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Coffee Kiosk Business Plan

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The Daily Perc

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.

There are many different kinds of coffees and caffeinated specialty drinks that go along with the snacks that we serve. Some people like dark bold coffee, some people like sweet weak coffee. Some prefer green tea. People have traveled the globe and experienced lots of different cuisines so it’s easy to figure out what they like and what they don’t. We offer something for everyone.

The Daily Perc offers its patrons the finest hot and cold beverages, specializing in specialty coffees, blended teas, and other custom drinks. In addition, TDP will offer soft drinks, fresh-baked pastries, and other confections. Seasonally, TDP will add beverages such as hot apple cider, hot chocolate, frozen coffees, and more.

The United States is a very mobile society. With the introduction of the automobile, we became a nation that thrived on the further freedom of going where we wanted when we wanted. It has only gotten worse. There are over 250 million men, women, and children in America, half of whom are too old, too young, or too poor to drive an automobile. Yet, there are more licensed vehicles in the country than people. And that mobility has created a unique need in our society.

Our market is made up of consumers who have busy schedules, a desire for quality, and disposable income. As much as they would like the opportunity to sit in an upscale coffee house and sip a uniquely blended coffee beverage and read the morning paper, they don’t have the time. However, they still have the desire for the uniquely blended beverage as they hurry through their busy lives.

Competition

There are four general competitors in The Daily Perc’s drive-thru market. They are the national specialty beverage chains, such as Starbucks and Panera, local coffee houses–or cafes–with an established clientele and a quality product, fast food restaurants, and convenience stores. There is a dramatic distinction among the patrons of each of these outlets.

Patrons to a Starbucks, or to one of the local cafes, are looking for the “experience” of the coffee house. They want the ability to “design” their coffee, smell the fresh pastry, listen to the soothing Italian music, and read the local paper or visit with an acquaintance. It is a relaxing, slow paced environment.

Patrons of the fast food restaurants or the convenience stores are just the opposite. They have no time for idle chatter and are willing to overpay for whatever beverage the machine can spit out, as long as it’s quick. They pay for their gas and they are back on the road to work. Although they have the desire and good taste to know good from bad, time is more valuable to them.

Competitors to the Mobile Cafes on campuses would include fast food restaurants–assuming they are close enough to the consumer that they can get there and back in the minimal allotted time, vending machines, and company or school cafeterias. The consumers in this environment are looking for a quick, convenient, fairly priced, quality refreshment that will allow them to purchase the product and return to work, class, or other activity.

Competitors to the Mobile Cafes at events such as festivals and fairs would include all the other vendors who are licensed to sell refreshments. Attendees to such events expect to pay a premium price for a quality product.

Expectations

The Daily Perc’s financial picture is quite promising. Since TDP is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and TDP recognizes that a higher level of talent is required. The financial investment in its employees will be one of the greatest differentiators between it and TDP’s competition. For the purpose of this pro-forma plan, the facilities and equipment are financed. These items are capital expenditures and will be available for financing. There will be a minimum of inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur.

The Daily Perc anticipates the initial combination of investments and long-term financing to carry it without the need for any additional equity or debt investment, beyond the purchase of equipment or facilities. This will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially sound growth based on customer request and product demand.

Financial Highlights by Year

Financing needed.

Planned Investment

Partner 1 $20,000

Partner 2 $20,000

Partner 3 $20,000

Partner 4 $20,000

Partner 5 $20,000

Partner 6 $20,000

Partner 7 $20,200

Partner 8 $20,250

Partner 9 $20,250

Partner 10 $21,250

Totaling $221,950

Problem & Solution

Problem worth solving.

There are many different kinds of coffees and caffeinated specialty drinks that go along with the snacks that we serve. Some people like dark bold coffee, some people like sweet weak coffee. Some prefer green tea. People have traveled the globe and experienced lots of different cuisine so its easy to figure out what they like and what they don’t. We offer something for everyone. 

Our Solution

The Daily Perc is a specialty beverage retailer. TDP uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time-efficient way. TDP provides its customers the ability to drive up and order from a trained Barista their choice of a custom blended espresso drink, freshly brewed coffee, or other beverage. TDP is offering a high quality option to the fast-food, gas station, and institutional coffee.

Target Market

Market size & segments.

The Daily Perc will focus on two markets:

The Daily Commuter – someone traveling to or from work, out shopping, delivering goods or services, or just out for a drive. The Captive Consumer – someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment. 4.1 Market Segmentation

The Daily Perc will focus on two different market segments: Commuters and Captive Consumers. To access both of these markets, TDP has two different delivery systems. For the commuters, TDP has the Drive-thru coffee house. For the captive consumer, TDP has the Mobile Cafe.

Commuters are defined as any one or more individuals in a motorized vehicle traveling from point "A" to point "B." The Daily Perc’s greatest concentration will be on commuters heading to or from work, or those out on their lunch break.

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The following chart and table reflect the potential numbers of venues available for the Mobile Cafes and what growth could be expected in those markets over the next five years. For a conservative estimate of the number of Captive Consumers this represents, multiply the total number of venues in the year by 1,000. As an example, in the first year, The Daily Perc is showing that there is a total of 2,582 venues at which we might position a Mobile Cafe. That would equate to a Captive Consumer potential of 2,582,000.

Similarly, there are well over 2,500,000 commuters in the metropolitan area, as well as visitors, vacationers, and others. It can also be assumed that these commuters do not make only one purchase in a day, but in many cases, two and even three beverage purchases.

The chart reflects college and high school campuses, special events, hospital campuses, and various charitable organizations. A segment that is not reflected in the chart (since it would skew the chart so greatly) is the number of corporate campuses in the metropolitan area. There are over 1,700 corporate facilities that house more than 500 employees, giving us an additional 1,700,000 prospective customers, or a total of 2,582 locations at which we could place a Mobile Cafe.

Current Alternatives

When measuring head-to-head, direct competitors, we have found that there are none in the metropolitan area. The Daily Perc will be the first double-sided, drive-thru coffee house in the metropolitan area. However, there is still significant competition from traditional coffee houses and other retailers.

National Chains: Starbucks, the national leader, had revenues in fiscal year 2000 of $2.2 billion. That is an increase of 32% over fiscal year. Starbucks plans to increase revenues to over $6.6 billion from 10,000 retail outlets over the next 5 years 

Panera had revenues of $151 million from corporate owned stores and $350 million from franchised locations last year. This fiscal year revenue was an increase in 28.9% on a per store basis.

The Daily Perc believes it has a significant competitive advantage over these chains because of the following benefits:

• Drive-thru Service
• More Substantial Customer Service
• Community Benefit
• Mobile Cafes
• Higher Product Quality

Local Cafes: The toughest competitor for The Daily Perc is the established locally owned cafe. TDP knows the quality and pride that the local cafe has in the product purchase by their customers. Any local cafe has a customer base that is dedicated and highly educated. The quality of beverages served at an established cafe will surpass any of the regional or national chains.

The competitive edge The Daily Perc has on the local cafes is based on the attributes of:

• Supply Discounts
• Mobile Cafe
• Consistent Menu
• Quality Product

Drive-thru Coffee Houses: There is not a drive-thru specialty beverage retailer with significant market presence in the central United States. The only company with similar depth to that of The Daily Perc is Quikava, a wholly owned subsidiary of Chock Full ‘o Nuts. However, Quikava has limited its corporate footprint to the East Coast and the Great Lakes Region.

In the drive-thru specialty beverage market, The Daily Perc has a competitive edge over the smaller retailers, and even Quikava, due to:

• Valued Image
• Greater Product Selection

Fast Food and Convenience Stores: These are two industries where The Daily Perc will experience a certain level of competition. The national fast food chains and national convenience store chains already serve coffee, soda, and some breakfast foods. The national fast food chains obviously know the benefits and value to customers of drive-thru. TDP knows that within the specialty coffee and tea market, the quality of the products sold will be much greater than what can currently be purchased at fast food and convenience stores. The addition of domestic soda sales for these stores is a large part of revenue. TDP knows the quality of our products, along with the addition of domestic soda and the ease of drive-thru, gives it a competitive edge over fast food and convenience stores.

Other competition: The Daily Perc knows that once it has entered the market and established a presence, others will try to follow. However, TDP believes that the corporate missions and even the organizational design will be imitated, but never duplicated. TDP will constantly evaluate its products, locations, service, and corporate missions to ensure that it remains a leader in the specialty beverage industry.

Our Advantages

The Daily Perc will penetrate the commuter and captive consumer markets by deploying Drive-thru facilities and Mobile Cafes in the most logical and accessible locations. The Drive-thrus are designed to handle two-sided traffic and dispense customer-designed, specially ordered cups of specialty beverages in less time than required for a visit to the locally owned cafe or one of the national chains.

The Daily Perc has identified its market as busy, mobile people, whose time is already at a premium, but desire a refreshing, high-quality beverage or baked item while commuting to or from work or school.

In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as positive public and media support, The Daily Perc could be donating up to 7.5% of revenue from each cup sold in individual Drive-thrus to the charities of the customers’ choice.

Keys to Success

There are four keys to success in this business, three of which are virtually the same as any food service business. It is our fourth key–the Community Mission–that will give us that extra measure of respect in the public eye.

• The greatest locations – visibility, high traffic pattern, convenient access.
• The best products – freshest coffee beans, cleanest equipment, premium serving containers, consistent flavor.
• The friendliest servers – cheerful, skilled, professional, articulate.
• The finest reputation – word-of-mouth advertising, promotion of our community mission of charitable giving.

Marketing & Sales

Marketing plan.

Marketing Strategy

First and foremost, The Daily Perc will be placing its Drive-thru facilities in locations of very high visibility and great ease of access. They will be located on high traffic commuter routes and close to shopping facilities in order to catch customers going to or from work, or while they are out for lunch, or on a shopping expedition. The Drive-thrus are unique and eye-catching, which will be a branding feature of its own.

The Daily Perc will be implementing a low-cost advertising/promotion campaign which could involve drive-time radio, but not much more.

The Daily Perc will rely on building relationships with schools, charities, and corporations to provide significant free publicity because of its community support program. By giving charitable contributions to these institutions, they will get the word out to their students/faculty/employees/partners about TDP. Word of mouth has always proven to be the greatest advertising program a company can implement. In addition, the media will be more than willing to promote the charitable aspects of TDP and provide the opportunity for more exposure every time TDP writes a check to another organization.

Promotion Strategy

• Public relations services at $1,000 per month for the next year intended to generate awareness of editors and product information insertions, reviews, etc. It is anticipated that the school fundraising program will generate a fair amount of publicity on its own and will, perhaps, minimize–or even eliminate–the need for a publicist.
• Advertising at $1,000 per month concentrating on drive time radio. The Daily Perc will experiment with different stations, keeping careful track of results. As with the school fundraising program, TDP expects the facilities and signage to be a substantial portion of our advertising. However, in the start-up phase, TDP needs to let people know where to look for the facilities.

Marketing Programs

Distinctive Logo: "Papo" is a very happy and conspicuous sun. The sun is one of infinite mental pictures. The sun touches every human being every day. Obviously, TDP wants to touch every customer every day. That is why the use of the sun lends itself to being the corporate identifier. Papo is already an awarding winning logo. Papo won in the New Artist Category of the 2001 Not Just Another Art Director’s Club (NJAADC).

Distinctive Buildings: TDP is using diner style buildings for its Drive-thru facilities. TDP has worked closely with the manufacturer to make the building distinctive, so that it is easy to recognize, and functional.

The Fund-raising and Catering Trailer: The Mobile Cafe will be a key marketing tool. The similarities between the Mobile Cafes and the Drive-thru facilities will be unmistakable. The exposure these units will provide cannot be measured in dollars. The Daily Perc will negotiate visits with the Mobile Units at schools, hospitals, corporations and other entities. In the case of schools and certain corporations, a portion of all sales made while on their campus could go to a program of their choice. The organization would promote its presence to their constituency and encourage them to frequent the Drive-thru establishments so that their charitable cause is nurtured. This will give those patrons an opportunity to taste the products and become a regular customer of the Drive-thru facilities. The Mobile Cafes will also be appearing at community events such as fairs, festivals, and other charitable events.

Advertising and Promotion:

We will be using Social Media to help create and promote our brand.  Twitter tweets and retweets will be used to make sure we have a conversation with our customers. It will also be used to let them communicate directly with us. Facebook page views and promotions of our charitable enterprises will be used to get people talking about us and wanting to stop by and try our unique coffee. Everyone appreciates a good cause. 

In the first year, The Daily Perc plans to spend moderately on advertising and promotion, with the program beginning in September, after the opening of the first Drive-thru. This would not be considered a serious advertising budget for any business, but TDP feels the exposure will come from publicity and promotion, so most of the funds will be spent on a good publicist who will get the word out about the charitable contribution program and how it works in conjunction with the website. TDP also believes that word-of-mouth advertising and free beverage coupons will be better ways to drive people to the first and second locations.

In the second year, The Daily Perc is increasing the budget, since it will need to promote several locations, with particular emphasis on announcing these openings and all the other locations. TDP will continue to use publicity as a key component of the marketing program since TDP could be contributing over $70,000 to local schools and charities.

In the third year, The Daily Perc will double its advertising and promotion budget, with the majority of the advertising budget being spent on drive time radio. As in the previous years, TDP will get substantial publicity from the donation of nearly $200,000 to local schools and charities.

There will be several sales strategies put into place, including posting specials on high-profit items at the drive-up window. The Baristas will also hand out free drink coupons to those who have purchased a certain number of cups or something similar. TDP will also develop window sales techniques such as the Baristas asking if the customer would like a fresh-baked item with their coffee.

Locations & Facilities

The Daily Perc will open its first drive-thru facility on Manchester Road in the Colonial Square Shopping Center. Twelve more drive-thru facilities will be placed throughout the metropolitan area over the next three years. The drive-thru in the Colonial Square Shopping Center will serve as the commissary for the first mobile unit.

The demographic and physical requirements for a Drive-thru location are:

• Traffic of 40,000+ on the store side.
• Visible from the roadway.
• Easy entry with light if less than 30,000 cars.
• Established retail shops in the area.

The Daily Perc’s delivery system is based on its technology. TDP is using state-of-the-art, two-sided, Drive-thru facilities to provide convenience and efficiency for its clientele. An architectural exterior diagram of the Drive Thru building can be found on the following page (removed from this sample plan).

The Daily Perc has also designed state-of-the-art Mobile Cafes that will be deployed from time to time on high school and college campuses, corporate campuses, and at special events.

Milestones & Metrics

Milestones table, key metrics.

• Sales, Gross margin, profits
• Average sales per day
• Average units per day
• Facebook likes
• Twitter follows
• Average unit prices for main sales lines

Ownership & Structure

The Daily Perc is a Limited Liability Corporation. All membership shares are currently owned by Bart and Teresa Fisher, with the intent of using a portion of the shares to raise capital.

The organization will be a relatively flat one since the majority of personnel are involved in production and there will be a relatively low headcount in management. 

Management Team

The Daily Perc is a relatively flat organization. Overhead for management will be kept to a minimum and all senior managers will be "hands-on" workers. There is no intention of having a top-heavy organization that drains profits and complicates decisions.

The Daily Perc has selected Mr. Barton Fisher to perform the duties of the chief operating officer. Bart has a highly entrepreneurial spirit and has already started a company from scratch (NetCom Services, Inc.) that ran in the black within three months of inception, and paid off all initial debt within six months. Upon leaving NSI in April 2001, the company had again paid off all debt and was running a profit monthly. Combine his experience, leadership, and desire with three years of research in specialty drinks and drive-thru service, and TDP knows that Bart is the individual who will get the company out of the gate and up to full speed for a long time to come.

Mr. Tony Guy has been selected to perform the duties of corporate events coordinator on a part time basis. Mr. Guy has over five years in the business-to-business sales realm. Last year he was responsible for over $250,000 in sales of promotional material to corporate and educational clients.

Mr. Chuck McNulty has been selected to fulfill the position of warehouse/trailer manager. Chuck has been working for Nabisco, Inc. as a service representative for over ten years. His experience in account services, merchandising, and inventory control is a welcome addition to The Daily Perc team. Chuck will use his knowledge in conjunction with the rest of the team to establish inventory and warehouse policies. The warehouse manager is responsible for handling the inventory of all products sold by The Daily Perc. Some merchandising experience is a welcome addition. Training in the First In First Out (FIFO) style of inventory control is a requirement. Also, knowledge of ergonomics and health issues would be important. Chuck’s domain will be the headquarters, the trailers, and the drive-thrus–ensuring that minimum and maximum inventories are maintained. Working with the mobile and drive-thru Baristas will be integral to his task as well.

Management Team Gaps

The Daily Perc knows that it is going to require several quality-management team members over the next three years, beginning with a district manager for every four Drive-thrus. This person will oversee the quality of the product, the training of the Baristas, the inventory management, and customer satisfaction. Ideally, as The Daily Perc grows, it will be able to promote from within for this position. This individual will be responsible for the operation of up to four drive-thrus under his/her management. They will be required to visit between locations and possibly even join administrative personnel on training or marketing travel. Clearly, as the need arises, these individuals will ideally be selected from the Mobile Cafe or Drive-Thru team.

By the beginning of the third year, The Daily Perc will hire three key senior managers. They are as follows: a chief financial officer, a chief information officer, and a director of marketing. The role of each of these individuals will be discussed in subsequent sections of this plan.

Personnel Table

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

The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:

• The Daily Perc assumes a slow-growth economy, without a major recession.
• The Daily Perc assumes of course that there are no unforeseen changes in public health perceptions of its general products.
• The Daily Perc assumes access to equity capital and financing sufficient to maintain its financial plan as shown in the tables.

Revenue by Month

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

Start-up Expenses

Legal $3,500

Office Equipment $4,950

Land Lease (2 month) $7,200

Vehicle Finance (2 months) $3,700

Website Preliminary Development & Hosting $5,600

Identity/Logos/Stationary$ 4,000

Other $5,000

Total Expenses $33,950

Sources of Funds

Projected profit & loss, projected balance sheet, projected cash flow statement.

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From Bean to Cup: Starting a Coffee Kiosk

Embark on a caffeinated journey as we delve into the world of coffee kiosks, exploring how to bring the aroma and taste of freshly brewed coffee from the bean to your customer’s cup. These petite establishments have become urban sanctuaries, offering weary travelers and rushed locals alike a chance to pause and rejuvenate. With every sip of their expertly brewed concoctions, moments of tranquility are savored. 

The ambiance, accentuated by the symphony of grinding beans and frothing milk, invites conversations, inspirations, and sometimes, simple reflections. But what alchemy unfolds behind those counters to offer such consistent allure? 

Establishing such a kiosk, dedicated to the revered bean, requires a blend of passion, expertise, and a deep understanding of the urban coffee aficionado’s ever-evolving palate. Join us on this journey, uncovering the secrets behind setting up these miniature caffeine havens.

Introduction to Coffee Kiosk Business

The coffee business has evolved far beyond traditional cafes and coffee shops. Enter the coffee kiosk – a compact, efficient setup delivering the same caffeinated satisfaction. 

A coffee kiosk is a specialty setup focusing primarily on coffee beverages and accompanying snacks, streamlining the experience for both the owner and the customer. Think of it as a mobile coffee cart, with the added advantage of being stationary, often set up in high-footfall areas like malls, stations, or public squares.

Planning Your Coffee Kiosk Business

Crafting a successful coffee kiosk business requires not just passion for coffee but a concrete plan that addresses every critical aspect of the venture. From understanding your market to laying down your financial foundations, every step should be meticulously planned. Here’s a closer look:

Conducting Market Research

• Identify Potential Locations : Begin by zeroing in on areas with substantial footfall. Think busy office districts, transport hubs, or near educational institutions where folks frequently look for their caffeine fix.
• Survey Potential Customers : Before diving in, get to know your audience. What’s their preferred coffee brew? Which snacks do they favor with their latte? Are they looking for artisanal coffee or quick convenience? Also, understanding their willingness to pay can help set the right price points.
• Study Competitors : Observe other coffee ventures in your targeted area. Take note of their best sellers, their busy hours, and their shortcomings. Are there niches they aren’t addressing, perhaps a unique coffee blend or a special treat? Finding gaps can give you an edge.

Creating a Business Plan

Financial Planning : Start with a clear budget. Factor in initial setup costs—like equipment and rental—plus recurring expenses such as inventory restocking, utilities, and salaries. Forecasting potential earnings against these will give you a clearer picture of profitability.

Marketing Strategy : Start creating a buzz well before your opening day. Use social media to tease your offerings, collaborate with influencers for shoutouts, and consider offering opening-day discounts or free samples. A loyalty program, punch cards, or a subscription model can keep customers coming back.

Vision and Mission : Beyond the beans and brews, what’s your coffee kiosk’s story? Why did you start it? What coffee experience do you want to offer? Clearly articulating this can help connect with customers on a deeper level and give them more reasons to choose you over competitors. It’s not just about serving coffee; it’s about creating a unique, memorable experience every time someone visits.

Setting Up Your Coffee Kiosk

Choosing the right location.

Finding that perfect spot for your coffee kiosk can make all the difference between a venture that flourishes and one that fizzles out. Here are the elements you need to look at:

• Foot Traffic : High footfall areas such as shopping malls, bustling office districts, university campuses, or transportation hubs like train stations and bus terminals make ideal locations. Here, people are often on the move and looking for quick refreshments.
• Visibility : Your kiosk should be easily noticeable, even from afar. Whether it’s by a brightly lit sign, a unique design, or an inviting display of pastries and coffee cups, ensuring that passersby can spot you easily can significantly boost spontaneous visits.
• Accessibility : It’s not just about foot traffic; it’s also about how easy it is for someone to walk up to your kiosk. Consider factors like available parking for those driving by, proximity to popular local attractions, and the ease with which pedestrians can approach without obstructions.

Designing and Outfitting Your Kiosk

Crafting the perfect space for your coffee kiosk is part art, part science. Here’s a roadmap to guide you:

• Aesthetic Appeal : The design of your coffee kiosk should resonate with your brand’s identity. Whether you’re going for a rustic, artisanal look or a sleek, modern vibe, ensure that your design choices reflect the experience you wish to offer. It’s not just about looking good—it’s about creating a space where customers feel the essence of your brand.
• Functionality : While aesthetics are vital, the functionality of your kiosk is paramount. There should be enough room for baristas to move around comfortably, areas dedicated to brewing and serving, and sufficient storage spaces. Consider the flow of service, from order placement to preparation to serving, ensuring it’s smooth and efficient.
• Essential Equipment : The heart of your kiosk is the equipment. Investing in high-quality machinery, like an espresso machine, is essential. But also think about other necessities: grinders for fresh coffee beans, refrigeration for cold beverages and dairy, storage solutions for beans and other supplies, and display cases for baked goods or snacks. 

Sourcing and Roasting Coffee Beans

The soul of your coffee kiosk lies in the beans you choose. Their origin, type , and the way they’re processed will define the flavor profile of every brew you serve. So, where do you start?

Understanding Coffee Bean Varieties

When you step into the world of coffee, you’ll come across a vast range of beans. To simplify, here are some key differences:

• Arabica vs. Robusta : These are the two primary species of coffee beans consumed worldwide. Arabica beans tend to have a wider taste range, varying from sweeter, more tangy tastes, to deep, wine-like flavors. They generally contain less caffeine compared to Robusta. Robusta, on the other hand, has a stronger, more bitter flavor, and can be easier to cultivate due to its resistance to pests. It’s often less expensive than Arabica.
• Single-origin vs. Blends : As the name suggests, single-origin coffee is sourced from one location, be it a particular country or even a single farm. These beans give a unique flavor that reflects the specific conditions of their growing region. Blends, however, are mixtures of beans from different places, crafted to create a balanced flavor, aroma, and acidity.

Sourcing High-Quality Coffee Beans

Quality beans are the backbone of any great coffee shop. Here’s how you can ensure you’re sourcing the best:

• Direct Trade : One of the most ethical and quality-assuring methods of obtaining coffee beans is through direct trade. By building direct relationships with coffee farmers or cooperatives, you can bypass middlemen. This not only ensures that you get fresher beans but also that farmers receive a fair price for their produce. It’s a win-win situation.
• Quality over Quantity : It might be tempting to cut corners and go for cheaper beans, especially when setting up. However, compromising on quality will reflect in your brew. Prioritizing high-quality beans, even if they come at a higher price point, will ensure that your customers get to sip on a delicious, memorable cup of coffee every single time. After all, in the world of coffee, the nuances of flavor, aroma, and body can elevate a coffee experience from ordinary to exceptional.

Brewing Techniques and Methods

Crafting the perfect cup of coffee is an art as much as it is a science. The brewing method you choose, the grind size of the beans, and even the water temperature can significantly influence the final flavor profile. Let’s explore this fascinating world in detail.

Understanding Coffee Brewing Science

• Extraction Methods : The essence of brewing lies in the extraction of flavors from coffee grounds. But how do you achieve the right balance? Factors like grind size play a pivotal role; for instance, a fine grind is best for espresso, while a coarse one works wonders for French press. Temperature is another crucial element. 
• Balance of Ingredients : Much like a classic recipe, getting the coffee-to-water ratio right is crucial. Whether you’re making a robust shot of espresso or a milder pour-over, ensuring you measure out your coffee and water will provide consistency. This guarantees that your customers know exactly what to expect with every cup they order.

Choosing the Right Brewing Method

• From Espresso to Drip : Some coffee enthusiasts swear by the rich and potent espresso, while others prefer the smoothness of a drip coffee. Espresso involves forcing hot water through finely-ground coffee, resulting in a concentrated shot, while drip methods allow water to flow through the coffee grounds, gathering flavors along the way. 
• Experiment and Evolve : It’s always a good idea to keep an ear to the ground. Listen to your customers, attend workshops, or even hold tasting sessions. Feedback is a treasure trove. It can help you tweak and refine your brewing techniques, ensuring you keep up with changing tastes and preferences while maintaining the soul of your coffee kiosk.

Creating a Menu and Serving Customers

Crafting an enticing coffee menu is more than just listing down drinks. It’s about curating a selection that resonates with your target audience while also being true to your brand. Couple this with impeccable customer service, and you’re on your way to being the talk of the town.

Developing a Coffee Menu

• Classic to Contemporary : Begin with staples like the classic espresso, cappuccino, and americano. But don’t stop there. Venture into the world of contemporary coffee concoctions. Think nitro cold brews, turmeric lattes, or even oat milk cappuccinos. 
• Seasonal Specials : Spice up your menu periodically by introducing seasonal drinks. For instance, a pumpkin spice latte in the fall, or a refreshing iced mint coffee in the summer. Not only does this give regulars something new to try, but it also taps into the vibes of the season or festive moods.

Providing Excellent Customer Service

Barista Training : A barista is the heart and soul of a coffee shop. They aren’t just there to whip up delectable drinks but also to represent the brand. Comprehensive training ensures they not only make coffee to perfection but also understand the nuances of customer engagement. 

Quick Service : In today’s fast-paced world, time is of the essence. While some customers might love a leisurely coffee, many are on the go. Ensuring a system that caters to quick orders, especially during peak hours, can make all the difference. It’s about finding the right balance between speed and quality, ensuring neither is compromised. 

Managing and Growing Your Coffee Kiosk Business

Embarking on the coffee kiosk journey is only the beginning. The true challenge, and indeed the thrill, lies in nurturing and expanding the venture. Success in this space is marked by a blend of traditional business acumen, an ear to the ground, and an eye for the future.

• Engage and Evolve : A business is only as strong as its relationship with its clientele. Actively solicit feedback from your patrons. Be it through comment cards, online reviews, or face-to-face conversations, understand what’s working and where there’s room for improvement. 
• Market Effectively : In today’s digital age, a strong online presence is paramount. Leverage social media platforms to showcase your offerings, share behind-the-scenes glimpses, and engage in interactive sessions. Platforms like Instagram, with its visual emphasis, can be especially effective for a coffee business. 
• Diversify Thoughtfully : While coffee might be your forte, don’t be limited by it. Keep an eye on beverage trends. For instance, the rise in health consciousness has seen an uptick in demand for smoothies, herbal teas, and even kombucha. Test and trial new additions, and based on their success, integrate them into your main menu. 

Embarking on the adventure of establishing a coffee kiosk is akin to brewing the perfect cup of coffee: it requires the right ingredients, precise timing, and a touch of love. From selecting the choicest coffee beans to mastering the nuances of brewing and serving, every step of this journey is infused with dedication and zeal. 

Yes, the path is paved with challenges, from managing operations to wooing customers. However, the satisfaction of witnessing a smile on a patron’s face as they take that first sip is unparalleled. 

In case you want more content like this, visit Orderific right now!

What is a coffee kiosk and how is it different from a coffee shop or café?

A coffee kiosk is a smaller, often standalone establishment primarily focused on selling coffee and related beverages. 

What are the advantages and disadvantages of starting a coffee kiosk business?

Advantages: lower overhead costs, flexibility in location, and a streamlined business model. Disadvantages: limited seating, dependence on foot traffic, and weather-related challenges.

What kind of market research should I do before starting a coffee kiosk?

Understand your target audience’s coffee preferences, survey potential locations for foot traffic, and study competitors in the vicinity.

How do I choose the right location for my coffee kiosk?

Opt for high-footfall areas with good visibility, accessibility, and complementing nearby businesses.

What kind of equipment and supplies do I need to start a coffee kiosk?

Key equipment: a coffee maker, espresso machine, grinders, storage units, and display cases. Supplies: coffee beans, milk, syrups, cups, and other beverage ingredients.

How do I source high-quality coffee beans for my kiosk?

Establish direct relationships with coffee farmers or reputable distributors, ensuring freshness and ethical sourcing.

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• STARTUP COURSE AND DOCUMENTS

Startup Cost for a Kiosk Coffee:  Demystifying the Startup Costs

With the aroma of freshly brewed coffee, the enticing allure of caffeine, and the desire to create a bustling hub for coffee lovers—opening a kiosk coffee business can be an exciting venture. However, before embarking on this caffeine-fueled journey, it’s crucial to understand the startup costs involved.

The estimated startup costs for opening a kiosk coffee business can vary, but typically range from $10,000 to $50,000, depending on factors such as location, equipment, renovations, permits, initial inventory, and marketing expenses.

In this article, I will delve into the intricacies of startup costs for a kiosk coffee business, exploring various factors that influence the investment required and providing insights to help aspiring entrepreneurs plan their financial path to growth.

Table of Contents

1. Location Matters:

When it comes to opening a kiosk coffee business, the significance of choosing the right location cannot be overstated. The improvement and profitability of your venture depend heavily on factors such as foot traffic, proximity to your target customers, and the cost of leasing or renting the space. The location you select will have a direct impact on your startup expenses and the number of customers you can attract.

Prime locations in bustling commercial areas, near offices, universities, or transit hubs, tend to offer a higher potential for customer traffic. These areas are often bustling with people seeking a quick and convenient caffeine fix. However, it’s important to consider that these sought-after locations may come with higher rental costs due to their desirability.

Conducting thorough market research is essential in identifying the optimal location for your kiosk coffee business. This research involves analyzing demographics, studying foot traffic patterns, and understanding the preferences and behaviors of your target customers. By gaining insights into the local market, you can make informed decisions about where your kiosk will thrive.

Finding the right balance between visibility and affordability is crucial. While it may be tempting to secure a high-profile location, it’s equally important to ensure that the associated costs are within your budget. Careful consideration of the lease or rental costs, along with the expected return on investment, will help you determine if a particular location is financially viable for your business.

In addition to foot traffic and cost, it’s important to assess the overall infrastructure and accessibility of the location. Consider factors such as parking availability, public transportation access, and neighboring businesses that can complement your coffee offerings.

Ultimately, the optimal location for your kiosk coffee business will depend on various factors, including your target market, competition, and financial capabilities. By conducting thorough market research and striking the right balance between visibility and affordability, you can position your kiosk for greatness, attracting a steady stream of customers and maximizing your chances of profitability.

Remember, finding the right location is a crucial step in building a strong foundation for your kiosk coffee business.

Read more about Startup Coffee Shop Costs: A Financial Breakdown

2. Equipment and Setup:

Equipping your kiosk coffee business with the necessary machinery, furniture, and fixtures is a critical aspect that significantly contributes to startup costs. To create a smooth and efficient operation, you’ll need to invest in a range of equipment including coffee machines, grinders, blenders, refrigerators, display cases, tables, chairs, and signage.

Coffee machines are the heart of any coffee business. They come in various types, such as espresso machines or drip coffee makers, and can range in price depending on the brand and features. Investing in a high-quality coffee machine ensures that you can consistently deliver a delicious cup of coffee to your customers, meeting their expectations and providing a satisfying experience that keeps them coming back.

Grinders are essential for freshly grinding coffee beans, unlocking the flavors and aromas that discerning coffee lovers crave. A reliable grinder will allow you to achieve the desired consistency and control the quality of each cup. Similarly, blenders come in handy for creating delightful blended coffee beverages, adding versatility to your menu.

Refrigerators are vital for storing perishable items like milk, cream, and other ingredients. Display cases not only showcase tempting pastries and snacks but also help maintain their freshness. Investing in durable and energy-efficient refrigeration equipment is essential for ensuring food safety and minimizing waste.

Tables and chairs provide a comfortable and inviting space for customers to enjoy their coffee. Depending on your kiosk’s size and design, you may need to consider space-saving options or customizable furniture to maximize your available area. Additionally, attractive and informative signage will help attract customers and communicate your brand effectively.

When budgeting for equipment, it’s important to prioritize quality and durability. While high-quality equipment may come with a higher upfront cost, it pays off in the long run by reducing maintenance and replacement expenses. Investing in reliable machinery also minimizes downtime, ensuring smooth operations and customer satisfaction.

Consider your operational needs and growth projections when selecting equipment. Assess the capacity, features, and efficiency of each item to ensure it aligns with your business goals. Researching reputable suppliers, reading reviews, and seeking recommendations from industry professionals can help you make informed decisions and avoid costly mistakes.

By investing in top-notch equipment, you’ll be able to deliver consistent, high-quality products that meet or exceed customer expectations. This fosters customer loyalty, and positive word-of-mouth, and ultimately contributes to the achievement and profitability of your kiosk coffee business.

3. Renovations and Interior Design:

In the competitive world of coffee businesses, creating an inviting and aesthetically pleasing environment is essential to stand out and attract customers to your kiosk. Renovations and interior design expenses are a significant part of the startup costs and involve various elements such as painting, flooring, lighting, countertops, shelving, and branding.

Painting the space in appealing colors can set the mood and create a welcoming atmosphere. Consider colors that align with your brand and evoke feelings of warmth and relaxation. The right flooring choice, whether it’s hardwood, tiles, or vinyl, should be durable, easy to clean, and visually appealing. Lighting is another crucial aspect that sets the ambiance and highlights the products on display. Balancing natural light with strategic artificial lighting can create an inviting and cozy atmosphere for customers.

Countertops and shelving should be both functional and visually appealing. They should provide ample space for preparing and serving coffee while showcasing your products attractively. Well-designed and organized shelving helps optimize the use of space and allows customers to browse and select items with ease.

Branding elements such as logos, signage, and menu boards are essential for creating a cohesive and memorable identity for your kiosk. These elements should reflect your brand’s personality and resonate with your target audience. Collaborating with experienced designers or contractors who understand the nuances of creating efficient and visually appealing coffee spaces can ensure that your kiosk reflects your brand while optimizing customer flow and comfort.

Working with professionals can help you make informed decisions about the layout, flow, and design elements that will enhance the overall customer experience. They can provide valuable insights and expertise in creating an environment that encourages customers to linger, savor their coffee, and return for future visits.

Remember, the ambiance and aesthetics of your kiosk coffee business can leave a lasting impression on customers and contribute to their overall satisfaction. Striking the right balance between functionality and ambiance through thoughtful renovations and interior design will help your kiosk stand out from the competition and create a welcoming space where customers can enjoy their coffee and indulge in the unique experience your brand offers.

4. Licenses, Permits, and Legal Considerations:

Compliance with local regulations and obtaining the required licenses, permits, and insurance is of utmost importance when operating a kiosk coffee business. These regulatory requirements ensure that your business is operating legally and uphold the necessary health and safety standards. It is crucial to allocate funds in your startup budget for the associated costs of licenses, permits, certifications, and insurance.

The specific licenses and permits needed may vary depending on your location and local regulations. It is essential to research and understand the requirements specific to your area. Common permits may include business licenses, food service permits, and health department approvals. These permits demonstrate that your kiosk coffee business has met the necessary standards to operate and serve food and beverages to the public.

Additionally, obtaining food safety certifications is crucial for ensuring that your coffee products are prepared and served safely and hygienically. These certifications may require training and adherence to specific protocols, demonstrating your commitment to food safety practices.

Liability insurance is another important aspect to consider. This insurance protects your business in case of accidents, injuries, or property damage that may occur on your premises. It provides financial coverage and peace of mind, safeguarding your business from potential legal and financial consequences.

To navigate the complex landscape of permits, licenses, and insurance, it is advisable to consult with legal professionals or local authorities. They can guide you through the process, help you understand the specific requirements for your kiosk coffee business, and ensure compliance with the relevant laws and regulations. By proactively addressing these legal aspects, you can avoid potential fines, penalties, or legal complications in the future, allowing your business to operate smoothly and in full compliance with the law.

Read more about Startup Business Cost for a Coffee Shop: Assessing the Startup Expenses for Your Coffee Shop

5. Initial Inventory:

Building an initial inventory is a vital step when launching a kiosk coffee business. This inventory encompasses a range of items such as coffee beans, syrups, milk, pastries, and other consumables that are necessary to meet customer demands and provide a diverse menu. Careful consideration should be given to calculating the right quantity and variety of products to strike a balance between meeting customer preferences and minimizing waste.

When it comes to coffee beans, selecting high-quality options that align with your target market’s preferences is essential. Consider offering a variety of blends and single-origin coffees to cater to different taste profiles. It’s important to estimate the average consumption rate and projected demand to ensure an adequate supply without excessive waste. Monitoring sales and customer preferences can help fine-tune your inventory management over time.

In addition to coffee beans, syrups, and milk are key ingredients for creating a variety of specialty coffee beverages. Assessing popular flavors and considering seasonal offerings can help you curate a menu that appeals to a wide range of customers. Having a clear understanding of the shelf life and expiration dates of these perishable items is crucial to avoid wastage and maintaining product quality.

Pastries and other food items can complement your coffee offerings and provide additional revenue streams. Collaborating with local bakeries or suppliers to provide fresh and delicious pastries can enhance the overall customer experience. However, it’s important to strike a balance between offering a sufficient selection and avoiding excessive inventory that may go unsold.

Building strong relationships with reliable suppliers is essential for maintaining a smooth supply chain. Negotiating favorable terms, such as pricing, delivery schedules, and minimum order quantities, can help optimize your initial inventory investment. Regularly evaluating the performance of suppliers and seeking feedback from customers can ensure that your inventory meets their expectations.

Implementing an inventory management system or software can help track sales, monitor stock levels, and automate reordering processes. This allows you to efficiently manage your inventory, avoid shortages, and reduce the risk of overstocking.

6. Marketing and Branding:

Effective promotion is a vital component of establishing a kiosk coffee business. Allocating a portion of your startup budget to marketing expenses is crucial for creating awareness, engaging with your target audience, and differentiating your brand in the competitive coffee landscape.

A well-designed and user-friendly website is a fundamental marketing tool. It serves as a virtual storefront where potential customers can learn about your offerings, location, and business values. Investing in professional website development ensures that your online presence reflects the quality and experience customers can expect from your kiosk.

Social media platforms offer powerful marketing opportunities to connect with your target audience and build a community around your brand. Consistent and engaging social media management helps create buzz, share updates, showcase your products, and engage with customers through comments, messages, and reviews.

Signage is an essential element for attracting customers and communicating your brand identity. Eye-catching and informative signage placed strategically can draw attention to your kiosk and entice passersby to stop and try your coffee. Promotional materials such as business cards, flyers, and coupons can also help spread the word and encourage repeat visits.

Investing in targeted advertising campaigns, both online and offline, can help reach a wider audience and drive foot traffic to your kiosk. This can include digital advertising on platforms like Google Ads or social media ads that specifically target users in your local area. Offline advertising options may include local publications, community boards, or partnerships with nearby businesses to cross-promote each other.

Marketing expenses should be viewed as an investment rather than a cost. By effectively promoting your kiosk coffee business, you create brand recognition, generate customer interest, and build a loyal clientele. This can lead to increased foot traffic, higher sales, and positive word-of-mouth recommendations. Remember to regularly assess the effectiveness of your marketing efforts, track key performance metrics, and adapt your strategies to ensure continued growth in attracting and retaining customers.

7. Staffing and Training:

Staffing and training are important considerations for kiosk coffee businesses, even if the team is smaller compared to larger establishments. The costs associated with hiring skilled baristas and providing comprehensive training should not be overlooked. Investing in your staff ensures consistent quality, efficient service, and a positive customer experience.

Baristas are the face of your kiosk coffee business, responsible for crafting and serving delicious beverages. Hiring individuals with a passion for coffee and a strong work ethic is essential. Skilled baristas bring their expertise to the table, ensuring that each cup is expertly prepared and meets the high standards of your brand.

Comprehensive training programs are necessary to equip your baristas with the necessary skills and knowledge. Training should cover a range of areas, including coffee brewing techniques, espresso extraction, milk steaming, latte art, customer service, and product knowledge. A well-trained barista can confidently interact with customers, make recommendations, and handle various equipment, ensuring a seamless and enjoyable experience for patrons.

Incorporating wages, benefits, and ongoing training programs into your startup budget is crucial for attracting and retaining talented baristas. Competitive wages and benefits packages demonstrate your commitment to valuing and supporting your team. Additionally, offering ongoing training opportunities, such as coffee workshops or certifications, helps develop the skills and expertise of your staff, enabling them to stay updated with industry trends and deliver an exceptional coffee experience.

By investing in staffing and training, you are investing in the foundation of your kiosk coffee business. A capable and motivated team contributes to the overall performance of your business by consistently delivering high-quality beverages and exceptional customer service. Remember to create a positive work environment, provide growth opportunities, and foster a sense of teamwork and camaraderie among your staff. This will not only enhance the customer experience but also contribute to the long-term growth and profitability of your kiosk coffee business.

Read more about Starting Costs for Coffee Shop: Navigating Its Starting Costs

8. Contingency Fund:

Unforeseen circumstances and unexpected expenses are an inevitable part of starting and running any business. That’s why it’s crucial to establish a contingency fund to handle emergencies, equipment repairs, slow business periods, or any other unforeseen events that may arise. By setting aside a percentage of the startup budget as a safety net, entrepreneurs can ensure they have the resources to navigate challenges without compromising the stability of their kiosk coffee business.

A contingency fund serves as a financial buffer, providing peace of mind and the ability to respond effectively to unexpected situations. Emergencies can range from equipment breakdowns or sudden repairs to unforeseen legal or regulatory issues. Having funds readily available enables entrepreneurs to address these issues promptly, minimizing disruptions to daily operations and customer service.

Additionally, slow business periods are common in the early stages of a kiosk coffee business or during certain seasons. A contingency fund can help cover expenses during these periods when revenue may be lower than expected. It provides the necessary cash flow to sustain the business and bridge any gaps until sales pick up again.

Moreover, unforeseen events such as changes in market trends, shifts in customer preferences, or unexpected competition may require additional marketing efforts or strategic adjustments. Having a contingency fund allows entrepreneurs to invest in targeted marketing campaigns, product innovations, or staff training to adapt to evolving circumstances and maintain a competitive edge.

Starting a kiosk coffee business can be a fulfilling venture for passionate entrepreneurs. By understanding the various components that contribute to startup costs, individuals can plan their financial resources more effectively, ensuring a solid foundation for their coffee business.

While the figures may vary depending on location, aspirations, and market conditions, a comprehensive analysis of expenses related to location, equipment, setup, legalities, inventory, marketing, staffing, and contingency funds will help entrepreneurs embark on their coffee journey with confidence and financial preparedness.

So, grab your apron and embrace the world of kiosk coffee entrepreneurship, one cup at a time!

Frequently Asked Questions

Question: How do I choose the right location for my kiosk coffee business?

Answer: When selecting a location, consider factors such as foot traffic, proximity to target customers, rental costs, and competition.

Question: What equipment do I need to start a kiosk coffee business?

Answer: Essential equipment for a kiosk coffee business includes coffee machines, grinders, blenders, refrigerators, display cases, tables, chairs, and signage.

Question: What permits and licenses are required to operate a kiosk coffee business?

Answer: Operating a kiosk coffee business often requires licenses, health permits, food safety certifications, and liability insurance.

To learn more on how to start your own coffee shop checkout my startup documents here

Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.

Hi! I’m Shawn Chun

My adventure in coffee began when I first launched my first coffee shop back in the early 2000s. I had to figure out so many things on my own and to make it worse within 2 years of opening two large corporate coffee chains moved in just blocks away from me!

As I saw smaller and even some larger coffee shops in the neighborhood slowly lose customers to these giant coffee chains and slowly close up shop, I knew that I had to start getting creative…or go out of business.

I (like you may be) knew the coffee industry well. I could make the best latte art around and the foam on my caps was the fluffiest you have ever seen. I even had the best state-of-the-art 2 group digital Nuova Simonelli machine money could buy. But I knew that these things alone would not be enough to lure customers away from the name brand established coffee shops.

Eventually, through lots of trial and error as well as perseverance and creativity I did find a way to not only survive but also thrive in the coffee/espresso industry even while those corporate coffee chains stayed put. During those years I learned to adapt and always faced new challenges. It was not always easy, however, in the end, I was the sole survivor independent coffee shop within a 10-mile radius of my location. Just two corporate coffee chains and I were left after that year. All told the corporate coffee chains took down over 15 small independent coffee shops and kiosks and I was the last one standing and thriving.

Along the years I meet others with the same passion for coffee and I quickly learned that it is not only “how good a barista is” that makes a coffee shop successful, but the business side of coffee as well.

Hence why I started this website you are on now. To provide the tools and resources for up and coming coffee shop owners to gain that vital insight and knowledge on how to start a coffee shop successfully.

Stick around, browse through my helpful blog and resources and enjoy your stay! With lots of LATTE LOVE!

Share This Story, Choose Your Platform!

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How To Start a Drive-Thru Coffee Stand

How to start a drive-thru coffee stand.

Your Guide To Start a Drive-Thru Coffee Shop

A drive-thru coffee shop is a common retail coffee concept that usually consists of a small structure – or stand – with one or two drive-thru service windows. Customers typically drive up to the window and order their coffee and food. As you can imagine, this is super convenient for most customers since they never have to leave their car!

Drive-thru coffee stands can vary in size and design, but typically, they serve one purpose: they conveniently offer coffee to drivers. Customers can often walk up to a coffee stand as well! The term “Drive-Thru Coffee Stand” is used interchangeably with “Drive-Thru Coffee Shop.”

Drive-thru coffee stands are widespread in the Pacific Northwest but can be found all over North America.

Starting a drive-thru coffee stand can save you a lot of money in startup costs compared to traditional coffee shop startup expenses. In addition, if you pick the right location, you can generate just as much revenue as a regular coffee shop with a potentially less up-front investment.

Write a Drive-Thru Business Plan

To start a drive-thru coffee shop successfully, you will want to write up a business plan. Your business plan will help you determine your concept, budget, and best location, among other things. 

A well-written business plan will guide your strategy by detailing the actions from everything from your menu, coffee equipment, location, and target market. 

Finding a great location will be the cornerstone of your drive-thru coffee business strategy. As such, you will want to ensure that your location is appropriately zoned for a food business and accessible to cars and pedestrian traffic.

Planning and preparing for your drive-thru coffee shop will be the foundation for everything you set out to do. The more you plan, the better your chances for success. 

So, with these elements in mind, let's get started!

Photo credit: Alfiedude

Why Start a Drive-Thru Coffee Stand?

Lower costs, healthy profits, & high demand.

Opening a drive-thru coffee stand can be an excellent business opportunity, no matter where you live. From big cities to small towns, suburbs, and rural areas, a drive-thru coffee stand has the potential to be very successful. 

As a popular business concept, a drive-thru coffee stand business ranks high among our best low-cost coffee business ideas – as it's common to reach the same profitability as a traditional coffee shop.

Much like the hamburger roadside stands generations ago, a drive-thru coffee stand caters to the same demographic: people on the move .

Demographic studies indicate that busy coffee drinkers want to treat themselves to fast, convenient, low-cost splurges, even in a downward market. As a result, it makes complete sense to open a drive-thru coffee shop if the location is right. However, before you begin, you will need to know how to move forward and adequately plan in order to improve your chances of success.

How to Start a Drive-thru Coffee Shop

Why Do Some Drive-Thru Coffee Shops Fail?

It's not because of their coffee.

One main reason coffee businesses often fail is due to a lack of planning. Unfortunately, coffee shop owners often fail to adequately plan their business from A to Z. A lack of preparation leaves them susceptible to  common traps that can drive up costs, reduce sales, and increase headaches.

Compared to a traditional coffee shop, the lower-cost investment of a typical drive-thru coffee stand can feed one's overconfidence in executing one's business strategy.

In other words, many aspiring entrepreneurs can be seduced into thinking that no real planning is needed. Yet, t his is far from the truth!

Unfortunately, many coffee shop owners believe they can simply “wing it” when starting a drive-thru coffee shop. Unfortunately, this  fundamental assumption is what often leads to a variety of problems and eventual failure. 

A coffee business rarely fails because of its coffee.

Sometimes, serving your coffee is the easiest part. Unfortunately, failure commonly occurs due to operational knowledge, poor accounting, mismanagement, and insufficient funding. This is especially true for drive-thru coffee stand owners who too often start their business with a minimum budget. You will want to avoid these traps as you plan out your drive-thru coffee stand.

Drive-Thru Coffee Stand Article Resources:

The ultimate guide to start a drive-thru coffee stand.

1. Determine Your Drive-Thru Coffee Shop Concept

What will your drive-thru coffee shop look like? What type of experience will your customers have? Developing your vision and concept of your drive-thru coffee stand will be a significant first step in answering these questions.

By writing your thoughts down on paper, you will mold your ideas into a cohesive coffee shop concept . 

When first thinking about your drive-thru coffee stand business, your thoughts may be all over the place. That’s okay! Write them all down—all  of them. You will be able to come back later and sort out your ideas. But for now, write them down.

Pro Tip: M any thoughts you capture on paper will be used to build your coffee shop business plan shortly. So, keep your notes readily available. 

If you don't know where to start, consider visiting some local drive-thru coffee stands in your area. Pay attention to their location, coffee, food, and coffee branding .

Whether they are “family-friendly” drive-thru coffee stands or bikini barista coffee stands , you can learn a lot from visiting existing drive-thru businesses.

2. Write a Coffee Shop Business Plan

Every successful business starts with a plan. Writing a well-written business plan before you begin a drive-thru coffee stand will better position you for success. It will only serve to help you develop, execute, and launch a coffee stand business the way you envision it to be.

Having a business plan will help you save money from the start, help you avoid mistakes, and ensure you cover everything. In addition, it will help streamline your efforts and spending.

For more information on how to write your coffee shop business plan, please read our article, How to Start and Write a Coffee Shop Business Plan.

3. Develop Your Drive-Thru Coffee Shop Menu

Your menu will decide how you will ultimately proceed when you start your drive-thru coffee stand.

Specifically, y our menu determines your need for space, coffee equipment , workflow, and how many baristas you plan to hire.

Before choosing a location and a menu for your drive-thru coffee stand, you want to look at your future customers. Next, consider what you will sell to them. While serving coffee is high on the list, many drive-thru coffee stands have sophisticated menus. Your menu all depends on your location and target market’s needs.

Your coffee menu may also impact the permitting requirements necessary to operate your business. For example, frying fresh doughnuts sounds excellent, but it complicates your building code and permitting process.

Because of potential space and permitting limitations, you will probably be unable to bake your muffins or cook any of your products on-site. For example, you may want to offer soup and grilled sandwiches for lunch, but your space may not allow for that. In addition, your drive-thru space capacity may force you to get your products off-site or prepare them at your commercial commissary . 

Keep Your Menu Focused on Pleasing Customers

Offer a simple menu that caters to your customers and grows it from there.  For example, you may want to provide:

• Drip coffee
• Espresso-based drinks (Lattes, Americanos, & espresso shots)
• Cold-brew coffee
• Energy drinks
• Non-caffeinated beverages
• Water and soda
• Prepackaged goods (muffins, cookies, bagels, etc.)

Once you determine who your customers are, you can deepen your drive-thru menu options. Muffins, scones, and cookies are popular drive-thru coffee stand options. These all go well with espresso-based beverages.

Other popular coffee drive-thru menu options are smoothies and energy drink-based beverages. Commercial blenders and ice machines may be added to your coffee equipment list to deliver these popular options. You can develop your menu to capture your afternoon and evening customers, including nitro coffee, cold brew, and ice cream. 

Coffee Shop Menu Tips:

When brainstorming your menu plan, write it down.  In fact, write everything down. Creating a coffee menu plan will set the rest of your drive-thru coffee business in motion.

Heads up: Various county health departments may often require a complete menu and ingredients list from you before approval of your permit. If you offer certain products like soft cheese, ice cream, or fried items, your health department may categorize your business differently than if you were strictly serving espresso or smoothies. This new categorization may come with new or greater requirements to satisfy.

Create a Coffee Menu Board That Stands Out

Your drive-thru coffee shop menu is one way to differentiate yourself from competitors. If you are known to serve high-quality coffee and food that your local customers want, you'll be one giant step ahead of your competition.

To get started on your coffee menu, ask yourself:

• What will your customers get excited about?
• What will your business have that other coffee stands will not have ?
• Are your menu options ultimately going to keep customers coming back?
• Can you find vendors to source your ingredients or finished products?

Remember, your coffee menu is an integral part of coffee business planning. If you need help or feel stuck with your menu decisions, consider visiting other coffee shops, drive-thru coffee stands, and coffee carts in your area. What are these drive-thru coffee stands serving that you like? Could you do a better job of serving a better product?

Read our article on How to Develop Your Coffee Shop Menu Board for more information .

4. Find a Perfect Drive-Thru Coffee Stand Location

Start your search early for a drive-thru coffee stand location. It's no secret that when you start a drive-thru coffee stand business, your location means just about everything to your success.

The fate of your entire drive-thru coffee business will rest on you getting the most optimal location. Unfortunately, this isn't always easy.

Finding the right location actually depends on the following:

• Accessibility
• Thriving traffic
• Healthy customer base
• Monthly costs
• Zoning requirements
• Existing competition

In addition to healthy foot traffic and vehicles, you will want to look at factors that include competition, labor laws, taxes, and zoning requirements.

Convenience, Customer Safety, and Accessibility

The natural traffic flow during various times of the day will impact our location selection. Remember that convenience and accessibility is your primary selling point to your customers. People want to get in and out – and fast. Because of this, take a moment to consider how your customers will enter your drive-thru stand and how they will exit. Are both easy to do?

If they can easily enter your drive-thru entrance but have difficulty exiting due to heavy traffic or a design flaw, they will be less inclined to visit next time. Your drive-thru customers’ convenience and safety go hand in hand. Additionally, consider what a customer vehicle backup would look like. If you had four or five cars waiting in line, would they fit safely in your area?

You know from your own experiences that most people visit drive-thru coffee stands to buy convenient coffee when commuting to school, work, or running errands. Generally, people are in a hurry, so speed and convenience will be important to maintain for your customer base.

Additionally, you will also want to plan for walk-up customers. About 10% -30 % of drive-thru customers are on foot. You will want to ensure your pedestrian customers have a safe place to order, wait, and even enjoy their coffee.  This may mean you must design a physical barrier where customers can stand and wait for their orders.

Common drive-thru coffee stand locations:

• Empty parking lots
• Gas stations with extra space
• Empty commercial lots 

If you want to set up at a particular location, approach the property manager. You can do this by inquiring with local businesses already on or near the site. They can often provide you with the names and contact information of those managing the site. Before contacting them, consider reviewing your local zoning rules to see if they would work out. Also, consider the multiple layers of government agencies that will play a role. Individual cities, counties, and your state may all have some layer of influence over your drive-thru coffee stand.

A city’s business development office can help point you to the specific agencies involved. Seeking out this information as early as possible can save you a lot of time and headaches.

As mentioned, having the right location involves assessing your competition, the general market base, and your specific target customer. It will also require you to review the area's laws, taxes, regulations, and permitting requirements. All of these things will (or at least should) impact your final decision on where you decide to call your coffee stand business home.

Read our article Finding the Best Location for Your Coffee Shop for more information .

Start a drive-thru coffee stand

What's the right location for your drive-thu coffee stand.

Choosing a Drive-Thru Coffee Shop Location

The perfect location for your drive-thru stand will find a sweet spot between your competitors, target market, zoning laws, and leasing terms. For example, for  a drive-thru coffee stand, competitors could mean anything from a local coffee shop, fast food restaurants, a gas station, or other drive-thru coffee stands.

Other location issues: D epending on your municipality, you may need to offer parking and a certain amount of physical space for cars to turn around safely. Special parking and accessibility points may be required for  disabled individuals.

Additionally, you may need to have a restroom or toilet access for your employees within a certain amount of feet. You should research all of these points regarding your specific state and city. You will want to check with your city's transportation department for any issue that impacts city streets.

Remember that premium coffee stand locations will cost more because of ideal traffic conditions, parking, visibility, access to water, the availability of electrical outlets, restrooms, and a commissary.

For further reading, read our article, 15+ Great Locations for a Coffee Shop.

5. Your Drive-Thru Coffee Shop Competition

Sizing up the competition matters. Drive around and do a Google or Yelp search to find coffee shops, drive-thru coffee stands, and substitute businesses in your area. Substitute businesses are those like McDonald's, Denny’s and IHOP, etc.

What are these coffee businesses offering, and what can you add to your menu to help differentiate yourself from them?

Additionally, look at how the local customers behave during specific times of the day. For example, your drive-thru coffee stand may serve an entirely different crowd than the area's popular breakfast or brunch café. Of course, customers can be price-sensitive. But customers are also sensitive to convenience, menu options, and customer service. 

I recommend you analyze your competition within a 2-mile radius of your proposed location. For example, your  drive-thru coffee shop competition may include:

Ask important questions regarding your competition:

• What is your competition doing right?
• What are they doing wrong?
• Where are their existing customers coming from?
• How can you better capture their attention?
• How can you differentiate yourself?

Your Competition Makes You Better

Figuring out your competition is critical to your drive-thru coffee stand success. So start analyzing your competition earlier in your planning. Visit them. Talk with them. Your competition isn't necessarily the enemy. Together you are likely part of a healthy market. Perhaps you can gain some vital information about the area and work with the city government and the community in general.

Competition does not necessarily mean a bad thing. Competition can mean a healthy and thriving local market. And a healthy market means profits for those that work to leverage their competitive advantage. So when you start a drive-thru coffee stand, expect competition and plan for it.

6. Getting a Drive-Thru Coffee Stand Structure

Decide if you will build, rent, or buy your drive-thru coffee stand structure. Each option significantly impacts your overall startup budget, time constraints, and access to available supplies and contractors.

Building Your Drive-Thru Coffee Stand

Building code requirements ensure that the structure is safe to operate. If you are unsure how to start, contact your state’s buildings department for structure requirements before beginning any work. Unless you are a licensed electrician and licensed plumber, you also may need to hire a licensed contractor in your state to ensure the proper installation of wiring and plumbing is done for commercial use.

While building out your drive-thru coffee stand from scratch is a viable option, building it out completely may take a while. So, consider the time involved in building a well-built structure and moving it to your intended site. Alternatively, you can buy an RV trailer or food truck and build your drive-thru operation using a mobile vehicle.

Buying Your Drive-Thru Coffee Stand

Next, you can also choose to buy a drive-thru structure that is new or used. Buying an existing drive-thru stand can speed up the process of opening your coffee business. A variety of online websites and sites like Craigslist may feature drive-thru coffee stands for sale. Read our article on How to Buy a Drive-Thru Coffee Stand.

Several manufacturers of drive-thru coffee stands can either sell you a stock or “off the shelf” drive-thru structure or build you a customized stand for your particular property and needs. Of course, you will want to also budget for transporting and storing your drive-thru stand.

Read our article, How to Buy a Drive-Thru Coffee Stand Business , for more in-depth coverage .

Leasing Your Drive-Thru Coffee Stand

Renting out a drive-thru stand is also a common and lower-cost alternative to buying or building out your own stand. If you are renting your structure, you may have to rent at a specific site, or you may have to move to your location of choice. Remember that your rental may also need upgrades, such as lighting, electrical wiring, plumbing, and installation.

Any of these choices are valid options. However, I want to caution you again that you should check your local agency’s regulations before building, buying, or renting. Everything from the width of your door to the type of wire gauge you have installed, the number of sinks you have, and your ventilation system will need to be signed off.

7. Find Your Coffee Vendors and Partners

If you have figured out your drive-thru coffee stand menu , you will know which vending partners to seek out to serve your customers best.

For example, if you plan to sell bagels, you will determine who can regularly provide you with a fresh assortment of wholesale bagels. Everything on your menu will require a wholesale source unless you make it yourself. 

Consider the following vendor questions:

• Where will you get your coffee from?
• Where will you get your muffins and doughnuts from?
• Which vendor will you get your paper cups, lids, and napkins from?

Developing professional relationships with your vendors or partners will be worthwhile. For example, choosing a wholesale coffee roaster will be a big decision for your coffee business. It takes time to visit with coffee roasters and determine what coffee blends are worthy of your business.

Aside from your labor, coffee, and rent, your supplies (such as lids, straws, napkins, plates, and cups) are among the biggest month-to-month expenses for a drive-thru coffee stand business. If you live in the U.S., you might decide to shop at a local Cash and Carry store, COSTCO, or another restaurant supply business. When you get your reseller's license, you can buy your inventory without paying sales taxes on those items – as long as its sole purpose is for your business.

For further reading, check out our article, How to Choose a Wholesale Coffee Roaster .

8. Choose Your Drive-Thru Coffee Shop Equipment

Your business cannot run without essential coffee equipment, from refrigerators to coffee grinders. Planning and budgeting for your coffee equipment purchases early. In doing so, you will feel more confident that you are choosing the right equipment at a good price.

There are several major pieces of equipment you will need to open a drive-thru coffee stand:

• Espresso Machine
• Coffee grinders
• Ice-machine
• Refrigerator

A Focus on Your Espresso Machine

Your espresso machine may be the most significant purchase.  Choosing the right espresso machine means estimating your space, speed, and capacity to handle customers' busy rush hours.

Espresso machines come in one-group to four-group heads. A one-group espresso machine will take up less space and power but will only serve half the volume of a two-group espresso machine. If you have a four-group machine, you must consider the size but the practicality of baristas working around each other to pull espresso shots.

If you estimate having a bustling drive-thru coffee stand, you might consider getting 2 two-group espresso machines that your baristas can work around.

An espresso machine can be costly, depending on the brand, number of groups, and bells and whistles. While you want to be mindful of your budget, I recommend buying an espresso machine for which you can easily find replacement parts. Your espresso machine will also require maintenance from time to time. Consider the accessibility of spare parts for your espresso machine before buying one. If you can't find parts, you may have to buy another machine if it breaks down.

Your Coffee Equipment: Menu, Physical Space, and Budget

While your espresso machine may constitute the biggest cost investment, other coffee equipment will be just as vital to your operations. For example, investing in commercial-grade coffee grinders will determine the quality of your espresso shots. Usually, coffee shops and drive-thru coffee stands have at least two coffee grinders – o ne grinder for the espresso blend and decaf coffee beans.

I have used various coffee grinders, but I like the Jolly Mazzer or Super Jolly Mazzer because they are reliable, have great burr grinders, strong motors, and take up less room.  If you want to window shop coffee equipment, I would check out equipment vendors like Seattle Coffee Gear, Espresso Parts, and Webstaurantstore.com. 

You will also have a water heater, water filter system, refrigerator, blender, scales, and ice maker.

For more information on choosing the right coffee equipment, read our article, Coffee Shop Equipment You Need For Your Coffee Shop .

9. Local Laws and Health Department Requirements

Knowing your local business requirements and regulations is critical to getting your drive-thru coffee stand business open successfully. In addition, knowing your requirements can save you lots of money in fees, fixing errors, and re-application costs.

Don’t be afraid to make calls to various departments. The few main departments you may need to work with are your buildings department, health department, and sometimes fire marshal office. Some communities compartmentalize municipal codes within these general departments.

Recommendation: You will be making repetitive calls, so start early and keep a list of who you need to call. Once you get a name and direct line, keep it!

If you have a free-standing drive-thru coffee stand, you will need a commissary and restroom facilities that satisfy your local health and building requirements – check that out, too. Every locale is different – but working with all these agencies is the same: stay focused, stay organized, and always follow up.

Talking with your local health department officials can really be helpful and informative. Don't be intimidated. Most of the time, these agencies are here to help you succeed.

10. Signing Your Drive-Thru Coffee Stand Property Lease

Unless you own a property zoned for a drive-thru business, you must rent the land to set up your drive-thru coffee shop.

Your leasing of the land allows you to operate your drive-thru stand in that specific location. Your lease may also allow you to have access to certain amenities like water, power, sewage, exterior lighting, parking spaces, and restroom access. Some properties may allow you to access the land but may not be hooked up to any utility company or access any nearby restrooms. You may have to pay to install the infrastructure to connect your utilities to get electricity, so consider the cost of this type of installation before you agree to a location.

Before signing your lease, consider the following:

• Property zoning
• Access to the city water lines
• Ability to connect to the power supply
• Close to restrooms
• Signage options

If you do not have water and power, you may still operate in the same manner as a coffee truck or mobile coffee unit. You would have to supply your water and power using freshwater containers and a gray water tank. A fuel-powered generator would generate the power supply. You want to know your ability to put up signs, billboards, or markers on your leasing property. Your signs will play an important role in attracting customers. Your leasing terms should be favorable and open to your ability to install signs. Realize that some cities may add on an extra occupancy tax for signs or have restrictions of their own.

11. Hire Amazing Baristas

Hiring amazing baristas will be your secret weapon. The quality of your staff hiring will directly translate to the success of your business.

We encourage you to hire baristas for personality , trainability, and reliability rather than experience. Although experience is important, we believe that you can't train for personality. However, you can train for skills. Therefore, hiring bright, energetic, and personable employees is essential to your coffee stand's success. 

A good employee can help keep your business afloat. An excellent employee, however, can make your coffee business very profitable .

On the other hand, a horrible employee can slowly sink your coffee business into the depths of disaster. Theft or giving away drinks to friends, wasting drinks, practicing poor equipment maintenance, or delivering poor customer service can quickly spiral out of control.

Many coffee stand owners get everything right except hiring the right employees. Often, even if drive-thru coffee shop owners see potential problems with their employees, they put off dealing with it because they don't like to fire people or are afraid to be confrontational. 

Excellent Service Starts With Your Hiring Choices

Start a drive-thru coffee stand to provide excellent customer service with every transaction .

A drive-thru coffee stand business will set itself apart from the competition by its marketing, convenience, quality. Of course, your price point matters, too, but people on the road want their coffee fast and served in a manner they can’t get at home. Your goal as a drive-thru coffee stand owner is to consistently provide reasonably priced coffee with excellent service. This is what it's like being in the hospitality industry. Those who provide the best hospitality service will be better positioned to thrive. 

You can do this by decreasing your waste and generating efficiencies. Hiring great employees will be important to keep your prices low because it decreases waste and generates efficiencies. Additionally, training baristas can shave off important seconds per serving and boost the quality of each espresso beverage you serve.

Pro tip: Speed and accuracy are critical in running a drive-thru coffee stand. If you are running a very busy drive-thru, have one of your baristas take orders, work your coffee shop POS system , and prepare the paper cups and syrup shots while the other barista pulls shots and steams the milk. Having one barista work the money and keep your POS register clean and constantly wiped down with disinfectant will help move your customers out faster and safer.

12. Build a Great Drive-Thru Coffee Shop Brand

Plan your coffee business marketing and outreach early. Not many coffee business owners actively think of having a marketing campaign, but it may be worth it.

The success of your marketing efforts will drive up business and brand awareness. To begin, create an attractive drive-thru brand with a catchy and appealing logo.

Many of your first-time customers will decide within seconds if they want to be your customer as they drive by. Consider a fresh paint job, trim any foliage, and make the exterior as bright and appealing to the customer’s eye as possible.

You want to create a brand that is attention-seeking. You want your customers to say: “Oh, I want to stop there for coffee!” Once you develop your coffee shop brand , you will want to protect it and develop it as your business evolves.

When marketing your drive-thru coffee stand, it’s not the time to be shy. Invest in bright, catchy signs and good lighting.

Additionally, relatively simple marketing actions can be easy to start.  Starting your own coffee shop website to help you get the word out, market to potential customers, and develop your branding platform are excellent examples. Setting up a coffee shop website is an easy, affordable, and very effective way to get your marketing off the ground.

13. Set a Date for Your Grand Opening

It's time to get excited!

Your drive-thru coffee stand Grand Opening will be an important event! Make it count! Your grand opening marks not the end – but the beginning of your business planning – and your coffee business success!

You don’t have to spend much money to make your coffee stand grand opening effective. You have to spend adequate time planning and utilizing the resources available to you.

Your grand opening can generate excitement, buzz, and sales! And that means profits! That means you have the ability to pay for your light bill!  Allow yourself to learn from your “soft opening.” Determine your weaknesses, strengths, and opportunities – and make the appropriate changes.

Take time to plan out your grand opening: You are, after all, announcing your baby project to the world! Talk to local newspapers, bloggers, and television stations. Buy balloons, signs, etc. Invite local schools, businesses, or groups to your drive-thru coffee stand grand opening .

14. Strive Always to Be Better

Congratulations, you are well on your way to starting a successful drive-thru coffee stand business! While it will take a lot of planning, money, and effort to get this far. You will realize that this is where the fun starts! Operating a drive-thru coffee stand is a process.

There is always something to improve. Commit always to be better. To offer better service, pour better coffee and lower inefficiencies. Take the time to listen to your customers, employees, and the data telling you to increase your managerial skills. Sometimes, you will need to improve your customer service or make something right with the health department. Learn from each experience and strive to be better.

Starting an independent drive-thru coffee shop or a franchise is an available option for jumping into retail coffee. It's best to prepare yourself for either business concept.

Additional Drive-Thru Coffee Stand Business Questions:

What are the special factors important to operating a drive-thru coffee stand.

To operate your drive-thru coffee stand, you will need a few things for you to deliver your coffee.

These items include:

• Power (electrical, gas, or propane)
• Water (plumbed or self-contained)
• Restrooms need to be available for you and your employees
• Commercial commissary

WITHOUT these four basic listed items, you will not be able to serve coffee in many U.S. cities and counties.

If you have already considered several locations where you would like to set up your drive-thru,  you will have to determine whether or not you will have access to water and power. 

Does my drive-thru coffee stand need a commissary?

In nearly every potential location available to your drive-thru coffee stand, you will need a commissary agreement as mandated by your local health department. In addition, your menu often dictates if a commissary is needed. For example, if you bake your cupcakes or make your own hot sandwiches, you will need a commissary.

You may be able to avoid having a commissary if your drive-thru coffee stand by simplifying your menu. Your drive-thru stand must also be equipped with essential equipment, such as a three-compartment sink, a hand-wash sink, a mop sink, and enough hot water to rinse, wash, and sterilize your utensils and milk pitchers. 

Depending on where you are located, you may find a commissary nearby or have to look for one nearby. The type of commissary you need ultimately depends on what's on your coffee menu. For the most part, your commissary will require multiple sinks, a place to wash and sanitize your dishes and utensils, and prepare and store your food.

As you narrow down your location options and plan your coffee shop, make sure that these basic issues can be satisfied before you choose  a spot. If they can’t be satisfied, look elsewhere. You can pay to rent commissary privileges at a commercial commissary or rent space from a  local restaurant or community kitchen.

How do I compete with the stiff competition?

Stay laser-focused on your customer ..

By staying customer-focused (satisfying what they want and what they need and how they need it) then, your coffee business has an excellent opportunity to thrive in any competitive environment.

Lean on your competitive advantage .

As you develop your coffee business, you should figure out what will make your coffee business unique or special. Whether it’s the choice of your coffee beans, your drink options, or your customer service, you should focus on that “one thing” that makes you special.

Anticipate competition.

There will always be competition. Whether it’s an existing coffee shop, fast food place, or a new coffee business coming in. Competition is part of the game. This puts pressure on you to deliver delicious coffee and great customer service at a reasonable cost daily.

Additionally, anticipate that your competition will adapt to entering the “their” market. Whether they decide to lower prices, offer new products, or re-focus on their competitive advantage, you should know that your entrance will generate a response from your competitors.

Adapt to a changing market.

Whether you have a changing customer base or are experiencing new coffee trends and tastes, you must adapt. Change your menu. Update your seating layout. Offer a new choice, music, etc. Listen to your customers and what they are asking for. However, we recommend not adapting to be more like the competition. Instead, adapt to satisfy your customers.

Be thoughtful before choosing a coffee stand location.

Placing your drive-thru coffee stand business right in the middle of a major coffee chain location and a well-established independent coffee house may not be the best idea.

Ask yourself, are customers in this area looking for coffee? Are there their needs already being met in one way or the other?

How Much Will it Cost to Start a Drive-Thru C offee Stand?

Your business concept, among other things, will determine the overall cost of your drive-thru coffee stand.   

Cost factors for your drive-thru coffee shop:

• Your concept
• Ideal location
• Size of your stand
• Cost of build-out
• Menu items (and coffee equipment)
• Lease terms

A drive-thru coffee shop business can cost between $15,000 to $250,000, depending on your business concept and how you plan on developing it. This is obviously a super-wide cost spectrum! 

However, as you develop your concept and business plan to complete it, the actual cost estimates will begin to shape.

Drive-thru coffee stands business startup costs vary depending on size, location, menu, and amenities. While opening a drive-thru coffee stand may not be as expensive as opening a new coffee shop from scratch, it can cost a substantial amount of money if you decide to “Go Big.”

Additionally, some costs can’t be avoided when starting any type of coffee business, including a drive-thru coffee stand. However, depending on your overall drive-thru coffee stand concept and location, you can significantly reduce your overall startup costs.

There are two general categories of costs for your drive-thru coffee stand:

• Startup Costs
• Operational Costs

Sample Drive-thru Coffee Stand Startup Costs:

These are just sample-scenario drive-thru coffee shop costs..

This general list does not include every one-time payment you may encounter. Additionally, the costs listed above may be higher or lower for your coffee stand business, depending on your concept, equipment needs, location, etc.

Your initial drive-thru coffee stand's startup costs will often be paid only once. This includes paying for your espresso machine, coffee grinders, or drive-thru coffee stand structure.

However, the payment method may require you to include them in your ongoing operational costs as well. For example, if you take out a loan for $10,000, you will most likely pay principal and interest every month on that loan for a given period of time. Therefore, that monthly interest will be included in your operational costs.

For more information, please read our article, Understanding the Costs of Starting a Coffee Shop.

Secrets For a Profitable Drive-Thru Coffee Stand

The following are tips to increase your drive-thru coffee stand sales, revenue, and profitability. Doing one or more of the following will help you achieve your revenue goals.

Eliminate Waste

Waste plays a big role in shrinking your profit margins. Wasting milk, coffee grounds, paper napkins, and cups can add up every day, week, and month. You’d be surprised at how much waste can be eliminated by looking at your workflow and how you and your baristas work. Training your baristas will help you eliminate waste and return your profit margins to your original estimates.  

Optimize your Scheduling

Hiring is a big role for any drive-thru coffee stand owner. Finding the right balance in hiring and scheduling your baristas is uniquely important, which will either optimize your customer service and revenue or drain your margins. Having a good coffee shop POS system will provide you with some data you’ll need to make these decisions.

Better Signage

Having colorful or eye-catching signage at well-positioned points can help to increase the flow of customer visits.

Customer Service

Delivering excellent customer service every time will drive repeat business. Customer service includes adequately training your employees and preparing them for high peak times that you will probably encounter.

Utilize Data

The data collected by your coffee shop POS system will help give you the information you need to make better decisions. Things like avoiding ordering items that don't sell or pricing out your items with better margins.

Start a drive-thru coffee shop

Your drive-thru coffee shop is waiting, your action plan to start a drive-thru coffee stand.

Here are a few quick action steps you might consider taking to get your coffee stand business started:

1. Give your drive-thru coffee shop a name.

I believe that if you name something, it becomes real. So, take the first step in making your drive-thru coffee stand a reality and give it a name! Additionally, consider buying your domain name with a company like BlueHost.

2. Learn everything about retail coffee.

Learn from existing or former coffee shop and coffee stand owners.  This is by far the best way to invest your initial time and effort. Introduce yourself and ask questions.  We make learning about opening your own coffee business very convenient in our Complete Coffee Shop Startup Kit .

3. Develop your drive-thru coffee stand planning.

Ask yourself the following questions:

• What is your vision for your drive-thru coffee stand?
• What menu items will you serve? (Be specific)
• Where will your location be?
• Who are the competitors at your planned location?
• Which vendors will you be working with?
• What coffee equipment will you need?

4. Start writing your coffee shop business plan.

This step takes you from a coffee business “dreamer” to an actual coffee entrepreneur. To help you start your business plan, we offer a coffee shop business plan template in our Complete Coffee Shop Startup Kit . Additionally, you want to read How to Start Writing Your Coffee Shop Business Plan .

How to Start a Drive-Thru Coffee Stand

(A Summary)

• Look for opportunities
• Start small and then work your way out
• Plan before diving in

Many different drive-thru coffee shops can work, depending on your area. Let's summarize the steps to open a drive-thru coffee stand below:

• Determine your drive-thru coffee shop concept.
• Write a coffee shop business plan.
• Develop your drive-thru coffee shop menu.
• Find a perfect drive-thru coffee stand location.
• Consider your drive-thru coffee stand competition.
• Get your drive-thru coffee stand structure.
• Find your coffee vendors and partners.
• Learn about your health department's requirements.
• Sign your drive-thru coffee stand lease.
• Hire amazing baristas.
• Build a great drive-thru coffee shop brand.
• Set a date for your grand opening.
• Strive always to be better.

Are You Ready To Get Started?

Unlock Your Dream Coffee Shop Business with Our Drive-Thru Coffee Business Ebook!

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Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully.

Over the last 10+ years , we’ve helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits.

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Coffee flows from barista to consumer in a variety of ways and settings, including coffee shops, coffee stands, and coffee kiosks.

Each serves a great cup of coffee and a purpose for both consumers and operators.

Benefits of a Drive-Thru Coffee Kiosk

A major advantage a drive-thru coffee kiosk has over a purely sit-down coffee shop is that the kiosk can serve more customers.

For customers, a full coffee shop can be a gathering place and a spot to hang out, while a coffee kiosk can be a convenient way for people on the go to grab a cup. For entrepreneurs, a kiosk is also an amazing opportunity to enter the coffee world at a low investment.

A Statista report found that drive-thru coffee orders have increased over the past five years and that 46 percent of people bought coffee at a drive-thru the day before.

Consumers commuting to and from work or running errands want an amazing cup of coffee at arm’s reach.

Lower Costs

The costs are generally lower to open a kiosk.

The real estate investment is significantly lower for a drive-thru than for a traditional coffee shop because a kiosk simply doesn’t require as big a footprint as a coffee shop. The kiosk also doesn’t need to be embedded in an expensive, trendy neighborhood to capture foot traffic; it need only be easy to access and visible, in an area with the right demographics.

A drive-thru coffee kiosk needs fewer employees than a coffee shop, reducing labor costs dramatically. Interior decor and furnishing costs are non-existent in a kiosk. And even less equipment may be necessary than in a coffee shop, depending on the menu.

Scooter’s Coffee’s® more than 300 locations include both models, a coffee shop and a drive-thru kiosk. Each offers outstanding opportunities for entrepreneurs, according to a report by QSR . The investment to open a Scooter’s Coffee ranges from $381,000 to $587,000, depending on the model, and includes the franchise fee of $40,000.

A kiosk concept also can lend itself to scalability for multi-unit franchising. Customers become familiar with the brand and rely on the sameness of each unit’s ability to give them the amazing coffee they want.

How to Get Started

If you choose to buy into a franchise brand, you essentially can skip this section, because the company will have a system in place to get you rolling.

But, if you are opening an independent kiosk, you have a lot of homework to do. First, decide what your level of offering will be. Will your drive-thru coffee kiosk offer sophisticated drinks or just basic coffee? Will you offer baked goods or other foods?

Analyze the market. Who are your competitors, where are they, and what do they offer? How will your business be organized, managed, and staffed? How will you handle marketing? What about funding and financial projections.

Where will your kiosk be located , and why?

These considerations and a number of others will go into your business plan .

As for opening the kiosk itself, you can borrow from a lot of the advice for opening a coffee shop .

The Rewards

Because of the lower costs of launching and operating a coffee kiosk, along with the higher volume a kiosk can serve, the potential profit margins look very good.

For example, a Scooter’s Coffee kiosk can bring in an average unit volume of $761,277 annually, with a 26.3 percent net profit margin. Labor cost for a kiosk typically runs an average of 21.6 percent. Owners of Scooter’s Coffee saw an average of 11.62 percent year-over-year growth from 2018 to 2019.

All in all, a drive-thru coffee franchise makes a lot of good sense for entrepreneurs entering the coffee market.

Scooter’s Coffee has been serving up delicious coffee, tasty treats, and genuine smiles since 1998. Visit OwnAScooters.com today to learn more about joining the Scooter’s team and making your dreams a reality.

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Download Now: Ultimate Drive-Thru Coffee Kiosk Business Plan PDF

Planning to start a drive-thru coffee kiosk or shop? Then you owe it to yourself to draft a well researched business plan. While a drive-thru kiosk is lower in cost than opening a retail store, be prepared to invest $40,000 at least before you open the serving window to your establishment for the first time. Your overall startup costs will likely be around $100,000 depending on the permits, insurance, equipment, location, size of the kiosk and design. Bottom line you need to take a coffee shop startup seriously because we’re talking about real money here.

When you approach researching a business plan the right way, it increases your odds of success. A real business plan takes time to prepare and eventually birth into the world. The point of the planning process is not to check off boxes to show you did something like you may have done for a course in college back in the day. Instead, the entire point is to better understand the business you’ll be operating. After you complete your business plan you should have answers to the following important questions:

• How do I plan to bring in customers to my business?
• What if my first idea to attract customers doesn’t work as well as I though (gasp!)? Do you have a back-up plan to make sales?
• How much will it cost to start my coffee kiosk? What equipment will I need to invest in?
• Where will I source my coffee, cups, stir straws?
• Will I have employees or do all the work myself?
• How much net profit can I expect to make per cup of coffee?
• How will you differentiate your business from the nearby Starbucks location?

If you can’t answer the questions above than you haven’t done enough research yet. Fortunately, by following the steps laid out in this business plan training document, you’ll be able to find answers to each of these questions.

At the bottom of this post you’ll also find helpful PDFs and business plan examples for coffee shops. We recommend taking the opportunity to look under the hood of these plans and see how these other coffee businesses operate profitably. With the increased footprint of nationally recognized coffee brands like Starbucks or Caribou Coffee, it won’t be easy to launch your own premium coffee shop. But through careful planning, an ability to create a unique customer experience, and determination to work your butt off it is possible to create a thriving coffee business!

Attractive Drive-Thru Coffee Shop. Photo Credit: Pinterest

Key Components of a Coffee Kiosk Business Plan 

Executive summary .

Think of the executive summary as a quick explanation of your business. After reading the executive summary, the reader should come away with a clear understanding of what service or product need the organization provides. In other words, you’ll briefly describe you are doing and how will you make money.

While you’ll want to spotlight unique advantages in this section, save the detailed supporting evidence, including charts and graphs for future sections of the report. Another way to think about this section of the business plan is like the back cover of a novel. When you read the back cover of a book you expect come away with an understanding of what the story is about, but you’ll need to read the book to get the full story and details. The same goes for the executive summary.

Since the goal in writing your business plan is to open a drive-thru coffee shop, the organization of this section is less critical than someone requiring a few million to launch a business idea.

You will likely be using this business plan as a way to get clear on the costs, operation plan, and details of your future business, not secure millions in capital. This section is still a requirement for future kiosk owners, however, as you’ll in most cases need to provide a business plan to demonstrate seriousness and viability.

While you shouldn’t be overly concerned about the structure of this section, Inc.com   offers   good suggestions for the content of this section. A description on how this section might look for a coffee business is below:

Company Description

Natural Blend’s Roasters is a drive-thru coffee shop that will serve sustainably sourced and organic coffee’s to residents in Temecula, California. The company will differentiate itself by telling the story of it’s coffees sourced from around the world. In addition to offering flavor profiles and taste combinations not available elsewhere in the city, we will contribute 5% of all revenue to charity.

The problem.

Temecula, California, is covered in chain coffee shops (Starbucks, McDonalds). The competition does not offer organic, sustainably sourced coffee offerings. This is also an area traveled by commuters that drive to San Diego or Los Angeles for work Monday – Friday. Some coffee shops do not offer drive-thru service that are more convenient for this group.

Your Solution

Our goal is to fill the gap in this area by offering a fast and convenient naturally sourced coffees that are not available elsewhere. Our coffee kiosk will be located just off the I-15 freeway enabling commuters to quickly purchase a cup of coffee and light breakfast.

The city of Temecula has steadily grown in population since the 1990s. In 1990, the city had only 27,000 residents. Fast forward to 2016, the population was 113,000. More families continue to move to the area in part due to more affordable housing in Southern California. Although housing is affordable, many high-paying jobs are located in San Diego or Los Angeles areas meaning that many of the residents commute 5-days per week.

Natural Blend’s Roasters plans to establish a brand in this growing Southern California town that does not currently have competition in the organic coffee space. We intend to build our brand in Temecula and expand to other nearby Southern California cities. 

Outdoor Coffee Kiosk. Photo Credit: Pinterest

Company Description 

The company description comes right after the executive summary. Here you will offer additional detail about your company that was not already covered in the summary. Some details you should include in this portion includes your coffee shop’s location, how large the company is, and what you plan you do.

You’ll also need to provide a brief mission statement in this area. This statement should be brief and provide an overarching direction for the business.

Mission Statement: We seek to provide an organic, responsibly sourced boutique coffee blends unavailable elsewhere in the Temecula / Murrieta area.  We will serve our customers with a drive-thru coffee kiosk that will make this offering more convenient for our customers and seek to make our community a better place.

Market Analysis For a Drive-Thru Kiosk

The market analysis will evaluate key components critical to your small business. First, you will research the market size where you plan to operate. Fortunately, you don’t need to live in a big city to make a family-run coffee shop profitable. A town with 20,000 residents or more can provide a sufficient customer base. Thanks to the power of the internet, you won’t need to invest much time researching the market size and demographics. A few quick Google searches should yield the information you need for the first part of the market analysis like the one below:

Natural Blend’s Roasters will be located in Temecula, California. As of 2016, the population of Temecula was 113,000. Since 1990, the city has continued to grow by over 2,000 residents per year. We anticipate continued population growth over the next 5 years, which will benefit our business and bring in more potential customers. The median age in Temecula is 34 years of age. Roughly 68% of the population considers themselves Caucasian, 10% Asian, and 4% African American. There is also a significant Hispanic population as well.

One of the other advantages of operating in Temecula is that is has become a weekend destination for residents all over Southern California. Each weekend thousands of visitors drive to the Temecula Wine Country to enjoy wineries and dining. A significant number of breweries have also popped up in recent years that are attracting even more visitors. Our location off of the I-15 freeway will make us highly visible to visitors and offer a unique coffee experience that’s not available anywhere else in the area.

According to recent reports , coffee is consumed even more frequently than it was 5-years ago. On average in the United States, coffee drinkers consumer 3.1 cups per day . Independent coffee shops in the United States contribute $12 billion in annual sales. We hope to take a cut of this growing market within the Temecula / Murrieta area.

In the next section of the market analysis plan you will evaluate the strengths and weaknesses of local competitors. You should be looking for ways to integrate strengths and learn from what other coffee shops are doing wrong to serve unfulfilled needs locally.

Competitor #1: Starbucks – Globally recognized coffee chain with multiple retail and kiosk locations inside of grocery stores and Target.

Strengths: 

• Brand recognition
• Over 10 locations in the Temecula / Murrieta area.
• Customer loyalty.
• Consistent product offering and experience across locations.
• Free Wifi for guests.
• Some people don’t like Starbucks coffee.
• Market saturation. There are over 10 locations / kiosks in the Temecula / Murrieta area.

Competitor #2:  The Liquid Leaf – Independent coffee shop located in Murrieta.

• High-quality coffee.
• Wide variety of high-quality teas.
• Nice and comfortable interior.
• Less market awareness than other shops.
• Single location, independent shop.
• Some people incorrectly believe they only serve tea.
• No drive-thru service.

Competitor #3:  Intazza Coffee Works – Honest Trade coffee shop located near a well attended church and business park.

• Beautiful and spacious coffee shop.
• Wide selection of cold brews, coffees, and small plates.
• High-traffic location.
• Strong overall branding and mission statement.
• Wine, beer, and music on Friday nights.
• Near other independent coffee shops.

Organizational Structure and Management

This is your opportunity to define the team member roles inside your organization. If you’re starting a small drive-thru kiosk, the initial management structure may be very simple: You’ll the be the CEO, head barista, and janitorial staff all in one! If this sounds like your situation, you won’t need to invest much time into developing this section of the business plan.

We also know that many of you will be running this business with a family member or partner. Even if you plan to operate the kiosk as a true two-person partnership this is a terrific opportunity to define clearly define each persons role inside the business. A clear role definition between partners is essential to ensure you’re both on the same page and prevent future issues.

In the planning stages of a business, it can be easy to overlook the often mundane aspects of operating a business. For example, who will do the book-keeping on a regular basis? How much will each business owner be paid as a salary? What days and hours will each part of the business? Who will be in charge of marketing? How will be in charge of ordering more coffee beans from the supplier? Getting the responsibilities of each partner on paper helps to clear up future misunderstandings that will happen after opening the business. This also helps to prevent feelings that one partner is working harder to make the business succeed than the other.

In addition to partners of the business, you’ll need to list employees and advisers you’re bringing on advise the business. If you hire an experienced mentor to offer coaching in the early days it can also help you to secure a loan because you’re business is more likely to succeed and help demonstrate seriousness.

Finally, here’s an example of how simple the organizational structure could look in a partnership in a small coffee shop:

Sally, Co-Founder / Owner. Roles: Handles day-to-day management of coffee shop Monday – Friday. Orders supplies and maintains inventory for business,

Betty, Co-Founder / Owner Roles: Manages book keeping / accounting for business, Day-to-Day management of coffee shop Saturday – Sunday. Secures catering, events, and completes marketing for the business.

Charles, Part-time Barista – Employee, Roles: Serve customers, make coffee, clean kiosk, provide excellent customer service.

Pete, Part-time Barista – Employee, Roles: Serve customers, make coffee, clean kiosk, provide excellent customer service.

Product Line 

Here you will list the types of coffees and food items you plan to serve at your coffee kiosk. In addition to beverages, it’s a wise idea to offer snacks or quick breakfast items to increase your average order value and total revenue for your business. Don’t feel obligated to make these side items yourself. If you notice with Starbucks, the food items are all pre-made and only need to be heated before served to customers. By serving already prepared items you remove preparation time, employee salaries (associated with food prep), and ensure faster service for customers. Here’s an example of what your menu might look like for a drive-thru coffee stand:

Note: Don’t forget to be as specific as possible in the business plan on where you plan to source products. If you have time, research your options for similar products from other vendors. In the event one of your vendors increases prices or goes out of business, you’ll already know where you can turn to source alternative products and keep things running smoothly.

Refuge Coffee Co. Food Truck.

Funding Request

In this section, you’ll list how much money you’ll need to borrow or raise to get the business started. In addition to the total dollar amount you’ll need to get started, be as specific as possible where you plan to invest the funds. Acceptable places to invest include coffee equipment, the building, rent, or inventory.  Whether you’re planning to raise capital through a bank loan or an investor, these individuals want to feel comfortable that money is being put toward a good use. Below is an example of a funding request for a coffee shop of any size:

Coffee Shop Funding Requirements: 

Bunn Axiom APS Twin Commercial Airpot Coffee Brewer – $1,399.00

Rancilio MD 40 Commercial Burr Espresso Grinder – $900.00

Refrigeration Unit – $1,500.00

The Oracle Touch Espresso Machine – $2,499.95

Vollrath 40701 Cayenne Half Size Counter Top Convection Oven (230v) – $1,309.05

Water Filtration System – $2,750.00

Custom Coffee Shop Kiosk Build – $30,000

Working Capital: $15,000

Total Funding Requirements: $55,358

Note: Small businesses are almost never fully funded through outside sources. Both banks and investors will want you to have “skin in the game” by investing a significant portion of your own money into the startup. Business owners often use their personal savings or tap into their 401K to get the initial capital needed to fund their business.

Financial Projections for Coffee Kiosks

In this section, we are going to cover what is arguably the toughest part of the business planning: Estimating how much revenue you’ll make. This process is part science, part art, and some educated speculation too. Until you get out there into the world and start asking for money in exchange for your product or service, you never really know how it’s going to work so be ready to adjust these financial estimates in the weeks and months after you open.

While estimating the future revenues of a business that does not yet exist is difficult, that doesn’t mean it’s unimportant. This section will provide you with insight into the sales volumes you need to achieve a break-even point after expenses. This section forces you to take a hard look and determine the financial viability of the business before taking another step forward.  By the time, you get done projecting your sales figures, you may determine this business opportunity is ultimately not for you. That’s totally okay! You’ve got to make sure you’re starting a business with the potential to provide the lifestyle you want.

Income Expectations

In this area we’ll evaluate how much you can expect a drive-thru coffee shop to make in revenue each year. There are a few ways to being your research in this area. The first is simple enough start researching how much income independent coffee shops generate annually. According to this report from 2011 , the typical coffee shop generated $500,000 in annual revenue.

While this might sound like a pretty good annual revenue, keep in mind that these don’t offer much context to each coffee shop’s situation. These reports don’t tell you where the shops are located and how long they’ve been in business. The other flaw with being average is understand that half of the coffee shops make less than this number annually. It’s also a harsh reality that more than 50% of coffee shops will close their doors within the first 5-years of business.

When estimating revenue numbers for a small coffee business, we recommend being conservative with your sales figures. Even with the best spot in town, it will take time people to discover you. Here are some estimates that will influence your own sales figures:

Hours of Operation:  The longer you’re open, the more opportunity you have to generate sales. That being said, you probably don’t want to be open 24/7 because that would be both exhausting and higher in cost from a labor standpoint. Most coffee shops do the majority of their sales in the early morning and afternoon hours so we’ll assume the same to be true for your business.

You’ll also need to consider how many days you’ll want to be open each week. You’ll also need to ask yourself if you want to be open major holidays like Thanksgiving and Christmas Eve. While you may decide to be closed for certain holidays that is perfectly acceptable. Just make sure to account for these days off in your planning as you won’t make sales on days you’re closed.

Estimated Daily Sales for a Coffee Kiosk: 

Below is an example of hours of operation for a coffee kiosk.

5 a.m. – 3 p.m. Daily. – 10 hours per day. 7 Days per Week.

Using these hours, you have 70 total vending hours per week assuming no holidays. To keep the numbers simple, let’s estimate that you plan to sell 100 large cups of drip coffee per day at $3.00 a piece. This means you’re expecting to sell 10 cups of coffee per hour on average. At this rate, you’ll generate $300 in sales per day. This is a pretty conservative number considering many customers will order more than one cup of coffee or a snack. Still, these conservative numbers are smart approach when determining the viability of this business.

$3.00 Average Sale X 10 Average Transactions Per Hour = $2,100 per week in average revenue. Applying some basic math you would be yielding $8,400 per month. Annual sales numbers would be $100,800. Again, these numbers assume you are open for business 365 days per year and sell the same amount each day.

At this stage in your business, it’s acceptable to play around with the numbers a bit. Understand how much extra revenue you could generate by increasing your average order value to $4.50 instead of $3.00. Estimate what you business would look like if you increased average transactions per hour to 15 (not an unrealistic number for a coffee kiosk).

In reality your sales volume will change on different days and times of the day. Here’s a closer to real-life example of what a daily sales of a well-run coffee kiosk might look like:

• Monday:        $400
• Tuesday:       $275
• Wednesday:  $225
• Thursday:      $525
• Friday:           $600
• Saturday:      $800
• Sunday:        $600

Total Revenue:  $3,425 for the week (Or $13,700 per month, or $164,400 per year.)

Factors that Directly Influence Future Sales: 

As a business owner there are plenty of things you can do to increase revenue of a business. Here are some of the options available to you to increase revenues:

• Location: If you’re located in a busy parking lot next to a grocery store or off a major highway, you can expect to generate more sales. Finding the right location for your business is critical for it’s success.
• Average Order Value: If you’re able to increase the average sale amount, you can add a lot of money to the bottom line at the end of the year.
• Frequency of Visitors: In addition to finding more customers, getting the same customer to visit your kiosk 2 – 3 times per month can really increase bottom line metrics.
• Marketing: This broad category includes your signage, personal relationship, networking skills, and social media marketing skills.
• Catering and Event Business: By adding a catering arm to your coffee business, you can immediately add thousands in annual revenue to your small business. The success of catering and event businesses can be the difference between success and failure for coffee cart businesses.

Expenses For a Coffee Kiosk

Startup Costs:

• Drive-Thru Coffee Stand: Pricing depends largely on size and type of structure. Kiosks, carts, shipping containers, trucks and stands can all be utilized for this business.
• Construction: Curb modifications, landscaping, lighting, electrical or signage installation.
• Coffee Shop Equipment: Espresso machines, water purification systems, refrigeration units.
• Initial Inventory: Coffee beans, creams, syrups, cups, straws, sugar, napkins.
• Point-of-Sale System / Cash Register

Total startup costs are extremely variable. On the low-end you can start a drive-thru coffee kiosk for around $40,000. After considering minor construction updates to the vending area and commercial grade coffee equipment you can expect to pay $100,000 – $150,000 all-in for startup costs.

Monthly Business Costs:

• Cost of Goods Sold (COGs):
• Debt Payments (If Any):
• Accounting / Bookkeeping:

Additional Resources 

Business Plan Template : Looking for more examples of a business plan that you can download? Check out our previous podcast interview / template created by a food truck vendor.

POS System : If you’re planning to open a coffee kiosk, you’ll need a way to accept credit card payments fast and safely. Learn more about the point-of-sale systems we recommend for food and beverage businesses.

Coffee Business Startup Costs : An estimate of all he costs associated with opening a coffee business.

How Much Does a Drive-Thru Coffee Stand Make in a Year? : Annual estimates and opinions from a variety of folks on Quora.

Looking for additional resources to help you start a coffee kiosk? Here’s some of the best we’ve found published online. The PDF below for a company called The Daily Perc is worth checking out while you’re still in the business planning phase.

Want to start your own food business?

Hey! 👋I’m Brett Lindenberg, the founder of Food Truck Empire.

We interview successful founders and share the stories behind their food trucks, restaurants, food and beverage brands. By sharing these stories, I want to help others get started.

If you liked this story, sign up for our newsletter that includes our food business startup kit and most popular interviews sent straight to your inbox.

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About the Author: Brett Lindenberg

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How to Write a Coffee Shop Business Plan + Free Template

You are a smart entrepreneur. You don’t jump right in and open a coffee shop just because you decoded the secret of making perfect cups of steaming delicious coffee.

Instead, you wait and plan to write a unique business plan that resonates with your coffee shop’s concept.

But hey, writing a business plan is actually complex. Without any structural format or direction, you may end up making a hotchpotch of your business idea.

To ensure that your business concept translates properly into a plan, we created this step-by-step guide that will prompt you to write an insightful coffee shop business plan in great detail.

Also, get a free coffee shop business plan template that has all the relevant examples for you to get started.

So get yourself a cup of coffee and decode the secrets of writing a stellar plan in easy steps.

Let’s get started.

Key Takeaways

• Craft a compelling executive summary for your coffee shop business plan. Add key details regarding financials, marketing, business objectives, and operations to help investors evaluate your business idea.
• Conduct thorough research on the coffee shop market by analyzing the key trends, consumer preferences, and needs of your target market.
• Streamline your coffee shop operations with a detailed plan outlining the standard operating procedures of your key business processes.
• Ensure the compliance of business by acquiring essential licenses and permits.
• Design a brief sales and marketing plan to ensure that the coffee business reaches its target customer and starts making sales.
• Identify your unique selling proposition and determine your competitive edge in the market.
• Using SWOT analysis, analyze the strengths, weaknesses, opportunities, and threats of your competitors and your own business.
• Create a sample menu and determine your menu offerings by considering varying different aspects.

Why Prepare a Coffee Shop Business Plan?

A lot of variables play together to write the success story of your coffee business.

From choosing a shop location to remodeling it as per your unique concept, hiring staff, determining sales strategy, acquiring licenses and insurance, and planning operations-you need to undertake multiple activities, consecutively at a time, to start and run a coffee business.

A business plan will guide you like a map in the right direction. It will ensure that all the business objectives are achieved without breaking a compliance code.

It forces you to assess the viability of a coffee shop idea before you invest the money in it. You can strategically plan the coffee shop’s success by making detailed financial projections relating to the company’s sales, revenue, costs, and expected expenses, and cash flow.

And most important of all, a business plan will help you acquire the required funds by winning the trust of potential investors.

How to Write a Coffee Shop Business Plan: A Complete Guide

Let’s walk through the process of writing a coffee shop business plan with detailed step-by-step instructions.

1. Get a business plan template

Writing a business plan from scratch is pretty exhausting. You are likely to leave behind an important detail without any structural format.

So do yourself a favor and get a business plan template. Trust us, it’s going to make your plan writing process so much simpler.

A template helps bring clarity and focus to different sections of the plan by prompting you in specific directions. Moreover, the templates contain examples and tips specific to coffee shops making it extremely relevant for your business.

Looking for a well-structured and modern business plan template?

Well, we knew you would. Presenting the Upmetrics business plan template that can be easily customized for your unique coffee shop business. Simply download our template and modify it as per your business concept.

Need Assistance Writing a Coffee Business Plan?

Get Upmetrics’ business plan template, import data directly into the editor, and start editing using Upmetrics AI Assistant.

Start Planning Now

2. Write an executive summary

An executive summary is like a north star of your business plan. It will act as a guiding light for stakeholders to understand your journey ahead.

Investors will read the executive summary of your coffee shop business plan before even allowing you a presentation.  So definitely it needs to be compelling and converting.

Keep your executive summary concise but detailed enough that it summarizes the key points of your entire plan. Include the problems you would be solving and the solutions you have to offer. Adapt a storytelling tone and focus on highlighting the business goals, financials, objectives, and overall business strategy.

Now, move ahead and visit this part when you are done writing for the entire plan. Summarizing becomes much easier and more effective when you are aware of the entire plan’s details.

Also, two pages are more than enough for writing a capturing executive summary.

3. Conduct a competitive and market analysis

Build a strong foundation for your coffee business by diving deep into the market research of the coffee industry, competitors, target audience, market trends, and your attainable target market.

Analyze the coffee shop industry from a macro viewpoint and then gradually narrow it down to your particular market. For instance, the revenue in the US coffee market size was $85.2 billion in 2022 and is expected to grow by 3.21% between 2023-2028.

Now, identify your targeted available market (TAM) from this and analyze the growth potential of your particular coffee shop. Overall, try to show that the coffee shop business has a thriving opportunity to grow in the market.

The market analysis for a coffee shop business must include the study of the following:

Customer analysis

Customer analysis is essential to identify your target customers. Having a thorough understanding of your target market will help formulate the business and market strategies appropriate for your business.

Create the buyer persona of your ideal customer. Focus on these details to outline your ideal customer:

• Customer demographics: Age, gender, location, income, occupation, and ethnicity of the customers who will visit your coffee shop.
• Customer psychographics: Beliefs and values of your ideal customer, their interests, spending pattern, and their media consumption.

For instance, the ideal customer for Steamy Sips is 23-38 years old and works in a corporation. He/ She likes to spend money on coffee regularly and prefers fresh roasted seasonal brews, is socializing, and loves working in a cafe remotely.

Competitors analysis

After determining your target market, look around and identify your potential competitors.

Begin by identifying the top competitors of your coffee shop. This can be neighboring coffee shops, kiosks, or coffee karts that offer similar services to your business.

Now conduct a SWOT analysis of these coffee shops by analyzing their strengths and weaknesses. Also, analyze your strengths against competitors and highlight your competitive edge in the market. Be realistic with your assessment as this will form the foundation of your related business policies.

Lastly, identify if there are any stellar opportunities for you to leverage in this market.

Collect data from highly authoritative websites, data publications, and local studies specialized in the coffee industry. For instance, SBA , SCA coffee , Mintel , Business Wire , COFFEEBI , etc.

This section is your chance to prove to the potential investors that you are aware of the market challenges and there exist favorable chances for your coffee shop to thrive and grow.

4. Prepare a company overview

Just like the executive summary of your coffee shop business plan, this section includes a brief business description of your coffee shop. It offers readers a peek into your business structure, goals, mission, and company values.

Depending on your market analyses choose the type and structure of your business concept. Clearly describe whether you will start a cafe or coffee shop, coffee kart, coffee bar, or coffee house and whether the business structure will be LLC, partnership, or sole proprietorship.

Further include your mission statement, coffee shop objectives, and goals to complete the company overview section.

Mission statement: A mission statement highlights the purpose of your coffee shop’s existence and its long-term objective.

For instance, Steaming Sips’ mission is to cultivate a culture of freshly roasted coffee, serving a welcoming space for young individuals to connect, create, and unwind with every cup of our brews.

Coffee shop objectives: In this part, highlight your business objectives in terms of milestones, growth goals, revenue goals, sales numbers, etc.

For instance, Steaming Sips aims to open 3 branches across San Fransisco by the end of 2025.

5. Present your sample menu

The market research earlier helped you understand your potential audience in great detail. Now, it’s time to decide what to offer on your menu.

A sample menu is an important component of your coffee shop business plan. With a menu, investors will know what exactly you will be serving and what makes you different.

A coffee shop can stand apart selling just coffee drinks. However, there are many coffee shops that sell coffee and food products together. Depending on your coffee shop concept and the target market, decide the menu items.

Here are a few things to consider while making your menu and establishing yourself as a specialty coffee shop.

• Different types of coffee drinks that suit your customer’s taste. For ex. filtered coffee, frappuccino, brewed coffee, hot coffee, etc.
• The type of coffee beans to produce high-quality coffee, e.g. organic coffee beans.
• Different types of coffee roasts, e.g. dark roast, medium roast, light roast.
• Different types of milk, e.g. plant-based milk options and dairy milk.
• Seasonal coffee specialties.

Strategically place the items in your menu and add the prices alongside. Incorporate branding elements of your coffee shop in the menu as well.

6. Coffee shop design and layout

Till now, the coffee shop idea was just a business concept, jumbled randomly across your mind. Writing a business plan will help you to sort those ideas, one section at a time.

The design and layout section helps potential investors visualize the appearance of your coffee shop. It is your chance to help them understand your coffee shop concept and the aspects that set you apart from other coffee shops.

Begin by highlighting your coffee shop location in this section. Briefly explain how the location is suitable for your potential customers.

Also, present the moodboard of your coffee shop and highlight the branding and visual elements of its design.

Overall, explain how you will create a welcoming atmosphere for your customers by incorporating design and decor elements in your shop.

7. Prepare a coffee shop marketing plan

Now that you have the concept, design, and menu for a coffee shop, it’s time to work on its marketing plan. The coffee market is intensely competitive and only a solid marketing action plan can differentiate your business from other coffee shops.

Using your market research, identify the best marketing strategy for your business. Ideally, coffee shops build a cohesive brand image using a mix of digital marketing practices.

For instance, a website can be used to build a robust web image, while social media can be used to connect with your target audience organically. Similarly, your coffee shop emails can focus on special offers and promotional invites while paid ads can help you target the wider audience.

In this section, you also highlight various promotional activities for your cafe such as karaoke evenings, art workshops, musical nights, happy coffee hours, etc.

Overall a comprehensive marketing plan must answer the following questions:

• How will you draw coffee enthusiasts to your coffee shop?
• What will be the pricing strategy of your coffee shop?
• What will be your marketing budget?
• What marketing channels will you use and who will undertake the marketing activities?
• Will there be any promotional events at the cafe? If so, what type of events?

8. Introduce your management team

In this section, you will introduce the management team that will ensure the smooth functioning of your coffee shop business.

Begin by introducing the coffee shop owners and their relevant experience in the coffee market. Also, clarify if you will work both as owner and manager or hire a coffee shop manager to look after the day-to-day operations.

If you are going to hire a manager, introduce them and their key responsibilities in the section. Offer a brief description of their skills, experience, and expertise that can help your coffee shop business.

Overall, this section shows the potential investors that you have all the right people in a team to drive your coffee shop toward success.

9. Outline your operational plan

This section of a coffee plan offers brief details of everyday business processes that will guide you to build and run a successful coffee shop.

An operations plan includes a lot of details, answering some of these prominent questions.

• Inventory and stock management: How will you manage and track the inventory? Who will be responsible for stock management? How often would you restock the inventory?
• Production: Who will develop the recipes for coffee beverages? Will there be recipe cost cards for coffee preparation? Will there be kitchen staff working with food orders or will you outsource that?
• Coffee shop equipment: What equipment will you buy for the coffee shop, i.e. espresso machine, coffee grinders, etc? Will that be a new purchase or a second-hand one? How much will the equipment cost?
• Management: Who will serve the food and coffee in the shop? Who will look after customer complaints? What is the conflict resolution system at your coffee shop?
• Technology: What technologies will you use at your coffee shop? Which payment and POS system will you use? Will there be an ordering kiosk?

A well-planned operations plan demonstrates your ability to run a coffee shop to your readers. So keep it detailed and revamp it as and when needed.

10. Create a Financial Plan

A financial plan helps assess the viability of your business idea by evaluating its financial aspects. It’s an important part of your coffee shop business plan whether you want to seek funding or not.

A well-built financial plan is presented in numbers, graphs, and charts and includes the following:

• Evaluation of startup costs: Identify the startup costs of your proposed coffee shop. Take into account the costs for lease rental, licenses, equipment, remodeling as well as operating expenses for the first few months.
• Sales forecasts and pricing: Determine the drink sales for your coffee shop and your pricing structure by conducting market research.
• Operating costs: Your financial projections should include a thorough calculation of operating expenses to run a coffee shop business.
• Balance sheet: A balance sheet will help investors assess your assets and liabilities and the liquidity of your business.
• Cash flow statement: Make cash flow projections and demonstrate the inward and outward flow of money in the business.
• Income statement: The figures in this sheet help evaluate the profitability of your business
• Break-even analysis: The calculations here will help determine the sales level after which your coffee shop will start making a profit.

Now, making all these financial projections and calculations is a bit taxing. Not only that, you will have to create visual reports to make the financial section appealing and insightful.

Well, let’s make things easier with our financial forecasting tool. Simply enter your assumptions in a tab and our tool will generate important key reports for your business.

Don’t stress. You don’t need to worry about the visual reports anymore. Go, check your dashboard. You will have all the visual reports ready to be added to your financial plan.

And that’s your detailed guide to writing your coffee shop business plan. Now, let’s check the latest industry trends ruling the coffee shop market. 

Coffee Shop Industry Highlights 2023

Let’s dive further deep into market analysis with these latest industry trends in the coffee shop market:

• Coffee shop industry: The US coffee shop industry grew from $36 billion to 45.8 billion dollars between 2020-2022.
• Number of coffee shops: According to Statista , in 2022 there were a total of 38.4 thousand coffee shops in the US.
• Coffee drinkers: A performed market research indicates that the top coffee consumers aren’t youngsters, but seniors. Nearly, 70% of seniors consume coffee regularly.
• Employment growth rate: The total number of people employees in the coffee shop industry in th US increased on average by 4.9% between 2018-2023.
• Specialty coffee market: According to Grandview research , the US specialty coffee market is expected to grow at 10.9% CAGR between 2023-2030.
• Price per cup: According to Business Insider , the average price per coffee cup in the coffee shop is almost $5, making it an affordable luxury for people.

Related Coffee Shop Resources

• Coffee Shop Operational Plan
• Coffee Shop Financial Plan
• Coffee Shop Marketing Plan
• Latest Coffee Shop Business Trends

Download a sample coffee shop business plan

Need help writing your business plan? Let’s ease your plan writing process with our coffee shop business plan pdf . Download it for free and customize it as per your needs.

This modern intuitive template offers a step-by-step guide that will help you write a comprehensive and actionable business plan. It’s designed specifically for coffee shop businesses and includes examples relevant to your industry.

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Whether you are starting your own coffee shop or taking over an existing coffee business, Upmetrics’ insightful guides and resources will help you craft a compelling business plan in easy steps.

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Frequently asked questions, what are the key components of a successful coffee shop business plan.

The key elements of a coffee shop business plan are

• Executive summary
• Business overview
• Coffee industry and market analysis
• Sample menu
• Coffee shop design and layout
• Marketing and sales plan
• Key management team
• Operations plan
• Financial plan

Should we consider franchising our coffee shop?

Yes, you can. Franchising is a proven way of increasing the reach and profitability of your coffee business. Moreover, it’s easy to scale your business through a franchise business model.

What is a traditional business plan for a coffee shop?

A traditional plan is very similar to modern business plans. It includes a summary of the company’s goals, objectives, business values, marketing objectives, and financial plan. The modern plans, however, are intuitively designed to be more suited to investors interest.

Do I need a business plan to secure funding for my coffee shop?

Yes. Investors and investing firms will ask for a business plan before giving you a chance to present the coffee shop concept. By studying your plan, they will gauge the viability of your coffee business, and depending on the analysis they will decide whether to invest or not.

What should I include in the financial projections section of my business plan?

The financial projections of your coffee shop plan must include the following:

• Sales forecast
• Startup cost estimates
• Operating costs
• Balance sheet
• Income statement
• Cash flow statement
• Break-even analysis

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Drive Thru Coffee Kiosk Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Food Industry » Drive Thru Coffee Kiosk

Are you about starting a coffee kiosk? If YES, here’s a complete sample drive through coffee kiosk business plan template & feasibility report you can use for FREE to raise money .

Okay, so we have considered all the requirements for starting a drive through coffee kiosk . We also took it further by analyzing and drafting a sample drive through coffee kiosk marketing plan template backed up by actionable guerrilla marketing ideas for drive through coffee kiosks. So let’s proceed to the business planning section.

If you intend opening a drive through coffee kiosk business, then you must make out time to learn the art of preparing coffee alongside other soft skills – business skills such as customer service, accounting and bargaining skills amongst others.

Starting a drive through coffee kiosk business also means that you need to have some plans in place, plans like how you intend to compete in the market, how you intend to make your business known to the people, as well as other important factors that must not be overlooked.

Before launching this type of business, it will pay you to carry out due diligence as it relates to market research, economic and cost analysis and of course feasibility studies. If you get things right before launching your drive through coffee business, it will not take you long before you break even and start smiling to the bank.

Below is a sample drive through coffee kiosk business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Drive Through Coffee Kiosk Business Plan Template

1. industry overview.

The Coffee and Snack Shops Industry that coffee kiosk is a part of is composed of businesses that prepare or serve specialty snacks and nonalcoholic beverages including ice cream, frozen yogurt, cookies, donuts, bagels, coffee, juices, smoothies and sodas. Purchases may be consumed on site, taken to go or delivered.

There are different types of coffee drinks that you can find in a coffee shop, some of them are cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream and flavored coffee et al.

In recent time, the Coffee and Snack Shop industry has been sustained by increased consumer spending, driven by higher disposable income and greater confidence in the overall economic outlook. As a matter of fact, the demand for coffee and snack shops increased at a fast rate than most segments in the food-service related industry, as consumers increasingly seek convenience at an affordable price.

In addition, the industry has adjusted to the ever – changing consumer preferences, especially those relating to health and diet. Going forward, these trends are expected to continue shore up demand. As a result, major coffee shop chains will invest in expansion and international growth, strengthening the revenue generated in the industry.

The Coffee and Snack Shops Industry that coffee kiosk business is a subset of is a thriving sector of the economy of the united states; which generates well over $40 billion annually from more than 55,664 registered coffees & snack shops (coffee kiosks inclusive) scattered all around the United States of America.

The industry is responsible for the direct employment of well over 686,007 people. Experts project The Coffee & Snack Shops Industry to grow at a 4.5 percent annual rate between 2011 and 2016. Starbucks and Dunkin’ Brands are the leaders in this industry; they have the lion share of the available market in the industry.

One good thing about this type of business is that coffee shops/kiosks can be located in any part of town as long as there are people living or working there. Generally, coffee shops/kiosks are located in airports, sea ports, shopping malls, hotel lobby, railway stations, bus station, campuses, hospital lobby, and sport centers and in any public facilities.

Over and above, the turnover for an average coffee shop/coffee kiosk can be as high as 50 percent and above that is why entrepreneurs who intend making good money from a business with less struggle opens their own coffee shop or coffee kiosk; they either start their own coffee shop business from the scratch or buy an existing and successful coffee franchise.

2. Executive Summary

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. is a standard and registered coffee kiosk business that will be located in one of the busiest roads in Los Angeles – California. We have been able to secure an open space in the heart of town where we intend installing our drive through coffee kiosk.

We have plans to also spread across the state of California with smaller drive through kiosks – like photocopy shops strategically positioned in key areas like, campus, school districts, passport office, immigrations centers, licensing offices and recruiting centers et al.

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. will be involved in the preparation and sale of a wide varieties of coffee beverages (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.) and also snacks to our customers.

We will also engage in home delivery when customers want our products to be delivered to them in any location within the city where we have our drive through coffee kiosks positioned.

We are aware that there are several large and small scale drive through coffee kiosks/coffee shops all around Los Angeles – California, which is why we spent time and resources to conduct thorough feasibility studies and market survey so as to offer much more than our competitors will be offering.

We have home delivery and self – service options for our customers, and our outlet is well secured with the various payment options.

Much more than retailing well – prepared coffee, our customer care is going to be second to none in the whole of Los Angeles – California. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they purchase coffee and snacks from us.

At Mike Harry & Sons Drive Through Coffee Kiosk, Inc. our client’s best interest come first and everything we do will be guided by our values and professional ethics.

We will ensure that we hold ourselves accountable to the highest standards by delivering excellent services and also meeting our client’s needs precisely and completely. We will cultivate a working environment that provides sustainable approach to earning a living.

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. is a family business that is owned and managed by Mike Harry and his immediate family members. The business will be managed by his son Martins Harry, a graduate of Business Administration who has extensive experience working with one of the leading business coffee shops in the United States of America.

He will bring his wealth of experience and expertise to help build and grow Mike Harry & Sons Drive Through Coffee Kiosk, Inc. to compete favorably with other leading coffee shops/coffee kiosks in the United States of America.

3. Our Products and Services

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. is in the coffee shops/coffee kiosks industry to make profit and we will ensure we go all the way to make available a wide range of coffees to our clients. We will ensure that we do all that is permitted by law in the United States of America to achieve our business goal and ambition. Our product and service offerings are listed below;

• Coffee beverages (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.)
• Other beverages

4. Our Mission and Vision Statement

• Our vision is to become one of the top 10 leading drive through coffee kiosks in the whole of Los Angeles. and to setup our well branded drive through coffee kiosks in other cities in the United States of America.
• Our mission is to establish a world – class drive through coffee kiosk business that will make available a wide variety of coffee, sandwiches, pizzas and soft drinks at affordable prices to the residents of Los Angeles and other cities in the United States of America where we intend opening chains of well – branded drive through coffee kiosks.

Our Business Structure

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. do not intend to start a drive through coffee kiosk business like the usual mom and pop business around the street corner; our intention of starting a drive through coffee kiosk business is to build a standard and one stop drive through coffee kiosk in Los Angeles – California with outlets in other key cities in the United States of America.

Although our drive through coffee kiosk business might not be as big as Starbucks and Dunkin’ Brands, but we will ensure that we put the right structure in place that will support the kind of growth we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Coffee Kiosk Manager
• Admin and Human Resource Manager
• Bartenders/Baristas
• Accountants/Cashiers
• Greeters/Customer Service Agent/Table Attendant
• Van Drivers/Deliverers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling and disciplining managers; communicating values, strategies and objectives; assigning accountabilities, planning, monitoring and appraising job results; developing incentives; developing a climate for offering information and opinion; providing educational opportunities.
• Creates, communicates and implements the organization’s vision, mission and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities

Coffee Kiosk Manager:

• Responsible for managing the daily activities in the coffee kiosk
• Ensure that the facility is in tip top shape and conducive enough to welcome customers
• Interfaces with third – party providers (vendors)
• Responsible for supervising and training new staff members
• Reports to the Chief Executive Officer
• Attends to Customers complaints and enquiries
• Prepares budget and reports for the organization
• Any other duty as assigned by the CEO

Bartender/Baristas:

• Responsible for preparing different flavor and style of coffee for customers
• Make lists of supplies in conjunction with the bar manager
• Ensure that each cup of coffee that leaves the kitchen is tailor made and meet the request of each customer
• Responsible for quality control
• Any other duty as assigned by the Bar Manager and CEO

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, reaches out to new partners, and business opportunities
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the business

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Waiters/Waitress

• Promptly attends to customers in a friendly and professional manner
• Ensures that un-occupied tables are always set and ready for customers
• Pulls out chairs for customers as they arrive
• Handles any other duty as assigned by the Chief Operating officer/coffee kiosk manager

Van Drivers/Sandwich Deliverers:

• Delivers customer’s orders promptly
• Delivers correspondence for the organization
• Runs errand for the organization
• Handle any other duty as assigned by the floor/line manager
• Responsible for cleaning the facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the facility
• Handles any other duty as assigned by the coffee kiosk manager

N.B: Please note that the above business structure was put in place to support our vision for setting up our well–branded drive through coffee kiosks in the different locations all across the United States and also selling our franchise.

6. SWOT Analysis

Our intention of starting with just one outlet of our drive through coffee kiosk in Los Angeles–California is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then setup our well – branded drive through coffee kiosks all over Los Angeles – California and key cities in the United States.

We are fully aware that there are several coffee bars/shops/kiosks all over Los Angeles – California and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. employed the services of an expert HR and Business Analyst with bias in fast food line of business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Mike Harry & Sons Drive Through Coffee Kiosk, Inc.;

Our location, the business model we will be operating on (chains of well – branded drive through coffee kiosks in strategic locations), varieties of payment options, a wide range of coffee and also sandwich and pizzas and our excellent customer service culture will definitely count as a strong strength for Mike Harry & Sons Drive Through Coffee Kiosk, Inc.

So also, our management team members are people who have what it takes to grow a business from start – up to profitability within a record time.

A major weakness that may count against us is the fact that we are a new drive through coffee kiosk business and we don’t have the financial capacity to compete with multi – million dollars chains of coffee shops like Starbucks and Dunkin’ Brands et al.

• Opportunities:

The fact that we are going to be operating our drive through coffee kiosk in one of the busiest streets in Los Angeles – California, provides us with unlimited opportunities to sell our coffee and snacks to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our drive through coffee kiosks; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power.

Another threat that may likely confront us is the arrival of a new drive through coffee shop/coffee kiosk in same location where ours is located. We are not ruling out the fact that unfavorable government policies can also pose a threat to our business.

7. MARKET ANALYSIS

• Market Trends

In recent time, the Coffee and Snack Shops industry has been sustained by increased consumer spending, driven by higher disposable incomes and greater confidence in the overall economic outlook. As a matter of fact, the demand for coffee and snack shops has increased at a faster rate than most segments in the foodservice related industry, as consumers increasingly seek convenience at an affordable price.

Another notable trend in the coffee and snack shops industry is that most players in the industry especially drive through coffee kiosks are known to concentrate in branding their kiosks with bright colors and graffiti so as to attract customers who ordinarily would have passed by without noticing them.

In addition, it will be difficult to find coffee shops/drive through coffee kiosks that only retail coffee; most often than not, you will get snacks and perhaps other beverages from them.

8. Our Target Market

If you are conversant with drive through coffee kiosk business in the United States of America, you will quite agree that coffee consumption has shown steady growth over the years and from all indications, the growth is not going to plummet.

Coffee addicts would always go out of their way if possible to stop by a coffee shop, pass through a drive through coffee kiosk to drink a cup of coffee.

Usually, sales for coffee triples during winter season and in most cases small coffee bars struggle to meet the demand for coffees during this period. Over and above, those who run coffee shops don’t struggle to attract clients especially if they are well positioned.

Although there are limitations to how far we can go when it comes to marketing coffee and pastries but that does not stop us in improvising on ways to generate traffic at our coffee shop. We are in business to prepare and serve a wide variety of coffee and snacks to the following groups of people;

• Event Planners
• Corporate Organizations
• Corporate Executives
• Business People
• Sports Men and Women

Our competitive advantage

A close study of the coffee and snack shops industry reveals that the market has become much more intensely competitive over the last ten years. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other coffee shops, drive through coffee kiosks or coffee bars in Los Angeles – California.

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. is launching a standard drive through coffee kiosk business that will indeed become the preferred choice of residence of Los Angeles. Our drive though coffee kiosk is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Los Angeles – California.

So also, our management team members are people who have what it takes to grow a business from start to profitability in record time.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startup drive through coffee kiosk businesses) in the coffee and snacks shops industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. is in business to retail a wide variety of coffee and snacks to the residence of Los Angeles – California.

We are in the coffee and snacks shop industry to maximize profit and we are going to go all the way out to ensure that we achieve or business goals and objectives. In essence, our source of income will be the retailing of the following products at affordable prices;

10. Sales Forecast

The truth is that when it comes to the drive through coffee kiosk business, if your coffee kiosk is centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Los Angeles – California and we are quite optimistic that we will meet our set target of generating enough profit from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the coffee and snacks shops industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Los Angeles – California.

Below are the sales projections for Mike Harry & Sons Drive Through Coffee Kiosk, Inc., it is based on the location of our business and other factors as it relates to similar startups in the United States;

• First Fiscal Year-: $120,000
• Second Fiscal Year-: $250,000
• Third Fiscal Year-: $550,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Mike Harry & Sons Drive Through Coffee Kiosk, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for residents of Los Angeles – California.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the coffee and snacks shop industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Los Angeles – California.

In other to continue to be in business and grow, we must continue to sell the coffees and snacks which is why we will go all out to empower our sales and marketing team to deliver. In summary, Mike Harry & Sons Drive Through Coffee Kiosk, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our drive through coffee kiosk business in a grand style with a party for all
• Introduce our drive through coffee kiosk business by sending introductory letters alongside our brochure to corporate organizations, schools, event planners, households and key stakeholders in Los Angeles – California
• Ensure that we have a wide variety of coffee and snacks et al at all times
• Make use of attractive hand bills to create awareness and also to give direction to our drive through coffee kiosks
• Position our signage/flexi banners at strategic places around Los Angeles – California
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on roadshows within our neighborhood to create awareness for our drive through coffee kiosk business

11. Publicity and Advertising Strategy

In as much as our drive through coffee kiosk is well branded and well located, we will still go all out to intensify publicity for the business. We are going to explore all available means to promote our business.

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. has a long – term plan of opening chains of drive through coffee kiosks in various locations all around Los Angeles and key cities in the United States of America which is why we will deliberately build our brand to be well accepted in Los Angeles before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Mike Harry & Sons Drive Through Coffee Kiosk, Inc.;

• Place adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business
• Ensure that we position our banners and billboards in strategic positions all around Los Angeles – California
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, households, religious centers, schools and event planners et al by calling them up and informing them of Mike Harry & Sons Drive Through Coffee Kiosk, Inc. and the products we sell
• Advertise our business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our drive through coffee kiosks, official cars and delivery vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals

12. Our Pricing Strategy

When it comes to fixing prices for the ranges of coffees, snacks and pastries we sell, we are going to ensure that we set price in line with what is available in the coffee and snacks shops industry. The bottom line is that our customers will derive real satisfaction when they consume our coffee and pastries.

We also have plans in place to discount our coffees once in a while and also to reward our loyal customers with free cups of coffees from time to time.

• Payment Options

The payment policy adopted by Mike Harry & Sons Drive Through Coffee Kiosk, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Mike Harry & Sons Drive Through Coffee Kiosk, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via POS machines
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for coffee and snacks purchase without any stress on their part. Our bank account numbers will be made available on our website for clients who may want to deposit cash or make online transfer for the purchase of our coffee and snacks.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools, equipment and supplies that will be used are nearly the same everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a drive through coffee kiosk business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start – up capital on;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Mike Harry & Sons Drive Through Coffee Kiosk, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• The cost for hiring business consultant – $2,500
• The cost for the payment of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600
• The cost for construction of standard drive through coffee kiosks – $50,000
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for start-up inventory ( Coffee beans (12 regular brands and five decaffeinated brands) – $6,000, Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $7,900 , retail supplies (napkins, coffee bags, cleaning, etc.) – $1,840, the cost for office supplies (one month) – $287, the cost for Espresso machine – $6,000) – $16,027
• The cost for coffee maker – $900, the cost for Coffee grinder – $200
• The cost for food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000
• Storage hardware (bins, utensil rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine , etc.) – $9,500
• The cost for store equipment ( cash register , security, ventilation, signage) – $13,750
• The cost of purchase of distribution vans – $50,000
• The cost for the purchase of furniture and equipment (computers, Printers, Telephone, TVs, Sound System , tables and chairs et al) – $4,000
• The cost of launching a website – $600
• The cost for our opening party – $5,000
• Miscellaneous – $5,000

We would need an estimate of $200,000 to successfully set up our drive through coffee kiosk business in the United States of America. Please note that this amount includes the salaries of the entire staff member for the first three months of operation and the amount could be more or lower.

Generating Funds/Startup Capital for Mike Harry & Sons Drive Through Coffee Kiosk, Inc.

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as drive through coffee kiosk business.

No doubt raising startup capital for the business might not come cheap, but it is a task that an entrepreneur must go through.

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. is a family business that is solely owned and financed by Mike Harry and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $50,000 ( Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business would close shop.

One of our major goals of starting Mike Harry & Sons Drive Through Coffee Kiosk, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our coffee and snacks a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Mike Harry & Sons Drive Through Coffee Kiosk, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dream.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the facility (building well branded drive through kiosks): In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging, Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating official website for the company: In Progress
• Creating awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party/launching party planning: In Progress
• Compilation of our list of products that will be available in our drive through coffee kiosk: Completed
• Establishing business relationship with vendors – suppliers of coffee beans, flours and soft drinks et al: In Progress

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Business Plan: How to Start A Coffee Shop Business (Outdoor Cafe & Coffee Kiosk)？

When choosing an industry to implement a successful business, many entrepreneurs prefer the catering industry, which is well justified.

Opening a cafe is a great way to start a business.

Such projects usually pay off quickly and bring big profits in the long run.

That is why all kinds of coffee houses,  waffle stores , pizzerias, coworking centers, and cafes appear at every step.

We will figure out what actions need to be taken to open a cafe so that it becomes popular. How to open a coffee restaurant? We will draw up an approximate business plan, but first, we will deal with the features of this area.

In Canada, the catering segment is considered quite free, despite the demand for such a business, thats why  half of the establishments close during the year .

The situation can be explained by competition, an unsuccessful concept of institutions, or poor-quality services.

That is why drawing up a cafe business plan is so important. Those who approached this responsibly managed to operate in the market successfully.

Bubble tea, fresh fruit  juice bar , and ice creams are good options and ideas to add to your cafe shop menu.

Each new cafe has its characteristics, which invariably attract visitors, some of whom become regular customers.

There are plenty of reasons why such a business is in demand among newly minted entrepreneurs:

• growth in the well-being of the population;
• striving for a modern way of life;
• the opportunity to communicate in a relaxed, comfortable environment;
• development of office centers and shopping and entertainment complexes, whose employees need to eat;
• interest in thematic institutions;
• the existence of lovers of culinary delights, as well as bachelors;
• Celebration of celebrations.

Planning as the basis for success

Honestly, assessing your strengths and capabilities is important at the very beginning.

Indeed, to feed people, it will be necessary to obtain many permits (IP, sanitary and epidemiological service, firefighters).

Subsequently, all standards and norms must be strictly observed. When “laying the foundation,” a competent and attentive approach is important. Otherwise, additional costs cannot be avoided.

The organization of the cafe should not be the result of yesterday’s “insight” with this idea. Any business needs to be calculated to the smallest detail!

And This is the secret of a successful business. The result begins with the planning of indicators: budget, scope, the timing of the launch, and implementation of the project.

The success of the enterprise rests on these three pillars. Think about how much you are ready to invest in a cafe, how long it will operate, and how long will the investment pay off?

If you can answer these and many related questions and understand the relationship between all processes, your project to open a cafe will certainly bring significant income.

The level of service provision in a cafe  restaurant  is simplified compared to a restaurant, so there is no need to perform a super task.

Let us consider in detail what issues need to be given maximum attention.

Permits and Required Documentation

The organization of a cafe requires a mandatory solution to such legal issues  :

• business registration;
• choice of taxation system;
• collection of documents (lease agreement; permission to place a catering establishment in a specific room; results of a medical examination by staff);
• licensing (for trade activities, sale of tobacco and alcohol products);
• registration of cash registers;
• conclusion of contracts for garbage disposal, fire examination, fire alarm, panic button (security), derivatization and disinfection, accounting support;
• obtaining the conclusion of the SES (on the compliance of the selected premises with all sanitary standards);
• obtaining permission to carry out activities from the fire safety authorities;
• Signing contracts for the products.

In any case, you will not be able to avoid the documentary component, so use all your strengths and connections to resolve the issues listed.

Planning to open your cafe should be based solely on sanitary standards, and Customizing the project for them is not the best solution.

All rules for catering establishments regarding compliance with sanitary standards are reflected in the provisions of San Pin 2.3.6.1079-01. Following them manifests respect for the clients who provide your earnings.

Market and competition analysis

Analysis of the catering segment is very important, and it will help you find out which type of cafe is most in-demand and which will be a novelty. Initially, you need to define the following parameters:

• the total number of the population and the proportion of young people and people of working age in it (they will make up the main contingent);
• the average level of income of residents;
• a breakdown of the number of cafes by niche;
• territorial location of establishments;
• demand and supply for services;
• Average check size.

By comparing all these parameters, you will be able to understand the trends inherent in the market, correctly build a pricing policy, create a menu and choose the concept of an institution.

Then study the activities of such establishments in your city, analyzing their pros and cons and the target audience.

The flaws that competitors make are especially important.

Try to avoid them by improving the best practices and contributing your ideas.

It is important to identify the factors that determine the attendance of an institution in a particular place. And Order the Market analysis from consulting agencies if you have free funds.

In this case, a professional niche assessment with detailed specifications and a forecast of industry trends is provided. If the prospects of your idea turn out to be illusory, such companies will select a more profitable project.

Selecting the type of institution

The budget is based on a business plan based on the cafe type. Focus on both your preferences and the number of similar establishments.

Children’s cafe – interior

Today cafes are considered promising on the market:

• children’s;
• vegetarian;
• Internet cafe;
• with karaoke;
• sushi bars;
• franchised;
• fast foods (providing takeaway food);
• anti-cafe (paid for the time of stay, not the cost of dishes on the menu);
• thematic (literary, sports, musical, national style, etc.).

Whatever type of establishment you choose,  consider the specifics of the establishments . For example, the presence of dishes “from the chef” and the branded labeling of cutlery are characteristic of the artsy restaurant style. Do not pursue luxury you do not need, which will only entail extra costs.

But bags of sugar, on the packaging of which comics from your institution are depicted, will be just right . You can also make napkins with a logo or name, a special uniform for the staff, or a compliment from the establishment to regular customers.

Remember, “zest” is always welcome, no matter where – in the menu, interior, or service.

Location selection

If you are counting on a wide audience, make sure that the location of the cafe is convenient for people:

• was in the first zone of visibility;
• disposed to rest (absence near busy highways and noisy highways);
• provided parking and transport access.

Location, of course, affects the attendance of the institution. You need to choose places with high traffic (central squares, walking areas, shopping malls, entertainment centers, train stations, and metro stations) or focus on the main idea.

The concept is an important factor in determining the location of the institution. Understanding the target audience will help you choose the right area, street, or shopping center. For example, youth cafes can be placed near the main places of entertainment in the city, and restaurants for vegetarians – near the centers of spiritual practices.

Regarding the main focus on business lunches, you should choose places near business centers in the city’s business districts. You can count on banquets near motor transport hubs in a residential area for quick snacks.

Coffee houses are popular in the city center because it is convenient to meet there to talk about business for 15-20 minutes.

Opening a  street coffee shop  or mobile  coffee trailer  is another option for new starters.

Features of the room and interior decorations

The premises for the cafe can be bought, built or rented. When choosing, the following criteria are taken into account:

• rent or cost;
• room dimensions;
• the presence of halls and utility rooms;
• layout design;
• proximity to public transport stops;
• remoteness from automobile and pedestrian traffic;
• number of stories (preferably the first one);
• availability of entrances and exits (preferably from the street);
• window exit (great if the room is located at the intersection, and the windows face 2 streets);
• view from the window;
• availability of ventilation systems;
• compliance with the norm (firefighters, SES);
• the condition of the electrical wiring (what is the maximum load the room can withstand);
• previous purpose of operation of the premises;
• the need for repair or restoration.

It is necessary to clearly understand how many halls and seats are in them for guests. and what will be needed to implement your idea on a full scale. According to the regulation, the best option is an area of ​​280 m² / 50 seats.

Do not forget to calculate, in addition to the area of ​​\u200b\u200bthe dining area, the dimensions of the kitchen, toilet rooms, storage spaces, staff rooms, accounting, and management. The more accurately you draw a plan, the clearer it will be for you and investors, and the more likely it is to bring the project to life in its original form.

The interior design should correspond to the cafe’s name and reflect its concept. Come up with a “chip” to help attract customers and make the institution recognizable in the market. And This can help designers, decorators, florists, and marketers.

We can recommend a win-win trick to attract guests’ attention – fresh flowers on the tables. It’s not that expensive, but it always “works.” For a themed  container cafe restaurant , the idea should be traced in everything: from paintings and musical accompaniment to staff uniforms and names of dishes on the menu. This is a prerequisite for such establishments.

Don’t skimp on the budget to beat the idea. After all, this factor allows you to inflate prices on the menu. Remember, in the right atmosphere, the client loses a sense of time and reality, and a feeling of relaxation arises. And This can compensate for the shortcomings in the kitchen and service.

Equipment For Coffee Shop

The estimated cost of purchasing equipment for the full-fledged operation of the cafe depends on the business plan, which sets out the list of dishes you will offer visitors.

Because some products must be stored under certain conditions, this may require additional lockers, and others require special processing devices. Evaluate all the nuances of cooking before adding them to the menu.

For a cafe, a standard set of equipment includes:

• bar counters
• cutting tables;
• display carts
• refrigerators and freezers;
• combi steamer;
• washing equipment;
• Counter top display cases ;
• kitchen equipment (mixers, coffee machine, slicers, microwave ovens, blenders, toasters, etc.).

Also, calculate the amount of furniture, lamps, decorative elements, dishes, textiles, appliances, and appliances necessary for decorating the hall.

It is advisable to divide the estimate (calculated in the business plan) by the type of goods (kitchen equipment, furniture, plumbing, interior elements). This will allow you to receive volume discounts when delivering products.

Hiring unqualified staff is undesirable for a new institution to risk its reputation from the first days. It is foolish to hope that employees will learn everything directly at the workplace.

Food that doesn’t taste good or doesn’t match the name will turn customers away from you once and for all. The impolite and awkward staff, dirty dishes, and “stale” halls do not contribute to the popularity.

Employees must be:

• professional;
• interchangeable.

To operate a small coffee kiosk, 2 to 3 staff is enough. If you open a cafe or larger coffee shop, no more than 10 employees work in turns will do:

• 1 bartender-cashier;
• 1 administrator;
• 1 accountant;

We compose the menu.

To work, you need a basic and banquet menu, which considers the institution’s specialization.

It is important to work out a meal plan:

• children’s menu;
• business lunches (complex lunches);
• compliments for guests;
• alcohol card.

Try to avoid banal names of dishes. Introduce something unusual or change the terms.

The breadth of the range is welcome. However, it is worth observing the measure. Too many dishes on the menu indicate that they are prepared from semi-finished or stale products in violation of sanitary standards.

In addition, choose only trusted suppliers. Random purchases at low prices can turn into a big problem.

A standard full menu should contain up to 50 dishes and up to 50 items of various drinks. And This is quite enough, and it is better to update it every quarter and for holidays (Halloween, Easter, New Year, etc.).

Advertising and PR

An advertising campaign is necessary, but it is better to do it on an ongoing basis (in this case, these costs must be included in the cafe business plan). When developing a marketing policy, consider two components of a successful campaign:

• internal marketing (implies ensuring the maximum level of competence and loyalty of the staff);
• external marketing (presupposes a series of activities to generate demand from potential customers). You can use:
• billboards;
• advertising booklets;
• business cards;
• discount flyers;
• radio advertising.

You can also open  coffee kiosks in shopping malls , office centers, and crowded places. Good partnership option. You place taxi business cards in your area, and they, on the contrary, advertise you. At the same time, small mutual discounts on each other’s services will have a double effect.

Creating pages and groups on social networks and placing information about your cafe in thematic directories is appropriate. Of course, if the budget allows, you can make your website. But remember that it needs to be promoted, which is costly and quite difficult.

Therefore, it is better to postpone it until the cafe is “untwisted.” Think about how to keep your customers. Perhaps you should introduce loyalty programs for regular customers.

Profitability

The profitability of such institutions depends on:

• the scale of activity;
• the location of the object;
• institution themes;
• working hours;
• the quality of the “kitchen”;
• staff qualifications;
• pricing policy;
• amenities and atmosphere;
• the amount of investment.

For example, now fashionable Internet cafes and anti-cafes have profitability of about 100%! But they are in demand only in metropolitan areas.

The children’s cafe is characterized by profitability of about 30%. Equipping a children’s playground with animators and hiring a confectioner can double the profitability of such an establishment.

Cafe business plan with calculations

Here is a brief example of a business plan for opening a “Coffee Lover” cafe.

Purpose:  organization of a compact cafe or pastry shop.

Description of the project.  Cafe “Coffee Lover” is located in the center part of the city in a rented room with 1 hall (capacity of 50 seats) and 1 kitchen area.

The assumptions used to function as a cafe to reduce the purchasing equipment costs.

It is supposed to open an institution with the concept of national cuisine in a low-price category.

The average price of a check is expected to be $5.5. Target audience: students, employees of the office center, and tourists. Working hours: 10-22 daily.

Market analysis.  The place is popular for walking among residents and visitors of the city. There are a lot of similar establishments with a similar concept – only one.

You can obtain Competitive advantages by extending the cafe’s opening hours by one hour, holding “dish of the day” campaigns, and reducing prices by 5%.

Marketing policy.  Large-scale advertising is necessary once. Further, it is supposed to advertise through social networks, the sale of booklets, discount coupons, and business cards.

Equipment.  Most of the equipment in the room is (in good condition). Need to buy:

• refrigerators – 2 pcs.;
• microwave oven – 1 pc.;
• bar counter – 1 pc.;
• production table – 1 pc.;
• new  tables  for visitors – 10 pcs.;
• armchairs in the hall – 40 pcs.;
• hangers – 2 pcs.

Staff . According to the plan, it is supposed to hire 6 employees: administrator, cook, waiter, bartender, washer/cleaner, and accountant (incoming).

Financial indicators.  The costs will be:

• rent – $ 2 thousand / month;
• purchase of products (including alcohol) – $ 3 thousand / month;
• utility bills – $ 1 thousand / month;
• cosmetic repairs of the premises – $ 2 thousand;
• furniture – $ 5 thousand;
• equipment – $ 7 thousand;
• advertising – $ 1 thousand;
• payroll fund – 3 thousand $ / month. (including deductions).

Investments in the amount of 40 thousand $ / month are expected. Projected net profit – 3-4.5 thousand $ / month. The return on investment is 1-1.5 years. The planned income is possible at 50% load. The profitability of the cafe is 30-40%.

Many visit  mall  coffee kiosks, cafes, and coffee shops during the day. Some want to have a bite, others want to celebrate a joyful event, others want to meet friends, and others want to hold business negotiations.

For urban residents, this is the norm of life, and for entrepreneurs, it is an interesting and promising type of business:  Stylish cafe – opening.

The organization of a cafe seems quite expensive, but the efforts and invested funds will pay off with a vengeance if you approach this issue correctly and balanced.

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