Coffee Shop Business Plan
Coffee Shop Business Plan
Coffee Shop Business Plan
Coffee Shop
Business
Plan
BUSINESS PLAN
2019
John Doe
10200 Bolsa Ave, Westminster, CA, 92683
(650) 359-3153
http://www.example.com/
Table of Contents
Executive Summary 4
Objectives 4
Mission Statement 4
Guiding Principles 4
Keys to Success 5
Financial Summary 5
Net Income 5
Business Overview 6
Ownership 6
Owners 6
JOHN DOE 6
Legal Form 6
Start-Up Summary 7
Products/Services Descriptions 8
Menu 8
Product/Service Sourcing 8
Inventory Management 9
Future Products/Services 9
Market Analysis 10
Industry Analysis 10
Competitive Landscape 10
Market Size 10
Industry Participants 11
Market Segments 11
1 / 27
Market Tests 12
Market Needs 12
Market Growth 13
Positioning 13
Competitive Analysis 14
Competitive Comparison 14
Main Competitors 14
Roasterie Cafe 14
SWOT Analysis 15
Strategy Pyramid 16
Competitive Edge 17
Positioning Statement 17
Pricing Strategy 18
Website 18
Marketing Programs 18
Sales Strategy 18
Sales Forecast 19
Sales Programs 19
Legal 19
Milestones 20
Exit Strategy 20
Organizational Structure 21
2 / 27
Management Team 21
Personnel Plan 21
Financial Plan 23
Important Assumptions 23
Start-Up Costs 23
3 / 27
Executive Summary
Examples
The Cooper’s Cup will be a new cafe located in the Phoenix city of Arizona. The
Cooper’s Cup 1,500 square foot café will be located in the newly constructed Market Square
Plaza located on the northeast corner of 135th Street and Mission Street. The
anchor tenant, the Price Chopper grocery store, has already taken occupancy
and the excellent location brings more than 10,000 shoppers weekly.
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The Cooper’s Cup, aptly named for the aromatic brown liquid that will fill the cup,
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Objectives
Examples
The primary objectives of the business plan for Cooper’s Cup are below:
Cooper’s Cup
To increase revenues $36,000 or 5% in Year 2 and $73,000 or 10% by Year
3
Achieve a profit margin of 5.2% in Year 2 and 6.90% by Year 3
Be the Cafe of Choice in the Phoenix area and recipient of the BestRead More
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Mission Statement
Examples
The Cooper’s Cup is committed to its products and employees which they believe
Cooper’s Cup is the recipe for market success.
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Guiding Principles
Examples
The Cooper’s Cup is committed to values such as excellence, passion, quality,
Cooper’s Cup integrity and leadership which allow them to navigate challenges and provide for
future opportunities. These core beliefs start with their commitment to their
products and their employees. Cooper’s Cup rewards excellence and cherishes
loyalty. The cafe will work with its employees to build strong businesses and a
Read More
secure future.
Keys to Success
Examples
The Cooper’s Cup stands out from the competition. Below are their Keys
Cooper’s Cup to Success:
Financial Summary
Net Income
400k
300k
200k
100k
0
Year1 Year2 Year3
Examples
Cooper’s Cup
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Ownership
Owners
John Doe
100%
100 Shares
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JOHN DOE
Owner - [email protected]
The Cooper’s Cup will be owned 100% by John Doe. Mr. Doe a graduate of Arizona State
University has an undergraduate degree in business administration. During high school,
he worked as a waiter in a local hospital coffee shop that purchased its beans from a local
roaster. In addition to being an avid coffee drinker himself, this job allowed him to learn
about the business first-hand. In college, Doe worked in a campus coffeehouse for four
years, eventually rising to the position of assistant manager. Following graduation, Doe
secured a business development position for a regional restaurant chain, which provided
additional first-hand exposure to the food and beverage industry—especially the steps
involved in establishing new locations.
Legal Form
Examples
The Cooper’s Cup will be formed as an S-Corporation wholly owned by Mr. Doe.
Cooper’s Cup
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Start-Up Summary
Examples
The Cooper’s Cup will have seating for 40 patrons. The rent is $2,075 a month,
Cooper’s Cup with a three-five-year lease available. The site consists of 1500 square feet of
leased space consisting of a dining room, a coffee bar, two restrooms, and a
storage room in the back. To be used as a restaurant, this storefront needs to be
plumbed and wired appropriately. Painting, new floors, and countertops are also
Read More
needed. A custom coffee bar needs to be built. With materials bought on sale and
Examples
Cooper’s Cup
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Products/Services Descriptions
The Cooper’s Cup’s primary offering is gourmet roasted coffees with such varieties such as mocha,
carmelicious, white mocha, candy bar latte, and brewed coffee. Complementing the coffee will be a smoothie
line including wild berry, strawberry, peach, mango, and lemonade. Rounding out the simple menu line will be
pastries obtained with an outside supplier, freshly made and delivered daily. The pastry offerings may vary
with seasonality but the primary line will muffins, bread, cookies, scones, and rolls.
Menu
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Mocha Carmelicious White mocha
Product/Service Sourcing
Inventory Management
N/A
Future Products/Services
Examples
Young families which comprise the third largest market share in Phoenix, are
Cooper’s Cup often overlooked in the coffee market. Coffeehouses traditionally have not been
considered ‘kid’ friendly. To overcome this hurdle, the Cooper’s Cup has long term
plans (5 years) to open a 2nd coffee shop: A combination indoor play area/coffee
bar. This concept allows parents and caregivers an opportunity to meet and relax
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with other adults while the children can enjoy the indoor playground amenities.
Examples
Phoenix, Arizona is an award-winning place to live and work and is considered
Cooper’s Cup the leading business community in the Midwest. National publications and
organizations recognize Phoenix for its business environment and livability.
Here’s a sampling: 6th Place, America’s Best Places to Live Money, Top 50 Cities
to Live and Play, National Geographic Adventure, 3rd Hottest Town in the U.S.,
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Money, Among 20 Best Places to Live & Work Employment Review, One of only
Industry Analysis
Examples
The US coffee shop industry includes about 20,000 stores with combined annual
Cooper’s Cup revenue of about $10 billion. Major companies include Caribou Coffee,
International Coffee & Tea (The Coffee Bean & Tea Leaf), Peet’s Coffee, and
Starbucks. The industry is concentrated: the top 50 companies generate more
than 70 percent of sales. Coffee shops are part of the specialty eatery industry,
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which also includes retail outlets specializing in products such as bagels, donuts,
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Examples
Cooper’s Cup
Consumer taste and personal income drive demand. The profitability of individual
companies depends on the ability to secure prime locations, drive store traffic,
and deliver high-quality products. Large companies have advantages in
purchasing, finance, and marketing. Small companies can compete effectively by
offering specialized products, serving a local market, or providing superior
Read More
customer service. Specialty eateries, which include coffee shops, are labor-
Competitive Landscape
Examples
Major products include beverages and food. Beverages include brewed coffee
Cooper’s Cup and tea; espresso drinks (cappuccinos, cafe lattes); cold blended beverages;
bottled water; soft drinks; and juices. Food includes pastries, bakery items,
desserts, sandwiches, and candy. Many coffee shops sell whole or ground coffee
beans for home consumption. Some coffee shops sell coffee or espresso-making
Read More
equipment, grinders, mugs, and other accessories. (First Research)
Market Size
Examples
Industry Participants
Within 5 miles of the subject, are 37 businesses involved in the coffee industry, including chains, restaurants,
and tea houses reporting annual revenues in excess of $54 million. Of these 37 businesses, 20 are Starbucks
coffee shops capturing $35.7 million in revenues or 66% of the market share. An additional 8 coffee houses
are franchises capturing $9.7 million represent 18% of the market share. The comparables – those closely
held coffee shops/cafes that will compete for the subject’s business represent $8.3 million in annual revenues
or 15% of the total market.
The Cooper’s Cup is targeting three primary groups residing in their direct marketing area. These individuals
prefer unique venues and avoid the big chains and franchises. They prefer their local neighborhood and will
support local businesses if the business warrants.
Comparables: 15.0 %
Starbucks: 66.0 %
Market Segments
Market Tests
Examples
Research from Yelp, FourSquare, and google places, indicates the Phoenix
Cooper’s Cup market is in need of a new local cafe. The locals have been clamoring for the
current private shops to improve service and/or reduce prices to keep pace with
larger chains and franchises, thus providing a unique niche for the right entrant.
While employed by a national restaurant chain, Mr. Doe was constantly Read More
directing
patrons to offsite coffeehouses for those seeking that final dessert and cup of
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Examples
Most adult coffee drinkers said their lifelong habit began during their teenage
Cooper’s Cup years. In fact, 54% said they began drinking coffee between 13 and 19. Another
22% reported their coffee cravings started between the ages of 20 and 24. This
means that 76% of adult coffee drinkers began drinking coffee by the time they
were 24. So, despite a large amount of marketing and advertising directed at the
Read More
younger age groups, savvy coffee shop owners will not forget to cater some of
Examples
Examples
Despite the economic woes, 37% of total coffee consumed in the United States in
Cooper’s Cup 2011 was classified as “Gourmet.” According to the National Coffee Drinking
Study, This suggests consumers were set on drinking good coffee and visiting
The sales of coffee dominate sales of hot beverages, making up 83.3%Read More
of the
Market Growth
Examples
The Russet Mug will position itself as a local coffeehouse or a ‘suburban’
Cooper’s Cup coffeehouse providing a sanctuary for those in the ‘burbs’ without the hassle of
having to drive downtown
By charging similar prices as the large chains – the service and quality of the
product will commensurate with the price Read More
Positioning
Competitive Comparison
Examples
The research methodology is based on unique coffee shops/cafes in the greater
Cooper’s Cup metro area and omits larger chains or franchises. The findings reveal eight unique
competitors.
RoasterieCafe
4511 W119th St Leawood, KS 66209 Read More
http://www.theroasterie.com/Cafe/
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Main Competitors
Examples
This competitor has been operating in the greater MSA since 2005 opening its
Cooper’s Cup first cafe in Brookside, Arizona and then at the Leawood location in 2010. The
3,300 square foot cafe offers an assortment of pastries, bagels, and cookies.
Beverages include Harney and Sons teas, signature blends, espresso, and
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specialty drinks. The cafe has 11 employees and generated $11 million in
Read More
revenues in 2011. The subject’s advantage is its smaller, cozier environment.
Roasterie Cafe
Examples
This competitor operates from a 3,300 square foot space. The cafe has WI-FI. In
Cooper’s Cup addition to serving coffees and smoothies, the cafe offers more food offerings with
a full-service kitchen offering light breakfasts, and sandwiches and wraps. In the
evenings the cafe has musicians performing on a small stage. The Cafe also has
a full liquor license. The broad offerings of amenities do not make this a true comp
Read More
for the subject.
Examples
This competitor operates from a 6,300 square foot space in a shopping center.
Cooper’s Cup The shop was established in 2001 and in 2011 reported $2 million in revenues.
The shop employs 21 employees and provides music on the weekends. The
subject’s advantage is its smaller, cozier, and quieter environment.
SWOT Analysis
Examples
The SWOT analysis examines the cafe’s strengths and weaknesses that need to
Cooper’s Cup be addressed. Further, this section examines the opportunities presented to Cafe
as well as potential threats.
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S W
Opportunities O TThreats
The Phoenix demographics support the The Morning Glory Coffee shop is
need for a uniquecoffee shop. currently for sale; should another
Additional opportunities to target the independent purchase this cafe, it could
active and recently retired target market pose significant threat to market share.
and 45 years+ age group.
A small slice of a much bigger pie is the
goal. Only40 percent of the nation’s
coffee drinkers are consuming premium
ground and whole bean coffee.
Encouraging coffee drinkers to become
coffee connoisseurs is the key to
continued growth.
The local coffeehouse/cafe market is
$54 million
Strategy Pyramid
Examples
Examples
The Cooper’s Cup truly stands out from a crowded sea of coffee chains and
Cooper’s Cup franchises. What sets them apart from the competition is primarily its smaller
cozier size combined with premium coffees served by knowledgeable baristas
providing so much energy and enthusiasm for the products they sell.
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Competitive Edge
Examples
The Cooper’s Cup’s competitive edge, its size, is also its greatest attribute.
Cooper’s Cup Because they are small there is no red tape, and they can easily adjust business
hours to say accommodate an after-hours book reading session whereas the
corporate chains do not provide such accommodation. The Cooper’s Cup will truly
cater to its patron's needs.
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Examples
The Cooper’s Cup utilizes a focus strategy on its market. By specifically targeting
Cooper’s Cup three primary segments they can cater specifically to their needs.
The Cooper’s Cup will target this market simply by its well selected location.
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Although this demographic group could readily drive downtown, they prefer a local
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Examples
The Cooper’s Cup is a gourmet coffee lover’s gem. It is truly one of a kind coffee
Cooper’s Cup house offering outstanding gourmet coffees and blends, served by enthusiastic
and knowledgeable baristas, in a warm, relaxed environment. It is the place to go
to visit with friends or cozy up in a quiet corner with a good book either from the
library or from one of the patron’s personal E-Books.
Read More
Positioning Statement
Examples
The Cooper’s Cup primarily utilizes competition based pricing. The cafe does not
Read More
Pricing Strategy
Examples
Examples
The Cooper’s Cup will have a simple website identifying its menu items of
Cooper’s Cup gourmet coffees, smoothies, and pastries, along with the address, map and hours
of operation. The website will also have a calendar of any upcoming events or
sponsorships.
Read More
The site will also have links to their social media sites – such as Facebook,
Twitter, and Pinterest.
Website
Examples
The cafe will also rely on signage and draw to its location. Price Chopper brings
Cooper’s Cup 10,000 shoppers weekly to its location.
Read More
Marketing Programs
Sales Strategy
Examples
The Cooper’s Cup will use the following methods to increase sales revenue (as
Cooper’s Cup recommended by Andrew Hetzel on Better Coffee, Better Business):
The menu will focus on the most profitable products sold. The cafe will
always draw customer attention to the most profitable products.
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As warranted, the cafe will raise prices to bolster brand image. Prices
Sales Forecast
The sales forecast assumes a conservative 5% increase in revenues during Year Two and 10% increase in
Year Three. The following chart shows estimated sales over the next three years.
Cost of Sales
Products/Service 1
Products/Service 2
Products/Service 3
Total Cost Of Sales
Gross Margin
Examples
The Cooper’s Cup will run employee sales contests – The baristas are the
Cooper’s Cup salespeople and have a great deal of influence over the customer ordering
process. All baristas will be required to have sales and customer service training
to make each transaction. The sales contests will emphasize high margin items
and cross-selling.
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Sales Programs
Legal
Examples
The Cooper’s Cup is organized as an S-Corporation formed in the state of
Cooper’s Cup Arizona.
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Milestone Date
Secure occupancy Phoenix location [Date]
Tenant improvements and build outs [Date]
Purchase furniture and décor [Date]
Assemble and hire barista team [Date]
Advertise on local radio station/mail fliers [Date]
Open for Business [Date]
Exit Strategy
Examples
In the event the store would have to close for business all assets would be sold at
Cooper’s Cup auction.
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Organizational Structure
The Cooper’s Cup is formed as an S-Corporation wholly owned by John Doe.
Management Team
Examples
The Cooper’s Cup will be owned 100% by JohnDoe.Mr. Doe a graduate of
Cooper’s Cup Arizona State University, has an undergraduate degree in business
administration. During high school, he worked as a waiter in a local hospital coffee
shop that purchased its beans from a local roaster. In addition to being an avid
coffee drinker himself, this job allowed him to learn about the business first-hand.
Read More
In college, Doe worked in a campus coffeehouse for four years, eventually rising
Examples
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The Cooper’s Cup will rely on it's POS (Point of Sale) system to generate daily
Cooper’s Cup accounting and cost activity reports. Mr. Doe will supply these to an outside
bookkeeper for preparation of annual income taxes.
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Personnel Plan
Initially, the cafe will hire 1 manager, 5 baristas, and 2 part-time servers. In Year 2, the cafe plans to hire 1
additional full-time barista.
Important Assumptions
Examples
Start-Up Costs
[Amount]Following are the needed start-up costs associated with the Russet Cup:
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Insurance Premiums
Beginning Inventory
Legal and Accounting Fees
Rent Deposits
[Amount]
[Amount]
[Amount]
[Amount]
Utility Deposits [Amount]
Supplies [Amount]
Advertising and Promotions [Amount]
Licenses [Amount]
Other Initial Costs [Amount]
Working Capital (Cash on hands) [Amount]
Total Startup Expenses [Total Amount]
Use Of Funds
Fixed Assets [Amount]
Operating Capital [Amount]
Total Use Of Funds [Total Amount]
ASSETS
Cash $16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable $0 $0 $0 $0 $0
Inventory $21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets $37,710 $113,340 $184,482 $286,712 $423,416
Share Capital $0 $0 $0 $0 $0
Retained earnings ($80,431) $3,137 $82,720 $192,930 $337,623
Total Equity ($80,431) $3,137 $82,720 $192,930 $337,623
SUMMARY
Net Cash Flow $16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period $0 $16,710 $90,188 $158,957 $258,570
Cash at End of Period $16,710 $90,188 $158,957 $258,570 $392,389