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Insight: A coffee shop franchisers business plan



Posted by Callum Short on Feb 09, 2015



When it comes to the franchiser-franchisee relationship, it can be one of the most powerful assets for franchisee success and is often underestimated when looking into franchising. We think that the easiest way to understand a franchiser and what they're looking for is to take a dive into their own business plan. This will enable you to gain perspective on their incentives for franchising and therefore what you can do to accommodate what they're looking for. Here's a concisely written business plan that establishes the common interests of franchisers, enjoy.

Executive Summary
This is a coffee shop business plan for a high-volume, upscale, quality-driven coffeehouse with a warm, inviting atmosphere. Management believes there is a business opportunity to move upscale from the basic Starbucks, and offer a more comfortable, satisfying coffee shop experience.

This business plan is written to plan for rapid expansion of the business from one to multiple locations. It projects sales of $600,000+ in the first year, rising to more than $1,000,000+ by the third year. Management projects profit of approximately $100,000 in year one, growing to over $250,000 by the end of the third year.

Specialty Coffee Business: The Market
Primarily because of Starbucks, within the past 20 years the coffeehouse has become a familiar feature of American life. Every day, millions of Americans stop for an espresso-based coffee drink. People who would not have dreamed of spending more than 50 cents for a cup of coffee a few years ago now gladly pay $3 to $5 for their cappuccino, mocha latte or vanilla ice blended drink.

The specialty-coffee business is growing at a healthy pace. Starbucks, The Coffee Bean, Peet's, Diedrich's and other major chains serve average quality drinks in establishments that have the same generic design appearance. Indeed, Starbucks and The Coffee Bean are often referred to as "fast food" coffeehouses due to their "cookie cutter" design. Now that Americans' coffee preferences have broadened and matured, many are asking for more from their coffeehouse.

A niche exists that has yet to be filled for a high-volume, upscale, quality-driven coffeehouse with a warm, inviting atmosphere. This need can be met by creating a unique coffee business location or by tailoring a coffee franchise store to appeal to consumers craving the more comfortable, upscale experience.

Coffee Shop Keys to Success:

  • A superior-tasting product backed by a unique quality store
  • A relaxing, upscale interior design
  • Prime site selection with an upscale affluent population, year-round tourist activity, heavy pedestrian traffic by the site, a dynamic student population and a concentration of local businesses
  • A market that exposes Dark Roast Java to high-profile "trend-setters" and "key influencers"
  • Ongoing, aggressive marketing
  • Highly trained and friendly staff
  • Multiple revenue streams including gift items, gift baskets and coffee gift/frequency cards in addition to coffee, pastry, chocolates, tea, juice, water and soft drinks
    A dynamic website with online sales capability
  • Coffee Franchise Business Plan Forecast:
    Sales, Margin and Profit

    Financial Goals

    • Sales growth will be a minimum of 15% annually
    • Profits maintained at 20% - 25%
    • Marketing costs to be no more than 5% of sales.

    Coffee Franchise Monthly Profit Forecast

    The business plan forecasts the coffee shop will operate above break-even and generate a growing profit throughout its first year of operation.
    Executive Summary
    This is a coffee shop business plan for a high-volume, upscale, quality-driven coffeehouse with a warm, inviting atmosphere. Management believes there is a business opportunity to move upscale from the basic Starbucks, and offer a more comfortable, satisfying coffee shop experience.

    This business plan is written to plan for rapid expansion of the business from one to multiple locations. It projects sales of $600,000+ in the first year, rising to more than $1,000,000+ by the third year. Management projects profit of approximately $100,000 in year one, growing to over $250,000 by the end of the third year.

    Specialty Coffee Business: The Market
    Primarily because of Starbucks, within the past 20 years the coffeehouse has become a familiar feature of American life. Every day, millions of Americans stop for an espresso-based coffee drink. People who would not have dreamed of spending more than 50 cents for a cup of coffee a few years ago now gladly pay $3 to $5 for their cappuccino, mocha latte or vanilla ice blended drink.

    The specialty-coffee business is growing at a healthy pace. Starbucks, The Coffee Bean, Peet's, Diedrich's and other major chains serve average quality drinks in establishments that have the same generic design appearance. Indeed, Starbucks and The Coffee Bean are often referred to as "fast food" coffeehouses due to their "cookie cutter" design. Now that Americans' coffee preferences have broadened and matured, many are asking for more from their coffeehouse.

    A niche exists that has yet to be filled for a high-volume, upscale, quality-driven coffeehouse with a warm, inviting atmosphere. This need can be met by creating a unique coffee business location or by tailoring a coffee franchise store to appeal to consumers craving the more comfortable, upscale experience.

    Coffee Shop Keys to Success:

    • A superior-tasting product backed by a unique quality store
    • A relaxing, upscale interior design
    • Prime site selection with an upscale affluent population, year-round tourist activity, heavy pedestrian traffic by the site, a dynamic student population and a concentration of local businesses
    • A market that exposes Dark Roast Java to high-profile "trend-setters" and "key influencers"
    • Ongoing, aggressive marketing
    • Highly trained and friendly staff
    • Multiple revenue streams including gift items, gift baskets and coffee gift/frequency cards in addition to coffee, pastry, chocolates, tea, juice, water and soft drinks
      A dynamic website with online sales capability
    • Coffee Franchise Business Plan Forecast:
      Sales, Margin and Profit

      Financial Goals

      • Sales growth will be a minimum of 15% annually
      • Profits maintained at 20% - 25%
      • Marketing costs to be no more than 5% of sales.

      Coffee Franchise Monthly Profit Forecast

      The business plan forecasts the coffee shop will operate above break-even and generate a growing profit throughout its first year of operation.


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