Are you about starting a coffee shop? If YES, here is a complete sample coffee shop business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a coffee shop. We also took it further by analyzing and drafting a sample coffee shop marketing plan template backed up by actionable guerrilla marketing ideas for coffee shops. So let’s proceed to the business planning section.
Table of Content
- Executive Summary
- Market Analysis
- SWOT Analysis
- Financial Projection
- Marketing Plan
- Marketing ideas & Strategies
Different Strokes with Coffee
We all have preferences as to how we’d like our coffee drinks. Whilst some say its black coffee with no sugar, or cream; yet others like it really creamy. Whatever the preference is, the truth remains that coffee sure does have a distinctive taste and smell that gets one hooked to it. One of the reasons besides the relaxing and therapeutic effect coffee has on the human body, most people find it really reliable when the need to stay up late either to watch some favorite movie or soap, or stay up late and study for an upcoming exam. Thanks to the caffeine level in it which helps keep one wide awake.
- The Coffee Business
There are several business sides of the coffee beans. Whilst some folks are neck deep into the cultivation and harvesting of the coffee beans, yet others are into the processing and packaging of it. Furthermore, over the years, we have come to see that folks have even begun to make more money by engaging in the business of serving hot or cold coffee drinks. That is what has metamorphosed into the coffee shop business as can be found all over the world.
- Writing a Business Plan
Starting a coffee shop doesn’t sound a difficult task, however care have got to be taken so that one positions the business in a strategic place that is sure to attract an avalanche of coffee drinkers. Some true and fundamental factors have got to be considered in order to get it right.
One of this step is the putting together of a business plan. Writing a detailed business plan might not come easy. This is why it is important to get a template with which you will be able to draw yours up with. Care has to be taken to make sure that you dig and get the business plan that syncs with your type of business.
Conversely, if you think you have the wherewithal to hire a business consultant to help you whip a plan up, then that is fine. Otherwise you may want to make do with a template, which is as equally effective as the one a consultant writes. Here is a sample of a coffee shop business plan;
A FREE Sample Coffee Shop Business Plan Template
- Coffee Business Overview
Coffee business is one of the businesses that any entrepreneur can successfully start in the corner of a busy street or in a mobile shop without breaking the bank for cash. At the same time, big – time investors can also leverage on the high demand for coffee to set up their own coffee shops in strategic locations. Starbucks and Costa Coffee are some of the leading Coffee Business Companies in the world. For example; Costa Coffee™ operates about 1,755 coffee bars in the United Kingdom alone and about 1,106 outlets in 30 countries of the world.
Costa Coffee™ could grow their business big because coffee business is indeed a rewarding business venture, irrespective of the scale one intends to start out from. In other words; there will always be an available market for you.
Coffee shops / bars can be located in any part of town, as long as there are people living or working there. Essentially, coffee shops / bars are located in airports, sea ports, shopping malls, hotel lobby, railway stations, bus station, campuses, hospital lobby, sport centers, as well as in any public facilities.
There are different types of coffee drinks that you can find in a coffee shop. Some of them are cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.
Over and above, the turnover for an average coffee bar can be as high as 50% and above- that is why entrepreneurs who intend making good money from a business with less struggle open their own coffee shop by either starting their own coffee bar from the scratch or by buying franchise.
Sample Coffee Business Plan Template – MARKET ANALYSIS
- Market Trends
If you are conversant with Coffee business in the United States of America, you will quite agree that coffee consumption has shown steady growth over the years and from all indication, the growth is not going to plummet anytime soon. Coffee addicts would always go out of their way if possible to stop by a coffee shop to have a hot cup of coffee.
Typically, sales of coffee triple during winter season and in most cases small coffee bars struggle to meet the demand for coffees during this period. Over and above, those who run coffee shops don’t struggle to attract clients, especially if they are well positioned.
However, the idea of the ideal and prosperous coffee shop isn’t just about being well positioned; it is also about offering professional services that is able to cause an indifferent potential customer into a repeat and loyal coffee consumer.
Although there are limitations to how far we can go when it comes to marketing coffee and pastries in the airport but that does not stop us in improvising on ways to generate traffic at our coffee shop. Parts of the marketing and sales strategies that we will adopt are;
- Opening of Coffee bar in a grand style by serving free cups of coffee to all those who step into the shop.
- Ensure that we have different types of coffees at all times.
- Make use of attractive hand bills to create awareness and also to give direction to potential clients
- Position our signage / flexi banners at strategic places around the airport (subject to permission from the airport authority)
- Advertise our coffee shop on local travelling magazines and yellow pages.
Our Target Market
When it comes to selling coffee, there is a wide range of people that consume coffee and we don’t intend to place restrictions on the type of customers that we intend attracting to our coffee bar. This is why we invested time to create a coffee shop marketing plan. The fact that our coffee shop will be located inside the Los Angeles Airport facility means that our target market can essentially be categorized into 2 groups (Travelers and Airport Workers).
The people we intend selling our products to are;
- Corporate Executives
- Business People
- Sports Men and Women
- Government Officials
- Airport Employees
- Low class, middle class and high class consumers
Our Competitive Advantage
Going by the arrangement we met on ground, we are going to be one of the 2 coffee bars that will be in operation in the area around the airport where our coffee shop will be located. As a result, we are going to struggle less to make headway in the business. In essence, we have little or no competition.
We plan to run a standard coffee business which is why we hired one of the leading business consultants to work with us in setting up our coffee business. The business consultant we have hired has over 15 years of experience in the retail coffee industry and has successfully opened several coffee bars in major cities across the United States of America.
So far, he has been able to deliver on key areas and he will continue to work with us on market research, customer satisfaction surveys and to provide additional input into the evaluation of the new business opportunities as regard opening other outlets and selling franchises when the need arises.
We believe that with all these hard and detailed work that is being put in place, we shall no doubt be a force to reckon with when we eventually commence operation and open our doors to consumers who want to be given a run for their money.
Sample Coffee Shop Business Plan Template – SALES AND MARKETING STRATEGY
Coffee4All do not intend to spend heavily when it comes to marketing our products that is the reason why we decided to rent a shop in a location that attracts loads of traffics all through the calendar year.
The location of our coffee bar is strategically positioned to attract ample customers with little or no effort from our own part, which is why we do not make provisions for marketing and sales executives in our company’s structure. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeat sales from them;
- Position our greeters to welcome and direct potential customer
- Create a loyalty plan that will enable us reward our regular customers
- Position our flexi banners at strategic positions all around the airport facility
- Advertise our coffee shop on local travel magazines
- Partner with traveling agencies to refer their clients to our coffee shop whenever they are traveling via Los Angeles International Airport
Our Pricing Strategy
When it comes to fixing prices for the range of coffees and pastries we sell, we are going to ensure that we set pricing in line with what is available in the coffee industry. We are very aware that we have got to lower our price so that we will be able to attract customers like never before as we seek to gain recognition as newbies. When this is achieved, then bottom line is that our customers will derive real satisfaction when they consume our coffee and pastries
We also have plans in place to discount our coffees once in a while and also to reward our loyal customers with free cups of coffees.
- Payment Options
Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.
Coffee Shop Business Plan – Publicity and Advertising Strategy
When it comes to publicity and advertising, we have a low budget for it simply because our business is located in a place that can easily attract the numbers of customers we would need with little or no stress on our own part.
But for the fact that we hope to some day in the near future start selling our franchise, we have decided to create a budget for publicity and advertisement for the major aim of introducing our brand in the market place. Everything that we will do in this regard is geared towards communicating our brand.
Here are the platforms we intend leveraging on to promote and advertise our business;
- Place adverts on both print (travel magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations
- Engage in road show from time to time
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions around the airport
Generating Funding / Startup Capital for Coffee4All®
Coffee for all is a private business that is solely owned by Mrs. Kate Stevens and she does not have the intention of welcoming any external partners except immediate family members which is why she has decided to restrict the sourcing of her start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $60,000 (Personal savings $40,000 and soft loan from family members $20,000) and we are at the final stage of obtaining a loan facility of $80,000 from our bank. All the papers and document has been signed and submitted, the loan has been approved and any moment from now our account will be credited and we will be able to execute all the things that needs to be executed.
Coffee Shop Business Plan – Sustainability and Expansion Strategy
Our plans of establishing Coffee4All is basically to test – run the coffee business and we have decided to start our first outlet in a busy location – the Los Angeles Airport. Although we don’t have the intention of running chains of coffee bars in different airports, but we would be selling franchises in the nearest future. It is pertinent to state that we shall not allow our standard operating process to drop so that we do not lose our loyal customers.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Renting of Shop and remodeling the shop: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, electronic appliances, office appliances and coffee brewing equipment: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the airport facility: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Compilation of our list of products and detailed recipe: Completed
- Establishing business relationship with vendors – suppliers of all our needed raw materials: In Progress