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How to Write a Successful Coffee Shop Business Plan (with Template)

• By Tam Nguyen

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Dreaming of opening a coffee shop? You’re not alone. The coffee industry is bustling with passionate business owners eager to make their mark. However, becoming successful coffee shop owners requires more than just a love for the brew. It demands a clear vision that differentiates your coffee house in a saturated market. A well-crafted business plan not only gives life to your idea but also sets your business on a path to thrive. Whether you’re a newbie or a seasoned entrepreneur, this guide, complete with a free template, will help you craft a business plan that markets and propels your coffee venture to success.

What is A Coffee Shop Business Plan?  

A coffee shop business plan is a comprehensive document that explains what your business idea is, how you intend to penetrate the coffee market, and the strategies you’ll employ to run your coffee shop successfully. When opening a cafe, many aspiring cafe or coffee shop owners underestimate the value of a structured plan. However, this document does more than just outline the needs to open a coffee shop; it gives a detailed roadmap for your new business, offering clarity on every aspect of its operation.

More than that, presenting a well-structured business plan to potential investors is essential. It not only showcases your commitment but also your understanding of the industry, making it a vital tool for securing funding. While crafting a business plan can seem daunting initially, it’s the foundation that both clarifies your idea and sets your business on the trajectory for growth and success in the competitive world of cafes and coffee shops.

Why A Business Plan Is Important For A Successful Coffee Shop Business?

1. Clear Vision and Objectives

When you set up your coffee shop, having a business plan establishes a clear vision and defines your objectives. It is the backbone that steers every decision you’ll make. Without a clear outline, you may find yourself swaying from one idea to the next. With a detailed business plan, you can present a clear business proposal to stakeholders, ensuring them and yourself of the path you plan to tread.

2. Financial Planning

A comprehensive business plan is imperative for accurate financial planning. It will include information on how much capital is required to start, what your ongoing costs will be, and the revenues you plan to generate. If you’re seeking external funding, investors will want to see how you plan to use their money, and most importantly, how you plan to make a return on that investment. If you plan to sell specialty blends or unique treats, the financial section can also help you plan a strategy for pricing, promotion, and sales forecasts.

3. Operational Efficiency

Operational efficiency is the linchpin that holds all business operations together. A business plan will map out every detail, from supplier agreements to employee schedules. You may want to create special events or loyalty programs for regular customers, and this is where a business plan can help you plan a strategy for success. It becomes the reference point, ensuring that daily tasks align with the broader objectives, guaranteeing that resources, time, and efforts are used optimally.

Step-by-step Guide To Write A  Coffee Shop Business Plan

1. Executive Summary

The Executive Summary is like the introduction of a novel – it provides a snapshot of what is to come. Typically, you write the executive summary last, even though it appears first in your business plan. It encapsulates the essence of your coffee shop’s mission, objectives, and financial overview, succinctly explaining what your business concept is about. This section is crucial because many coffee shops fail to engage potential investors right off the bat. Ideally, it should be concise – a page or two.

What should you cover in an Executive Summary?

• Introduce Your Coffee Shop or Cafe: Provide a company overview, giving readers insight into what makes your coffee shop unique from the myriad of coffee bars in the market.
• State Your Mission and Vision: Describe what drives your coffee business and where you see it in the future.
• Outline Your Objective: Define clear, measurable goals that you aim to achieve.
• Provide a Financial Overview: Highlight projected profit margins, a brief balance sheet, and other pertinent financial data.

2. Coffee Shop Business Description

This section paints a picture of your coffee shop. It’s where you elaborate on how you plan to infuse the local coffee market with your unique brews and pastries.

What should you cover in the Coffee Shop Description section?

• Coffee Shop Concept: Dive into the types of coffee drinks you plan to offer, whether it’s a rich espresso or a classic brewed coffee.
• Unique Selling Proposition: Discuss what makes your coffee shop stand out, be it a special blend of coffee beans, a unique roasting method using a specific coffee roaster, or artisanal pastry offerings.
• Operational Plan: Briefly touch upon how you’ll manage your coffee shop, from sourcing beans to serving cups of coffee.

3. Market Analysis

Before pouring your first espresso, performing market research before starting your coffee business is essential. This section dives deep into understanding your potential customer base and the coffee industry landscape in your area.

What should you cover in this section?

• Target Market: Describe your ideal customer. Are they local residents, office workers, or students?
• Location: Discuss the significance of your chosen location. Are there many coffee shops in the area? How does your location cater to your target market?
• Competition: Analyze existing coffee shops. What coffee and food products do they offer? What pricing strategy do they employ? How will your coffee shop compete or complement them?

4. Organization and Management

Behind every successful coffee shop is a robust organizational structure and a competent management team.

What should you cover in the Organization and Management Plan?

• Coffee Shop Ownership Information: Highlight the business’s legal structure.
• Profiles of Your Coffee Shop Management Team: Include details about your baristas, perhaps a part-time accountant, and someone to manage marketing. It can be helpful to create profiles for each role, detailing responsibilities and expertise.

5. Sample Menu

Your menu is the heart of your coffee shop. It’s more than just a list of coffee and tea; it’s an expression of your brand.

What should you consider when creating a Sample Menu?

• Menu Items: Detail the types of coffee, espresso drinks, and pastries you plan to offer. Maybe consider including non-coffee items like teas or specialty drinks.
• Unique Selling Proposition: Reiterate what makes your coffee or food items different from other coffee shops in the area.
• Menu Pricing : Discuss your pricing strategy, keeping in mind profit margin, competitors’ prices, and your target customer base.

6. Marketing Plan

To brew success, it’s not enough to have a fantastic coffee product; you must effectively market it.

What should you cover in a Marketing Strategy for your Coffee Shop Business?

• Define Your Brand: What voice, theme, or emotion do you want your coffee shop to evoke?
• Lay out your plans for social media campaigns, local partnerships, loyalty programs, SEO for website, and other promotional strategies.
• Considering using an  online food ordering system  in your food truck
• Create a  digital menu with QR code  to make your menu easy for your customers to access online

7. Operations Plan

Efficiency is key to the daily grind of running a cafe. The operations section provides a detailed look at the day-to-day operations of your coffee shop business. 

What Operational Issues should you address in your Business Plan?

• Supply Chain: Where will you buy your coffee beans? Who will be your coffee roaster?
• Operating Hours: Consider the best times to cater to your target market.
• Staffing: Detail roles, such as barista, manager, and part-time support.
• Equipment: List down essential equipment, from espresso machines to ovens.

8. Financial Plan

In this crucial section of your business plan, delving into the financial specifics is paramount to lay out a concrete roadmap for the fiscal aspects of your coffee shop.

How Much Does It Cost to Start a Coffee Shop?

Starting a coffee shop is not just about brewing the perfect espresso; it’s also a substantial financial commitment. The cost for opening a coffee shop can range from $80,000 to $250,000. These costs can vary widely based on factors such as location, size of the establishment, equipment quality, and inventory requirements. Moreover, the process of opening a coffee shop might also involve unexpected expenditures, so it’s essential to account for some buffer in your budget.

How Many Ways to Fund Your Coffee Shop?

There are multiple avenues for funding your coffee venture. Traditional bank loans, personal savings, angel investors, crowdfunding campaigns, and partnerships are just a few options. It’s crucial to assess which option aligns best with your business vision and financial situation.

Important Questions to Consider When You Create Your Funding Request If you’re seeking funding, there are several questions you’ll need to answer in your business plan:

• How much money do you need to start and maintain your coffee shop until it becomes profitable?
• What will the funds be used for specifically?
• How do you plan to handle financial challenges that might arise?
• How do you plan to repay any loans or provide a return on investment?

9. Financial Projections

The financial projections section of your business plan forces you to translate your coffee shop vision into numbers, ensuring you’ve accounted for all key metrics that can make or break your venture.

Break-even analysis:

This is the point where your coffee shop’s total revenues equal its total costs. Simply put, it’s when you neither make a profit nor a loss from selling coffee. 

Use this formula:  Fixed Costs / (Price – Variable Costs) = Break Even Point

Projected profit and loss statement:

This will provide a forecast of your expected income and expenses, giving a clear view of your venture’s profitability.

Cash flow analysis:

Essential for understanding the liquidity of your business, this tool is especially crucial for coffee shops, considering the fluctuating expenses and incomes coffee shops offer. When drafting this, consider who will read it, as stakeholders like investors or lenders might have specific expectations.

Coffee Shop Business Plan Template 

• Mission: To offer the community high-quality coffee in a comfortable and vibrant environment.
• Vision: To become the go-to local coffee spot that fosters community connections and coffee appreciation.
• Coffee Shop Description: “Java Junction” will be a modern coffee hub that emphasizes direct-trade coffee beans and a relaxed, inclusive atmosphere.
• Costs: Estimated initial costs are $125,000.
• Profits: Projected annual profit by year two is $75,000.

2. Description of the Coffee Shop

• Coffee Shop Concept: A community-focused café emphasizing artisanal methods.
• Coffee Shop Name: Java Junction
• Coffee Shop Type: Sit-down café with an adjacent mini-library.
• Location: Main Street, Downtown Area – chosen for its high foot traffic.
• Order Fulfillment: Orders taken at the counter with table service for food.
• Working Hours: Mon-Fri (7 am – 9 pm), Sat-Sun (8 am – 10 pm).

3. Menu Offer

• Type of Food and Drink: Coffee, teas, pastries, and sandwiches.
• Offer: From classic espresso shots to unique blends like “Lavender Latte”.
• Unique Selling Point: Every coffee product uses direct-trade beans, ensuring farmer fairness.

4. Market and Competition Analysis

• Market Analysis: The local population includes a mix of professionals, students, and tourists. Many search for quiet spots to work or relax.
• Target Customer: Professionals aged 25-40 and students.
• Size of the Target Customer: Approximately 15,000 individuals.
• Competition Analysis: Three established coffee shops within a mile.
• Size of the Competition: Ranging from small boutique coffee shops to a larger chain.
• Competitors’ Offer: Basic coffee drinks, with limited specialty items.
• Competitors’ Prices: Average of $4 for a coffee drink.

5. Investment Plan (Detailed Cost Analysis)

Investment Cost (One-off): $75,000

• Equipment: $30,000
• Renovations: $20,000
• Initial Stock: $10,000
• Licenses: $5,000
• Miscellaneous: $10,000

Operating Costs (Monthly): $17,000

• Rent: $3,000
• Salaries: $10,000
• Utilities: $1,000
• Stock: $2,000
• Marketing: $1,000

6. Financial Forecast

Year one is projected to break even, with a profit of $50,000 expected in year two, and $75,000 in year three, considering growth and expanding customer base.

• Owner: Jamie Smith, a coffee enthusiast with a business degree.
• Manager: Alex Brown, previously managed a successful coffee chain for five years.
• Baristas: A team of 4 skilled individuals passionate about coffee.

8. Marketing Plan

Java Junction will use a mix of social media marketing, local print advertising, and loyalty programs to attract and retain customers. Regular events, such as “Buy Our Coffee Day” and collaboration with local businesses, will drive foot traffic and community engagement, integral components for starting your coffee shop and making it successful.

This coffee shop business plan sample is hypothetical and serves as a template. Tailoring specifics to your local market, vision, and unique aspects will be necessary. Every coffee shop has nuances that can make them successful, whether it be the coffee products they sell, the environment they cultivate, or the events they host. Focus on what will make your coffee shop stand out and be sure to engage your community.

Tips For Writing a Business Plan For a Coffee Shop

Your business plan becomes the blueprint of your vision. Here are essential tips to consider:

Comprehensiveness is Key: Ensure your plan encompasses all sections you should include, such as marketing, financial projections, and operations. A well-rounded plan provides a holistic view of your business.

Tailor to Your Audience: If you’re presenting to potential investors, focus on profitability and growth projections. For a landlord, emphasize the benefits your coffee shop will bring to their property.

Specialize in Marketing: Given the competitiveness in the coffee industry, it’s crucial to have a solid marketing plan. If marketing isn’t your strength, consider hiring someone to do marketing for your venture. A strong online presence, loyalty programs, and community engagement can set you apart.

Research Your Market: Understand what nearby coffee shops include in their offerings. Identify gaps in the market and strategize on how your shop can fill them.

Stay Flexible: While a business plan provides direction, remain adaptable. The coffee industry is dynamic, and your ability to pivot can prove invaluable.

Separate Sections for Clarity: If your plan becomes too dense, you might want to create a separate document for specific sections like a detailed marketing strategy or an in-depth market analysis. This makes your primary business plan concise and more readable.

Frequently Asked Questions

1. how profitable is owning a coffee shop.

Owning a coffee shop can be profitable, depending on factors like location, quality of products, and management. On average, after expenses, many coffee shops report a profit margin of around 3% to 5%, with some successful ones achieving even higher. However, it’s essential to factor in initial setup costs, ongoing expenses, and market competition.

2. How do I start a coffee shop business plan?

Starting a coffee shop business plan involves multiple steps. Begin by defining your coffee shop’s mission and vision. Conduct market research to understand your target audience and competitors. Then, detail out sections like your product offerings, pricing strategy, marketing plan, financial projections, and operational procedures. If you’re thinking of opening a coffee shop, a well-thought-out business plan is indispensable.

3. What is a business plan for a coffee shop?

A coffee shop business plan is a detailed document that outlines your coffee shop’s objectives, strategies, and operational procedures. It acts as a roadmap, guiding you from the startup phase to establishing a thriving business. Moreover, if you need a coffee shop business loan or investment, this plan becomes crucial in convincing stakeholders of your venture’s viability.

4. What are the 4Ps in a coffee shop business plan?

The 4Ps stand for Product, Price, Place, and Promotion. In the context of a coffee shop:

• Product: What type of coffee and related products will you offer?
• Price: How will you price your coffee? Will it be premium or competitive?
• Place: Where will your coffee shop be located? Is it accessible to your target audience?
• Promotion: How will you market your coffee shop? Will you offer promotions or loyalty programs?

These elements help in creating a marketing strategy tailored to your coffee shop’s unique needs and market position.

Launching a coffee shop is not just about brewing the perfect cup but weaving a narrative that resonates with your community, fostering an ambiance that people gravitate towards, and maintaining a seamless operation that drives profitability. The meticulous creation of a business plan is a pivotal step in this endeavor. It’s the beacon that guides budding entrepreneurs through the complexities of the coffee industry. In such a competitive marketplace, a well-structured, comprehensive business plan can make the difference between a fleeting venture and a thriving institution. To potential coffee shop owners, embrace the process, let your passion shine through in your plan, and remember that every great coffee shop started with a simple idea, much like a single coffee bean ready to brew greatness.

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Cafe Business Plan Template

Written by Dave Lavinsky

Cafe Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their cafes. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a cafe business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Cafe Business Plan?

A business plan provides a snapshot of your cafe as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Cafe

If you’re looking to start a cafe or grow your existing cafe you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cafe in order to improve your chances of success. Your cafe business plan is a living document that should be updated annually as your cafe grows and changes.

Sources of Funding for Cafes

With regards to funding, the main sources of funding for a cafe are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a cafe is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your cafe business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of cafe business you are operating and the status; for example, are you a startup, do you have a cafe that you would like to grow, or are you operating a chain of cafes.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the cafe industry. Discuss the type of cafe you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of cafe you are operating.

For example, you might operate one of the following types:

• Take-Out Cafe: this type of cafe doesn’t have seating (or has limited seating) and is mostly visited by customers looking to grab a coffee and/or bakery item on their way to work or elsewhere.
• Restaurant Cafe: this type of cafe is most similar to a restaurant and offers a full, sit-down menu in a nice atmosphere with a full wait staff.
• Casual cafe: also known as a corporate, student or co-working cafe, this type of cafe typically offers food and drinks from a counter with no waiters or waitresses. Patrons purchase items and consume them in the cafe, often while performing work on their laptops or conversing with friends or colleagues.
• Coffee Shop: This is a popular type of cafe. Coffee shops usually offer a selection of tea, coffee, pastries and other drinks

  In addition to explaining the type of cafe you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business? What is your business concept? What is your unique selling proposition?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the cafe business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the cafe industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards cafes with ultra high speed internet connections, it would be helpful to ensure your location could offer such a service.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cafe business plan:

• How big is the cafe business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key local suppliers in your market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your cafe. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The market analysis section of your cafe business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: local office workers, college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the target audience you choose will have a great impact on the type of cafe you operate. Clearly baby boomers would want a different atmosphere, pricing and product options, and would respond to different marketing promotions than teens.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most cafes primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cafes (and restaurants and/or bakeries depending on the type of cafe you operate).

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes restaurants, supermarkets and customers making coffee and bakery items themselves at home. You need to mention such competition to show you understand that not everyone in your target market will visit a cafe each day.

With regards to direct competition, you want to detail the other cafes or coffee shops with which you compete. Most likely, your direct competitors will be cafes located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

  With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior cafe products?
• Will you provide cafe products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cafe business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of cafe that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, will you offer pastries, soups, items such as café latte, cappuccino, espresso or macchiato?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your cafe. Document your location and mention how the location will impact your success. For example, is your cafe located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your cafe marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your cafe’s front store extra appealing to attract passing customers
• Distributing samples outside the cafe
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites
• Partnerships with local organizations (e.g., gym members get a free cup of cafe with each pastry they purchase)
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cafe such as serving customers, procuring supplies, keeping the cafe clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 10,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.  

Management Team

To demonstrate your cafe’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the cafe, coffee shop and/or restaurant business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in cafes and/or successfully running retail and small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your cafe, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 catering contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for supplies, equipment rentals, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cafe:

• Location build-out including design fees, construction, etc.
• Cost of fixtures like chairs, tables, signage and cafe decor
• Cost of equipment like grinders, espresso machines, blenders, refrigerators
• Cost of ingredients and maintaining an adequate amount of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Summary Putting together a business plan for your cafe is a worthwhile endeavor. If you follow the template above, you will be able to prepare a winning cafe business plan or a coffee shop business plan. You will really understand cafe business planning, business operations, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful cafe.

Café Business Plan FAQs

What is the easiest way to complete my café business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Café Business Plan.

What is the Goal of a Business Plan's Executive Summary?

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how our professional business plan writers can create your business plan for you. Other Helpful Business Plan Articles & Templates

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Wake up and smell the opportunity! Do you make a mean cup of joe? A love for quality coffee and a desire to create a warm, cozy coffee shop or cafe could blend to create the newest caffeine hub for your community. Plan for success with our coffee shop business sample plans.

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BUSINESS STRATEGIES

How to write a coffee shop business plan

• Nirit Braun
• Oct 30, 2023
• 12 min read

A coffee shop business plan is a detailed and strategic document outlining the essential aspects of starting and operating a coffee-focused business. It encompasses a comprehensive analysis of the business's goals, target audience, competitive landscape, marketing strategies, financial projections, operational procedures and more. This plan acts as a roadmap that guides entrepreneurs through the various stages of establishing and running their coffee shop, providing clear direction and a solid foundation for success.

When starting a business, especially in the competitive and dynamic realm of the coffee industry, creating a comprehensive and clear business plan is of paramount importance.

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Top benefits of creating a coffee shop business plan

A well-crafted business plan helps entrepreneurs articulate their business goals, whether it's about offering unique coffee blends, creating a cozy ambiance or supporting sustainable sourcing practices. At the same time, a business plan requires entrepreneurs to identify and understand their target audience. This insight helps tailor marketing strategies, menu offerings and the overall customer experience to meet the specific preferences and needs of the intended customers.

Here's an overview of some key advantages to creating a coffee shop business plan:

Attracting investors and funding: A well-structured business plan acts as a persuasive tool when seeking investors or raising money for your business . It showcases your thorough understanding of the coffee industry, market trends and your strategies for success. This level of preparedness increases your credibility and instills confidence in potential investors, making them more likely to support your coffee shop venture.

Clear resource requirements: Writing a business plan prompts you to identify the specific resources, supplies and staff necessary to launch and operate your coffee shop. This includes everything from coffee beans and brewing equipment to furniture and interior decor.

Strategic financial planning: A comprehensive business plan outlines your financial projections, startup costs, operating expenses and revenue forecasts. This level of financial planning helps you determine how much funding you need to start a business . It also guides you in setting prices, managing cash flow and assessing profitability.

Market understanding and differentiation: Through market research and analysis, a business plan allows you to understand your target audience's preferences, behaviors and expectations. This knowledge helps you tailor your coffee shop's offerings, ambiance and marketing strategies to effectively attract and retain customers.

Risk mitigation: The process of creating a business plan prompts you to identify potential risks and challenges that your coffee shop might face. By acknowledging and addressing these risks early on, you can develop contingency plans and strategies to mitigate their impact.

Operational efficiency: A business plan outlines the operational processes required to run your coffee shop smoothly. It includes staffing plans, inventory management strategies and quality control measures. By establishing efficient procedures from the outset, you can minimize wastage, optimize resource allocation and ensure consistent customer satisfaction.

Goal setting and tracking: Your business plan serves as a benchmark against which you can measure your coffee shop's performance over time. By setting clear goals and key performance indicators (KPIs), you can track your progress and make necessary adjustments to stay on course toward achieving your objectives.

How to create a coffee shop business plan in 6 steps

Now we’ll walk through the six essential steps for crafting a coffee shop business plan tailored to your company's unique needs.

Executive summary

Business and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

Your executive summary is a concise and compelling overview of your coffee shop business plan. It encapsulates the key elements of your plan and provides a snapshot of your business concept, strategies and financial projections. While appearing at the start of the business plan, it's often written last, as it draws from the content of the entire document.

A clear executive summary for a coffee shop business should include:

The essence of your coffee shop: What makes it unique? What kind of experience will customers have when visiting your establishment?

Market potential and your target audience: Explain why your coffee shop is well-positioned to capture this opportunity.

Competitor landscape: Identify what sets your coffee shop apart from the competition. This could be your specialty coffee blends, unique ambiance, sustainable practices or exceptional customer service.

Example executive summary for a coffee shop: "Bean Haven Coffee is a meticulously crafted coffee shop that aims to provide not just beverages, but an immersive coffee experience. We pride ourselves on our curated selection of ethically sourced beans, offering customers the finest hand-crafted brews in a cozy, rustic ambiance. Our competitive edge lies in our commitment to sustainability, from our bean-sourcing practices to our eco-friendly packaging. With a strong emphasis on community engagement and partnerships with local artists, we are set to become a cultural hub that brings people together over a shared love for exceptional coffee. Through strategic marketing campaigns, leveraging social media and collaborating with nearby businesses, we aim to establish Bean Haven Coffee as the go-to destination for coffee enthusiasts and connoisseurs alike. Our projected financials indicate that we will reach profitability within the first 18 months of operation. We seek funding to cover initial startup costs and our business model is designed to achieve sustainable growth and profitability."

02. Company and domain names

Knowing how to name a business is crucial for a coffee shop venture and a key step before you register your business . A strong and memorable name can resonate with customers and differentiate your coffee shop from competitors. Use descriptive words that reflect your coffee shop's essence, whether it's about taste, ambiance or values.

Utilizing a business name generator like the one from Wix can provide inspiration and spark creativity. Play with different combinations of words and ideas until you find a name that feels right. Once you've settled on a name, check its availability for domain registration. A domain name that matches your company name is essential for an effective online presence.

When choosing a domain name consider the following best practices:

Ensure that the domain name reflects your coffee shop's identity and offerings

Choose a name that is easy to spell and remember

Opt for a timeless name that won't become outdated quickly

If possible, include relevant keywords in the domain to improve search engine visibility

Steer clear of names that are easily confused with competitors or other brands

03. Market analysis and research

With more than 38,000 coffee shops in the U.S. alone, there are plenty of competitors to analyze. Including a comprehensive market analysis in your business plan is essential for understanding the competitive landscape and formulating effective strategies. Research your local coffee market, identify existing competitors and analyze their strengths and weaknesses. Determine your target audience's preferences, behaviors and demographics to tailor your offerings and marketing campaigns accordingly.

A well-rounded market analysis can guide your business strategy, helping you position your coffee shop effectively, develop compelling value propositions and devise strategies to capture your desired market share.

04. Operations plan

The operations plan is a crucial section of your coffee shop business plan. It outlines the practical aspects of running your coffee shop. Use it to describe your chosen location and its significance for foot traffic, accessibility and target audience reach.

Then, take the opportunity to detail the interior design, layout and ambiance of your coffee shop to create a welcoming atmosphere. Next be sure to list the equipment needed for brewing, food preparation and service. Ensure it aligns with your menu and production capacity. Finally define the roles and responsibilities of your staff, from baristas to managers, and outline their qualifications and training needs.

05. Marketing and advertising strategies

The marketing and advertising portion of your business plan outlines your strategies for promoting your coffee shop and attracting customers. Depending on your target audience and brand positioning for this type of business , consider a mix of traditional and digital marketing methods. This means using social media platforms like Instagram, Facebook and Twitter to showcase your coffee creations, engage with customers and share your coffee shop's story. Collaborate with influencers, local organizations or other businesses to expand your reach and tap into new customer segments.

Additionally, you can choose to participate in community events, farmers' markets and collaborations with other local businesses to increase your visibility. Also consider implementing loyalty programs that reward repeat customers and incentivize them to visit regularly.

You’ll need to develop a suite of brand assets to use in your marketing as well, starting with a company logo. You can use a free logo maker to get a professional design in minutes.

Learn more: How to make a website

06. Financial plan

The cost to start a coffee shop business can range from $50,000 for a mobile operation to over $400,000 for a brick-and-mortar location with booth seating and a drive-thru. This hefty expense is just another reason why a financial plan is so important.

The financial plan is the backbone of your coffee shop business plan. It outlines your startup costs, operating expenses, revenue projections and funding strategy. Investors and lenders will closely scrutinize this section to assess the viability of your coffee shop venture, so remember to do the following:

Detail the initial investment required for equipment, interior design, licenses and permits

Estimate ongoing costs such as rent, utilities, supplies and salaries

Provide realistic revenue forecasts based on your expected capacity and customer traffic

Specify how you plan to secure funding

Highlight when you anticipate reaching profitability and generating positive cash flow

By meticulously planning your finances, you demonstrate a solid understanding of the financial aspects of your coffee shop business and showcase its potential for success.

Coffee shop business plan examples

Below we’ve put together business plan templates for two hypothetical coffee shop businesses, including all the sections discussed in our previous how-to steps.

Coffee shop business plan template 1: Coffee Haven Café

Coffee Haven Café is a charming coffee shop dedicated to delivering a premium coffee experience in a cozy and inviting setting. Our unique blends, ethically sourced beans and commitment to sustainability set us apart in a competitive market. By fostering community engagement and partnering with local artists, we aim to become a cultural hub that brings people together over exceptional coffee. Through strategic marketing efforts and a strong online presence, we project profitability within 18 months.

Company and domain name

Company name: Coffee Haven Café

Domain name: www.coffeehavencafe.com

Our marketing analysis revealed a growing demand for specialty coffee in our target location. We've identified key competitors and highlighted their strengths and weaknesses. Our target audience consists of young professionals and students who value quality and ambiance. By understanding these dynamics, we can tailor our offerings and marketing strategies effectively.

Location: Centrally located in a busy commercial area with high foot traffic

Premises: Rustic and inviting interior design that promotes relaxation and conversation

Equipment: High-quality espresso machines, grinders, brewing equipment and display cases for baked goods

Staffing: Experienced baristas, friendly waitstaff and a dedicated manager to oversee operations

Social media: Engage customers through Instagram, Facebook and X with enticing coffee shots and behind-the-scenes content

Local events: Participate in local festivals, art exhibitions and collaborate with nearby businesses for cross-promotions

Content marketing: Regular blog posts on coffee trends, brewing tips and spotlight features on local artists

Loyalty programs: Offer a loyalty card program with rewards for frequent visitors

Partnerships: Collaborate with nearby bookstores for reading sessions and local influencers for social media endorsements

Startup costs: $70,000 for equipment, furnishings, licenses and initial inventory

Operating expenses: Estimated monthly costs of $12,000 covering rent, utilities, supplies and staff salaries

Revenue projections: Projected revenue of $300,000 in the first year, growing to $450,000 in the second year

Funding strategy: Initial funding from personal savings and a small business loan from a local bank

Profitability timeline: Aim to achieve profitability within 18 months of operation

Coffee shop business plan template 2: Brew & Gather Coffee House

Brew & Gather Coffee House is a community-focused coffee shop aiming to create a warm and inclusive space for coffee enthusiasts. Our commitment to locally sourced ingredients and artisanal brewing techniques sets us apart. By fostering partnerships with neighboring businesses and hosting regular events, we aim to become a staple in the neighborhood. Our projected financials indicate profitability within the first two years.

Company name: Brew & Gather Coffee House

Domain name: www.brewandgathercoffee.com

Through extensive market research, we've identified an opportunity to serve a diverse community seeking an authentic and welcoming coffee experience. We've assessed competitors' offerings and identified an untapped niche. Understanding our target audience's preferences and values will guide our menu and marketing strategies.

Location: Situated near a local park, providing an oasis for relaxation and community gatherings

Premises: Modern yet cozy interior design with flexible seating arrangements to accommodate groups and individuals

Equipment: State-of-the-art espresso machines, pour-over stations and an open bakery display

Staffing: A blend of skilled baristas, friendly hosts and a community engagement coordinator

Social media: Utilize Instagram and TikTok to showcase brewing techniques, share customer stories and host virtual coffee-tasting sessions.

Local events: Host open mic nights, book clubs and workshops to engage the community.

Content marketing: Publish a monthly newsletter featuring coffee culture insights, staff spotlights and local partnerships.

Loyalty programs: Introduce a tiered membership program offering exclusive discounts and early access to events.

Partnerships: Collaborate with local farmers, artisans and musicians to create a truly immersive community experience.

Startup costs: $100,000 for leasehold improvements, equipment, permits and initial inventory

Operating expenses: Projected monthly expenses of $15,000, covering rent, utilities, wages and supplies

Revenue projections: Anticipate revenue of $350,000 in the first year, with a 15% increase in the second year

Funding strategy: Initial investment from personal savings and a crowdfunding campaign targeting the local community

Profitability timeline: Aim to reach profitability within the first two years of operation

How profitable is a coffee shop?

The profitability of a coffee shop can vary depending on a number of factors, including location, business model and marketing strategy. However, in general, coffee shops can be quite profitable.

According to a report by IBISWorld, the average profit margin for coffee shops is 8.33%. This means that for every $100 in revenue, coffee shops generate $8.33 in profit.

Some coffee shops are even more profitable. For example, coffee shops located in high-traffic areas, such as airports and office buildings, can generate profit margins of up to 15%. And coffee shops that sell specialty coffee drinks and food items can also generate higher profit margins.

Here are some tips for increasing the profitability of your coffee shop:

Choose a good location. A good location is essential for success. Look for a location that is convenient for potential customers and has high visibility.

Offer a unique selling proposition. What makes your coffee shop different from others? What can you offer that your competitors cannot?

Provide excellent customer service. This is essential for building a loyal customer base. Make sure your staff is friendly and knowledgeable, and that they are always willing to go the extra mile for your customers.

Market your coffee shop effectively. Let potential customers know about your coffee shop and the unique offerings you have. You can do this through online marketing, social media and word-of-mouth.

Control your costs. Coffee shops have high costs, so it's important to control your costs as much as possible. This means negotiating good deals with your suppliers, managing your inventory carefully and keeping your labor costs under control.

Why do coffee shops fail?

There are a number of reasons why coffee shops fail. Some of the most common reasons include:

Poor location: A coffee shop in a bad location won't attract enough customers to be successful. Coffee shops need to be located in areas with high foot traffic, such as near office buildings, universities and parks.

High overhead costs: Coffee shops have high overhead costs, such as rent, utilities and labor. If a coffee shop can't generate enough revenue to cover its overhead costs, it will eventually fail.

Poor management: Poor management can lead to a number of problems, such as low customer satisfaction, high employee turnover and financial difficulties. Coffee shop owners need to have a strong business plan and be able to manage their finances effectively.

Lack of marketing: Coffee shops need to market themselves effectively to attract new customers and keep existing customers coming back. Coffee shop owners need to develop a marketing plan and budget, and they need to track their results to see what is working and what is not.

Competition: The coffee shop industry is very competitive. Coffee shops need to offer something unique to stand out from the competition.

Coffee shop business plan FAQ

How do you start a coffee shop business plan.

To start a coffee shop business plan, you need to consider the following factors:

Location: Choose a location that is convenient for potential customers and has high visibility.

Target market: Identify your target market and tailor your business plan to their needs and preferences.

Menu: Develop a menu that includes a variety of coffee drinks and food items that will appeal to your target market.

Pricing: Set prices that are competitive and generate a sufficient profit margin.

Operating costs: Estimate your operating costs, such as rent, utilities, labor and inventory.

Marketing: Develop a marketing plan to reach your target market and generate awareness of your coffee shop.

How many cups of coffee does a coffee shop sell per day?

Is a small coffee shop profitable, what percentage of coffee shops are successful, want to cook up another business plan.

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Coffee Shop Business Plan Outline: A Roadmap to Café Excellence

In today’s fast-paced world, coffee shops have become more than just places to grab a quick caffeine fix. They serve as community hubs, meeting places, and havens for individuals seeking a cozy ambiance and a delicious cup of coffee. If you’re considering starting your coffee shop, having a well-thought-out business plan must be the first thing you need to consider.

A coffee shop business plan should have an executive summary, company description, market analysis, product and services, marketing and sales strategies, organization and management structure, financial projections, operations and logistics, SWOT analysis, sustainability efforts, risk management, and an exit strategy.

In this article, I will provide you with an outline to help you kick-start your coffee shop venture.

Table of Contents

1. Executive Summary

The executive summary is a vital section of your coffee shop business plan as it provides a concise overview of your venture. It serves as a snapshot of your entire plan, offering potential investors or partners a clear understanding of your business.

In this summary, you should outline your vision, target market, unique selling proposition, and financial goals succinctly. By encapsulating these key elements, the executive summary acts as a powerful tool to grab the attention of readers, enticing them to delve deeper into your comprehensive plan and consider the potential of your coffee shop business.

Read more about: Business Plan on Coffee Cafe: Coffee Dreams to Reality

2. Company Description

In the section dedicated to describing your coffee shop concept, it is important to provide a comprehensive overview. Start by sharing the name, location, and mission statement of your coffee shop. Dive deeper into the type of coffee shop you envision, whether it’s a welcoming neighborhood café, a specialty coffee roaster focusing on single-origin beans, or a trendy espresso bar serving innovative brews. 

Emphasize what sets your coffee shop apart from competitors, such as your unique menu offerings, sustainable sourcing practices, or commitment to supporting local artisans. Additionally, discuss your strategies for delivering exceptional customer experiences, such as providing friendly and knowledgeable staff, creating an inviting ambiance, and offering personalized service that exceeds expectations.

By clearly communicating your vision and differentiation, you will pique the interest of potential investors and partners, showcasing the potential for success in the competitive coffee shop industry.

3. Market Analysis

Making a thorough market analysis is a crucial stage in creating your business plan for your coffee shop. It entails a thorough investigation of both the local coffee scene and your target demographic. You can learn a lot about the requirements, preferences, and behaviors of your customers by examining the demographic, psychographic, and geographic elements that affect their preferences.

Furthermore, assessing the competitive landscape allows you to understand existing coffee shops, their strengths, weaknesses, and market positioning. This analysis provides you with a clear understanding of the market opportunities and potential challenges you may encounter.

With this knowledge, you can make adjustments to your branding and marketing tactics to further distinguish your coffee shop and draw in your target demographic. You lay the groundwork for a successful coffee shop business that is in sync with the local coffee scene and ready for development by doing a thorough market analysis.

4. Products and Services

Describe the variety of coffee products and additional offerings you plan to provide. Discuss the sourcing of your coffee beans, whether you intend to partner with local roasters or establish direct trade relationships with coffee farmers. Highlight any unique or specialty beverages you plan to offer, such as cold brews, pour-overs, or signature blends. Additionally, outline any complementary products or services, such as pastries, sandwiches, or merchandise.

Read more about: Business Plan of Coffee Shop: Aroma and Ambition

5. Marketing and Sales Strategy

When describing the variety of coffee products and additional offerings in your coffee shop business plan, provide a comprehensive overview. Start by discussing the sourcing of your coffee beans, showcasing your commitment to quality and sustainability. You may highlight partnerships with local roasters, ensuring a focus on supporting the community and promoting local flavors. Alternatively, you might emphasize direct trade relationships with coffee farmers, emphasizing fair and ethical practices.

In addition to standard coffee options, mention any unique or specialty beverages that will set your coffee shop apart. These could include cold brews with innovative flavor profiles, meticulously brewed pour-overs showcasing the nuances of different coffee beans, or signature blends crafted exclusively for your shop.

Outline any complementary products or services that will enhance the customer experience. This may include a delectable selection of pastries made in-house or sourced from local bakeries, sandwiches crafted with fresh ingredients, or merchandise like branded mugs and apparel that customers can purchase as mementos of their visit.

6. Organization and Management

In outlining the structure of your coffee shop business, it is important to provide a clear understanding of the roles and responsibilities of key personnel. Discuss the qualifications and experience of your management team, underscoring their expertise in the café industry and their ability to drive your business forward. If you are a sole proprietor, detail your responsibilities and lay out your plans for hiring additional staff as your business grows.

Highlight the significance of training programs that will equip your team with the necessary skills to deliver exceptional service. Emphasize your commitment to fostering a positive work culture, where employees feel valued and motivated to provide outstanding customer experiences.

7. Financial Projections

When presenting your financial projections in the coffee shop business plan, it is crucial to provide a comprehensive overview of your financial expectations. Start by outlining the startup costs involved, including expenses for rent, renovation, equipment, furniture, permits, and licenses. 

Next, detail your revenue forecasts based on your target market, pricing strategy, and projected sales volume. Consider factors such as seasonality and local economic conditions that may impact your revenue streams. 

Include a detailed budget that encompasses all operating expenses, including costs for inventory, supplies, utilities, marketing and advertising, staff salaries, and insurance. This will demonstrate a clear understanding of the financial requirements of running the coffee shop on a day-to-day basis.

Consider creating a three-year projection that illustrates the growth potential of your coffee shop. This can include anticipated increases in revenue, expansion plans, and adjustments to expenses as your business matures.

Furthermore, discuss your funding requirements and potential sources of investment. If you plan to seek financing from banks or investors, highlight the expected return on investment and outline how the funds will be utilized to support the growth and success of your coffee shop.

Read more about: Business Plan of a Coffee Shop: Bean Business Blueprint

8. Operations and Logistics

When providing insights into the day-to-day operations of your coffee shop in the business plan, it is essential to cover key aspects. Begin by describing the layout and design of your space, considering factors such as seating capacity, restroom facilities, and strategic placement of equipment to optimize workflow.

Discuss your inventory management processes, highlighting how you will track stock levels, manage orders, and ensure a consistent supply of coffee beans, ingredients, and other necessary items. Mention your supplier relationships and any efforts to source high-quality products.

Outline your planned hours of operation, taking into account peak hours and potential variations based on customer demand. Address staffing requirements, detailing the number of employees needed to run your coffee shop effectively. Additionally, describe your employee scheduling approach to ensure smooth operations and adequate coverage during busy periods.

9. SWOT Analysis

Conducting a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is crucial for evaluating both the internal and external factors that can impact your coffee shop business. Start by identifying your strengths, which could include aspects like a unique menu, exceptional customer service, a prime location, or a strong brand presence. These strengths differentiate your business from competitors and contribute to your competitive advantage.

Next, assess your weaknesses and areas that require improvement, such as limited parking space, lack of visibility, or a need for additional staff training. Addressing these weaknesses will help you enhance the overall efficiency and performance of your coffee shop.

Identify growth opportunities, such as expanding your product offerings, exploring new markets, or partnering with local businesses for cross-promotion. Capitalizing on these opportunities can lead to increased revenue and market share.

Finally, consider potential threats that may arise from competition, changing consumer preferences, or economic fluctuations. Analyze how these threats could impact your coffee shop and develop strategies to mitigate their impact.

10. Sustainability and Social Responsibility

In today’s coffee industry, sustainability and social responsibility play an increasingly significant role. It is crucial to address this growing importance in your coffee shop business plan. Discuss your commitment to environmentally friendly practices, such as using biodegradable cups, implementing recycling programs, or sourcing and promoting fair trade coffee.

Highlight any partnerships with local organizations or initiatives that align with your values and contribute to a sustainable coffee supply chain. Communicate your dedication to giving back to the community and fostering a positive impact through initiatives like supporting local farmers, donating a portion of profits to charitable causes, or participating in community events.

Read more about: Business Plan Mobile Coffee Truck: The Roaming Baristas

11. Risk Management

When running a coffee shop, it is essential to outline the potential risks and challenges that may arise. These can include market saturation, where competition is intense, changing consumer trends that may impact demand, rising costs of ingredients affecting profitability, or unforeseen events like natural disasters disrupting operations.

To mitigate these risks, develop contingency plans that outline steps to be taken in response to each potential challenge, ensuring business continuity. Additionally, consider obtaining comprehensive insurance coverage to safeguard your assets and investments in case of unexpected circumstances.

12. Exit Strategy

While it may appear premature, including an exit strategy in your long-term planning is essential. Outline the various options for exiting your coffee shop business, such as selling it to a new owner, considering franchising opportunities, or passing it down to a family member as a generational business.

Discuss the factors that would trigger an exit, such as retirement, changes in personal circumstances, or the achievement of specific financial goals. Additionally, detail the steps you would take to ensure a smooth transition, such as documenting standard operating procedures, maintaining accurate financial records, and establishing relationships with potential buyers or successors.

By incorporating an exit strategy into your business plan, you demonstrate foresight and preparedness for the future, enabling you to navigate potential transitions effectively and maximize the value of your coffee shop business.

Crafting a detailed coffee shop business plan is crucial for launching a successful venture in the café industry. A well-executed business plan serves as a roadmap to guide your coffee shop’s growth and prosperity. With passion, dedication, and a solid plan, you’ll be well on your way to brewing success in the world of coffee. Good luck on your coffee shop journey!

Frequently Asked Questions

Questions: How can I identify my target market for a coffee shop?

Answer: Analyze demographics such as age, gender, income level, and location. Think on psychographic elements like values, interests, and way of life. Research local coffee consumption habits and preferences

Question: What are some effective marketing strategies for a coffee shop?

Answer: Effective marketing strategies for a coffee shop include social media engagement, creating an enticing online presence, hosting events or workshops, partnering with local businesses or influencers, offering loyalty programs, providing personalized customer experiences, and leveraging community involvement through sponsorships or charity initiatives.

Question: What are some common challenges in the coffee shop industry?

Answer: It include intense competition, changing consumer preferences, rising ingredient costs, staffing and training issues, maintaining consistent quality, managing inventory effectively, coping with seasonality, keeping up with industry trends and innovation, and adapting to evolving regulations and health standards.

To learn more on how to start your own coffee shop, check out my startup documents here.

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Hi! I’m Shawn Chun

My adventure in coffee began when I first launched my first coffee shop back in the early 2000s. I had to figure out so many things on my own and to make it worse within 2 years of opening two large corporate coffee chains moved in just blocks away from me!

As I saw smaller and even some larger coffee shops in the neighborhood slowly lose customers to these giant coffee chains and slowly close up shop, I knew that I had to start getting creative…or go out of business.

I (like you may be) knew the coffee industry well. I could make the best latte art around and the foam on my caps was the fluffiest you have ever seen. I even had the best state-of-the-art 2 group digital Nuova Simonelli machine money could buy. But I knew that these things alone would not be enough to lure customers away from the name brand established coffee shops.

Eventually, through lots of trial and error as well as perseverance and creativity I did find a way to not only survive but also thrive in the coffee/espresso industry even while those corporate coffee chains stayed put. During those years I learned to adapt and always faced new challenges. It was not always easy, however, in the end, I was the sole survivor independent coffee shop within a 10-mile radius of my location. Just two corporate coffee chains and I were left after that year. All told the corporate coffee chains took down over 15 small independent coffee shops and kiosks and I was the last one standing and thriving.

Along the years I meet others with the same passion for coffee and I quickly learned that it is not only “how good a barista is” that makes a coffee shop successful, but the business side of coffee as well.

Hence why I started this website you are on now. To provide the tools and resources for up and coming coffee shop owners to gain that vital insight and knowledge on how to start a coffee shop successfully.

Stick around, browse through my helpful blog and resources and enjoy your stay! With lots of LATTE LOVE!

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Starting a cafe is no small endeavor, but anyone who appreciates the Parisian way of life can tell you how integral a local, welcoming cafe is to any community. But when you’re starting a business, there are several things to consider and processes to complete to make it official.

Wondering how to open a cafe in your neighborhood? We’ve got you covered. In this guide, we’ll provide the tools to help you learn how to open a cafe and build a successful business.

Know your competition

There are over one million restaurants and over 30,000 coffee shops in the United States. New cafe owners can expect some steep competition. Of course, these dining options are more concentrated in some areas than others. Your neighborhood may be in desperate need of a great new cafe. That’s why your first step in starting a cafe should be to get to know your competition.

Maybe there is an obvious need you can fill, or perhaps you can take a look at what isn’t working for other local cafes and create a superior option for consumers. Look back at your town’s business records. Which cafes have closed in recent years? Do you know why they closed? Scour review sites like Yelp to see why your competition is being praised and criticized. But most importantly, make sure your business can contribute to local life before you invest too much time or money toward starting a cafe.

Create a business plan

No matter what type of business you want to start, creating a business plan is key to launching any successful endeavor. Your business plan is made up of eight sections, but you can alter your business plan to suit the specific needs of your cafe. The goal is to create a plan that will keep you on track, organize your research and prepare to prove your value to potential investors. Here are some of the topics you'll want to hit.

Executive summary

The executive summary gives you a chance to summarize your company’s value proposition. While this section leads your business plan, you will likely write it last as a summary of the subsequent sections of your business plan. You’ll use this section to explain what your business does, as well as what your current state of affairs looks like. You will also give a financial breakdown for where you see the business in three to five years. And of course, you can't forget to include what factors will drive your business's success.

Market analysis

This section builds on our first step and offers a more in-depth and higher-level analysis of your industry , market and any potential competitors. Utilize this section as an opportunity to prove your knowledge of the market and what unique void your cafe will fill.

The number one reason businesses fail is a lack of market need for their products or services, so make sure there’s demand for your cafe before you continue with the next steps.

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Marketing and sales plan

If you want your business to succeed, you’re going to need a little more than word of mouth to reach new customers — at least when you’re first starting out. Once you’re more established, word-of-mouth marketing can be an effective way to gain new customers.

Your marketing strategy and sales plan should have a two-part approach. Positioning and promotion. How are you going to position your products to customers? What makes your goods or services special or valuable? Now that you know what your sell is, come up with a promotional plan that will get your brand in front of the eyes and ears of customers.

Financial plan and projections

When you share your financial plan and projections, you’ll give a glimpse at the current state of your business finances. You’ll also project where you see your finances going in the future based on your expected sales, expenses and more. Existing businesses that are creating, or updating, a business plan can use data from their past financial performance. They may want to include information such as income history, cash flow and balance sheets. If you’re just starting your cafe, you’ll likely have to use research and estimations to complete this section.

Learn the rules

Like any food services business , operating a cafe comes with an added degree of responsibility to your consumers, which is why the government will hold you accountable for cleanliness and safety. Before you open a cafe, learn more about the food services regulations in your state . Each state has different rules in place, so make sure you’re familiar with your state’s and devise a plan to comply. If possible, talk to other small business owners in the food services industry to be sure you have all the information you need.

Get the proper licenses, permits and insurance

You’re well on your way to starting a cafe, but before you can continue you’ll need to make sure you’re legally allowed to operate your business. The legal requirements of registering and licensing your business will vary based on your industry and location. However, you will likely need multiple business licenses at the state, federal, and local levels when starting a cafe.

Again, because you’ll be handling and serving food, you’ll be required to obtain more licenses and permits than a non-food services business, including food and health code licenses, health department permits, and more. If you plan on serving alcohol in your cafe, you’ll also need a liquor license. Additional licenses or permits may apply, including building, zoning or land-use permits; signage permits; and more.

If you plan on hiring employees to work in your cafe, you'll also need to obtain an employer identification number, or EIN. This will be required for tax purposes, among other things, but even if you don’t plan on hiring employees, there are several benefits of getting an EIN.

Additionally, you will need to obtain some type of business insurance for your cafe. If you have employees, you’ll be required to carry workers' compensation, unemployment, and potentially disability insurance. General liability and commercial property insurance are also common types of coverage. However, for the food services industry specifically, you’ll want to look into even more insurance policies, such as liquor and auto liability, fire, and food contamination insurance.

If you haven’t consulted with a business lawyer yet, now is a good time to do so to ensure you’re starting a cafe that is compliant with the law and protected from any potential issues down the road.

Hire the right people

A good cafe can make you feel right at home. And no one wants to feel uncomfortable in their own home. Thus, it’s important to hire cooks, servers, cashiers and management that will commit to maintaining your brand’s level of quality so that both you and your customers feel comfortable.

Not only do you want to hire the best employees, but you also want to create a productive and safe work environment so you can retain your talent. And if you’re new to hiring, avoiding these mistakes can help the process go more smoothly.

Start Your Dream Business

Find small business funding

At some point along this journey, you likely wondered, "How much does it cost to open a cafe?" The costs will depend on your cafe’s location, renovation, marketing, employment and supply needs. There’s a very good chance you’ll need to find a business loan for your cafe to help with startup costs. There is no one-size-fits-all approach to business funding, so take your time when you consider what path you want to take. You may find the following funding options are a good fit for your business.

Business loans: While some business loans , such as SBA loans , may be out of reach for a brand-new business, if your cafe has been operating and profitable for a few years, these could be a great solution to your cafe’s funding needs.

Business lines of credit : With more flexibility than a standard business loan, a business line of credit gives you a set amount of money from which you can draw to cover your business expenses.

Business credit cards: A business credit card is a good option for startup business owners whose lack of credit history and time in business may put more traditional funding options out of reach. In fact, a 0% intro APR credit card can be treated almost like an interest-free loan. Just make sure you have a plan to pay off your balance before the introductory offer ends.

Equipment financing: Starting a cafe comes with significant upfront costs due to the equipment required, including kitchen appliances, furniture and more. With equipment financing , a lender fronts you the money specifically for the purchase of equipment, which then serves as collateral on the loan, making this type of financing easier to qualify for than other options.

Startup funding: There are some types of startup financing that cater toward new businesses, such as SBA microloans and some business grant . You may also turn to crowdfunding to get your cafe business off the ground.

Find and manage supplies

Whether you’re all about the farm-to-table movement or will be offering a very specific item, you need to get your suppliers settled before opening your cafe. How you source your ingredients, as well as less thrilling supplies like to-go containers and utensils, is an integral part of running a cafe. You’ll want to sit down and calculate how much inventory to carry, as well as how much it will cost and where you’ll source it from.

Don’t forget to look up reviews of your suppliers or ask for customer testimonials. You need to work with suppliers you can rely on. Feel free to make the rounds in your local entrepreneur network, as well. Recommendations from business owners you trust are a great place to start.

Next, you’ll have to create an inventory system that is easy to follow and reliable. Any cafe worth its salt knows you can’t risk accidentally running out of coffee filters on a busy Sunday morning. A good place to start may be with an inventory management app so you can keep track of what’s going in and out of your cafe, and when.

Choose a POS system

You’re likely dreaming of the day you’ll make your first dollar. While you may want to hang that dollar up on the wall, you’re also going to want to have systems in place that ensure you receive payment properly for every sale you make. A point-of-sale system will be essential to process these payments. While there are various POS systems to choose from, you’ll likely want to opt for one geared specifically toward business in the food services industry. Finding a good POS system for your cafe is a business necessity and will help all of your transactions run smoothly.

Build your dream cafe

When you first started thinking about how to open a cafe, this is likely what you imagined. Now that the paperwork and less creative work has been established, it’s time to do the work you love: Find your perfect location, hunt down the decor that gives you all the good vibes, build the perfect menu, play around with ideas for how to make your cafe stand out.

Visit other cafes and take notes on what you like and dislike. Is free Wi-Fi a must? How about comfy chairs or pretty plants? Do you like a menu with a lot of versatile choices or a more specialized one? Stay true to your vision and beliefs and you'll create a cafe that customers will flock to.

The bottom line

There will be countless long days spent making your cafe dreams a reality. Hopefully, this guide on how to start a cafe business will give you the jumping-off point you need. With these steps accomplished, you’ll be in a great position to start welcoming customers into your new cafe. Where you take it from there is up to you!

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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The Ultimate Coffee Shop Business Plan and Template

If you are looking to write a coffee shop business plan, you have come to the right place.

A coffee shop business plan is an essential tool for coffee shop owners or people who want to open a coffee shop. A business plan will help you plan your strategy for success and act as a guide as you look to build your coffee shop.

In this article, we’ll look at why you should write a business plan for your coffee shop or cafe, as well as provide you with a sample and a template that contains inspiration for the things you should include in your coffee shop business plan.

Table of Contents

• 1 Why Write a Coffee Shop Business Plan?
• 2.1 Executive Summary
• 2.2 Company Overview
• 2.3 Market and Customer Analysis
• 2.4 Sales and Marketing Plan
• 2.5 Management Team
• 2.6 Financial Plan
• 3 Wrapping Up

Why Write a Coffee Shop Business Plan?

The basic idea behind a coffee shop is simple. The business needs to sell enough coffee products to cover costs and make a profit. However, many variables will define whether your business is successful.

A coffee shop business plan will help you plan a strategy for success. It will consider factors such as opportunities, risks, and how you will market yourself . By having a good idea of this before you start a coffee shop, you will be better placed to overcome or avoid any difficulties.

Here are some examples of how a business plan could help iron out any difficulties:

• While creating the market analysis section, you may decide that competition is too intense. If this is the case, you could look for a new area with fewer competitors or find a way to make your coffee shop business stand out.
• By creating a marketing plan before you open, you can put yourself in an excellent position to make sales from the moment you start a coffee shop.
• By creating cash flow projections, you will be able to spot any potential financial issues well before they come to light, preventing cash flow problems.

Without a business plan, you would either not know about the potential difficulties listed above, or you would be aware of them but lacking any defined strategy for overcoming them. By creating a coffee shop business plan, you can tackle issues with a clearer head.

Business plans are also essential documents if you plan to apply for funding for your coffee shop.

You’ll likely need to submit the business plan to the bank when applying for a loan, or to investors when applying for equity funding. Having a well-thought-out business plan shows you have done your market research and analyzed your idea which helps give investors an overview of the risks and potential rewards of investing.

If you are going to use your business plan to apply for funding, you’ll need to go into a little more detail about the financials of your business. This will include your income and expenses and you’ll also need to include a section that discusses how you will use the money you’re raising.

Coffee Shop Business Plan Template

A Google search will reveal differences when it comes to the exact sections you should include in your coffee shop business plan.

Nonetheless, a coffee shop business plan template will include the sections listed below. In this part of the article, we’ll go through a coffee shop business plan template and discuss what you should include in each section.

Executive Summary

The executive summary is a short overview of your coffee shop business plan. It should include all the important details about your business. When deciding what to include, think about what you would want someone to see if they told you they would only read this one section of your plan.

Open your executive summary with a statement about what your coffee shop business is all about. Talk about what it will offer that is unique and mention why you think it will be successful. Is it the only coffee house in town, for example?

Coffee shop name: AI Coffee Shop

Executive Summary:

AI Coffee will serve high-quality coffee to office workers and business people who work nearby. We will sell espresso-based drinks with a focus on providing quality at speed. We will sell coffee to take away as well as to eat in, with an indoor seating area with space for 25 customers in our coffee shop.

While there are other coffee shops in the area, we believe that there is demand for more — especially ones that focus on a high-quality product. We will also provide a light lunch menu and pastries that we believe will differentiate us from other coffee shops in the area. 

Company Overview

In the company overview section, you should include practical details about your coffee shop business. This will include:

• The structure and ownership of your coffee shop
• The staff you plan to hire and what you will pay them
• Your company’s mission statement, and startup expenses

While this may seem like a lot of work, the good news is this also serves as a way to kill two birds with one stone. As you flesh out your company’s goals & vision statements, it’s important to track this information in an internal wiki . Not only will this help your business stay true to its course, but it can also serve as a great resource for your staff.

AI Coffee will be a privately held company owned entirely by Mr Smith, who will also manage the coffee shop. We will hire two full-time employees with at least two years of barista experience, as well as four part-time employees to help during busy periods.

Startup costs for the coffee shop will be $70,000, which will be spent on rent, renovations, and purchasing equipment. The owner has put up half the money and has borrowed half from a bank. Based on annual sales of $160,000 and after costs and wages, we expect to be profitable within the second year. 

Market and Customer Analysis

In the market analysis section, you should include details about the local market. This can include information on competitors, such as other coffee shops or any fast-food joints, restaurants, or bars that you think will be competing for your coffee shop’s money.

You should also outline what makes your coffee shop business unique and why you think it can be successful despite the competition. You can also include wider information about the coffee industry.

In the customer analysis section, you need to include information about your target market. Include details on who they are and why you think they will like your coffee shop, with metrics where possible. If you performed market research before starting your coffee shop business plan, include that here.

Market Analysis

The coffee industry is expected to keep growing between 2020 and 2024 in the U.S. Research suggests that coffee is one of the most consumed beverages in the country, with the average person drinking two cups per day. We believe that this growth, plus the high volume of coffee people drink each day, makes opening a coffee shop a good business opportunity . 

Competitor Analysis

AI Coffee will be located in a vibrant district that is seeing offices open up and new companies move in. There are currently two other coffee shop competitors in the immediate area, but we believe there is room for more.

Our shop’s main advantages are that it is closer to a new office building than the other shops. We also plan to differentiate ourselves by offering a small lunch menu, unlike any of the existing coffee shops, as well as various customer loyalty schemes . 

Customer Analysis

The location of the coffee shop has high footfall, especially before and after work and during lunchtimes. The area has a high proportion of local professionals who can afford to spend money on coffee and other drinks. 

The office blocks in the immediate vicinity are home to around 2,500 people. There are also other buildings being developed nearby. The location is also close to shopping and entertainment districts. We expect to receive significant revenue from passersby, who will keep us busy during the day. 

Sales and Marketing Plan

Before you start a coffee shop, you should have a clear idea of what your business’s sales strategy will be.

Your sales strategy contains practical details on how you will handle sales. You should also include sales forecasts and how you have come up with these forecasts. In this section, you should include information about the products you will sell and your pricing strategy.

Your marketing plan will discuss the strategies you will use to get customers through the door. Discuss your budget and expected returns on investment. If you have a particularly complex marketing plan, you may want to create a separate document for this and only include the highlights in your business plan.

AI Coffee will open from 7.30 a.m. until 7.30 p.m. seven days a week. We expect the hours immediately before and after office hours, as well as between 12 p.m. and 1 p.m., to be the busiest of the day, with much of our sales being to take out. 

We will use a commercial espresso machine and we expect to be able to produce up to a maximum of 70 cups of coffee per hour, which should be sufficient during busy times. 

We will sell our espresso-based drinks and tea at between $3 and $6, depending on the drink and the size. We will sell pastries at between $2 and $5, as well as light meals at between $7 and $12. These meals will be packaged so customers can either eat them on-site or take them away. 

We expect to generate around $730 per day from food and drink sales. 

Marketing Plan

We will market our coffee shop to customers in the nearby area through display marketing in relevant locations. We will also use social media marketing to target people nearby, and we will connect with people through our social media accounts. We will use these accounts to keep customers updated with new menu items as well as offers and discounts. 

We will also create a website and an app, which we will use to run a customer loyalty scheme . We will provide the option to order coffee through the app and pick it up at the shop. We think this will appeal to busy professionals. 

Our marketing will focus on the quality of the coffee we sell, as well as the benefits of our shop to office workers ( in-app ordering ). During the week after we open, we will offer substantial discounts on coffee to attract people to our business. This offer will be central to our marketing during this period. 

We will encourage repeat customers using a loyalty scheme that will give them a free cup of coffee when they buy eight drinks.

Our marketing budget will be $500 in the first two months, but we will cut this down to around $350 a month after that. 

Operating Plan

The operating plan will include details of how you will run your coffee shop. This will include costs, as well as specifics about things like opening times, food and drink production, prices, and more.

It will also allow you to spot any potential conflicts. For example, if you plan to serve 150 office workers between 7:30 a.m. and 9 a.m., can you do it with only two members of staff or would you be better off hiring another employee?

You can also use this section to explain any licenses or certifications you need to get before you open your shop, as well as how you will train employees.

We will open from 7:30 a.m. to 7.30 p.m. We will always have at least three staff members in place to take care of making coffee, process sales, and keep the coffee shop tidy.

We will buy our coffee wholesale from a supplier that specializes in high-quality coffee. This coffee will cost $40 per five-pound bag. We will keep enough coffee in stock to last for at least one week. 

In terms of equipment, we will use a commercial grinder to grind beans before making each cup. 

We will buy pastries and light meals from a local supplier who will also take care of the packaging. We will receive a daily delivery at 7 a.m., thirty minutes before the shop opens. 

We will thoroughly clean up the shop after closing to ensure it is ready for the following day. We will build HACCP processes to stay compliant with food safety regulations. All members of staff will receive training so they know about these processes.

Management Team

In the management team section, you should include who the business owners are and who will manage your coffee shop. You should write about any experience or qualifications they have that will help make them successful.

If the owners won’t be managing the coffee shop, you should include details about who will take care of the day-to-day running of the business. In this section, include how much you will be paying each of the management team as well as how any profits will be shared amongst the owners.

The owner will also manage the coffee shop. The owner has over ten years’ experience working in coffee shops, including six years in various management positions. AI Coffee will also hire two full-time employees. These employees will have at least two years’ experience working in a coffee shop. We will pay each full-time employee $22,000 a year.

We will also hire four part-time employees with or without experience to work at weekends and provide cover during the week. We will pay these employees $10 an hour. 

Financial Plan

The final section of the coffee shop business plan is the financial plan. Here you need to go into detail about how your business will be financially successful.

Include operating costs (this includes the cost of equipment), loan repayments, cash flow and expected revenue (in the first year, especially). Also, include a balance sheet analysis that shows how much revenue you need to take in to become a profitable coffee business.

In this section, we will explain our financial plan, including costs, expected sales, and profit. We will also include a balance sheet. We believe this plan accurately illustrates why AI Coffee will be financially successful. 

ADD FINANCIALS 

Wrapping Up

That’s all for our coffee shop business plan guide. We hope that this has equipped you with enough knowledge on how to start a coffee shop and will help you with your business planning.

To find out more about getting a business up and running, check out our guides to writing a business proposal in 2019 and writing a small business marketing plan.

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Coffee Shop Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Coffee Shop Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Coffee Shop Business Plan

Whether you are planning to start a new business or grow your existing coffee shop, you’ve come to the right place to create your coffee shop business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their coffee shops.

A coffee shop business plan is used to start and/or grow your business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

Coffee Shop Business Plan Sample

Below are links to each section of our coffee shop business plan example:

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is a coffee shop business plan.

A business plan for a coffee shop is a plan to start and/or grow your business. Among other things, it includes your company overview, allows you to conduct a market analysis to identify your target market, includes a sample menu, presents your marketing plan and pricing strategy to attract your local customer base, details your sales forecasts, and provides the income statement, balance sheet and cash flow statement for your coffee shop.

You can  easily complete your coffee shop business plan using our Business Plan Template for a Coffee Shop here .

What Are the Main Types of Coffee Shops?

The different types of coffee shops include cafes, coffee bars and coffeehouses that sell coffee drinks and other snacks. Some coffee shops offer lunch and dinner menus and are close to being full-service restaurants. There are also coffee shops that are more accessible for people on the go or those who want to make their own coffee. These are retail coffee shops, drive thru coffee shops, coffee carts and trucks, and roasters or retailers.

What Are the Main Sources of Revenue and Operating Expenses for a Coffee Shop?

The primary source of revenue for many coffee shops come from its food and drink sales, which includes brewed coffee, coffee beans, seasonal drinks and refreshments, and baked goods. Gift card and merchandise sales like tumblers, mugs, and coffee makers also contribute to a coffee shop’s revenue stream.

The expected expenses for a coffee shop are the cost of coffee and food products, salaries and wages, rent, and advertising costs. 

How Much Does it Cost to Start a Coffee Shop?

Opening a coffee shop business can cost anywhere from $40,000 to $100,000 depending on the size and location of the business. Additional costs such as inventory, employee salaries, and marketing expenses can range from $5,000 to $15,000 per month.

How Do You Get Funding for Your Coffee Shop Business?

The best way to get funding for a coffee shop business is through a bank loan or utilizing your personal savings, business credit cards or borrowing from friends and family. You can also look into government grants or loans, or try to find a partner who is willing to invest in your business. Whatever route you choose, be sure to have a solid coffee shop business plan for potential investors including a sales and marketing plan as well as a realistic idea of how much money you need to get started.

How to Start a Coffee Shop?

• Determine the type of coffee shop business you want to open . There are many different types of coffee shops, from small mom-and-pop shops to large chains.
• Create a coffee shop business plan. This will outline your plans for starting and running your coffee shop. 
• Secure funding . You will need money to start and run a coffee shop, so you'll need to find investors or borrow money from a bank or other lending institution.
• Find a location for your coffee shop. This can be tricky, as you'll need to find a space that is affordable and has good foot traffic.
• Equip your coffee shop . You'll need to buy or lease equipment such as espresso machines, coffee brewers, and furniture in addition to the coffee beans and other food products you plan to sell.
• Hire staff . You'll need employees to run your coffee shop, so post job ads and interview potential candidates.

Learn more about how to start a successful coffee shop business:

• How to Start a Coffee Shop Business

Where Can I Get a Coffee Shop Business Plan PDF?

You can download our free coffee shop business plan template PDF here . This is a sample coffee shop business plan template you can use in PDF format.

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Food Cafe Business Plan

Having a cafe that smells like coffee and confectionery, buzzing with chatter, and made friendlier, and more engaging with books and music is a dream for many.

And if it’s your dream too, the search engine has brought you to the perfect spot!

Now you no longer need to sit and dream about having a cafe. Because we have tips and practices that can help you start your cafe business.

Opening a food cafe from scratch can be intimidating, but not if you have a food cafe business plan .

Industry Overview

The cafe industry stood at a whopping market value of 47.5 billion dollars in 2019. Though the pandemic had a major impact on the industry, it is gaining momentum once again.

According to statistics, Starbucks is the leading coffee brand in the US, with frappuccino being its most popular drink.

Although people of all ages consume coffee, with the senior population consuming three times more coffee than the younger ones, the 18-29-year-olds tend to be more experimental with their coffee than the older population.

Hence, it is a good practice to study your target audience and a few other aspects of the business to serve your customers better.

Say goodbye to boring templates

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Plans starting from $7/month

Things to Consider Before Writing Your Food Cafe Business Plan

Although a business plan helps you deal with several aspects of your business, there are a few aspects you should look into before getting started.

Pick a theme

Now you might wonder what theme has to do with a cafe, isn’t great coffee enough?

But let’s say, think about Starbucks for example. Or Dunkin Donuts. They are the leading coffee brands in the US and what sets them apart from all the other brands is their theme.

There is a highly likely chance that a Starbucks cafe anywhere would have a similar look and feel, even if it optimizes its menu to serve different customers.

Hence, the theme makes a major contribution to building your brand’s identity.

Decide upon a business structure

The legal structure of your business decides a lot ranging from taxes to the liability on your personal assets. Hence, it is important to figure out your legal structure before getting started.

Look into all of your options, and pick the one that fits your business the best.

Figure out the resources you’ll need

We all know that you’ll need supplies to whip up brilliant coffee, but for running a cafe you’ll need resources beyond the material. Both literally and figuratively.

Opening and running a cafe single-handedly is a herculean task, hence figure out the resources and help you’ll need from people before getting started.

Add services to enhance customer experience

The cafe business is extremely profitable if done right, but it attracts a lot of competition too. Hence, it is important to offer services that’ll help you stand out from your competitors.

It can be anything from a library, to live music, a painting bar, or even a live dessert counter. Offer something that enhances your customers’ experience and makes them want to return again.

Write Your Business Plan

Before you start writing your business plan for your new food cafe business, spend as much time as you can reading through some examples of  food and restaurant business plans .

If you are planning to start a new food cafe business, the first thing you will need is a business plan. Use our sample food cafe business plan to start writing your business plan in no time.

We have created this sample food cafe business plan for you to get a good idea about what a perfect food cafe business plan should look like and what details you will need to include in your stunning business plan .

Reading some sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

Food Cafe Business Plan Outline

This is the standard food cafe business plan outline which will cover all important sections that you should include in your business plan.

• Introducing Rodeo Mexican Cafe
• Funding Requirement & Capitalization Plan
• Summary of Financial Highlights
• The Rodeo Experience
• The Rodeo Vision
• Purpose Statement
• Cuisine Overview
• Jessica’s Tienda de Regalos
• Other Rodeo Activities
• Customer Service Excellence
• Creating a Great Service Staff
• Attention to Details
• Kid’s Menu
• Sunday Brunch Menu
• Strict Inventory Controls
• Purchasing Cost Controls
• Recipe & Portion Controls
• Cross Utilization of Inventory
• Sanitation & Food Handling
• Software & Systems
• Training Program
• Money Management
• Retention through Support & Feedback
• Operating Details
• Target Market
• Market Segmentation
• Rodeo’s Neighbors
• Competitive Landscape
• Key Competitors
• Competitive Advantages
• Market Positioning & Branding
• Marketing Strategies
• The Rodeo Staff
• Compensation Program
• Professional Services Providers
• External Issues
• Funding Requirement & Capitalization
• Brunch Revenue Assumptions
• Lunch Revenue Assumptions
• Dinner Revenue Assumptions
• Balance Sheet (Five-year projections)
• Income Statement (Five-year projections)
• Cash Flow Statement (Five-year projections)

After getting started with Upmetrics , you can copy this sample cafe business plan into your business plan to modify the required information, and download your food cafe business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample food cafe business plan

Need help writing your business plan from scratch? Here you go;  download our free food cafe business plan pdf  to start.

It’s a modern business plan template specifically designed for your food cafe business. Use the example business plan as a guide for writing your own.

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How to write a cafe business plan

Cafe business plans are boring.

No one likes writing them, very few people even want to read them…but they can be vital for the success of a new business.

Why? Because as you write down your plans on a page, the process makes you to think critically about the how viable your concept really is.

There are a lot of long, technical business plan templates out there. This is not one of them. This is a simple, practical cafe business plan template for everyday humans.

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A good business plan should make you answer hard questions like:

• How are you really going to be different from your competitors?
• Where are your customers going to come from?
• How much money do you need to get started? (and then stay afloat for the first year)
• What sales & profit are you projecting over the first 3 years?

Start with your goals

Start by answering the most important, and often most difficult question: why are you doing this?

Some people are in it for the money, some are buying themselves a new career, some just want to see their vision become a reality. Your specific goals could also include how you’ll impact the community, your family (like time off) and a whole lot more.

Ultimately, you want to communicate what success looks like to you.

While you’re at it, I think it’s also wise to at least think about an exit plan. I know that seems like the opposite of what you should be doing right now, but having a strategy for selling or expanding your business will be a big deal in years to come. Some questions to ask all the partners involved in the business are: Is this for life, or are we planning to sell at some stage? How many years before we take a look at our options?

Marketing Plan: Who is this business for?

The most effective businesses are designed with specific customers in mind. The more specific you get, the more you can focus the plan on what they want. The example above (from the business plan template) breaks down customers into segments based on who they are (demographics) and what “occasion” (time of day, circumstance) you can fulfil. Now we have an idea of who they are, let’s have a look at what the competition is doing.

Your Competition & Competitive Advantage

If you already have an exact location lined up, go ahead and take a look at which customer segments your closest competitors are looking after.

Be honest, most businesses have something and someone they’re just right for. Find out what it is and compare it to the segments you're targeting.

Identify those things that you can focus on to help you stand out. Remember, you don’t have to please everyone, but you do need to be completely amazing for the customers you’re targeting.

Once, you really understand your customer & your competitive advantage you’re off to a great start. The marketing plan should also include:

• Pricing Strategy
• Promotions & Advertising Strategy
• S.W.O.T. Analysis – that is, the strengths, weaknesses, opportunities & threats of your business concept
• Branding & Store Design Strategy

Once you've got the fundamentals of your marketing strategy in place, take a look at our list of 12 cafe marketing ideas that can help give you some inspiration for specific tactics & promotions

Operations Plan

How are you going to run this thing?

Yes, you need to cover mind numbing details like:

• Business structure - company, partnership, sole trader, etc)
• Approvals / Registrations Needed – Development Approvals, Outdoor dining permit, etc
• Trading hours
• Opening date

But the big one for a cafe business is Location & Lease…

Location & Lease Strategy

Now if you’ve already signed a lease there’s not a lot to see here. Just outline the detail of the site and the basic lease terms.

In your plan, include a basic shopping list for your ideal site. Here’s an example from the cafe business plan template We are seeking a 100-150m2 retail lease with street frontage. The site will have high passing foot traffic drawing from a mix of office workers & local residents.  We are seeking minimum lease terms of 3 years + a 3 year option to allow a return on investment.

You can something like this to talk with brokers & real estate agents. It gives both you and them something to focus your search.

Who do you need to make this happen?

Ask any experienced cafe owner, the number one thing keeping them up at night is staff.

Now is the right time to think through who you need & what skills they need to bring. You should also make it clear what sort of hours & skills both you (and your business partners) are going to contribute.

How much is it going to cost to get started? How are you going to make money after that? The plan should include a Profit & Loss Statement (also called an 'Income Statement') – ideally over 3 years. Budget for opening costs. Including fit-out, equipment, stock & working capital.Where the money is coming from. Savings, loans, leasing, your parents...

Yes,  forecasting sales  is hard, even hospitality veterans get it wrong, but it’s important that you try. You can start with benchmarks & examples from other cafe businesses (a sample is included in the business plan kit) – but it’s wise to run your numbers by people who have done it before. They can provide a reality check based on your plan and location.

Ready to find out more about opening a café? Check out our step-by-step guide to opening a coffee shop - or take a look at our guide to buying a cafe.

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Goodyear looks to tighten up its oversight of businesses. Here's what to know

Business owners in Goodyear soon may need to apply for a business license with the city.

Business licenses were initially introduced to the City Council as part of a two-part solution to the city's influx of group homes and sober living homes.

The council on April 29 approved a zoning ordinance that was expected to help solve the problem by enacting a buffer requirement and requiring group homes to apply for a business license with the city.

However, the city is still working out the kinks in its business license proposal. The City Council unanimously voted to table the initial measure, but officials hope to get the measure voted on as soon as possible so it can take effect July 1 along with the buffer requirement.

The business license program would apply to all businesses in Goodyear. Here's what to know.

What's the difference between business registration and a business license?

The city currently only requires business registration. That program was implemented in 2006, City Attorney Roric Massey said.

When a business registers with the city, it is simply letting the city know that it will be operating there. But there is no permitting or regulation process, Massey said.

The new program will require businesses to obtain a license from the city to legally operate, which means the city can regulate them and apply penalties for noncompliance with the rules.

Many cities, including Avondale, Buckeye, Surprise and Glendale, require businesses to obtain a business license.

Once City Council passes the ordinance, the city will reach out to businesses to ensure they are contacted before the July 1 implementation date. Businesses will be sent a letter and an email if the city has it, City Manager Wynette Reed said.

The city plans to convert registrations for existing businesses into licenses this year without requiring any action from the business, Massey said. But next year, all businesses will need to apply for a license with the city. Businesses currently have to register annually and will continue to have to apply for a license annually.

The fee to apply for a license will be the same as the fee to obtain a registration, which is $75.

The license would require all businesses to allow the city to conduct an inspection of the property to ensure it complies with city codes. The business also would have to display its license.

Business owners also would have to verify they are licensed to conduct whatever business they are operating. For example, a beauty parlor operator would have to prove a beautician's license, while an attorney would have to prove a license to practice law in the state, Massey said.

City hopes to crack down on unlicensed group homes

That's where the tie to group homes comes in. Because the city is cracking down on illegal and unlicensed homes, all businesses would have to prove they have the appropriate licenses to operate. To operate legally, a license has to be obtained from the Arizona Department of Health Services.

An employee also is required to be on-site during operating hours.

If a business gives the city false information or operates unlawfully, their license will be in jeopardy and can be suspended, Massey said.

Any business operating without a license would be fined $300 for the first time. That fee would go up to $1,000 for the second offense, Massey said. Each day would constitute a different offense, which means a business could be fined $1,000 per day. If businesses fail to let a city inspector on-site, they could be fined up to $500, Massey said.

Some entities will be exempt, including churches.

City Council voices concerns about home-based businesses, lemonade stands

Councilmember Vicki Gillis expressed concern that the fees may not be high enough to incentivize businesses to obtain a license, particularly ones that are making a large amount of money from illegal operations.

After the civil penalties, Massey said the city could move toward criminal violations.

Councilmember Bill Stipp asked if a neighbor who sells Tupperware would need to obtain a business license from the city. While any home-based businesses would need a license, the city would not inspect the property, Massey said.

People who work from home and connect online with the public, such as accountants, would need to obtain a business license but would not be subject to inspections, Massey said.

Stipp expressed concern about shutting down home-based businesses and requiring freelancers to obtain business licenses. While one problem may be solved, another one might be created, Stipp said.

"I think that is the worst case of government interference possible. We're going to penalize those people because we've got bad actors somewhere else that we're trying to take care of," Stipp said.

But Massey said those businesses, or anyone conducting business in Goodyear, currently needs to register with the city. And the process of obtaining a license would be similar: to go online and fill out paperwork.

Councilmember Sheri Lauritano said she believed the city may have been too broad in its licensing plan. She requested carve-outs for home-based businesses and people like dog walkers.

But Massey said the city is recommending a broad brush in order to balance licenses in a non-discriminatory manner. And the city already has established some carve-outs by not subjecting them to inspections, he said.

Councilmember Brannon Hampton expressed concern that children who set up lemonade stands or sell Girl Scout cookies would need a business license.

"I don't think our goal is to shut down lemonade stands," Massey said.

The City Council ultimately decided to table the ordinance to provide more protections to home-based businesses and lemonade stands.

Massey hopes to bring the proposal back to the City Council as soon as possible to stick with the proposed July 1 implementation date.

How to file a complaint against an unregistered group home

To report suspected code compliance issues  with group homes or sober living homes, residents can download the Goodyear mobile app or use the  city's website . Non-emergency criminal issues can be filed to the Goodyear Police Department through the city's website . Residents are encouraged to call directly to report crimes that need immediate attention.

Reach the reporter at   [email protected]  or by phone at 480-259-8545. Follow her on X, formerly Twitter:   @AlexandraHardle .

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Woke no more

Companies were starting to support political causes. Now they're too scared to speak up.

Unilever spent years crafting its image as a corporate goody-two-shoes. The owner of Dove, Vaseline, Hellmann's, and a bunch of other brands axed quarterly reporting and earnings guidance in the name of focusing on sustainable long-term growth. Under Paul Polman , its CEO from 2009 to 2019, it said it would take into consideration all its stakeholders, not just shareholders, and set out to halve its environmental footprint — including greenhouse-gas emissions, waste, and water use — while doubling its sales over a decade. Five years and two chief executives later, Unilever is changing its tune . It's not doing a U-turn on environmental, social, and governance efforts, but it says it's being more realistic about what it can achieve and when. And, oh, those shareholders Unilever wasn't so beholden to? It's paying them a little more mind now, too.

Unilever isn't alone in this. Plenty of companies are reining in their rhetoric and in some cases action on issues such as sustainability and diversity. They're being extra cautious about weighing in on the social and political debates of the day, especially in an election year. In some cases they're telling their workers to cool it, too; Google, for example, fired more than two dozen workers for protesting its contract with Israel's government .

"Many executives have made the decision that it's sometimes safer to just be silent versus to take a stance, because they have a fiduciary responsibility to their shareholders and their bottom line and are very concerned about how this will be perceived," said Naomi Wheeless, a board director for Eventbrite who was formerly a global head of customer success at Square.

Call it the great un-wokening.

Over the past decade, many corporations have at least professed to take a more active role in social issues, under pressure from their customers and, more importantly, employees. Companies pushed back on North Carolina's "bathroom bill" in 2016, and when Donald Trump took the White House, many spoke out against his policies on immigration and the environment. Around that time, the Business Roundtable said it was time to rethink the purpose of a company , and BlackRock's Larry Fink expressed all sorts of thoughts about the importance of companies being responsible social stewards.

In the wake of George Floyd's murder in 2020, corporate America put out endless statements about the horror of what had happened and pledged to undertake diversity, equity, and inclusion initiatives. An expectation arose that big businesses would take a stand on issues — if Congress wouldn't do something on guns, at least Dick's Sporting Goods would .

"You can almost say that ESG ran unopposed for a few years," said Andrew Jones, a senior researcher at the Conference Board's ESG Center.

It's a bona fide countermovement against both ESG and DEI.

Then came the backlash. Over the past couple of years there's been an uproar, especially among conservatives, about the rise of "woke capitalism." Bud Light came under scrutiny from the right when it partnered with the transgender influencer Dylan Mulvaney for a small-scale Instagram campaign last spring. Then Target took heat about its Pride merchandise , with some customers destroying displays in stores over a campaign it has run for years. These high-profile examples spooked companies, which are now afraid to poke the hyped-up right-wing bear. In the market, ESG funds haven't been doing so hot . According to Morningstar, investors pulled $13 billion out of sustainable funds in 2023 amid underperformance and political unease.

"It's a bona fide countermovement against both ESG and DEI," said Philip Mirvis, an organizational psychologist and research fellow at Babson College's Social Innovation Lab. "Certainly for businesses, this is about making money. And in the conventional logic, all of these issues represent risks."

After last year's Bud Light debacle, which was a real blow to its business , executives fear they'll be the next target of some anti-woke outcry. In a 2023 Conference Board survey of more than 100 large US companies, almost half of respondents said they'd gotten some ESG backlash, and nearly two-thirds said they expected the problem to persist or get worse over the next two years. Jones told me the surveys suggest companies are antsy about mentioning DEI too much, too. He said it's not necessarily the case that companies aren't doing any work on sustainability and diversity, but they're definitely changing how they talk about it.

The chilling effect is palpable. Fink won't say "ESG" anymore because, he says, it's been "weaponized." Asset managers are quieting down on ESG as part of a "greenhushing" trend. Some companies that made a big deal about their DEI efforts in 2020 are downsizing those, too . Data provided to me by FactSet, a financial-data company, shows that mentions of ESG and DEI in S&P 500 companies' quarterly earnings calls with analysts have taken a nosedive over the past few years. For the fourth quarter of 2020, 131 companies mentioned ESG, and 34 mentioned DEI or diversity and inclusion. For the fourth quarter of 2023, those numbers dropped to 28 and four.

While the backlash has certainly driven the quieting, in some cases companies are talking less about their social commitments because they got out over their skis on their pledges. Companies such as AIG, Amazon, and ExxonMobil have scaled back some of their climate initiatives.

"We saw a lot of companies make very bold commitments — we're going to be net-zero emissions by whatever date, 2040, 2050," Jones said. "And often those commitments came but there wasn't always the underlying work."

Alison Taylor, an associate professor at New York University's Stern School of Business who wrote the book "Higher Ground: How Business Can Do the Right Thing in a Turbulent World," told me that, in her view, corporate America's about-face isn't as abrupt as it seems. C-suites have become more Republican over the past decade, and in loudly proclaiming to be do-gooders, companies have also drawn attention to their political donations, which often don't align with their rhetoric. Additionally, the issues dominating political and social discussions are much thornier than they were in the recent past — speaking out against white supremacists in Charlottesville is a bit of a gimme, weighing in on the Israeli-Palestinian conflict is not.

"Now what we've got is the end of Roe v. Wade, and we've got the Middle East, and we've got issues where they're much, much more divisive and difficult," Taylor said.

Taylor, a longtime skeptic of CEO activism, isn't surprised the friendly-corporation-next-door schtick has gone awry, but it has clearly caught some employees unawares. Some corporations have encouraged the creation of employee resource groups, which organize people by social identities and beliefs and in some cases embolden them to push for change. Google workers have previously participated in walkouts and protests and kept their jobs . Many were bewildered to find that this time around, the company was no longer having it. Instead, it's firing those protesting and reminding everyone, "This is a business."

"A company is not a democracy, and so all these leaders wanted to imply it was a democracy when it suited them," Taylor said. "Now it doesn't suit them."

It's unclear whether this trend of companies trying to stick to straight business is a blip or a more permanent reversal. Bud Light and its parent company, Anheuser-Busch, have generally steered clear of anything that might be read as controversial since the Dylan Mulvaney debacle; their main message since then has been "We love America." Target told me it didn't have anything to share on its 2024 Pride plans yet, but it has publicly acknowledged it's likely to make some modifications.

A company is not a democracy, and so all these leaders wanted to imply it was a democracy when it suited them. Now it doesn't suit them.

Many of the people I spoke to for this story described executives as more on edge because of the election this year; come 2025, that may ease. The anti-woke crowd is extra fired up about certain issues right now, but that may not last — attention spans are short, and hot-button issues are constantly changing.

Still, companies' backing down on sustainability and diversity efforts, even temporarily, could prove short-sighted. Sure, you saved yourself a headache now, but in the long run, setting up a business to weather the climate crisis is a good bet. So is hiring diverse workers and appealing to new demographics. Despite the controversy last year, at the heart of Bud Light's campaign was an understandable business decision: It wants to appeal to a younger, more diverse consumer base.

Underlying this all is one central question: Just how "woke" are companies anyway?

Commitments to social responsibility are never far-reaching, said Kenneth Pucker, a former Timberland chief operating officer and current professor of practice at the Fletcher School at Tufts University. "It's always on the margins because the main goal of executives — the real responsibility, the way the structure of the system is organized, the way incentives work, the way the rules govern — is money making."

This may be a great un-wokening, but maybe corporate America was actually never that committed to the idea in the first place.

Emily Stewart is a senior correspondent at Business Insider, writing about business and the economy.

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Gov. Gavin Newsom Proposes Painful Cuts to Close California's Growing Budget Deficit

California Gov. Gavin Newsom has proposed a series of painful budget cuts to close the state's growing deficit

Gov. Gavin Newsom Proposes Painful Cuts to Close California's Growing Budget Deficit

Rich Pedroncelli

California Gov. Gavin Newsom unveils his revised 2024-25 state budget during a news conference in Sacramento, Calif., Friday, May 10, 2024. (AP Photo/Rich Pedroncelli)

SACRAMENTO, Calif. (AP) — California 's budget deficit is at least $45 billion, a shortfall so large it prompted Gov. Gavin Newsom on Friday to propose painful spending cuts impacting immigrants, kindergarteners and low-income parents seeking child care in a state often lauded for having the world's fifth-largest economy.

Officially, Newsom said the state's deficit is $27.6 billion. But really, it's closer to $45 billion when including previous spending reductions that Newsom and the state Legislature agreed to in March. Including reductions in public education spending, which Newsom has not included, the deficit would be even billions of dollars more, according to recent analysis by the nonpartisan Legislative Analyst's Office.

The size of the deficit is important as it will shape the national perspectives of Newsom, who is a top surrogate for President Joe Biden's reelection campaign and who is widely believed to harbor presidential aspirations of his own. Newsom has spent much of his time in office basking in the glow of historic budget surpluses that allowed him to greatly expand state spending. But back-to-back budget deficits — with more on the horizon — are testing California's commitment to those increases.

So far, Newsom has not gutted some of his splashiest policy advancements, including free kindergarten for all 4-year-olds and free health insurance for all low-income adults regardless of their immigration status. But as Friday's proposal showed, Newsom is willing to chip away at some of those promises to balance the budget.

While Newsom has not taken away health insurance from anyone, he proposed the state stop paying for health care workers to care for some 14,000 disabled immigrants in their home. That would save the state $94.7 million. While he hasn't pulled back the state's commitment to expanded kindergarten, he proposed eliminating $550 million that would have helped school districts build the facilities they need to teach all of those extra students.

After promising to pay for child care for another 146,000 children from low-income families, Newsom on Friday proposed pausing that expansion at 119,000. And after promising to boost how much money doctor's get to treat Medicaid patients , Newsom on Friday proposed canceling $6.7 billion that had been set aside to do that.

The cuts prompted outrage from across the political and ideological spectrum. Anthony Wright, executive director of the consumer advocacy group Health Access California, said the removal of in-home care for immigrants with disabilities would result in those people becoming “further impoverished or end up in much more expensive nursing home care.”

Yolanda Thomas, a member of the Child Care Providers United negotiations team, said cutting the child care slots means “we cannot build a stronger economy when our lowest paid workers ... don't have somewhere safe to send their children during their shifts.”

For every question on Friday, Newsom had a similar response.

“I prefer not to make this cut. These are programs, propositions that I have long advanced, many of them,” he said. “But you've got to do it. You have to be responsible.”

Before the coronavirus pandemic, California's revenues were growing at about 5% per year. From 2019-20 through 2021-22, revenues grew an astounding 55%. That's because California got a lot of money from the federal government to blunt the impact of the pandemic. And it's because the stock market had historic increases, fueling a rapid expansion of wealth among California's richest residents — generating a tax windfall for the state .

State budgeting is a guessing game, where governors and lawmakers have to predict how much money they will have and plan to spend it. Following the bountiful years of the pandemic, California's guesses have been way off. The Newsom administration now predicts state revenues will be $83.1 billion lower than they thought for the 2022-23 and 2023-24 fiscal years.

“If you knew that those were unrealistically high and totally unsustainable revenue levels, why wouldn't you put a little bit more in the reserves,” said state Sen. Roger Niello, a Republican and vice chair of the Senate Budget and Fiscal Review Committee. “If that's the case, you know it's going to come crashing down and you are going to have a big deficit to cover.”

Newsom defended California's previous budget actions, noting the state Constitution required the state to return a big chunk of that surplus to taxpayers in the form of rebates. Newsom said it “provided a lot of support at the time to people who needed money.”

“I feel like we were doing the best we could under that circumstance,” he said.

Newsom on Friday repeatedly vowed he would not sign a sweeping tax increase on individuals. But he did propose suspending a popular tax deduction for businesses, which many see as a tax increase.

In total, Newsom is proposing $32.8 billion in cuts over two years, including eliminating 10,000 unfilled state jobs and an 8% cut to state operations — including things like eliminating landlines. He promised there would be no layoffs, furloughs or salary cuts for the state's more than 221,000 state workers.

Democratic legislators applauded Newsom’s effort to deal with multiple years of deficits and vowed to protect spending for social safety net fundings and classrooms.

“Nobody knows what challenges California may face, so we must always stay prepared,” Assembly Speaker Robert Rivas and Assembly Budget Chair Jesse Gabriel said in a joint statement. ___ This story has been corrected to show that Newsom proposed eliminating $550 million for school facilities, not $500 million.

Copyright 2024 The  Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Finally! Soo Cafe is in Wake Forest! Love their Korean Fried Chicken. We always have a great experience. The service is great! Good luck in your second location! We will definitely be back!

I love Korean food, and my meal here did not disappoint. I ordered the bibimbab with beef and it was delicious. It was a very large serving and I just could not stop eating it. The service was good and quick. The decor was nice-- everything looked new and clean, with comfortable chairs. They are a new establishment and I don't think everyone knows about them yet. It's in the parking lot with Big Lots and KFC on Capital near the Durham exit. Give them a try!

Stopped in because I was curious about what the new Korean restaurant in Wake Forest was like. This place looks great. On top of being a restaurant it's also got a Korean convenience store with spicy ramen, Korean snacks and deserts and even some ingredients for cooking Korean yourself. We tried the corn dogs and can highly recommend them. Our server was a gem, extremely friendly and attentive and we even got to speak to one of the chefs. We will definitely be back to check out the rest of the menu.

Best Korean fried chicken in the RTP! I've been going to their original location since 2014! They just open another location closer to me! The ambiance is very clean and new! Friendly service and amazing food!

Korean Grocery Store is part of the restaurant

Dining area

So good! Eat here, you will not be disappointed. Bulgogi was delicious. Fried chicken was out of this world.

2 other reviews that are not currently recommended

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