A coffee shop business plan can help you get your business off the ground by laying out a detailed plan for starting a new, expanding your current, or buying an existing coffee shop.
As one of the world’s favourite beverages and major sources of caffeine for many consumers, coffee continues to play an integral role in the daily routine of South African society, and coffee consumption continues to witness strong growth nationally. The country’s unique culture and innovative trends have carved a successful niche in the global market.
Worldwide, including in South Africa, the coffee industry has become a landscape where a modern way of living and a new way of doing business, along with a growing number of coffee enthusiasts, create an increasing demand for good coffee and branded lifestyle coffee destinations.
Furthermore, the so-called “new normal” created by the Covid-19 pandemic, now applies in the workplace, with large numbers of corporate employees nowadays routinely working from home. In South Africa this new workplace reality created a demand with those who work remotely to also have a workspace nearby, other than the home office from where they can work for shorter periods of time.
Highlights of the Coffee Sector
•Revenue in the Coffee segment amounts to US$709.80m in 2023. The market is expected to grow annually by 2.75% (CAGR 2023-2025).
•In global comparison, most revenue is generated in the United States (US$95,580.00m in 2023).
•In relation to total population figures, per person revenues of US$11.55 are generated in 2023.
•By 2025, 56% of spending and 10% of volume consumption in the Coffee segment will be attributable to out-of-home consumption (e.g., in bars and restaurants).
•In the Coffee segment, volume is expected to amount to 21.2mkg by 2025. The market for Coffee segment is expected to show a volume growth of 1.2% in 2024.
•The average volume per person in the Coffee segment is expected to amount to 0.34kg in 2023.
Key Components of a comprehensive Coffee Shop Business Plan include:
Executive summary: It should provide a concise overview of your business plan. Include key ownership information, the amount and reason for the funding or grant request, as well as, the business’s goals and objectives.
Business/industry overview: Provide an overview of the coffee industry, the local market, and what makes your business unique.
Market analysis and the competition: Demonstrate that you have thoroughly analysed the target market and that there is enough demand for your products to make your coffee business viable. The competitive analysis includes an assessment of the competition and how your coffee shop will compete in the sector.
Sales and marketing plan: Describe how you intend to draw customers to your coffee shop, including advertising, promotion, pricing strategy, sales, and service.
Ownership and management plan: This section includes the legal structure, ownership, and the management and staffing plan.
Operational plan: Includes action items and milestones that needs to be completed to execute your strategic plan. Outline the team’s responsibilities, business premises or retail space, equipment, inventory, supply needs, and labour. For a coffee shop that requires custom facilities, supply chains, specialised equipment and multiple employees.
Financial plan: The financial plan demonstrates that your business will grow and be profitable.
Financial projections: Includes the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortisation schedule, and fixed asset schedule of the business. Ratios, graphs, and calculations are included.
Annexures: Statutory information funders require in an application. DTC will provide the required list.
At DTC…
We understand the criteria and requirements for a custom and accurate business plan. Whether the document is used to raise funds and/or non-repayable business grants, we guide you through the process. We provide you with access to our network of funders across the country.
For more information & assistance with your Coffee Shop Business Plan – Contact us