Did you know that owners and operators using a business plan can see growth 30% faster than those not using one?
That’s because a business plan is one of the most important parts of opening any business — coffee shops included.
In this blog, we’ll take you through everything you need to know about coffee shop business plans, including:
- What a coffee shop business plan is (and why you need one)
- How a coffee shop business plan should be formatted, from length to visuals
- Everything a coffee shop business plan needs to include (and what order to follow)
And, if you hang around ‘til the end, we’ve also created a free coffee shop business plan template to help you streamline the process.
Let’s get started.
What is a coffee shop business plan?
A coffee shop business plan is a detailed, written document that outlines every aspect of your business, from your mission and vision to your marketing and financial strategies.
Creating a coffee shop business plan is a key part of opening a coffee business because it provides a clear blueprint for how exactly you’ll run that business. Having a well-written, well-thought-out coffee shop business plan in your back pocket can give you:
- A tangible manifestation of your goals to keep you on track
- References and guiding parameters for hard-to-make decisions
- A head start on figuring out how to avoid common risks and challenges
- An easy way to onboard new team members and catch them up to speed
- Proof for yourself/investors/partners that your business is viable and profitable
… and basically everything else you need to understand your business goals and pinpoint what it’ll take to achieve them.
What should a coffee shop business plan look like?
While there are several elements every coffee shop business plan should include (which we’ll explore more in the next section), there aren’t many “rules” about length, format, or visuals.
Here are some FAQs about what a coffee shop business plan looks like, alongside some baseline parameters to guide your efforts.
How long should a coffee shop business plan be?
The length of your coffee shop’s business plan depends on who you ask.
Entrepreneur.com says a business plan should be 20-30 pages long. Investopedia says a business plan should be between 15 and 25 pages long. And the SBA says there is no “should” for a business plan’s length.
That’s why our recommended length for a coffee shop business plan is “however long it needs to be to include everything you need to include” — because quality beats quantity here, every single time.
Pro tip → While there isn’t a required length or a coffee shop business plan, shorter is better. An investor, new team member, or partner shouldn’t have to read a 500-page novel just to understand your business!
Should there be visuals in a coffee shop business plan?
If you have visuals that are relevant to your coffee shop’s goals, plans, and strategies, then by all means include them!
Here are a few ideas for visuals you might consider supplementing your coffee shop business plan with (either throughout the business plan or in an appendix at the end):
- Gantt chart
- Product photos
- Menu mock-ups
- Organizational chart
- Bar charts to show sales
- Pie charts for market share
Pro tip → If your coffee shop business plan has bigger chunks of data-heavy text (i.e., sales projections), try turning them into tables, charts, and/or summary tables instead. That’ll help your document stay succinct and easy to read.
How should a coffee shop business plan be formatted?
There is no “right” or “wrong way to format your coffee shop business plan… but there are a few best practices you should follow.
- Use headings and subheadings to keep your coffee shop business plan skimmable, organized, and easy to navigate
- Swap big chunks of text for bullet points to break things up and make your most important points stand out
- Keep (labelled and dated) PDF copies of your coffee shop business plan handy so you can share them quickly and easily
As long as your coffee shop business plan follows these best practices — and includes all the key elements it should, which we’ll talk about in the next section — it can be formatted in whatever way makes the most sense for you and your team.
Pro tip → Your coffee shop business plan isn’t a “one and done” kind of thing; it’ll change as your business does! Always keep a working, editable copy of your business plan so you can easily make adjustments or updates as needed.
What should a coffee shop business plan include?
When creating your coffee shop business plan, there are eight main sections you should cover:
- Executive summary
- Mission/vision/values
- Market analysis
- Menu and services
- Marketing/branding plan
- Operations plan
- Technology stack
- Financial plan
1 — Executive Summary
What this section is
An executive summary gives an overview of your coffee shop business plan, highlighting the most important parts of the document. Whoever looks at your coffee shop business plan should be able to read the executive summary and understand everything they need to know.
The executive summary should go at the very beginning of your coffee shop business plan, and should be the very first thing people read.
Example questions an executive summary should answer
- What is your coffee shop’s concept?
- Where will your coffee shop be located?
- What problem is your coffee shop solving?
- What target market is your coffee shop designed to serve?
- What “proof” do you have that your coffee shop will succeed?
- What are your financial constraints? (i.e., startup costs, funding needs, high-level financials, etc.)
2 — Mission and Vision Statements
What this section is
A mission statement is your coffee shop’s “why.” It highlights your business’s value and purpose, explaining why your coffee shop even exists in the first place.
→ E.g., Dutch Bros: “It’s our mission to make a massive difference, one cup at a time.”
A vision statement is your coffee shop’s plan for the future. It focuses on your business’s aspirations and the goals you want to achieve in the long term.
→ E.g., Blends & Brews: “To become a premier coffee shop chain with a global presence.”
Together, mission and vision statements serve to explain your coffee shop’s identity and purpose, but they are distinct from each other. They should both go at the beginning of your coffee shop business plan, ideally following your executive summary.
Example questions a mission statement should answer:
- Why does your coffee shop exist?
- What’s your coffee shop’s purpose?
- What’s unique about your coffee shop?
Example questions a vision statement should answer:
- What long-term goals does your coffee shop have?
- What are your hopes and dreams for your coffee shop?
- Where do you want your coffee shop to be in 5/10 years?
3 — Market Analysis
What this section is
Your coffee shop’s market analysis is a research-focused process that helps you pinpoint who your target audience is, how you can best serve them, and how you can stand out from competitors trying to serve the same audience.
This section of your coffee shop business plan should also include high-level industry trends and insights. That might include demographic research, supply and demand research, or an exploration of political, economic, social, and technological factors influencing the industry (also known as a PEST analysis).
Example questions a market analysis should answer
- What’s your local coffee shop scene like?
- Who is your coffee shop’s ideal customer/target market?
- What are nearby competitors doing (and what’s your advantage)?
4 — Menu and Services
What this section is
Your coffee shop business plan’s “Menu and Services” section outlines exactly what you offer (or plan to offer) to your customers. You should include specific details on each menu item or service, from ingredient costs and necessary equipment to location and shipping costs.
You can also add a sample menu to your coffee shop business plan if you’d like. The appendix is a great spot for this!
Example questions your menu and services section should answer
- What are you serving at your coffee shop?
- How will you serve it? (E.g., café seating, walk-up window, etc.)
- How will you price your coffee shop’s menu items/services?
- Will your coffee shop offer services like mobile ordering or subscriptions?
5 — Marketing and Branding Plan
What this section is
Your coffee shop’s marketing and branding plan is exactly what it sounds like — a plan that outlines your coffee shop’s branding elements and marketing strategies.
In this section of your coffee shop business plan, you’ll define your coffee shop’s high-level marketing strategy, including your short- and long-term goals, and how you plan to achieve them. You’ll also outline different elements of your branding, from your brand fonts and colors to your coffee shop’s logo(s).
Example questions your marketing and branding plan should answer
- What is your coffee shop’s visual identity?
- What marketing channels will you use? (i.e., Email marketing, social media, etc.)
- How will you measure the success of your marketing efforts? How does that differ from channel to channel?
6 — Operations Plan
What this section is
An operational plan is where you explain in detail how you’ll run and manage your coffee shop (based on the goals you set out in earlier sections of your coffee shop business plan).
Operations plans typically include information about the facilities you’re going to use, operating hours and seasonality, suppliers, inventory/inventory management, information tech systems (if you have them), and anything else related to the day-to-day operations of your coffee shop.
This section offers a great opportunity to get more visual with your coffee shop business plan, adding elements like Gantt charts, budget/projection graphs, and timelines, for example.
Example questions your operational plan should answer
- Who are your coffee shop’s suppliers? How will you track that info?
- Are you planning to do any upgrades, improvements, or renovations?
- What kind of facility will your coffee shop operate out of? (i.e., size, location, lease information, etc.)
7 — Technology Stack
What this section is
Your coffee shop business plan’s technology stack is where you outline which technologies you’ll use to keep your business running smoothly and efficiently.
In this section, you’ll detail every type of technology you plan to use and how you’ll use it, from front-of-house tech like point-of-sale systems and payment processors to back-of-house tech like kitchen display systems or accounting software.
You’ll also want to include whether you’ll have tech-powered loyalty and ordering options, whether that’s a website with online ordering or a mobile app.
Keep in mind that this section of your coffee shop business plan isn’t static. As time changes — and as tech trends evolve and change, too — you’ll want to adjust your tech stack (and this section of your business plan).
Example questions your technology stack section should answer
- What tech will your coffee shop use on a day-to-day basis?
- What’s your plan for keeping your tech stack up-to-date and relevant?
- Who will be responsible for managing and maintaining your tech stack?
8 — Financial Plan
What this section is
This is the section of your coffee shop business plan when you start talking numbers. You’ll want to include details on anything and everything “money,” from start-up costs and equipment investments to projected revenue, expenses, and profit margins. You can also include financial projects for the next quarter, year, etc.
Ultimately, the point of a financial plan is to “prove” that your coffee shop can make money (or already is making money) while demonstrating exactly how you’ll do it.
Example questions your financial plan should answer
- What are your coffee shop’s financial needs?
- Does your coffee shop have collateral if you need a loan one day?
- What are your financial projections for the next year? Two years? Five years?
9 — Appendix
What this section is
This section of your coffee shop business plan is where all your visuals can go.
The nice thing about adding an appendix to your business plan is that there is no limit to how many you can add. As long as they’re clearly labelled and organized, the sky is the limit!
Everything we included in our earlier section, “Should there be visuals in a coffee shop business plan?”, works great as appendices, but you might also want to include:
- Floor plans
- A sample menu
- Licenses and permits
- Credit/financial histories
- Contracts and rental agreements
Craver’s Coffee Shop Business Plan Template
Now that you know exactly what goes into a coffee shop business plan — and why your coffee shop needs one — it’s time to start working on your own.
Luckily, you don’t have to go far to get started.
Craver’s coffee shop business plan template has everything you need to get started, including:
- A progress checklist to keep you accountable and on track
- Guidelines for every section, from your mission & vision to your financial plan
- Reminders on what every section should include, and tips to help you out along the way
And did we mention it’s free, too?
A strong, detailed, ready-to-use coffee shop business plan is just a few clicks away.
Ready to get started?
Download your copy of Craver’s Coffee Shop Business Plan Template.
