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Coffee Shop Business Plan (How to Write & Template)


Starting a coffee shop can be highly profitable, but it requires a well-crafted business plan to guide you along the way. Your business plan acts as a roadmap, outlining the necessary steps for your coffee shop’s success. In this article, we’ll explore the process of creating a comprehensive coffee shop business plan.

We’ll provide you with sample sections and user-friendly templates that highlight the key elements of a coffee shop business plan. From developing your concept to conducting market research, analyzing competitors, and establishing a solid financial strategy, this article will equip you with the essential knowledge to create or enhance a business plan for your coffee shop venture.

What is a Coffee Shop Business Plan?

A coffee shop business plan is a detailed document that outlines the intended activities, goals, and strategies for a new or existing coffee house. It serves as a roadmap for successfully establishing and running a coffee shop business.

How to Write a Coffee Shop Business Plan (Step-by-Step)?

Step 1: Gather the Necessary Information

Before you begin writing your coffee shop business plan, gather the following crucial information to lay a strong foundation:

  • Define your target market for the coffee shop.
  • Identify your unique selling proposition (USP) that sets your coffee house apart.
  • Determine your pricing strategies for different menu items.
  • Research and analyze your competition in the coffee shop industry.
  • Calculate the startup costs and ongoing expenses for your coffee shop.
  • Develop a marketing and promotion strategy for your coffee offerings.
  • Project your revenues and profitability for the coffee shop.
  • Outline your long-term growth plans for the coffee shop business.

Step 2: Evaluate Your Business Model

If your coffee business adopts an innovative or unique business model, evaluating its potential for success is essential before proceeding with your business plan. Tools like the Business Model Canvas can help analyze and refine your business model. However, suppose your coffee shop follows a traditional model already existing in the market, such as a neighborhood café or specialty coffee shop. In that case, you can proceed to the next step and begin writing your coffee shop business plan.

Step 3: Utilize a Coffee Shop Business Plan Template

Create your coffee shop business plan using a pre-designed template that includes the essential sections. This template will help structure your plan effectively. Ensure that your plan includes the following key components:

  1. Executive Summary: Provide an overview of your coffee shop and its objectives.
  2. Business Description: Describe your coffee offerings, target market, and unique features.
  3. Market Analysis: Conduct a thorough analysis of the coffee shop industry, including market trends, customer preferences, and competitor analysis.
  4. Marketing and Sales Strategy: Outline your marketing and sales initiatives to attract customers and promote your cafe or coffee shop.
  5. Operations Plan: Detail the operational aspects of your business, including location, menu design, staffing, and supply chain management.
  6. Financial Plan: Present your financial projections, including startup costs, revenue forecasts, and profitability analysis.
  7. Management and Organization: Describe the organizational structure of your coffee shop, key team members, and their roles.
  8. Risk Assessment: Identify potential risks and challenges affecting your coffee business and propose mitigation strategies.

Step 4: Regularly Review and Update Your Plan

A coffee shop business plan is a dynamic document that should be regularly reviewed and updated. In the initial months of operating your coffee business, review and update your plan frequently to reflect any changes, refine calculations, and adjust assumptions. Once your business reaches a stable point and achieves profitability, revisit your plan at least once a year to ensure it remains relevant and aligned with your long-term objectives.

Key Points to Remember When Creating a Coffee Shop Business Plan
  • Be clear and concise: Write your coffee shop business plan in a straightforward manner, focusing on the essential details and key points.
  • Utilize financial data: Include accurate financial projections and calculations in your plan. Use reliable data to support your revenue forecasts and expense estimates.
  • Anticipate challenges: Identify potential risks and challenges that your coffee business may encounter. Develop contingency plans and strategies to mitigate these risks effectively.
  • Regularly review and revise: Keep your coffee shop business plan up to date by reviewing and revising it regularly, especially during the initial stages of your business. Adjust your plan to reflect changes in the market, industry trends, and internal factors.
  • Involve your team: Engage your team in the process of creating and refining your coffee shop business plan. Their insights and perspectives can contribute to a more comprehensive and effective plan. Consider fostering team commitment by implementing incentive programs or profit-sharing initiatives.
  • Embrace long-term perspective: A coffee shop business plan is a long-term document. It should be periodically reviewed and updated to ensure its relevance, alignment with your objectives, and ability to adapt to changing circumstances in the coffee industry.

Following these steps and guidelines, you can create a comprehensive coffee shop business plan that establishes the groundwork for your success in the industry.

Importance of Writing a Coffee Shop Business Plan

Creating a coffee shop business plan holds significant importance in establishing and operating a successful café. Here are several reasons why developing a comprehensive business plan is crucial:

  1. Transforming Ideas into Action: A business plan helps you turn your coffee shop concept into a practical and actionable plan. It provides a structured framework to articulate your vision and define the necessary steps to bring it to life.
  2. Strategic Focus: Developing a business plan allows you to work on the strategic aspects of your coffee shop business. It enables you to go beyond day-to-day operations and dedicate time to designing and improving your overall business strategy.
  3. Validating Assumptions: A coffee shop business plan serves as a benchmark to evaluate the accuracy of your assumptions. Over time, you can review the plan to assess the validity of your projections and understand the progress and growth of your café.
  4. Translating Vision into Action: Writing a business plan enables you to translate your coffee shop vision into a tangible project and actionable roadmap. It helps you outline specific goals, strategies, and timelines for achieving success.
  5. Evaluating Viability and Refinement: Through a business plan, you can assess the feasibility and viability of your coffee business idea. It prompts you to analyze potential challenges and areas that require refinement, allowing you to make necessary adjustments to increase your chances of success.
  6. Risk Assessment: Creating a coffee shop business plan enables you to evaluate the risks associated with your venture. By identifying potential obstacles and developing contingency plans, you can mitigate risks and make informed decisions.
  7. Encouraging Specificity: Writing a business plan forces you to be specific and detailed in your approach. It compels you to address critical questions and gaps in your knowledge, reducing the chances of overlooking crucial aspects of your coffee house.
  8. Continuous Improvement: Even if you already operate a coffee shop, having a business plan is essential. It allows you to reassess your current operations, identify areas for improvement, and set new goals for growth and success.

A business plan serves as a roadmap, guiding you through the various stages of your restaurant business journey. It helps you remain focused, adaptable, and prepared for challenges while increasing your chances of achieving long-term success.

Coffee Shop Business Plan Template

Coffee Shop Business Plan Template

Executive Summary

The executive summary provides a brief yet informative overview of your coffee shop business plan, highlighting the following key elements:

  • Mission statement, vision, and values: Clearly state the purpose and values that drive your coffee shop, emphasizing its commitment to providing exceptional coffee and a welcoming atmosphere.
  • Coffee shop concept and unique selling points: Describe your coffee shop concept and what sets it apart from competitors, whether it’s the use of specialty beans, a focus on sustainable practices, or a cozy ambiance.
  • Factors for success: Explain why your coffee shop is positioned for success, considering factors such as the growing demand for specialty coffee, a loyal customer base, or a prime location in a bustling neighborhood.
  • Implementation plan: Provide a high-level overview of the strategic steps required to establish and operate your coffee shop, including location selection, interior design, menu development, and marketing strategies to attract and retain customers.
  • Financial projections: Discuss the projected costs, revenue forecasts, and potential profitability of your coffee shop, highlighting the potential return on investment for stakeholders.

The executive summary acts as a captivating introduction to your coffee shop business plan, enticing readers to explore the detailed sections that follow and showcasing the unique value your coffee shop brings to the market.

Description of the Coffee Shop

In this section, provide a concise and informative overview of your coffee shop, highlighting its essential elements:

  • Mission statement and vision: Clearly state the purpose and goals of your coffee shop, focusing on providing a warm and inviting space for customers to enjoy quality coffee and a relaxing atmosphere.
  • Business structure: Specify the legal structure and organizational setup of your coffee shop, whether it’s a sole proprietorship, partnership, or corporation.
  • Coffee shop concept: Define the type of coffee shop you’re establishing, including its name, style, and overall ambiance. Highlight any specific themes or branding elements that contribute to its unique identity.
  • Location: Describe the chosen or potential location for your coffee shop, emphasizing its advantages such as high foot traffic, proximity to target customers, or a bustling neighborhood.
  • Menu: Outline the variety of coffee beverages and complementary food items on your menu. Highlight any specialty or signature items that showcase your coffee shop’s distinct offerings.
  • Unique Selling Points (USPs): Highlight the unique features and experiences that set your coffee shop apart from competitors. This could include specialty coffee beans, artisanal brewing methods, knowledgeable baristas, or a focus on community engagement.

By presenting these essential details, you create a compelling and concise description that captures the essence of your coffee shop concept and appeals to potential investors, partners, and customers.

Market Research and Competition Analysis

Market Overview

Conducting comprehensive market research is crucial to understanding the coffee shop industry and your target market. Focus on the following aspects:

  1. Target Audience: Define your ideal customer profile based on demographic factors such as age, lifestyle, preferences, and coffee consumption habits. Understand their motivations and preferences when it comes to choosing a coffee shop.
  2. Market Needs: Identify the specific needs and desires in the coffee market that your shop aims to fulfill. Highlight how your concept and offerings align with those needs, providing a unique value proposition to customers.
  3. Market Size: Estimate the potential customer base within your chosen location or geographic area to gauge the market size and growth opportunities for your coffee shop.
  4. Market Trends: Stay updated on the latest industry trends, such as specialty coffee, sustainable practices, alternative brewing methods, and increasing demand for premium coffee experiences. Adapt and capitalize on emerging market trends to stay competitive.

Competition Analysis

Thoroughly analyze your competition to gain insights into their strengths, weaknesses, and strategies. Consider the following:

  • Competitor Identification: Identify both direct and indirect competitors in your area, categorizing them based on their coffee offerings, target market, pricing, and positioning.
  • Revenue and Customer Traffic: Estimate the revenue potential and customer traffic of competing coffee shops to gauge their market share and profitability.
  • Menu and Pricing: Evaluate competitors’ menus and pricing strategies, considering the variety of coffee options, quality of beans, additional offerings, and pricing structures. Assess their pricing relative to the perceived value and quality of their coffee.
  • Marketing and Branding: Study competitors’ marketing activities, including coffee shop branding, online presence, social media engagement, and customer loyalty programs. Identify their strengths and weaknesses in these areas to differentiate your coffee shop.
  • Unique Selling Points: Identify the unique advantages and selling points of your coffee shop, such as specialty brews, personalized service, cozy ambiance, local partnerships, sustainable sourcing, or a commitment to community engagement.

By conducting market research and competition analysis, you can gain valuable insights that shape your coffee shop’s positioning, menu offerings, pricing strategies, marketing efforts, and unique selling points. This information enables you to make informed decisions and create an effective business plan.

SWOT Analysis For Your Business Concept

Conducting a SWOT analysis allows you to identify the internal strengths, weaknesses, as well as external opportunities and threats that may impact your coffee shop. Here’s a table format to summarize these factors:


  • Highly skilled and knowledgeable baristas
  • Exceptional quality coffee beans and brewing techniques
  • Cozy and inviting atmosphere
  • Unique and innovative menu offerings
  • Strong emphasis on sustainability and ethically sourced ingredients
  • Convenient location with high foot traffic
  • Strong customer loyalty and positive word-of-mouth
  • Innovative coffee drinks


  • Limited initial capital for investment and expansion
  • Limited space for seating and potential revenue generation
  • Relatively unknown brand in a competitive coffee industry


  • Increasing demand for specialty coffee and unique coffee experiences
  • Collaboration opportunities with local businesses, suppliers, and other coffee shops
  • Expanding customer base through partnerships with nearby offices, universities, or residential areas
  • Online ordering and delivery services to reach a wider audience
  • Developing unique coffee and food products


  • Intense competition from many coffee shops in the area
  • Changing consumer preferences and demands
  • Economic fluctuations that may affect customer spending habits
  • Regulatory changes impacting the restaurant industry

Example of SWOT analysis for fast food restaurants

Conducting a thorough SWOT analysis, you can leverage your strengths, address weaknesses, capitalize on opportunities, and proactively mitigate potential threats. This analysis helps you develop strategies that maximize your coffee shop’s potential for success.

Investment Plan (Cost Analysis)

In this section, you will outline the costs associated with the initial investment and the spending plan for the first year of operation. These costs can be divided into two main groups: startup costs and operating costs.

New Business Costs (One-off to Start)

  1. Coffee Shop Location: Include expenses for securing a suitable space for your coffee shop, such as lease deposits, rent advance payments, or property acquisition costs.
  2. Renovation and Interior Design: Account for costs related to renovation, construction, interior design, and any necessary modifications to adapt the space for your coffee shop.
  3. Equipment and Machinery: List the essential equipment needed for your coffee shop, including coffee machines, grinders, espresso makers, brewing equipment, refrigerators, freezers, and POS systems.
  4. Furniture and Fixtures: Include costs for tables, chairs, counter/bar stools, lighting fixtures, shelving units, storage cabinets, and decor.
  5. Technology and Software: Account for costs associated with POS systems, computer hardware, software licenses, website development, online ordering platforms, and digital signage.
  6. Licenses and Permits: Include expenses for obtaining necessary licenses, permits, and certifications required to operate a coffee shop in your location.
  7. Initial Inventory: Estimate the cost of purchasing initial coffee beans, other beverage ingredients, food items (if applicable), packaging materials, and disposable items.
  8. Marketing and Promotion: Allocate a budget for marketing materials, signage, menus, website development, social media campaigns, advertisements, and promotional events.
  9. Professional Services: Include expenses for legal and accounting services, consulting fees, and any necessary professional advice.

Operating Costs (Ongoing Expenses)

  1. Rent or Lease: Account for monthly rent payments for the coffee shop premises.
  2. Utilities: Include costs for electricity, water, gas, internet, and any other utility services required for the operation of your coffee shop.
  3. Supplies: Estimate ongoing expenses for coffee beans, tea leaves, milk, other beverage ingredients, food items (if applicable), paper products, cleaning supplies, and general consumables.
  4. Staff Wages: Calculate wages or salaries for your coffee shop staff, including baristas, servers, kitchen staff, and managerial positions.
  5. Insurance: Include costs for insurance coverage, such as general liability insurance, property insurance, and workers’ compensation insurance.
  6. Marketing and Advertising: Allocate a budget for ongoing marketing efforts, including digital marketing campaigns, social media advertising, local promotions, loyalty programs, and partnerships.
  7. Maintenance and Repairs: Account for regular maintenance, repairs, and servicing of equipment, machinery, and the premises.
  8. Miscellaneous Expenses: Include other miscellaneous expenses such as bank fees, accounting software subscriptions, professional association memberships, and unexpected contingencies.
  9. Taxes and Licenses: Estimate the taxes, fees, and licenses required to operate your coffee shop in compliance with local regulations.

Regularly review and update these costs to ensure accuracy and monitor cash flow projections. By understanding and planning for startup costs and ongoing operating expenses, you can effectively manage your coffee shop’s finances and make informed decisions for long-term success.

Financial Forecast

The financial forecast for your coffee shop encompasses three important components: the projected Profit and Loss Statement (P&L), break-even analysis, and sensitivity analysis. These elements provide insights into your shop’s revenue, expenses, profitability, and financial viability. Here’s an overview of each element:

Profit and Loss Statement (P&L)

  • Estimate your projected revenue based on factors such as the shop’s size, location, target market, and pricing strategy.
  • Calculate the cost of goods sold (COGS) by considering the cost of coffee beans, other ingredients, packaging materials, and beverages required for your menu.
  • Deduct COGS from revenue to determine the gross profit, which covers operating expenses.
  • Include fixed and variable operating expenses such as rent, utilities, wages, marketing, and insurance.
  • Calculate the net profit or loss by subtracting total operating expenses from the gross profit.

 Example of the easiest way to prepare a projected profit and loss

Break-even Analysis

  • Identify fixed costs that remain constant regardless of sales volumes, such as rent, utilities, insurance, and other overhead expenses.
  • Determine variable costs per unit sold, including coffee beans, milk, packaging materials, and direct labor costs.
  • Calculate the contribution margin, which represents the revenue remaining after subtracting variable costs from sales.
  • Divide total fixed costs by the contribution margin to determine the break-even point, indicating the number of units (cups of coffee or orders) needed to cover expenses.

Sensitivity Analysis

  • Conduct a sensitivity analysis to assess the impact of negative scenarios on your coffee shop’s turnover and profit.
  • Adjust critical variables, such as sales volume or pricing, to evaluate the potential effects on financials.
  • Consider scenarios like a 50% decrease in turnover for a specific period and analyze the resulting impact on profitability.

Fast food business plan - example of restaurant sensitivity analysis

Coffee shop owners should regularly review and update their financial forecasts to track performance, make informed decisions, and ensure the financial success of their coffee shop business. By utilizing these elements, you can assess the economic feasibility and profitability of your business and make adjustments as needed to achieve long-term success.

The Crew


The founders of your coffee shop play a crucial role in shaping its vision, strategy, and overall success. This section provides essential information about the founders when seeking investors or partners. Include the following details:

  • List of Founders: Clearly state the names and roles of each founder involved in the coffee shop venture.
  • Experience: Highlight the relevant industry experience and expertise of each founder. Describe their background, skills, and knowledge that contribute to the coffee shop’s success. Emphasize any notable achievements or successes they have had in the past.


The employees you hire are vital for your coffee shop’s smooth operation and success. Consider the necessary positions for efficient functioning and divide them into different roles. Provide the following information:

  • List of Job Titles: Outline the various job titles or positions required in your coffee shop, such as baristas, servers, cashiers, kitchen staff, and managerial positions.
  • Duties: Describe the specific responsibilities and duties associated with each job title. Clearly outline the expectations for each role, including coffee preparation, customer service, order taking, food handling, cleaning, inventory management, and any other relevant tasks.
  • Compensation: Specify the remuneration or compensation for each position, including wages, salaries, tips, bonuses, or any other benefits provided to the employees.
  • Employment Type: Indicate the employment offered to your employees, whether full-time, part-time, or seasonal. Consider any legal or regulatory requirements related to employment contracts in your jurisdiction.

By outlining the founders’ experience and the roles and responsibilities of your employees, you showcase a capable and dedicated team that will contribute to the success of your coffee business. This information demonstrates your commitment to building a skilled and knowledgeable workforce.

Coffee Shop Marketing Plan

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Your sales and marketing plan should encompass various strategies to promote your coffee shop and attract customers. Key components of your plan should include:

  • Brand Building: Establish a strong brand identity through a unique logo, color scheme, and consistent messaging that reflects your coffee shop’s values and atmosphere.
  • Online Presence: Create an engaging and user-friendly website that showcases your coffee shop’s concept, menu offerings, and any special promotions. Utilize social media platforms to connect with your target audience and share engaging content.
  • Customer Engagement: Implement loyalty programs, customer feedback systems, personalized communication and tableside ordering to enhance customer experience and foster repeat visits.
  • Offline Customer Acquisition: Utilize local print media, community events, collaborations with neighboring businesses, and participation in local festivals or fairs to attract customers in your area.
  • Online Customer Acquisition: Utilize social media advertising, search engine optimization (SEO), online directories, and targeted online ads to reach and engage with potential customers in your local community.
  • Community Involvement: Build relationships with local organizations, schools, or charities through sponsorships, donations, or participation in community events to create goodwill and increase brand visibility.
  • Special Promotions: Offer limited-time promotions, discounts, or special events to attract new customers and create buzz around your coffee shop.
  • Unique Selling Points: Highlight your coffee shop’s unique selling points, such as specialty brews, artisanal pastries, sustainable sourcing, or a cozy ambiance, to differentiate yourself from competitors.

Continuously monitor and evaluate the effectiveness of your marketing strategies, adapting and refining them based on customer feedback and market trends. By implementing a comprehensive marketing plan, you can effectively promote your coffee shop, attract new customers, and build a loyal customer base for long-term success.

Key Takeaways

  • Crafting Your Coffee Shop’s Identity: Clearly define your coffee business by articulating its concept, target audience, menu offerings, coffee shop slogans, ambiance, and distinctive features. These elements will set you apart from competitors and entice your desired customer base. Vital Components of Your Business

  • Blueprint: Ensure that your business plan encompasses crucial sections like an executive summary for restaurant, a coffee shop description, market analysis, financial projections, team structure, marketing strategy, and competitive advantages. Each of these elements plays a pivotal role in ensuring the triumph of your coffee shop. Embrace Ongoing Planning and

  • Adaptation: Make it a habit to regularly assess and adjust your business plan to keep pace with shifts in the market, industry trends, and evolving customer preferences. Stay competitive and meet the desires of your target clientele through continuous planning and enhancement. Tap into

  • Expertise: Don’t hesitate to seek guidance from seasoned coffee shop owners or consultants who can offer invaluable insights, refine your concepts, and ensure that your business plan is comprehensive and well-informed. Routine Business

  • Plan Reviews: Schedule periodic evaluations of your business plan, particularly during the initial stages of your coffee shop’s operation. Monthly reviews will help you monitor progress, identify areas for enhancement, and make necessary refinements. As your coffee shop establishes itself, conduct an annual review.

  • A Living Document: Remember that a business plan is not static; it’s a dynamic document that evolves with your coffee shop. Learn from your experiences, adapt your strategies based on real-world feedback, and update your plan accordingly. Embrace flexibility and adaptability to navigate the ever-changing landscape of the coffee industry effectively.

Dominik Bartoszek

Dominik Bartoszek

8+ years Digital Marketer driven by data & AI. Helping restaurants grow more through online orders.

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