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Cat Cafe Business Plan Sample

Published Sep.12, 2018

Updated Apr.22, 2024

Cat Cafe Business Plan Sample

Name: Cat Cafe Business Plan Sample
Item: Cat Cafe Business Plan Sample
Author: Brandi Marcene

By:

Brandi Marcene

Article Business Plan Templates Food & Beverage Business Plans Cafe Business plans

Table of Content

Do you want to start cat cafe business?

Do you want to start your own business? Well, if you are thinking about how to start a cat cafe business, you are on the right track. The business is based upon serving the cat lovers with meal or just coffee in a comfortable place where they are surrounded with adoptable cats and can also play with them.

The first step you will have to take to start your setup is to make a thorough business plan covering all the details of your business. If you don’t have an idea of how to write an effective business plan, you can take help from this sample business plan of the cat cafe startup named, ‘Kitty Cafe’.

Executive Summary

2.1 The Business

Kitty Cafe will be a cat cafe owned by Amy Theron, providing trained cats for those who want to adopt, and for those who just want to play at the moment while having a relaxing time and diet, located in Austin.

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2.2 Management

Before thinking about how to open a cat cafe, you should rent the most suitable space and convert it into an appealing cafe. Kitty Cafe will be owned and managed by Amy Theron, who will hire a team to train stray cats, to prepare menu for the customers and to help in running the business smoothly.

2.3 Customers

Our target customers will be the residents especially young and children, tourists and the professionals of our society living in Austin.

2.4 Target of the Company

Our target is to become the best cat cafe in our city, to achieve our goals, the company’s forecasted performance over the next three years, is elaborated in the chart below:

Company Summary

3.1 Company Owner

Amy Theron will be the owner of the company. Amy is a graduate in zoology from the Arizona State University, her love and passion for the cats can be seen in her collection of about fifty different types of cats.

3.2 Why the Business is being started

An estimate of the stray cats in the United States range up to 70 million, Amy has decided to convert those undesirable animals to the most desirable ones by giving them proper training and presenting them in her cafe.

3.3 How the Business will be started

Amy has done a thorough research on how to start a cat cafe before entering this venture, she has decided to serve the cat lovers with teas, coffees, snacks and salads in the environment they love most. Kitty Cafe will also sell trained cats to the customers who want to buy them. The startup requirements are as follows:

The detailed information about the startup is given below:

Start-up Expenses
Legal	$55,300
Consultants	$0
Insurance	$32,750
Rent	$32,500
Research and Development	$32,750
Expensed Equipment	$32,750
Signs	$1,250
TOTAL START-UP EXPENSES	$187,300
Start-up Assets	$0
Cash Required	$332,500
Start-up Inventory	$32,625
Other Current Assets	$232,500
Long-term Assets	$235,000
TOTAL ASSETS	$121,875
Total Requirements	$245,000
START-UP FUNDING	$0
START-UP FUNDING	$273,125
Start-up Expenses to Fund	$11,875
Start-up Assets to Fund	$15,000
TOTAL FUNDING REQUIRED	$0
Assets	$23,125
Non-cash Assets from Start-up	$18,750
Cash Requirements from Start-up	$0
Additional Cash Raised	$18,750
Cash Balance on Starting Date	$21,875
TOTAL ASSETS	$0
Liabilities and Capital	$0
Liabilities	$0
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$0
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$0
Capital	$0
Planned Investment	$0
Investor 1	$332,500
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$695,000
Loss at Start-up (Start-up Expenses)	$313,125
TOTAL CAPITAL	$251,875
TOTAL CAPITAL AND LIABILITIES	$251,875
Total Funding	$255,000

Services for customers

Before opening a cat cafe, you must decide the ways and services which will prove extremely profitable and appealing for this business.

Kitty Cafe will provide the following services to its customers:

Selling Trained Cats: Our primary service will be to sell the trained and beautiful cats to the cat lovers who want to adopt them. The customers can freely play and spend time with the trained cats after paying a very few charges to know with which type of cat they feel the most attached with.
Playing Temporarily: For the persons who don’t have space or time to keep their lovable pet animals, we’ll provide our cats to play with by charging a little amount of money.
Food & Drinks: We have an assortment of salads, snacks, cakes, teas, coffees, and drinks to provide our customers with a full relaxing time and energizing diet.
Veterinary Services: We’ll also have a professional vet to treat disorders, diseases, and injuries in your pet animals including cats and dogs.

Marketing Analysis of cat cafe business

Marketing analysis can be the most deciding factor of the success of your startup and must be done accurately and efficiently before starting a cat cafe. In your cat cafe business plan you should analyze whether you will be able to fulfill your business dreams in the market or not. You have to thoroughly interpret the market and propose different ways in your business plan for cat cafe to get introduced to your target audience. By going through this sample cat cafe business model, you can have a general idea of marketing trends, but it is better to hire a professional to do accurate marketing analysis according to your figures and vicinity.

5.1 Market Trends

About 85.8 million cats are owned by 35% of all households in the United States. Many people love to have cats as their pet animals and many who lack proper space and time to have pets seek places like cat cafes to console their desires of playing with the beautiful creature. Although the market isn’t thronged up with such cafes, yet the interest of target audience shows that the business will soon reach its peak point.

5.2 Marketing Segmentation

Knowing your customers before starting your business is the best thing you can do to formulate your policies. Considering the importance of an accurate marketing analysis, Amy had hired a marketing analyst to identify the groups of her target customers which can become potential clients in future as demonstrated here:

Cat Cafe Business Plan - Market Segmentation

The detailed marketing segmentation is as follows:

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Children & Teens	32%	11,433	13,344	16,553	18,745	20,545	13.43%
Young & Adults	48%	22,334	32,344	43,665	52,544	66,432	10.00%
Tourists & Passers-by	20%	12,867	14,433	15,999	17,565	19,131	15.32%
Total	100%	46,634	60,121	76,217	88,854	106,108	9.54%

5.2.1 Children & Teens: Our expert has identified children as the sole customers of Kitty Cafe, there are many children and teens in the city whose parents don’t allow them to keep pets at home due to their careless attitudes, so they can come to our cafe and can play with their desired cat as long as they want.

Those who possess their own cats are expected to avail our veterinary services whenever they are facing any issue with their animal.

5.2.2 Young & Adults: There are a lot of young and adults who want to keep a pet at their residence but are unable to give proper care and attention to them, these people will also rush towards our cafe in their free times to relax themselves and fresh their moods. These people will also avail our veterinary services and can, of course, adopt our cats whenever they want to.

5.2.3 Tourists & Passers-by: Our last category of target customers will comprise of the tourists and the passers-by who will not be able to resist coming inside on seeing our lovely and relaxing atmosphere.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our aim is to become the best and most visited cat cafe in the whole city. Our main business targets are as follows:

To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
To balance the initial cost of the startup with earned profits by the end of the first year

5.4 Product Pricing

Our prices vary with the type of cat, we will have hourly packages and weekly and monthly memberships to spend time with cats. However, the prices of our food items and drinks are almost the same as of our competitors.

Strategy

No startup can thrive in the market if you are unable to market it properly, besides looking for how to set up a cat cafe, it is more important to look for the strategic business plan you can make in order to increase your sales.

6.1 Competitive Analysis

If you have decided to start a cat cafe, then you must come up with distinguished competitive aspects to clarify that why should your target customers choose you instead of all others.

Kitty Cafe’s biggest competitive advantage is the excellent customer service, and secondly its elegant and comfortable atmosphere to uplift your mood while serving a delicious meal. Only we in all our competitors are providing veterinary services by a professional vet.

6.2 Sales Strategy

Amy’s extensive research on how to run a cat cafe has enabled her to come up with the following marvelous advertising ideas.

We’ll held a party with an exhibition show by our trained cats
We’ll provide 20% discount on all our services for the first three months of our launch
We’ll advertise ourselves by using posters, brochures, print media, and social media

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Our forecasted sales are summarized in the following column charts:

The detailed information about sales forecast is given in the following table:

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Selling Trained Cats	1,887,030	2,680,320	2,588,240
Playing Temporarily	802,370	815,430	823,540
Foods & Drinks	539,320	770230	1,002,310
Veterinary Services	265,450	322,390	393,320
TOTAL UNIT SALES	3,494,170	4,588,370	4,807,410
Unit Prices	Year 1	Year 2	Year 3
Selling Trained Cats	$140.00	$150.00	$160.00
Playing Temporarily	$600.00	$800.00	$1,000.00
Foods & Drinks	$700.00	$800.00	$900.00
Veterinary Services	$650.00	$750.00	$850.00
Sales
Selling Trained Cats	$2,149,800	$2,784,000	$3,383,200
Playing Temporarily	$120,050	$194,500	$268,500
Foods & Drinks	$50,110	$71,600	$93,000
Veterinary Services	$139,350	$194,600	$249,850
TOTAL SALES
Direct Unit Costs	Year 1	Year 2	Year 3
Selling Trained Cats	$0.70	$0.80	$0.90
Playing Temporarily	$0.40	$0.45	$0.50
Foods & Drinks	$0.30	$0.35	$0.40
Veterinary Services	$3.00	$3.50	$4.00
Direct Cost of Sales
Standard Self Storage Units	$989,300	$1,839,000	$2,679,700
Selling Trained Cats	$66,600	$119,900	$173,200
Playing Temporarily	$17,900	$35,000	$52,100
Foods & Drinks	$19,400	$67,600	$115,800
Veterinary Services	$1,294,100	$1,699,400	$2,104,700

Personnel Plan

To start a cat cafe franchising business plan, the main thing you’ll need in bulk is cat variety and a few workers to maintain the environment besides entertaining the customers’ needs.

7.1 Company Staff

To run Kitty Cafe, Amy will hire the following personnel to assist her in managing the business:

1 Co-Manager to monitor all the operations of the cafe
2 Accountants to maintain financial records
1 Veterinary Doctor to treat injuries and damages to pet animals
3 Cat Trainers to train the cats
2 Drivers to bring in stray cats
4 Cooks to manage the menu
2 Waiters to serve the customers
2 Cleaners to maintain the cleanliness

7.2 Average Salary of Employees

Average salaries of the employees for the next three years can be demonstrated from the following table:

Personnel Plan
	Year 1	Year 2	Year 3
Accountants	$85,000	$95,000	$105,000
Co-Manager	$45,000	$50,000	$55,000
Veterinary Doctor	$152,000	$159,000	$166,000
Cat Trainers	$145,000	$152,000	$159,000
Drivers	$50,000	$55,000	$60,000
Cooks	$187,000	$194,000	$201,000
Waiters	$42,000	$45,000	$48,000
Cleaners	$42,000	$45,000	$48,000
Total Salaries	$152,000	$159,000	$166,000

Financial Plan

The final step in starting your cat cafe is to make a detailed financial plan covering the details about how will you manage the startup costs, the salaries of your employees and the expenses of cats with or without the profits earned. This sample business plan can also assist you in making your financial plan, but to ensure extreme accuracy and precision, you are advised to hire a financial advisor to estimate the cat cafe cost in your locality and formulate a financial plan for at least three years.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	10.00%	11.00%	12.00%
Long-term Interest Rate	10.00%	10.00%	10.00%
Tax Rate	26.42%	27.76%	28.12%
Other	0	0	0

8.2 Brake-even Analysis

Cat Cafe Business Plan - Brake-even Analysis

Brake-Even Analysis
Monthly Units Break-even	5530
Monthly Revenue Break-even	$159,740
Assumptions:
Average Per-Unit Revenue	$260.87
Average Per-Unit Variable Cost	$0.89
Estimated Monthly Fixed Cost	$196,410

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$309,069	$385,934	$462,799
Direct Cost of Sales	$15,100	$19,153	$23,206
Other	$0	$0	$0
TOTAL COST OF SALES	$15,100	$19,153	$23,206
Gross Margin	$293,969	$366,781	$439,593
Gross Margin %	94.98%	94.72%	94.46%
Expenses
Payroll	$138,036	$162,898	$187,760
Sales and Marketing and Other Expenses	$1,850	$2,000	$2,150
Depreciation	$2,070	$2,070	$2,070
Leased Equipment	$0	$0	$0
Utilities	$4,000	$4,250	$4,500
Insurance	$1,800	$1,800	$1,800
Rent	$6,500	$7,000	$7,500
Payroll Taxes	$34,510	$40,726	$46,942
Other	$0	$0	$0
Total Operating Expenses	$188,766	$220,744	$252,722
Profit Before Interest and Taxes	$105,205	$146,040	$186,875
EBITDA	$107,275	$148,110	$188,945
Interest Expense	$0	$0	$0
Taxes Incurred	$26,838	$37,315	$47,792
Net Profit	$78,367	$108,725	$139,083
Net Profit/Sales	30.00%	39.32%	48.64%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

Cat Cafe Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Cat Cafe Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Cat Cafe Business Plan - Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$40,124	$45,046	$50,068
Cash from Receivables	$7,023	$8,610	$9,297
SUBTOTAL CASH FROM OPERATIONS	$47,143	$53,651	$59,359
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	$47,143	$53,651	$55,359
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$21,647	$24,204	$26,951
Bill Payments	$13,539	$15,385	$170,631
SUBTOTAL SPENT ON OPERATIONS	$35,296	$39,549	$43,582
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
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$35,296	$35,489	$43,882
Net Cash Flow	$11,551	$13,167	$15,683
Cash Balance	$21,823	$22,381	$28,239

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$184,666	$218,525	$252,384
Accounts Receivable	$12,613	$14,493	$16,373
Inventory	$2,980	$3,450	$3,920
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$201,259	$237,468	$273,677
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$12,420	$14,490	$16,560
TOTAL LONG-TERM ASSETS	$980	$610	$240
TOTAL ASSETS	$198,839	$232,978	$267,117
Liabilities and Capital	Year 1	Year 2	Year 3
Current Liabilities
Accounts Payable	$9,482	$10,792	$12,102
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$9,482	$10,792	$12,102
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$9,482	$10,792	$12,102
Paid-in Capital	$30,000	$30,000	$30,000
Retained Earnings	$48,651	$72,636	$96,621
Earnings	$100,709	$119,555	$138,401
TOTAL CAPITAL	$189,360	$222,190	$255,020
TOTAL LIABILITIES AND CAPITAL	$198,839	$232,978	$267,117
Net Worth	$182,060	$226,240	$270,420

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	Industry Profile
Sales Growth	4.35%	30.82%	63.29%	4.00%
Percent of Total Assets	4.35%	4.71%	5.80%	9.80%
Accounts Receivable	5.61%	4.71%	3.81%	9.70%
Inventory	1.85%	1.82%	1.79%	9.80%
Other Current Assets	1.75%	2.02%	2.29%	27.40%
Total Current Assets	138.53%	150.99%	163.45%	54.60%
Long-term Assets	-9.47%	-21.01%	-32.55%	58.40%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.68%	3.04%	2.76%	27.30%
Long-term Liabilities	0.00%	0.00%	0.00%	25.80%
Total Liabilities	4.68%	3.04%	2.76%	54.10%
NET WORTH	99.32%	101.04%	102.76%	44.90%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.18%	93.85%	93.52%	0.00%
Selling, General & Administrative Expenses	74.29%	71.83%	69.37%	65.20%
Advertising Expenses	2.06%	1.11%	0.28%	1.40%
Profit Before Interest and Taxes	26.47%	29.30%	32.13%	2.86%
Main Ratios
Current	25.86	29.39	32.92	1.63
Quick	25.4	28.88	32.36	0.84
Total Debt to Total Assets	2.68%	1.04%	0.76%	67.10%
Pre-tax Return on Net Worth	66.83%	71.26%	75.69%	4.40%
Pre-tax Return on Assets	64.88%	69.75%	74.62%	9.00%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	19.20%	21.16%	23.12%	N.A.
Return on Equity	47.79%	50.53%	53.27%	N.A.
Activity Ratios
Accounts Receivable Turnover	4.56	4.56	4.56	N.A.
Collection Days	92	99	106	N.A.
Inventory Turnover	19.7	22.55	25.4	N.A.
Accounts Payable Turnover	14.17	14.67	15.17	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	1.84	1.55	1.26	N.A.
Debt Ratios
Debt to Net Worth	0	-0.02	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$120,943	$140,664	$160,385	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.45	0.48	0.51	N.A.
Current Debt/Total Assets	4%	3%	2%	N.A.
Acid Test	23.66	27.01	30.36	N.A.
Sales/Net Worth	1.68	1.29	0.9	N.A.
Dividend Payout	0	0	0	N.A.

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