business plan to set up a cafe

Cafe Business Plan Template

Written by Dave Lavinsky

Cafe Business Plan

You’ve come to the right place to create your Cafe business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Cafes.

Below is a template to help you create each section of your Cafe business plan.

Executive Summary

Business overview.

The Countryside Cafe is a startup cafe founded by Cheryl Nelson and Tammy Overton in Tulsa, Oklahoma. Together they have over twenty years of experience in managing and operating cafes and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable restaurants. Cheryl is the former manager of a family-owned restaurant, where she had oversight of the employees, ordering, systems and financial record-keeping for the restaurant. Tammy was the head staff person of a chain restaurant who managed the scheduling, training and day-to-day operations of the restaurant. Together, they have decided to bring a family friendly environment and classic menu items to Tulsa.

Product Offering

The following are the products and services that Countryside Cafe will provide:

• Exemplary service for customers
• Honest, reliable relationships with vendors and suppliers
• Restaurant services 24/7 hours to accommodate all residents of the area
• Discounted menu pricing and expedited service for first responders
• Family-friendly menu items that everyone can enjoy
• Day to day management

Customer Focus

The Countryside Cafe will target customers throughout the Tulsa region who enjoy eating comfort foods, such as they may have grown up eating. Secondary target customers will be those who enjoy the hometown-feel of a small cafe rather than a large or more modern establishment. Those individuals who occupy nearby businesses or government offices will also be targeted by the Countryside Cafe, as well as those who own farms or ranches in the region.

Management Team

The Countryside Cafe will be owned by Cheryl Nelson and Tammy Overton. Together they have over 20 years of experience in managing and operating a regional cafe and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable organizations. Cheryl is the former manager of a family-owned restaurant and Tammy was the head staff person of a chain restaurant. Together, they have decided to bring a family friendly environment and homestyle, fresh foods to Tulsa. The menu will include breakfast, lunch and dinner meals, as well as popular favorites such as ice cream sundaes and homemade pies any time of day.

Success Factors

Countryside Cafe will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Countryside Cafe
• Comprehensive menu of meals for any time of day, including snacks, such as French fries and desserts, along with soda fountain favorites such as sundaes, malts and milkshakes.
• Countryside Cafe will offer special discounted pricing for first-responders in Tulsa.
• Countryside Cafe will offer a child menu and a play area for children while their parents enjoy their meal.
• First-time visitors to the Countryside Cafe will receive a free dessert of their choice.
• Countryside Cafe offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.

Financial Highlights

Countryside Cafe is seeking $200,000 in debt financing to launch its cafe business. The funding will be dedicated toward securing the restaurant space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Restaurant space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Countryside Cafe.

Company Overview

Who is countryside cafe.

Countryside Cafe is a newly established, full-service homestyle cafe in Tulsa, Oklahoma. Countryside Cafe will be the most reliable, cost-effective, and efficient choice for individuals and families, as well as businesspeople in Tulsa and the surrounding communities. Countryside Cafe will provide a comprehensive menu of favorite meals, snacks and desserts for any diner to utilize. Their full-service approach includes a comprehensive menu and seating options to suit each family, including small children.

  Countryside Cafe will be able to serve over fifty people at one time. The team of owners and staff members are highly qualified and experienced in preparing, making and serving favorite family meals and snacks. Countryside Cafe removes all headaches and issues of finding easy, friendly and moderately-priced meals in Tulsa and ensures all appetites are satisfied while delivering the best customer service.

Countryside Cafe Management History

The Countryside Cafe consists of two experienced restaurateurs with distinctive areas of expertise: Cheryl Nelson and Tammy Overton have over twenty years of experience together in managing and operating a regional cafe and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable organizations.

Cheryl Nelson is the former manager of a family-owned restaurant, where she had oversight of the employees, ordering, systems and financial record-keeping for the restaurant. Tammy was the head staff person of a chain restaurant who managed the scheduling, training and day-to-day operations of the restaurant. Together, they have decided to bring a family friendly environment and honest, favorite foods to Tulsa.

Since incorporation, Countryside Cafe has achieved the following milestones:

• Registered Countryside Cafe, LLC to transact business in the state of Oklahoma.
• Have a contract in place for a 20,000 square foot restaurant space in a family-friendly retail area
• Reached out to numerous contacts to visit the Countryside Cafe upon launch and regularly after the launch.
• Began recruiting a staff of eight servers and four office personnel to work at the Countryside Cafe.

Countryside Cafe Services

The following will be the services Countryside Cafe will provide:

Industry Analysis

The cafe and small restaurant industry is expected to grow over the next five years to almost $500 million. The growth will be driven by consumers who seek favorite foods they’ve always enjoyed. Consumers also want to be served in small, more intimate settings which are relaxing and comfortable. Customers with children will help grow the cafe industry because, as families, they are more relaxed in the informal “down home” comfort of a small cafe versus a large, more formal restaurant.

Costs will likely be reduced as cafes continue to expand and modify their menus to seek out the best, most desirable menu items for consumers rather than spending widely on menu choices that may not be well-received. Costs will also continue to go down due to lower prices on produce and beef within the Oklahoma area. As fresh fruit is more in demand, juices and smoothies will cost less to produce than in the past, as well.

Customer Analysis

Demographic profile of target market, customer segmentation.

Countryside Cafe will primarily target the following customer profiles:

• Individuals and families within the region
• Small business owners and employees within the region
• City officials and those who work in the business of Tulsa
• Farmers and ranchers in the greater Tulsa regions

Competitive Analysis

Direct and indirect competitors.

Countryside Cafe will face competition from other companies with similar business profiles. A description of each competitor company is below.

Mama’s Kitchen

Mama’s Kitchen was started in 1998 by Candy and Jamie Swanson. Originally intended as a truck stop, Mama’s Kitchen grew to include a larger restaurant area in 2005 and has served breakfast and lunch to travelers from that time to the present. Located on the main highway through the city of Tulsa, the restaurant receives many travelers who opt to stop for a meal.

Mama’s Kitchen is twenty-three miles away from the Countryside Cafe. There are a few similarities to the menus served by both restaurants, as homestyle fare is offered. The differences between the two restaurant businesses is found in the family-friendly dining-booth atmosphere of the Countryside Cafe, while Mama’s Kitchen has countertops and bar stools throughout. This makes seating for a family difficult and children are not able to reach the countertops on stools at Mama’s Kitchen, which creates discomfort for children.

Buddy’s Bar & Grill

Owned by Robert “Buddy” Gorman, Buddy’s Bar & Grill is a full-service bar with a small dining room attached. The restaurant is located six miles from the Countryside Cafe. Meals are served at Buddy’s Bar & Grill during lunch and dinner; however, the restaurant is not open for breakfast. Meals are geared toward grilled hamburgers, steaks and fried fish, while the bar menu is laden with appetizer choices served during happy hour each Tuesday afternoon. Robert Gorman is assisted by his sister, Babs, who acts as the lone server in the grill and is known for her fast service and quick wit, which customers find charming. Children are not allowed in the bar, but they can be served in the grill side of the restaurant. The children’s menu is limited to hamburgers or cheese sandwiches served with fries.

Howard’s Family Restaurant

Howard’s Family Restaurant serves breakfast, lunch and dinner in a small dining room attached to the golf country club on the outskirts of Tulsa. It is located ten miles from the Countryside Cafe. Most patrons of Howard’s Family Restaurant are golfers who want to enjoy a meal before or after playing golf. The restaurant is one of a chain of restaurants and, while the prices are higher than those of the other cafes and small restaurants in Tulsa, the restaurant is known by the national marketing of the parent company. Children are served a special kids’ play and dine menu and families are highlighted as the primary target of the chain.

Competitive Advantage

Countryside Cafe will be able to offer the following advantages over their competition:

• Friendly, knowledgeable, and highly-qualified team of the Countryside Cafe.

Marketing Plan

Brand & value proposition.

Countryside Cafe will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a delicious meal in a pleasant surrounding for the entire family.
• Countryside Cafe will offer special discounted pricing for first-responders in Tulsa, including police, fire and hospital staff. Doctors and nurses are also included.
• First-time visitors to the Countryside Cafe will receive a free dessert of their choice, which helps guests feel welcome and comfortable.
• Unbeatable pricing to its clients; they will offer the lowest pricing in the city.

Promotions Strategy

The promotions strategy for Countryside Cafe is as follows:

Word of Mouth/Referrals

Countryside Cafe has built up an extensive list of contacts over the years by providing exceptional service and expertise to their clients, including guests of all ages. The personal contacts and business associates will follow the new owners to the new cafe and help spread the word of Countryside Cafe.

Professional Associations and Networking

The new owners of the Countryside Cafe, Cheryl and Tammy, will join the civic organizations and trade networks to help build their cafe to its potential. They will become active in the committees for city celebrations, as well, to help build visibility of their cafe and raise awareness of their specialty menu items.

Print Advertising

The Countryside Cafe will send a direct mail flyer to each home and business in Tulsa in the two weeks prior to the launch of the restaurant. The flyer will invite everyone to participate in special discounted offers during the first month of business and offer a free dessert for each person who stops by to check out the area’s newest cafe.

Countryside Cafe will fully utilize their website. The website will be well organized, informative, and list all the services that Countryside Cafe provides. The website will also list their contact information and list their menu and pricing, along with delivery options. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “homestyle cafe” or “cafe near me,” Countryside Cafe will be listed at the top of the search results.

The pricing of Countryside Cafe will be moderate and below or on par with competitors so customers feel they receive excellent value when purchasing their products and services. Certain items, such as the childrens’ menu items, will be priced at a reduced profit margin in order to facilitate larger families that want to visit and can afford to do so with the reduced prices.

Operations Plan

The following will be the operations plan for Countryside Cafe. Operation Functions:

• Cheryl Nelson will be the co-owner and president of the company. She will oversee all business development and manage client relations.
• Tammy Overton will be the co-owner and vice president of the company. She will manage the operations and oversee all staff members.
• Tyler Grant will be the Office Manager who will manage the office administration, client files, and accounts payable.
• Tommy Tucker will be the maintenance employee who will provide all maintenance and repairs at the property.

Milestones:

Countryside Cafe will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease restaurant space
• 5/15/202X – Finalize personnel and staff employment contracts for the Countryside Cafe
• 6/1/202X – Finalize contracts for Countryside Cafe vendors and wholesale accounts
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into Countryside Cafe restaurant
• 7/1/202X – Countryside Cafe opens its doors for business

The Countryside Cafe will be owned by Cheryl Nelson and Tammy Overton. Together they have over twenty years of experience in managing and operating a regional cafe and they are highly skilled in the creation of menu items customers love, exemplary service to customers, and in their honed expertise in running efficient and profitable organizations.

Cheryl Nelson is the former manager of a family-owned restaurant and Tammy was the head staff person of a chain restaurant.Together, they have decided to bring a family friendly environment and homestyle, fresh foods to Tulsa. The menu will include breakfast, lunch and dinner meals, as well as popular favorites such as ice cream sundaes and homemade pies any time of day.

Financial Plan

Key revenue & costs.

The revenue drivers for Countryside Cafe are the fees they will charge to customers for their products and services.

The cost drivers will be the overhead costs required in order to staff Countryside Cafe. The expenses will be the payroll cost, rent, utilities, inventory, office supplies, and marketing materials.

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of restaurant customers per Month: 1,000
• Average revenue per Month: $25,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, cafe business plan faqs, what is a cafe business plan.

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

You can easily complete your Cafe business plan using our Cafe Business Plan Template here .

What are the Main Types of Cafe? 

There are a number of different kinds of cafe businesses , some examples include: Take-Out Cafe, Restaurant Cafe, Casual cafe, and Coffee Shop.

How Do You Get Funding for Your Cafe Business Plan?

Cafe businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Cafe Business?

Starting a cafe business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

• Develop A Cafe Business Plan - The first step in starting a business is to create a detailed cafe business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your cafe business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your cafe business is in compliance with local laws.
• Register Your Cafe Business - Once you have chosen a legal structure, the next step is to register your cafe business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your cafe business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
• Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
• Acquire Necessary Cafe Equipment & Supplies - In order to start your cafe business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cafe business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful cafe business:

• How to Start a Cafe

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How to Open a Coffee Shop

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It's been a few decades since Starbucks emerged from Seattle to take over the world and made a coffee shop on every corner the norm. As a result, the way Americans drink coffee has changed drastically.

This has also created a window for entrepreneurs looking to start a business. While the big coffee chains have expanded, so have specialty, independently run shops. According to an article in the New York Times , Americans drink less coffee today than we did in the 1930s, but we’re drinking higher quality, better-brewed cups. As such, many entrepreneurs today might wonder how to start a coffee shop to serve their own high-quality brews.

How to open a coffee shop in 7 steps

Wondering how to start a coffee shop of your own? These seven steps will take you through everything you need to know.

Step 1: Decide whether you want to open your own shop, a franchise, or buy an existing business.

When it comes to starting a business you usually have at least two ways to go about doing it, and with coffee shops, you've got three. When it comes to how to open a coffee shop you can do one of the following:

Completely start from scratch and open your own shop

Open a coffee shop franchise

Buy an existing coffee shop that's for sale

Each of the options has its pros and cons and varying degrees of work required by you. If you choose to open a franchise you'll be bound by many of the aspects of that franchise like the beans they use and the decor of the actual shop. If you buy another coffee shop you might have less construction to do to set up the space as a coffee shop. These options come with limitations as well.

Step 2: Create a business plan.

A well-thought-out business plan is key to creating any business, and a coffee shop is no exception. If you want to open a coffee shop, you probably already have a love of good coffee. To create a successful coffee shop you have to decide how you'll get other people to love coffee as much as you do. A business plan will help get your ideas focused and in one place. Besides the basics of what your coffee shop will be and the products you'll sell, a business plan also includes a marketing and sales plan, as well as financial projections.

An important consideration you'll need to take care of in the early stages, and that you'll include in your business plan, is to decide on the business structure you want your company to operate as. There are several business entity options you can choose, including a sole proprietorship, LLC, C-corp, and more—and the entity you choose will have both tax and legal implications for your business. It's always a good idea to seek the advice of a business attorney when making these big decisions as you start your coffee shop. if you choose to open a franchise, you might already have a business entity that you have to use.

While creating your business plan, you'll have to come up with a name for your business and an idea of where you want to open your coffee shop. Once you find the perfect location be sure to add it to your business plan, it might happen before or after you've written the plan.

You'll also want to outline the pricing of your products, what goods you want to offer, the type of coffee shop you want to have (sit-down, drive-through), and more. It's a lot to think about, but a business plan is where you can get all of these plans down in one place. Beyond that, if you'll need outside capital to make your coffee shop dreams a reality, you'll need to provide a business plan for funding consideration.

Luckily, there are several options for business loans for a cafe, and whether you're looking for funding to start your coffee shop or want to leave the option open for expansion down the road, having a solid business plan from the start will make the process easier.

Step 3: Find the right location.

This step can not be glossed over and you should take your time and consideration when completing it. The location of your coffee shop can make or break it in terms of success. There are some things to look for when looking for a coffee shop location. Coffee shop location considerations:

Size: You want to make sure enough people can fit in the space without feeling cramped. Coffee shops are relaxing areas where people tend to hang out with friends or colleagues and you want the space to be accommodating.

Accessibility: Make sure your cafe is accessible and anyone can enter.

Parking: Will you be dependent on foot traffic? If not you're going to want to make sure there's somewhere for your customers to park either a lot or street parking nearby. If biking is popular in your area, consider adding a bike rack.

Seating: Will customers be limited to seating indoors or is there some outdoor seating you could set up when the weather is right for it?

Rent: This should be one of your top considerations when deciding on a location. How much a business location will cost you is going to be a significant chunk of your budget and you should be sure to include this in your business plan.

Step 4: Register your business and get the proper licenses and permits.

The city or county where you plan to open your coffee shop will dictate the specifics of registering your business, what taxes you'll be responsible for, any necessary licenses and permits, and more. The details of registering a business vary from state to state, but you will need to apply for an employer identification number (EIN) and establish your business structure before you can start the registration process.

You also need to make sure that since you'll be serving coffee, and most likely some food, that you have the right business licenses and permits for that, as well. Usually, health licenses and permits are necessary for serving food. Other types of business licenses include building, zoning, and land-use permits. Be sure you consult with your local business resources so you have the proper documentation in place before you open your coffee shop.

Step 5: Find suppliers.

Customers are looking for a quality experience when they come into your coffee shop. That means quality ingredients and coffee, but also quality service and experience.

While it’s tough to produce the same quality every time, this is crucial in the coffee business, especially in a time when people are becoming more knowledgeable about specialty coffee. Having consistent and quality providers, from the beans to cups and everything else customers interact with can help keep your coffee shop running smoothly and customer experiences consistent.

When you're first starting your coffee business, don't be afraid to spend the necessary time finding the right coffee supplier for your business. Though if you're starting a franchise, they'll take care of this step for you by having their specific grounds. You may have to try a lot to find the right one that will work for the products you want to offer, at the right price, with the perfect taste.

The other way to create consistency is by training employees extensively. If you want patrons to walk past all the other coffee shops on the block and go into yours, you need to offer consistent quality.

Step 6: Create a warm, inviting environment.

A coffee shop is never just about a good cup of coffee. Many people frequent coffee shops as a place to do work, catch up with friends, or to take a break from the workday.

You want your coffee shop to have a warm and inviting atmosphere that's conducive to meetings, relaxing, and chit chat, but also one that's easy to keep clean and orderly. When choosing how to design the shop, be sure to take into account how many people you want the shop to fit and the kind of atmosphere you're looking to create for them all.

Remember when we were talking about the location of your shop? Here's where that comes in because the location can only do so much work for you. The work you do to design the cafe on the inside will also greatly matter. You're creating an entire atmosphere that also serves a purpose.

Step 7: Adopt a good inventory system.

Pay attention to your inventory. At first, you won't really know how much you need when it comes to things like beans and baked good, you probably won't even know how many cups you need a day. So track these things carefully at first so you can get a good handle on how much you're using.

There are a number of inventory management apps available to small business owners who need a way to manage their inventory and budget. Some point of sale systems also offer inventory management, which is something you might want to consider when choosing one. There are specific coffee shop POS systems out there to consider.

No matter what you choose, you want to make sure you have a way to manage what you need for your business so you don't run out of customer favorites or over-order on what you don't need.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How much does it cost to open a coffee shop?

We've gone over many of the expenses you'll face when opening a coffee shop. The rent of the location, everything for the interior design, the machinery, the supplies like beans and cups, employees and more will all add up. Some of these things may cost far more than you're expecting them too, a good espresso machine along can run you up $20,000.

In all you can expect that opening a coffee shop will likely cost you upward of $200,000 when all is said and done. This goes for some franchises as well, Dunkin' for example, requires that you have $250,000 in liquid assets to start a franchise with them. You could consider starting smaller, with a coffee cart or a small pop-up location if you're unsure of the cost or if you don't want to dive in headfirst. But know that none of these options will be cheap or require no money up front.

Start Your Dream Business

The bottom line

Running a small business is no easy feat, but for all of those coffee enthusiasts who have dreamed of opening a cafe of their own, now might be the time. Consumption and interest in the specialty coffee culture has increased steadily in recent years and doesn’t seem to be stopping any time soon.

While competition from bigger chains might have been a problem at one time, modern consumers prefer to support local neighborhood shops—especially if they’re offering what the big chains can’t. So if you've been wondering how to start a coffee shop, start thinking about the above steps to see if this is a feasible business venture for you.

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

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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.

Disclaimer: The information provided by  StartMyCoffeeShop.com  (“The Site”) is for general informational purposes only. All information on the Site is provided in good faith. However, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the Site. Under no circumstance shall we have any liability to you for any loss or damage of any kind incurred as a result of the use of the Site or Reliance on any information provided on the Site. Your use of the Site and reliance on any information on the Site is solely at your own risk. This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs. Terms and Conditions. ( https://startmycoffeeshop.com/terms-and-conditions/ )

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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Cafe Businesses Guide: 12 Key Components of Cafe Businesses

This cafe businesses guide is your one-stop shop for learning how to open a cafe and run it successfully. From general opening steps to business plan components to marketing tips, we’ve compiled everything you need to open and operate a cafe business. Read on for these 12 facets of opening a cafe business. 

How to Open a Café: 12 Key Café Opening Success Solutions

Learning how to open a café is the start of an adventure of business ownership, customer satisfaction and customer experience , and community connection. From hosting brunch in your café to managing inventory, there’s a lot of work to be done and fun to be had. These 12 first steps will get you headed in the right direction.

12. Dive Into Your Competition

Starting a successful café business is, in part, reliant on the current café scene in your location. Check out your competition, and see where there are gaps in the industry you can fill. You’ll find a way to start building into the community.

11. Write Your Business Plan

Every business should have a business plan. Not every business does, but when you write up a business plan, you’re that much more prepared to be successful. You can structure your business plan like a restaurant business plan . 

10. Find a Location

Finding your location will come into your competitor research, and is among the first things you’ll want to do. You could have a pop-up restaurant café option in different locations. Maybe you’ll find the perfect rental space. Whatever it is, start searching from the start. 

9. Learn All About Licensing

Your business license needs will vary depending on your location and what you’re serving in your café. If you’re serving alcohol, look into getting a liquor license . Be sure to check all requirements with your state and county.

8. Build Your Café Concept

Building your café concept can come from tips on how to develop a restaurant concept . Your café concept is similar to your business plan, but different in the goal. Concepting a café is all about finding out how you want to design your business from an aesthetic and customer-centric perspective.

7. Learn the Café Rules and Regulations

Beyond business licensing, there are plenty of rules and regulations you need to learn. From food saféty to general health and wellness, businesses–especially businesses serving food–have a lot of rules to follow. 

6. Build Your Menu Plan

Choosing your menu types and offerings is a vital part of your business plan and café plan in general. From the beginning you need a plan for what you’re serving and how you’re sourcing it. The importance of sustainability can come into play. 

5. Hire Your Stellar Staff

Hiring everyone from wait staff to a café manager to baristas is a critical move. It's ideal to do so once you’ve got your business situated for the grand opening. After you have a business plan set up and funding secured, posting jobs will help prepare you to bring in the best staff.

4. Gather Your Funding

Gathering funding can be a sticking point for businesses. If you have savings set up, you’ll be ahead of the curve. If not, getting a small business loan or finding other investors is something you should consider early on.

3. Organize Your Inventory Management

Getting your inventory management system set up is something to priortize as soon as you start buying inventory. The BinWise beverage inventory program can help you with liquids. BlueCart can come along for your general order management needs.

2. Find a POS System

Learning how to choose a POS system and finding the right one for you is crucial for making money and managing it well. Your POS system is one of the backbones of the technological support of your café. 

1. Build Up Your Marketing

There’s never a bad time to start your marketing practices. You can start marketing your café business as soon as you have it planned in a concrete manner. The more you get the word out, the more success you’ll have right out the gate. 

Opening a Café: Swinging Open Your Café Doors 

The process of how to open a café is the start of a great adventure in your own café business. This cafe businesses guide is the place to start learning about everything, including the cost to open a cafe. 

"Key Takeaway: Learning how to open a café is the start of an adventure of business-ownership, customer satisfaction and customer experience, and community connection."

How Much Does It Cost to Open a Cafe? 8 Cafe Cost Factors

When you’re learning how to open a cafe, it’s important to learn the answer to “How much does it cost to open a cafe?” Your startup costs, overhead expenses , and everything else will be a foundational part of your cafe business plan and future success. There is the cost of labor . Restaurant food cost will come into play. There are food inventory costs, where food inventory software may come into the equation. 

The cost to open a cafe can start as low as $80,000, but it can go all the way up to $1 million as well. Your cost will depend on the size of the cafe you want to open and your goals for the business. It’s similar in that regard to the cost to open a wine bar or the cost to open a pop-up restaurant . 

So, how much does it cost to open a cafe? The answer is, it varies. You can expect to spend up into the tens of thousands, if not more. These eight costs of opening a cafe will play into your overall cost. Finding cost-effective options where you can for these costs will help you lower overall funding needs. 

8. Location Costs

Your location costs are going to be some form of rent unless you buy a location outright. Depending on the type of cafe you want to open, a sole location that you purchase could be a great fit. Renting, however, gives you a little more flexibility. The price will depend on your location. The guarantee is that this cost will be ongoing. 

7. Inventory Costs

Inventory costs are another ongoing cost of owning and operating a cafe. Your inventory consists of all beverage and food items and ingredients. It also covers disposable items and things you’ll need to keep replenishing. Your inventory costs will likely be one of the highest costs on your list when it comes to items you need on hand.

6. Payroll Costs

Payroll costs are an ongoing expense once you hire your staff. When you’re just starting out, it may just be you for a bit, but that’s a good time to plan for payroll expenses. Budget to pay your employees a living wage, and plan for a future with more employees, since that is what business growth will require. 

5. Licensing Costs

Your licensing costs will depend on your location and what you want to put on your menu. A general business license is a fixed expense to plan for. Getting a liquor license will also likely be on your list. BinWise isn’t a legal advisor. Our recommendation is that you look into your local licensing needs to make sure you have everything you might need.

4. Marketing Expenses

Marketing expenses won’t be a huge part of your overall budget, but they are a very important part. Small business marketing is best kept to a small amount of your budget. Finding ways to make that amount work for your email marketing , content marketing , and business branding is key. 

3. Insurance Costs

Your insurance costs are another location-dependent cost. Some coverage areas to consider are the business location, your employees and their health and other insurance, and liability insurance. Consulting an attorney for small businesses will be helpful in making sure you have all your insurance needs covered.

2. Equipment Costs

Your equipment costs are primarily a startup cost. If you invest in the best equipment from the beginning, you can avoid some replacement costs down the road. Budgeting several thousand dollars for your equipment costs from the start will help you get what you need for a smooth business opening and success down the line.

1. Business Taxes

Business taxes are an ongoing expense that could derail your business if you aren’t prepared for them. Like many costs on this list, business taxes are location-specific. For your location, look up taxes beforehand, and work with an accountant to make sure you have your ducks in a row. 

The Cost to Open a Cafe: Cash and Credit for Your Cafe

When you’re starting your journey of being a cafe owner, there are plenty of questions you’ll find yourself asking. How much does it cost to open a cafe? How many employees do I need? How do I organize my menu with alcoholic beverages, coffees, and all manner of foods? All of these and more will come into your cafe business plans. 

Writing a Café Business Plan: 9 Café Business Plan Steps

Writing a café business plan is one of the best concrete steps you can take toward opening and operating a successful café. These nine parts of the business plan will help you map out your cafe and prepare for upcoming expenses and points of concern.

9. The Executive Summary

Your executive summary is the place to briefly share an overview of all the sections in your business plan. It’s the place for stating what your business is, why you’re opening it, and how you’ll execute each step of the process. 

8. Success Plan

The success plan portion of your café business plan is the spot to identify the area of your industry you’re filling and what you’ll do for your customers. This is the place to share why your business will be a successful café. 

7. Competitor Analysis

Your competitor analysis is something that helps you to define the parameters your café will fulfill. This section is where you’ll check out the other cafés in your area, see what they’re doing and how it’s working, and what you can do better.

6. Market Analysis

Market analysis goes hand in hand with competitor analysis. Market analysis is explicitly an analysis of the customer market you’re striving to obtain. What is your market interested in? What are their current café options? What can you do to draw them in? Answer those questions in your market analysis.

5. Services Demonstration

Your services demonstration is the place where you’ll lay out what you’re offering in terms of services. You’ll want to touch on menu offerings, with a menu layout for food and safety checks. You’ll also want to write out your plan for hours and frameworks for operations.

4. Marketing Strategies

Your marketing strategies section is the place to overview your marketing goals and lay out a few marketing campaign plans. You should give a rundown on the marketing plan in terms of how you want to grow the business. Your campaign mock-ups can be more in-depth, to give you plans to start with.

3. Ownership and Management Structure

The ownership and management structure part of your café business plan is where you’ll define the ownership structure. This section is built for the purpose of having a set structure for legal and organizational needs. It’s especially important if you’re sharing your business plan with potential investors.

2. Operations Plans

Your operations plan section is the spot to give a walkthrough of what daily operations will look like. This will include things along the lines of opening and closing procedures, scheduling, and inventory management plans. It’s your place to make sure you have a plan to keep everything running well. 

1. Financial Plans

Your financial plans section is the place to write out your budget, and plan for any investment or loan needs. The budget section is for you, but it’s also to share with anyone who you will be asking for loans or investments from. Overall, this section’s purpose is to help you figure out what you need financially, and how you can get it.

Café Business Plans: Plan to Plan Ahead 

Writing a café business plan gives you more control over the startup and operations of your café business. Having a written plan is a way of solidifying your plan through a step-by-step analysis of each part of the business. 

It’s also a great resource for you to stay grounded in your ideas, and grow them with measured steps when the time comes. You can use it to decide which type of cafe you want to open.

"Key Takeaway: Writing a café business plan gives you an outline of your business you can refer to and expand on at any time.

Types of Cafés: 12 Classic and Innovative Types of Cafés

Learning about all the types of cafés is a delightful part of the journey of learning how to open a café. These 12 types of cafes run the gamut of what you can do with your cafe business.

12. Drive-Thru Cafés

Drive-thru cafés can take many forms. Some are coffee shops. Others are more along the lines of a Sonic-esque place, with a drive-thru and places to park. Many are somewhere in between. A drive-thru café is a great option if you’re working with a limited budget and you want to create a business that is easy to maintain.

11. Café Food Truck

A café food truck fits in among all types of food trucks. If you’re located in one of the best places to start a food truck business, a café food truck is a great plan. It can even turn into a café with a permanent brick-and-mortar location.

10. Coffee Shops

Coffee shops are the type of establishment many people think of when they hear the word café. A coffee shop café is a solid business plan for any location since you’re likely to find coffee lovers no matter where you’re at. 

9. Pop-Up Café

A pop-up café is a smaller scale version of a pop-up restaurant . With pop-up restaurant marketing tactics and delicious food, a pop-up café is another great way to open a cost-effective café business and draw in the crowds.

8. Café Bakery

When people think of cafés, after thinking of coffee they generally drift to considering baked goods. A café bakery, therefore, is the perfect place in the world of cafés to build a business that customers will love. Who can say no to delicious pastries and drinks all in one place?

7. Themed Cafés

Themed cafés are a subset of café businesses that can be many things to many people. A themed café is, at a base level, any sort of café. The unique type of café comes into play with the theme decided on by the owner. From a cultural theme to a location-based option, themed cafés can be anything you can dream up. 

6. Specialty Cafés

Specialty cafés are a café of any size or shape that has a specialized offering for customers. Some popular options are to offer a specific type of cuisine or a branded space that speaks volumes. 

5. Cat Cafés

Cat cafés do, technically, fall under the umbrella of themed cafés. Cat cafés have, however, become such a common and famed theme that they get their own spot on this list. You can serve up any dish at a cat café, the truly important factor is the cats!

4. Brunch Cafés

Brunch cafés make up some of the best cafés and the best brunch places around the world. That’s not an exaggeration, brunch truly has taken over the world in recent years. A brunch café business will bring in customers, as long as you get the eggs Benedict right. 

3. Pub Café

A pub café is, to put it plainly, a café type of restaurant with a pub design. This type of café blends in with hole-in-the-wall spots and greasy spoons. It’s a mix of cute and rugged that you can’t go wrong with.

2. Breakfast Café

Breakfast cafés are a subset of specialty cafés, with their specialty being everything to do with breakfast. You can do an expansive breakfast café with all manner of brunch and lunch items. 

1. Classic Café

A classic café takes the number one spot on this list as a classic for a reason. A classic café is a small restaurant, with a number of meal options throughout the day. It’s down the middle, and a perfect option for anyone looking to open a café and see where it goes.

Types of Cafés: What’s Your Type? 

These 12 types of cafés are a great source of inspiration for your own café business. Once you’ve decided on the type of cafe you want to run, it’s time to get into the business specifics, including cafe inventory management.

Cafe Inventory Management: 15 Facets of Cafe Inventory 

Cafe inventory management is a key component of the work that goes into opening a cafe and running it smoothly. Cafe inventory management, including these 15 facets of the inventory process, gives you more control over your cafe business.

Cafe Inventory Lists

These five cafe inventory lists are the main categories of inventory you’ll have in your cafe. Overall, everything in your cafe that needs to be kept in stock, in some form or another, is under the umbrella of these categories of cafe inventory management.

5. Food Inventory

Food inventory makes up a large and very important portion of your cafe inventory management. Food inventory management will help you focus on getting the best foods, and always having them ready for your customers.

4. Dishes and Cutlery Inventory

Dishes and cutlery inventory isn’t something you think about immediately when you think of food and related inventory, but it’s especially important to stay on top of. Replacing dishes and cutlery as needed is the main function of dishes and cutlery inventory. 

3. Cleaning Supplies Inventory

Cleaning supplies are a part of every working part of your cafe business. From cleaning the tables after customers have dined to keeping the kitchen clean, you need plenty of supplies. 

2. Business Maintenance Inventory

Business maintenance inventory is a broad category, as it covers everything you need, from a business standpoint, to keep the cafe running smoothly. This could be anything from office supplies, technological support, or accounting supplies.

1. Beverage Inventory

Beverage inventory goes hand-in-hand with food inventory for a cafe business. Your beverage inventory starts with the general list of the beverages you serve. It gets broken down from there into ingredients, bottle volume levels, and bar glassware . 

Inventory Software Support

Inventory software support eases every step of the inventory process. Counting by hand and keeping endless spreadsheets is an exhausting way to do inventory. These five software support systems make inventory streamlined, to give you one less thing to think about while you run your business.

5. Warehouse Inventory Software

Warehouse inventory software is a subset of general inventory software. Getting software that encompasses your inventory warehouse gives you greater control over your inventory every step of the way.

4. Accounting Software

Accounting software will help you when it comes time to have your books in order. QuickBooks is a piece of accounting software that is loved and trusted by many business owners industry-wide.

3. Food Inventory Software

Food inventory software will help you keep your menu fresh and ready for customers. Food inventory software helps you keep track of what you’re low on, so you never have to worry about your reorder point . 

2. Beverage Inventory Software

Beverage inventory software goes hand in hand with food inventory software. It’s there to help you keep track of drink ingredients and general beverage stock, so you can confidently serve up all the best drinks.

1. POS Software

POS software, or point of sale software, is a critical part of the software support of every business. Choosing the right POS system for your cafe business will keep your finances moving smoothly.

Cafe Inventory Management Ideas

Beyond cafe inventory management techniques and software support, there are ideas you can implement to make your inventory process more efficient. These five cafe inventory management ideas will help you stay on top of your inventory, and make it a helpful, headache-free part of your cafe business.

5. Make Use of a Perpetual Inventory System

A perpetual inventory system is one idea you should implement right away. It’s a system where you do regular counts, so you can avoid an intense inventory count and keep everything in line.

4. Stay Organized Every Step of the Way

A good inventory system starts with organization. From the moment you start your cafe, keep your inventory organized so you can stay on top of it.

3. Focus on User-Friendly Features in Software

When it comes to choosing the software that will help you with your inventory process, focus on user-friendly programs. When you’re in the throes of inventory, the last thing you want is inventory software that is complicated to use.

2. Share Inventory Duties with Management Employees

Sharing your inventory duties with managers and supervisors at your cafe will help to ease the process and build up your team. A cloud-based software will help with this endeavor.

1. Build Inventory Time Into the Schedule

Inventory can easily become something you dread every time it comes around. Avoid that situation by building inventory time into your schedule, so it’s never something that you have to struggle through.

Managing Cafe Inventory: Put Your Management Where Your Mouth Is 

Mastering cafe inventory management will give you control over the ins and outs of your cafe business. Once you’re set with inventory plans, it’s time to dive into using that inventory, including within your menu items. 

"Key Takeaway: Mastering cafe inventory management will give you control over the ins and outs of your cafe business."

Menus for Cafes: 12 Menu Categories for Cafe Businesses

Learning about menus for cafes is a delightful part of learning how to open a cafe, for all types of cafes. Planning your menus is vital for cafe success, and fun for learning about what you can provide for customers. These 12 menu categories are a great place to start.

12. Pastries

The pastry section of your menu is a classic cafe offering. Your pastries could be breakfast items, dessert items, or perfect for any time of day. You just can’t go wrong with pastries for a cafe business. If you can have a part of your kitchen be viewable for customers, so they can see the making of the pastries, it’ll be an extra special experience. 

11. Brunch Menus

A good brunch menu is ideal for any cafe specializing in brunch offerings. The rise of brunch as a popular meal over recent years has made this an even more important part of menus for cafes. From mimosas to eggs Benedict, perfecting your brunch menu is key.

10. To-Go Specialty Items

To–go specialty items fill a specific niche in the world of cafes. The COVID-19 pandemic ramped up the love of to-go orders from peoples’ favorite restaurants. You can play into that by having a specific to-go menu section with items that are equally delicious when they’ve traveled home.

9. Desserts

A dessert menu is a classic for any type of restaurant, bar, brunch cafe, or any type of cafe. Having a mix of sweet and savory dessert options will make your dessert menu a must-taste for anyone enjoying time at your cafe. 

8. Soups and Salads

Soups and salads are another classic no matter the place or theme of your cafe business. A mix of soups and salads that mix well together and with other items across your menu is the best plan. You should have at least four options for each.

7. Appetizers

Having a strong list of appetizers on menus for cafes brings people in the door for a quick bite or for the prelude of a longer meal. Your appetizers should include a mix of classic appetizers and specialty items specific to your type of cafe.

6. Domestic and Imported Beer

Domestic and imported beers come into play with the alcoholic beverages section of your cafe menu. For your beer selections, a mix of domestic and imported options will keep all your beer-loving customers happy. A good mix will also be helpful if there is ever any issue with the supply chain.

5. Specialty Cocktails

Specialty cocktails also join the party of your mixed drinks and 21 and over beverages. Having a mix of cocktail ingredients and classic cocktails available gives your cafe a punchy edge. Some cafe-specific cocktails, named after personal touches in your cafe, are a great way to make this part of your menu unique.

4. Coffee and Tea

Your coffee and tea lists for menus for cafes need to be immaculate. There are going to be customers who come in specifically to enjoy breakfast and brunch. Having excellent sources for your coffee and tea, and serving them up in aesthetically pleasing ways will exceed the expectations of your morning and early afternoon customers.

3. Wine Lists

Having great wine lists is a must for any bar or restaurant type of business. Your wine lists should complement your menu items. You can also lean into seasonal wine options, with summer white wine treats and red wine surprises in the colder months.

2. Entrees 

The best entrees can make or break a restaurant or cafe business. Put care into your entrees, and make them pairable with other options on your menu. Your customers will come in for the drinks and appetizers and keep coming back for the entrees. 

1. Signature Dishes

Signature dishes mean something different to every cafe. Whatever you’re most passionate about, make it a signature dish. If you have something with a unique ingredient, it belongs on this part of your menu. 

Cafe Menus: What Cafe Treats Will You Serve Up? 

When it comes to designing and creating menus for cafes, there’s plenty of work to do. It also ties into your cafe marketing strategy.

"Key Takeaway: Learning about menus for cafes is a delightful part of learning how to open a cafe, for all types of cafes."

Marketing Strategy for Cafe Businesses: 9 Marketing Tips

Learning about marketing strategy for cafe businesses will give you a business edge and expand on your work for all other aspects of opening your cafe. These nine marketing tips will help you define the space your cafe will fill in your community.

Cafe Marketing Strategy

These three upcoming cafe marketing strategies detail the areas of your cafe business that will be emphasized in your marketing plan. These categories mix and match together to create your marketing campaigns. You can pick and choose which ones you act on at a particular time. Overall, however, all three are vital for a successful cafe marketing strategy.

3. Marketing Your Meals

Marketing your meals, including foods and beverages, is one critical third of the trifecta of marketing strategy for cafe businesses. Your dishes and drinks are the key reason customers are going to come back time and again. Make use of them in your marketing to draw people in.

2. Location Marketing

Location marketing will help you build a rapport with your community and find your niche. Cafes are typically a type of restaurant that gets drawn into the local fold and relies on local credibility to find success. Marketing for your location, appealing to neighborhoods, and leaning into the culture, will help boost your business. 

1. Brand Marketing

Brand marketing connects to location marketing and marketing for your meals. Brand marketing is all about showcasing what makes your cafe unique. Maybe it’s some specialty signature dishes. Perhaps it’s the history of you as a cafe owner and the reason you got into the business. Whatever it is, tie it into your marketing efforts. 

Local Cafe Marketing

Local cafe marketing is a unique subset of the overall marketing you’ll be doing for your cafe business. Local cafe marketing techniques, including these three, will help you build your business locally to get established. They focus on building your community with customers and other small businesses alike. Those two areas of growth will help your business become a local.

3. Customer Rewards Program

A customer rewards program is an efficient way to build up your customer base and create a local following. Your rewards program could give people a free meal voucher, or alert them ahead of time about special events. 

2. Host Special Events

Speaking of special events, hosting special events is a great way to invite the community into your restaurant for a unique occasion. You can throw themed events or happy hours. Whatever it is, get the word out and get people excited.

1. Work with Other Business Owners

Working with other small business owners in the area will help you network within the business community. This will give your business a place in the local scene beyond the community of customers you build. 

Cafe Marketing for Business Growth

All marketing should lead to success in business, but some marketing plans do lead to growth more efficiently than others. These three solutions of marketing strategy for cafe businesses and growth are designed to move businesses onward and upward. They focus on things that can propel your business with the use of what’s already working and what can be improved.

3. Promote Your Best Dishes

Promoting your best dishes is one of the best ways to grow your business through your culinary expertise. Your best dishes are going to be some of your greatest drivers of profits. The more people know about them, the more your business will benefit.

2. Ask for and Act on Customer Reviews

Your customers will be one of the greatest indicators of how your cafe is doing. To make use of the well of customer experience, ask your customers for reviews. This can be done in an email form, or with a review card they can briefly fill out at the cafe. 

1. Keep Up with Competitor Analysis

Keeping up with competitor analysis will keep you apprised of any changes your competitors make to their business plans. If you see a shift, check it out, and look into revamping your cafe business to keep up with the times.

Cafe Marketing Strategies: Find Your Market 

Learning about marketing strategy for cafe businesses will get you ready to open your cafe doors and master your customer service and business growth plans. It goes hand-in-hand with learning about cafe rules and regulations.

Cafe Regulations: 12 Regulations You Need to Learn About

Learning about cafe regulations is a critical part of learning how to open a cafe. These 12 types of cafe regulations cover your cafe plans when it comes to every facet of your business. 

12. Resale Permits

Resale permits are a larger part of the permitting you need to sell food and drinks. They give you the legal right to resell items you’ve bought from wholesale suppliers. 

11. Live Entertainment Licensing

Living entertainment licensing will come into play if you decide to have live music or other entertainment events at your cafe. You need the licensing in place to be able to host those events. 

10. Alcohol Sales

Alcohol sales are a major part of getting your licensing squared away. Getting a liquor license can take time and money, so if you’re selling alcoholic beverages, get started on the process right away.

9. Business Licensing

General business licensing comes into play for every business. A business license, as a basic license, gives you permission to operate as a business. It should be one of the first licenses you get. 

8. Food Permits

Food permits are another must-have for a cafe business. A food permit gives you permission to sell food on the premises. It also ensures you’re following health standards for food preparation.

7. Seller’s Permits

Seller’s permits go hand-in-hand with resale permits, but with a broader scope. A seller’s permit gives you the general authority to be selling from your legal business premises.

6. Business Insurance

Business insurance is something to get after you’ve gotten set up as a licensed business. This insurance will help protect you and your employees. It will also cover your cafe against any litigation that could be brought against you.

5. Food Handler Permits for Employees

Food handler permits for your employees are an absolute must. You’ll need general food licensing for the cafe. On top of that, everyone who handles food in your cafe will need a food handler’s permit. 

4. Health and Safety Regulations

Health and safety regulations for cafe businesses cover your food preparation, but they also extend to cleanliness standards around the cafe. From the kitchen areas to the tables and guest-facing spaces, health and safety are kept in check.

3. Location-Based Environmental Regulations

Location-based environmental regulations may or may not exist for you and your cafe. In many countries, states, and smaller localities, there are regulations around materials you can use and standards to maintain.

2. Trademark Applications

Trademark applications are a unique licensing need. When it comes to designing the brand of your cafe, the more unique and creative, the better. When you have a logo and other brand resources set up, a trademark will make your cafe truly one of a kind.

1. Certificate of Occupancy

A certificate of occupancy goes together with the other general licensing you need to own and operate a cafe business. This certificate is a statement that your business is legally squared away to operate from the location you have set up.

Cafe Rules and Regulations: Are You Up To Code?

Sorting out the rules and regulations of your cafe business gets you another, quite tangible step closer to opening the doors for business. As you’re preparing for those opening days, diving into cafe management will give you even more solutions to the daily work of a cafe business.

"Key Takeaway: Cafe regulations extend to everything from general business licensing to alcohol licensing to food permits to health and safety requirements. Every part of your cafe business needs to be checked off the list of regulatory requirements."

Cafe Management: 10 Responsibilities of Cafe Managers

Cafe management, like restaurant management or bar management , is a multi-faceted line of work. It involves working with cafe regulations, understanding the cost to open a cafe, working with the cafe business plan, and spending time on cafe inventory management. 

10. Support Staff In Customer Service

Supporting cafe staff in all aspects of customer service is one of the key daily responsibilities of cafe managers. You’re there to help when extra hands are needed, and step in for conflict resolution should the situation occur. 

9. Maintain Revenue Records

Maintaining revenue records is easiest when done on a daily basis. It’s a clear-cut job for a cafe manager because managers have the most regular exposure to the revenue numbers. 

8. Update the Menu

Updating the menu can include everything from reprinting menus as needed to adding new food items to updating the wine lists . It’s not a daily job, but it does come up from time to time.

7. Manage Daily Inventory Needs

Managing daily inventory needs helps to keep your inventory running smoothly each day of the week. Staying on top of inventory and keeping all the necessary inventory in stock is a key manager duty. It makes your job easier and does the same for all employees. It also streamlines the cafe experience for your customers. 

6. Vendor Coordination

Vendor coordination for cafe management comes into play with order management and inventory management. As orders come in, you’ll have the task of checking them in. If any issues arise, a focus on vendor coordination will make your job easier. You can work on vendor coordination by being timely with ordering products and being respectful of the time when your orders are delivered.

5. Regular Order Management

Regular order management plays into vendor coordination and inventory management. At any given time, a cafe should have enough inventory to last a week. Keeping up with regular order management will help you achieve that goal and avoid worrying about your reorder point. 

4. Customer Complaint Resolution

Customer complaint resolution isn’t always a huge part of the job of a cafe manager, but when it comes up, it’s extremely important. This responsibility ties into taking care of your employees and backing them up in customer service. When there is a customer complaint or a customer causing trouble, it’s your responsibility to support your employee and resolve the conflict. 

3. Health and Safety Standards Management

Health and safety standards management is a task for the cafe team at large, but the bulk of organizing these standards rests with the cafe manager. There are rules and regulations you need to follow in a cafe business. As the manager, it’s your job to make sure those rules are being kept up with and to correct any issues before they become a problem.

2. Hiring Employees

Hiring employees is the start of your managerial responsibilities with the cafe staff. You and the cafe owner will work together on finding the right staff, but ultimately, the hiring tasks will be on your to-do list. 

1. Managing Scheduling

Managing scheduling is one of the most specific and important ways you can support your staff. This involves creating the schedule and working with employees as they request time off and specific days off. It’s weekly work that will give you a consistent opportunity to look after your staff.

Cafe Management: The Makings of a Well-Managed Cafe 

Cafe management comes with a lot of responsibility and hard work. It’s fulfilling work, fueled by customer experience and pride in your team and the work you accomplish. It’s one of many parts of working at a cafe.

Working at a Cafe: 13 Key Job Roles of a Cafe Business

Working at a cafe brings you into a delightful, bustling business. Whether you’re the Sous chef , a restaurant cashier or host, or a restaurant busser , there’s so much opportunity in all types of cafes. You could work in cafe and restaurant management, or as a cafe accountant to deal with operating expenses . The options are (nearly) endless with these 13 key cafe jobs.

13. Cafe Owner

The cafe owner is the start of the list, from a hierarchical standpoint, of the people who work at a cafe. In some cases, the owner will also be the manager, a supervisor, and even fill in the accountant role.

12. Cafe Manager

The cafe manager is responsible for the daily cafe management operations. This includes everything from employee management and support to inventory ordering and stock maintenance. 

11. Cafe Accountant

The cafe accountant is a very specific role within the jobs that fall within a cafe business. The accountant is responsible for keeping track of revenue and expenses, to keep the business on budget and in profit. 

10. Servers

Servers are one of the most important links in the chain of working at a cafe. Servers are responsible for taking orders, delivering food, and ensuring customer satisfaction. 

The chef is part of the team that makes up the kitchen staff in a cafe business. The chef can be a Sous chef or other type of chef. The key ingredient is that they manage the kitchen and oversee the dishes.

8. Kitchen Prep Workers

The kitchen prep workers in a cafe business report to the chef, and are another key component in keeping the cafe running smoothly. Having the best kitchen prep workers means your cafe provides great meals on a timely basis.

If your cafe has coffee options, a barista may be in order. The barista's job revolves solely around making coffee orders and keeping the coffee equipment in good working order.

6. Mixologist or Bartender

The mixologist or bartender is a necessary part of your cafe business when it comes to serving up the best drinks. Your bartender or mixologist will be in charge of drink mixing and serving at the bar top.

5. Dishwashers

One part of the work of the kitchen comes from the prep workers. The other part comes in the post-meal work with the dishwashers. Hiring a few dishwashers to keep your kitchen stocked with clean dishes will ease your kitchen process.

Bussers are the flip side of the server coin. Bussers are responsible for clearing away dishes and cleaning and sanitizing the tables in between guests. 

3. Barbacks

Barbacks work with the mixologist or bartender to keep the bar space efficient. They clean, serve drinks, and provide support to the bartender or mixologist as needed.

2. Sommeliers and Cicerones

Sommeliers and cicerones–certified beer specialists–work in a similar range to mixologists and bartenders. The difference is the level of specification in the job of a sommelier or cicerone. Their specialties are their focus in all their customer service roles.

The host of a cafe business is a tidy role, but it’s oh-so-important to the overall success of the business. The host welcomes in customers as they arrive, and they set the tone for the entire cafe. 

Hiring for Cafe Work

When it comes to hiring for cafe work, there are plenty of skills you should interview for. In your restaurant interview questions , ask about customer service experience, kitchen and food handling skills, and teamwork experience. When you take care in the interview process, you’ll fill your employee roster with all the best people.

Cafe Work: Cafes Can Be the Work For You 

Working at a cafe is busy, fulfilling, exciting work. It’s an active space with a lot going on every day. For cafe owners and workers alike, the day-to-day operations can be hectic, but oh-so worth it. As a cafe owner, you can mix up that daily work and experience by exploring unique cafe ideas.

"Key Takeaway: Working as part of a team at a cafe business built around a passion for customer service and great food is, by nature, a joyful experience. With the right team, cafe work can be one of the best jobs out there."

Unique Cafe Ideas: 9 Fun Ideas to Make Your Cafe Pop

Learning how to open a cafe gives you the opportunity to dive into unique cafe ideas. From the customers to people working at a cafe, leaning into a unique idea for the cafe gives time spent there a more delightful experience. For all types of cafes, these nine unique cafe ideas can add to the business model and food service of the cafe. 

Cafe Theme Ideas

Giving your cafe business a theme can help you effortlessly make use of unique cafe ideas. There is so much variety in the theme options you can choose from, so you can truly make this idea your own. These three cafe theme ideas are all excellent, you can’t go wrong with any of them, whether you’re hosting brunch or setting up for dinners. 

3. Indoor Garden Theme

An indoor garden theme is a great way to brighten up your cafe and bring life into the space. You can have a mix of hanging plants, shelved plants along the walls, and potted plants. If you have an outdoor space you can even have a classic garden area. 

2. Book Cafes

Book cafes are a theme that has been rising in popularity, and there is still so much room for this wonderful theme to grow. One of the best options for starting a book cafe is to create a space where customers can sit and dine, and also browse bookshelves. 

1. Parisian Theme

A Parisian theme is excellent for so many cafes. The classical, relaxed setting of a cafe immediately invites themes from Paris and French living in general. You can lean into the Parisian theme by looking at famous Paris cafes and emulating their style and menu options.

Cafe Food Presentation Ideas

Among the unique cafe ideas that relate to the direct customer experience are unique cafe food presentation ideas. Having delicious food should be your main goal from day one. To emphasize that goal, cafe food presentation gives you a way to spruce up each dish. These three ideas will give you a feel for how you can change up food presentation. 

3. Cafe-Themed Dishware

Cafe-themed dishware is a subtle way of branding your cafe and sprucing up every dish. Something as simple as a logo stamped in a brand color on each plate, bowl, and cup will give you a uniformed food presentation. 

2. Semi-Table Prepared Dishes

When you think about semi-table prepared dishes, the image that comes to mind is likely something along the lines of a hibachi grill type of place. While your cafe might make use of those tools, this tip can apply to anything that involves the meal presentation taking part at the table. 

1. Edible Garnishes

Edible garnishes are one of the most beautiful and tasteful ways to incorporate food presentation into the ideas of your cafe business. From edible flowers to drinks with a skewer of treats involved, edible garnishes are a win with every customer.

Cafe Holiday Ideas

Cafe holiday ideas are a unique subset of cafe themes in some cases, and a completely unique type of unique cafe idea in others. The mix of ideas among these three cafe holiday ideas showcase the range of ways you can celebrate different holidays in your cafe, to wow your customers any day of the year.

3. Unconventional National Holiday Celebrations

There are so many national holidays we celebrate these days. They include things like National Cocktail Day , National Pinot Grigio Day , International Bagpipe Day , and National Wine Day . You can celebrate all these holidays and more for a unique theme throughout the year.

2. Holiday Promotions

Holiday promotions aren’t just about the unique national holidays. You can lean into promotions for the typical holidays throughout the year. Holidays spent out and about, like Valentine’s Day or Halloween, are particularly well suited to these promotions.

1. Special Birthday Treats

Special birthday treats are something you would benefit from having on hand for any birthdays that come into your cafe. From unique menu items to a special delivery method, giving customers a special way to celebrate birthdays will add something extra to your cafe.

Finding Unique Plans for Cafes: Showcase What Makes Your Cafe One-of-a-Kind

These nine unique cafe ideas will give you the place to start to find the niche for your cafe. You can use these ideas as they are, or use them as a jumping-off point. Either way, finding the unique parts of your cafe plan will make your business successful, and bring joy to your work. They can also help you grow into a cafe franchise business.

Cafe Franchise Business Plan: Growing Your Cafe Business

The process to open a cafe, write a cafe business plan, and prepare for all the daily operations to keep a cafe running smoothly is a long, ultimately satisfying project. Once you’ve opened your cafe and gotten it running with marketing strategies for cafes and unique cafe ideas, however, what’s next? What are your potential growth opportunities ?

If you’re looking for the next step, a cafe franchise business plan is a great option. These eight steps will help you get there.

8. Analyze Your Franchise Potential

The first step of getting your cafe ready for franchising is checking out your franchise potential. Do your finances make this a feasible choice? Are you ready and organized with the paperwork? Has your cafe brought in the right numbers to expand to new locations? These are the questions you need to answer. 

7. Create a Franchise Budget

Creating a franchise budget at the beginning of creating your cafe franchise business plan will give you a head start. Check out the costs for all your franchise license needs and marketing requirements to make sure you’re ready.

6. Prepare Your Franchise Disclosure Document (FDD)

Your franchise disclosure document or FDD is the selling sheet you present to potential franchise owners. It’s the place for an extensive explanation of how the franchisor and franchisee relationship will work, and what franchisees can expect. 

5. Prepare Your Franchise Operations Manual

Preparing your franchise operations manual goes hand-in-hand with preparing your franchise disclosure document. The operations manual is your place to explain how every part of the cafe works, so that franchisees have a full game plan. 

4. Review Your Trademarks and Intellectual Property

Part of franchising your cafe means giving other folks permission to use your brand and all related intellectual property. To prepare for that, make sure you have your logos and any specific intellectual property trademarked, to avoid issues down the road.

3. Establish a Franchise Company In the Eyes of the Law

While you’re already set up with a general business license, you need another one for a franchise business. BinWise isn’t a legal advisor and we can’t tell you exactly what you’ll need for your location. You will, however, need a new level of business licensing to be set as a franchise. Check out your local government to find what you need. 

2. Issue and Register Your FDD 

Once you have all your papers in order and you’re legally set up to be a franchise cafe, it’s time to issue and register your FDD. A lawyer will come in handy for getting your documents where they need to go. From there, follow your local guidelines to get your FDD where it needs to go.

1. Develop Your Franchise Sales Strategy 

Developing your franchise sales strategy is something you’ll likely think about while you work through every process on this list. How will you get the word out to potential franchisees? From networking in the right spaces to meeting people organically, selling your franchise pitch is the peak of the work you’ll do to prepare your cafe for franchising.

Franchising Your Cafe Business: Grow Your Cafe to Franchises and Beyond

A cafe franchise business plan can help you grow your cafe beyond the confines of your first location, or even your first few locations. Starting a cafe often starts with a small space and big dreams that blend together into a beautiful space. When it’s time to grow, you can take those dreams and plans and make them into something more with a franchise.  

"Key Takeaway: Learning how to franchise a cafe business will build on your cafe business knowledge and give you more to work with.

The Guide to Cafe Businesses: Realize Your Cafe Business Dreams

This BinWise guide to cafe businesses is here for you whenever you need a refresher on running a cafe business. From the first few days of planning and opening to the ongoing operations of your business, come on back any time to keep your cafe plans moving forward.

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How to Start a Cafe

Last Updated: March 17, 2024 Approved

This article was co-authored by Pete Canalichio and by wikiHow staff writer, Christopher M. Osborne, PhD . Pete Canalichio is a Brand Strategist, Licensing Expert, and Founder of BrandAlive. With nearly 30 years of experience at companies such as Coca-Cola and Newell Brands, he specializes in helping brands find the most authentic parts of their story to build a brand strategy. Pete holds an MBA from the University of North Carolina at Chapel Hill and a BS in Physics from the United States Naval Academy. In 2006, he won an MVP Award from Newell Brands for his contributions to their Global Licensing department. He’s also penned the award-winning book, Expand, Grow, Thrive. There are 11 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article has 20 testimonials from our readers, earning it our reader-approved status. This article has been viewed 444,387 times.

Opening a small, cozy, "cute" neighborhood cafe may be the most common dream of the prospective small business owner, but "cute" doesn't pay the bills. [1] X Research source [2] X Research source Cafes run on tight profit margins, require a significant initial investment, and demand long hours and many headaches of their owner-operators. Before abandoning all hope, however, do your homework regarding the steps required to start a cafe. With the right planning beforehand, your cafe will stand a fighting chance of success, and of becoming the small business of your dreams.

Planning Your Small Business

• Title Page and Table of Contents.
• Executive Summary, in which you summarize your vision for the company.
• General Company Description, in which you provide an overview of your company and the service it provides to its market.
• Products and Services, in which you describe, in detail, your unique product or service.
• Marketing Plan, in which you describe how you'll bring your product to its consumers.
• Operational Plan, in which you describe how the business will be operated on a day-to-day basis.
• Management and Organization, in which you describe the structure of your organization and the philosophy that governs it.
• Financial Plan, in which you illustrate your working model for finances and your need from investors.

• To begin with, you'll have to determine the nature of your business organization. The options include (but are not necessarily limited to) a sole proprietorship, partnership, and limited liability company (LLC). There are pros and cons for each option. [4] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source
• From there, you can begin investigating what business licenses and permits you will need to secure in order to open for business. Consider consulting your local chamber of commerce, the Small Business Administration , or similar group for assistance. [5] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source
• For tax purposes in the U.S., you'll also want to secure an Employer Identification Number (EIN) from the IRS.
• You may want to consider hiring a business attorney to help you navigate the legal processes.

• Take the time to scout out the best options for securing a small business loan from a financial institution. You may or may not find your best deal at a bank with which you already have a financial relationship. Organizations like the U.S. Small Business Administration can help walk you through the process of securing your best loan.
• Your funding options need not stop with a bank loan and your own savings. Try to entice investors or partners with your business plan, for instance. If you are willing to deal with the potential pitfalls of doing so, ask family and friends for personal loans. Your creative options can range from running a crowdfunding campaign to renting out the third floor of you home. Always keep on the lookout for prospective funding sources. [6] X Research source

• Consider the target clientele for your cafe based on your observations and research of the surrounding community, and your business goals. Is it nine-to-five office workers? College kids? A tech-savvy crowd, or people looking for quiet conversation? Let this information help guide your branding as well.
• Your ultimate goal is to create "one voice" that speaks across everything from your promotional materials to your lunch menu to your bathroom decor. [7] X Research source
• If you are having trouble developing a brand identity, or sense that your concept is becoming too complicated, seek out the services of professionals that focus in this area.

Preparing Your Cafe

• If it has been previously used as a cafe, this may work to your benefit because you won't need to spend time and money converting it into a cafe. Of course, consider why that previous cafe failed.
• Personally scout prospective locations. Count how many cars or people pass by over an hour during different times of day. People will seek out good food and drink, but a new cafe will have a better chance of building a loyal clientele if it is in a high-traffic area. [8] X Research source

• Try to match the brand of the business with a product that will be unique, unusual, but will also help to sell the business
• While important, don't focus solely on things like wall color and lighting fixtures. For a cafe in particular, make sure you create a kitchen area with good traffic flow that allows those preparing food to move their feet minimally.
• While you'll probably want your cafe to be a comfy spot where customers will want to come and linger, lay it out so that it is friendly to take-away customers as well. People who grab their food or drink to go cost you less to serve and make happy. [9] X Research source

• Look for savings where you can find them. Perhaps a mix-and-match, eclectic furniture decor can work with your cafe theme, allowing you to save some money by picking up used tables, chairs, and other pieces as you find them.
• For a cafe, though, don't skimp on the key equipment, such as an espresso machine. If coffee is going to be your focus, make sure you can produce a quality product. People who pay a premium for coffee tend to know the difference. [10] X Research source
• Research equipment rental vendors in your area. Consider multiple options to find your best deal, because you need to find savings wherever you can.

• For a cafe in particular, it is often better to keep the menu somewhat limited, especially at first. Focus on key items that complement each other, such as a selection of pastries that pair up with your coffee options, or a manageable array of soups and sandwiches. [11] X Research source
• Make sure you are an expert on the items on your menu, whatever its size. If you aren't already a coffee expert, research the subject extensively. Know where your produce comes from. Be able to discuss the sourcing of the meats in your sandwiches. Display a personal connection to your food, to separate you from the big chains. [12] X Research source

• Suppliers are the lifeblood of a cafe. Without product that's there when you need it (at a fair price), you have nothing. [13] X Research source
• Ask other restaurant and small business owners in the area which suppliers they use. Once you've selected your suppliers, work to establish and maintain a good working relationship with them. Don't be afraid to make a switch to get better prices or better service, though.

Opening for Business

• While spreading the word, try to remain consistent with your brand identity in your promotional materials. [14] X Research source
• Establishing a marketing budget for your grand opening (which some say should be 20% of your first year's marketing budget). [15] X Research source
• Using traditional media, like TV, radio, and newspapers.
• Using digital media like social networks, websites, and advertising technology such as Google Adwords.

• Familiarity with the cafe business is of course helpful, but pay at least as much attention to personality, temperament, and attitude. Conduct thorough interviews, and ask insightful questions (how they have dealt with adversity before and how they would deal with a particular example in the cafe, for instance). [16] X Research source
• Remember, on the rare instances when you are not in the cafe, your employees will be the face of your business.
• Once again, How to Open a Small Business provides useful information on hiring employees, including details on your initial responsibilities as an employer.

• You want your official grand opening to go as flawlessly as possible, so it may make sense to do a "soft opening" beforehand as a practice run. Invite a small group of guests, maybe even just friends and family, and run through the operation of your cafe. See what works and what doesn't before the official grand opening. [17] X Research source
• Make your grand opening "grand" with ample advertising, giveaways, and whatever else will make people notice and be curious enough to stop in. Also think about the best day and time to officially open. When will your target clientele be most likely to come in? A workday morning? During the lunch hour? Weekend brunch?

• For instance, offer a loyalty program. It's not just a way to retain customers, it's also a good tool to understand them and build strong relationships with them. The lure of a free coffee after all the spots on a card are punched out can be enough to bring people back until it becomes a habit. [18] X Research source
• Beyond simple punch-cards or coupons, there are a number of loyalty platforms using QR code.They make it very easy to offer a loyalty program and they are also cost-effective. Whatever method you use, do not see a loyalty program as giveaways. Rather, see it as a powerful marketing tool.

Expert Q&A

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Expert Interview

Thanks for reading our article! If you'd like to learn more about being an entrepreneur, check out our in-depth interview with Pete Canalichio .

• ↑ http://www.forbes.com/sites/quora/2012/12/20/whats-the-secret-to-a-successful-coffee-shop/
• ↑ http://www.slate.com/articles/life/a_fine_whine/2005/12/bitter_brew.html
• ↑ https://www.sba.gov/writing-business-plan
• ↑ https://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/choose-your-business-stru
• ↑ https://www.sba.gov/content/follow-these-steps-starting-business
• ↑ http://www.businessnewsdaily.com/1733-small-business-financing-options-.html
• ↑ http://www.entrepreneur.com/article/231966
• ↑ http://smallbusiness.foxbusiness.com/starting-a-business/2014/04/09/want-to-open-coffee-shop-read-this/
• ↑ http://www.ladyironchef.com/2014/12/things-to-know-before-opening-cafe/
• ↑ http://fitsmallbusiness.com/grand-opening-ideas/
• ↑ http://www.entrepreneur.com/article/241524

About This Article

To start a cafe, start by buying or renting a space that's in a high-traffic area, which will help you get more customers. Then, fill the space with all of the equipment and furniture you need, like tables, chairs, and coffee machines. Once you've set up your cafe, design a menu and find distributors and suppliers to buy your food and coffee from. Finally, hire employees and make sure you have all of the necessary certificates and registrations to be operating a business before you open. To learn how to write a business plan for your new cafe, keep reading! Did this summary help you? Yes No

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How to Start a Cafe

13 Steps to Starting Your Own Cafe

How big is the cafe industry, what are the key segments of the cafe industry, what external factors affect the cafe industry, who are the key competitors in the cafe industry, what are the key customer segments in the cafe market, what are the typical startup costs for a new cafe.

• Are Cafe Businesses Profitable?

What are the Keys to Launching a New Cafe Business?

How to start a cafe faqs, helpful videos, additional resources.

• Other Helpful Business Plan Articles & Templates

Opening a cafe can be a fun and rewarding experience, but it’s important to do your research first.

Complying to stringent safety requirements, ensuring your cafe is profitable, and staying up-to-date with local laws are just a few of the major challenges you’ll face. With so many things to think about, it can be hard to know where to start.

In this article, we’ll help you get your cafe up and running with everything you need to know.

Importantly, a critical step in starting a cafe is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

1. Decide what type of cafe you want to open.

There are many different types of cafes, so you need to decide what type of cafe you want to open. Your decision will affect everything from the type of products you offer to how much space you need. Many cafes have a unique selling point, so it’s important to research your competition thoroughly before getting started.

2. Write a cafe business plan.

Having a well-organized business plan is critical to the success of your cafe. This document will help you define your target market, outline how you intend to be competitive, and provide projections for key financials. It also includes an executive summary which is crucial if you are seeking funding. A cafe business plan is an essential part of any successful business, so make sure you have one before opening your doors. You can also download our successful coffee shop business plan pdf here. This is a business plan template you can use in PDF format.

3. Secure funding.

Opening a cafe is an expensive proposition. You need to consider everything from the cost of your location, equipment, and renovations to hiring skilled staff, marketing the business, and buying inventory. This means you’ll probably need some extra capital before your cafe can open its doors.

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4. Find the perfect location for your cafe.

The right location is key to the success of your cafe, so it’s important to look around carefully before you choose a space. While it’s great to be near local amenities and busy transport links, the rent and size of the property will affect your bottom line so take this into account when searching for a space.

5. Look into licenses and permits.

Before you start your cafe, you’ll need to apply for the appropriate licenses and permits. These can vary wildly depending on where you live so it’s important to research carefully before opening your cafe. Failure to comply with local regulations could result in fines or even closing your cafe, so you must stay on top of these every step of the way.

6. Plan your menu and interior design.

The key to success in the cafe industry is offering customers high-quality products at affordable prices, so it’s important to do your research when planning your menu. What kind of food will you sell? Will you offer quick foods like pastries and bread, or will you be serving food such as sandwiches, soups, etc.? How much food should you buy per day? How much will ingredients cost? These are all questions you need to answer before you start your cafe.

7. Order equipment for your cafe.

Be prepared to spend a lot of money on equipment for your cafe. You need to have proper tools to make quality food, so be sure that you are ready to shell out the cash before opening day. This will help ensure that you can serve up some tasty treats from day one.

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8. research and choose the proper pos system..

Having the right point of sale system is critical to running any retail or service business, so it’s important to choose a payment processing solution that works well for your cafe. You should research your options thoroughly before choosing a POS system as you want to be sure that this will help make day-to-day tasks easier.

9. Hire staff.

You are going to need some help when it comes time to run your cafe so be prepared on day one by hiring appropriate staff members who are hard-working, upbeat, professional, reliable, and courteous with patrons/customers. Doing this will assist you in being able to provide your patrons with great food and drinks.

10. Increase inventory levels.

You also need to increase your inventory levels for when it is time to open your cafe by doing things such as buying ingredients in bulk, which will reduce the cost per item and save yourself some money. Also consider finding suppliers who offer wholesale prices that you can purchase from and pass onto your customers to keep them coming back for more.

11. Market your cafe.

Marketing is key to success in the cafe industry so you need to be prepared before opening your doors. One effective way of marketing is through a Google My Business profile which allows your small business to show on Google Maps and local searches near your physical location. You can also use social media like Facebook and Twitter, which will help generate interest in your cafe and bring potential customers through the doors. Also, consider putting up flyers that let people know about your new cafe or having a grand opening that people can attend to check out your new business venture.

12. Open for business.

Make sure you are prepared on the day of your grand opening, which means having completed all your renovations, hiring staff members, and stocking up on equipment and inventory items. One way to ensure things go well is by creating an emergency plan that includes a backup for every piece of equipment and a list of potential problems that may arise.

13. Maintain your cafe.

Finally, maintaining your cafe means constantly seeking new ways to bring customers through the door by offering great service and delicious food at affordable prices. Also, consider hosting local events such as open mic nights or book signings that will entice customers to come in and try your wares.

With over 11,460 establishments, cafes and bakery cafe shops make up over one-third of the restaurant industry and their numbers are on the rise. Today, the cafe industry is about $11.7 billion and is forecasted to grow at a rate of 3.6% over the next 10 years.

• Take-Out Cafe : this type of cafe focuses mostly on take-out orders and quick service.
• Restaurant Cafe : this type of cafe offers patrons the chance to dine in and enjoy some drinks.
• Casual cafe : also known as a corporate, student or co-working cafe, this type of cafe caters to people who are on the go and need a quick meeting location.

Many external factors can affect the cafe industry. The most important ones are the economy, politics, and technology.

The economy is a major factor that can affect the cafe industry and market. When the economy is doing well, people have more money to spend on leisure activities like going to cafes. However, when the economy is doing poorly, people have less money to spend on leisure activities, which can hurt the cafe industry and market.

Politics is another major factor that can affect the cafe industry and market. For example, if there is a change in government or if there is a new law that affects the cafe industry, that can have a big impact on the industry and market.

Technology is also a major factor that can affect the cafe industry and market. With new technologies, cafes can get more business, which can expand the industry and market.

The key competitors in the cafe industry include:

Panera Bread : Panera Bread is a chain of restaurants that was founded in Missouri in 1978. Panera differentiates itself from other fast-casual restaurant chains such as Chipotle and Noodles by providing fresh gourmet bread baked on-site at their cafes daily. In addition, they commit to serving authentic artisan bread and pastries made with simple ingredients.

Starbucks : Starbucks was founded in 1971 in Seattle, Washington. They currently have over 20,000 stores worldwide. In addition to their coffee, they serve a variety of other drinks including tea and espresso. Starbucks has been able to spread its brand identity through social media marketing efforts when people take pictures with their Starbucks cups when going out with friends or traveling.

Caribou Coffee : Caribou Coffee is a Minneapolis-based company that was founded in 1992. It currently operates around 500 locations across 23 states and its mission is “to create a culture of warmth and belonging, one person, one cup and one neighborhood at a time.” Caribou Coffee has an extensive food menu that includes items such as crepes, sandwiches, wraps, bagels, and fruit parfaits.

There are various key customer segments in the cafe market. The most important of these include:

Young Adults : Young adults are a key customer segment in the cafe market because they typically go out to cafes with their friends after school or work. They usually spend more money on going out to cafes compared to older age groups.

Older Adults : Older adults are also a key customer segment in the cafe market because they also like going out to cafes with friends or family members.

Tourists : Tourists are another key customer segment in the cafe market because they often want a new experience when traveling and going out for a cup of coffee is something that many new cafes offer.

A lot of startup costs for a cafe can depend on the type and focus of the cafe.

The typical startup cost for a small cafe or coffee shop is between $25,000 – $150,000, which includes food, beverage, and cleaning equipment, furniture such as comfy chairs, sofas, and tables, and signage to attract the local community. The most basic and traditional cafes will require relatively low startup costs since they often only serve espresso, coffee, tea, and serve food such as pastries and bread.

Expenses may include:

• Furniture, Fixtures, and Equipment ($25,000)
• Signage ($3,000 – $10,000)
• Initial Inventory ($1,500 – $10,000 for coffee beans & equipment)
• Licenses and Permits ($1,500 – $2,000 per year)
• Insurance ($5,000 – $8,000 per year)
• Marketing ($1,000 – $2,500 for initial marketing efforts)
• Legal and Accounting Fees ($3,000 – $8,000 per year)
• Utilities ($1,000 – $4,000 per month)
• Maintenance Costs ($5,000 – $10,000 per year)
• Payroll Costs ($24,000 – $36,000 per year)

Other key costs associated with starting a cafe include:

• Build-out costs : You may need to hire a contractor to do some of the work in your space, such as electrical work or plumbing. The costs associated with hiring a contractor will depend on their rates but you should expect to spend at least a few thousand dollars before opening your doors.
• Rental space : This will vary depending on the location of your cafe, but typically ranges from $1,000 to $5,000 per month.

Is a Cafe Business Profitable?

Owning a cafe can be extremely profitable in the right conditions. You’ll need to have an ample supply of customers that are willing to pay premium prices, but in return you should receive higher margins than other retail business models. If your product is also unique, you can expect it to be even more successful.

To succeed in the cafe business, it is important to plan ahead. Here are some keys to launching a cafe:

1. Know your target audience.

Do your research and figure out who your ideal customer is. This will help you determine things like the type of food and drinks you serve, as well as the ambiance and atmosphere you create in your cafe.

2. Choose a good location.

When choosing a location for your cafe, consider things like foot traffic, competition, and lease rates. Ideally, you want a spot that is accessible and visible to your target market.

3. Create a strong branding and marketing strategy.

Your branding should reflect the personality of your cafe and the products and services you offer. Your branding should also clearly communicate your value proposition to your target market.

As for your marketing plan, you should budget at least $500 per month to promote your cafe. You may want to consider offline marketing techniques, such as flyer distribution and print advertisements, as well as online marketing strategies, such as social media, blogging, paid ads on Facebook and Instagram

4. Design a great cafe layout.

The layout of your cafe plays an important role in attracting your customer base and encouraging them to stay and order more food and drinks. Think about what is most important to you: Having a lot of space for people? Providing cozy corners where they can relax? Or designing something that stands out from other existing businesses? All of these are possible with some careful thought about design elements like furniture, lighting, artwork, music, etcetera.

5. Hire the right employees.

Good staff is crucial for success in any business, but especially in cafes where quality customer service is so important. Find people you trust who share your values and understand what your cafe is all about—everything from how you want your patrons treated to how often drinks should be refilled—and hire them!

6. Keep detailed records of everything related to your cafe’s operations and finances.

With good records of how well your business is performing at any given time, you can make data-driven decisions about things like pricing and menu engineering (making changes to the ingredients and quantities used to prepare items on your menu). Your records should include financials, sales numbers, and inventory levels.

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How much money do you need to open a cafe?

While it can vary depending on the location, size of your cafe, and the number of employees you hire, you should expect to invest anywhere from $50,000 to $250,000 just to get your cafe up and running. This includes things like equipment purchases, renovation costs if needed, construction expenses, etc.

If you don't have enough money to start your dream cafe, seek outside funding from sources like family and friends, a small business loan, credit cards, and other forms of financing.

What licenses are required for a cafe?

A variety of local licenses may be required when opening a cafe. These include health permits, fire safety certificates, a food service license, and food handlers' permits in certain locations. This is in addition to the business license necessary to open a business. If you plan on offering alcoholic beverages, you may also need a liquor license. Make sure you research the proper licenses required for your specific location.

What are some tips for creating regular customers?

Offering excellent customer service is one of the best ways to create loyal customers. Encourage your staff to follow up with every customer and treat them like friends they haven't yet met. You can also provide incentives for frequent visits, such as offering free refills or creating loyalty programs where customers earn rewards based on purchases.

Cafe Success

Business Owners’ Idea Cafe

National Coffee Association

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How to start a café or coffee shop

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In recent years, the UK had been steadily moving towards the kind of well-established café culture that our European cousins are famous for. These independent brewers have taken a hit due to the ongoing cost of living crisis, but the industry is readying for growth and recovery in 2024.

In April, the UK economy grew by 0.2% thanks to a boost from the nation’s humble hot coffee makers. And, according to an economic report by UKHospitality, the sector has the potential to increase its contribution to create half a million new jobs by 2027.

It’s also now easier than ever to set up a simple store or pop-up with limited equipment – taking payment on your phone using a mobile card reader , for example. This means that starting your own café or coffee shop is becoming an increasingly accessible (and affordable) venture.

Still, future cafe owners need to be aware that consumer behaviour, and buying habits, have changed. Although convenience and cost are still big drivers, brand identity and aesthetic now play a huge part in a customer’s purchase decision – making marketing a crucial consideration for wannabe baristas.

Below, we’ll outline exactly what you need to know to take your café or coffee shop business plan from bean, to cup.

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There’s a huge amount of planning that needs to go into launching a coffee shop. Thankfully, one area which needn’t cause undue stress is creating a website to promote your business. Thanks to modern templates like the one below , you can create one of your own in under an hour.

At Startups.co.uk, we test and rate website builder tools, and we’ve identified Wix as one of the best you can choose for creating a business site. Wix even has a selection of  custom website templates designed specifically for cafes – you simply drop your own menu, location, wording and preferred imagery into your chosen template. Better still, it’s completely free to try for yourself.

Read on to find out more…

How to write a café or coffee shop business plan, market research, financing your café or coffee shop business, concept, branding and design, waste disposal, equipment, utilities and supplies, taking payments, recruitment, regulations, useful links.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

When writing a business plan for a café or coffee shop specifically, you’ll need to consider:

• The overall industry, and how your business will fit into it – are you catering to the growing trend for premium products? Are you offering an independent alternative in an area with a lot of chain brands?
• Competitor analysis – following on from the above, the business plan needs to show a clear understanding of your intended area and customer base, as well as how your café will cater to a gap in the market
• Sales and marketing – for a coffee shop, this means outlining how you plan to price products, along with which items will be available on the menu. Similarly, if you have any ideas for promotions or other purchasing incentives (such as deals or loyalty schemes), include them in this section. See the dedicated marketing section for more information

This is in addition to the standard requirements of any business plan, such as account information and financial forecasts, as well as details of the management structure and operations plans. 

You can learn more about what to include, and get help to create your coffee shop business plan, using our business plan template page.

Sarah Heward, founder and co-owner at The Real Food Caf é tells Startups : “I had to think about the main players in the business and their backgrounds. I then conducted market research before focusing on design, including building a website and menus. My SWOT analysis came next, followed by timeline and financials.

“We made some basic errors – one was getting carried away with our enthusiasm and not doing our homework thoroughly enough, which led to some costly adjustments and mistakes.”

While choosing a convenient location is key, when it comes to running a café, coffee quality is still paramount. With the continued interest in premiumisation and sustainability in the industry, people are becoming increasingly aware of where their coffee is sourced and how it’s roasted. This connects with the growing conscious consumerism movement.

However, while some coffee brands are expanding rapidly, it appears that customers are nonetheless enticed by the intimacy of an independent coffee shop.

Starbucks struggled through the recession, and was forced to close a number of stores across the UK. Fast forward to 2019, however, and the company now has 995 UK stores – the second highest number of outlets for coffee shops in the country. 

While the estimated value of the UK coffee shop market stands at £10.1bn (according to the Allegra Project Café UK 2019 report), there are still opportunities within the sector. Indeed, approximately 95 million cups of coffee are drunk each day in the UK. 

What’s more, high street café culture is booming – according to data published by The British Coffee Association , 80% of people who visit coffee shops make a visit at least once a week, while 16% visit each day.

Cafe owner Heward  continues:  “I feel that the customers are now more into the quality of the coffee and they are conscious about reducing plastic waste. Artisan coffee producers are now more favoured over the bigger brands; people know the blends that they like and where to find it.”

Need help staying organised?

Starting a cafe or coffee shop takes time, and there are a number of steps to take.

We think project management software is a great way to keep everything on schedule. Whether you’re working alone or with other people, you can streamline processes, assign times and track progress to keep everything moving efficiently in the right direction.

Find out which project management tool we think is best .

Premises, equipment, staff… all of these things take money. Fortunately, there are a number of options available if you’re just starting a business and need to raise finance. While many people start businesses using their own savings, or money borrowed from family, there are also various other paths to pursue.

Despite the phenomenal success of Costa and other chains, coffee shops are not the kind of business to set up if you’re expecting a quick multi-million pound exit. Profit margins will only become significant if you open multiple outlets, and even then, your initial costs will be considerable. If you’re feeling particularly ambitious, it may be worth investigating if you can get a business loan to help you get started.

However, if you’re after a lifestyle business which provides you with a modest income, then setting up a coffee shop could be a great decision.

Startup loans – the Startup Loan company is a government-backed scheme, where you can borrow up to £25,000 with a fixed interest rate of 6% p.a.

Business loans – business loans are similar to startup loans, except they are not just for new businesses and don’t have the same caps.

You should also consider how you will keep track of your finances. It’s best practice to use a business bank account to separate your personal and business expenses and income, and you’ll have to if you’re starting a limited company. Nerdwallet compares leading UK business bank accounts if you need to find one.

Consider lighting, layout, and furniture when creating your café’s concept

Managing your money

Starting a business takes money and time, and accountancy software can help with both.

Whether you’re running your cafe alone as a sole trader, or with a staff, you’ll need to stay on top of your finances. If you’re not ready to employ an accountant to help out, then we suggest using an online accountancy tool.

Accountancy software is designed to simplify the complex processes related to money. From tracking your outgoings – whether that is salary or other necessary costs – to managing your taxes, you’ll find any finance process simpler with the right tools in place. Take a look at the accountancy software that we’ve rated best .

Or, take a quick look at our top recommended picks for accounting software that’s best suited to small and fledgling businesses below:

It’s not vital for you to have worked in a café before, but as with any business, industry experience goes a long way . If you don’t have any prior experience, it’s a good idea to spend at least a few weeks working in a similar establishment to the kind you want to open. 

If you choose a business to learn from that’s in a different geographic area, there won’t be any issues with competition, and you’ll find people are surprisingly receptive to offering advice if you’re honest about what you’re planning to do.

When doing her research , Sahar Hashemi , the co-founder of Coffee Republic, spent a day on the Circle Line, getting off at each of the 27 stops to investigate what type of coffee was on offer. It’s important to make sure you’ve spent some time considering the business from more than just a customer’s point of view.

This includes thinking about the type of company you want to create: do you have plans to become a big brand eventually? Or do you want your coffee shop to keep its small and local vibe for the foreseeable future?

And in turn, consider what your café can bring to the scene : whether that’s a focus on a certain type of bean or drink, a particular atmosphere you want to create, or an overarching ethos (e.g. charitable, eco-friendly).

As part of the design process , you’ll need to create a floor plan – you can either hire a professional to do this for you, or use floor planning software to do it yourself. Some of the most well-known software packages are RoomSketcher and CADPro.

Essentially, a floor plan will divide the space into customer-facing areas and dedicated work spaces. Ensure you meet any legal requirements, such as building and accessibility regulations. 

Also, think about the layout of the space, including decoration , along with how your staff will interact with customers. You should also consider what your logo will look like, and where it will be positioned. These are some of the main points to consider when creating your café concept, and contribute to how your coffee shop will be branded and designed.

One of the most well-known coffee brands around the world is Starbucks. For inspiration and advice that could benefit your own brand, think about the beverage giant’s marketing strategy, and the process it followed to create such a remarkable brand .

Ozkan Ozdemir is owner of Emy’s Kitchen, a Turkish cafe based in Islington. Ozdemir tells Startups  said :  “The idea to start Emy’s Kitchen was on our mind for many years. My mum, Emy, is a really good cook and we knew her food would be appreciated by other people too.”

Your café stands to benefit from having a website that provides the key details that your customers need to know. This includes contact information, opening hours, what’s on the menu, and where to find the café.

But a website goes beyond a business listing: think of it as an opportunity to further showcase your brand and reach a wider audience. As your coffee shop grows, you could write a blog that responds to industry developments, or highlights the social good your café is doing. Be sure to include any awards or nominations that your café may receive, too. 

An ‘About us’ section is a great way to connect with customers and create a sense of community. Plus, it’s an opportunity to reinforce your café’s USP. 

If you want to sell products online (such as coffee beans or bespoke cakes), then you’ll need to set up an online shop. Not sure which platform is best for your business? Check out our guide to the best ecommerce platforms for more information.

Also, if you want to host events (whether personal or private hire), then a website will allow you to easily and quickly manage registrations and bookings.

If you’re wondering how to create a business website , it can either be designed professionally, or you can use a website builder to make your own. 

Location and size are key when choosing a premises

The biggest decision you’ll have to make when thinking about how to start a coffee shop is regarding your premises. When looking at prospective sites, location and size are the two main factors you need to consider.

Mintel research found that 79% of Brits purchased an out-of-home hot drink in 2017, while this figure increased to 90% for younger millennials aged 18-27.

Ozkan Ozdemir, founder of Emy’s Kitchen, recalls: “Our biggest challenge was finding a good premises. As the business was a whole new concept we had started, we didn’t actually know which area in London would be best.”

So when choosing a café location, it may be worth looking for a busy urban area with a lot of foot traffic. However, these types of properties are expensive and the amount of square feet you will be able to get will be less than if you choose a more suburban or rural location.

Equally, you may have envisioned a spacious, airy coffee and tea shop with room for large sofas and coffee tables covered in newspapers or books – bear in mind that this may come at a price. 

And as the premiumisation trend continues, it may even be more profitable to forsake the perfect location in favour of investing in better beans. The important thing is to be flexible – focus on visiting a range of properties, big and small, in busy and quiet locations. 

Researching your market is essential: look into the locations that are popular among branded coffee shops, as these are the areas that have been identified for drawing in a good trade. If these shops are too busy during peak times, there could be room for an independent alternative. 

It is also important to know your competition. Consider what the most popular brands are offering, and how you could improve upon that.

While the size of the property you will buy or rent is intrinsically linked to its location, you should know roughly what sort of size and square footage you need. You should also be aware of how many covers (i.e. people seated) it can accommodate, as this will help you when going through property adverts. 

You need to be clear about your requirements: you’ll require a large seating area, a kitchen, a coworking area, a performance space, and/or a small retail section. A rough guide to café sizes is as follows:

Think about what you need from your coffee or tea shop, what is already provided, and what you would need to add yourself. When viewing properties, take the layout into careful consideration. Imagine your service area is fully staffed, and that you’re dealing with a bustling sitting space decked out with tables, chairs, and lots of customers in need of a caffeine injection.

Ozkan adds: “After we had started the business, we realised that the location wasn’t really that important as we have customers travelling from all around London for our breakfasts.”

As part of getting your café up and running, you’ll need to ensure you dispose of its commercial waste correctly. Whether you choose to hire a private company to collect it, or opt for the service provided by your local council, this is an essential part of operations. 

Some providers offer specific services for the hospitality sector, such as collecting glass, food waste, or coffee grounds. To help you choose a provider, read our guide to the best waste management companies . 

Of course, it’s ideal to reduce the amount of waste created in the first place as much as possible. Not only does this help to save money (less waste means fewer collections), but it’s good for the planet, too. Look for a provider that offers coffee cup recycling, and learn more about business recycling in general.

Before you negotiate the lease or purchase of a property, you must also check what commercial classification it currently falls under. If the property does not already have the correct classification for a coffee or tea shop, you will need to get planning permission from your local authority. You can use the Gov.uk licence finder to help you.

A café or coffee shop will most probably be classified as an A3 use class, although this will depend on the local authority. Planning permission for A3 use permits the sale of food and drink to be consumed on premises. For example, if you take on a property with a different class (e.g. a shop, which falls under category A1) and want to use the premises as a café, you’ll need to get the planning permission to change it to an A3 use class. 

To learn more, and to apply for a licence, visit the Gov.uk page on food business registration . 

Here, we outline the equipment, utilities and supplies you’ll need to start your own coffee shop. We’ll also look at the process of sourcing equipment, utilities, and suppliers.

Opening a café or coffee shop requires a lot of equipment. Some of it you’ll need straightaway, while other items you may be able to get further down the line, depending on your business requirements.

Essential kit includes:

• Coffee makers – espresso machines, as well as drip and cafétieres, plus equipment for any other specific drinks you offer e.g. pour over/filter
• Coffee grinders – ensure these are suitable for commercial use
• Cooking devices – e.g. ovens, toasters, sandwich presses
• Cooling and storage – e.g. refrigerators, freezers, shelving/cupboards
• Food containers – for syrup, ingredients, milk etc.
• Security devices – e.g. alarms , CCTV cameras , water detectors  
• Payment equipment – this includes a card reader, an iPad and/or a till, plus software. For more information on payment equipment, read our guide on small business POS systems

You can choose to buy some items outright from the beginning, or you can hire them on a rental or lease basis. For example, espresso machines are notoriously expensive, and it may be more sensible to rent one. By contrast, food containers are likely to be cheaper to purchase. 

Utilities 

You’ll need to get connected with business gas and electricity suppliers – be sure to compare energy suppliers to get the best packages for your small business.

Supplies/suppliers

You’ll need to think about the type of coffee you’ll choose for your café. Consider which (and how many) strengths will be on offer, and do your research about where it comes from and how it’s produced. When choosing suppliers, be sure to do taste tests (with coffee that’s been correctly prepared) so that you can know what your customers will experience. 

Also, check out a supplier’s record – have they won any awards or other industry recognition? Are they FairTrade and/or organic certified? Be sure to review the contract from a potential roaster as well – would you prefer an exclusive supplier, or to be able to use beans from multiple roasters?

Beyond this, the supplies you’ll require will depend on the type of café you run. For instance, the supplies used in a café that specialises in plant-based foods compared to a coffee shop that offers rum and other alcoholic beverages (like London-based Grind ) are going to be very different. 

You’ll also need to factor in non-edible supplies, like plates and cutlery, including both those used in-store and for takeaway. Plus, take into consideration the aprons or other items that your staff will need to wear or use.  

You can find suppliers in the following ways:

• Asking other small business owners for recommendations
• Attending trade shows and industry events (such as Caffé Culture , Coffee Shop Innovation Expo , and European Coffee, Tea & Soft Drinks Expo )

The Real Food Cafe founder, Sarah   Heward, advises:  “Speak to industry leaders with a lot of experience – they will challenge your thinking and not just tell you what you want to hear! Listen to them and prepare to be flexible

A card machine is an essential piece of equipment for your café. While cash is still popular, it’s good business sense to offer customers as many payment options as possible. Read our guide on how to take card payments to learn more.

As well as the device itself, you may need to enable online payment methods, such as a payment gateway . This will be the case if you’re offering online ordering or other ecommerce options.

Baristas, kitchen staff, and waiters are some of the roles to hire for in a café

Any business in the catering or hospitality industries involves hard, physical labour. Unless you can afford to employ staff from the outset, running a café will involve standing on your feet for the vast majority of the day.

Taking on staff is a highly legislated area, so you’ll need to understand and follow regulations on everything from health and safety to managing holiday requests . How much of the process you do yourself, and how much you outsource to a HR company , will depend on you, your vision for your business, and your budget.

Some top tips to consider when recruiting in the hospitality sector include:

• Culture – what type of atmosphere do you want to create, for both your staff and customers?
• Attitude – café staff are the face of your business, so it’s crucial to hire people who reflect its ethos and brand
• Experience – want perfect latte art with every pour? In need of standout dishes? If so, seek out experienced candidates for more skilled roles (such as baristas and chefs) so that your café can offer top-quality produce from the outset (and while other team members receive training)

Product images and other visual, shareable content are great for social media marketing

Emy’s Kitchen owner, Ozkan Ozdemir points out: “The food industry is very hard and you only have 20-30 mins to make customers happy, so you need a good team to achieve that goal.”

There are a number of ways to promote your café, including:

Social media

Loyalty programmes

Traditional marketing

When it comes to marketing a café or coffee shop, be sure to use social media. Creating content tailored to your target audience and the platforms they use is an essential part of social media marketing . 

Whether you film your baristas making the perfect cup of coffee, or share photos that your customers have taken, this type of business is highly visual – making it ideal for social media platforms. But it’s more than that just advertising – social media also offers an opportunity to engage and interact with your customers.

Whether you opt for a card that’s stamped per purchase, or a digital app that allows customers to collect points, loyalty programmes are a key part of marketing a café or coffee shop. 

Not only is this an incentive for people to return to your coffee shop, but if you use a digital system you can collect valuable information as well, such as common orders or popular visiting times.

While it’s easy to focus solely on digital marketing, remember that cafés and coffee shops are often central places in a local community. Be sure to connect with people face-to-face as well.

Options include printing and handing out flyers in your local area, as well as printing banners and posters. Plus, reach out to nearby offices and other companies to let them know you’re new in town.

Currently, there is no law that states you must undertake formal training to open a café or coffee shop. 

However, you must ensure that you and anyone else working with food at your business has the appropriate level of training and/or supervision to do their job properly. The legal responsibility lies with the business owner, so make sure you have all the information you need. 

You’ll need to be clued up on the basic principles of food preparation. Make sure you check out our restaurant and sandwich shop guides, as many of the principles for those kinds of businesses will also apply here.

The Food Standards Agency (FSA) is the body appointed by the government to be responsible for all food safety standards. The FSA can provide you with advice on all food hygiene matters, and offers an information pack called ‘Safer food, better business’ , which will help you to comply with the law and make your premises safe for the public. The publication covers key aspects of serving food, including contamination, cleaning, chilling, cooking, management, and keeping a food diary. 

Your business must also be registered with the local authorities. You can and likely will face inspections in the future, and a failed inspection is bad for your café in a number of ways: either legally (you could be closed down), in terms of business (bad publicity and referrals) or morally (as people could be taken ill or even die from contaminated food). 

In order to avoid such pitfalls, you should follow the Hazard Analysis Critical Control Point (HACCP) . This is an internationally recognised and recommended system of food safety management that focuses on identifying the ‘critical points’ in a process where food safety hazards could arise, and puts steps in place to prevent things from going wrong.

Take a look at the rules and regulations section of our catering guide , as the same restrictions on food preparation will apply. 

Your café or coffee shop will need to be appropriately insured – this is to protect you, as well as your customers. 

There are a range of providers out there who can offer cover that is tailored to your unique business requirements. However, you’ll usually need the following types of insurance:

• Building contents – this protects your café’s stock 
• Business interruption – with this type of cover, you’re insured for profit losses if you’re made to stop trading temporarily
• Employers’ liability – cover for the health and safety of your employees

Sarah Heward, founder and co-owner at The Real Food Café has this positive final message for Startups readers  comments :  “Starting your own business and seeing it go from strength to strength is an incredible sense of achievement. Hopefully, the long-term financial benefits make it all worthwhile.”

Here’s a recap of some of the most useful links from throughout the article:

• Gov.uk Licence Finder
• Gov.uk Food Business Registration
• Safer food, better business
• HACCP guidance

In addition, check out the links below to learn more about relevant industry organisations and events:

• British Coffee Association
• Specialty Coffee Association (UK Chapter)
• Caffe Culture Show
• Coffee Shop Expo
• European Coffee, Tea & Soft Drinks Expo

Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews.

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How to Open a Café: A Step-by-Step Guide

So, you’ve decided to dive in and open your very own café. Opening a successful coffee shop can be a rewarding experience. Because of you, hundreds of friends will have great conversations. Because of you, mornings will be brighter and afternoons will seem less stressful. You’ll have more pull on society that you realise. All you have to do is get your coffee shop right... that’s easier said than done! This step-by-step guide to opening a café will help get you on the right track.

Checklist for Opening a Cafe

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1. research the coffee business.

Opening a cafe takes a big investment in both time and money. It's essential that you spend time now understanding what it takes to run a successful cafe. This means reaching out to coffee business owners and learning from their experience; finding out what works, and what doesn’t.

And here’s the fun part — it also means visiting lots of cafés to get an insight into what you want your business to be like. Consider what you will take from other businesses and what will make you different.

Learn about your customer base. Who will they be? What are their needs? What time of the day will be busiest? Knowing your customers well will assist with planning, creating a menu, price points — everything really!

2. Define your vision

No doubt you have big plans and already have a mental image of your café up and running.

Write down what you want to achieve with your café and what kind of atmosphere you want to create. Start collecting photos, menus and design ideas to provide inspiration for how your café will look, what kind of food you’ll serve, and how you’ll make your customers feel when they walk in the door.

Having your vision clearly defined will help you be consistent when it comes to choosing a name, deciding on the decor, planning the food, choosing the coffee, picking the cups and defining the way you’ll interact with customers.

Remember: you can't please everybody - the secret to success is to really understand who it is you're designing this business for.

3. Create a Business Plan

It's tempting to skip the business plan. "It's too much work", "Who's going to read it" are the type of comments we hear all the time.

In reality, the real benefit in putting together a business plan is less about the final document, and more about the process. The process of writing a business plan helps you really understand your local market and take a close look at the numbers you need to make the business successful.

A business plan will guide you through each stage of developing and managing your coffee shop, and will serve as a road map for how to structure, run, and grow your new business. Your business plan should include:

• A summary: What this business stands for, and how it's going to stand out.
• A local market analysis: Who are your regular customers? Who are your competitors?
• Your team: What are you going to do yourself, what team are you hiring to do the rest.
• A marketing plan: What is your point of difference? How are you going to communicate this?
• How much cash you need to get started and where it's coming from.
• Financial projections: Projected Profit & Loss, Cash Flow
• A location and lease strategy.

There’s a lot to think about, but taking time to plan for each of these aspects of your business will help set you up for success.

4. Choose a Location

Location is critical to the overall success of any cafe business. Before you make a decision, spend some time in the areas you’re considering. Pay close attention to details like:

• How many people are moving about on foot?
• How much parking is available.
• Is the location visible enough?
• Is there enough foot traffic around to sustain your café
• What does the location mean in terms of demographics?
• What kind of things do the local community like to do?

Remember you’re going to be spending a lot of time here, so you want to make sure you really understand what makes the locals tick. It's also vital to understand the details of the retail lease, the terms of this document will affect the profitability and the resale value of your business down the track. It's wise to talk to a lawyer who specialises in retail leases before you sign anything.

5. Find the best suppliers

Finding good, reliable suppliers is a key component of any business success.

Depending on the type of café you're opening, the major suppliers are usually coffee, milk, bread, fresh produce and groceries. You’ll also need cups (paper and porcelain), napkins, coffee stirrers, teapots, syrups… the list goes on.

Start by making a list of all the supplies you need, being as detailed as you can. The list may seem overwhelming, but getting down to the nitty gritty (from pastries to napkin holders) will ensure you’re prepared for anything. From there, you can begin researching suppliers until you find ones you love and who fit with your business philosophy.

6. Source commercial equipment

When it comes to sourcing equipment, you have a few options. You can buy equipment outright using your own finance (or cash) or you can lease equipment through a provider like Silverchef or FlexiCommercial.

In the case of coffee equipment, many cafes are also able to get this on loan from their coffee roaster. It works a bit like a mobile phone plan. You’ll also need to invest in a commercial blender, refrigerator, dishwasher, cash register… and so on.

Again, make a list and be as detailed as you can (download our checklist for a detailed list). You may not need all these items right away, so prioritise and keep in mind what’s coming.

7. Design your café and give it character

The design of your café is crucial for drawing customers in and enticing them to return. The concept will largely depend on your target audience. Will it be modern? Retro? Sophisticated? Family-friendly? Health-focused?

Understand the tastes of your customer base and design your café with them in mind. Again, don’t try to please everyone; choosing one theme and sticking to it will make for a much stronger identity. Consider storefront design, signage, furniture and lighting. Evaluate the efficiency of the layout from both an employee and a customer perspective:

• Can the barista work methodically in the space allotted?
• Can your staff get quickly across the room?
• Will customers understand the ordering process upon entering your coffee shop?

I know it's expensive, but hiring a professional interior designer can really pull all this together. A great atmosphere and efficient workflow are critical, and an experienced designer can make all the difference.

8. Create a menu to complement your café

Your menu should express your vision and the theme of your café. Everything needs to be considered, from food options, to design, colour and fonts, to engaging descriptions, images and pricing.

Think about a signature dish and how that might shape the style of your menu. Keep it simple — one of the most common mistakes cafe owners make is trying to please everyone. This can leave you with dozens of items that are hardly ever ordered.

Focus on no more than 10-12 killer options that will knock everyone’s socks off, making sure to include gluten-free, vegan and vegetarian options.

Your menu also needs to be profitable. Calculate the ingredient costs and margin of each item. As a rough rule of thumb to get you started, the ingredient costs should be no more than 35% of the retail price (excluding tax).

9. Hire the right people

Ask any experienced cafe owner what the #1 issue in their business is - finding and keeping great staff.

Most people start by looking for experienced staff, which is understandable. But in my experience, there is one thing that trumps experience: attitude. Skills can be learned, attitude...not so much. Yes, you will need some some experience, particularly in the early stages. However, developing a great team culture only happens but hiring the right people, so make sure you out the work in to find people who are the best fit for your business.

A good induction and training system can help - we can help with barista skills & workflow training. When it comes time to hire, you will also need to be aware of the relevant award system, tax and other regulatory requirements.

10. Market your café

The weeks and months leading up to the opening of your cafe are a chance to start building your network. Social media will be your word of mouth, so use it to build up your reputation.

It's no secret that cafes love Instagram. It has become the platform to get the word out, but it doesn't stop there. Make sure you claim your Google Maps listing so that you show up in local search, and consider claiming your page on other review sites like Tripadvisor so that you can respond quickly to feedback.

Be sure to make online promotions personal, interactive and engaging. Use images and videos to encourage shares and engagement. When your customers come in, ask them to follow your page to receive updates, freebies and specials.

11. Opening your café

Opening your café is an incredible achievement and will mark the beginning of an exciting new adventure.

After months (or years) of planning, preparation, and hiring the best staff possible, your ‘grand opening' is a chance to show off your hard work. It’s also a great opportunity to start building long-lasting relationships with your customers.

To hold a successful grand opening, start planning early. Make sure you have enough staff for the event and check for any other local events that might clash with yours. Consider having a ‘soft opening’ — allowing you to learn the basics before you open fully to the public. This is a great way to test staff, workflow, and the atmosphere of your coffee shop, and it also gives you the opportunity to iron out kinks before the big day.

With your shop open, you can enjoy the opportunity to be your own boss, build your profits and make new relationships throughout the community. And most importantly, you’ll enjoy sharing your passion for one of life’s greatest pleasures... coffee!

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Setting up a Café Business

All you need to know about starting and running your business.

In this article

What is a Café Business?

There are more than 25,000 cafés and coffee shops in the UK, with the industry worth an estimated £4.4 billion. A café business is often a staple of the local community, with many people visiting cafés to eat, drink, socialise and work.

95 million cups of coffee and 100 million cups of tea are consumed in the UK every day. These statistics, combined with the UK’s love of eating out, explain why the café industry remains strong, despite the decline of the high street.

The term café can have many different meanings but typically refers to a small eating and drinking establishment which serves a variety of drinks, snacks and light meals.

There are many different foods and beverages which can be served in cafés, but the most popular are:

• A variety of teas, e.g. English Breakfast, green, mint and fruit tea.
• A variety of coffees, e.g. cappuccinos, lattes, Americanos, flat whites and iced coffees.
• Other hot beverages, e.g. hot chocolate.
• Cold beverages, e.g. milkshakes, juices and soft drinks.
• A variety of cakes, pastries, cookies, desserts and other baked goods.
• Hot and cold sandwiches.
• Afternoon tea.
• Breakfast foods, e.g. bagels, Full English breakfast, pancakes, waffles and avocado toast.

Some cafés choose to offer a varied menu with a wide range of food and beverage options. Others choose to focus their menu on a specific type of food or beverage.

If you are thinking about starting up a café business, you will first need to decide what type of café you want to set up.

There are many different types of cafés, for example:

A café bakery

As well as hot and cold beverages, café bakeries specialise in baked goods, such as sandwiches, cakes, pies, muffins, cookies, doughnuts and pastries. You may offer a sit-down and takeaway service to target a variety of customers.

A themed café

As the name suggests, themed cafés focus on a particular theme and create their brand around the theme. They usually design and decorate their café to fit their theme and may also serve themed food and drinks. Examples of themed cafés include a cat café, an Alice in Wonderland café and a jungle café.

A grab-and-go café

This type of café isn’t designed for people to spend long periods of time, instead, it targets takeaway customers. Although you may have a seating area, this will be smaller than a regular café and the area will be less cosy and comfortable so as not to encourage customers to stay for a long time. You will likely utilise takeaway cups and paper bags and boxes so customers can take their food and beverages with them.

A hangout café

This is the opposite of a grab-and-go café and instead encourages customers to socialise, work and hang out. You will likely offer free Wi-Fi, comfortable seating areas and inviting décor.

A speciality coffee shop café

A speciality café usually focuses on speciality coffee – premium coffee that has been grown, cared for and sold with specific care and attention. The coffee you serve must score above 80 points on a 100-point scale. The coffee will likely be organic, and your business will have a barista who operates as a coffee aficionado. Although coffee will be your main priority, you may also serve other items.

A niche café

This type of café will focus on a specific niche or speciality to attract a specific type of customer. For example, you could open a vegan café, a gluten-free café or a French Patisserie café.

The type of café you choose to open will have a significant impact on the types of food and beverages you serve, your décor and aesthetic, your typical customer base and your price points. When deciding the type of café business to set up, consider your location, your local competition, the demand and your experience and abilities. For example, if you are located on the seafront, you may opt to set up a beach-themed café with a variety of food options and lots of areas for your customers to sit and relax, whereas if you are located in a business district, a grab-and-go café that targets busy professionals on their lunch break or after work may be more beneficial.

There are many different responsibilities associated with running a café. These responsibilities can vary depending on the type of café you set up, the size of your café and the number of employees you hire, the types of food and beverages you serve and how involved you are in the day-to-day running of your café.

The typical responsibilities associated with running a café include:

• Sourcing and ordering stock and ingredients.
• Purchasing, cleaning and maintaining equipment and machinery.
• Preparing, cooking and baking any food and preparing beverages.
• Ensuring the cleanliness of your café, including the kitchen area and the café.
• Complying with all legal guidelines and health and safety requirements.
• Pricing your products.
• Packaging and displaying any pre-prepared products.
• Speaking to customers, taking orders and handling payments and receipts.
• Serving or packaging food and drinks.
• Handling customer collections and deliveries (if applicable).
• Marketing and advertising.
• Completing business and administrative tasks.

You do not need any formal qualifications to open a café. However, you will need the necessary skills required to bake, cook and prepare beverages, a high level of knowledge in the café industry and an understanding of how to run a café. If you have strong business skills, a solid business plan and are a sociable person who enjoys working in a face-to-face capacity, then starting up a café business can be extremely rewarding.

Types of Customers

Cafés are frequented by people of all ages and demographics. However, determining the types of customers your café is likely to appeal to can help you to plan your advertising and marketing strategies, focus your business and maximise your profits.

Multiple factors can determine your typical customer base, for example:

The type of café you run

This will have a significant impact on the type of customers you are likely to attract. For example, a hangout café may be more likely to attract university students and groups of friends whereas a themed café may be more likely to appeal to tourists and people celebrating a special event or looking for a unique experience.

Your location

This will be one of the biggest determiners of your typical customer base. Many people visit a café that is conveniently located near their home, place of work or study, an area they are visiting (for example, a beach, a lake or a popular walking destination) or a popular tourist destination. For example, if you are located close to a train station, you are more likely to attract commuters, whereas if you are located close to a park, you may be more likely to attract families.

Cafés located in busy areas with high footfall (such as a city centre) are more likely to attract passers-by so should focus on how to appeal to these customers, whereas cafés located in a village are more likely to attract local residents. Consider people who typically visit the area close to your café when identifying your typical customer base.

The types of food and beverages you sell

This is another important factor that will influence your typical customer base. Some cafés offer a varied menu with a large number of food and meal options. Others offer a smaller menu that mainly focuses on drinks and baked goods. Alternatively, you could offer a specialised menu, such as a specialist coffee or vegan food. The types of food and beverages you sell will significantly impact your customer base.

Your business brand and aesthetic

Your branding and aesthetic are key to attracting customers. Your business name, logo, and the design of your café are all key to the types of clients your business will appeal to. Consider the outside of your café, your café window and your décor, furnishings and accessories.

Whether your café is dog friendly

This is something that many café owners don’t consider but can be a major factor in your typical customer base. This is especially true if you are located in the countryside or in an area with local walks or popular outside areas (such as a beach, lake or park). Dog owners often search online for a café that allows their dogs onto the premises, and cafés that go the extra mile to welcome dogs, for example, by providing water bowls, dog treats or even a doggy menu, are likely to be even more popular. The UK is a country of dog lovers (with more than 12 million pet dogs), and the rise of the ‘puppuccino’ shows how popular it is becoming to bring your dog along to a café with you.

Your pricing strategy

Your price points will be a key determiner of your customer base. Customers can typically be separated into three pricing categories:

• Budget: This type of customer is looking for the lowest-priced food and drink and is usually happier with a more basic menu and a simpler café.
• Mid-range: Mid-range customers are looking for a combination of quality and affordability. Although they don’t want to pay premium prices, they don’t look for the cheapest option and instead look for quality service at a reasonable price.
• Luxury: This type of customer wants the highest quality, best-tasting food and drink with a luxury experience and is willing to pay higher prices. They are more likely to look at factors such as the aesthetic and design of your café, your furnishings and your menu, rather than your prices.

Equipment You Will Need

The type of equipment you require will depend on the type of café business you set up, the size of your business and the types of food and drink you offer. Choosing the right equipment is essential, as without it you will not be able to operate your business.

Although your equipment requirements can vary, below is a list of equipment typically required by a café business.

Kitchen Equipment

An industrial fridge and freezer

A fridge and freezer are essential in your café. You will need to store any perishables and fresh stock or ingredients in your fridge or freezer. Consider how much you will need to store when considering what size you will need. Ensure both the fridge and freezer are set to the correct temperature.

An industrial oven

The type of oven you purchase will depend on the types of food you plan to make. Most bakery cafés opt for a convection oven, which uses internal fans to circulate the air to create even browning and uniform baking. However, other types of cafés opt for a different type of oven. For example, a conveyor oven.

A dishwasher

A dishwasher is a necessity, not only because it will help you to save time in the kitchen and reduce your kitchen duties, but also because it will demonstrate the hygiene standards and cleanliness of your café. Opt for an industrial sized dishwasher to allow you to clean a larger amount at one time.

Depending on what you cook in your kitchen, there are several different pots and pans and other cookware you may require, including:

• Frying pans.
• Grill pans.
• Sauté pans.
• Baking trays.
• Roasting pans.

Bakeware is the type of equipment you will use to bake your products. Investing in quality bakeware is recommended as it will likely be heavily used and can be susceptible to dents and warping.

Some pieces of bakeware you may need to purchase include:

• Bread pans.
• Muffin tins.

Shelving creates a safe and organised area for storing non-perishable ingredients (such as bread, seasoning and coffee beans), as well as equipment, accessories and utensils. Shelves also allow you to maximise the space in your kitchen.

Sheet pan racks

If you are baking large quantities of food at one time, a sheet pan rack allows you to cool multiple products at the same time. You could choose a tiered rack, allowing you to conserve space, and a rack that is on wheels, enabling you to transport your products around your kitchen more easily.

Kitchen accessories

Some kitchen accessories you may require include:

• Chopping boards.
• Kitchen knives.
• Mixing bowls.
• Food processors, mixers and blenders.
• Temperature gauges.
• A strainer and colander.
• Weighing scales, measuring cups and a measuring jug.
• Oven gloves.

Cooking utensils

Some cooking utensils you could require are:

• Stirring spoons.
• Peelers and graters.

Dough proofer

If you make baked goods in your café, including sandwiches, pizzas, pastries and cookies, dough will be an important ingredient and you will likely need a dough proofer. A dough proofer can help to simplify the dough-rising process, helping you to ensure your products are uniform in shape and size, and that the production process is streamlined.

Storage containers

Storage containers can be used for safely storing any opened stock, to prevent spoilage or contamination. You can also use the containers to store any cooked or pre-prepared food, such as salads, to keep them fresh for longer. Ensure your storage containers are strong and airtight.

Date labels

These are necessary to label when ingredients were opened and when certain items were cooked. It ensures that all stock, ingredients and food products are completely safe to use and that your kitchen is operating in line with food safety and hygiene guidelines.

Stainless steel worktops or worktables

You will use the worktops for all your food preparation tasks. Your worktables should be stainless steel as this material is non-porous, meaning it is resistant to most bacteria and germs. It is also easier to clean and will help you to maintain high standards of hygiene.

Equipment sink

This sink should be used specifically for cleaning, disinfecting or storing food equipment and utensils and should not be used for handwashing. You must ensure the sink has both hot and cold running water. Depending on how big your café is, you may require two sinks for equipment.

Handwashing sinks

You will need separate handwashing facilities and cannot use the same sink for handwashing and food preparation or equipment. This sink must be exclusively used for handwashing.

Kitchen Display System (KDS)

This is a digital screen that is used instead of handwritten or printed orders. A KDS manages your orders and helps you to prioritise, edit and track your orders. It creates a more streamlined ordering system that can help your café to be more organised and efficient.

Personal Protective Equipment (PPE)

PPE is a necessary purchase for all food businesses, as it helps to protect your food from contamination. PPE can also protect you and your staff from harm (e.g. when using sharp instruments or hot equipment). Some PPE you may require includes hairnets, gloves, oven mitts, anti-slip footwear and aprons.

Rubbish bins and a waste disposal system

You will need rubbish bins in all food preparation areas. You will also need different bins for different items to ensure you are disposing of rubbish correctly and following recycling guidelines. Colour-coded bins are the easiest way to ensure your waste disposal system is operating correctly.

Cleaning equipment

Keeping all areas of your café clean is imperative. Food preparation, cooking and storage areas are particular areas that should be cleaned regularly throughout the day, to avoid cross-contamination and the breeding of bacteria. You will likely need different cleaning materials for different parts of your café. You may need to invest in cloths, sponges, antibacterial surface cleaners, bleach, sanitiser, dishwashing soap and a sweeping brush and mop.

Café Equipment

Coffee machines

There are many different types of coffee brewers and coffee machines. Depending on the type of café business you set up, you may opt for one type of coffee machine or purchase multiple.

The most popular types of coffee-making facilities are:

• An espresso machine: An espresso is a typical Italian coffee, which has grown extremely popular. This machine uses high pressure to force pressurised water through finely-ground coffee beans in a few short seconds. The end product is a small coffee (‘shot’ size) that is rich and creamy in flavour and has a thicker consistency. It can be drunk alone or used as a basis for other types of coffee, such as cappuccinos, lattes and macchiatos.
• A drip coffee machine: This is a system through which water automatically drips into a heating tube and is then poured onto ground coffee. It then goes through a filter before being poured into a cup. This type of machine usually makes a larger amount of coffee, allowing you to serve multiple customers at one time. Drip coffee has a stronger coffee taste.
• Coffee bean grinders: Some coffee machines come with an in-built bean grinder, whereas others require a separate piece of equipment. A coffee bean grinder is used to grind whole coffee beans into a small, uniform size ready for brewing.
• A coffee machine: A coffee machine can usually make a variety of different coffees, such as cappuccinos, lattes and macchiatos. Many coffee machines can also make other hot beverages, such as hot chocolate. They often include a milk frother.

Coffee accessories

With the rise in popularity of specialist coffees and flavoured coffees, there are several different types of equipment and accessories you may require, including:

• Coffee cups.
• Flavoured syrups and syrup dispensers.
• Coffee beans.
• A milk frother.
• Coffee stencils.
• Coffee spices and flavours (e.g. powdered chocolate, cinnamon and nutmeg).
• Coffee spoons and stirrers.

Tea-making and serving equipment

Tea is a quintessentially British drink and there are multiple pieces of equipment and accessories your café could need, including:

• Cups and saucers.
• Tea strainers.
• Tea baskets (to hold the tea while it is steeping).
• Sugar dispensers.
• A tea bag dispenser and display unit.

Blenders and juicers

If you are making fresh milkshakes or juices in your café, you will require a blender and/or juicer. A blender can also be used to make soups and smoothies.

Display cases

If you sell any pre-packed food, such as sandwiches, cookies and muffins, or pre-packed drinks such as cans or bottles of juice or fizzy drinks, you will need glass-fronted display cases to store your products. You may opt for a refrigerated display case for perishables and a room-temperature display case.

Shelves may be required to store a variety of non-perishable food, utensils and equipment. You may have shelving behind the counter and on your shop floor area. Shelves can also be used to decorate your café and you can add decorative items, plants and flowers to your shelves.

Tables and seating areas

The majority of cafés offer a seating area for their customers. Choose tables and seats that fit the design and aesthetic of your business and portray the type of café you are choosing to set up. You could opt for traditional wooden or plastic tables and chairs, sofas, armchairs, booths, long banquet-style tables, high-top tables and stools and outdoor seating. Some cafés even offer alternative seating options, such as beanbags, hammocks and sofa cushions. You may also offer outdoor seating options and high chairs for babies and toddlers.

This is where your customers will place their orders. It will likely include an area for you to stand behind and may feature display cases and shelving, your till and a menu that clearly displays your products, prices and any allergen information. You may opt for a long counter to give your customers a place to queue or a smaller counter.

Cash register and Point of Sales (POS) system

This can help you to record sales and manage the financial aspects of your café. Your payment system should allow customers to pay cash, debit card, or credit card for their purchases.

Cups, utensils and cutlery

Depending on the type of café business, you may only need to buy takeaway cups, packaging and wooden stirrers for your customers. If your café business offers a sit-down area, you may also need to invest in reusable or porcelain plates, bowls, mugs, cups and sauces and glasses and cutlery. If you are happy to spend a little extra, you could choose cups and cutlery that matches your brand or are branded with your business name.

Other equipment

Some of the other equipment you may require for your café business includes:

• Napkins and linens.
• Table cloths.
• Paper straws.
• Decorative items and accessories (to fit the aesthetic of your business).
• A sanitising station.
• Bins (recycling and non-recycling).
• Serving trays.
• Signs (inside and outside your café).
• Menus and menu holders.

Food labels

All food businesses in the UK must ensure their food is properly labelled and includes information about any of the 14 allergens. Invest in labels or a labelling system that securely attaches to your products and is easily readable.

A CCTV system

A CCTV system is necessary for protecting your café from theft and burglaries. It can also help to protect you in the event of a threatening customer or an allegation against your business. A CCTV system can cost between £300 and £5,000 depending on the specification of the equipment, how many cameras you require, and the installation costs.

A fully stocked first aid kit

A first aid kit is a necessity, as you will be working with potentially dangerous equipment and products. A first aid kit can also be used if any customers sustain an injury in your café. Ensure your first aid kit is restocked regularly and is easily accessible.

If your café features a seating area, your customers will expect you to provide Wi-Fi. Because multiple devices will be connecting at one time, you will need a Wi-Fi system that is reliable, fast and can handle a higher capacity. Depending on the size of your café, you may require multiple routers or Wi-Fi boosters.

A music system

Cafés generally play music as background noise. You may require a music player and multiple speakers, depending on the size of your café.

Typical Costs

When you are setting up your business, an important consideration you will need to make is the approximate costs associated with starting up and running this type of business. Calculating your typical costs allows you to estimate your initial investment requirements, any monthly and annual costs, your pricing strategy, your profit goals and your acceptable profit margins.

There are multiple costs associated with setting up and running a café business. Some of these costs will be one-off initial costs that you will need to pay when you are setting up your business. Other costs will be ongoing costs you will need to pay regularly – usually weekly, monthly, quarterly or annually.

Although typical costs can vary, depending on the type of café you set up and the size of your business, the typical costs you can expect to be responsible for include:

Your café premises

Your business location will likely be your biggest expenditure. You will need to rent your premises on a monthly or annual basis. Rental prices can vary significantly, depending on the location and the size of the premises. City centre locations and newly built premises usually have the highest rental costs. Rental costs are often calculated per square metre. They can range significantly, from £500 to £15,000 per square metre annually. Your rental cost may be higher if you are renting an already established, refurbished or equipped café.

Refurbishment and installation costs

Unless your premises previously operated as a café, you will likely need to refurbish or convert your venue to install the equipment and furniture you need for your business and make the area fit for purpose. You will also want to refurbish and decorate your premises to fit the aesthetic of your business and make it attractive to customers. Renovation costs can vary, from £500 to £20,000 depending on the level and scale of work required. As part of your renovation costs, consider how you can make your café easy to clean and ensure it is safe and in line with health and safety regulations.

Your equipment is an important purchase, as without it you will not be able to run your café. The cost of equipment can vary based on how large your café is and the type of equipment you require. The bigger your premises and the more customers you want to accommodate at one time, the more equipment you will require. You may choose to purchase less equipment initially and expand your equipment as your business grows. Equipment for your café business can cost between £5,000 and £50,000.

Maintaining, repairing and replacing equipment

Repairs, maintenance and replacements are ongoing costs you will need to factor into your budget. Although some of your equipment and machinery will come with warranties, repairs and replacements are inevitable – particularly because the equipment will experience heavy use. Cleaning and maintaining equipment and ensuring it is used correctly can extend its life, but potential repairs and replacements should still be factored into your budget.

Stock and ingredients

This is an ongoing cost you will have to factor into your budget. It includes any stock and ingredients you will need to create your products, such as eggs, milk, coffee beans and vegetables. Because many of the ingredients you require are perishable, you will need to order stock regularly (you will likely take stock deliveries at least twice per week). You can reduce the cost of your stock by buying wholesale, buying in bulk and shopping around. To maximise your profits, your food stock cost should be no more than 30% of your food sale price. The higher the return, the higher your profits will be. Some stock will be more expensive, for example, organic coffee beans.

Running costs

These are the day-to-day costs associated with running your business. Some running costs are paid monthly, and others are paid quarterly or annually. Your running costs can include electricity, gas, water, council tax and insurance. To maximise your profits, try to keep your running costs as low as possible.

You will need to hire staff such as chefs and other kitchen staff, front-of-house staff and cleaners. You will need to pay any staff you employ at least the national minimum wage of £9.50 per hour and account for other expenses such as holiday pay, sick pay, maternity/paternity pay, National Insurance and any company pension contributions.

When creating your brand identity, consider how you want your business to be perceived by potential customers. When creating your brand, consider the type of café you are setting up, the food and beverages you sell and your typical customer base. Branding can include creating your business’s visual identity, design and aesthetic, your business name and logo, your signage and your website. You could hire a professional to help you with branding or do some or all of the work yourself. Branding can cost between £500 and £10,000, depending on the level of work required.

Advertising and marketing

To ensure your café attracts customers and creates maximum profits, you will need to spend money on advertising and marketing. It is recommended that you spend between 1%-3% of your annual turnover on marketing. For example, if your annual turnover (or your desired annual turnover) is £100,000, you should spend between £1,000 and £3,000 on advertising and marketing. You may need to invest more money when you initially set up your business or when you are trying to grow your business. To reduce your costs, capitalise on free marketing strategies, such as on social media or in your local community.

You and your employees will need to obtain food hygiene training before you open your business. You will also need to refresh your training regularly (at least every three years). You may also opt to undertake other training courses, such as manual handling, first aid and electrical safety. You can expect to pay approximately £20 per training course per person.

Business insurance

There are multiple coverage options available for a café business, including:

• Public Liability Insurance.
• Employers’ Liability Insurance.
• Product Liability Insurance.
• Equipment Insurance.
• Building and Contents Insurance.
• Business Interruption Cover.
• Personal Accident Cover.

Insurance prices can vary, depending on your insurance provider and the level of coverage you require. Prices typically start from £15 per month.

Typical Pricing for Customers

Once you have calculated the typical costs associated with setting up and running a café business and the approximate costs of your stock and ingredients, you can then determine your price points. Each item on your menu will be priced individually and you may also offer your customers the option to add extra items to their order for an additional cost, for example, by adding caramel syrup and oat milk to their coffee or halloumi to their breakfast sandwich.

The price of your ingredients and the time taken to make each item will be the biggest factor in your pricing. For example, a chicken and bacon ciabatta has more expensive ingredients and involves more preparation and cooking compared to a cheese sandwich. Consider your ingredient costs and your time when pricing your menu.

However, there are other factors that will influence your pricing strategy, including:

Cafés located in a desirable location, such as in a city centre or close to a famous landmark or tourist attraction, typically charge higher prices. Your location can also mean you are more likely to attract budget, mid-range or luxury customers.

The type of café you set up

Different types of cafés have different pricing structures. For example, niche cafés (such as a vegan café) and themed cafés can typically charge higher prices as they have less direct competition and may be more likely to attract customers who are happy to pay higher prices. Additionally, the price points for grab-and-go cafés are usually lower than for hangout cafés as customers are typically looking for convenient food and beverages at an affordable price.

Your furniture and décor

Customers are usually willing to pay higher prices in cafés that are aesthetically pleasing, comfortable and well-designed. Consider your signage, your café window, your décor and your furniture (particularly the tables and chairs your customers will sit on) when creating your pricing plan.

Safely Running a Café Business

Safe practices in your café help to protect the health, safety and well-being of you, your staff and your customers. They can also help to protect your business. Some ways you can safely run your café business include:

Safely store food

All food must be stored safely to prevent contamination and ensure any food and drink is of good quality and safe to consume.

Some safe storage practices you can follow include:

• Keep storage areas clean and tidy.
• Check food deliveries are safe and of good quality before accepting them.
• Follow the First In First Out (FIFO) stock rotation system.
• Pay attention to use-by and best-before dates.
• Ensure fridges and freezers are set to the correct temperature.
• Follow the storage instruction on pre-packaged food.
• Store raw food and high-risk food correctly (e.g. below ready-to-eat foods).
• Keep foods that contain allergens separately.
• Store any chemicals away from food.
• Label any chilled or frozen food with the date.
• Ensure hot hold food is kept at the correct temperature (63°C and above).

Use a chemical safety data sheet (SDS)

If you store any chemicals, you should create safety data sheets to list the properties of each chemical, any potential physical, health and environmental hazards and any safety precautions for handling, storing and transporting the chemicals. An SDS can help to prevent exposure and reduce hazards and prepare emergency responses and procedures.

Ensure the personal hygiene of all staff

Good personal hygiene is essential when working in the food industry. Good personal hygiene can include:

• Following handwashing procedures.
• Tying back hair or covering hair.
• Not wearing false nails or nail varnish on your fingernails.
• Not wearing jewellery or watches when preparing or cooking food.
• Not wearing strong perfume or other chemical products that could contaminate the food.
• Wearing Personal Protective Equipment (PPE).
• Following good habits, such as not coughing or sneezing near food and refraining from touching your hair or face.

Be aware of staff illnesses

If any of your staff are ill, they should not be working around food or near your customers as this can compromise food safety. If any of your staff have an infection or gastrointestinal symptoms (such as vomiting or diarrhoea), they should not handle food and should not attend work. Any cuts or sores should also be covered with brightly coloured, waterproof plasters or dressings.

Implement pest prevention and control methods

Pests can be a major issue for food businesses and can result in contaminated food and your café being shut down by an Environmental Health Officer (EHO).

Some ways you can prevent pests are:

• Fill any gaps or holes in your building.
• Keep your external areas free from food, rubbish or vegetation.
• Dispose of food properly in closed bins.
• Keep your premises clean and tidy.
• Store food in sealed containers.
• Use fly screens on open windows or doors.
• Check your deliveries for signs of pest damage.

Be aware of food hazards

Food hazards are any contaminants that could enter food and cause harm to consumers. The main food hazards are:

• Biological: These hazards are microorganisms that contaminate food, usually during the cooking, reheating, chilling, storage or defrosting processes. Biological hazards can also occur through cross-contamination. Examples of biological hazards are bacteria, fungi and viruses.
• Chemical: Chemical hazards occur when naturally occurring or human-made chemical substances contaminate food. For example, chemicals from cleaning products, toxins produced by animals, plants and microorganisms or chemicals that are added to food and drink.
• Physical: This refers to foreign materials or objects that enter food or drink during preparation or handling. Physical hazards can include natural hazards, such as bones, shells and pips, and unnatural hazards, such as hair, fingernails, plastic and wood.
• Allergenic: Allergenic hazards can cause an allergic reaction or anaphylaxis in people with allergies. Allergenic hazards can occur through cross-contamination, such as the foods being prepared in the same workspace.

Ensure correct cooking temperatures

All food businesses, including cafés, must ensure they are cooking and baking at the correct temperature. This is to reduce or eliminate the risk of food poisoning. Ensure your oven or other cooking equipment is set to the correct temperature and use a food thermometer to ensure food is thoroughly cooked.

Cleaning and washing of equipment and surfaces

Having effective cleaning procedures is essential to any food business. It is recommended that a cleaning schedule or cleaning policies are in place that cover the cleaning of equipment, surfaces, and food preparation and storage areas.

Conduct risk assessments

Although not a legal requirement for businesses with fewer than five employees, risk assessments can help to eliminate risks and ensure safe practices in your café. As part of your risk assessments, you should:

• Identify hazards.
• Determine who could be at risk.
• Evaluate any potential risks.
• Implement relevant safety measures.
• Record the results of the risk assessment.
• Review the risk assessment regularly.

You should keep physical records of your risk assessments as evidence of your commitment to safe practices.

Keep clear and accurate records

When you are inspected by the EHO, they will likely request to see up-to-date records of your business’s cleaning schedules, risk assessments, health and safety policies, allergen information, and temperature checks. Keeping such records not only helps to protect your business and improve the likelihood of you receiving a higher score, but it also ensures procedures are followed at all times.

Wear Personal Protective Equipment (PPE)

Some of the PPE you may require include latex gloves, protective aprons, hair coverings and protective footwear. PPE can help to prevent cross-contamination of the food and help to protect you and your clothing.

Implement security measures

Security measures can be implemented to protect your business. Your café will likely store a lot of expensive equipment and may keep cash on site. Some ways you can protect your business include installing a CCTV system, using secure and reliable locks and installing an alarm system.

Legal Requirements

Complying with legal requirements is essential when setting up and running your café.

Some legal requirements you should be aware of are:

Comply with the Food Safety Act (1990)

The Food Safety Act applies to any business that sells food. It covers food safety, consumer protection and food information. It makes it an offence to make or sell any food which could be harmful to health and lays out hygiene practices you should follow.

There are several responsibilities laid out in the Act, including:

• Not taking away or adding any ingredients that could cause the food to become harmful.
• Not treating the food in any way that could cause it to become dangerous.
• The nature, substance and quality of the food must be to the standard that customers expect.
• Your labelling and presentation of the food should not be false or misleading.

Comply with the Food Safety and Hygiene Regulations

These regulations specify the standards relating to the control and management of the steps that are critical to food safety, including the cleanliness of your premises and equipment and temperature control in food preparation, storage and serving.

The regulations differ depending on where in the UK your business is located:

• England: The Food Safety and Hygiene (England) Regulations 2013.
• Scotland: The Food Hygiene (Scotland) Regulations 2006.
• Wales: The Food Hygiene (Wales) Regulations 2006.
• Northern Ireland: The Food Hygiene Regulations (Northern Ireland).

Comply with The Food Information (Amendment) Regulations 2019

These regulations set out the responsibilities of food businesses to provide information regarding the 14 allergens (celery, cereals, crustaceans, eggs, fish, lupin, cows milk, molluscs, mustard, nuts, peanuts, sesame seeds, soya and sulphur dioxide). The regulations were updated in 2019 to include Natasha’s Law. You must ensure that any packaging, menus, signs or labels clearly state if any of these allergens are present.

It is also a legal requirement that pre-packed for direct sale (PPDS) food is labelled with:

• The name of the food.
• A full list of ingredients.
• Any allergens that are present.

Obtain Food Hygiene training training

Any employees who prepare, handle or sell food must be supervised, instructed and trained in food hygiene. Although a food hygiene certificate isn’t a legal requirement, it is the easiest way to demonstrate your compliance to the Environmental Health Officer (EHO) that will inspect your business. Training will need to be refreshed regularly.

Implement a waste management system

Café businesses should have appropriate provisions for the separation, storage and removal of waste.

Some guidelines you should abide by include:

• Have appropriate bins inside and outside your café which are sufficient in number and specified for different types of waste.
• Do not allow waste to accumulate.
• Use bins that have fitted lids and foot pedals.
• Have a specific waste disposal area.
• Do not dispose of food waste in the sink.
• Use commercial sink strainers to prevent fat, oil, grease and small bits of food from entering the sewer network.
• Apply for a waste carrier registration if you transport any waste.

It is also recommended that you clean and disinfect bins regularly.

Comply with premises regulations

When choosing or refurbishing a commercial location, there are some guidelines and regulations you should comply with. These guidelines ensure your business is in good condition, clean and maintained and allow you to follow good hygiene practices.

• Handwashing facilities: There should be separate handwashing facilities with hot and cold running water and materials to allow hands to be washed and dried hygienically.
• Changing facilities: There should be adequate changing facilities if a member of staff needs to change their clothes.
• Ventilation, lighting and drainage: Your premises must have adequate ventilation, lighting and drainage in all relevant areas.
• Food preparation areas: – Floors and walls must be in good condition, easy to clean and frequently disinfected. – Ceilings must be in good condition, easy to clean, free from condensation and mould and free from flaking paint or plaster. – Windows and doors must be easy to clean and disinfect and if they open to the outside, fitted with removable insect-proof screens. – Surfaces should be maintained in good condition, easy to clean and frequently disinfected.
• Facilities for washing food: You should have separate sinks for washing food and cleaning equipment. These sinks should have hot and cold running water that is of drinking quality.
• Equipment: Any equipment that comes into contact with food must be in good condition and cleaned and disinfected frequently.

Register as a food business

Any business in the UK that sells food must register as a food business with their local council. You must apply for your food registration business at least 28 days before you begin trading. You can apply for your registration on gov.uk , and it is free of charge.

Display your food hygiene rating

Once you have registered your business, you will receive an inspection from the Environmental Health Office (EHO) to determine your food hygiene rating.

The inspector will assess your:

• Food storage.
• Food handling.
• Food preparation.
• Food cleanliness.
• Food safety management system.

Once you have received your food hygiene rating, this information should be clearly displayed on your premises.

Comply with the Bread and Flour Regulations (1998)

If you bake bread or other baked goods, you must follow The Bread and Flour Regulations . The regulations state the nutritional value of bread and flour that must be adhered to.

These regulations also cover information such as:

• Essential ingredients.
• Iron powder specifications.
• Non-permitted ingredients.
• Composition of flour.

Implement a Food Safety Management System (FSMS)

Food businesses in the UK must implement a Food Safety Management System. An FSMS is a systematic approach to controlling food safety hazards. It ensures that your business is following safety protocols and will influence your food hygiene rating.

Comply with the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 2013

RIDDOR states that you must report all injuries, diseases and dangerous events that occur in your business. Reports must be made to the Health and Safety Executive (HSE) using an appropriate recording document. These regulations apply to any incidents that involve employees or customers.

Comply with the Control of Substances Hazardous to Health (COSHH) Regulations 2002

The COSHH regulations state that you must control any substances that are potentially hazardous. You should also assess, control and reduce any risks or potential hazards and protect people from harm.

Some hazardous substances you should be aware of are:

• Flour dust.
• Concentrates of flavour, citrus oils and spices.
• Cleaning substances.

Comply with the Provision and Use of Work Equipment Regulations (PUWER) 1998

PUWER regulations apply to you and any employees you hire. You must ensure any equipment in your café is fit for purpose and is maintained and inspected regularly. You must also ensure that health and safety risks are minimised to an acceptable level, that you have the correct knowledge and training to use the equipment, and that protective measures are put into place. Equipment should also be used under appropriate conditions.

Comply with the Electricity at Work Regulations 1989

The Electricity at Work Regulations state that any workplaces that use electricals must construct electrical systems in a way that prevents danger, maintain electrical systems to ensure they are safe, ensure electrical equipment is checked by a competent person annually and conduct Portable Appliance Tests (PAT). This includes any electrical equipment in your kitchen.

Comply with gas safety regulations

If you have a gas boiler you will need to have it inspected by a gas-safe engineer. If your equipment is deemed safe to use and complies with government requirements, you will be issued a Gas Safety Certificate. You will need to display your gas certificate clearly for your guests and other visitors to your business to see.

Comply with fire regulations

As the business owner, you are responsible for fire safety measures in your café. There are multiple fire regulations you must ensure you comply with. For example:

• Perform a fire risk assessment.
• Comply with the Regulatory Reform (Fire Safety) Order 2005 .
• Implement any necessary fire safety measures.
• Implement emergency procedures and ensure these are clearly displayed.

Comply with the Manual Handling Operations Regulations 1992

Manual handling regulations can help to protect you and your employees from sustaining an injury or illness as a result of manual handling tasks. The regulations apply to the lifting or moving of any objects, bending down and reaching high and repetitive movements. You will likely be performing manual handling activities when performing tasks such as kneading and rolling or carrying heavy pots or trays of food.

Appoint a competent person

A competent person should be appointed to help your business meet your health and safety legal duties. You can act in this role yourself or appoint another person to fulfil this role. The competent person should have the skills, knowledge and experience to identify any hazards in your business and put controls in place to protect people from harm.

Prepare a health and safety policy

The law states that every business in the UK must have a specific policy for managing health and safety. Your policy should state exactly how you will manage health and safety in your business and state who is responsible for specific tasks and how and when these tasks are completed. Follow the recommended tips from the Health and Safety Executive on how to write a health and safety policy.

Comply with employment legislation

If you employ any staff, you must ensure you follow employment legislation, including the Employment Rights Act (1996 ) and the National Minimum Wage Act (1998) . You must also comply with legislation relating to recruitment, working hours, sickness, discrimination, dismissals, and maternity or paternity pay.

Register your business

You must register your business with HMRC before you begin operating. You can register as a sole trader or as a limited company. You will need to register your business name and any other relevant information. You will also need to register for self-assessment tax.

Positives of Owning a Café Business

Running a café can be rewarding in many ways. Some of the main pros associated with this type of business are:

Be part of your local community

Cafés are a fantastic social hub. Owning a café will give you the opportunity to meet new people, get to know your customers and socialise while you are at work. A café is an important part of the community and can act as a central hub for people of all ages. You can create rewarding social and professional relationships in your community.

Fewer food options

Even if you love cooking and baking, ordering stock, preparing food and cooking, baking and decorating can be extremely time-consuming. Cafés typically offer fewer food options than other food establishments, such as restaurants, which can save you money, time and effort. Having a less extensive menu also reduces your food waste.

Work in your dream industry

If you love food and drink and spending time with people from all walks of life, running a café can be very rewarding, Running your dream business can make your job feel less like work and more like a vocation.

Customer loyalty

If your customers enjoy your food and drinks and the atmosphere of your café, they are likely to return time and time again. Many customers return for their favourite cup of coffee daily or lunch with a friend every week. Not only does this give you the opportunity to get to know your customers, but customer loyalty can also help you to grow your profits. Loyal customers may even recommend your café to other people which can help you to grow your customer base.

Be creative

You can be creative with your food and beverages. You have the opportunity to be creative with your designs and decoration and the flavours, textures and ingredients to create the perfect products. If you love being creative and artistic, running a café can be enjoyable and rewarding. Creativity can even happen in small ways, such as a fun design on a cappuccino or a well-decorated table.

Create your dream business

You will have complete control over all business decisions, allowing you to set up your dream business, in line with your business goals and vision. You can decide the type of café to set up, the products you will sell, your brand and the café culture you want to create – the opportunities are endless. Owning your own café gives you the opportunity to be creative.

Hands-on work

As a café owner, you won’t be sitting around staring at a computer screen all day. You’ll be active for a lot of the day, involved in different tasks, running your café and talking to staff and customers. This is great for people who don’t want a traditional office job.

Create a positive work environment

You will be responsible for hiring staff and creating staff policies. This gives you the opportunity to create a positive work environment. You could hire staff that you know will bring positivity to your café and will be an asset to your business. Your staff will also likely be like-minded people who are also passionate about food and beverages and also enjoy talking to customers.

Face-to-face interaction

If you are an outgoing person and you enjoy speaking to people from all different walks of life, you will likely enjoy working in a customer-facing business. You can get to know your customers and spend time talking to them every day. Because café businesses usually experience a lot of repeat business, you can really get to know your customers.

High profit margin

Many of the products you sell will have a high profit margin, meaning the price of your products will significantly exceed your costs. For example, a cup of coffee can have a profit margin of 70%, once you factor in the cost of the ingredients and your time. A high profit margin can help you to maximise your profits and increase your business’s income.

Potential for growth

There are many potential ways you can grow your business. You could extend your premises, grow your menu, hire more staff and even open additional café franchises. Even Starbucks started out as one coffee shop and now has more than 35,000 locations worldwide. Having multiple options for growth gives your café business an unlimited income potential.

Free advertising on social media

You can easily gain exposure on social media by posting photos or videos of your café and arty or appealing pictures of your food and beverages. Your customers may also post pictures to their own social media accounts which will be seen by their followers. This can help you to gain exposure and be noticed online. Social media is a form of free advertising which can help you to grow your customer base and increase your income.

Choose your own schedule

You can choose which days your café opens and the hours you want to work. You can choose the opening hours, based on your busiest days and your own preferences. As your business grows, you can also work fewer hours and allow your employees to handle the day-to-day running of your business.

Be your own boss

You can make all key decisions yourself and steer your business in whichever direction you choose. You can choose how involved you want to be, the type of café you open, the food and beverages you sell and how you want to run your café. You can make the best decisions for you and your business.

Seasonal opportunities

Holidays and celebrations such as Christmas, Valentine’s Day, Halloween and Easter can result in a huge increase in business. You can decorate your café and sell themed products, such as Valentine’s Day cupcakes and Christmas cookies. You can even offer deals or special events at these times of year to help attract customers, for example, a chocolate egg hunt or breakfast with Father Christmas. Capitalising on special occasions can help you to attract new customers and increase your profits.

Negatives of Owning a Café Business

Although owning a café can be rewarding in many ways, there are some potentially negative aspects to running this type of business that you should be aware of.

Lack of work-life balance

There are a lot of business and administrative tasks associated with running a café that can be time-consuming. Not only will you be responsible for the day-to-day running of your business, but you will also have a large number of administrative tasks to handle, such as ordering stock, completing staff rotas, advertising and marketing and ensuring health and safety. Being responsible for such a time-consuming enterprise can negatively affect your work-life balance.

High start-up costs

The equipment needed for a café business can be expensive. You will also be responsible for the rent and renovation costs. The high start-up costs mean you may need to source outside investment. It will also take longer for you to begin turning a profit.

Ingredients and stock can be expensive

Depending on your menu, you may require expensive ingredients, such as speciality coffee beans and expensive cheeses. Although you can price your menu accordingly, prices that are too high will deter customers. Expensive stock and ingredients can affect your profit margin and your overall income.

Spoilage can affect your profits

You will be dealing with a lot of perishable ingredients and baked goods which spoil quickly. Some of the products you make will need to be sold the same day to prevent them from spoiling or going stale and becoming food waste. This can have a significant impact on your profits, as the ingredients and time required to make them are wasted.

Accountability and liability

The food industry is highly regulated with a large number of laws and regulations you must be aware of. You need to ensure you follow all policies and procedures, particularly those relating to health and safety. Not only can it be time-consuming (and sometimes expensive) to ensure compliance, but failure to comply, even unintentionally, could have serious consequences. If a customer contracts food poisoning after eating at your café, you could be held liable.

Highly competitive

Not only are you competing with other local cafés, but you will also be dealing with popular chain cafés and coffee shops, such as Starbucks and Costa. You will also have competition from local restaurants, bars and other food establishments. Having such high competition can make it more difficult for your business to succeed, particularly if your local competition is popular and well-established.

Managing staff

You will have a lot of responsibilities in relation to staffing, including hiring and firing, payroll and managing your staff. This can be stressful and time-consuming. It can also be difficult if the motivation of your employees doesn’t match your business values. If your employees demonstrate a poor attitude or don’t complete their tasks in line with your expectations, this can be viewed negatively by customers and can result in negative reviews.

Issues out of your control

This can be one of the most frustrating aspects of running a café, as things that are outside of your control can have a negative impact on your business and your profits. For example, your supplier raising their prices, your stock delivery being cancelled or your equipment breaking can prevent you from properly running your business, which could not only affect your profits but also result in negative customer reviews.

Difficult to grow your business

Many new café businesses fail to succeed because they find it difficult to successfully market a new business and grow their customer base. Successful cafés may spend years building up their client base. This could mean you initially receive less custom and earn a lower income. If you have invested a lot of money into your business, this could result in your business failing.

Long working hours

Your café could be open 7 days a week, including weekends and, depending on your location, may be open early in the morning to target workers grabbing a morning coffee or breakfast. You may find yourself working long hours which can not only be tiring but can also impact your personal life and family life.

Physically demanding

Working in a café can be physically demanding. You will be spending long hours on your feet every day and will be engaged in many physically demanding tasks, such as reaching high and bending low and carrying heavy items.

This can cause multiple health concerns, such as:

• Neck or back pain or strain.
• Pain, strain or injuries to your fingers, hands and wrists.
• Pain in your feet or legs.

It can be stressful

There are many responsibilities associated with running a café which can be stressful. Not only will you be responsible for the day-to-day running of your business, but you will also need to ensure your customers are satisfied. You are also responsible for your business’s success, which can be stress-inducing.

A lot of skill, knowledge and experience are required

To help your business succeed, you will need to be highly proficient in a variety of skills and will need to have a lot of experience with different foods and beverages. You will also need to have extensive experience working in a café and have a high level of knowledge about health, safety and hygiene legislation. It can be time-consuming to gain the appropriate skills, knowledge and experience to make your business succeed.

High risk of your business failing

Starting up a café business can be risky. Many new businesses fail which could result in you losing money or getting into debt. Your business could fail for several reasons, such as high local competition, an ineffective business plan or if the UK encounters another recession or period of financial difficulty. Because your premises and equipment will require a high initial investment, if your business fails, you will potentially lose a significant amount of money.

Complying with legislation

There are many different pieces of legislation and legal guidelines you will need to comply with. Not only can this be complicated and time-consuming, but any non-compliance (even if this is accidental) can be punished with a fine or the forced closure of your business. Some types of legislation also require you to go through specific training and/or gain a qualification, which can be costly and arduous. A café can have high liability which can be a lot of stress and pressure on a business owner.

No benefits

As you are self-employed, you won’t receive benefits such as pension contributions. You will also be responsible for doing your own taxes and organising your National Insurance contributions. You will also have a lack of job security.

Bad reviews

Although the majority of customers leave honest reviews, some customers are difficult to please and will leave a negative review because of the smallest complaint (even if it is something outside of your control, such as other customers being too loud). Sometimes a fake customer also leaves a fake review, which can be extremely difficult to disprove and remove. Negative reviews can be extremely damaging to your business, particularly if your business is new or you’ve had relatively few reviews.

Planning Your Café Business

An effective and well-designed business plan is essential to the success of your café. A business plan can help you to focus on the specific steps that will help your business succeed, plan your short-term and long-term goals, determine your financial needs and help your business to grow.

When creating your business plan, ensure it contains information such as:

• Your company information.
• Your company description.
• The services you will provide.
• Your branding, marketing and advertising plan.
• The structure of your business.
• The operational plan for your business.
• The financial plan for your business.

Some of the factors you will need to consider when creating your business plan are:

Your business summary

Your business plan should include a detailed overview of your business, including your location, the size of your business, the type of café, the products you will sell, your equipment and your business goals.

The type of café you are going to set up

Deciding what type of café you are going to set up is the first step you will need to make when creating your business plan. For example, you could choose a grab-and-go café or a hangout café. Alternatively, you could opt for a themed café or choose to operate in a specific niche, such as gluten-free or vegan. The type of café you set up will impact your premises, staff requirements, your target customers, and the types of products you sell. Consider your local competition, your budget and your own skills when deciding what type of café you will run. You should also ensure the design and aesthetic of your café fit in with your chosen niche.

The food and beverages you will sell

Cafés generally have a smaller menu than restaurants and other food and drink establishments. You may choose to offer a limited food menu and mainly focus on speciality coffee, tea and other beverages. If you plan to sell food, you must decide whether to offer a more extensive food menu, such as soups, sandwiches and breakfasts or only sell baked goods, such as cakes, brownies and cookies or pre-packed foods. Some cafés choose to specialise in a particular product, whereas others offer a more varied menu.

Your local competition

Being aware of other cafés in your area can help you decide what type of business to run and how much to charge your customers. If your local area already has several successful cafés, you may want to focus on an untapped niche and target different customers. On the other hand, if there is already a vegan café operating close to your chosen location, you may opt to open a different type of café.

Your target market

Determining your target market is a key step to helping your business succeed. Different types of cafés, different foods and beverages and different designs and aesthetics are likely to attract different customers. Your pricing strategy will also be a key factor in determining your target market. Once you have identified your typical customers, you can then focus on how to attract them to your business.

Your equipment and stock requirements

Consult the list above to determine your equipment requirements. The equipment you require will depend on the type of café you set up and how big your premises is. Once you have determined your equipment requirements, you can then calculate the initial costs of purchasing the equipment and the monthly replenishment costs, e.g. for stock and ingredients.

Your business location

Your location will have a significant impact on the types of customers you are likely to attract. It will also impact your premises’ rental costs. If your business is located in an area with high footfall or a place popular with your target market, the increased custom and higher profits will be extremely beneficial to your business. Consider your rental budget and your size requirements when choosing your premises.

Your start-up costs and running costs

Consult the list above to help you calculate the approximate costs of setting up and running your business. Determine what equipment you need and the amount of equipment, as well as the cost of your premises, to help you determine your start-up costs and what your initial investment requirements will be. You can then calculate whether you can finance your business yourself or whether you need to source outside investment, for example, from a bank or an independent investor. Determining your start-up costs and running costs can also help you to create a budget and predict when you will begin to turn a profit.

Your sales forecast

What is your average footfall likely to be? How many sales do you predict you will make each day and week? As your business grows, your sales forecast is likely to change. You should also consider whether certain times of the year are likely to have increased sales, for example, if you are located close to a beach you will likely be busier during Spring and Summer.

Your strategy for growth

Your strategy for growth is the actions you will take to realise your goals for expansion and any potential challenges your business could face and how you will avoid or overcome them. For example:

• Expand your menu.
• Hire chefs or bakers.
• Open another café location.

Creating your brand is a key way to ensure you stand out from your local competition. Branding can help you to focus on your target customers, attract clients and concentrate your marketing and advertising strategies. Some ways you can create your brand are by focusing on your business’s visual identity and creating a brand story. Your business name and logo are also part of your branding so ensure you consider these when creating your business plan.

Your business goals

Determining your business goals is an essential part of creating your business plan. Your business objectives highlight the targets and goals of your café business and help you to create a one-year, three-year and five-year business plan.

Your business objectives should be SMART:

• S = Specific
• M = Measurable
• A = Achievable
• R = Realistic
• T = Time-bound

Legal requirements

Consult the list of legal requirements above to check you have complied with all requirements and regulations and that all your paperwork is accurate. Failure to comply with legal requirements could have a detrimental effect on your business or could result in a fine, the forced closure of your business or, in serious cases, prosecution.

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Cafe Bistro Coffeehouse Business Plan

Start your own cafe bistro coffeehouse business plan

The Watertower Cafe

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

The Sweet Auborn District in Atlanta Georgia is in need of a cafe that serves the residents and people that work in the area. The population is growing and the places where people can get a meal are over crowded. The cafe that was serving the function,  Cafe Apres/Diem moved out of the area leaving a opening.

The Watertower is a full-service restaurant/cafe located in the Sweet Auburn District of Atlanta. The restaurant features a full menu of moderately priced “comfort” food influenced by African and French cooking traditions, but based upon time honored recipes from around the world. The cafe section of The Watertower features a coffeehouse with a dessert bar, magazines, and space for live performers.

The casual dining/full service restaurant market is a $100+ billion industry in the United States, with annual increases in revenue outpacing 5% yearly. More and more people are choosing to eat out. One of the most common reasons cited by restauranteurs and industry associations is that women have joined the workforce in record numbers. In fact, from 1955 to 1995, the dollars spent for food away from home rose by almost 20%, coinciding with the number of women entering the work force. With two income earners per household, neither person may have time to fix meals. Since the 1950s, commercial food service sales have continued to rise as more and more people find that eating away from home suits their lifestyles

Competition

The general nature of the competition is typically a 70 to 150 seat restaurant with outdoor seating. The menu prices for entree’s range from $7.00 to over $25.00. All of the surrounding establishments serve, at a minimum, beer and wine. Most serve liquor-spirits as well.

The Watertower will provide accessible and affordable high quality food, coffee-based products, and entertainment to the thousands of residents and hotel visitors located within a five-mile radius. In time, The Watertower will establish itself as a “destination” of choice to the many residents of the greater Atlanta metropolitan area, as well as numerous out-of-town visitors.

Expectations

We expect income to approach $2.1 million for calendar for the first year in business. It should increase to $2.57 million by the end of the third year.

Financial Highlights by Year

Financing needed.

We will start with getting $214,000 dollars to get going.  That is $124,000 from investor 1 and $64,000 from investor 2. We will also be getting a $30,000 loan. We will be able to pay the loan and the investment back by year 3

Problem & Solution

Problem worth solving.

The Sweet Auborn District in Atlanta Georgia is in need of a cafe that serves the residents and people that work in the area. The population is growing and the places where people can get a meal are over crowded. The cafe that was serving the function,  Cafe Apres/Diem moved out of the area leaving a opening. 

Our Solution

The Watertower concept is built upon the success stories of Atlanta’s many casual dining and coffeehouse venues. Located in the Sweet Auburn District of Atlanta adjacent to the Studioplex on Auburn residential loft development, The Watertower will provide accessible and affordable high quality food, coffee-based products, and entertainment to the thousands of residents and hotel visitors located within a five-mile radius. In time, The Watertower will establish itself as a "destination" of choice to the many residents of the greater Atlanta metropolitan area, as well as numerous out-of-town visitors.

The establishment will provide a "complete, high-quality" evening experience for those searching for something that is rapidly becoming popular among Atlanta diners. Not only will patrons be able to dine on "comfort" food based upon time honored recipes from the world over, they will do so in a facility containing ample patio space for a favorite pastime of Atlanta’s residents: alfresco dining. Patrons will also have the option of enjoying coffee, desserts, and live entertainment in The Watertower’s coffeehouse or, a relaxed game of bocci in the gardens located adjacent to the patio space.

The cafe’s aim is simple. It will provide a completely sophisticated, sensual, yet casual dining and/or coffeehouse experience for the many Atlantans and visitors who frequent the city’s casual dining spots and entertainment venues. It will be an affordable venture for patrons, one that will encourage them to return on many occasions. The menu will feature hearty fare of the type that is frequently out of the reach of the typical young professional…out of reach because time frequently prevents her/him from cooking hearty meals like those featured on our menu.

Finally, and quite significantly, The Watertower will provide a much needed neighborhood-based retail food operation that is currently unavailable to the southern end of Atlanta’s Old Fourth Ward neighborhood. Not only is it projected that the business will generate 21 new jobs, the partnership responsible for creating The Watertower will generate additional revenue specifically dedicated to assisting the Historic District Development Corporation in its efforts to bring affordable housing, new jobs, and commercial activity to the Old Fourth Ward.

Target Market

Market size & segments.

Market Segmentation

The  "Market Opportunity Analysis for Residential and Commercial Uses along the Auburn Avenue Corridor,"  written by Robert Charles Lesser & Co., makes the following points about food retail for The Watertower at the Studioplex on Auburn site:

Studioplex is in proximity to new and existing residences, including the affluent, and immediately adjacent Inman Park neighborhood; a restaurant would be a destination space within the neighborhood.

A restaurant/coffeehouse would provide one of the best food and beverage opportunities for the more than 500,000 annual visitors to the Martin Luther King Historic District.

Location is close to employment centers or within retail corridor.

Studioplex patrons and residents will provide primary support; secondary support will come from area residents and hotel visitors/conventioneers.

Cross-selling opportunities exist with coffee beverages and magazines.

The coffee shop and the magazines sold there will be positioned to fill a niche demand for people interested in art, architecture, design photography, and home and garden pursuits.

Target market audience is a mix of Studioplex residents, artists, patrons, intown residents, downtown hotel visitors/conventioneers, and workers.

The immediate market area is within a four-mile radius of The Watertower and Studioplex and includes the neighborhoods of Sweet Auburn, Fairlie Poplar, Downtown, Grant Park, Inman Park, Poncey Highlands, Virginia Highland, Little Five Points, Lake Claire, Midtown, East Atlanta, Candler Park, Morningside, Cabbagetown, Druid Hills, and adjacent neighborhoods.

Target Market Segment Strategy

The Watertower will appeal to urban professionals residing in the targeted intown neighborhoods, the many downtown hotel visitors/conventioneers, and workers who desire a sophisticated yet casual eating, coffeehouse entertainment experience. The business will also meet an under-served need for a pedestrian-friendly dining/coffeehouse establishment for the numerous residents in the area, particularly newcomers to the immediate area.

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Current Alternatives

Current alternatives to the Watertown Cafe: 

Loca Luna:  Located in the heart of Midtown, this establishment features a Latin house band which is often a group of four Brazilian musicians. The menu is primarily a Spanish tapas style menu with other entree offerings. The venue also features a small dance floor.

Yin Yang Cafe:  Located on Spring Street, just north of Atlanta’s landmark Varsity restaurant, the club features a limited menu and a regular offering of acid jazz, hip-hop, and R&B acts.

Kaya:  A bistro and large scale nightclub located on Peachtree Street in Midtown, Kaya boasts an impressive array of entertainment, from Latin music, to hip-hop, disco, and live bands. The restaurant is located on the Peachtree Street side of the club. In the evening, the restaurant generally features a dj or a live band, while the large club portion in the rear of the establishment features a large dance floor and a dj.

Cosmopolitan:  Cosmopolitan is located in a converted house in Midtown. It is a very small venue featuring a casual-upscale dining menu. The club is converted to a cocktail bar/nightclub in the evening with a small dance floor. It has no designated parking.

The Somber Reptile:  Located in downtown Atlanta on Marietta Street, the club features live rock bands and a cajun oriented menu. The clientele is growing steadily as the club’s reputation grows. It offers an alternative to the traditional Atlanta nightlife scene.

Cafe/Apres Diem:  Cafe Diem, the first coffeehouse/restaurant to be located south of Ponce De Leon Avenue on the northeast side of Atlanta, has enjoyed extraordinary success. Formerly located on Highland Avenue, the business recently (and reluctantly) located to a strip mall in midtown after a lengthy dispute with its former landlord. It’s departure from the immediate area provides an extraordinary opportunity for The Watertower to capitalize on an even greater unmet need for a casual restaurant/coffeehouse experience.

Highland Bagel/Caribou Coffee:  Located on North Highland Avenue, this is a traditional corporate coffeehouse which provides morning coffee and sandwich service. The owners are currently expanding to provide evening service.

Our Advantages

The Watertower maintains a competitive edge in several significant areas:

• The facility’s location puts it into close proximity to substantial populations of affluent Atlantans.
• The owner, a 16-year-resident of Atlanta, was educated in and works professionally in northeast Atlanta. His early work experience included a substantial period working within a casual/upscale restaurant in the mid-to-late 1980s in Virginia Highland. As the Dean of Students at Emory University School of Law, he has conferred over 1,300 law degrees during his tenure, most of them have remained in the Atlanta area. His position at Emory also required him to manage significant catering budgets. The owner, through his business, academic, and community activities, maintains a substantial Atlanta-based network of professionals.
• The facility’s construction will easily allow for flexible dining/coffeehouse/entertainment options making it attractive to numerous populations.
• The facility’s location in an Empowerment Zone and local Enterprise Zone provides significant tax advantages.

Keys to Success

The keys to success in this business are:

• Product quality: We think our customers will appreciate quality: Food, coffee-based beverages, and entertainment are our products. They must be of the high quality and value. We buy they pay, we will watch inventory and make sure that it turns over before the food goes bad. 
• Service: Our patrons are paying to have a good time. Their experience will suffer if service is not of the highest caliber. Each member of the staff will be courteous, efficient, and attentive. These will be measured by word of mouth, return customers, reviews on Facebook and Twitter. We will be very aware of what is being said and will be making constant changes to make sure our customers know they are being heard. 
• Marketing: We will need to target our audience early and often. While the business is located in a central and accessible location, many people will have to be re-introduced to the neighborhood surrounding the Martin Luther King National Historic Site and Auburn Avenue. This will be measured by the number of business lunch reservations, have a delivery service, and Social Media will run a campaign allowing them to get a discount if they use certain codes the first time. Credit card reciepts will keep track of our return customers. 
• Management: Proper inventory, employee management, and quality control is central to our business. We will keep a very close eye on our business operations  so that we can keep our prices competitive

Marketing & Sales

Marketing plan.

 Our food, beverage, newspaper/magazine, and entertainment products must first sell themselves through word of mouth.

We plan on running a social media campaign. We will be running a Twitter Facebook and Instagram campaign. We want our clients to let us know their favorite dishes and drinks. We will also encourage our customers to share positive reviews with each other and will address any negative reviews we see. We always want to make our service and our dishes better. 

Next, the packaging of The Watertower’s concept and external messages have to fit our positioning. We offer an upscale feel without a required "pinch" in your wallet. We then communicate this through the free weekly media ( Creative Loafing , Southern Voice , and others), radio advertising on particular jazz, acid-jazz, Latin, and dance-oriented music shows, and traditional public radio sponsorships.

Through establishing relationships with the concierges of the local hotels and with the Atlanta Convention and Visitors Bureau, we will then attempt to create opportunities for visitors to the city to look forward to experiencing The Watertower.

The first category of our sales strategy is to establish and maintain a position with our primary constituents: intown Atlanta residents within a 4 mile radius of The Watertower’s location. We will depend upon keeping these people happy with our food and beverage products and entertainment options.

Our second strategy is to utilize the downtown hotel/convention business through developing and maintaining close relationships with the planners of upcoming conventions and their respective attendees in order to create a "private function/party" option for corporations visiting Atlanta during the early part of the week, as well as encouraging individual visits by conventioneers later in the week. This strategy will also target the many hotel concierges who are available to promote dining options located within two miles of downtown hotel venues.

Our third strategy targets the more than 500,000 visitors to the Martin Luther King National Historic Site. This segment provides mainly lunch business.

Fourth, the restaurant will target sales to downtown and midtown businesses (particularly law firms) for regular business lunch and dinner entertaining.

Locations & Facilities

The Watertower will be located in a newly renovated facility designed by the architectural firm of Richard Rauh & Associates, Atlanta, GA.

The facility’s perimeter will feature a simple garden and bocci courts which will provide comfortable waiting areas during the warm weather months.

Finally, an historic 200+ foot watertower forms the centerpiece of the grounds immediately adjacent to the proposed business. This watertower, constructed in 1906, features extraordinary cathedral-like interior space. It is our hope that our construction plans will support dramatic lighting of the tower after sundown, creating a rather visible nighttime landmark for northeast Atlanta.

The Watertower logo is protected by federal trademark laws. All of our menu creations will not necessarily have the same protections, however, when possible, popular "trade-names" will be protected. The business of The Watertower is not dependent upon process technology or patentable inventions.

Milestones & Metrics

Milestones table, ownership & structure.

The Watertower is a privately held limited liability corporation wholly owned by David N. Patton IV(80%) and the Historic District Development Corporation (20%).

Management Team

David N. Patton IV – Owner and General Manager:  Mr. Patton worked for 6 years as the Dean of Students for Emory University School of Law. While working at Emory, he was responsible for special event planning and catering, particularly related to student centered events. Mr. Patton is the Chairman of the Board of Directors of the Historic District Development Corporation, an organization devoted to the redevelopment of the properties and neighborhood surrounding Atlanta’s Martin Luther King National Historic Site and Preservation District. He is also a member of the Advisory Board for the Atlanta Executive Network, a 1,000+ member business organization in Atlanta, and the past Chairman of the Board of Directors for Fulton County Court Appointed Special Advocates. Prior to his position at Emory, Mr. Patton worked as an attorney for a Cincinnati, Ohio-based law where he specialized in litigation and small business development. Mr. Patton received his law degree from the University of Georgia in 1991 and his undergraduate degree from Emory University in 1988. Mr. Patton put himself through college working in a casual dining establishment in the Virginia Highland neighborhood in the late 1980s.

The following potential managers are under consideration for employment

Nicolas Godebert – Chef:  Mr. Godebert is currently the Executive Chef of the Chanteclair Restaurant, St. Martin, F.W.I. He has been in this position since 1997. Prior to this appointment, he was the sous-chef at Dessirier Restaurant, Paris, France and the sous-chef for the Raphael Hotel Restaurant, Paris, France. He received his apprenticeship and cooking school certificate from the Sous l’Olivier Restaurant and the Ecole de Paris des Metiers de la Table in 1993, respectively.

Cristina Brito – Manager:  Ms. Brito, currently a food and beverage supervisor for the Westin Atlanta North hotel, received her start in the hotel and restaurant business in Recife-PE/ Brazil. At the Mar Hotel, she was responsible for the sales and marketing of a five-star establishment. She maintained extensive contact with corporate clients, thus requiring her to speak English, French, Italian, and Portuguese fluently. Ms. Brito has extensive experience in Atlanta’s catering industry dating from 1988, as well as experience as a chef.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

The most important indicators in our case are are daily seating "counts" and weekly sales numbers. We must also make sure that we are turning our inventory rapidly so as to avoid food spoilage.

We must target net profit/sales figures toward the 14% level with gross margins around  45%. Marketing costs should never exceed three percent of sales. We will use Social Media Facebook Twitter and Instagram to reach to the community and listen to our customers while keeping the costs down. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We will use the funds to: move into a space that has enough room for a restaurant and coffee service. renovation, buy all the equipment we need to set up, and decorate as well as train our people to give really good service. 

Sources of Funds

We plan on getting 180,000 dollars from two investors. We will also get a 30,000 dollar loan that will be paid off in 2 years. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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9 places to nosh on bagels in southern Maine

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Bread and bagels at The Works Cafe in downtown Portland. Photo by Aimsel Ponti

From New York-style boiled bagels to Montreal-inspired wood-fired ones, there’s lots of great bagels in southern Maine and several shops have the accolades to back that up.

In 2023, Bon Appetit named bagels from Rose Foods and Rover Bagel among the best in the country.

Two years before that,  Food & Wine Magazine put Rover, Forage and Scratch Baking Co. on its list of best bagels in the U.S.

Whether you like yours toasted with cream cheese or as the bread for your breakfast sandwich, you can find plenty of styles and flavors from Biddeford to Brunswick.

BEACH BAGELS

The offerings at Beach Bagels include a French toast and marble bagel, and the cream cheese menu comprises spreads like strawberry, olive and honey walnut. Along with breakfast sandwiches, Beach Bagels has hearty breakfast options like omelets and pancakes. Best of all, you’re steps away from a beach stroll. Just don’t let the seagulls steal your bagel. Advertisement

WHEN: 7 a.m. to 3 p.m. daily WHERE: 34 Old Orchard St., Old Orchard Beach. beachbagels.yolasite.com ______________

Dutchman’s opened in 2022 as a pop-up housed at Nomad pizza in Brunswick’s Fort Andross building. It’s since become a permanent fixture there and uses the pizzeria’s wood-fired ovens to bake its bagels. The hand-shaped, honey-boiled bagels come in plain, roasted garlic, poppy and a bagel-of-the-day flavor.

WHEN: 8 a.m. to 1 p.m. Thursday to Sunday WHERE: Fort Andross, 14 Maine St., Brunswick. dutchmans.me ______________

FORAGE MARKET

Making bagels at Forage Market involves a two-day aging process. The bagels are naturally leavened with wild yeast starter and baked next to a hardwood fire. There are usually five flavors available, including sesame and garlic. Breakfast sandwiches (including vegan options) are available. Forage also has a location in Lewiston. Advertisement

WHEN: 7 a.m. to 1 p.m. Monday to Friday, 8 a.m. to 1 p.m. Saturday and Sunday WHERE: 123 Washington Ave., Portland. foragemarket.com _____________

MISTER BAGEL

There are 10 or so Mister Bagel locations in Maine, including South Portland and Falmouth. It all began with the Portland location, which was the first bagel shop to open in Maine. The late Rick Hartglass started Mister Bagel in 1977, and it is still a family business. Music fans will appreciate the breakfast sandwich menu, which includes The David Bowie (bacon, egg and American cheese), the Jimmy Buffett (egg with roast beef and cheddar) and The Lady Gaga (avocado, salt and pepper, with or without egg).

WHEN: 6:30 a.m. to noon Monday to Friday, 7 a.m. to noon Saturday and Sunday WHERE: 599 Forest Ave., Portland. misterbagelforestave.com ______________

At Rose Foods, the menu varies depending on the day, but there are usually six to eight flavors available. For example, should you pop in on a Friday, you’ll find a poppy and onion bialy (a cousin of the bagel that is not boiled). Rose Foods also makes a number of bagel sandwiches, including the Classic Nova with Nova lox and the Classic Whitefish. Advertisement

WHEN: 7 a.m. to 2 p.m. daily WHERE: 428 Forest Ave., Portland. rosefoods.me

______________

ROVER BAGEL

At Rover Bagel, you’ll find wood-fired plain, poppy, sea salt, sesame and everything bagels available most of the time, and the spread game here is strong with cream cheese options like lemon-thyme-honey cream and chili-garlic.

WHEN: 7 a.m. to 1 p.m. Wednesday to Friday, 8 a.m. to 1 p.m. Saturday, 8 a.m. to noon Sunday WHERE: 10 West Point Lane Suite 10-204, Biddeford (Pepperell Mill). roverbagel.com

______________ Advertisement

SCRATCH BAKING CO.

You haven’t lived until you’ve experienced the line of devoted fans waiting for Scratch Baking Co. to open, especially on weekend mornings. Along with the popular Maine sea salt, plain and other everyday flavors, Scratch has a daily special bagel. There’s honeyed rosemary on Wednesday and jalapeno cheddar on Thursday. Scratch is also famous, at least to locals, for its P-Cheese spread. It’s a pimento cheese recipe made with cheddar, mayo, roasted red peppers and seasoning and was passed down to co-owner and head baker Allison Reid by her grandmother, Mern.

WHEN: 7 a.m. to 1 p.m. Wednesday to Saturday, 7 a.m. to noon Sunday WHERE: 416 Preble St., South Portland. scratchbakingco.com ___________

THE MAINE BAGEL

The Maine Bagel is a drive-thru with several breakfast and other kinds of sandwiches available. With a bagel list that features egg and bialy among the standards, the family-owned spot is the perfect place to stop on your way to Pine Point Beach. The Maine Bagel really shines with a dozen kinds of cream cheese spreads, including raisin-walnut, lox, strawberry, cranberry-nut and bacon-chive.

WHEN: 6:30 a.m. to 2 p.m. Tuesday to Friday, 7 a.m. to 1 p.m. Saturday. WHERE: 117 Route 1, Scarborough. themainebagel.com Advertisement

THE WORKS CAFE

The Works Cafe is an institution on the edge of the Portland’s Old Port. It opened in 1990 as Bagel Works before it changed its name in 2002. The original shop in this regional chain opened in Manchester, Vermont, in 1988, and there are 11 locations around New England, though just the one in Maine. Gone are the ’90s-era banana-walnut bagels and cold pizza cream cheese, but The Works Cafe is still a reliable place to grab a salt, multigrain or cinnamon raisin bagel, among others. The menu also has bowls, sandwiches and smoothies.

WHEN: 6 a.m. to 7 p.m. daily WHERE: 15 Temple St., Portland. workscafe.com

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