Coffee Shop Pro Forma Template

Once the Assumptions sheet is set, review the Revenue Projections and COGS & Labor sheets to confirm the outputs look realistic. Check that your projected beverage cost percentage lands in the 25–35% range and that your labor percentage is in the 35–40% range — if either is significantly off, adjust the corresponding assumption rather than editing individual cells. If you're projecting a new location, fill in the startup costs section of the Cash Flow sheet: buildout, equipment, initial inventory (roughly 2–3 weeks of COGS), security deposits, and a working capital reserve of at least 3 months of operating expenses.

The beverage-first economics of coffee are what make the category interesting. A well-run cafe runs 60–70% gross margins on drinks — one of the highest gross margins in food service — because a $5.50 latte costs less than $2 to produce. The margin compression happens at the net level: labor is high because coffee service is labor-intensive during rush periods, and equipment costs are significant. The pro forma helps you stress-test these dynamics: what happens to net margin if milk prices rise 15%? What if you add a second barista during the morning rush? What does the business look like in year two when training costs drop and the team is more efficient?