Coffee shop business plan – an example with calculations

Coffee is currently the most popular drink in the world. Therefore, many seek to open a coffee shop .  Coffee is in demand at any time of the day, and if you can also get dessert and a pleasant atmosphere in addition to it, then the client is already yours. Based on this, we can conclude that a coffee shop is a very popular type of business.

Every year, coffee consumption in our country is only increasing. More and more people prefer this invigorating drink. And there is every opportunity to have time to occupy your niche in the coffee business , gain experience and income.

Market analysis

If you have firmly decided that you want to open a coffee shop, you need to conduct a market analysis . To do this, you need to do an independent analysis of the niche in your city:

Examine existing establishments with similar offers. Their place, quantity, which will allow you to understand where it is most profitable to place your coffee shop. In order to move forward, you also need to define your client :

  • Who, age, preferences. This will help you better choose a location for your coffee shop.
  • Find out the offers of coffee houses in the city. Menu.
  • Study the offers of famous chain coffee houses, even if there are none in your city, but there is an opportunity to learn from their experience.

The more information you can gather, the easier it will be to write a business plan . Market analysis allows you to understand all the pros and cons at the initial stage and help you make decisions to minimize the impact of negative factors when opening your establishment.

Pros and cons of a coffee shop as a business

Pros:

  • Fairly high demand
  • High profitability
  • The business has a very pleasant aroma!
  • The menu is quite flexible, there are many interesting solutions.
  • Relatively easy product quality control

Minuses: 

  • Competition (it is difficult to compete with network players in terms of margins)
  • A good barista is hard to find, easy to lose…. well you understand
  • Selection of a supplier (for small volumes, as a rule, a high price)
  • Possible influence of seasonality
  • long run
  • It is difficult to find a decent room with inexpensive rent

To open your coffee shop from scratch, you need management skills, communication skills, perseverance, the ability to work with money and of course a commercial streak.

Well, it’s not bad to love and understand coffee, which will help in choosing a supplier and compiling a menu.

Choosing a coffee shop format

There are a large number of formats and options for coffee shops. The most important thing is to choose the right one for you.

coffee shop format

American type – these coffee shops have the cheapest format. They have the simplest maintenance, there are no special requirements for the design of the premises. The menu does not include hot dishes, salads, alcohol. Orders are taken at the bar.

 Fast food – similar to the American type, belongs to the most democratic of all. Offers coffee and dessert, usually takeaway. Disposable tableware is used. It is more profitable to organize in places with high traffic – stations, shopping centers, markets.

 French coffee house The most common association among the layman is with the French format of the coffee house. Where you can sit, relax, slowly enjoy a cup of coffee and a delicious croissant. Classic interiors, tablecloths, beautiful crockery. Everything breathes so calmly.

 A coffee house on wheels – for this format of a coffee house, you need a minibus or an equipped minivan. The salon is completely redone for customer service. The menu includes different types of coffee, hot pastries, confectionery. Often the driver, cashier and cook are represented by one person. One of the most profitable types of coffee houses, but more typical for warm countries.

 A coffee-to- go coffee shop is one of the most successful options for a professional barista. It involves the production of good coffee in disposable utensils for consumption on the run. The main thing is to choose a good location for such a coffee shop. Often in demand by students, taxi drivers and white-collar workers in the morning hours.

 Coffee shop-confectionery – the main product of this coffee shop format is delicious pastries, a variety of cakes and pastries. Coffee, tea and other drinks are added for a pleasant pastime.

Choosing a location for a coffee shop

The main and often decisive factor in the payback of a coffee shop as a business will be the successful location of your establishment. The main condition is the patency of the place.

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The more people pass by your establishment every day, the more likely it is that someone will decide to look into the light. For this reason , it is not profitable to open coffee shops in residential areas .

But it is worth noting that the quality of the audience also plays an important role, roughly speaking, if the traffic consists of only pensioners surviving in retirement, then these are hardly your potential customers

choosing a coffee shop

When choosing a place, first of all, you should focus on:

  • office centers
  • major pedestrian street crossings
  • proximity to metro stations or major public transport stops

Coffee is in demand at train stations, but remember that if you decide to open a point here, the cost of your product should not be high, the buyer here is not picky and is not ready to pay more than 100 rubles for coffee. Or even prefer cheap coffee from the machine.

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A good option for opening a point in a large shopping center. Modern business development trends dictate their conditions to us. Shopping centers have ceased to be a place for shopping, now they are places for leisure activities. And opening a coffee shop can bring a good profit to its founder.

Paperwork

We begin the paperwork with the registration of the enterprise in the tax office. First of all, you need to choose the form of ownership of IP or LLC.IP or LLC?

Most often it is more convenient to issue an IP, because. this involves a minimum package of documents (application; documents confirming the identity and receipts for payment of the state fee) and faster in time.

Choice of tax regime.

UTII is a single tax on imputed income is the most convenient format. If you are planning a coffee house in a mini-format, then a patent system will do. But you need to remember that the validity of a patent is from 1 to 12 months, and the staff is not more than 15 people.

If alcoholic products are planned, then it is necessary to issue an appropriate license, but at the start of opening a coffee business, you can do without it.

Documents to open

Other permits are standard for catering establishments:

  • agreement with the water utility;
  • an agreement on the supply of electricity;
  • permits from the fire inspectorate;
  • contract with contractors;
  • contract with suppliers;
  • a document confirming the ownership or lease agreement;
  • technological project of the institution;
  • quality certificates for finished products;
  • a full package of mandatory sanitary documents (contracts for the removal of garbage, deratization, disinfection, sanitary books);
  • production control plan;
  • schedule of laboratory studies;
  • flow charts for recipes; decorated corner of the buyer).

  Sanitary documents may vary slightly by region, so this point should be especially focused on.

When preparing a complete package of documents, you should not rush, be nervous. Only a cool head and consistency will help you in this difficult task.

Design and design of the coffee shop

When designing a coffee shop, you need to focus on your target audience and the format of the cafe.

Remember that when opening a coffee shop in a residential building, it should not break the silence. To do this, when designing a room, it is necessary to ensure appropriate sound insulation.

In order to pass the checks of all government agencies and obtain the necessary documents, it is necessary to ensure fire safety before proceeding to the design and design of the cafe.

The presence of emergency exits, bathrooms, a warehouse for storing raw materials, as well as a rest room for staff. Ensure good ventilation in the living room and kitchen. High-quality water supply systems, sewerage, serviceable electrical wiring and other communications.

Modern trends are such that the more interesting the design of the coffee house, the more it attracts attention. It is not enough just to paint the walls and put some furniture. The design should interest, attract, make you want to return.

Many youth-oriented entrepreneurs set up so-called insta-zones in their establishments. This is a place where visitors can take photos for their social networks and thus provide free advertising for the establishment.

If the budget allows, the best solution is to involve a designer in the design of the cafe, it can be a beginner who has just graduated from an educational institution. This way you save money and get professional help.

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