our free food cafe business plan pdf  to start.

It’s a modern business plan template specifically designed for your food cafe business. Use the example business plan as a guide for writing your own.

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Cafe Business Plan Template

Are you aspiring to open your own cafe but unsure of where to begin? Search no more! Our complimentary cafe business plan template is the ideal resource to kickstart your journey. This all-encompassing guide will lead you through the steps of crafting a robust business plan that paves the way for your triumph. Utilizing our adaptable template, you can tailor your plan to match your distinct vision and objectives, ensuring a confident launch for your cafe with a solid foundation in place.

Get the free business plan template here!

If you're looking to start a cafe and need a plan to get started, you're in the right place. This free business plan template is designed to help you create a comprehensive plan for your cafe that will guide you through the process of starting and growing your business.

Starting a cafe can be an exciting and rewarding venture, but it can also be challenging. With so many details to consider, it's easy to get overwhelmed. That's why a solid business plan is crucial for success. It will help you clarify your vision, outline your goals, and create a roadmap for achieving them.

Our cafe business plan template is designed to be easy to use, even if you have no previous business ownership experience. It includes all the sections you need to create a comprehensive plan, including:

Executive summary: This section provides an overview of your cafe, including your mission statement, products or services, target market, and financial goals.

Company description: This section provides more detailed information about your business, including its legal structure, ownership, and management team.

Market analysis: This section analyzes your target market and the competition in your industry. It includes information about your ideal customer, your competitors, and the overall market size and trends.

Products: This section outlines your cafe products, including any unique spin on them, and what impact you expect them to have.

Sales and marketing plan: This section outlines how you plan to reach and sell to your target market. It includes your pricing strategy and promotional tactics.

Financial projections: In this section, we provide real examples of real cafe financial projections that show you exactly what you should include about your financial projections in your business plan.

Funding request: If you need funding to start or grow your business, this section will help you outline your funding needs and present your plan to potential investors or lenders.

Our cafe business plan template is completely customizable to fit your specific needs. You can add or remove sections as needed and fill in the details that are most important to your business. The template includes helpful tips and guidance throughout, as well as examples of completed sections to help you get started.

To access the free cafe business plan template, simply enter your email address and name in the form provided. You will receive a link to download the template.

With this free cafe business plan template, you will have the tools you need to create a comprehensive plan for your cafe. Whether you're just getting started or looking to take your business to the next level, a solid plan is the key to success. Get started today!

Cafe Business Plan Outline

I. Executive Summary

- Brief overview of the business idea, target market, and goals

II. Market Analysis

- Description of the coffee market, including trends and competitors

- Analysis of target customer demographics and their coffee habits

III. Business Concept

- Description of the coffee shop's unique selling proposition and concept

- Details of the menu offerings and any special features or services

IV. Marketing Strategy

- Overview of marketing and advertising efforts, including social media, promotions, and local events

- Analysis of pricing strategy and how it will attract customers

V. Operations Plan

- Description of the day-to-day operations, including staffing, scheduling, and inventory management

- Discussion of any technology or equipment needs and how they will be procured

VI. Financial Plan

- Projections for start-up costs, ongoing expenses, and revenue

- Breakdown of funding sources, such as loans or investments

- Discussion of the target profitability and growth potential for the business

VII. Management Team

- Brief descriptions of key management members and their experience

- Discussion of any partnerships or strategic relationships

VIII. Conclusion

- Summary of key points and future plans for the business

Cafe Business Plan Frequently Asked Questions

Q: Why is a cafe business plan essential?

A cafe business plan serves as a roadmap for your venture. It assists in identifying your target market, understanding the competitive landscape, and projecting your finances. Crafting a business plan enhances your insight into your cafe business and improves your chances of success.

Q: What should be incorporated into a cafe business plan?

A cafe business plan should encompass an executive summary, company description, market analysis, product lineup, sales and marketing strategy, financial projections, and funding request. Each of these sections should be customized to suit your specific cafe.

Q: What is the ideal length for a cafe business plan?

The length of a cafe business plan can vary, but it typically falls between 25 and 35 pages. It's important to include all necessary details while avoiding overwhelming the reader with excessive information.

Q: Is it necessary to hire a professional to draft my cafe business plan?

While it's not obligatory to engage a professional for writing your cafe business plan, it can be advantageous if you lack experience in creating business plans. Alternatively, you can utilize templates and online resources to guide you through the process.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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Cafe Business Plan: Writing Tips & Free Template

Table of Contents

Are you passionate about coffee and dream of opening your cafe? While owning a coffee shop may be exciting, getting started can be overwhelming. That’s where writing a business plan comes in. If you’re wondering how to write a cafe business plan , you’re in the right place. This article will guide you through the fundamental components of a cafe business plan. Our coverage will encompass the process of conducting market research, devising a menu, and outlining a staffing strategy. Whether you’re a novice or seasoned business proprietor, you’ll learn how to write a cafe business plan to position your cafe for triumph.

What is a Cafe Business Plan?

A cafe business plan is a written document that outlines the significant aspects of starting and running a cafe business . It is a roadmap that provides a detailed overview of the cafe’s objectives, strategies, target audience, market research, financial projections, and operational plans.  A cafe business plan is crucial for attracting investors, securing loans, and guiding the business’s growth and development. It typically includes information about the cafe’s concept, location, menu, pricing strategy, marketing and sales plan, management structure, and staffing requirements. A well-crafted cafe business plan can help entrepreneurs assess the viability of their cafe concept. And ensure that they are well-prepared for the challenges of operating a successful cafe business.

How to write a Cafe Business Plan

A cafe business plan should include detailed information on the products and services offered, target market, competition, marketing strategies, financial projections, etc. Below are some of the major components to include in a cafe business plan:

Executive Summary

The executive summary is a quick synopsis of the entire cafe business plan. It should include an overview of the company’s mission statement, vision, target market, products and services, competition, marketing strategies, financial projections, and management team. It is the first section of the business plan, but it is usually written last.

Business Description

This section should provide a detailed description of the cafe, including the type of business entity, location, size, hours of operation, menu, and pricing. It should also include information about the target market, such as demographics and preferences.

Market Analysis

The market analysis section should provide an in-depth analysis of the cafe’s target market. It should include information on the market size, growth potential, market trends, and customer profiles. Additionally, it should analyze the competition in the market, including its strengths and weaknesses.

Products and Services

This section of the business plan should provide a detailed description of the products and services offered by the cafe. It should include information on the menu, pricing, quality of ingredients, and special promotions or events. It should also highlight unique features or specialties that differentiate the cafe from competitors.

Marketing and Sales Strategies

This section should outline the cafe’s marketing and sales strategies, including advertising, promotions, public relations, and social media campaigns. The plan should also include information on pricing, distribution channels, and sales projections.

Management and Organization

This section should provide information about the management and organization of the cafe. It should include the names and qualifications of key personnel, such as the owner, managers, and chefs. It should also have a detailed description of the management structure, job descriptions, and the roles and responsibilities of each team member.

Financial Projections

The financial projections section should provide a detailed analysis of the cafe’s expected revenue, expenses, and profits over the next three to five years. It should include information on startup costs, cash flow projections, and break-even analysis. Additionally, it should provide information on sources of funding, such as loans, grants, or investors.

This section should include any additional information relevant to the cafe business plan. Such as market research data, permits, licenses, resumes of key personnel, and legal agreements.

Tips for Writing a Cafe Business Plan

Here are some suggestions on how to write a cafe business plan :

Keep it concise and well-organized

An effective cafe business plan should be concise, well-organized, and easy to read. Use clear and straightforward language to explain your ideas and ensure the information is presented logically.

Research thoroughly

Before writing your business plan, conduct thorough research to gather relevant information. This should include information about the industry, target market, competition, and other factors that could impact your cafe. This will ensure that your plan is based on accurate and reliable data.

Define your unique selling proposition

Define your unique selling proposition – what sets your cafe apart from the competition. This could include a unique menu, a special ambiance, exceptional customer service, or a commitment to sustainability.

Include financial projections

Include financial projections in your business plan. This will help you determine the feasibility of your cafe business and provide a roadmap for achieving financial success. Include a break-even analysis, cash flow projections, and profit and loss statements.

Be realistic

When writing your cafe business plan, be realistic about your goals and expectations. Avoid making unrealistic projections or assumptions about your business, as this could undermine the credibility of your project.

Focus on the customer

Make sure that your cafe business plan focuses on the customer. This means understanding their needs, preferences, and habits and tailoring your products, services, and marketing strategies to meet those needs.

Get feedback

Before finalizing your cafe business plan, seek feedback from trusted advisors, such as business mentors or industry experts. This can help you identify areas to improve and ensure that your goal is comprehensive and practical.

Business Plan Samples for Cafe

[Insert the name of cafe] is a locally owned cafe that will provide quality coffee, pastries, and light meals in a relaxed atmosphere. Our menu will focus on organic and locally sourced ingredients to offer our customers healthy and sustainable options. Our location in the heart of [insert location] is ideal, providing easy access for locals and tourists. We aim to become the go-to destination for coffee lovers and food enthusiasts.

[Insert the name of cafe] will be a full-service cafe operating seven days a week. We will offer a variety of coffee and tea drinks, pastries, sandwiches, and salads. Our focus on organic and locally sourced ingredients will set us apart from other cafes in the area. Our goal is to make available to our customers a unique and memorable experience through exceptional customer service and quality products.

[Insert the name of cafe] will operate in a highly competitive market, with several established coffee shops in the area. However, our focus on organic and locally sourced ingredients and our commitment to exceptional customer service will set us apart from our competitors. Our location in the heart of [insert location] will attract locals and tourists. It offers easy access to public transportation and other local attractions.

Marketing Strategy

We plan to leverage social media to reach our target audience and build brand awareness. And offer discounts and promotions to attract new customers and encourage repeat business. We will also partner with local ventures and organizations to host events and sponsor community initiatives.

Management Team

[Insert the name of cafe] will be owned and operated by [insert name(s)], who brings vast experience in the food and beverage industry. We will also hire a team of experienced baristas and chefs to provide our customers with quality service.

Financial Plan

[Insert the name of cafe] will require an initial investment of [insert amount], covering startup costs such as equipment, inventory, and marketing expenses. We expect to generate revenue through coffee and food sales, with an average ticket price of [insert amount]. Our projected revenue for the first year is [insert amount], with a net profit of [insert amount].

[Insert the name of cafe] will provide a unique and memorable experience for coffee lovers and food enthusiasts in [insert location]. Our commitment to organic and locally sourced ingredients, exceptional customer service, and community involvement will set us apart from other cafes in the area. We are confident that our business plan will enable us to succeed and become a staple in the local community.

Our cafe is a locally owned and operated establishment that will provide high-quality coffee, baked goods, and light fare to customers. Our mission is to provide a welcoming atmosphere, exceptional service, and delicious food and drinks to our customers. The cafe will be conveniently located in a high-traffic area, making it easily accessible to students, professionals, and residents.

The coffee industry is a growing and highly competitive market, with an estimated annual growth rate of 5%. Our cafe will differentiate itself by offering locally roasted, fair-trade coffee beans and organic, locally sourced ingredients for our baked goods and food items. We will also provide a range of vegan, gluten-free, and low-calorie options to cater to our customers’ dietary needs and preferences.

Marketing and Sales

We will utilize various marketing strategies to attract and retain customers. Including social media platforms such as Instagram and Facebook, to showcase our menu items, special promotions, and loyalty programs. We will also host events such as open mic nights and book clubs to attract a wider range of customers. In addition, we will partner with local businesses and organizations to offer catering services for meetings and events.

Our cafe will operate seven days a week and offer extended hours during peak times. We will employ a team of experienced baristas, bakers, and kitchen staff to ensure the quality and consistency of our products. Our inventory management system will ensure that we have adequate supplies and ingredients to meet customer demand while minimizing waste. We will also implement eco-friendly practices such as composting and recycling to minimize our environmental impact.

Our initial startup costs will include equipment, inventory, and marketing expenses. We anticipate generating revenue primarily from coffee sales, with additional revenue streams from food and baked goods sales, catering services, and merchandise sales. Our pricing strategy will be competitive, with regular promotions and discounts to incentivize repeat business. We project steady revenue growth over the first three years of operation, with a break-even point at the end of year two.

Final Words

A well-crafted business plan enables you to anticipate challenges, plan for growth, and identify opportunities to improve your operations . To write a perfect plan, research your market, conduct a competitive analysis, and specify your unique selling point. This guide on how to write a cafe business plan will come in handy! Continuously reviewing and updating your business plan ensures that you stay on track and adapt to changing circumstances. Remember, your business plan is not set in stone but a flexible guide to help you achieve your cafe’s goals. With a solid business plan, you can create a thriving coffee shop that attracts loyal customers and contributes to the community.

Abir Ghenaiet

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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Cafe Businesses Guide: 12 Key Components of Cafe Businesses

This cafe businesses guide is your one-stop shop for learning how to open a cafe and run it successfully. From general opening steps to business plan components to marketing tips, we’ve compiled everything you need to open and operate a cafe business. Read on for these 12 facets of opening a cafe business. 

How to Open a Café: 12 Key Café Opening Success Solutions

Learning how to open a café is the start of an adventure of business ownership, customer satisfaction and customer experience , and community connection. From hosting brunch in your café to managing inventory, there’s a lot of work to be done and fun to be had. These 12 first steps will get you headed in the right direction.

12. Dive Into Your Competition

Starting a successful café business is, in part, reliant on the current café scene in your location. Check out your competition, and see where there are gaps in the industry you can fill. You’ll find a way to start building into the community.

11. Write Your Business Plan

Every business should have a business plan. Not every business does, but when you write up a business plan, you’re that much more prepared to be successful. You can structure your business plan like a restaurant business plan . 

10. Find a Location

Finding your location will come into your competitor research, and is among the first things you’ll want to do. You could have a pop-up restaurant café option in different locations. Maybe you’ll find the perfect rental space. Whatever it is, start searching from the start. 

9. Learn All About Licensing

Your business license needs will vary depending on your location and what you’re serving in your café. If you’re serving alcohol, look into getting a liquor license . Be sure to check all requirements with your state and county.

8. Build Your Café Concept

Building your café concept can come from tips on how to develop a restaurant concept . Your café concept is similar to your business plan, but different in the goal. Concepting a café is all about finding out how you want to design your business from an aesthetic and customer-centric perspective.

7. Learn the Café Rules and Regulations

Beyond business licensing, there are plenty of rules and regulations you need to learn. From food saféty to general health and wellness, businesses–especially businesses serving food–have a lot of rules to follow. 

6. Build Your Menu Plan

Choosing your menu types and offerings is a vital part of your business plan and café plan in general. From the beginning you need a plan for what you’re serving and how you’re sourcing it. The importance of sustainability can come into play. 

5. Hire Your Stellar Staff

Hiring everyone from wait staff to a café manager to baristas is a critical move. It's ideal to do so once you’ve got your business situated for the grand opening. After you have a business plan set up and funding secured, posting jobs will help prepare you to bring in the best staff.

4. Gather Your Funding

Gathering funding can be a sticking point for businesses. If you have savings set up, you’ll be ahead of the curve. If not, getting a small business loan or finding other investors is something you should consider early on.

3. Organize Your Inventory Management

Getting your inventory management system set up is something to priortize as soon as you start buying inventory. The BinWise beverage inventory program can help you with liquids. BlueCart can come along for your general order management needs.

2. Find a POS System

Learning how to choose a POS system and finding the right one for you is crucial for making money and managing it well. Your POS system is one of the backbones of the technological support of your café. 

1. Build Up Your Marketing

There’s never a bad time to start your marketing practices. You can start marketing your café business as soon as you have it planned in a concrete manner. The more you get the word out, the more success you’ll have right out the gate. 

Opening a Café: Swinging Open Your Café Doors 

The process of how to open a café is the start of a great adventure in your own café business. This cafe businesses guide is the place to start learning about everything, including the cost to open a cafe. 

"Key Takeaway: Learning how to open a café is the start of an adventure of business-ownership, customer satisfaction and customer experience, and community connection."

How Much Does It Cost to Open a Cafe? 8 Cafe Cost Factors

When you’re learning how to open a cafe, it’s important to learn the answer to “How much does it cost to open a cafe ?” Your startup costs, overhead expenses , and everything else will be a foundational part of your cafe business plan and future success. There is the cost of labor . Restaurant food cost will come into play. There are food inventory costs, where food inventory software may come into the equation. 

The cost to open a cafe can start as low as $80,000, but it can go all the way up to $1 million as well. Your cost will depend on the size of the cafe you want to open and your goals for the business. It’s similar in that regard to the cost to open a wine bar or the cost to open a pop-up restaurant . 

So, how much does it cost to open a cafe? The answer is, it varies. You can expect to spend up into the tens of thousands, if not more. These eight costs of opening a cafe will play into your overall cost. Finding cost-effective options where you can for these costs will help you lower overall funding needs. 

8. Location Costs

Your location costs are going to be some form of rent unless you buy a location outright. Depending on the type of cafe you want to open, a sole location that you purchase could be a great fit. Renting, however, gives you a little more flexibility. The price will depend on your location. The guarantee is that this cost will be ongoing. 

7. Inventory Costs

Inventory costs are another ongoing cost of owning and operating a cafe. Your inventory consists of all beverage and food items and ingredients. It also covers disposable items and things you’ll need to keep replenishing. Your inventory costs will likely be one of the highest costs on your list when it comes to items you need on hand.

6. Payroll Costs

Payroll costs are an ongoing expense once you hire your staff. When you’re just starting out, it may just be you for a bit, but that’s a good time to plan for payroll expenses. Budget to pay your employees a living wage, and plan for a future with more employees, since that is what business growth will require. 

5. Licensing Costs

Your licensing costs will depend on your location and what you want to put on your menu. A general business license is a fixed expense to plan for. Getting a liquor license will also likely be on your list. BinWise isn’t a legal advisor. Our recommendation is that you look into your local licensing needs to make sure you have everything you might need.

4. Marketing Expenses

Marketing expenses won’t be a huge part of your overall budget, but they are a very important part. Small business marketing is best kept to a small amount of your budget. Finding ways to make that amount work for your email marketing , content marketing , and business branding is key. 

3. Insurance Costs

Your insurance costs are another location-dependent cost. Some coverage areas to consider are the business location, your employees and their health and other insurance, and liability insurance. Consulting an attorney for small businesses will be helpful in making sure you have all your insurance needs covered.

2. Equipment Costs

Your equipment costs are primarily a startup cost. If you invest in the best equipment from the beginning, you can avoid some replacement costs down the road. Budgeting several thousand dollars for your equipment costs from the start will help you get what you need for a smooth business opening and success down the line.

1. Business Taxes

Business taxes are an ongoing expense that could derail your business if you aren’t prepared for them. Like many costs on this list, business taxes are location-specific. For your location, look up taxes beforehand, and work with an accountant to make sure you have your ducks in a row. 

The Cost to Open a Cafe: Cash and Credit for Your Cafe

When you’re starting your journey of being a cafe owner, there are plenty of questions you’ll find yourself asking. How much does it cost to open a cafe? How many employees do I need? How do I organize my menu with alcoholic beverages, coffees, and all manner of foods? All of these and more will come into your cafe business plans. 

Writing a Café Business Plan: 9 Café Business Plan Steps

Writing a café business plan is one of the best concrete steps you can take toward opening and operating a successful café. These nine parts of the business plan will help you map out your cafe and prepare for upcoming expenses and points of concern.

9. The Executive Summary

Your executive summary is the place to briefly share an overview of all the sections in your business plan. It’s the place for stating what your business is, why you’re opening it, and how you’ll execute each step of the process. 

8. Success Plan

The success plan portion of your café business plan is the spot to identify the area of your industry you’re filling and what you’ll do for your customers. This is the place to share why your business will be a successful café. 

7. Competitor Analysis

Your competitor analysis is something that helps you to define the parameters your café will fulfill. This section is where you’ll check out the other cafés in your area, see what they’re doing and how it’s working, and what you can do better.

6. Market Analysis

Market analysis goes hand in hand with competitor analysis. Market analysis is explicitly an analysis of the customer market you’re striving to obtain. What is your market interested in? What are their current café options? What can you do to draw them in? Answer those questions in your market analysis.

5. Services Demonstration

Your services demonstration is the place where you’ll lay out what you’re offering in terms of services. You’ll want to touch on menu offerings, with a menu layout for food and safety checks. You’ll also want to write out your plan for hours and frameworks for operations.

4. Marketing Strategies

Your marketing strategies section is the place to overview your marketing goals and lay out a few marketing campaign plans. You should give a rundown on the marketing plan in terms of how you want to grow the business. Your campaign mock-ups can be more in-depth, to give you plans to start with.

3. Ownership and Management Structure

The ownership and management structure part of your café business plan is where you’ll define the ownership structure. This section is built for the purpose of having a set structure for legal and organizational needs. It’s especially important if you’re sharing your business plan with potential investors.

2. Operations Plans

Your operations plan section is the spot to give a walkthrough of what daily operations will look like. This will include things along the lines of opening and closing procedures, scheduling, and inventory management plans. It’s your place to make sure you have a plan to keep everything running well. 

1. Financial Plans

Your financial plans section is the place to write out your budget, and plan for any investment or loan needs. The budget section is for you, but it’s also to share with anyone who you will be asking for loans or investments from. Overall, this section’s purpose is to help you figure out what you need financially, and how you can get it.

Café Business Plans: Plan to Plan Ahead 

Writing a café business plan gives you more control over the startup and operations of your café business. Having a written plan is a way of solidifying your plan through a step-by-step analysis of each part of the business. 

It’s also a great resource for you to stay grounded in your ideas, and grow them with measured steps when the time comes. You can use it to decide which type of cafe you want to open.

"Key Takeaway: Writing a café business plan gives you an outline of your business you can refer to and expand on at any time.

Types of Cafés: 12 Classic and Innovative Types of Cafés

Learning about all the types of cafés is a delightful part of the journey of learning how to open a café. These 12 types of cafes run the gamut of what you can do with your cafe business.

12. Drive-Thru Cafés

Drive-thru cafés can take many forms. Some are coffee shops. Others are more along the lines of a Sonic-esque place, with a drive-thru and places to park. Many are somewhere in between. A drive-thru café is a great option if you’re working with a limited budget and you want to create a business that is easy to maintain.

11. Café Food Truck

A café food truck fits in among all types of food trucks. If you’re located in one of the best places to start a food truck business, a café food truck is a great plan. It can even turn into a café with a permanent brick-and-mortar location.

10. Coffee Shops

Coffee shops are the type of establishment many people think of when they hear the word café. A coffee shop café is a solid business plan for any location since you’re likely to find coffee lovers no matter where you’re at. 

9. Pop-Up Café

A pop-up café is a smaller scale version of a pop-up restaurant . With pop-up restaurant marketing tactics and delicious food, a pop-up café is another great way to open a cost-effective café business and draw in the crowds.

8. Café Bakery

When people think of cafés, after thinking of coffee they generally drift to considering baked goods. A café bakery, therefore, is the perfect place in the world of cafés to build a business that customers will love. Who can say no to delicious pastries and drinks all in one place?

7. Themed Cafés

Themed cafés are a subset of café businesses that can be many things to many people. A themed café is, at a base level, any sort of café. The unique type of café comes into play with the theme decided on by the owner. From a cultural theme to a location-based option, themed cafés can be anything you can dream up. 

6. Specialty Cafés

Specialty cafés are a café of any size or shape that has a specialized offering for customers. Some popular options are to offer a specific type of cuisine or a branded space that speaks volumes. 

5. Cat Cafés

Cat cafés do, technically, fall under the umbrella of themed cafés. Cat cafés have, however, become such a common and famed theme that they get their own spot on this list. You can serve up any dish at a cat café, the truly important factor is the cats!

4. Brunch Cafés

Brunch cafés make up some of the best cafés and the best brunch places around the world. That’s not an exaggeration, brunch truly has taken over the world in recent years. A brunch café business will bring in customers, as long as you get the eggs Benedict right. 

3. Pub Café

A pub café is, to put it plainly, a café type of restaurant with a pub design. This type of café blends in with hole-in-the-wall spots and greasy spoons. It’s a mix of cute and rugged that you can’t go wrong with.

2. Breakfast Café

Breakfast cafés are a subset of specialty cafés, with their specialty being everything to do with breakfast. You can do an expansive breakfast café with all manner of brunch and lunch items. 

1. Classic Café

A classic café takes the number one spot on this list as a classic for a reason. A classic café is a small restaurant, with a number of meal options throughout the day. It’s down the middle, and a perfect option for anyone looking to open a café and see where it goes.

Types of Cafés: What’s Your Type? 

These 12 types of cafés are a great source of inspiration for your own café business. Once you’ve decided on the type of cafe you want to run, it’s time to get into the business specifics, including cafe inventory management.

Cafe Inventory Management: 15 Facets of Cafe Inventory 

Cafe inventory management is a key component of the work that goes into opening a cafe and running it smoothly. Cafe inventory management, including these 15 facets of the inventory process, gives you more control over your cafe business.

Cafe Inventory Lists

These five cafe inventory lists are the main categories of inventory you’ll have in your cafe. Overall, everything in your cafe that needs to be kept in stock, in some form or another, is under the umbrella of these categories of cafe inventory management.

5. Food Inventory

Food inventory makes up a large and very important portion of your cafe inventory management. Food inventory management will help you focus on getting the best foods, and always having them ready for your customers.

4. Dishes and Cutlery Inventory

Dishes and cutlery inventory isn’t something you think about immediately when you think of food and related inventory, but it’s especially important to stay on top of. Replacing dishes and cutlery as needed is the main function of dishes and cutlery inventory. 

3. Cleaning Supplies Inventory

Cleaning supplies are a part of every working part of your cafe business. From cleaning the tables after customers have dined to keeping the kitchen clean, you need plenty of supplies. 

2. Business Maintenance Inventory

Business maintenance inventory is a broad category, as it covers everything you need, from a business standpoint, to keep the cafe running smoothly. This could be anything from office supplies, technological support, or accounting supplies.

1. Beverage Inventory

Beverage inventory goes hand-in-hand with food inventory for a cafe business. Your beverage inventory starts with the general list of the beverages you serve. It gets broken down from there into ingredients, bottle volume levels, and bar glassware . 

Inventory Software Support

Inventory software support eases every step of the inventory process. Counting by hand and keeping endless spreadsheets is an exhausting way to do inventory. These five software support systems make inventory streamlined, to give you one less thing to think about while you run your business.

5. Warehouse Inventory Software

Warehouse inventory software is a subset of general inventory software. Getting software that encompasses your inventory warehouse gives you greater control over your inventory every step of the way.

4. Accounting Software

Accounting software will help you when it comes time to have your books in order. QuickBooks is a piece of accounting software that is loved and trusted by many business owners industry-wide.

3. Food Inventory Software

Food inventory software will help you keep your menu fresh and ready for customers. Food inventory software helps you keep track of what you’re low on, so you never have to worry about your reorder point . 

2. Beverage Inventory Software

Beverage inventory software goes hand in hand with food inventory software. It’s there to help you keep track of drink ingredients and general beverage stock, so you can confidently serve up all the best drinks.

1. POS Software

POS software, or point of sale software, is a critical part of the software support of every business. Choosing the right POS system for your cafe business will keep your finances moving smoothly.

Cafe Inventory Management Ideas

Beyond cafe inventory management techniques and software support, there are ideas you can implement to make your inventory process more efficient. These five cafe inventory management ideas will help you stay on top of your inventory, and make it a helpful, headache-free part of your cafe business.

5. Make Use of a Perpetual Inventory System

A perpetual inventory system is one idea you should implement right away. It’s a system where you do regular counts, so you can avoid an intense inventory count and keep everything in line.

4. Stay Organized Every Step of the Way

A good inventory system starts with organization. From the moment you start your cafe, keep your inventory organized so you can stay on top of it.

3. Focus on User-Friendly Features in Software

When it comes to choosing the software that will help you with your inventory process, focus on user-friendly programs. When you’re in the throes of inventory, the last thing you want is inventory software that is complicated to use.

2. Share Inventory Duties with Management Employees

Sharing your inventory duties with managers and supervisors at your cafe will help to ease the process and build up your team. A cloud-based software will help with this endeavor.

1. Build Inventory Time Into the Schedule

Inventory can easily become something you dread every time it comes around. Avoid that situation by building inventory time into your schedule, so it’s never something that you have to struggle through.

Managing Cafe Inventory: Put Your Management Where Your Mouth Is 

Mastering cafe inventory management will give you control over the ins and outs of your cafe business. Once you’re set with inventory plans, it’s time to dive into using that inventory, including within your menu items. 

"Key Takeaway: Mastering cafe inventory management will give you control over the ins and outs of your cafe business."

Menus for Cafes: 12 Menu Categories for Cafe Businesses

Learning about menus for cafes is a delightful part of learning how to open a cafe, for all types of cafes. Planning your menus is vital for cafe success, and fun for learning about what you can provide for customers. These 12 menu categories are a great place to start.

12. Pastries

The pastry section of your menu is a classic cafe offering. Your pastries could be breakfast items, dessert items, or perfect for any time of day. You just can’t go wrong with pastries for a cafe business. If you can have a part of your kitchen be viewable for customers, so they can see the making of the pastries, it’ll be an extra special experience. 

11. Brunch Menus

A good brunch menu is ideal for any cafe specializing in brunch offerings. The rise of brunch as a popular meal over recent years has made this an even more important part of menus for cafes. From mimosas to eggs Benedict, perfecting your brunch menu is key.

10. To-Go Specialty Items

To–go specialty items fill a specific niche in the world of cafes. The COVID-19 pandemic ramped up the love of to-go orders from peoples’ favorite restaurants. You can play into that by having a specific to-go menu section with items that are equally delicious when they’ve traveled home.

9. Desserts

A dessert menu is a classic for any type of restaurant, bar, brunch cafe, or any type of cafe. Having a mix of sweet and savory dessert options will make your dessert menu a must-taste for anyone enjoying time at your cafe. 

8. Soups and Salads

Soups and salads are another classic no matter the place or theme of your cafe business. A mix of soups and salads that mix well together and with other items across your menu is the best plan. You should have at least four options for each.

7. Appetizers

Having a strong list of appetizers on menus for cafes brings people in the door for a quick bite or for the prelude of a longer meal. Your appetizers should include a mix of classic appetizers and specialty items specific to your type of cafe.

6. Domestic and Imported Beer

Domestic and imported beers come into play with the alcoholic beverages section of your cafe menu. For your beer selections, a mix of domestic and imported options will keep all your beer-loving customers happy. A good mix will also be helpful if there is ever any issue with the supply chain.

5. Specialty Cocktails

Specialty cocktails also join the party of your mixed drinks and 21 and over beverages. Having a mix of cocktail ingredients and classic cocktails available gives your cafe a punchy edge. Some cafe-specific cocktails, named after personal touches in your cafe, are a great way to make this part of your menu unique.

4. Coffee and Tea

Your coffee and tea lists for menus for cafes need to be immaculate. There are going to be customers who come in specifically to enjoy breakfast and brunch. Having excellent sources for your coffee and tea, and serving them up in aesthetically pleasing ways will exceed the expectations of your morning and early afternoon customers.

3. Wine Lists

Having great wine lists is a must for any bar or restaurant type of business. Your wine lists should complement your menu items. You can also lean into seasonal wine options, with summer white wine treats and red wine surprises in the colder months.

2. Entrees 

The best entrees can make or break a restaurant or cafe business. Put care into your entrees, and make them pairable with other options on your menu. Your customers will come in for the drinks and appetizers and keep coming back for the entrees. 

1. Signature Dishes

Signature dishes mean something different to every cafe. Whatever you’re most passionate about, make it a signature dish. If you have something with a unique ingredient, it belongs on this part of your menu. 

Cafe Menus: What Cafe Treats Will You Serve Up? 

When it comes to designing and creating menus for cafes, there’s plenty of work to do. It also ties into your cafe marketing strategy.

"Key Takeaway: Learning about menus for cafes is a delightful part of learning how to open a cafe, for all types of cafes."

Marketing Strategy for Cafe Businesses: 9 Marketing Tips

Learning about marketing strategy for cafe businesses will give you a business edge and expand on your work for all other aspects of opening your cafe. These nine marketing tips will help you define the space your cafe will fill in your community.

Cafe Marketing Strategy

These three upcoming cafe marketing strategies detail the areas of your cafe business that will be emphasized in your marketing plan. These categories mix and match together to create your marketing campaigns. You can pick and choose which ones you act on at a particular time. Overall, however, all three are vital for a successful cafe marketing strategy.

3. Marketing Your Meals

Marketing your meals, including foods and beverages, is one critical third of the trifecta of marketing strategy for cafe businesses. Your dishes and drinks are the key reason customers are going to come back time and again. Make use of them in your marketing to draw people in.

2. Location Marketing

Location marketing will help you build a rapport with your community and find your niche. Cafes are typically a type of restaurant that gets drawn into the local fold and relies on local credibility to find success. Marketing for your location, appealing to neighborhoods, and leaning into the culture, will help boost your business. 

1. Brand Marketing

Brand marketing connects to location marketing and marketing for your meals. Brand marketing is all about showcasing what makes your cafe unique. Maybe it’s some specialty signature dishes. Perhaps it’s the history of you as a cafe owner and the reason you got into the business. Whatever it is, tie it into your marketing efforts. 

Local Cafe Marketing

Local cafe marketing is a unique subset of the overall marketing you’ll be doing for your cafe business. Local cafe marketing techniques, including these three, will help you build your business locally to get established. They focus on building your community with customers and other small businesses alike. Those two areas of growth will help your business become a local.

3. Customer Rewards Program

A customer rewards program is an efficient way to build up your customer base and create a local following. Your rewards program could give people a free meal voucher, or alert them ahead of time about special events. 

2. Host Special Events

Speaking of special events, hosting special events is a great way to invite the community into your restaurant for a unique occasion. You can throw themed events or happy hours. Whatever it is, get the word out and get people excited.

1. Work with Other Business Owners

Working with other small business owners in the area will help you network within the business community. This will give your business a place in the local scene beyond the community of customers you build. 

Cafe Marketing for Business Growth

All marketing should lead to success in business, but some marketing plans do lead to growth more efficiently than others. These three solutions of marketing strategy for cafe businesses and growth are designed to move businesses onward and upward. They focus on things that can propel your business with the use of what’s already working and what can be improved.

3. Promote Your Best Dishes

Promoting your best dishes is one of the best ways to grow your business through your culinary expertise. Your best dishes are going to be some of your greatest drivers of profits. The more people know about them, the more your business will benefit.

2. Ask for and Act on Customer Reviews

Your customers will be one of the greatest indicators of how your cafe is doing. To make use of the well of customer experience, ask your customers for reviews. This can be done in an email form, or with a review card they can briefly fill out at the cafe. 

1. Keep Up with Competitor Analysis

Keeping up with competitor analysis will keep you apprised of any changes your competitors make to their business plans. If you see a shift, check it out, and look into revamping your cafe business to keep up with the times.

Cafe Marketing Strategies: Find Your Market 

Learning about marketing strategy for cafe businesses will get you ready to open your cafe doors and master your customer service and business growth plans. It goes hand-in-hand with learning about cafe rules and regulations.

Cafe Regulations: 12 Regulations You Need to Learn About

Learning about cafe regulations is a critical part of learning how to open a cafe. These 12 types of cafe regulations cover your cafe plans when it comes to every facet of your business. 

12. Resale Permits

Resale permits are a larger part of the permitting you need to sell food and drinks. They give you the legal right to resell items you’ve bought from wholesale suppliers. 

11. Live Entertainment Licensing

Living entertainment licensing will come into play if you decide to have live music or other entertainment events at your cafe. You need the licensing in place to be able to host those events. 

10. Alcohol Sales

Alcohol sales are a major part of getting your licensing squared away. Getting a liquor license can take time and money, so if you’re selling alcoholic beverages, get started on the process right away.

9. Business Licensing

General business licensing comes into play for every business. A business license, as a basic license, gives you permission to operate as a business. It should be one of the first licenses you get. 

8. Food Permits

Food permits are another must-have for a cafe business. A food permit gives you permission to sell food on the premises. It also ensures you’re following health standards for food preparation.

7. Seller’s Permits

Seller’s permits go hand-in-hand with resale permits, but with a broader scope. A seller’s permit gives you the general authority to be selling from your legal business premises.

6. Business Insurance

Business insurance is something to get after you’ve gotten set up as a licensed business. This insurance will help protect you and your employees. It will also cover your cafe against any litigation that could be brought against you.

5. Food Handler Permits for Employees

Food handler permits for your employees are an absolute must. You’ll need general food licensing for the cafe. On top of that, everyone who handles food in your cafe will need a food handler’s permit. 

4. Health and Safety Regulations

Health and safety regulations for cafe businesses cover your food preparation, but they also extend to cleanliness standards around the cafe. From the kitchen areas to the tables and guest-facing spaces, health and safety are kept in check.

3. Location-Based Environmental Regulations

Location-based environmental regulations may or may not exist for you and your cafe. In many countries, states, and smaller localities, there are regulations around materials you can use and standards to maintain.

2. Trademark Applications

Trademark applications are a unique licensing need. When it comes to designing the brand of your cafe, the more unique and creative, the better. When you have a logo and other brand resources set up, a trademark will make your cafe truly one of a kind.

1. Certificate of Occupancy

A certificate of occupancy goes together with the other general licensing you need to own and operate a cafe business. This certificate is a statement that your business is legally squared away to operate from the location you have set up.

Cafe Rules and Regulations: Are You Up To Code?

Sorting out the rules and regulations of your cafe business gets you another, quite tangible step closer to opening the doors for business. As you’re preparing for those opening days, diving into cafe management will give you even more solutions to the daily work of a cafe business.

"Key Takeaway: Cafe regulations extend to everything from general business licensing to alcohol licensing to food permits to health and safety requirements. Every part of your cafe business needs to be checked off the list of regulatory requirements."

Cafe Management: 10 Responsibilities of Cafe Managers

Cafe management, like restaurant management or bar management , is a multi-faceted line of work. It involves working with cafe regulations, understanding the cost to open a cafe, working with the cafe business plan, and spending time on cafe inventory management. 

10. Support Staff In Customer Service

Supporting cafe staff in all aspects of customer service is one of the key daily responsibilities of cafe managers. You’re there to help when extra hands are needed, and step in for conflict resolution should the situation occur. 

9. Maintain Revenue Records

Maintaining revenue records is easiest when done on a daily basis. It’s a clear-cut job for a cafe manager because managers have the most regular exposure to the revenue numbers. 

8. Update the Menu

Updating the menu can include everything from reprinting menus as needed to adding new food items to updating the wine lists . It’s not a daily job, but it does come up from time to time.

7. Manage Daily Inventory Needs

Managing daily inventory needs helps to keep your inventory running smoothly each day of the week. Staying on top of inventory and keeping all the necessary inventory in stock is a key manager duty. It makes your job easier and does the same for all employees. It also streamlines the cafe experience for your customers. 

6. Vendor Coordination

Vendor coordination for cafe management comes into play with order management and inventory management. As orders come in, you’ll have the task of checking them in. If any issues arise, a focus on vendor coordination will make your job easier. You can work on vendor coordination by being timely with ordering products and being respectful of the time when your orders are delivered.

5. Regular Order Management

Regular order management plays into vendor coordination and inventory management. At any given time, a cafe should have enough inventory to last a week. Keeping up with regular order management will help you achieve that goal and avoid worrying about your reorder point. 

4. Customer Complaint Resolution

Customer complaint resolution isn’t always a huge part of the job of a cafe manager, but when it comes up, it’s extremely important. This responsibility ties into taking care of your employees and backing them up in customer service. When there is a customer complaint or a customer causing trouble, it’s your responsibility to support your employee and resolve the conflict. 

3. Health and Safety Standards Management

Health and safety standards management is a task for the cafe team at large, but the bulk of organizing these standards rests with the cafe manager. There are rules and regulations you need to follow in a cafe business. As the manager, it’s your job to make sure those rules are being kept up with and to correct any issues before they become a problem.

2. Hiring Employees

Hiring employees is the start of your managerial responsibilities with the cafe staff. You and the cafe owner will work together on finding the right staff, but ultimately, the hiring tasks will be on your to-do list. 

1. Managing Scheduling

Managing scheduling is one of the most specific and important ways you can support your staff. This involves creating the schedule and working with employees as they request time off and specific days off. It’s weekly work that will give you a consistent opportunity to look after your staff.

Cafe Management: The Makings of a Well-Managed Cafe 

Cafe management comes with a lot of responsibility and hard work. It’s fulfilling work, fueled by customer experience and pride in your team and the work you accomplish. It’s one of many parts of working at a cafe.

Working at a Cafe: 13 Key Job Roles of a Cafe Business

Working at a cafe brings you into a delightful, bustling business. Whether you’re the Sous chef , a restaurant cashier or host, or a restaurant busser , there’s so much opportunity in all types of cafes. You could work in cafe and restaurant management, or as a cafe accountant to deal with operating expenses . The options are (nearly) endless with these 13 key cafe jobs.

13. Cafe Owner

The cafe owner is the start of the list, from a hierarchical standpoint, of the people who work at a cafe. In some cases, the owner will also be the manager, a supervisor, and even fill in the accountant role.

12. Cafe Manager

The cafe manager is responsible for the daily cafe management operations. This includes everything from employee management and support to inventory ordering and stock maintenance. 

11. Cafe Accountant

The cafe accountant is a very specific role within the jobs that fall within a cafe business. The accountant is responsible for keeping track of revenue and expenses, to keep the business on budget and in profit. 

10. Servers

Servers are one of the most important links in the chain of working at a cafe. Servers are responsible for taking orders, delivering food, and ensuring customer satisfaction. 

The chef is part of the team that makes up the kitchen staff in a cafe business. The chef can be a Sous chef or other type of chef. The key ingredient is that they manage the kitchen and oversee the dishes.

8. Kitchen Prep Workers

The kitchen prep workers in a cafe business report to the chef, and are another key component in keeping the cafe running smoothly. Having the best kitchen prep workers means your cafe provides great meals on a timely basis.

If your cafe has coffee options, a barista may be in order. The barista's job revolves solely around making coffee orders and keeping the coffee equipment in good working order.

6. Mixologist or Bartender

The mixologist or bartender is a necessary part of your cafe business when it comes to serving up the best drinks. Your bartender or mixologist will be in charge of drink mixing and serving at the bar top.

5. Dishwashers

One part of the work of the kitchen comes from the prep workers. The other part comes in the post-meal work with the dishwashers. Hiring a few dishwashers to keep your kitchen stocked with clean dishes will ease your kitchen process.

Bussers are the flip side of the server coin. Bussers are responsible for clearing away dishes and cleaning and sanitizing the tables in between guests. 

3. Barbacks

Barbacks work with the mixologist or bartender to keep the bar space efficient. They clean, serve drinks, and provide support to the bartender or mixologist as needed.

2. Sommeliers and Cicerones

Sommeliers and cicerones–certified beer specialists–work in a similar range to mixologists and bartenders. The difference is the level of specification in the job of a sommelier or cicerone. Their specialties are their focus in all their customer service roles.

The host of a cafe business is a tidy role, but it’s oh-so-important to the overall success of the business. The host welcomes in customers as they arrive, and they set the tone for the entire cafe. 

Hiring for Cafe Work

When it comes to hiring for cafe work, there are plenty of skills you should interview for. In your restaurant interview questions , ask about customer service experience, kitchen and food handling skills, and teamwork experience. When you take care in the interview process, you’ll fill your employee roster with all the best people.

Cafe Work: Cafes Can Be the Work For You 

Working at a cafe is busy, fulfilling, exciting work. It’s an active space with a lot going on every day. For cafe owners and workers alike, the day-to-day operations can be hectic, but oh-so worth it. As a cafe owner, you can mix up that daily work and experience by exploring unique cafe ideas.

"Key Takeaway: Working as part of a team at a cafe business built around a passion for customer service and great food is, by nature, a joyful experience. With the right team, cafe work can be one of the best jobs out there."

Unique Cafe Ideas: 9 Fun Ideas to Make Your Cafe Pop

Learning how to open a cafe gives you the opportunity to dive into unique cafe ideas. From the customers to people working at a cafe, leaning into a unique idea for the cafe gives time spent there a more delightful experience. For all types of cafes, these nine unique cafe ideas can add to the business model and food service of the cafe. 

Cafe Theme Ideas

Giving your cafe business a theme can help you effortlessly make use of unique cafe ideas. There is so much variety in the theme options you can choose from, so you can truly make this idea your own. These three cafe theme ideas are all excellent, you can’t go wrong with any of them, whether you’re hosting brunch or setting up for dinners. 

3. Indoor Garden Theme

An indoor garden theme is a great way to brighten up your cafe and bring life into the space. You can have a mix of hanging plants, shelved plants along the walls, and potted plants. If you have an outdoor space you can even have a classic garden area. 

2. Book Cafes

Book cafes are a theme that has been rising in popularity, and there is still so much room for this wonderful theme to grow. One of the best options for starting a book cafe is to create a space where customers can sit and dine, and also browse bookshelves. 

1. Parisian Theme

A Parisian theme is excellent for so many cafes. The classical, relaxed setting of a cafe immediately invites themes from Paris and French living in general. You can lean into the Parisian theme by looking at famous Paris cafes and emulating their style and menu options.

Cafe Food Presentation Ideas

Among the unique cafe ideas that relate to the direct customer experience are unique cafe food presentation ideas. Having delicious food should be your main goal from day one. To emphasize that goal, cafe food presentation gives you a way to spruce up each dish. These three ideas will give you a feel for how you can change up food presentation. 

3. Cafe-Themed Dishware

Cafe-themed dishware is a subtle way of branding your cafe and sprucing up every dish. Something as simple as a logo stamped in a brand color on each plate, bowl, and cup will give you a uniformed food presentation. 

2. Semi-Table Prepared Dishes

When you think about semi-table prepared dishes, the image that comes to mind is likely something along the lines of a hibachi grill type of place. While your cafe might make use of those tools, this tip can apply to anything that involves the meal presentation taking part at the table. 

1. Edible Garnishes

Edible garnishes are one of the most beautiful and tasteful ways to incorporate food presentation into the ideas of your cafe business. From edible flowers to drinks with a skewer of treats involved, edible garnishes are a win with every customer.

Cafe Holiday Ideas

Cafe holiday ideas are a unique subset of cafe themes in some cases, and a completely unique type of unique cafe idea in others. The mix of ideas among these three cafe holiday ideas showcase the range of ways you can celebrate different holidays in your cafe, to wow your customers any day of the year.

3. Unconventional National Holiday Celebrations

There are so many national holidays we celebrate these days. They include things like National Cocktail Day , National Pinot Grigio Day , International Bagpipe Day , and National Wine Day . You can celebrate all these holidays and more for a unique theme throughout the year.

2. Holiday Promotions

Holiday promotions aren’t just about the unique national holidays. You can lean into promotions for the typical holidays throughout the year. Holidays spent out and about, like Valentine’s Day or Halloween, are particularly well suited to these promotions.

1. Special Birthday Treats

Special birthday treats are something you would benefit from having on hand for any birthdays that come into your cafe. From unique menu items to a special delivery method, giving customers a special way to celebrate birthdays will add something extra to your cafe.

Finding Unique Plans for Cafes: Showcase What Makes Your Cafe One-of-a-Kind

These nine unique cafe ideas will give you the place to start to find the niche for your cafe. You can use these ideas as they are, or use them as a jumping-off point. Either way, finding the unique parts of your cafe plan will make your business successful, and bring joy to your work. They can also help you grow into a cafe franchise business.

Cafe Franchise Business Plan: Growing Your Cafe Business

The process to open a cafe, write a cafe business plan, and prepare for all the daily operations to keep a cafe running smoothly is a long, ultimately satisfying project. Once you’ve opened your cafe and gotten it running with marketing strategies for cafes and unique cafe ideas, however, what’s next? What are your potential growth opportunities ?

If you’re looking for the next step, a cafe franchise business plan is a great option. These eight steps will help you get there.

8. Analyze Your Franchise Potential

The first step of getting your cafe ready for franchising is checking out your franchise potential. Do your finances make this a feasible choice? Are you ready and organized with the paperwork? Has your cafe brought in the right numbers to expand to new locations? These are the questions you need to answer. 

7. Create a Franchise Budget

Creating a franchise budget at the beginning of creating your cafe franchise business plan will give you a head start. Check out the costs for all your franchise license needs and marketing requirements to make sure you’re ready.

6. Prepare Your Franchise Disclosure Document (FDD)

Your franchise disclosure document or FDD is the selling sheet you present to potential franchise owners. It’s the place for an extensive explanation of how the franchisor and franchisee relationship will work, and what franchisees can expect. 

5. Prepare Your Franchise Operations Manual

Preparing your franchise operations manual goes hand-in-hand with preparing your franchise disclosure document. The operations manual is your place to explain how every part of the cafe works, so that franchisees have a full game plan. 

4. Review Your Trademarks and Intellectual Property

Part of franchising your cafe means giving other folks permission to use your brand and all related intellectual property. To prepare for that, make sure you have your logos and any specific intellectual property trademarked, to avoid issues down the road.

3. Establish a Franchise Company In the Eyes of the Law

While you’re already set up with a general business license, you need another one for a franchise business. BinWise isn’t a legal advisor and we can’t tell you exactly what you’ll need for your location. You will, however, need a new level of business licensing to be set as a franchise. Check out your local government to find what you need. 

2. Issue and Register Your FDD 

Once you have all your papers in order and you’re legally set up to be a franchise cafe, it’s time to issue and register your FDD. A lawyer will come in handy for getting your documents where they need to go. From there, follow your local guidelines to get your FDD where it needs to go.

1. Develop Your Franchise Sales Strategy 

Developing your franchise sales strategy is something you’ll likely think about while you work through every process on this list. How will you get the word out to potential franchisees? From networking in the right spaces to meeting people organically, selling your franchise pitch is the peak of the work you’ll do to prepare your cafe for franchising.

Franchising Your Cafe Business: Grow Your Cafe to Franchises and Beyond

A cafe franchise business plan can help you grow your cafe beyond the confines of your first location, or even your first few locations. Starting a cafe often starts with a small space and big dreams that blend together into a beautiful space. When it’s time to grow, you can take those dreams and plans and make them into something more with a franchise.  

"Key Takeaway: Learning how to franchise a cafe business will build on your cafe business knowledge and give you more to work with.

The Guide to Cafe Businesses: Realize Your Cafe Business Dreams

This BinWise guide to cafe businesses is here for you whenever you need a refresher on running a cafe business. From the first few days of planning and opening to the ongoing operations of your business, come on back any time to keep your cafe plans moving forward.

CAFE BUSINESS PLAN: How to Write With Templates & All You Need

• by Folakemi Adegbaju
• August 10, 2023

Table of Contents Hide

Why do you need a cafe business plan, tips for writing a cafe business plan, #1. executive summary, #2. business description, #3. industry research, #4. the marketplace, #5. swot analysis, #6. marketing plan, #7. financial plan, #8. operational plan, cafe business plan template, is a cafe a profitable business, how do i start a cafe idea, is it hard to open a coffee shop, how do you attract customers to your coffee shop, do cafes make money, how much does a cafe owner make a month, final thoughts, why do most cafes fail, what does a coffee shop owner do, what are the duties of a café manager.

The first step to a successful cafe is developing a business plan. Make sure your cafe business plan is prepared if you intend to pitch investors for financing because they will undoubtedly request to view it. This article discusses how you can write an impactful cafe business plan for your cafe, and it comes with a cafe business plan template checklist to help you arrange things accordingly.

Get the cafe business plan template

 Let’s start the journey.

What Is a Cafe Business Plan?

A cafe business plan is a simple way to show how serious and committed your business is. It outlines your devotion as a business owner and can be compared in order to gauge how successful your cafe is. It includes an executive summary, an overview, and a description of a coffee shop business, market data, marketing strategies, business operations, and financial plans, among other essential components of a solid cafe business plan.

A cafe business plan is not only necessary to keep your business on track for success, but it also demonstrates your commitment as a business owner. You can sketch out and examine all conceivable outcomes in your cafe business plan, from the advantages to the challenges posed by competitors. Without one, determining whether your company is flourishing might be difficult.

A cafe business plan gives your cafe shop a clear direction while also emphasising any obstacles and competitive businesses you may face. With this knowledge at your disposal, you may determine ahead of time what solutions you will require for any issues you might run into, thus increasing your chances of being a successful business owner.

You can now begin creating your business plan for a coffee shop. Here are some helpful suggestions to help you write more effectively:

• Gather helpful materials to aid you in your writing. This can include how-to manuals, market studies, emerging trends, and real or hypothetical sample company plans. All of these can serve as your source of inspiration and be incorporated into the relevant areas of your cafe business plan.
• Write as much as you can without censoring yourself. Once everything is laid out, you may decide which elements apply to which sections of your cafe business plan.
• Avoid being too focused on a single piece. If you run into writing difficulties, make a note and move on to the next paragraph. When you have more knowledge or are more certain, you can go back and review it.
• Every worthwhile thing requires time. Your cafe business plan will too. If it takes longer than you anticipated, don’t be concerned. You’ll be able to hone your message and articulate your ideas in a cogent and concise manner as time goes on and you continue to work on your plan.

How to Write a Cafe Business Plan

There are numerous approaches to writing a cafe business plan, and we provide important advice from subject-matter experts to get you started. This will help you write the perfect cafe business plan.

Although the executive summary should be the first section of your business plan, it should actually be the last section completed because it provides a summary of the entire cafe business plan. It should be no more than one page in length and is the most crucial section of your business plan. To help your audience save time, the goal is to outline the key ideas of the plan. If they wish to learn more, they can then go back and examine the portions that most interest them. Keep this section brief while still being inspirational.

Your cafe’s concept will be realized in this part. It’s important to give a thorough description of your business, including specifics like how the concept will look, where it will be located, and the type of atmosphere or brand you plan to establish. Your company’s description paints an accurate image of your mission and objectives.

This entails gathering in-depth information about nearby cafes, their average foot traffic, break-even points, and other important insights that can help you run your own cafe successfully. Determine possible locations by analyzing and making a list depending on your target market. The majority of cafes perform better in locations with heavy foot traffic, like malls or shopping centres. The site ought to be convenient for customers and reasonably close to your suppliers and vendors.

Determine possible locations by analyzing and making a list depending on your target market. The majority of cafes perform better in locations with heavy foot traffic, like malls or shopping centres. The site ought to be convenient for customers and reasonably close to your suppliers and vendors. The competitors you face should be mentioned in your cafe business plan.

You want to show in this area of the cafe business plan that you have done a comprehensive analysis of your target market and that you can show there is a market for your product or service. Analyzing your competitors’ strategies is a smart way to collect intelligence. Visit your competition, make notes about their menu items, marketing strategies, operational procedures, pricing, and brand positioning, and then do a thorough analysis of your results.

You can also inquire about the performance of local companies from residents in the neighbourhood where you intend to live. Your marketplace analysis will be realistic and more clearly depict how your business can succeed if you gather as much information as you can.

Strengths, Weaknesses, Opportunities, and Threats are referred to as SWOT. A thorough examination of the numerous aspects, including market- and regulatory-related changes, that may have an impact on how your cafe is run must be included in your cafe business plan. You can make sure that you are better equipped to manage risks by performing a SWOT analysis. It will also provide you with a greater understanding of the industry and enable you to better plan for unforeseen circumstances that can negatively impact your café.

If you don’t advertise your café effectively, it might not be profitable. You should therefore set aside money in your budget specifically for marketing. This should be mentioned in the cafe business plan to provide a thorough account of your marketing plan.

The financial plan is the most crucial part of your business plan for your cafe , especially if you require loan funding or are trying to convince investors to invest. Your financial strategy needs to show the expansion and profitability potential of your company.

For your cafe to be successful, you must have a solid operations plan. This needs to contain every component necessary for you to operate your café successfully every day. These would consist of:

• Choosing the Right Employees: This is essential to running your cafe. All potential avenues for finding suitable staff should be covered in a thorough hiring plan, including recruiters, employee recommendations, and advertising in newspapers, job sites, or on other social media platforms.
• The most important duty, after hiring the correct workers, is to train them. For your personnel to follow, develop Standard Operating Procedures (SOPs) and a training manual. Techniques for managing crises and disasters must be included in the training.

Download our cafe business plan template.

It is important to note that aside from having a business plan, there are more crucial steps to how you can start a cafe business. The essence of this cafe business plan template is to ensure that you follow all the necessary steps that can help you start your business. The checklist below will serve as a reminder. 

• Create a concept
• Select a name
• Compose a business plan
• Have financial projections
• Approved legal aspects
• Employ your management team
• Promote your business
• Provide your menu

Download our cafe business plan template .

Yes, a cafe business is a very profitable business. Depending on food production costs and other KPIs, most coffee shops turn a profit during their first few years of being in business. A cafe can anticipate a double-digit increase in sales by the fifth year. You should also budget carefully for unforeseen expenses, startup fees, and the costs associated with your first year of business.

Following the right steps when you are about to start a cafe business is very important. Succeeding in business will surely be easier once you follow the right steps. We’ve listed below some of the steps you can follow when you want to start your cafe business:

• Define your vision.
• Create a detailed business plan.
• Choose a location.
• Find the best suppliers.
• So source commercial equipment.
• Design your café
• Create a menu.
• Hire the right people.

Even though opening an independent cafe requires a lot of labour, the process doesn’t have to last for a very long time. You’ll position yourself for success early on if you concentrate on building these fundamental components while creating your cafe business plan.

What is the essence of your cafe if you have no customers or an overflow of customers? Here are some steps you need to take to attract customers to your coffee shop:

• Look at your pricing.
• Start a loyalty card program.
• Run a competition, particularly if you can get the local press to give you coverage.
• Tap up your suppliers for marketing materials
• Consider branded takeaway cups

Cafes can have gross margins of up to 85%, but small cafés often have operating incomes of just 2.5% of gross sales on average. Despite the financial obstacles, if you create a cafe, you might discover that you’re doing work you enjoy and making a gathering place that serves as a focal point for your neighbourhood.

A modest independent coffee shop’s typical annual revenue is between £100,000 and £150,000, and 22% of all cafés and coffee shops reach this level. However, just 12% will earn more than £250,000, while only 5% have a turnover of £25,000 or less.

If you’re thinking about opening a cafe, the first thing on your priority list should be preparing a business plan. Keep in mind that you are preparing the way for success. As a result of having your finances in order, you’ll be able to save money and actually obtain funding from banks and investors. The general message you want to convey must be woven into your business plan.

Coffee shops close their doors for a variety of reasons, including weak management, insufficient revenue to pay expenses, unreliable staffing, poor customer service, and excessive debt.

The choice of what kind of coffee to sell at your shop is entirely up to you as the owner. You must also make sure that your brewing procedures are excellent. However, coffee cannot generate all of the sales by itself. In actuality, only around 40% of a coffee shop’s overall sales come from coffee.

Managers of cafés are in charge of day-to-day operations. In addition to ordering café supplies, they hire, train, and oversee café staff, handle client complaints, and make sure that food safety and health rules are followed.

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How to write a cafe business plan

Cafe business plans are boring.

No one likes writing them, very few people even want to read them…but they can be vital for the success of a new business.

Why? Because as you write down your plans on a page, the process makes you to think critically about the how viable your concept really is.

There are a lot of long, technical business plan templates out there. This is not one of them. This is a simple, practical cafe business plan template for everyday humans.

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A good business plan should make you answer hard questions like:

• How are you really going to be different from your competitors?
• Where are your customers going to come from?
• How much money do you need to get started? (and then stay afloat for the first year)
• What sales & profit are you projecting over the first 3 years?

Start with your goals

Start by answering the most important, and often most difficult question: why are you doing this?

Some people are in it for the money, some are buying themselves a new career, some just want to see their vision become a reality. Your specific goals could also include how you’ll impact the community, your family (like time off) and a whole lot more.

Ultimately, you want to communicate what success looks like to you.

While you’re at it, I think it’s also wise to at least think about an exit plan. I know that seems like the opposite of what you should be doing right now, but having a strategy for selling or expanding your business will be a big deal in years to come. Some questions to ask all the partners involved in the business are: Is this for life, or are we planning to sell at some stage? How many years before we take a look at our options?

Marketing Plan: Who is this business for?

The most effective businesses are designed with specific customers in mind. The more specific you get, the more you can focus the plan on what they want. The example above (from the business plan template) breaks down customers into segments based on who they are (demographics) and what “occasion” (time of day, circumstance) you can fulfil. Now we have an idea of who they are, let’s have a look at what the competition is doing.

Your Competition & Competitive Advantage

If you already have an exact location lined up, go ahead and take a look at which customer segments your closest competitors are looking after.

Be honest, most businesses have something and someone they’re just right for. Find out what it is and compare it to the segments you're targeting.

Identify those things that you can focus on to help you stand out. Remember, you don’t have to please everyone, but you do need to be completely amazing for the customers you’re targeting.

Once, you really understand your customer & your competitive advantage you’re off to a great start. The marketing plan should also include:

• Pricing Strategy
• Promotions & Advertising Strategy
• S.W.O.T. Analysis – that is, the strengths, weaknesses, opportunities & threats of your business concept
• Branding & Store Design Strategy

Once you've got the fundamentals of your marketing strategy in place, take a look at our list of 12 cafe marketing ideas that can help give you some inspiration for specific tactics & promotions

Operations Plan

How are you going to run this thing?

Yes, you need to cover mind numbing details like:

• Business structure - company, partnership, sole trader, etc)
• Approvals / Registrations Needed – Development Approvals, Outdoor dining permit, etc
• Trading hours
• Opening date

But the big one for a cafe business is Location & Lease…

Location & Lease Strategy

Now if you’ve already signed a lease there’s not a lot to see here. Just outline the detail of the site and the basic lease terms.

In your plan, include a basic shopping list for your ideal site. Here’s an example from the cafe business plan template We are seeking a 100-150m2 retail lease with street frontage. The site will have high passing foot traffic drawing from a mix of office workers & local residents.  We are seeking minimum lease terms of 3 years + a 3 year option to allow a return on investment.

You can something like this to talk with brokers & real estate agents. It gives both you and them something to focus your search.

Who do you need to make this happen?

Ask any experienced cafe owner, the number one thing keeping them up at night is staff.

Now is the right time to think through who you need & what skills they need to bring. You should also make it clear what sort of hours & skills both you (and your business partners) are going to contribute.

How much is it going to cost to get started? How are you going to make money after that? The plan should include a Profit & Loss Statement (also called an 'Income Statement') – ideally over 3 years. Budget for opening costs. Including fit-out, equipment, stock & working capital.Where the money is coming from. Savings, loans, leasing, your parents...

Yes,  forecasting sales  is hard, even hospitality veterans get it wrong, but it’s important that you try. You can start with benchmarks & examples from other cafe businesses (a sample is included in the business plan kit) – but it’s wise to run your numbers by people who have done it before. They can provide a reality check based on your plan and location.

Ready to find out more about opening a café? Check out our step-by-step guide to opening a coffee shop - or take a look at our guide to buying a cafe.

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Cafe Business Plan

Coffee ranks second in the most sought commodities worldwide, the first is crude oil, according to a Business Insider report. That doesn’t come as a surprise. We’re all aware that most of us love drinking coffee. For some, coffee is their morning kick-starter and their fuel to start their long, busy day. Others drink several cups of coffee throughout their daily schedule , especially those who have desk jobs. But simply put, people are fond of coffee in general, which could also mean they’re fond of visiting cafes. So if you’ve been considering opening a cafe business lately, now is the time to go for it. It’ll certainly catch the attention of coffee lovers. But first, you need to plan your business right for that to happen. So, here we invite you to have a look at our Cafe Business Plan Examples !

11+ Cafe Business Plan Examples

1. cafe business plan financial template.

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2. Cafe Business Plan Template

3. Cafeteria Business Plan

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4. Cafe Business Plan Example

5. Start-up Cafe Business Plan

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6. Sample Cafe Business Plan

7. New Cafe Business Plan

8. Cafeteria Business Plan Template

9. Cafe Business Plan in PDF

10. Outdoor Cafe Business Plan

11. College Cafe Business Plan

12. Cafe Marketing Business Plan

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What Is a Cafe Business Plan?

A cafe business plan outlines the profile, products, services, operations, and strategies of a cafe business. It’s simply another form of a business plan that focuses on a cafe business’s overview. You can also call it a coffee shop business plan . This is the document you need to prepare to start making your cafe plan a reality. You should put everything that you’re envisioning for your cafe business on it.

You might be asking why you need a cafe business plan. We have a good explanation for you. Without a business plan, you wouldn’t have a clear vision or goal of establishing your cafe. And you won’t have any form of a solid action plan to achieve your business expectations. Along the way, you’ll face challenges in preparing your business. But you won’t know what to do to overcome them. With a written business plan , you’ll have a clear roadmap of how to arrive from point A to B and so on until you accomplish your business goals. And lastly, the government will look into your cafe business plan proposal before granting you a permit to open your cafe.

What Type of Business Is a Cafe?

Cafes primarily serve coffee to their customers. Therefore, they’re a food and beverage type of business. Historically, cafes were once called as coffeehouses, and they only served coffee. Today, cafes not only serve coffee. They now also serve entree, main course, and dessert dishes, but on a limited menu . Their primary products are still their  coffee menu  and also  tea menu .

How to Write a Cafe Business Plan

Among the first steps in conceptualizing a business is writing a business plan. It’s the first stage in your journey to becoming a cafe business owner. So to help you get started, we’ll give you a few tips in formulating your sample business plan for a cafe.

1. Establish Your Cafe’s Identity

In the first three sections of your business plan, you should establish your cafe’s identity right away. On the title page, you should state your cafe’s official name and display its business logo . On the executive summary , discuss its general overview. And after that, show its business profile.

2. Showcase Your Menu

If you’ve already prepared your cafe menu , showcase it in your business plan. This makes your business plan more appealing and convincing. It implies that you have a clear idea of what you want for your business, even if it’s not final yet. Make sure to provide descriptions of your products, such as their ingredients and possible prices.

3. Outline Your Strategies and Standard Operations

In launching a business, you’ll be doing a feasibility study and a market analysis . Based on their results, you need to come up with your marketing strategies and production plan . Those two should explain how you’re going to promote your cafe and how you’re going to conduct services, respectively.

4. Explain Your Startup Budget Calculation

Probably the most crucial section of a business plan is the budget plan . Financial aspects are never out of the equation in operating a business, especially starting one. So in your business plan, make sure to explain how your budget will cover for every needed expense for your cafe. You should also show an estimate of how it can generate revenue and profit.

What industry does a cafe business belong to?

A cafe business belongs to the food and beverage industry. But because it primarily serves coffee products, it also belongs to a specific section in the food and beverage industry, which is the coffee industry.

What makes cafes popular?

Coffee isn’t the only element that makes cafes popular in every locality. Another element is their overall ambiance. That includes the type of furniture used, the interior design, and the location. The atmosphere that cafes have are simply relaxing. They’re a good place to do work, meet up with friends, read a book, or spend some alone time.

What makes a topnotch cafe business?

The two things that make a topnotch cafe is producing high-quality coffee products and providing excellent customer service. Those two should work hand in hand.

Things could go south immediately if you mismanage your cafe. Plus, many cafes have established trust among customers, and they’re your competitors. With those said, running your cafe won’t be easy. But whoever said owning a business is easy? No one, of course. So start planning your cafe with the help of our business plan examples now! You may also refer to our small restaurant business plan examples .

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Restaurant Types

How to Write a Cafe Business Plan

Cafes are gathering grounds for people from all walks of life – plan your next cafe with this business plan template.

Tyler Martinez Author

Tyler Martinez

Restaurant Business Plan Template

No matter where you’re at in your restaurant ownership journey, a business plan will be your north star. Organise your vision and ensure that nothing is overlooked with this free template., TEST

No matter where you’re at in your restaurant ownership journey, a business plan will be your north star. Organise your vision and ensure that nothing is overlooked with this free template.

Business Plan for Cafes Guide

Great cafes are a combination of particularly good coffee, an inviting space to linger, and delicious treats to snack on while hanging out. Falling somewhere between a coffee stand, a sandwich shop, and a bistro, cafes occupy a  unique and vital place in the restaurant economy. But it is the space that they provide for people to meet, gather, share food, work, or just be in public that is distinct about a cafe.

The cafe is a lower-stakes business model that requires lower start-up costs and overhead than larger restaurants, but carving a space for your cafe in the market and charting a path to success are important considerations of opening any new cafe business. There's likely another cafe nearby, so how will you make sure to stand out?

Why You Need a Cafe Business Plan

Finding an open spot in the market for a cafe, and setting yourself apart from the local competition, will be necessary for the success of your business.

Building a business plan gets you to start making concrete decisions about your cafe, the space you will create, the types of food and beverages you’ll serve, and the kind of customer experience you imagine creating.

Curating a space where people gather to meet, conduct business, read, study, and eat takes detailed and nuanced decision making about the intricate overlapping details of your business model – details that you can begin to map out with this business plan. It takes a lot of work to open a cafe, and there's dozens of things to cross off a list, so business plans help keep you on track. They're also extremely useful when you're seeking out funding for your new business: business plans help show you're thinking about building a sustainable cafe that's set to be open (and successful!) for years to come.

How to Write a Cafe Business Plan (Description, Examples, Proposals)

Starting a writing project is often the most difficult part, contending with the unlimited possibility of a blank page. So don’t start with a blank page. Use our fully customisable business plan template to start envisioning your next cafe, and read on to learn what to add in each section.

Elements of a Cafe Business Plan

Executive summary.

The first section of your business plan is your primary opportunity to catch the attention of potential investors and partners. Keep your audience in mind while providing a concise summary of your vision and motivations for opening a cafe.

Describe key elements of your business plan, such as the business’s mission and core values, an overview of the budget, and a coherent vision for your brand in vivid detail that provides information and gets potential partners excited about the opportunity to invest.

Paint a picture of the space you’ll be creating, who will use that space, and how it will become and stay a successful business model. Answer questions like what type of experience will you be providing and why customers will want to return.

Company Overview

This section is a comprehensive summary of your business plan and focuses on the detail that the executive summary replaced with persuasive tactics. The company overview is more practical than attention-grabbing. It works as a glossary and guide for the rest of your cafe’s business plan.

Start with a definition of your cafe. Is it espresso-focused, a tea house, a cozy stop for breakfast sandwiches and filter coffee, or a grab-and-go commuter cafe? Also introduce information about the ownership structure, financial projections, market analysis, publicity strategy, and the roles you’ll need to find talent to fill.

The company overview also gives you a chance to introduce branding, graphics, any charity work your business will engage in, and all the more conceptual visions of your brand. Between the executive summary and company overview, your audience should know about your business plan and where to look in the document for information about key elements.

Team and Management

The staffing needs of your cafe should be outlined in detail in this section. First, define your role in the cafe. Are you the research and development team, general manager, a hands-off owner who deals with timesheets, or some combination of those roles?

Use this section to plan the people structure of your business model. Give investors a picture of who is going to manage your cafe, build schedules, make the drinks and food, develop recipes, do marketing and publicity, and how they will work together to curate the customer experience of your cafe.

Make a timeline for hiring and training new staff and what you expect from each role. Staffing needs are a major factor in planning for your cafe’s budget and financial projections, so it’s crucial that you are detailed in this section to inform accurate financial estimates.

Sample Menu

Cafe menus are best when a little bit predictable and a little bit fun, and the sample menu is the heart of a good business plan. It communicates the types of food and beverages that you plan to serve, the equipment needed to serve those items, and the supply chains you’ll be entering to keep those stocked in your store(s).

If espresso drinks are on your menu, provide information in this section or elsewhere about the kind of espresso machine you’ll purchase, which can be a major investment depending on quality. Make the same kinds of decisions about grills, blenders, ovens, and the other cooking and kitchen equipment that you’ll need for your cafe. 

Those things will factor into your budget so it’s important to outline those decisions here. Design sample menus that let investors feel your passion for the food, drinks, and the experience you plan to create for customers.

Restaurant Menu Templates

Use these menu templates as a starting point for your menu design or to give your menus a refresh.

Market Analysis

The market analysis provides a detailed look at the location of your cafe , the customers that location gives you access to, how you’ll expand your reach with online ordering or delivery, and the competition you’ll encounter in that area. Use this section to impress upon your potential investors that you’ve charted a path to success for your cafe before spending any of your (or their) investment. 

This section might include information about your motivations for opening a cafe and why you think it’s the right time for you, specifically, to enter this market. It’s a great opportunity to calm potential investors’ anxieties about partnering with your cafe. 

Marketing and Publicity

Once you’ve pinpointed the kind of customer you’re planning to serve, make a plan to grab and keep their attention. A grand opening might not be the right fit for a cafe so you might consider a soft opening instead to generate some mystique and word-of-mouth publicity for your brand.

A solid marketing and publicity strategy lets your investors know that you’re not just business savvy, but that you can convince customers to buy what you offer, which will help to impress them into investing or partnering in your cafe. Many coffee shops go all-in on digital marketing, staying active on social media and ensuring they have a robust web presence with a great website. 

Restaurant Marketing Plan

Create a marketing plan that'll drive repeat business with this customizable marketing playbook template and interactive calendar.

Branded Graphics

Because there is so much competition in the coffee market, a clear, cohesive brand is crucial to helping you attract customers — then, your consistent, quality coffee and service will create regular customers once they're in the door.

Creating graphics for your new cafe that capture the ethos of your brand and communicate it to customers in a memorable way is one of the most fun parts of planning a new business. Work with a designer or use the software available to you to create typography and logos that work coherently with your vision for your brand.

Graphics will be present in your cafe, on the packaging, on your websites, and will stick in your customers’ minds for brand recognition. Plan carefully how you want to brand your cafe because rebranding can be risky and costly.

Emissary, a cafe in Washington DC, uses a minimal style and simple typographic logo to foreground their commitment to a fresh menu and quality espresso beverages. Think about how you might capture your cafe’s style and mission with graphics like Emissary has.

Business Operations

The business operations section is where you plan for how your business will run from the micro-level of each customer transaction to the macro-level of quarterly and yearly profit and loss statements. If sample menus are the heart of the business plan, the business operations section is the brain, responsible for storing, sorting, and applying the information in the rest of the plan.

Map the network of operations that keep your business running smoothly. Include information about seasonal recipes, special drinks, or annual promotions that will make up for losses taking in slower parts of the year. The details of loyalty programs and how all the operations work together to create a customer experience worth returning for would also be at home in the business operations section.

Sales Forecasts and Operating Expenses

Use this section to carefully combine the details from across your cafe’s business plan and make a budget of your operating expenses. These include the costs of running your cafe, including training, equipment, maintenance, labour, supplies, rent, loan payments, etc. 

Business plans commonly include a “break-even analysis” which compares the sales required to break even with the cost of expenses each month. Investors will be interested in the potential for profit and loss to assess the risk of contributing to your business, but a profit and loss statement for a business that isn’t open yet requires some educated projections.

A cash flow analysis shows investors that the company can support itself without additional investments by detailing planned spending on labour, supplies, and operations.  Be sure to consider how the costs unique to your brewery, such as cleaning supplies or seasonal labour costs, balance at the end of each quarter.

Financing and Loans

The startup costs for a cafe will depend on a number of factors, such as the quality of equipment, coffee, teas, and foods you plan to serve. Use this section of your business plan to prepare to purchase equipment, pay to hire and train staff, purchase licences, rent or lease a space, and market your cafe’s opening.

Consider all your financing options when planning to open a cafe – including lines of credit, government funded start-up loans, merchant cash advances, crowdfunding, commercial real estate loans, equipment financing, purchase order financing, and bank or alternative loans.

How to Present a Cafe Business Plan

There are a few ways to prepare to communicate with investors about your business plan and get them interested. It can be helpful to build out a full-length presentation that you'll share at formal investor meetings, and then distill the main takeaways down to a short pitch of a few minutes for when you're trying to secure that meeting. Then, going even more condensed, a well-crafted 30-second elevator pitch can help you entice lots of potential investors in a wide variety of situations: from parties to networking events. Be sure to include something exciting or make an opportunity for questions to keep people talking.

It’s good to anticipate potential questions and prepare answers for questions you encounter for the first time. When networking, be honest and genuine, even if you don’t have a ready answer for each question that comes your way – just let your listeners know that you'll get an answer to them at a later date, and then follow up as soon as possible. 

Send your business plan to investors and banks far and wide – put your concept and plan in the hands and minds of as many people as possible. You can’t hear no (or yes!) unless you ask.

Related Resources

• How Much Does it Cost to Open a Cafe in the UK? 
• How Much Does it Cost to Open a Small Restaurant in London?
• The Top 20 Quick Service Restaurants in the UK 
• How Much Does It Cost to Open a Pizza Shop in the UK? 

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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.

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How Much It Costs To Own A New Cafe? (6 Countries?)

If you’re dreaming of opening a coffee shop the first questions you’re probably asking yourself are: How much does it cost to open a coffee shop?

There’s no hard and fast answer on how much it costs to start a coffee shop. Your costs will depend upon the type of coffee shop you want to open, the costs of retail space in your community and many other variables.

How Much It Costs To Start A Cafe In USA?

Here are some ranges for the costs of opening various types of coffee businesses in USA:

• Coffee kiosk: $60,000 to $100,000
• Mobile coffee food truck: $50,000 to $100,000
• Coffee shop with seating: $80,000 to $250,000
• Coffee shop with seating and drive-thru: $80,000 to $275,000

If you already own a suitable building or have a complementary business such as a bakery, your costs might be much lower. If you want to add a brew bar to your coffee shop, add about $5,500 to $20,000 to your initial costs. In addition to start-up costs, you should have cash on hand to cover all of your operating expenses for the first six months.

Read the full article from  www.crimsoncup.com

Start-up Cost To Own A New Cafe In UK?

The lowest amount you could probably get away with is £20k. A big coffee shop on the high street could easily cost you £50k and of course, you could spend even more if you want to.

These are just rough estimates and there will be many more things to spend your money on but we hope it gives you a rough idea.

• £2,500 – £10,000 for espresso equipment
• £1,000 – £2,500 for dishwashers
• £1,000 – £2,000 for flooring
• £500 – £2,000 for ceiling
• £100 – £500 for painting
• £500+ general building work
• £500 – £3,000 for AC
• £250 – £1,000 for crockery
• £250 – £2,000 for a till
• £500 – £1,500 for accountancy
• £500 – £2,000 for a solicitor
• £500 – £1,500 for insurance
• £1,000 – £3,000 for initial stock
• £100 – £2,000 for signs and marketing
• plus working capital, deposit, rent, rates, planning applications, change of use, professional advice etc etc

Read the full article from  www.howtostartacoffeeshop.co.uk

Starting Your Own Coffee Shop: Opening & Running a Successful Coffee Business

How much it costs to start a cafe in singapore.

To start a decent cafe in Singapore, we are looking at a minimum sum of S$120,000 to S$150,000. The amount can vary quite a bit depending on the scale of your cafe. Some cafe owners spent S$120,000 while there are others who pumped in more than S$250,000.

The odds are very much stacked against independents who do not have sufficient financial capital and liquidity, the proper experience of running an F&B establishment, bargaining power, as well as the right connections to sustain their businesses. Moreover, many new hipster cafes are too often more hype than substance by focusing too much on the aesthetics and miscellaneous furbishing instead of working on the more important factors like food and service.

Read the full article from  www.ladyironchef.com

A Cafe Startup cost In Malaysia

First things first, you have to be financially secure to start a cafe. Investing in a cafe business will cost you at least RM500,000 to RM600,000 to cover your location rental, deposit, labour costs, equipment and supplies, amongst many other things.

That’s not all. Competition in the cafe and F&B industry is quite high these days so the chances are, you may not be making a lot of money starting out.

Read the full article from  says.com

How to Start a Cafe Plus Business Plan

• Everything you Need to Know About Starting a Cafe.
• Plus get a 425+ Page SBA Approved Lender Directory!
• 9 Chapter Business Plan (MS Word) - Full Industry Research - Included In the Guide!
• Same Day Shipping (If order is placed before 5PM EST)! Delivered as CD-ROM.
• Easy to Use MS Excel 3 Year Financial Model

How Much It Costs To Start A Cafe In Australia?

Starting up your business in Australia is a big investment, and needs to be taken very seriously. Besides the existing competitions between surrounding cafes (more than a thousand in Brisbane alone) and budgeting for land space, there are many more factors which can alter the cost needed.

That being said, all costs are still depending on individual cafes (as all cafes are special and unique), but the basic expenses are still more or less the same. To have a better overview, below is a list of main expenses, broken down to stages.

The total cost will round up to approximately 200k to 500k, so plan, plan, and plan again for your business!

Read the full article from  surpass.com.au

Start-up Costs For A Small Café In Japan

Here is the information to start a small cafe in Tokyo:

• 8-seater café in Meguro-ku with 2 staff, took 15,000,000 JPY in start-up costs (about $185,000 / £119,000). Monthly sales goal of 2,000,000 JPY ($25,000/£16,000), with current estimated sales at 680,000 JPY ($8,500/£5,300).
• Café with 20-seats in Setagaya-ku, 4 staff. 10,000,000 JPY cost at start-up ($125,000/ £79,000). Monthly sales goal 1,800,000 JPY ($22,600/£14,000), current estimated sales of 1,512,000 JPY ($19,000/£12,000).
• Café in Ishikawa prefecture with 28-seats and 2 staff took 8,000,000 JPY to get started ($100,000/ £63,000). No monthly goal stated, but current estimated sales of 600,000 JPY ($7,500/£4,700).

Read the full article from  alittleshopintokyo.blogspot.my

Think Twice Before Starting A Cafe

As you can see, there is no a fixed cost to start a new cafe but it is quite hard to own a cafe no matter where you are!

If you still consider starting a cafe business, we highly recommend you to read our article on  What You Need To Know To Start A Coffee Shop?

8 Things To Learn From John Letoto About WBC ?

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How to Start a Café or Coffee Shop in Colombo Sri Lanka

Starting a café or coffee shop in Colombo, Sri Lanka, a South Asian city of roughly 5.6 million people, can be a rewarding venture, especially given the growing café culture in the city. Colombo, as the commercial capital of Sri Lanka, has a vibrant mix of local and expatriate communities, tourists, and young professionals who are often drawn to the café lifestyle. However, entering this market requires careful planning, an understanding of the local business environment, and attention to cultural preferences. Below is a comprehensive guide to help you navigate the process of opening a café or coffee shop in Colombo.

1. Market Research and Concept Development

Understand the local market.

Before diving into the café business, it’s essential to conduct thorough market research. Understanding your potential customers’ preferences, behaviors, and spending patterns will help shape your business concept. Colombo has a mix of traditional tea-drinking culture and a rising demand for specialty coffee, driven by younger generations and tourists.

Identify Your Target Audience

Your target audience could range from local office workers, students, and expatriates to tourists. Tailoring your concept to appeal to one or more of these segments is crucial. For example, a café near a business district might focus on quick service and takeaway options, while one near a university might cater to students with affordable pricing and a cozy environment.

Develop a Unique Selling Proposition (USP)

Given the competitive landscape, it’s vital to differentiate your café. This could be through offering a unique blend of locally sourced coffee, a particular type of ambiance, specialty teas, organic food options, or even cultural events like live music or art exhibitions.

2. Business Plan and Financial Planning

Draft a business plan.

A solid business plan serves as your roadmap. It should include an executive summary, business goals, market analysis, organizational structure, product offerings, marketing strategy, and financial projections. This document is also essential if you seek investors or loans.

Financial Projections and Budgeting

Estimate your initial startup costs, including rent, renovations, equipment, licenses, and initial inventory. Also, forecast your monthly expenses such as salaries, utilities, and supply costs. Include a break-even analysis and set realistic revenue goals. Consider the pricing strategy—balancing affordability with profitability.

3. Location and Venue Selection

Choosing the right location.

Location is crucial to the success of your café. Popular areas in Colombo for cafés include neighborhoods like Colombo 1 (Fort), Colombo 7 (Cinnamon Gardens), and Colombo 5 (Havelock Town). These areas are known for their foot traffic, mix of businesses, schools, and residential zones, and their appeal to both locals and tourists.

Lease or Purchase Considerations

When securing a location, decide whether to lease or buy the property. Leasing is common and reduces initial costs but ensures the lease terms are favorable, especially regarding rent increases and lease duration. If purchasing, consider the long-term value of the property.

Interior Design and Layout

The design of your café should reflect your brand and target audience. Colombo’s café-goers appreciate aesthetically pleasing, comfortable, and Instagram-worthy spaces. Work with local designers who understand the local aesthetic while incorporating modern elements. Ensure your layout facilitates efficient service, with a clear path from the entrance to the counter and seating areas.

4. Legal Requirements and Permits

Business registration.

Register your café with the Department of the Registrar of Companies in Sri Lanka. You’ll need to choose a business structure, such as a sole proprietorship, partnership, or private limited company. Registering a private limited company is often recommended for its legal protections and potential for growth.

Licenses and Permits

To operate a café, you’ll need several permits:

• Trade License: Issued by the Colombo Municipal Council, this is required for any business.
• Food License: Required to serve food and beverages, issued by the Municipal Health Department.
• Alcohol License: If you plan to serve alcohol, you’ll need an alcohol license from the Excise Department.
• Fire Safety Certificate: Ensure your café meets fire safety regulations, and obtain a certificate from the Fire Department.

Compliance with Health and Safety Regulations

Your café must comply with Sri Lanka’s health and safety regulations. This includes maintaining hygiene standards in food preparation, providing clean drinking water, and ensuring that the premises are safe for both customers and employees. Regular inspections by health officials are common.

5. Sourcing and Supply Chain Management

Coffee and tea suppliers.

Given Sri Lanka’s rich history in tea production, sourcing high-quality local tea is straightforward. For coffee, you may need to decide whether to use local coffee beans from regions like Kandy or import specialty coffee. Establish relationships with reliable suppliers who can consistently deliver high-quality products.

Food and Pastry Suppliers

If you plan to offer food, consider whether you’ll bake in-house or source from local bakeries and food suppliers. Colombo has a range of options for both fresh and pre-prepared goods. Ensure your suppliers comply with health standards and can deliver consistently.

Equipment Suppliers

You’ll need to invest in quality coffee machines, grinders, blenders, refrigeration units, and kitchen appliances. Sourcing these from reputable suppliers who offer maintenance services is crucial. Colombo has local suppliers, but you might also consider importing specific high-end equipment.

6. Staffing and Training

Hiring staff.

Finding skilled and trustworthy staff is essential. Positions to consider include baristas , chefs or cooks, waitstaff, and a manager. Given the importance of customer service in the hospitality industry, hiring staff with experience and good communication skills is crucial.

Training Programs

Invest in training programs, particularly for your baristas and kitchen staff. Baristas should be skilled in coffee-making techniques, while kitchen staff should adhere to hygiene and food preparation standards. Regular training ensures consistency in service quality and helps with staff retention.

7. Marketing and Branding

Brand identity.

Your café’s brand identity should resonate with your target market. This includes the name, logo, color scheme, and overall aesthetic. Consider working with a local branding agency to create a strong, recognizable brand.

Online Presence

In today’s digital age, having a strong online presence is crucial. Create a website that highlights your menu, location, and story. Leverage social media platforms like Instagram, Facebook, and TikTok to engage with customers, share updates, and promote special offers. Digital marketing strategies such as SEO , Google Ads, and social media advertising can drive traffic to your café.

Local Partnerships and Community Engagement

Collaborating with local businesses or participating in community events can increase your visibility. For example, you could partner with local artists to display their work in your café or host events like book readings, live music, or workshops.

8. Grand Opening and Customer Experience

Planning the grand opening.

A grand opening event can generate buzz and attract your first customers. Offer special promotions, such as free coffee for the first 50 customers or discounts on your opening day. Invite local influencers, media, and bloggers to create publicity.

Customer Loyalty Programs

Implementing a loyalty program can encourage repeat business. Consider offering a free drink after a certain number of purchases or discounts for referrals. Loyalty programs can be managed through simple punch cards or integrated into a digital POS system .

Feedback and Continuous Improvement

Encourage customer feedback to understand what works and what doesn’t. This could be through comment cards, online reviews, or direct communication. Use this feedback to continuously improve your offerings and customer experience.

9. Sustainability and Social Responsibility

Eco-friendly practices.

Sri Lanka’s growing emphasis on sustainability means adopting eco-friendly practices can resonate well with customers. Consider using biodegradable or reusable packaging, sourcing organic ingredients, and reducing waste in your operations.

Community Support

Engage in community support initiatives, such as donating a portion of your profits to local charities or hosting events that benefit the community. This not only enhances your brand’s reputation but also strengthens ties with the local community.

10. Challenges and Opportunities

Navigating economic conditions.

Sri Lanka’s economy has faced challenges, including fluctuations in the value of the Sri Lankan Rupee and changes in import regulations. Being adaptable and having contingency plans, such as diversifying suppliers or adjusting your pricing strategy, can help mitigate risks.

Tourism and Local Trends

Tourism is a significant part of Colombo’s economy. Positioning your café as a tourist-friendly spot, possibly by offering local delicacies or catering to dietary preferences common among international travelers, can boost your business. Staying attuned to local trends, such as the rising interest in vegan or plant-based options, can also create new opportunities.

Starting a café or coffee shop in Colombo, Sri Lanka, involves careful planning, a deep understanding of the local market, and a commitment to quality and customer service. By following the steps outlined above and being adaptable to the dynamic business environment in Colombo, you can create a successful and beloved café that resonates with both locals and visitors alike. Remember, the key to success lies in the details—from sourcing the best ingredients to creating a warm and inviting atmosphere that keeps customers coming back.

Related Posts

How to Open a Cafe With a Low Budget

How to Start Your Own Coffee Shop in South Africa

Coffee Shop Owner Salary and Job Description

In our 21st year now, Bucer’s Coffeehouse & Pub has been roasting our own fine coffee, serving great espresso, baking beautiful pastries, grilling hearty sandwiches, pouring amazing local draught beers, and fine wines, and much more…

We do it all for a vibrant and diverse community that appreciates great food and drink, enjoys live music, and loves to run into their friends here in our pub.

THE ROASTERY

Bucer’s was built on the foundation of carefully selected 100% Arabica coffee, roasted fresh, in-house, every week. Our favorites tend to come from the isthmus area of Latin America (especially Guatemala, Nicaragua, and Costa Rica), the horn of Africa (especially Ethiopia), Sumatra, and Papua New Guinea – but we’re always running into stunning new coffees that we work into our regular rotation.

Our pride and joy – and the focus of our roasting – is our signature Bucer’s Blend. Bucer’s Blend combines beans from Latin America, East Africa, and Indonesia to create a nutty, chocolatey, earthy cup. Balancing these classic espresso notes with a light sweetness and elegant smoothness, it works beautifully as espresso but just as well in a French Press, pour-over, Aeropress, and even as a drip coffee.

Our Roastmaster roasts our coffee a few times weekly with a Turkish-built Toper 10-kilo roaster. The artisan craft originated with Bucer’s founding family and current owner, the Greenfields. Roasting our own guarantees the freshest cup in the region!

The Bucer’s kitchen staff gets started early in the morning, baking our own made-from-scratch muffins, cinnamon rolls, scones, and coffee cake. Our rich quiches come flourless or baked in a fine pastry crust, with options for vegetarians or meat-lovers. Our hearty Pub breakfast pastries and breakfast burritos are filled with eggs, sausage, and cheese. Our panini grilled sandwiches are piled with meats, cheeses, and veggies onto our fresh-baked focaccia bread. Plus a rotating variety of daily soups, pasta salad, brown rice salad (GF), or Asian kale salad (GF), and any number of inspired surprises.

Our homemade dessert selection includes our popular six-layer Guinness Chocolate Cake, Crumb Top Apple Pie, New York Cheesecake, Key Lime Pie, and our rich chocolate truffles and macaroons. Don’t forget to try our signature Affogato with Ferdinand’s local WSU creamery ice-cream.

There’s many more great menu items we could list here, but we recommend coming in, taking a look at our selection which includes many Gluten-Free options, and tasting some for yourself!

Every Thursday, Friday, and Saturday night, Bucer’s offers an eclectic blend of live music. We feature jazz, blues, Americana, Indie, folk, rock, etc. and many a singer-songwriter. Check our Facebook page or follow us on Twitter to get weekly updates about our featured artists and live music times.

All ages welcome and no cover charge! If you are interested in auditioning to play here, it’s simple! Email Pat at [email protected] Subject line: MUSIC and let us know who you are and what your sound is. We line up auditions on Sunday evenings while we’re closed, and then if you’re a good fit for Bucer’s, we’ll schedule you in!

The Best Coffee

Try our most popular blends.

BUCER’s RECIPE BOOK

Refreshment for any time of day

All our coffee is roasted fresh weekly—only twenty feet away from where we serve it. Our baristas pull ristretto-style espresso with our earthy, chocolatey, and nutty Bucer’s Blend, and can make just about any kind of coffee drink you can imagine. From our impossibly delicious signature Cuban coffees, to milkshake-thick frappés, to old standbys like lattés and Americanos — we’re simply making the best coffee in Moscow.

Our wine list is curated in consultation with local wine experts and afficionados. Pair a glass with our homemade chocolate truffles, or a bottle with our gourmet three-cheese plate and some friends. Our taps feature a rotating selection of local microbrews—including Bucer’s Paradise, a blend of Paradise Creek’s milk stout with Bucer’s Blend Espresso —together with Northwest classics like Mac & Jack’s African Amber Ale and Terminal Gravity’s IPA or choose one of our many fine bottled brews.

Rounding out our drink menu we have real fruit smoothies blended to order, refreshing classics like Italian sodas, comforting staples like hot chocolate steamed on our La Marzocco. Then there’s our loose-leaf tea menu (TeaFountain.com), featuring a variety of complex, exotic loose-leaf teas, hot or iced. An array of other refreshing beverages completes our broad menu.

Come on In!

Monday through thursday.

7:00 am to 10:00 pm

Friday and Saturday

7:00 am to 11:00 pm

(208) 596-0887

[email protected]

201 South Main Street Moscow, ID 83843

After traveling to all 50 US states, these are the 6 major cities I have no plans to return to

• After traveling to all 50 US states, I've been to my fair share of major cities .
• Although I've loved a handful of the cities, there are some I don't plan on visiting again.
• I probably won't return to places like Las Vegas, Miami, Boston, or Phoenix.

As a full-time travel writer and creator, I'm always eager to explore new places. I've visited all 50 states and have spent my fair share of time in nearly every major city in the United States.

Even though I generally gravitate toward more remote, outdoor-recreation-focused locales, there are a handful of cities I always enjoy visiting.

However, some places haven't left me wanting to book a return trip. Here are the six major US cities that I have no plans to return to.

Oregon is one of my favorite states, but I don't plan on returning to Portland.

Oregon is one of my all-time favorite states to travel to. Its landscapes feature incredible waterfalls, dramatic coastlines, and bright-green foliage at nearly every turn.

However, my love for the state's natural beauty is the main reason I have no desire to revisit Portland, which is the largest city in Oregon.

Although I had an OK time during my previous visits to the city, nothing really stood out to me. If I wanted to visit a major city in the Pacific Northwest, I'd instead visit Seattle, which has always felt more vibrant to me.

Some people love Las Vegas, but it just wasn't for me.

Although many people seem to love Las Vegas , it simply isn't a place I would choose to visit again.

The crowds and commercialization aren't my style, and there's so much natural beauty within two hours of the city. I'd rather spend my time exploring places like Red Rock Canyon, Valley Of Fire State Park , and Death Valley National Park.

If I'm visiting Florida, there are other cities I'd choose over Miami.

Throughout my travels, I've honestly enjoyed spending time in Florida more than most other states. That said, Miami hasn't been high on my list of places to return to.

The crowding and somewhat superficial feeling I've gotten while visiting has been a turn-off, and like many other cities on this list, there are just too many other options nearby I'd rather visit.

Instead, I love traveling to the Florida Keys, Jacksonville, the Everglades, and smaller towns on the Gulf Coast.

None of my experiences in Boston have been particularly memorable.

I've traveled to Boston a handful of times. Maybe I've just had bad luck, but I haven't had a memorable experience during any of my visits.

Although I'm sure there's a lot of the city I haven't seen, I haven't been impressed in a way that makes me want to spend much more time there.

Instead, I love using Boston as a jumping-off point for other East Coast travel.

I found Los Angeles to be too congested and overwhelming.

There's nothing that I really dislike about Los Angeles — I just think there are so many better options nearby.

Boasting a vibrant cultural scene, world-class dining, and iconic landmarks, I think it's a great place to visit once or twice. Still, the city's congestion and overwhelming size can often overshadow its charms, which is why I have no plans to return to Los Angeles itself.

Instead, when I'm in the area, I love visiting Malibu , Topanga Canyon, Santa Barbara, or even San Diego. These less-crowded cities have excellent access to nature and less traffic than LA, which is important to me.

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Phoenix, a desert oasis that has experienced explosive growth in recent years, presents a unique blend of urban amenities and natural beauty.

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Although Phoenix has a lot to offer as a growing metropolis, I find that I'd rather spend my time outside the city, where I can access nature and more serene wellness resorts.

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New Orem cafe offers cherished family cinnamon roll recipe for public consumption

By curtis booker - | aug 23, 2024.

Nancy Whitney, affectionately known as “Mema,” knows a good pastry when she tastes one, and also has a knack for taking an idea and making it her own.

In the late 1970s, Mema, who resided in Southern California at the time, was enjoying a cinnamon roll that she purchased while on a visit in Salt Lake City.

According to Chrisi Hammer, Mema’s daughter and co-owner and founder of Sunshine Buns Cafe in Orem, the cinnamon roll was unlike anything she’d ever tasted. “She’s from Los Angeles, so there’s really great, wonderful food there. But she had never tasted a cinnamon roll like she had tasted one in Salt Lake,” Hammer said.

However, the deliciousness of the roll sparked an idea in Mema’s head to make her own from scratch. “So she went home, and she said, ‘I could certainly make a cinnamon roll to top that, and I’m going to figure it out,'” Hammer explained. “So, she went home, and she reverse engineered this cinnamon roll and created what we have come to believe is possibly the best dough there ever was, which really makes the cinnamon roll top tier.”

Mema called them “sunshine buns” because of their texture and look — or as Hammer would describe them, their “beachy vibes.”

Mema was never interested in going into business, but she baked batches of the buns for fundraisers, church groups and community events and sold tons of rolls for years in California, where she built a loyal base of people who enjoyed them.

“It has a lot of roots in Southern California, and the community really rallied behind this bun,” Hammer said.

For years, Hammer said she tried to persuade her mother to consider a business venture, but to avail. “And then when she moved to Utah in 2017, I said, ‘Mom, I want to sell these cinnamon rolls.’ And she said, ‘I don’t want to,'” Hammer recounted. “She said, ‘I did that for decades in fundraisers, and I think that’s so awesome that you have an entrepreneurial spirit to do that, but I’m not interested in doing that.'”

While Mema, now in her late 70s, never wanted to go the business route, it didn’t stop Hammer and her best friend Kass Martin from exploring it.

“One day, I was talking to Kass and I said, ‘Hey, let’s start a cinnamon roll company after Mema’s sunshine buns,’ which of course, she had already had and knew how great they were,” Hammer said.

The piping-hot idea really started to bake one night in the fall of 2022 while the two were on a double date at the Hale Center Theater and they finally made the decision go full steam ahead with the plan. “Halfway through the play, we’re just excited sitting there, you know, already planning in my head, and she’s planning in her head, and she leans over to me and she says in my ear, in the middle of the play, ‘Sunshine buns … delivering sunshine one bun at a time,’ which now is the company’s tagline.”

Hammer and Martin are both co-owners of the business with their husbands. Mema also has a small part in the ownership. The duo got Mema’s blessing to start a company and began making sure they had the recipe models down pat.

Martin said initially they opted to offer home deliveries to gauge interest in the community. “So, the night that we were at the play, we got everything settled with the website and with an Instagram page, and then we started doing daily orders and daily deliveries and just to see, to test our product first.”

After turning their kitchens into bakeries and delivering buns across Utah County, testing the product for about six months, they secured and signed the lease on their first brick and mortar location in the spring of 2023.

The establishment sits in what was formerly known as The Italian Place restaurant on State Street in Orem just north of University Parkway. Hammer, who also runs an interior design firm, used her construction and design skills, working with their team to completely gut, remodel and rejuvenate the former restaurant.

“It really has the essence of you walk in and you feel that sunshine, you feel better, you feel connected. And we want it to be a place where people come for a date night, they come for a girl’s lunch, they come for family gathering,” Martin said.

The cafe promises an upbeat atmosphere, serving cinnamon rolls, tasty buns and drinks.

Martin says in addition to Mema’s signature roll with cream cheese frosting, they plan to have a list of rotating flavors like a banana cream pie, cookies and cream, Oreo, peach cobbler, apple pie and many others. Unlike most cinnamon roll offerings, Martin and Hammer say it’s the dough that makes a sunshine bun stand out.

“It has that sense of like my grandma made this,” Martin described. “It has that homemade flavor.”

Venturing into business with your best friend can come with certain challenges or in some cases may end a friendship. But these co-owners both share the vision of bringing Mema’s passion for baking to more people in an inviting space to enjoy a piece of family tradition that aims to please with each bite.

“And that really has been an easy vision for us to maintain, because really it started with Mema’s love and affection for people and getting these buns to people who needed that pick me up, or who needed help raising money, or whatever it may be. And now we’re able to bring that same essence into this store,” Martin said.

Sunshine Buns is holding its grand opening this weekend at 1086 S. State St. in Orem.

The plan is to be open seven days a week from 7 a.m. to 10 p.m. Monday through Thursday, and close at 11 p.m. on the weekends. Sunday hours will be 8 a.m. to 2 p.m.

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What We Know About Kamala Harris’s $5 Trillion Tax Plan So Far

The vice president supports the tax increases proposed by the Biden White House, according to her campaign.

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By Andrew Duehren

Reporting from Washington

In a campaign otherwise light on policy specifics, Vice President Kamala Harris this week quietly rolled out her most detailed, far-ranging proposal yet: nearly $5 trillion in tax increases over a decade.

That’s how much more revenue the federal government would raise if it adopted a number of tax increases that President Biden proposed in the spring . Ms. Harris’s campaign said this week that she supported those tax hikes, which were thoroughly laid out in the most recent federal budget plan prepared by the Biden administration.

No one making less than $400,000 a year would see their taxes go up under the plan. Instead, Ms. Harris is seeking to significantly raise taxes on the wealthiest Americans and large corporations. Congress has previously rejected many of these tax ideas, even when Democrats controlled both chambers.

While tax policy is right now a subplot in a turbulent presidential campaign, it will be a primary policy issue in Washington next year. The next president will have to work with Congress to address the tax cuts Donald J. Trump signed into law in 2017. Many of those tax cuts expire after 2025, meaning millions of Americans will see their taxes go up if lawmakers don’t reach a deal next year.

Here’s an overview of what we now know — and still don’t know — about the Democratic nominee’s views on taxes.

Higher taxes on corporations

The most recent White House budget includes several proposals that would raise taxes on large corporations . Chief among them is raising the corporate tax rate to 28 percent from 21 percent, a step that the Treasury Department estimated could bring in $1.3 trillion in revenue over the next 10 years.

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Moscow's culinary opportunities: How to open a restaurant

Having a nice family-style restaurant in the Russian capital with a flavor of your home country is a popular business option for many expats. But it’s not as easy as it might seem. Here are a few things to consider for potential restaurant-owners.

Thinking it through

First and foremost, one should make sure that owning a restaurant, even a small one, is really something you would like to do. As any kind of business, it takes a significant amount of time and money to manage and develop. “Success in public catering requires hard work, without weekends or holidays,” Ilias Iliadis, owner of Pita&Suvlaki Greek restaurant in Moscow, told Russia Beyond. “It is not as hard to open a place as running it.”

One will need to learn everything about every aspect of a business, from legal, fire and sanitary requirements to managing business partner relationships and hiring experienced staff. “There are many difficulties in this sphere, so you need to be totally in love with what you do to be successful,” says Radomir Krajinovic, owner of Serbian restaurant Optimist.

The number of national cuisine restaurants have grown in Moscow over the last few years.

Market trends

As we noted previously, the economic crisis had led to many Russians cutting back and, as a result, there has been a growth in interest in developing fast food outlets.

Yet, the general dynamic for restaurants is toward growth: According to Poster company 2017 review of trends in the restaurant business, healthy eating, vegetarian food, open kitchen format, craft beer, food trucks (mobile cafes), and regional cuisine are becoming more popular in Moscow. The number of restaurants and bars grow and they compete for custom by offering special deals and interesting dining formats.

“Over the last few years the number of national cuisine restaurants have grown,” says Krajinovic. ”Yes, the crisis has led to fewer people visiting us, but we are still doing well - we are opening a new restaurant soon.”

Iliadis’s venture is also experiencing growth: He opened his first café in city center in 2014 – now he has opened a second restaurant and a third one is on the way.

Of course, setting up a firm without back is impossible. “To open a small restaurant or a cafe one would need 5 million rubles ($87,160),” Vladimir Shalaev, a lawyer at BMS Law Firm, told Russia Beyond. Iliadis confirms this figure. “In our case it was a year before it paid off. Our small restaurant became popular quickly so we had to find a bigger place,” he adds.

“The biggest part of what you’ll need to pay is rent. It is very expensive here,” Krajinovic says. “Other things depend on what one wants. A home-style restaurant might require from seven to 10 million rubles of investment which will pay off in two years.”

Russian banks also offer business loans. “You need to have 30 percent of the necessary investment for the new project and the bank will cover the remaining 70 percent,” says Igor Glukhov, deputy director of Credit Department of RosEvroBank.

If you serve good food and your clients sense it, they will become regulars and inspectors will not come often if they don’t receive complaints.

Legal aspect

The procedure of setting up a legal entity is no different for a foreigner than for a Russian national. “You need to gather all necessary documents to register a firm: Passport, various papers, a receipt of registration fee payment; foreign citizens need to provide a certified passport translation as well,” Shalaev said.

Of course, just registering a company will not be enough. You need to get a license for selling alcohol, rent a place for your café, add it to the commercial register, then get all necessary permits from sanitary and fire inspections, as well arrange for garbage disposal, Shalaev added.

“The legal framework is very similar to that in Greece,” Iliadis says. “The Russian requirements gradually develop to European standards. Of course, like in Greece, there are still some outdated rules, such as having a separate room for peeling potatoes, but inspectors don't take it seriously. No one terrorizes you every day without reason. If you serve good food and your clients sense it, they will become regulars and inspectors will not come often if they don’t receive complaints.”

Krajinovic, who has been running his restaurant since 2012, agrees. “There are no problems. If you follow all the necessary requirements and use fresh products, no one will bother you asking for money,” he says. “A good thing here is that 3-4 months after starting a business you know how much tax you will need to pay, as opposed to Europe, where the percent might change. Here we pay 15-20 percent of our profits.”

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