Coffeehouse business plan for starting your own building firm

You make a great coffee and you want to share it with others, right? Starting a coffee house can be an extremely profitable and exciting venture provided that you do it the right way. To start a coffee house, you need to set up a nice sitting place. Moreover, you need to hire chefs and waiters to serve your customers with the best taste.

The business keeps blooming throughout the year. But still, there are a few challenges that can only be addressed through a comprehensive business plan for coffeehouse.

If you don’t know how to write a good business plan, we are here to help. We are providing a sample of opening a coffeehouse business plan written for the startup ‘James’ Coffee Hub’.

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Executive Summary

2.1 The Business

James’ Coffee Hub will be a registered coffee house located in Madison. The business will be solely owned by James Franco who is famous for winning various food competitions around the U.S. The business will serve its customers with various types of coffees, drinks, and eatables.

2.2 Management of Coffeehouse

Starting a coffee house is a slightly difficult venture as you have to procure a lot of furniture and inventory for providing the dine-in facility. In addition to it, you also need to hire staff for managing and maintaining the restaurant.

To make sure that all aspects of your business are taken care of, you need efficient management. In your startup business plan for coffee house, you should define all the ways that can help you in managing your business. If you are making a coffee house start up plan you should be wary about even the minutest details.

James will hire a co-manager for managing the business. However, he will be always there himself to supervise the activities.

2.3 Customers of Coffeehouse

Madison is a city where winters are characterized by chilly and freezing winds. In such weather, the teens, adults, elderly, single, as well as couples, would feel warm and comforted by our delicious servings. We expect people of all ages who are living nearby us to be our customers.

Moreover, there are also several commercial and business centers in our vicinity. So we expect to attract their employees too.

2.4 Business Target

You should include your business goals in your how to start a coffeehouse business plan. This will help you to devise solutions to direct resources towards your business targets.

Our target is to serve our customers with the best taste in reasonable rates. With respect to financial goals, we aim at achieving a net profit margin of $22k per month by the end of the first year, $47k per month by the end of the second year, and $78.8k per month by the end of three years. Our 3-year profit forecast is also summarized in the table below.

3 Years Profit Forecast - Coffeehouse Business Plan
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Company Summary

3.1 Company Owner

James has done his graduation in Business Administration from the University of Wisconsin. Throughout his teenage and further, he remained involved with cooking. His specialties are making coffees, chocolate drinks, and sandwiches.

3.2 Why the Coffeehouse is being started

What could be a better way for James to earn profits while doing what he loves? James started a coffee house because he always wanted to have this type of career. He is experienced in making different types of coffee drinks, iced coffees, chocolate drinks, and sandwiches. He just wanted people to relish the drinks he can make.

3.3 How the Coffeehouse will be started

Before taking any steps to start the business you have to create a business plan. For that purpose try to study at least one example of coffee shop business plan. By reading business plans of other startups like this sample coffee house business plan, you can identify the areas where more resources should be invested.

Here we are giving the description of coffee shop business of James’ Coffee Hub so that you can know what to include in starting coffee shop business plan.

James will procure a single floor building that should ideally be located in the vicinity of commercial and business centers. That building will be converted into a coffee restaurant business after the required renovations. James will hire an electrical contractor to install ambient lighting in the dine-in space so that people can enjoy a soothing and peaceful environment.

Moreover, the required staff will be hired and the inventory including different coffee makers will be procured. While establishing a physical presence, James will also start advertising his services. Through social media, websites, and local magazines, the startup will be advertised to attract potential customers.

Startup Cost - Coffeehouse Business Plan
Start-up Expenses 
Research and Development$21,000
Expensed Equipment$54,000
Start-up Assets$311,000
Cash Required$366,000
Start-up Inventory$52,500
Other Current Assets$192,000
Long-term Assets$215,000
TOTAL ASSETS$1,136,500
Total Requirements$1,525,000
Start-up Expenses to Fund$388,500
Start-up Assets to Fund$1,136,500
Non-cash Assets from Start-up$1,500,000
Cash Requirements from Start-up$374,000
Additional Cash Raised$51,000
Cash Balance on Starting Date$48,000
TOTAL ASSETS$1,973,000
Liabilities and Capital 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$40,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,525,000
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$377,000
Total Funding$1,525,000
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    To strive in the competitive market like that of Madison, James’ Coffee Hub had to come up with exclusive features. In this example of coffee shop business plan, we are listing all the services of James’ successful startup. If you are creating a coffeehouse business plan template you can learn what to do to make your startup stand out from the crowd.

    No matter how few or how many services you provide, you should include them in starting your own coffeehouse business plan. This can help you in deciding pricing strategy, employees’ salaries, and calculating your profits.

    James’ Coffee Hub will provide the following services.

    • Coffee Drinks: We will offer all popular and local type of coffees. Our major servings will include Latte, Cappuccino, Americano, Espresso, Red Eye, Galão, Lungo, Macchiato, Flat White, Affogato, Café au Lait, Irish, Arabica, Robusta, Doppio, Cortado, Mocha, and Ristretto.
    • Iced Coffee: Our offerings in iced coffees will comprise Frappuccino, Cold Brew, and Iced Espresso.
    • Chocolate Drinks: Our chocolate drink flavors will include Champurrado, Cocio, Pozole, and more.
    • Pancakes & Sandwiches: We will offer nearly ten types of pancakes with strawberry sauce, blueberry sauce, and honey. Moreover, we will offer grilled cheese sandwiches, tuna sandwiches, turkey, and beef sandwiches.

    Dine-in/ Takeaway/ Drive Through/ Delivery

    We will provide a beautiful seating facility for our customers while following SOPs. Moreover, we understand that many people don’t want to dine-in after the prevalence of coronavirus. So we will also be facilitating them by offering takeaway and delivery services.

    Marketing Analysis of Coffeehouse

    To make your startup a success, you must have to carefully perform market analysis. In your business plan to open a coffee house you have to analyze the market fluctuations that can affect your restaurant. Besides, you have to explore the strengths and weaknesses of your market competitors so that you can perform better than them.

    For if you are not a business expert, you should hire a professional market analyst to gather industry insight. The task of creating a business plan for coffee house should also be done by a professional business plan writer. In the case of James’ Coffee Hub, James knew how to write a business plan for a coffeehouse. Therefore he did the work himself.

    5.1 Market Trends

    Researching market trends before opening a coffee house can help you in locating the ideal time and location for your startup. To help you in creating an organic coffeehouse business plan, we are providing market trends of coffee house business here. [important title=”Note”]You can learn the important market statistics about coffee houses in this sample of coffee house business plan free of cost.[/important]

    According to IBISWorld, the number of coffee house restaurants/ shops has increased by 3.2% during the last year. The current number of coffeehouse restaurants in the U.S. is near to 61k. The business is in demand because people love to drink coffee. However, these days due to the coronavirus some new trends should be introduced such as providing drive though and home delivery services.

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    5.2 Marketing Segmentation

    Our marketing experts have identified the following type of target audience which can become the potential customers of our restaurant.

    The detailed marketing segmentation comprising the company’s target audience is as follows:

    Marketing Segmentation - Coffehouse Business Plan

    5.2.1 Local Residents: The primary group of our customers will be the people living near us. Most of the people come out of their homes in the chilly evenings to enjoy the warmth of coffee. Besides coffee, these residents are also expected to relish our sandwiches and pancake offerings.

    To make sure we retain them as our potential customers, we will offer them various discounts and gift packs on frequent visits.

    5.2.2 Working Class: The second category of our target customers includes the employees who work in the businesses situated in our vicinity. This category is expected to utilize our services because of two reasons:

    • Working-class usually need to communicate matters with colleagues and friends. Besides, they also need some space to arrange economical yet enjoyable meetups with old fellows. Our pleasant and peaceful sitting accompanied by coffee and snacks will provide them a suitable space to schedule informal meetups.
    • Secondly, some working-class members want to have an instant mug of coffee after a tiring day. Our drive-through and delivery service will be there to take care of their needs too.

    5.2.3 Passers-by: The third category will comprise passers-by who come to our vicinity for some other works. Such people generally stop to have a coffee break to gather energy for the remaining day. To attract their attention, we will install creative posters in our nearby areas as well as outside our restaurant.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Local Residents40%37,00039,00041,00044,00046,00010.00%
    Working Class35%32,00034,00036,00038,00041,00010.00%

    5.3 Business Target

    Our business targets are:

    • To grow our sales by more than 6% every six months
    • To recover the invested amount on startup within two years of the launch
    • To achieve the monthly net profit of $78k per month by the end of the third year of the launch
    • To achieve an average rating above 4.6 within a year of the launch

    5.4 Product Pricing

    Our prices of coffee are 3% lesser than our competitors. However, the prices of our pancakes and sandwiches are nearly the same as that of our direct competitors.

    Marketing Strategy

    In your business proposal for coffee house, you have to also include coffee house marketing plan. A marketing or sales strategy plan helps you target the identified customers. While making your sales strategy plan, you have to keep the following things in mind

    • What could make your customers happier?
    • Which aspects are being missed by your competitors?
    • What more you can offer your customers within the available resources?

    In this business proposal sample for coffee shop, we are giving the sales strategy of James’ Coffee Hub.

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    6.1 Competitive Analysis:

    As James’ Coffee Hub, we’ll outperform all of our competitors from the very first day. The reasons are:

    1. Our owner is an already famous chef therefore people would love to try our servings.
    2. Our rates are reasonable.
    3. We provide a luxurious seating facility. Our indoor and outdoor are carefully decorated with typography and creative posters. The lighting is also done in a way to amuse the customers.
    4. Our sales strategy plan is highly customer-oriented and will help us in attracting more customers.

    6.2 Sales Strategy

    • We will offer a 50% discount on all of our coffees for the first month of the launch.
    • We will offer a free pancake with a cup of coffee for the first two months of the launch.
    • We will advertise our services through Google Local ads service and local magazines.
    • We will provide free delivery within a 10km radius from our side.

    6.3 Sales Monthly

    Sales Monthly - Coffehouse Business Plan

    6.4 Sales Yearly

    Sales Yearly - Coffehouse Business Plan

    6.5 Sales Forecast

    Unit Sales - Coffehouse Business Plan
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Coffee Drinks55,00058,30061,798
    Iced Coffee37,00039,22041,573
    Chocolate Drinks34,00036,04038,202
    Pancakes & Sandwiches48,00050,88053,933
    TOTAL UNIT SALES174,000184,440195,506
    Unit PricesYear 1Year 2Year 3
    Coffee Drinks$38.00$44.08$51.13
    Iced Coffee$35.00$40.60$47.10
    Chocolate Drinks$28.00$32.48$37.68
    Pancakes & Sandwiches$40.00$46.40$53.82
    Coffee Drinks$2,090,000.00 $2,569,864.00 $3,159,904.77
    Iced Coffee$1,295,000.00 $1,592,332.00 $1,957,931.43
    Chocolate Drinks$952,000.00 $1,170,579.20 $1,439,344.18
    Pancakes & Sandwiches$1,920,000.00 $2,360,832.00 $2,902,879.03
    TOTAL SALES$6,257,000.00 $7,693,607.20 $9,460,059.41
    Direct Unit CostsYear 1Year 2Year 3
    Coffee Drinks$36.00$40.00$45.00
    Iced Coffee$32.00$36.00$40.00
    Chocolate Drinks$25.00$28.00$33.00
    Pancakes & Sandwiches$36.00$40.00$44.00
    Direct Cost of Sales   
    Coffee Drinks$1,980,000.00 $2,332,000.00 $2,780,910.00
    Iced Coffee$1,184,000.00 $1,411,920.00 $1,662,928.00
    Chocolate Drinks$850,000.00 $1,009,120.00 $1,260,679.20
    Pancakes & Sandwiches$1,728,000.00 $2,035,200.00 $2,373,043.20
    Subtotal Direct Cost of Sales$5,742,000.00 $6,788,240.00 $8,077,560.40

    Personnel plan

    While writing a business plan for a coffee house you must include the requirement and job responsibilities of your required staff. The success of your coffee house will largely depend on the skills of your chefs, the honesty of your procurement staff, and the behavior of your waiters. Therefore, make sure that you hire your employees after great testing and interviewing.

    In this coffeehouse business plan sample we are giving the personnel plan of James’ Coffee Hub.

    7.1 Company Staff

    James will supervise everything himself. However, he will hire the following people:

    • 1 Co-Manager to manage the overall operations of the restaurant
    • 6 Chefs to prepare the menu
    • 7 Waiters to serve the customers
    • 1 Cashier to receive cash from the people
    • 1 Accountant to maintain financial records
    • 2 Sales Executives responsible for marketing and advertising of the restaurant
    • 1 IT Expert/ Web Developer to maintain the company’s social sites and website
    • 3 Cleaners to clean the dishes and other facilities at the restaurant
    • 2 Drivers to provide home delivery

    7.2 Average Salary of Employees

     Personnel Plan   
     Year 1Year 2Year 3
    Sales Executive$26,000$28,600$31,460
    IT Expert/ Web Developer$14,000$15,400$16,940
    Total Salaries$199,000 $218,900 $240,790

    Financial Plan

    Financial planning is the last and most important part of a business plan. In this, you should identify if you can manage your startup within your investment or if you have to take a loan. Remember, financial planning is not just about starting a business. In this, you also have to include the forecasted financial details when you start running your business. You should have a plan to set your prices in a way that helps you gain customers, manage losses, employees’ salaries and business expenses.

    In this coffee house business plan pdf we are providing the financial plan of James’ Coffee Hub. If you need to make a business plan for a coffee house, you can download the documents free of cost.

    8.1 Important Assumptions

     General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.17%8.25%8.34%
    Long-term Interest Rate8.33%8.51%8.79%
    Tax Rate24.09%25.11%26.73%

    8.2 Brake-even Analysis

    Brake-even Analysis - Coffehouse Business Plan
     Brake-Even Analysis 
    Monthly Units Break-even5293
    Monthly Revenue Break-even$131,800
    Average Per-Unit Revenue$237.00
    Average Per-Unit Variable Cost$0.64
    Estimated Monthly Fixed Cost$162,300

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss   
     Year 1Year 2Year 3
    Sales$6,257,000 $7,693,607 $9,460,059
    Direct Cost of Sales$5,742,000 $6,788,240 $8,077,560
    TOTAL COST OF SALES$5,742,000 $6,788,240 $8,077,560
    Gross Margin$515,000 $905,367 $1,382,499
    Gross Margin %8.23%11.77%14.61%
    Sales and Marketing and Other Expenses$140,000$143,000$146,000
    Leased Equipment$0$0$0
    Payroll Taxes$34,000$37,000$41,000
    Total Operating Expenses$184,700 $191,430 $199,300
    Profit Before Interest and Taxes$330,300$713,937$1,183,199
    Interest Expense$0$0$0
    Taxes Incurred$66,060$142,787$236,640
    Net Profit$264,240$571,150$946,559
    Net Profit/Sales4.22%7.42%10.01%

    8.3.1 Profit Monthly

    Profit Monthly - Coffehouse Business Plan

    8.3.2 Profit Yearly

    Profit Yearly - Coffehouse Business Plan

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Coffehouse Business Plan

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Coffehouse Business Plan

    8.4 Projected Cash Flow

    Projected Cash Flow - Coffehouse Business Plan
     Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 3
    Cash from Operations   
    Cash Sales$49,000$52,920$57,154
    Cash from Receivables$13,000$14,040$15,163
    SUBTOTAL CASH FROM OPERATIONS$62,000 $67,580 $72,986
    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$61,700 $65,700 $70,300
    ExpendituresYear 1Year 2Year 3
    Expenditures from Operations   
    Cash Spending$36,000$39,000$43,000
    Bill Payments$16,000$18,000$21,000
    SUBTOTAL SPENT ON OPERATIONS$52,000 $57,000 $64,000
    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$52,000 $56,160 $60,653
    Net Cash Flow$12,600$15,300$18,400
    Cash Balance$27,000$29,000$33,000

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet   
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$25,500$28,560$32,101
    Other Current Assets$1,000$1,000$1,000
    TOTAL CURRENT ASSETS$302,000 $338,240 $380,182
    Long-term Assets   
    Long-term Assets$10,000$10,000$10,000
    Accumulated Depreciation$16,500$18,480$20,790
    TOTAL LONG-TERM ASSETS$23,000 $25,760 $28,980
    TOTAL ASSETS$314,000 $351,680 $395,640
    Liabilities and CapitalYear 4Year 5Year 6
    Current Liabilities   
    Accounts Payable$13,000$14,560$16,365
    Current Borrowing$0$0$0
    Other Current Liabilities$0$0$0
    SUBTOTAL CURRENT LIABILITIES$10,800 $12,096 $13,596
    Long-term Liabilities$0$0$0
    TOTAL LIABILITIES$11,200 $12,544 $14,099
    Paid-in Capital$28,000$29,000$30,000
    Retained Earnings$58,000$63,220$69,542
    TOTAL CAPITAL$293,700 $320,133 $352,146
    TOTAL LIABILITIES AND CAPITAL$304,900 $351,680 $395,640
    Net Worth$298,400$325,256$357,782


    8.6 Business Ratios

     Ratio Analysis    
     Year 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.02%7.78%8.62%3.00%
    Percent of Total Assets    
    Accounts Receivable9.17%10.16%11.26%9.80%
    Other Current Assets2.02%2.24%2.48%2.40%
    Total Current Assets150.00%151.00%153.00%158.00%
    Long-term Assets11.58%11.71%11.94%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.72%4.76%4.80%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.26%7.32%7.39%7.38%
    NET WORTH103.98%104.81%105.78%110.00%
    Percent of Sales    
    Gross Margin97.04%99.66%102.45%99.00%
    Selling, General & Administrative Expenses94.18%96.72%99.43%97.80%
    Advertising Expenses1.67%1.72%1.76%1.40%
    Profit Before Interest and Taxes41.18%42.29%43.48%33.90%
    Main Ratios    
    Total Debt to Total Assets0.25%0.21%0.18%0.40%
    Pre-tax Return on Net Worth77.13%80.99%85.04%75.00%
    Pre-tax Return on Assets92.30%96.92%101.76%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.38%34.41%35.48%N.A.
    Return on Equity57.67%59.46%61.30%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover33.0234.67135.98N.A.
    Accounts Payable Turnover16.0716.2916.42N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.62.662.71N.A.
    Debt Ratios    
    Debt to Net Worth-0.03-0.03-0.05N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$239,800$253,229$267,410N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.870.90.93N.A.
    Current Debt/Total Assets1%1%0%N.A.
    Acid Test27.928.931.02N.A.
    Sales/Net Worth2.12.22.2N.A.
    Dividend Payout000N.A.

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