COFFEE SHOP BUSINESS PLAN SAMPLE TEMPLATE
Most people within the adult age in our country today and also around the world, start their day with a cup of coffee.
If this is the case, then there must be some money to be made in this coffee business don’t you agree?
Coffee is the fastest growing industry in the world. There is no way you can regret starting your own coffee shop as far as you are delivering good coffee and customer services.
If you are like some people and you have been thinking for a while how you can cash in on this coffee consumption business and make some money for yourself, worry no more, the solution is here.
A coffee shop is an answer. If you have thought about opening a coffee shop and wished for an article that could treat the subject for you, you don’t have to look any further.
Opening a coffee shop can be a very good stream of income for the coffee shop owner. Here are some guidelines to follow to open a coffee shop.
Before we get into the guidelines, it is important to point out that there are different types of coffee shops that one can open. They are:
- The Mobile Coffee Food Truck
- The Coffee Kiosk
- The Coffee Shop with Seating
- The Coffee Shop with Seating and Drive-Thru
For each type of coffee shop that you wish to open, there are primarily three ways or methods to achieve that goal. They are:
· Through a Coffee Franchise
This method involves buying a franchise. In this way, the coffee company which would become the franchisor and you the franchisee would set up the coffee shop for you in a location of their choice for a franchise fee.
· Through Buying an Existing Coffee Shop
In this method, you seek out a coffee shop for sale. In this method, there are some things to be considered, such as the location of the coffee shop and its profitability.
· Through Starting your own Coffee Shop
This method involves starting out your own coffee shop from the scratch. In which you would have to choose a name and do the necessary business registration. This method takes the most effort, offers the most flexibility and indeed the greatest upside.
These are the basic methods through which you can set up your coffee shop. For all these, the fundamentals remain the same regardless of whatever type of coffee shop you choose and the method you decide to follow.
Here is a sample business plan for starting a coffee shop.
1st Step: Get a Business Plan
To determine the success of the coffee shop, the first step to take is to get hold of a well laid out coffee shop startup business plan detailing your understanding of the coffee shop business, your understanding of your target market, your understanding of processes and strategies and your growth projections.
2nd Step: Choose a Location
Location is everything, the success and/or failure of the coffee shop will have a lot to do with the location of the coffee shop. The most important thing to consider in choosing a location for the coffee shop would be visibility and accessibility.
The coffee shop has to be in a location where it would be most visible and accessible to your potential customers. The next point to consider in choosing the location would be the cost of rent.
After due consideration for rent and other expenses, would the coffee shop still be profitable in that location? This is an important question to answer.
Competition should also be considered. The coffee shop, being a new enterprise should not be located in a place where there is stiff competition. Typical locations where there is usually stiff competition are malls.
3rd Step: Procure Equipment for your Coffee Shop
The next step is to procure the necessary and required equipment for your coffee shop. Some of the equipment required for your coffee shop would be such equipment as;
- Espresso Machine
- Coffee Brewer
- Coffee Grinders
4th Step: Procure your Ingredients
You would need to procure the required ingredients for making your coffee. The cost for procuring ingredients would be a recurring one because you would be buying ingredients for making your coffee over the lifetime of the coffee shop.
The required ingredients are:
- Drink ingredients such as syrups
5th Step: Create your Coffee Shop Floor
Create a coffee shop floor that promotes good ambiance and comfort for the customers and the workers.
6th Step: Employ Workers
When you have your coffee shop floor setup, the next step is to employ workers for the coffee shop.
7th Step: Watch your Expenses
To determine the success of the coffee shop you need to watch your expenses, expenses such as wages and worker’s compensation, utilities, insurance, and supplies should be kept at their minimum.
Take control of your life and start your own business. A coffee shop business would be a good and profitable business if run properly, as there is an already existing market that the operator can leverage on since he/she is not creating any new product aside what is already in the market.
DRIVE-THRU COFFEE SHOP IDEAS & OPPORTUNITIES
There is a growing preference drive-through coffee kiosks among entrepreneurs. This is because it is a unique business model that requires no substantial financial commitments. Drive-thru coffee kiosks meet the coffee needs of people on the go.
We will consider the process of starting a drive-thru coffee stand business. This will help aspiring entrepreneurs achieve their goals/targets.
People do not always have the luxury of time to enjoy espresso beverages. A drive-thru coffee kiosk provides a perfect alternative. For such a business to thrive, it’s best to locate this kiosk at a strategic location.
Advantage of a Drive-Thru Coffee Kiosk to an Established Shop
There are advantages attached to establishing a drive-thru coffee shop. The most evident being the lower start-up costs required. Larger coffee shops will require greater investments. However, a drive-thru coffee shop when run properly can lead to an expansion in profitability, leading to the establishment of more drive-thru coffee kiosks in multiple locations.
Answering the “Where” Question
Whenever a business idea comes to mind including the topic under discussion, one of the first questions that come to mind is where it will be located. A drive-thru coffee kiosk business thrives on location. A good location attracts greater patronage while the reverse is the case for a not-so-good location. So , what makes a good location?
- Conduct a Research
In your bid to find the perfect location for your drive-thru coffee shop, consider studying traffic situations at different times of the day. Also find other coffee shops around to check if there are long lines of waiting customers. If there are, then such an area may be perfect for locating your drive-thru kiosk.
- The Types of Business Around
This is important in helping you choose a favorable location. Areas surrounded by institutions such as a school, hospital, or a business park, will make for a good location. It means people can easily walk to your kiosk or drive in any time of the day. The more busy an area is, the better it is for a starting a drive-thru coffee kiosk.
- Target a Location that Can Attract at Least 200 Cars a day
There are running expenses when operating a drive-thru coffee kiosk. This includes rent to be paid. To stay afloat, you need to choose an area that will attract at least 200 car visits in a single day. After conducting a research, you are likely to find more than one of such locations.
Starting a successful drive-thru coffee kiosk depends on having a good understanding of your target market. In trying to understand your target market, you will need to know who they are and their dominant schedule. Such include knowing if they are students or not, if they are mostly workers or not, their social class etc. These details enhance your menu and types of services provided.
How do your customers spend most of their day? Where is their workplace? Will they be headed into town for work or leaving town? These questions are necessary to provide relevant services.
Getting a Coffee Stand
Getting a coffee kiosk itself does not require huge investments. There are options such as a new stand; used stands as well as building one from scratch. Whichever option you choose is up to you. However you need to check with your city’s building department to ensure you work within stipulated guidelines.
The Coffee Kiosk Business Plan
To start your coffee drive-thru kiosk on a solid footing, you need to have a plan. Your business plan needs to address all the present and future demands of the business. You can also use your plan to get access to loans too. This should contain vital aspects of your business such as your product offering, business structure, target market, expansion plans (if any), competitive advantage and profit potential/sales forecast.
Equipment for your Drive thru Coffee Kiosk
Equipment are essential for the smooth-running of your coffee-kiosk business. Depending on your menu, some of the equipment include an espresso machine, regular coffee grinder, espresso grinder, coffee brewers and air-pot, iced tea brewers and dispensers, hot water dispenser, refrigeration equipment and ware washing equipment and several more.
When purchasing these equipment, it is important to be on the lookout for quality. This may cost a bit more but will be durable and serve the purpose. Trying to cut cost may lead to the purchase of equipment of inferior quality. These may just serve for a while before packing up, incurring unnecessary costs in the end.
Controlling your Inventory
In order to cut down on waste, you need to keep a tight control on inventory. This saves you thousands of dollars every month. On the surface, wastes may seem insignificant but can add up to be substantial when you keep track. In a bid to boost sales and overall income, why not eliminate these wastage altogether? How can you control your inventory? You can achieve this through;
There are minimum standards that must be met when running a drive-thru coffee kiosk. Training provides the knowledge required to cut down on wastage. Your staff will also need to undergo such training. This is because they will be mainly responsible for serving your customers. This saves you money as the perfect portions are poured and waste is limited or eliminated altogether.
Starting a drive-thru coffee kiosk business is a profitable venture you can try out today. However this comes with a lot of work and procedures. It is important that you have the interest to serve coffee lovers their favorite beverage.
While making your customers happy, you will also create a decent income for yourself that can increase with time as the business grows.
COFFEE SHOP BUSINESS PLAN EXAMPLE
Coffee shops have grown to become indispensable to the lives of many and also, there are those who have become addicts and who cannot start their day without having a cup or cups of coffee, and those who take coffee for recreational purposes.
Business plans are usually a prerequisite for acquiring loans or for attracting investors to commit their resources to any business.
This sample will cover all the important sections a good coffee shop business plan should have.
– Executive Summary
– Our Objectives
– Products and Services
– Our Keys to Success
– Financial Forecast
– Startup Funding
– Company Ownership
– Market Analysis Summary
– Source of Income
– Payment Options
– Publicity and Advert Strategy
Set to become a refuge from the daily stress and grind of the corporate and business world Coffee Star LLC is a hideout for people needing a cosy atmosphere for either coffee meetings or catching up with acquaintances or for those who want to enjoy our premium coffee services.
With its operational base in New Jersey, Coffee Star is set to provide unparalleled services to our diverse client base with our utmost goal being the full satisfaction of our esteemed clients.
Our objective at Coffee Star LLC is to be a top-notch brand in the coffee business market. To have a reputation among our client base for excellent coffee and the best service delivery, and to build customer trust in our ability to provide unbeatable services, thereby leading to customer loyalty.
PRODUCTS AND SERVICES
At Coffee star LLC, our services include using the very best of ingredients to prepare the best coffee.
Also on offer in our coffee shop will be Cappuccinos, beverages, Espresso, tea, among other assorted type of drinks and beverages. We will also be making available coffee bean itself for clients who might not want to take their coffee in public. Also on offer at our coffee shop is the option of having caffeinated or decaffeinated coffee depending on the choice of the client.
OUR KEYS TO SUCCESS
We intend to ensure provide our staff with the very best of training available to the coffee shop industry. This knowledge will always be updated to meet up with industry best practices.
Also, because we know the role good advertising plays to the success of any business venture, this will be a tool we would exploit in spreading the news about the services we offer.
COFFEE SHOP BUSINESS PLAN FINANCIALS
At Coffee Star, we have an annual financial growth forecast of 30% translating to over $40,000 in profits in our first year of operations. From commencement of business operations, to the next 5 years, we have a projected growth forecast of $1,500,000.
Funding for Coffee Star LLC will come from two main sources which include equity investments sourced through savings. This will amount to about 40% of the total amount required for the startup funding.
The other 60% of funding will be sourced through the debt financing option. This loan will be sourced from a bank of good repute and one the founders of Coffee Star are clients to.
Coffee Star is registered and licensed as a Limited Liability Company, with Mr. Chappell Williams having the largest shareholding of over 62%, his associate Mr. Gary Wilkes with 26% and his Sister Michelle Gardner having a 12% stake.
MARKET ANALYSIS SUMMARY
It has been observed that coffee shops near offices or business establishments (mostly in dense neighbourhoods) have the most patronage. During the brief break period, coffee shops in these locations are packed full with clients needing fast service. In the light of this, Coffee Star LLC will be situated in a dense location having all the characteristics of these successful coffee shops and even providing superior service delivery to its clients.
SOURCE OF INCOME
Our income source at Coffee Star LLC is through the sale of coffee and other coffee related beverages such as Cappuccinos, Espresso, tea, among other beverages including other signature drinks we will be providing. The sale of these products will form a bulk of where our primary source of income is generated.
At Coffee Star, we will be making available to our esteemed clients multiple payment channels to eliminate the difficulty of having to go through a lot of procedure for payments to be made. These payment options are created in a bid to ease client’s worries and enable them relax to the world class service we provide them.
Among the payments options available to clients are payments through cheques, mobile money, POS, online bank transfer which are currently the available options but with the possibility of expanding to other areas as the need may arise.
PUBLICITY AND ADVERT STRATEGY
Coffee Star LLC plans on deploying all means publicity and advertisement to attract new clients to its services. Such include the use of the internet; we will be building a website which will have all the products and services on offer at our coffee shop.
There will also be links connected to several social media sites to create awareness. A click on any of these links will immediately redirect the person to our website.
Also, we will be placing adverts at the local TV and radio stations, and also the use of fliers and banners placed at strategic locations such as offices to advertise our service. Furthermore, billboards bearing our products and services will be placed at strategic locations which are very visible to enable our services to be seen by a wide segment of society.
This is a coffee shop business plan sample containing the most basic information that must be included in any worthwhile plan.