Cafes are institutions specializing in the preparation of coffee beverages and tea. They also offer an assortment of pastries. As a rule, the cafes have a limited assortment. It should be noted that those institutions will be the most successful which have a unique assortment of cakes, because coffee in all cafes is almost identical.
Opening a coffee shop is considered a pretty profitable business. Unlike a bar or a restaurant, this establishment does not require any special equipment except for the coffee machines. Baking can be made outside the coffee shop, it may be delivered every morning by one or more suppliers. Because of this, coffee shops can not have a large check. Its average size should be about 5-6 dollars per set of coffee and cakes.
High competition and easy fail on the market have always been the main problems for this business. People are constantly interested in new cafes and return to the old ones in case they did not like the new cafes.
Strengths and weaknesses of the coffee shop
- high profitability under proper management
- short payback period
- ability to create new niches
- dependence of the service quality on the staff performance
- number of customers depend on the suppliers of baking
- serious impact of new players representing a new concept on the market
PR and advertising
People have always been curious to visit new places. That is why the main emphasis in the development of a marketing company should be put on making the customers return again. That is it’s necessary to focus on a cosiness inside the café or on a personal approach, which in general exert a moderate impact on the marketing budget.
How to prepare a business plan of a café in Excel
In order to predict how much money is needed to open a cafe, you need to think about an assortment that can create a serious competition for the existing players for at least a few months. To do this, you should choose the best option among the available suppliers and arrange a delivery of the products on a regular basis and check its freshness as well.
Renting a room will be your major expense. However, if the premises are someone’s property, they will transfer their cost to the price during ten years. The average number of clients per day in a café should not exceed a hundres visitors, because otherwise the cafe loses its atmosphere and should play according to the rules of the big business. One coffee machine can prepare coffee considering a maximum load of 100 clients a day.
Download our sample of a café business plan in Excel that does not require significant initial investments and has a payback period of one year. Of course, you can design your own business scenario using the existing template.