Coffee Shop Business Plan Template

Move to the Revenue Forecast sheet and enter your assumptions: how many customers per day during the ramp-up period (most coffee shops start at 40–60% of capacity in month one and reach 80–95% by month four), what's your average transaction value (espresso drinks average $5–$6, drip coffee $2–$3, food items add another $3–$5), and how seasonal is your location (downtown commute locations stay strong year-round; suburban vacation towns spike in summer). Adjust the labor staffing to match your concept—a small walk-up counter operation needs fewer staff than a full-service seating area with WiFi and long-stay customers.

Labor is the largest operating expense in most coffee shops, running 35–45% of revenue depending on whether you operate a simple counter-service model or a full-service cafe with seating and WiFi. A single-location owner-operated shop can hit 30% labor with strong discipline and good scheduling. A fully-staffed cafe with morning rush coverage, afternoon coverage, and evening closers will run 40–45%. Coffee cost should be 18–22% of revenue; pastries and food typically add another 20–25% to COGS. Occupancy (rent, utilities, insurance) usually runs 8–12% of revenue; avoid exceeding 12% or profitability becomes difficult. The math is tight but achievable if you control these three inputs.