Café Restaurant business plan for starting your own Business

If you are looking for a business that always generates good profit and there are no loss days in it, a café restaurant might just be the perfect business plan for cafe for you. This business plans for a cafe will walk you through all the aspects of starting and running a profitable business plan cafe restaurant. In this cafe business plan sample we will look at everything from the executive summary to the people and finances needed to start the cafe restaurant business plan. If you want to know how to do a business plan for a cafe, all you need to do is to read this document. You can also use this business plan for bank.

Executive Summary

2.1 The Business

Foodies Café will be a three-star café in Richmond, Virginia. It will be a 24/7 café that will offer all kinds of food and drinks all day and night, seven days a week. The restaurant will be registered and insured to provide the services as per the prevailing law.

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2.2 Management of Café Restaurant Business

Management is the most important thing in any sample business plan sample cafe restaurant. If you are opening a café, cafe restaurant business plan template needs to clearly point out who will be responsible for taking care of the management aspects of the business. In this café business plan doc the owner will act as the CEO of the restaurant. Managers will be hire to run the affairs of the business in three shifts a day.

2.3 Customers of Café Restaurant Business

If you want to know how to present business plan to investors, you need to have a clear idea of who will be the customer of the business. We are considering the following customers in this business plan for a Mexican restaurant.

  • Routine dine-in customers who need a tasty meal.
  • Local businesses that want arrangements for corporate meals.
  • People who need food and drinks for private gatherings.
  • Governmental organizations that want to arrange lunch or dinners.

2.4 Business Target

The next important thing that is a part of any restaurant cafe business plan is the business target. It is really not possible for a business to be fully successful if it does not have a preset target. The target needs to be ambitious but not too ambitious to be realistic. It also needs to be made clear in the business plan cafe restaurant whether the target is generating profits or expansion. The target of Foodies Restaurant will be to:

  • Become a renowned and trustworthy name in the local food market.
  • Offer all kind of meals to the customers with the highest level of customer satisfaction.
  • Expand the business to at least one more location within a year.
Cafe Business Plan - 3 Years Profit Forecast
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Company Summary

3.1 Company Owner

John Arryn will be the owner of Foodies Restaurant. He has worked as a chef in Hotel Selina for 10 years and knows quite well how to run the food business. His experience and connections will be invaluable for the business and will surely take it to new heights. There can be no better candidate for this startup business plan sample cafe restaurant.

3.2 Why the Café Restaurant Business is being started?

When writing a business plan for cafe template, it is very important to note why the business is being started. This gives the readers an idea of the motive behind the business, and they can understand the strategy at a better level. John is opening free restaurant cafe and bakery sample business plan cafe restaurant because he has a passion for making delicious food for people.

3.3 How the Café Restaurant Business will be started?

Now that we know why the café business is being started, the next ting that this free free sample cafe business plan needs to cover is how the business will be started. If you want to know <strong how to write a business plan for a café, this is a very important aspect.

Step1: Market Survey

The first and the most important thing to do before you implement an organic restaurant business plan, is to run a market survey. The aim of this is to get an idea of what the market wants. We need to start the business on something that is in high demand and low supply. There are always such things in the market and all that we need to do is to find the right one.

Step2: Getting Necessary Permissions  

As the café business is very closely linked with the health of the citizens, you cannot just go and start selling food. All the necessary permissions from the relevant authorities will be taken before the business can be started. John’s connections in the industry will make these steps easier.

Step3: Construction of the Café   

Once the format of the café has been decided and the necessary permissions have been granted by the authorities, the next step is to set up the business. A proper place will be rented/bought and the restaurant will be set up.

Step4: Going Online

Starting a business in this day and age without building an online presence will get you nowhere. As soon as the approval is granted by the authorities, we will set up a website and start making SEO effort so that the people looking for restaurants can know that we exist.

Step5: Promotion and Marketing

Marketing is also one of the most important factors deciding the success of any business. We will use all available methods of advertisement to make sure that the business is known to the people who are expected to be the customers.

Cafe Business Plan - Startup Cost
Start-up Expenses 
Research and Development$20,000
Expensed Equipment$56,000
Start-up Assets$366,000
Cash Required$369,000
Start-up Inventory$39,000
Other Current Assets$240,000
Long-term Assets$287,000
TOTAL ASSETS$1,301,000
Total Requirements$1,687,400
Start-up Expenses to Fund$386,400
Start-up Assets to Fund$1,301,000
Non-cash Assets from Start-up$1,706,000
Cash Requirements from Start-up$385,000
Additional Cash Raised$50,000
Cash Balance on Starting Date$35,000
TOTAL ASSETS$2,176,000
Liabilities and Capital 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$48,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,687,400
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$412,600
Total Funding$1,687,400
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    Deciding the services that a business is going to offer is one of the very important part of any business plan café sample. If you want to know how to start a business plan for a café, you need to finalize the services in the start or the business will fail.

    The services that we have selected for this café start up business plan are:

    Fine Dining

    The basic service provided by Foodies Restaurant will be fine dining. We will offer a range of food options from all over the world to the customers.


    Buffet services will be offered for the customers who want to have gatherings and corporate dinners.


    People who are not up for full-course meals, can enjoy the premium hi-tea offered by Foodies Restaurant.

    Off-Site Catering

    For the customers who do not need the services at the café but want them at their own property, we will offer food and catering off-site.


    Create a menu for your cafe and include prices for all items. Keep in mind extra things that may not appear on the menu list, such as specially ordered meals or unique sauces and indicate their price. Remember that you must also include a menu in a non profit cafe business plan.

    Marketing Analysis of Café Restaurant

    The next important thing that we need to consider in this business plan sample for café is the marketing analysis of the business. Anyone who needs to know how to write a cafe business plan needs to know that marketing analysis is the single ost important part of the process. No restaurant cafe business plan can be complete or successful without it.


    No matter how good of a marketing plan for cafe and restaurant business plan pdf you might have, it cannot be successful without marketing analysis.

    5.1 Market Trends

    Just like the sample business plan restaurant café, it is important to have a look at the market trends while making a cafe business plan template uk. All you need to do is to see how the demand and supply of the services you are going to offer have changed in the recent past.

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    5.2 Marketing Segmentation

    The next thing that you need to look into while making a café franchise business plan is the marketing segmentation. The marketing segmentation for Foodies Restaurant cafe business plan sample pdf is expected to be the following:

    Cafe Business Plan - Marketing Segmentation

    5.2.1 Private Customers

    The people who walk-in for a good meal or hi-tea will be the major market segment for the business.

    5.2.2 Corporate Customers

    The corporations working in the area will also be a customer of the business as they will hire the services for corporate events.

    5.2.3 Business Customers

    Small local businesses will also be our customers. They will be bigger customers as compared to the individual ones but smaller than the corporate ones.

    5.2.4 Government Agencies

    Government agencies who need a dinner or lunch for a group of people will also be a market segment for us.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Private Customers30%34,00035,00037,00039,00041,00010.00%
    Corporate Customers27%30,00032,00034,00035,00037,00010.00%
    Business Customers25%24,00026,00028,00030,00032,00010.00%
    Government Agencies18%16,00018,00020,00022,00024,00011.00%

    5.3 Business Target

    • To provide reliable and dependable event management services to the people of Miami.
    • To make partnerships with major corporations in the area and become their permanent event planners.
    • To make a brand in event management and planning that people can trust.
    • To start making profit within the first six months

    5.4 Product Pricing

    Our products will be priced above the already present businesses in the area. This is because, just like we did in the food delivery service business plan, we need to create a premium brand and charging more money is a part of the strategy for making one.

    Marketing Strategy

    If you want to know how do you write a business plan for a café, one of the most important things that you need to learn is the marketing strategy for the business. In this business plan for a cafe sample we will give you a basic sketch of that and then you can expand on it to make one that fits your cafe business plan example.

    Let’s have a look at the competitive analysis and sales strategy that we have devised for this business plan template for café.

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    6.1 Competitive Analysis

    • Market surveys have revealed that there is not even a single restaurant in the area that delivers all the services that we are offering.
    • People are generally unsatisfied with the level of service the competitors are providing in the area.
    • There has been a lot of demand for a new entrant in the industry for a very long time.

    6.2 Sales Strategy

    The next thing we need to complete the marketing strategy of this restaurant cafe business plan is the sales strategy. We have made the following sales strategy:

    • Three days of free meals will be offered to anyone who signs up for a membership of the cafe restaurant business plan.
    • Discounts will be offered to corporate, business, and government clients. This will act as an advertisement for the business.
    • Product prices will be kept low at the start to earn loyal repeat customers.

    6.3 Sales Monthly

    Cafe Business Plan - Sales Monthly

    6.4 Sales Yearly

    Cafe Business Plan - Sales Yearly

    6.5 Sales Forecast

    Cafe Business Plan - Unit Sales
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Fine Dining48,00050,88053,933
    Off-Site Catering32,00033,92035,955
    TOTAL UNIT SALES175,000185,500196,630
    Unit PricesYear 1Year 2Year 3
    Fine Dining$52.00$60.32$69.97
    Off-Site Catering$60.00$69.60$80.74
    Fine Dining $2,496,000.00 $3,069,081.60 $3,773,742.74
    Buffet $2,475,000.00 $3,043,260.00 $3,741,992.50
    Hi-Tea $2,250,000.00 $2,766,600.00 $3,401,811.36
    Off-Site Catering$1,920,000.00 $2,360,832.00 $2,902,879.03
    TOTAL SALES$9,141,000.00 $11,239,773.60 $13,820,425.62
    Direct Unit CostsYear 1Year 2Year 3
    Fine Dining$50.00$56.00$65.00
    Off-Site Catering$58.00$66.00$76.00
    Direct Cost of Sales   
    Fine Dining $2,400,000.00 $2,849,280.00 $3,505,632.00
    Buffet $2,340,000.00 $2,862,000.00 $3,539,340.00
    Hi-Tea $2,150,000.00 $2,597,000.00 $3,146,080.00
    Off-Site Catering$1,856,000.00 $2,238,720.00 $2,732,595.20
    Subtotal Direct Cost of Sales$8,746,000.00 $10,547,000.00 $12,923,647.20

    Personnel plan

    If you want to learn how to create business plan for cafe, you need to know the requirement in terms of human resource that the business has. Just like an airline business plan, it is important to hire all the people that are needed and only the people that are needed to make the business a profitable one.

    7.1 Company Staff

    The staff that will be needed to make this sample business plan cafe a success will be the following:

    • John Arryn, the owner will be the CEO of the business.
    • 2 managers will be hired for operations and marketing.
    • 3 Chefs.
    • 1 Receptionist.
    • 7 Waiters.
    • 1 Accountant.

    7.2 Average Salary of Employees

    Personnel Plan   
     Year 1Year 2Year 3
    Operations Manager$13,000$14,300$15,730
    Marketing Manager$12,000$13,200$14,520
    Total Salaries$137,500 $151,250 $166,375

    Financial Plan

    The last thing that we need to complete this business plan for cafe pdf is the calculation of the finances needed to start the business. No business plan for a cafe example can be complete without discussing the money aspect of the business. Just like we did with the subscription box business plan, the expenses need to be kept as low as possible to make the business successful. The following costs need to be arranged for before the business is started:

    • Money needed to buy/lease the land for the restaurant.
    • Salary of the employees.
    • Money needed for décor of the restaurant.
    • Money needed for the crockery and utensils.
    • Cost of buying the raw materials for food.

    8.1 Important Assumptions

    General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.12%8.20%8.26%
    Long-term Interest Rate8.40%8.44%8.47%
    Tax Rate24.03%24.21%24.60%

    8.2 Break-even Analysis

    Cafe Business Plan - Break-even Analysis
    Break-Even Analysis 
    Monthly Units Break-even5340
    Monthly Revenue Break-even$132,500
    Average Per-Unit Revenue$231.00
    Average Per-Unit Variable Cost$0.62
    Estimated Monthly Fixed Cost$163,800

    8.3 Projected Profit and Loss

    Pro Forma Profit And Loss   
     Year 1Year 2Year 3
    Sales$9,141,000 $11,239,774 $13,820,426
    Direct Cost of Sales$8,746,000 $10,547,000 $12,923,647
    TOTAL COST OF SALES$8,746,000 $10,547,000 $12,923,647
    Gross Margin$395,000 $692,774 $896,778
    Gross Margin %4.32%6.16%6.49%
    Sales and Marketing and Other Expenses$145,000$148,000$156,000
    Leased Equipment$0$0$0
    Payroll Taxes$24,000$25,000$27,000
    Total Operating Expenses$316,700 $334,700 $360,275
    Profit Before Interest and Taxes$78,300$358,074$536,503
    Interest Expense$0$0$0
    Taxes Incurred$15,660$71,615$107,301
    Net Profit$62,640$286,459$429,203
    Net Profit/Sales0.69%2.55%3.11%

    8.3.1 Profit Monthly

    Cafe Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Cafe Business Plan - Profit Yearly
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    8.3.3 Gross Margin Monthly

    Cafe Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Cafe Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Cafe Business Plan - Projected Cash Flow
    Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 3
    Cash from Operations   
    Cash Sales$51,000$55,080$59,486
    Cash from Receivables$22,000$23,760$25,661
    SUBTOTAL CASH FROM OPERATIONS$73,000 $79,570 $85,936
    Additional Cash Received   
    Sales Tax, VAT, HST/GST Received$0$0$0
    New Current Borrowing$0$0$0
    New Other Liabilities (interest-free)$0$0$0
    New Long-term Liabilities$0$0$0
    Sales of Other Current Assets$0$0$0
    Sales of Long-term Assets$0$0$0
    New Investment Received$0$0$0
    SUBTOTAL CASH RECEIVED$74,000 $79,000 $85,000
    ExpendituresYear 1Year 2Year 3
    Expenditures from Operations   
    Cash Spending$42,000$42,000$45,000
    Bill Payments$27,000$28,000$31,000
    SUBTOTAL SPENT ON OPERATIONS$69,000 $70,000 $76,000
    Additional Cash Spent   
    Sales Tax, VAT, HST/GST Paid Out$0$0$0
    Principal Repayment of Current Borrowing$0$0$0
    Other Liabilities Principal Repayment$0$0$0
    Long-term Liabilities Principal Repayment$0$0$0
    Purchase Other Current Assets$0$0$0
    Purchase Long-term Assets$0$0$0
    SUBTOTAL CASH SPENT$69,000 $74,520 $80,482
    Net Cash Flow$21,000$23,000$25,000
    Cash Balance$27,000$30,000$33,000

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet   
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$24,000$26,880$30,213
    Other Current Assets$1,000$1,000$1,000
    TOTAL CURRENT ASSETS$282,000 $315,840 $355,004
    Long-term Assets   
    Long-term Assets$10,000$10,000$10,000
    Accumulated Depreciation$19,400$21,728$24,444
    TOTAL LONG-TERM ASSETS$24,400 $27,328 $30,744
    TOTAL ASSETS$294,000 $329,280 $370,440
    Liabilities and CapitalYear 4Year 5Year 6
    Current Liabilities   
    Accounts Payable$18,700$20,944$23,541
    Current Borrowing$0$0$0
    Other Current Liabilities$0$0$0
    SUBTOTAL CURRENT LIABILITIES$19,000 $21,280 $23,919
    Long-term Liabilities$0$0$0
    TOTAL LIABILITIES$15,000 $16,800 $18,883
    Paid-in Capital$30,000$30,000$31,000
    Retained Earnings$53,000$57,770$63,547
    TOTAL CAPITAL$285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL$300,000 $329,280 $370,440
    Net Worth$293,400$319,806$351,787

    8.6 Business Ratios

    Ratio Analysis    
     Year 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.25%8.03%8.90%3.00%
    Percent of Total Assets    
    Accounts Receivable9.21%10.20%11.31%9.80%
    Other Current Assets2.11%2.34%2.59%2.40%
    Total Current Assets149.80%151.00%152.00%158.00%
    Long-term Assets11.55%11.60%11.64%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.90%4.94%4.98%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.59%7.65%7.72%7.38%
    NET WORTH100.45%101.25%102.19%110.00%
    Percent of Sales    
    Gross Margin94.60%97.15%99.87%99.00%
    Selling, General & Administrative Expenses93.56%96.09%98.78%97.80%
    Advertising Expenses1.52%1.56%1.60%1.40%
    Profit Before Interest and Taxes41.50%42.62%43.81%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth74.08%74.89%75.00%75.00%
    Pre-tax Return on Assets96.30%101.12%106.17%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.56%34.60%35.67%N.A.
    Return on Equity55.80%57.53%59.31%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover32.434.0235N.A.
    Accounts Payable Turnover15.61616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.52.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$244,000$257,664$272,093N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.850.870.89N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test2929.1229.16N.A.
    Sales/Net Worth2.12.22.2N.A.
    Dividend Payout000N.A.

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