business plan template for cafe uk

How to Write a Coffee Shop Business Plan

Have you always dreamed of opening a coffee shop? Then you’ve come to the right place.

Starting a coffee shop business plan is the first step to success. If you’re planning on raising startup capital by pitching to investors , make sure your coffee shop business plan is ready because they will definitely ask to see it.

If you’ve never seen a coffee shop business plan before, here’s a sample you can use (along with the template below) to get you started. It covers all the basic elements of a proper business plan, including an executive summary, overview and description of a coffee shop business, marketplace information, marketing initiatives, business operations, and financial plans.

In this article, we provide a step-by-step approach on how to write a successful coffee shop business plan. We outline each section needed in a good plan, explain that section’s purpose, and provide an example you can use as a starting point.

6 things to consider before  writing your coffee shop business plan

Before you start actually writing your coffee shop business plan, there are a few things you want to nail down first that will save you time and make communicating your vision a lot easier.

Make sure you can answer each of the following questions:

1. How long should a coffee shop business plan be?

A business plan can be anywhere from a few sheets to hundreds of pages long, depending on the size of your proposed business.

For a relatively small business like a coffee shop it’s best to keep the plan as brief and succinct as possible. We recommend 30 pages or less – especially if you intend to submit it to financial lenders for debt or equity financing. They will be looking for solid research, analysis, and strategy written in a concise form.

2. Who’s going to read your coffee shop business plan?

Take into consideration the audience of your coffee shop business plan. Will you be approaching financial lenders or investors? Or is your plan specifically for you and your management team? Just like creating a marketing plan , you need to adjust your writing style and messaging to match the audience’s interest. Certain sections might need more emphasis over others depending on your primary audience.

3. Where will your coffee shop be located?

If you aren’t ready to choose an exact location for your coffee shop , you should at least know which neighbourhood you’re targeting. The location you choose will determine important elements of your coffee shop business plan, such as your competitive analysis and venue type.

4. What is your venue type?

It’s important that you have a clear idea or concept of the type of coffee shop you want to open . What you need to cover in your coffee shop business plan will depend on whether you’re opening a small intimate cafe, gourmet food stand, or craft microbrewery. These can all be considered coffee shops. Sometimes it’s helpful to create Pinterest boards to help you fully visualize your concept.

5. What are your business goals?

Do you have any ideas of what your short- and long-term business goals are for your coffee shop? Are you going to start with one location and then expand a year after launching? Do you want to start off smaller with a food stand and then, once you have enough sales, open a sister coffee shop in a different neighbourhood? Be as specific as you can when communicating your vision and the goals you’re aiming to achieve.

6. What are your credentials and experience?

Have you ever worked in the coffee shop industry? Do you have any certifications? Consider the skills and experience you have that would give your audience confidence that you’re the right person for the business.

If you’re confident you have the skills and experience, then it should show in the coffee shop business plan. But if you’ve never spent any time working in the foodservice industry, you may want to get some hands-on experience so that, at the very least, you know what you’re getting yourself into.

5 Tips for Writing a Coffee Shop Business Plan

So now you’re ready to start writing your coffee shop business plan. To make the writing process easier for you, here are five useful tips:

• Collect relevant resources (in addition to this article) that will help you when writing. This can include how-to guides, research and trends, and sample business plans – real or imagined. You can use all of these as inspiration and include them in the appropriate sections of your business plan.
• Write down as much as you can without filtering yourself in the first round. Once everything is out, you can then determine which parts are relevant to which part of your business plan.
• Don’t let yourself get stuck on one section. If you get writer’s block, make a note and move on to the next section. You can revisit it later, once you have more information or clarity.
• Use visuals such as graphics and images to clarify your message wherever appropriate. As you write your coffee shop business plan, pull images from any Pinterest boards you created while visualizing your venue and concept.
• All good things take time. So will your coffee shop business plan. Don’t worry if it takes longer than what you were hoping for. As time passes and you continue to work on your plan, you’ll be able to fine-tune your message and express your thoughts in a cohesive and succinct way.

Coffee Shop Business Plan Template

1. table of contents.

Even for a small coffee shop, your business plan is going to be a long document. A table of contents makes it easier for someone to find specific sections as they read through your plan.

2. Executive Summary

While the executive summary should appear at the beginning of your business plan, it’s the last thing that should be written because it’s an overview of the full business plan. It’s the most important part of your business plan and should be no longer than one page. The purpose is to summarize the main points of the plan, which helps save your audience time. They can then review the sections that are of most interest to them if they want to learn more. Remember to keep this section concise yet inspiring.

3. Business Overview

This section should include a list of basic information about your business. Refer to our coffee shop business plan template to see what it should look like when it’s fully fleshed out.

Below are common details that should be included in your plan, especially if you’ll be seeking bank loans or pitching to investors:

• Legal name of business
• Trade name of business (doing business as)
• Business address (or potential business address)
• Nature of business
• Structure of business
• Date business was established
• Current mailing address
• Phone number
• Banking details (branch and banker’s name)
• Social media handles

4. Business Description

This section is where your coffee shop concept comes to life.

It’s time to describe your business in great detail: elements like what the concept is going to look like, where it will be located, and the kind of vibe or brand you’ll be creating. Your business description provides paint a clear picture of your vision and goals.

Here’s what to include in your business description:

Will your coffee business be a sole trader, partnership, limited liability partnership or limited liability company? What people will be involved and what are their roles? Will some wear multiple hats? Be concise – you’ll go into more detail about the team later on.

Your coffee shop concept is your big idea . Take the time to describe why your idea is unique and what differentiates you from other coffee shops. Why should coffee drinkers choose your shop over the one down the street or two blocks over? Also, consider what kind of experience you want to create for your customers. Having a restaurant is not just about what you serve to customers but how you serve the whole experience.

Mission statement

Your restaurant mission statement  is one sentence that describes what your coffee shop will achieve. Think of your end goal as the ultimate driving force behind your business. Your mission statement should be something that can be displayed on marketing materials, so keep it short and straight to the point. It needs to easily express to people what your business is about.

Short- and long-term goals

In this section, you’ll want to mention any relevant personal and/or business goals. Your short-term goals describe your first year as a coffee shop owner. Long-term goals involve bigger picture thinking. They are things like how to scale your business or expand into new markets. Be descriptive in this section, but also realistic (i.e. stay within the scope of your financial projections ).

Menu and services

Include a sample menu and discuss your concept in greater detail. If you’re going to offer catering, delivery, or any other services, also include details about complimentary parts of the business in this section. Describe anything else you’ll be selling, such as pre-packaged foods, canned or bottled drinks, or retail products.

You probably haven’t secured a location or negotiated a lease just yet. No problem. Instead of those details, mention the neighbourhoods you’re considering for your venue and why. Answer the following questions and consider the effects they will have on your business:

• Attraction: Which features of the neighbourhood will affect your coffee shop?
• Competition: What other coffee shops or related businesses are located in the area?
• Demographics: What kinds of people live, work, or visit the neighbourhood?

Describe your concept with as much visual detail as possible. Communicate why these details are important and how they relate back to your brand. If you’re working with a design agency or interior designer, mention them in this section and include their visual proposals or mockups.

Business description summary

This section covers a lot, so briefly sum it all up at the end. The business description tends to be filled with a lot of necessary details, so a summary will help your audience understand the main points.

5. The Marketplace

For this section of the coffee shop business plan, you want to demonstrate that you have thoroughly analysed the target market and can prove there is a demand for your business.

A good way to gather intelligence is to do a competitor analysis . Visit your competition, document their menu items, marketing tactics, business practices, pricing, and brand positioning, then analyze your findings from a variety of different angles.

You can also ask people in your prospective neighbourhood about how businesses perform in that area. By gathering as much information as you can, your marketplace assessment will be realistic and paint a clearer picture of how your business can be successful.

The marketplace section is another lengthy part of the coffee shop business plan, that includes the following components:

Market segment

In this section, you should provide an overview of your target audience. Consider details like demographics, psychographics, and segments of your target market.

It’s time to put your target customers under the microscope, show how well you know them. What types of people will frequent your coffee shop and what similarities/differences do they share? Get qualitative and quantitative data, and reference external resources that provide statistics about your customer segments and any other relevant information. Note that each customer segment within your target demographic will most likely have specific needs.

Market Trends

Include relevant statistics about past and current trends within your targeted marketplace. Anything that relates to the demand for a coffee shop business, as well as social and economic factors that have affected similar businesses in the area. Also mention if you’ve conducted your own research or hired a third-party to conduct research on your behalf.

Competition

In this section, you’ll want to be specific about who you consider to be competition. You’ll have both direct and indirect competition within your chosen neighbourhood. Your direct competitors are the coffee shops that offer similar customer experiences and types of cuisine. Indirect competitors may be different from your coffee shop concept but still compete for your target market’s attention and spend.

Now that you’ve analysed the competition, you should be able to articulate what makes you stand out from the others. What does your coffee shop offer to your target audience that no one else currently provides? Why should someone choose your business over another?

Opportunities

Taking into account your competition and customers, you should see where the gaps lie between supply and demand. Use this knowledge to fine-tune your concept and provide a better option for customers. From the menu to opening hours, whatever your coffee shop can do better than everyone else should be highlighted in this section.

Now consider the flip side: what advantages do your competitors have over your business? What do they offer to the market that your coffee shop doesn’t? Provide rationale as to why your coffee shop faces these barriers and, most importantly, how you’ll tackle them once you’re officially open.

Marketplace summary

Time to sum it all up. Expect this section to be a long one, because you’ve got to summarise everything you’ve outline in regards to your marketplace. Highlight the pieces of information that will have the most impact on your audience, such as the demographics of your target market, advantages, and opportunities.

6. Marketing

You may be an amazing barista who can make a killer cappuccino, but without consistent customers and sales, your business isn’t going to last for very long. You need a marketing strategy to keep people coming through the doors.

In this section, we’ll provide an overview of what to include in your marketing strategy, which you can use later on as the framework for your full restaurant marketing plan .

Positioning

Describe how you’ll appeal to your target customers and stay top of mind. Use the differentiators you outlined in the marketplace section to guide your positioning strategy. What do you offer that your target customers can’t get anywhere else? How will you communicate these offerings?

Describe your pricing strategy and how it compares to competitors. The most common question small businesses owners have is, “How do you know what price to charge?”

Questions that will help you decide on a pricing strategy include:

• What are your food costs? (the total amount spent on food and beverages)
• What are your food portion costs? (the sum total of all ingredients in one menu item)
• What is the market price of similar menu items? (i.e. your competitors)
• How does your pricing compare to the market price?
• How is your pricing competitive?
• What kind of return on investment do you expect with this pricing strategy, and within what time period?

Once you’ve determined your pricing strategy, make sure it aligns with your financials. The prices you charge have to be competitive but still allow you to make a reasonable profit.

Online promotion

• Social Media: If you plan on creating and maintaining social media accounts like Twitter, Instagram, and Facebook, explain how you’ll use them to promote your business and brand.
• Website: Describe your website’s overall concept and how it aligns with your brand. Provide visuals of the main elements and design style. Also, mention if you plan to built the site in-house or pay for professional services.
• Advertising: List all of your paid digital promotions such as review sites, email marketing, and social media ads, as well as any agencies you’ll work with to develop and execute your digital marketing initiatives.

Traditional promotion

Will you be hosting an event for coffee lovers? Running a free coffee for a month contest? What about mailing printed ads to tempt locals with photos of your pastries? It’s always a good practice to have a mix of promotional tactics, so if you plan on utilising traditional channels as well as digital, list all your planned traditional ones here.

Marketing summary

Again, here’s your opportunity to briefly summarise your overall marketing strategy and describe which channels you’ll be investing in the most. Emphasize why your marketing strategy is the best approach for both the type of coffee shop you’re opening and the neighbourhood.

7. Business Operations

You’ve described your vision, the marketplace, and how you plan to market your business. Now it’s time to outline how you’ll actually execute your plan. This means outlining who will operate the day-to-day of your coffee shop.

Describe the main business management categories relevant to your coffee shop and identify the core team members who are going to have responsibility for each category. Introduce everyone on your payroll, from your restaurant consultant to management team to star baristas. List everyone’s qualifications, skills, and responsibilities, placing emphasis on how each role will help you reach your business goals.

List your suppliers according to type. Include descriptions of how each supplier will serve your coffee shop’s needs , as well as their credit and payment terms. This will include everything from food to technology to takeout coffee cups – even landscaping, if you location needs it. Consider how these suppliers may fit into your overall brand, in terms of what quality they are and how they’re sourced.

Since your coffee shop needs insurance coverage , conduct research to determine what’s mandatory. From general liability to workers’ compensation, getting the right insurance will help you sleep at night knowing you’re covered if something goes wrong (a big knock on wood here). Be sure to check with local and national requirements because these requirement may vary. Also, compare quotes from insurance providers. List each type of insurance your coffee shop will need and include what’s covered.

Figuring out what licenses your coffee shop will need is similar to insurance requirements (though this list may be longer). Required licenses and permits can be everything from a business license to food handler permits to music licenses. Start your research as soon as possible by checking your local government office website. List all of the licenses and permits required for your coffee shop and staff in this section.

Business operations summary

Summarize the main points discussed in the Business Operations section. This should be fairly straight forward, as it’s more fact-based than other sections.

8. Financials

The financial plan is the most important section of your coffee shop business plan – especially if you need debt financing or are trying to pitch to investors. Your financial plan has to demonstrate your business’ potential for growth and profitability. To do this, you will need to document your forecast in four main parts:

• Revenue (forecasted sales)
• Controllable costs (food and beverage costs, cost of labour)
• Expenses (rent, supplies, utilities, marketing, etc.)
• Start-up costs (costs related to opening your coffee shop, such as capital improvements and training)

For new businesses, a good rule of thumb is to underestimate revenues and overestimate expenses – the age old “under promise, over deliver” strategy.

We’ve created a forecast within our coffee shop business sample plan to demonstrate what numbers need to be included. Once you understand the sample forecast, you can then create your own forecast sheets and add in your numbers to project how profitable you’ll be.

9. Coffee Shop Business Plan Summary

Your business plan summary needs to tie together the overall message you’re trying to communicate. Use this final section to highlight how your coffee shop is different from what’s currently available in the market. It’s an opportunity for you to reiterate the most important points about your business.

Make sure to include the following sections:

• Why your business will be successful: In a few sentences, repeat how your coffee shop is different and why your business will work.
• What you need to be successful: If you’re asking for funding, repeat that ask here.
• A thank you note: Thank your audience for reading your coffee shop business plan and remind them that you value their time and feedback.

If you’re thinking about opening a coffee shop then creating a business plan needs to be at the top of your priority list. Remember: you’re building a foundation for success. This includes saving money – because you’ll have your financials organized – and being able to actually get funding from banks and investors.

It’s a lot of work, yes. But keep in mind that you’re working toward making your dream a reality. Any time you can put in now, and we highly recommend additional research wherever possible, will benefit you on the other side – from the first cup to that last drop.

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Write a business plan

Download free business plan templates and find help and advice on how to write your business plan.

Business plan templates

Download a free business plan template on The Prince’s Trust website.

You can also download a free cash flow forecast template or a business plan template on the Start Up Loans website to help you manage your finances.

Business plan examples

Read example business plans on the Bplans website.

How to write a business plan

Get detailed information about how to write a business plan on the Start Up Donut website.

Why you need a business plan

A business plan is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts.

A business plan helps you to:

• clarify your business idea
• spot potential problems
• set out your goals
• measure your progress

You’ll need a business plan if you want to secure investment or a loan from a bank. Read about the finance options available for businesses on the Business Finance Guide website.

It can also help to convince customers, suppliers and potential employees to support you.

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Cafe Business Plan Template

Written by Dave Lavinsky

Cafe Business Plan

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

Download our Ultimate Business Plan Template here >

What is a Cafe Business Plan?

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

Why You Need a Business Plan for a Cafe

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

Sources of Funding for Cafes

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

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

Finish Your Business Plan Today!

Your cafe business plan should include 10 sections as follows:

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

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

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Coffee Shop Business Plan

If you’re passionate about great tasting coffee and love serving people, then opening a coffee shop could be a great business venture for you. The coffee industry in the UK has grown dramatically over recent years, and shows no signs of slowing down, representing a great opportunity for coffee-loving entrepreneurs.

In the UK, we drink around 95 million cups of coffee every day , and café culture is big on the high street. 80% of people who visit coffee shops go on a weekly basis, and 16% get their caffeine fix on a daily basis.

Before you dive in and start dreaming about your coffee shop empire, the first step is to create a coffee shop business plan which will get you the funding and support you need to see your café business flourish.

We’ll guide you through each step of creating your own business plan, from planning your sales and marketing strategy, to understanding your ideal customer, to identifying your competitors. As a business owner there’s a lot to take on, but we’ll walk you through everything you need to know.

• Is opening a coffee shop for you?

How much does it cost to open a coffee shop in the UK?

What's included in our coffee shop business plan.

• Your free sample coffee shop business plan template

Summary and recap

Is opening a coffee shop right for you.

As we know, coffee shops are part of a growing market and represent an exciting opportunity for coffee shop owners. The coffee shop market in the UK is expected to hit a £15 billion turnover by 2025.

But the first question you need to ask yourself is: Is this the right business for me?

A business plan will give you clarity on your competitors and help you reach your ideal customers, and show how you can run a successful coffee shop.

You’ll need to consider things like:

• How many major coffee shop brands are in the area (Pret A Manger, Costa etc.)
• How many independent coffee shops are based nearby
• Any existing brand loyalty

Your start-up costs will depend on things like the kind of equipment you need to buy, how many staff you need and the size of your premises. Start-up costs generally run between £20,000 to £100,000 in the UK.

This may sound scary, but there are ways that you can save money. Leasing and buying second hand equipment is just one simple way to prevent overspending.

A business plan for your coffee shop will help you anticipate your costs and budget appropriately. We’ll help you work out how to raise capital for your business and take into account your current financial situation.

We’ll run through every step you’ll need to take to open your coffee shop. Remember, if you’re planning to secure funds from a bank it’s essential that the business plan for your coffee shop is as thorough as possible.

Included within our coffee shop business plan template, you’ll receive:

• A fully completed coffee shop business plan
• Break-even analysis (12-month analysis)
• Complete business plan guide
• Business plan template (.doc and .PDF)
• Financial planning wizard

Plus 25 ways to market your coffee shop for free!

Download now for only £29.95

Below, we’ll walk you through an example of a coffee shop business plan. Remember, this is only a guide. You should take the time to write a business plan for your coffee shop in much more detail.

When it comes to your café business, we really believe that you can’t over plan for your enterprise

Step 1: Executive summary

This is a short, snappy summary that grabs the readers attention and acts as your business pitch. You want a concise overview, not a novella. Investors hear hundreds of these pitches, so you’ll need to think about how to make yours stand out.

Three top tips for writing your executive summary:

• Keep it short and sweet. Under two pages is best
• Stick to positive, upbeat language
• Read it aloud to a friend. Does it flow well, and do they understand what you’re trying to say?

Use your executive summary as a chance to shout about what a great opportunity your coffee shop is and what sets you apart.

Step 2: Company overview

A company overview (or company summary) gives you the chance to introduce yourself, your business and any key stakeholders. This “meet and greet” will tell your readers who you are, what you do, and who your customers are.

Just like your executive summary, this should be short and punchy. Your reader needs to quickly grasp who you are and what you do.

Five key things to add to your company overview include:

• Company history, when your business started and why
• Key objectives and goals
• Your management team
• Your ideal customer or target market
• Basic company information, like the name and location

Another top tip for writing a company overview is to put yourself in your reader’s shoes: Why should they put their money into your coffee shop?

To answer this question, focus on areas you know will interest your potential investors.

You should consider:

• Your local community and local market
• Your unique selling point, what separates you from other coffeehouses?
• Opportunities for expansion (venue hire, loyalty programs, food options, etc)

Use this section of your business plan to show what you want to accomplish, but remember to keep it high-level. Don’t overload your reader with too many details.

Feel overwhelmed? Not sure where to start? Panic not. Download our coffee shop business plan for instant access.

Instant download for £29.95

Step 3: Management and key personnel

No man or woman is an island, and you’ll need the support of a great team to help make your coffee shop business a success. In this section you’ll detail your management team, staff and resources.

Three key items to include in your management and key personnel section:

• The ownership structure. Is it just you, a partnership or a corporation?
• Your management team. Who are they? What are their roles? And what’s their experience?
• Human resources. How are you going to find new staff once you’re up and running?

One more thing, it’s unlikely that your team will be working for free, so don’t forget to include details on things like salaries, benefits and pensions.

Step 4: External analysis (market research)

Before launching any business it’s vital that you know your market. This section will help you understand the threats and opportunities in your market.

You’ll need to get a grip on your competitors, your ideal customer and whether the market can support and sustain your business.

Let’s take a look at your ideal clients first.

Who’s going to visit your coffee shop?

Sketch out your target customer. Are they parents meeting after the local school run? Or busy office workers grabbing a quick espresso on the way to work? You need to know whose needs you are serving so that you can make a targeted offer.

Think about:

• How will you attract new customers?
• How will you keep them coming back?
• What makes you better than your competitors?
• How much will your coffee cost?

Next, you need to scope out the competition…

How many cafés are near you?

There are literally thousands of coffee shops across the country. As of 2019, there were 10,604 non-specialist outlets in the UK , up by 292 shops from 2018. So how will you stand out from your competitors?

• Who’s selling coffee in your area, and what do you know about them?
• How many coffee shops are close by? And how close are they?
• What is the average cost of a cup of coffee in your town, city or village?
• Is it easy to get to your coffee shop? Is there a lot of customer footfall nearby?

One top tip for writing this section of your business plan is to put yourself in your customer’s shoes. What do they need from your business? What is the problem that needs to be solved (e.g. they need a hot drink to set them up for the day). How do you solve that problem better than your competitors?

Step 5: Your business objectives

You need to think short-term and long-term here. Where do you want to be in a month or six months? A year or five years? And how will you get there?

In this section, list the specific steps you’ll need to take to achieve your objectives. You can keep track of your goals and objectives using the S.M.A.R.T criteria.

S.M.A.R.T goals are:

To help you determine your business objectives, here are some questions to ask yourself:

• Is my business targeting a niche market, or a broad one?
• What revenues do I expect to see in a year, or five years?
• How many customers should I have in six months?
• How will I build my market presence?

Demonstrate how you will woo clients to your coffee shop and establish a loyal customer base.

Step 6: Services, coffee equipment and amenities

Deciding what equipment you need to open your coffee shop will give your investors a clear idea of how much funding you need to get started.

Some of the initial things on your shopping list will include:

• Coffee machines, (like an espresso machine and a coffee roaster) fridges and dishwashers
• Coffee bean supplies, and any foods you make in-house or buy-in.
• Shelves and storage containers
• Seating and tables

The key here is to be realistic, and not overspend. Consider the size of your market and the needs of your customers before buying anything.

Additional services and amenities to think about:

• Takeaway services
• Delivery services

Step 7: Financial forecasting and financial projections.

Let’s get real here, your backers want to see cold, hard numbers, and feel confident that they will get a return on their investment. Spelling out your financial future can be tricky, but it’s an essential part of your business plan.

You’ll need to provide:

• Sales forecast
• Expense budget
• Cash-flow statement

When it comes to expenses, you’ll need to budget for things like:

• Purchase estimations
• Hiring costs
• Building/construction work

Don’t limit yourself to a single source of income. Obviously you’ll make money from selling your coffee, but consider how you can diversify your income.

Other forms of income from your coffee business could include:

• Selling food
• Renting out your space to groups
• Hosting local events

Remember, your financial forecast needs to be well-informed and attainable. But it doesn’t need to be 100% accurate. Things will likely change over the next few years and you’ll need to adapt. This plan will give your readers an idea of what you expect to happen in the future.

We’ve taken all of the hard work out of planning your finances for your coffee shop.

Download your coffee business plan template instantly below.

Instant download

Step 8: Funding

Now, you need to consider how you will secure funding for your business idea. Where is the money for your business coming from?

Are you funding your coffee shop with your own cash, or is the money coming from outside investment? Your backers will need to know exactly where the cash will come from, and how much you still need to raise.

You might already have funding in the form of:

• Personal loans
• Partners or sponsors
• Family/friends

You need to be clear to your investors about how much money you need, now and in the future. Detail how you’ll use any investment, such as paying for supplies or equipment, paying debts or hiring staff.

You’ll also need to balance your funding request between making sure you have enough to survive, but not more than is necessary. Ask for what you need, but don’t get greedy!

Your free sample coffee shop business plan

If you need an example of how a coffee business plan might look, we’ve pulled together a small Word template that you can use to get you started for your coffee business plan outline.

Included in this template, you’ll get:

• An example of your executive summary
• Products/services on offer
• Staff and management structure

Download.doc here

Launching your own business can be a nerve racking venture. The coffee shop market is a crowded place, but the good news for new business owners is that people love an independent coffee shop. Research has found that 7,022 independent cafés operate in the UK, with a value of around £2.4 billion.

By creating a well-thought out business plan you will get your business off the ground and help you to anticipate any future problems. A succinct business plan will show potential backers that you’re a solid investment and set you up for future success.

Download the Software

Full coffee shop business plan

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“I wanted ideas for the type of information that needed covering in a business plan, and this gave me a template for the document I submitted to the bank. The business loan we were after was approved. If you have never written a business plan before, then I would recommend your product. It was very straightforward and offered some good advice.”

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“I needed a business plan quickly. The template was easy to use, just fill in the blanks on the wizard and refer to the help guide if I wasn't sure. Your system is good value, and I would recommend them to everyone needing a plan. Attached is the basic plan I threw together in a day for the bank. They specifically wanted cash flow projections, and the Excel spreadsheets were really what I was after from your product.”

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COFFEE SHOP BUSINESS PLAN UK: Fresh Tips on How to WRITE a Coffee Shop Business Plan

• by Folakemi Adegbaju
• August 10, 2023
• No comments
• 8 minute read

Table of Contents Hide

How to start a coffee shop business, #1. the executive summary, #2. business description, #3. industry research, #4. marketing plan, #5. financial plan, #6. operations plan, #7. management plan, final thoughts, is owning a coffee shop profitable uk, do you need a licence to sell coffee in the uk, can i sell coffee on the street in the uk.

To secure the finance and support you need for your coffee business to succeed, it will be to your advantage to write a coffee shop business plan before you jump in and start daydreaming about it. A coffee business plan can serve as a road map for the expansion of your UK coffee business. Guess what? We’ve got a UK coffee shop business plan template just to make it easier for you!

Let’s start!

UK Coffee Shop Business

Coffee businesses, unlike restaurants, rely on foot traffic and frequently serve office workers during the week and bustling shoppers during the weekends. This implies there is less of a need to develop a truly original concept, yet it is still important to choose a strategy that makes your coffee shop stand out from the competition.

Coffee business ideas typically fall into one of two categories: either they are places to hang out for an hour or two, or they are quick and convenient for consumers on the go. With artisanal coffee becoming a major trend for independent coffee shops, the quality of your coffee can help set you apart from the competition. More repeat consumers will come to you if your coffee is better tasting. Utilizing specialty brews and high-quality beans can give your coffee establishment a clear advantage.

Starting a coffee shop business comes with a lot of tasks and some confusion about how to get started. Here are some steps you can follow to build up that empire, i.e., your own coffee shop, that you’ve always dreamed of:

#1. Study Your Coffee Competitors

The UK is a city where people take coffee more often than they take water. Because of this, coffee shops tend to be a lucrative kind of business in the UK, hence the reason the market is full of competitors. You should research the coffee industry before you start brewing coffee for your consumers. Analyze your competitors and find inspiration from the proprietors of independent coffee shops by reading their biographies. This is especially crucial if you are new to the business.

#2. Hiring Staff and Training

You can choose the staff members you need to hire and who should be hired first by considering the size and objectives of your coffee business.

Of course, you have baristas and chefs/cooks on staff, but your team may also include people in administrative, marketing, and accounting positions, to mention a few. Your manager and a marketing expert should be hired first if you are recruiting them.

#3. Location

When deciding how to open a coffee business, your choice of location will be the most important one. The two most important criteria you should look at while evaluating potential sites are location and size. Therefore, it might be worthwhile to choose a coffee location in a bustling urban area with lots of foot traffic. Even with a strong earning potential, a shopping mall may not be the best choice because the expensive rent may not be covered. If less obvious areas have good visibility, don’t ignore them. Future potential income from developing areas could be significant.

Don’t restrict yourself to regular coffee shops. Sometimes it can be wiser to invest in a coffee truck near a train station than a coffee shop on the main drag.

#4. Buy Equipment

There are a few commercial coffee machines that are appropriate for a coffee shop, but if you want to provide your customers with the best coffee possible, you should think about investing in an espresso machine . Also, the price and functionality of the espresso machine you want to buy should be taken into consideration. Consider how many people you’ll be serving coffee to each day, and make sure you have the capacity to do it promptly.

For the start of your coffee business, renting or leasing a coffee machine may be an option if your budget is tight and you cannot afford to buy a machine entirely.

#4. Write a Solid Business Plan 

You can use a coffee shop business plan as a tool to organize and rank the plans and costs for your coffee business in the UK. A coffee shop business plan in the UK is also necessary if you intend to apply for a loan or recruit investors.

We have a coffee business plan template in the UK compiled to put you through. The following are found in the coffee shop business plan template UK we’ve created for you:

• An executive summary 
• The business structure overview
• market analysis
• Competitor plan
• market plan 
• A financial plan 
• An operating plan 
• management strategy 

This coffee business plantemplate in thee UK will help you when creating your own business plan.

Download the Coffee shop business plan template

Depending on the size of your UK coffee business, a coffee shop business plan may be a few or even hundreds of pages.

#5. Financing Your Coffee Business

These things cost money: facilities, tools, personnel. Fortunately, if you’re just establishing a firm and need to raise cash, there are a variety of solutions available. While many people start their businesses with money they have saved or borrowed from family members, there are a number of alternative options.

Despite the tremendous success of Costa and other chains, coffee shops are not the type of firm to start up if you’re anticipating a rapid multi-million-pound exit. Even if you open several locations, your profit margins will be appreciable. Even then, your startup costs will be high. If you’re feeling especially ambitious, it might be worthwhile to see if you can obtain a company loan to aid with your launch.

#6. Regulation

There is currently no law requiring formal training in order to start a coffee business. However, it is your responsibility to make sure that you and everyone else dealing with food in your establishment are properly trained and/or supervised. The business owner is legally responsible, so be sure you have all the information you require.

You’ll need to be knowledgeable about the fundamentals of food preparation. Furthermore, the government has delegated control of all food safety regulations to the Food Standards Agency (FSA). The FSA can give you guidance on all food hygiene issues that can assist you in staying within the law and making your establishment safe for visitors.

Coffee Shop Business Plan UK

A coffee shop business plan describes your business idea and how it will be successful. It provides answers to queries like how much it will cost to open a business, how those costs will cover it, and how much revenue you anticipate from your café. A coffee business plan includes information about your competition, target market, and price structure. Here is a business plan template for your UK coffee business to put you through the process of writing yours!

The executive summary will be the first thing a reader sees when they open your UK coffee shop business plan. This also provides a general summary of every section in your business plan. A strong executive summary will open doors for you.

Also, consider who will read your UK coffee shop business plan and write the introductory paragraphs with that audience in mind, just like you did when thinking about the consumers who will visit your soon-to-be-opened coffee shop. Your executive summary is the most significant marketing tool your coffee business has as you are ready to begin.

It’s important to give a thorough description of your company, including specifics like how the concept will look, where it will be located, and the type of atmosphere or brand you plan to establish. Your company’s description paints an accurate image of your mission and objectives.

This entails gathering in-depth information about a nearby coffee shop, its average foot traffic, break-even points, and other important insights that can help you run your own coffee business successfully. Also, write out how your own coffee shop is going to be different.

Your marketing plan may be a section of your marketing strategy or it may be included separately. Will you post about your daily specials on social media? Will you collaborate with a different local company to run special promotions? This is a wonderful place to highlight your strategies for customer retention in addition to marketing. Are you going to provide loyalty programs or ask your staff to send your best clients a free cookie on their birthday? It’s simpler than ever to reward and keep the consumers who will frequently visit your coffee shop with a cafe point-of-sale system.

Create a financial plan for your coffee business. This component of your coffee business plan is typically the longest and most crucial, especially for lenders and investors. A summary of your start-up expenses, an income statement, anticipated cash flow, a balance sheet, and a break-even analysis should all be included. Keep in mind that your financial forecast must be accurate and realistic. However, it is not required to be entirely exact. Over the coming years, things will probably change, and you’ll need to adjust. Your viewers will be able to see what you anticipate will happen in the future thanks to this strategy.

The success of your coffee business depends on a solid operations plan. This needs to contain all the components necessary for you to operate your coffee shop successfully every day. You’ll include details on your workplace, personnel, tools, and supplies. Consider the up-front costs of housing, barista salaries, food items like coffee, and technology. Try to squeeze as many functions as you can out of a single instrument, it also entails the following:

• Hiring The Right Staff: This is essential to making and serving the coffee business. All potential avenues for finding suitable staff should be covered in a thorough hiring plan, including recruiters, employee recommendations, advertising in newspapers, job sites, or on other social media platforms.
• Training The Employees:  The most important duty after hiring the right people is to train them. For your personnel to follow, develop Standard Operating Procedures (SOPs) and a training manual. Techniques for managing crises and disasters must be included in the training.

You’ll need the help of a strong team to make your coffee business successful because no man or woman is an entity. You will describe your management group, personnel, and resources in this area.

There are some questions you need to add to the section of your management plan to make it more meaningful, they are:

• the arrangement of ownership. Do you work alone, in a partnership, or for a company?
• your executive staff. They, who? What is their function? And what is their background?
• people resources. Once you’re operating, how will you hire additional employees?

Another thing to remember is that it’s doubtful that your crew would labor for nothing, so be sure to include information on things like salary, benefits, and pensions.

Starting your own coffee business can be a nerve-wracking endeavor. The market for coffee shops is competitive, but the good news for startup business entrepreneurs is that customers adore independent coffee shops. This is where a  coffee business plan is needed to ensure you have a productive result.

You may also launch your own coffee business and prepare for potential challenges by writing a well-thought-out coffee business plan. A brief business plan will position you for success by demonstrating to potential investors that you are a sound investment. We are here to help you out with our well-detailed coffee shop business plan !

Due to their large profit margin and low cost of inventory, coffee businesses are very profitable. You can guarantee the success of your coffee business with good cost management.

Through the UK government website, which points you to information about your local council, you can register as a food business. There are no refusals and it is free to do, but you should register at least 28 days before the opening. No matter how you choose to sell your coffee, you must first register.

You must submit an application for a street trading permit. If you want to operate your coffee cart in a city centre rather than a suburb or town, you must do this. In your application, it’s important to identify any particular locations you have in mind.

Related Articles

• FOOD BUSINESS: Starting A Food Business From Home UK
• CAFE BUSINESS PLAN: How to Write With Templates & All You Need

FOOD BUSINESS PLAN: How To Go About Setting Up a Food Business Plan

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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 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

Free Simple Business Plan Template

Our experts

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Your business plan is the document that adds structure to your proposal and helps you focus your objectives on an achievable and realistic target. It should cover every aspect of what your business journey will look like, from licensing and revenue, to competitor and sector analysis.

Writing a business plan doesn’t need to be a difficult process, but it should take at least a month to be done properly.

In today’s capricious business climate there’s a lot to consider, such as the impact of political challenges like Brexit. These details are especially important in today’s bad economy. Investors are looking for entrepreneurs who are aware of the challenges ahead and how to properly plan for them.

Below, you’ll find everything you need to create a concise, specific and authoritative business plan. So let’s get started turning your idea into a reality!

Click here to download your free Business Plan template PDF – you can fill in your own details and those of your business, its target market, your customers, competitors and your vision for growth.

Our below guide will give you detailed advice on how to write a quality business plan, and our PDF download above can give you a clear template to work through.

But, creating an effective business plan needs….planning! That’s where a high quality planning tool can help.

We recommend creating an account with monday to use this tool – there’s even a free trial . Doing so means you can start your entrepreneurial journey on the right foot.

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What to include in your business plan template

There’s a lot of information online about how to write a business plan – making it a confusing task to work out what is and isn’t good advice.

We’re here to cut through the noise by telling you exactly what you need to include for a business plan that will satisfy stakeholders and help develop a key identity for your brand. By the end, you’ll have a plan to make even Alan Sugar proud and can get started with the most exciting part – running your business.

Throughout this guide, we’ve featured an example business plan template for a new restaurant opening in Birmingham called ‘The Plew’. In each section, you’ll be able to see what the contents we’re describing would look like in a ‘real-life’ document.

What to include in your business plan:

• Executive Summary
• Personal summary
• Business idea
• Your product or service
• Market analysis
• Competitor analysis
• Cash forecast
• Operations and logistics
• Backup plan
• Top tips for writing a business plan
• Business plan template UK FAQs

1. Executive summary

This section is a summary of your entire business plan. Because of this, it is a good idea to write it at the end of your plan, not the beginning.

Just as with the overall business plan, the executive summary should be clearly written and powerfully persuasive, yet it should balance sales talk with realism in order to be convincing. It should be no more than 1,000 words.

It should cover:

• Mission statement  – what is your company’s purpose?
• Business idea and opportunity – what unique selling point (USP) will you provide?
• Business model – how will your business operate?
• Business objectives – what are you aiming to achieve?
• Target market – who is your customer base?
• Management team – who are the owners/senior staff?
• Competition – who are you competing against?
• Financial summary – can you prove the business will be profitable?
• Marketing strategy – what is your marketing plan and associated costs?
• Timeline – how long will it take to launch/grow your new business?

It sounds like a lot – but don’t feel you have to spend hours putting this together. Here’s what the above information for an executive summary might look like when put into our example business plan template for ‘The Plew’:

Startups’ business plan template example: executive summary

2. Personal summary

Investors want to know who they’re investing in, as much as what. This is where you tell people who you are, and why you’re starting your business.

Outline your general contact details first, giving your telephone number, email address, website or portfolio, and any professional social media profiles you might have.

Run through this checklist to tell the reader more about yourself, and put your business ambitions into context.

• What skills/qualifications do you have?
• What are you passionate about?
• What is/are your area(s) of industry expertise?
• Why do you want to run your own business?

Here’s what our two fictional co-founders of ‘The Plew’ might write in their personal summaries for our example business plan. CEO Gabrielle Shelby, has highlighted her expertise in the restaurant industry, while CFO Freya Moore outlines her accounting and finance knowledge.

Startups’ business plan template example: personal summary

Richard Osborne, founder and CEO of UK Business Forums, says personality is important in a business plan.

“Having a strong, personal reason at the heart of your business model will help keep you going and give you the motivation to carry on,” he affirms.

3. Business idea

This section is essentially to offer a general outline of what your business idea is, and why it brings something new to the market.

Here, you should include your general company details, such as your business name and a  one-line summary of your business idea known as an  elevator pitch. This section should also list a few key business objectives to show how you plan to scale over the next 1-3 years.

We also recommend carrying out a SWOT analysis to tell investors what the strengths, weaknesses, opportunities, and threats are for your business idea. Think about:

• Strengths: ie. why is this a good time to enter the sector?
• Weaknesses: ie. what market challenges might you encounter?
• Opportunities: ie. what demand is your product/service meeting in today’s market?
• Threats: ie. how will the business be financed to maintain liquidity?

In the template below, you can see a breakdown of the above information for ‘The Plew’. At the top is its mission statement: “to craft an unforgettable dining experience in a chic atmosphere.”

Startups’ business plan template example: business idea

Need a business idea? We’ve crunched the numbers and come up with a list of the best business ideas for startup success in 2023 based on today’s most popular and growing industries.

4. Your products or services

Now it’s time to explain what you are selling to customers and how will you produce your sales offering.

Use this section to answer all of the below questions and explain what you plan to sell and how. Just like your business idea outline, your answers should be concise and declarative.

• What product(s) or service(s) will you sell?
• Do you plan to offer new products or services in the future?
• How much does the product or service cost to produce/deliver?
• What is your pricing strategy ?
• What sales channels will you use?
• Are there legal requirements to start this business?
• What about insurance requirements?
• What is the growth potential for the product or service?
• What are the challenges? eg. if you’re looking to sell abroad, acknowledge the potential delays caused by post-Brexit regulations.

What insurance and licensing requirements do you need to consider?

Depending on what your business offers, you might need to invest in insurance or licensing. Our How To Start guides have more details about sector-specific insurance or licensing.

Public Liability, Professional Indemnity, and Employers’ Liability are the most well-known types of business insurance. We’ve listed some other common other licensing and insurance requirements below:

In our example product/service page for ‘The Plew”s business plan, the founders choose to separate this information into multiple pages. Below, they outline their cost and pricing, as well as sales strategy. But they also include an example menu, to offer something a bit more unique and tantalising to the reader:

Startups’ business plan template example: product list and pricing strategy

5. Market analysis

This section demonstrates your understanding of the market you are entering, and any challenges you will likely face when trying to establish your company.

This section pulls all of your target market and customer research together to indicate to stakeholders that you are knowledgable about the sector and how to succeed in it.

• Who is your typical customer and where are they are based? Describe the profile of your expected customers eg. average age, location, budget, interests, etc.
• How many customers will your business reach? Outline the size of your market, and the share of the market that your business can reach.
• Have you sold any products/services to customers already? If yes, describe these sales. If no, have people expressed interest in buying your products or services?
• What have you learned about the market from desk-based research? What are the industry’s current challenges, and how has it been affected by the economic downturn?
• What have you learned about the market from field research? (eg. feedback from market testing like customer questionnaires or focus group feedback).

What is your marketing strategy?

Once you’ve highlighted who your rivals are in the market, you can provide details on how you plan to stand out from them through your marketing strategy. Outline your  business’ USP, your current marketing strategy, and any associated advertising costs.

‘The Plew’ identifies its target audience as young, adventurous people in their mid-30s. Because of the restaurant’s premium service offering, its audience works in a well-paid sector like tech:

Startups’ business plan template example: customer analysis

6. Competitor analysis

This section demonstrates how well you know the key players and rivals in the industry. It should show the research you have carried out in a table format.

Begin by listing the key information about your competitors. Don’t worry about sounding too critical, or too positive. Try to prioritise accuracy above all else.

• Business size
• Product/service offering
• Sales channels
• Strengths/weaknesses

Competitors will take two forms, either direct  or  indirect. Direct competitors sell the same or similar products or services. Indirect competitors sell substitute or alternative products or services.

Here’s a breakdown of the strengths, weaknesses, and opportunities, and threats presented by a competitor restaurant for ‘The Plew’ called Eateria 24. At the bottom, the founders have written what learnings they can take from the chart.

Startups’ business plan template example: competitor analysis

Check out our list of the top competitor analysis templates to download free resources for your business, plus advice on what to include and how to get started.

7. Cash forecast

Outline your financial outlook including how much you expect to spend, and make, in your first year

All of your considered costs can be put into one easy-to-read document called a monthly cash forecast. Cash forecasts contain:

1. Incoming costs such as sales revenue, customer account fees, or funding.

2. Outgoing costs such as staff wages or operating expenses. The latter can cover everything from advertising costs to office supplies.

For those firms which have already started trading, include any previous year’s accounts (up to three years) as well as details of any outstanding loans or assets.

Annual cash forecast: what is it?

By conducting 12 monthly cash forecasts, you can create an annual cash forecast to work out when your company will become profitable (also known as breakeven analysis) . You will break even when total incoming costs = total outgoing costs.

In your annual cost budget, make sure to also include month opening/closing balance.  This is important to monitor for accounting, particularly for year-end.

• Opening balance = the amount of cash at the beginning of the month
• Closing balance = the amount of cash at the end of the month

The opening balance of any month will always be the same as the closing balance of the previous month. If you are repeatedly opening months with a negative closing balance, you need to adjust your spending. Here’s an example of what ‘The Plew’s financials might look like in its first year of operation:

Startups’ business plan template example: cash forecast

8. Operations and logistics

Explain how your day-to-day business activities will be run, including key business partnerships around production and delivery.

A.) Production

List all of the behind the scenes information about how your business will operate. Include:

• Management team – who do you plan to hire as senior staff and why?
• Premises –  where will you be based? What will be the cost?
• Materials –  what materials/equipment will you need to make your product/service?
• Staffing –  how many employees will you hire? How much will they cost?
• Insurance – what insurance do you need for production?

B.) Delivery

Detail how your customers will receive your product or service. Include:

• Distribution –  how will you sell your product to customers?
• Transport –  how will you transport the product/service to customers or partners?
• Insurance –  what insurance do you need for delivery?

C.) Supplier analysis

Lastly, you should carry out a supplier analysis.  Write down 2-3 suppliers you plan to use as part of your business operations and evaluate them on factors like location and pricing.

In our example business plan for ‘The Plew’, the founders have chosen to present this information in an easily-digestible chart, breaking down the leadership and employees into two different areas: product development and operations.

Startups’ business plan template example: staffing section

9. Backup plan

Explain how you will manage any surprise losses if your cash forecast does not go to plan.

In the event that your business does not go to plan, there will be costs to incur. A backup plan outlines to potential investors how you will pay back any outstanding loans or debt.

In the short-term: 

If your cash-flow temporarily stalls, what steps could you take to quickly raise money or make savings? For example, by negotiating shorter payment terms with your customers.

In the long-term:

If you’ve noticed a drop in sales that seems to be persisting, what changes can you make that would improve cash flow longer term? For example, can you do more of your business online to reduce rent fees?

To placate investors even further, it’s a good idea to include details about potential support channels you can utilise (eg. a business network or contact) who might be able to help if you get caught in a sticky cash-flow situation.

Startups’ 5 top tips for writing a business plan

• Keep your predictions realistic. Your business plan should showcase your knowledge of the sector and what’s achievable. It’s not about impressing investors with big numbers or meaningless buzzwords.
• Don’t go over 15 pages. Business plans should be engaging, which means sticking to the point and avoiding a lot of long-winded sentences. Keep your executive summary to less than 1,000 words, for example.
• End with supporting documents. Use your appendix to include product diagrams or detailed research findings if these are helpful to your business case.
• Get a second pair of eyes. Everyone misses a spelling error or two – invite a trusted business contact or associate to look over your business plan before you send it anywhere.
• Leave enough time to write! It’s exciting to think about getting your business up and running – but planning is an important step that can’t be rushed over. Spend at least a month on writing to get all the details correct and laid-out.

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

What Does Your Business Need Help With?

Designing a business plan is very important for laying the foundation of your business. Ensure you spend an appropriate amount of time filling it out, as it could save you many headaches further down the line.

Once your plan is complete, you’ll then be ready to look at other aspects of business set-up, such as registering your company. Sound daunting? Don’t worry!

Our experts have pulled together a simple, comprehensive guide on How to Start a Business in 2024, which will tell you everything you need to know to put your new plan into action.

• Can I write a business plan myself? Absolutely! There are plenty of resources available to help, but the truth is a business plan needs to reflect the owner's personal ambitions and passion - which is why entrepreneurs are best-placed to write their own.
• How long should a business plan be? We recommend your business plan is kept to a maximum of 15 pages. Keep it short and concise - your executive summary, for example, should be no more than 1,000 words.
• Is it OK to copy a business plan? While not technically illegal, copying a business plan will leave you in a poor position to attract investment. Customising your plan to your unique business idea and industry specialism is the best way to persuade stakeholders that you have a winning startup formula.

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Cafe Business Plan

If you're looking to secure finance for your cafe business, then you'll need a robust business plan.

Every lender requires a business plan from you and the Business Plan Academy has made this task quick and easy for you. Through our 20 years business planning experience, we've worked with many banks and perfected the 18-page cafe business planning system.

At the heart of this system is an already completed cafe business plan with every section your lender requires already completed.

Simply enter your own business data to tailor the narrative to your business. Then use the "Financial Forecasting Wizard" to create all your financial plans.

The Benefits of This System

• Specific for a cafe business.
• Every section already complete.
• Easy to tailor to your own business.
• Specially formatted for banks.
• Hundreds of examples to help your own thinking.
• No special software required (uses Microsoft Word).
• Downloadable online so you can start immediately.
• Saves you time as you can start from a completed plan.
• Guaranteed to get you finance - or your money back.

Business Plan Contents

• Executive Summary
• Description of Business
• Product Summary
• Business Strategy
• Financial Summary
• Market Research
• Market Trends
• External Research
• Market Estimates
• Management Team
• Business Location
• Business Organisation
• SWOT Analysis
• Competitive Analysis
• Customer Segments
• Customer Demographics
• Sales Strategy
• Pricing Strategy
• Marketing Plan
• Advertising Plan
• Objectives & Plans
• Resource Allocation
• Budget Allocation
• Startup Budget
• Forecast Profit & Loss Account
• Forecast Balance Sheet
• Forecast Cash Flow
• Sales & Profit Forecasts
• Sales Charts & Graphs
• Bank Preferred Format
• Suitable For PC and Mac

Additional Guides Also Included

The cafe business plan also comes with the following comprehensive business planning tools at no additional cost to you:

Fast-track Business Plan Guide

This step-by-step guide takes you through every element required for your plan. It includes over 250 examples to make completing your business plan a simple task.

Business Plan Template

You can choose to edit the sample cafe business plan directly or use this template to add in your details. The template structures your information into the correct format for final preparation.

Financial Forecasting Wizard

Completing financial statements is one of the hardest things to do. Therefore, you'll receive the Financial Forecasting Wizard. This interactive spreadsheet model automatically calculates your Profit & Loss, Cash Flow, and Balance Sheet from your base business data.

Free Online Support

With your business plan, you receive unlimited access to our online business community. Here you can make partnerships, discover new ideas, discusss joint ventures or get immediate solutions to any challenge you may face.

100% No-Risk, 90-Day Money-back Guarantee

We're confident that this Cafe Business Planning System will enable you to quickly complete a robust business plan for your business. We also guarantee it will secure the finance you require, or we'll refund your purchase in full within 90 days.

How To Download

The complete system is only £29.95 including VAT.

As you are ordering over the internet, you can order and download 24 hours a day. You can select the secure servers or Worldpay or Paypal to process your order.

Click here to download The Cafe business plan and business planning tools

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Coffee shop business plan template – 13+ free word, excel, pdf format download.

Whether an entrepreneur or a community, running a successful café or a coffee shop may be a great milestone achievement. A coffee shop is renowned to be an ambiance of comfort, dispensing interactive platform for family and friends, while at the same time, a serene place to relax with your novel. To succeed here, you will need a Coffee Shop Business Plan. The business plan outline , whether written in word, excel or pdf should be accurate for use.

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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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Cafe Small Business Idea and Business Plan

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To start a Cafe business in the UK, take the time and explain the idea via a business plan.

Understanding all of the aspects of the business idea will be the key to getting the Cafe business running like a well-oiled machine. The business plan you develop will help you organize the elements needed into a strategy that you can actually use to startup, by paving a clear road map as to what you need to follow for the lifespan of your business.

Starting a Cafe business isn’t easy, but when done right, it can lead to a lot of success.

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Create your own Cafe business plan for free using the Business Plan Builder

The free business plan template builder is divided into a few easy to follow steps.

The free business plan builder template is provided by UKStartups.org to help you develop your own business plan. For step by step guidance, see the 5 steps below.

Once completed, the result will be a clean, professional plan that will help you start your own Cafe small business in the UK.

When you have completed your Cafe business plan, the next step will be to find available funding that will help, or to speak with a funding adviser who will assist you each step of the way to securing the needed funds to make your Cafe business startup.

If you are looking to limit your startup costs when starting up a Cafe small business in the UK, this free business plan builder tool will be it.

Starting a Cafe business is only one of the ways others have used this free business plan tool. There are hundreds of different ideas you can start, and if you need guidance, do reach out to a UKStartups expert to get the needed assistance and guidance.

Step 1. Your business information

To develop a proper Cafe business plan with the free business plan builder template, it is important to answer each of the questions about your business to the best of your abilities.

What is your business? What are the products/services you provide? Who are your customers? What are your goals…etc?

Having a clear explanation will help you create a in-depth business plan that you can actually use to start the Cafe business and to apply for needed funding to cover your startup costs.

Step 2. Projecting your revenues/income

The Cafe industry can have great results. Planning and projecting the financial figures to approximate what you will make each year is crucial to building a strong business plan.

What do you think your business will make from each of its products/services? Simply list your products/services, enter the appropriate financial figures (costs and expenses).

If you don’t have the figures, in many cases it is recommended to do a a bit more research on other Cafe businesses locally and within your own region to get an idea of potential revenue. You can do your best to estimate the figures and growth potential.

If you need assistance in projecting, you can always contact UK Startups funding experts for the help.

Step 3. Your business market

As a Cafe business, having a clear explanation of the market and industry that you are in will help you plan for the figure and will ensure you can take the business to the next level.

Explain your location of business, share specifics about your customers, showcase your competition and explain the advantages you have over your competition.

Step 4. The future plan

Starting your own Cafe business and getting it off the ground is important to you.

No matter if you’re planning on applying for government funding for your Cafe business or not, it is important to plan out the future and provide an explanation of how you will grow the business. This means explaining your marketing plan, your sales strategy and clearly outlining a growth plan for the next few years.

Be sure to break this down step by step to show how you intend on making sure your Cafe business can grow each year.

Keep in mind that often business plans are focused on key people. Be sure to discuss yourself, your role and any other key figures in the business as well.

Step 5. The financials

In the end, it all comes down to the financials. If you are seeking funding, or not – the business plan you develop needs to have clearly defined financials or projections. The business plan builder tool makes it easy to develop your financial charts by simply entering your expected revenues per month and year. If you don’t have the figures as it’s a new business be sure to project the figures based on your expectations. If you need help with this, ask the UK Startups experts .

A clear breakdown of your funding needs is also recommended in case you are seeking funding and this free business plan template will help you with exactly that. When developing your Cafe business plan using this free template, the above 5 steps are recommended in order to succeed. While there are other key points that will assist you in starting your business, finding funding...etc, the free template will help put you on the right path

Be sure to request a professional to review your business plan , to answer any questions you may have and to help you with the funding search once you’ve done the initial free template. You can request this directly via UKStartups.org and through the Small Business Startup Platform as a member.

If starting a Cafe business is just one of your ideas, perhaps considering other options, here are some popular small business’s others have chosen to startup

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