BUSINESS PLAN [Café Name][Neighborhood], [City, State] | [Owner Name(s)] |
All figures in this plan are example figures that reconcile with each other. Replace them with your own; totals are typed values and do not recalculate.
1. Summary
[Café Name] is a [number]-seat café in [neighborhood] serving coffee, pastries, and [breakfast and lunch]. [Two sentences on the customer and why this location.] The owners are seeking $150,000 in debt financing alongside $83,000 of owner equity to open by [Month YYYY].
STARTUP COST $233,000 | REVENUE PER MONTH $72,540 | AVERAGE TICKET $8.06 | BREAK-EVEN PER DAY 212 transactions |
2. Concept
Format: [Counter service / table service], [number] seats, [indoor and outdoor seating].
Hours: [Days], [00:00]–[00:00].
Customers: [Main customer groups, e.g., nearby office workers, residents, students, and when each group visits.]
Offer: [What the café serves and how it differs from nearby options, stated as facts: roaster, menu, hours, seating.]
Competition: [Nearby cafés and alternatives, their prices, and hours.]
3. Menu economics
CATEGORY | AVG PRICE | INGREDIENT COST | COST % | MARGIN | UNIT MIX |
|---|---|---|---|---|---|
[Drip coffee] | $3.25 | $0.45 | 13.8% | $2.80 | 20% |
[Espresso drinks] | $5.25 | $0.95 | 18.1% | $4.30 | 35% |
[Tea and other drinks] | $4.00 | $0.70 | 17.5% | $3.30 | 10% |
[Pastries] | $3.75 | $1.25 | 33.3% | $2.50 | 20% |
[Breakfast sandwiches] | $8.50 | $2.90 | 34.1% | $5.60 | 10% |
[Lunch items] | $11.00 | $3.80 | 34.5% | $7.20 | 5% |
Weighted average per item | $5.04 | $1.22 | 24.2% | $3.82 | 100% |
Average ticket = $5.04 per item × 1.6 items per transaction = $8.06. Unit mix is the share of items sold.
4. Location assumptions
| Why this site
|
5. Staffing
ROLE | HEADCOUNT | HOURS / WEEK EACH | HOURLY WAGE | MONTHLY COST |
|---|---|---|---|---|
[General manager] | 1 | 45 | $24.00 | $4,680 |
[Shift lead] | 2 | 35 | $19.00 | $5,763 |
[Barista] | 3 | 30 | $16.50 | $6,435 |
[Kitchen and prep] | 2 | 30 | $17.00 | $4,420 |
Total wages | 8 | $21,298 |
Monthly cost = headcount × weekly hours × wage × 52 ÷ 12. Payroll taxes and benefits are budgeted at 12% of wages.
6. Management and suppliers
[Owner Name], [Role]: [Relevant experience in food service or management, in one sentence.]
[Owner or manager name], [Role]: [Relevant experience, in one sentence.]
SUPPLY | SUPPLIER | TERMS |
|---|---|---|
[Coffee] | [Roaster name] | [Delivery frequency, payment terms] |
[Dairy and alternatives] | [Supplier] | [Terms] |
[Pastries and baked goods] | [In-house / wholesale bakery] | [Terms] |
[Paper goods and packaging] | [Supplier] | [Terms] |
7. Monthly operating budget
At maturity (month [7] onward):
USD PER MONTH | AMOUNT | % OF REVENUE |
|---|---|---|
Revenue (300 transactions × $8.06 × 30 days) | $72,540 | 100.0% |
Food and beverage cost (24.2%) | $17,559 | 24.2% |
Card processing (2.8%) | $2,031 | 2.8% |
Packaging and supplies (3%) | $2,176 | 3.0% |
Gross margin after variable costs | $50,774 | 70.0% |
Wages | $21,298 | 29.4% |
Payroll taxes and benefits (12%) | $2,556 | 3.5% |
Rent and common charges | $6,500 | 9.0% |
Utilities | $1,400 | 1.9% |
Marketing | $800 | 1.1% |
Insurance, software, and repairs | $1,200 | 1.6% |
Operating profit before debt service | $17,020 | 23.5% |
Loan payment ($150,000, 10 years, 10%) | $1,982 | 2.7% |
Cash flow after debt service | $15,038 | 20.8% |
Break-even: fixed costs and loan payment of $35,736 ÷ ($5.64 contribution per transaction × 30 days) = 212 transactions per day.
8. Year 1 projection
USD | Q1 | Q2 | Q3 | Q4 | YEAR 1 |
|---|---|---|---|---|---|
Sales volume (% of maturity) | 60% | 80% | 95% | 100% | |
Revenue | 130,572 | 174,096 | 206,739 | 217,620 | 729,027 |
Variable costs | 39,180 | 52,240 | 62,035 | 65,300 | 218,755 |
Fixed operating costs | 101,262 | 101,262 | 101,262 | 101,262 | 405,048 |
Operating profit | (9,870) | 20,594 | 43,442 | 51,058 | 105,224 |
Loan payments | 5,946 | 5,946 | 5,946 | 5,946 | 23,784 |
Cash flow | (15,816) | 14,648 | 37,496 | 45,112 | 81,440 |
Variable costs are 30.0% of revenue (food and beverage, card processing, supplies). Values in parentheses are losses, covered by the working capital reserve.
9. Startup costs and funding
|
Owner equity is 36% of the total. |
10. Launch schedule
WEEKS BEFORE OPENING | TASK | OWNER | DONE |
|---|---|---|---|
16 | [Sign lease; engage architect or contractor] | [Name] | □ |
14 | [Submit permit applications and health department plans] | [Name] | □ |
12 | [Begin build-out; order equipment] | [Name] | □ |
10 | [Finalize menu, suppliers, and point-of-sale system] | [Name] | □ |
8 | [Open social accounts; begin local outreach] | [Name] | □ |
6 | [Post job listings; interview staff] | [Name] | □ |
4 | [Equipment installed; inspections scheduled] | [Name] | □ |
3 | [Hire staff; set schedules] | [Name] | □ |
2 | [Staff training and menu testing; final inspections] | [Name] | □ |
1 | [Soft opening for invited guests] | [Name] | □ |
0 | [Opening day] | [Name] | □ |
11. Risks
RISK | MITIGATION |
|---|---|
[Build-out runs over budget or schedule] | [Fixed-price contract; contingency in working capital] |
[Sales ramp slower than projected] | [Reserve covers [N] months of losses; reduce hours or staff] |
[Ingredient or labor costs rise] | [Menu price review every [N] months] |