Cafe Business Plan Sample
Take some inspiration for your cafe business plan with this sample.
Aimee LevittAuthor
Cafe and Bakery POS Comparison Tool
A free, customizable Cafe and Bakery POS Comparison Tool to research and compare point of sale systems in one Excel spreadsheet or editable PDF.
Get free downloadExecutive Summary
Concept
Every dog owner will agree that there’s no better companion than a canine. At Joe’s Dog Cafe, located in Ravenswood, one of Chicago’s most dog-friendly neighborhoods, we allow dogs and their humans to spend their leisure time together in a space unlike any other in Chicago. While the humans sit and drink their coffee or enjoy snacks on the outdoor patio, dogs can rest beside them or play in the attached dog park.
Mission Statement
Joe’s Cafe’s mission is to create a warm and welcoming space where dogs and their humans can spend time and socialize together. We understand that it’s important to let dogs be dogs, which is why there will be ample space for them to play while humans enjoy fine caffeinated beverages and snacks.
Menu
Joe’s Cafe will feature a full menu of hot and cold coffee drinks and tea from local Chicago roasters and pastries from local bakers. There will also be gourmet dog treats, bottles of dog beer, and complimentary bowls of water. All drinks and food will be available to stay or to go.
Market
Located in the heart of Chicago’s north side, Ravenswood is considered one of the city’s most dog-friendly neighborhoods. It’s highly walkable with plenty of dog-friendly businesses that cater to adults in their 30s with disposable income. Home to nearly 20,000 and accessible to many more, Ravenswood offers plenty of opportunity for new business ventures.
Financing
The cafe’s founders will invest in its success, but they will also have to seek SBA loans, outside investments, and business lines of credit to bring this vision to life.
Restaurant Opening Calculator
This calculator lays out some of the fundamental financial costs of opening a restaurant, so you can start planning and bring your dream restaurant to life.
Company Overview
Restaurant Concept
Joe’s Cafe is an informal coffee shop that caters to dogs and the humans that love them. The menu features beverages and snacks for both humans and dogs, including pastries, gourmet pet treats, and locally roasted coffee.
Joe’s Cafe will be unique among local coffee shops in that it allows socializing opportunities for both humans and dogs: a patio with tables and chairs where humans can sit while dogs play in the adjoining dog park. In the winter, there will be heat lamps and a firepit to keep the humans warm. There will also be beds for dogs who want to rest. In short, it will have all the benefits of a dog park with the comforts of a cafe.
Restaurant Service Model
Joe’s Cafe will use a continued service model so customers can order from their phones without leaving their dogs. Customers will be able to scan QR codes on the tables and servers will bring them their food and drinks. Counter service will also be available for customers who would rather have a personal interaction with baristas.
Sample Menu
Brewed coffee
Espresso drinks
Cold brewed coffee
Seasonal specialty coffee drinks
Dog beer
Gourmet pet treats from local manufacturers
Pastries from local bakers
Rawhides and bones
Complimentary water bowls and Milk Bones
Design and Layout
Joe’s Cafe will have a small indoor seating area with a few small tables and stools by the coffee bar, but the bulk of the seating will be on the large covered patio that backs up to a large lawn area where dogs can play. The seating will be primarily tables and chairs, with a few Adirondack chairs and beds for dogs. There will be heat lamps and a firepit in cold weather.
Drinks for the humans will be served in disposable cups and food will be in plastic baskets. Dogs will be served from metal bowls.
Menu Engineering Course
Take this course to make the most of your menu. Learn about menu psychology and design, managing your menu online, and adapting your menu to increase sales.
Management Team
Owner: Joe Viney – 15 years of industry experience, including 10 years managing a coffee shop. Responsibilities include financing, administration, hiring, and marketing. He will work with an accountant on financial planning and a social media consultant.
Managing Partner: Abby St. Louis – 10 years of industry experience, plus 5 years as a dog trainer. Responsibilities include shopping, hiring staff, scheduling servers, and menu pricing.
Industry Analysis
Located in Chicago’s Ravenswood neighborhood, Joe’s Cafe will attract a combination of local foot traffic, and visitors from elsewhere in the city.
Target Market
Joe’s Cafe will cater to dog owners and to people who don’t have their own dogs but want to spend time with them. The population of Ravenswood is affluent, with a large population of couples in their 30s and 40s who have dogs instead of children and families with young children. Joe’s Cafe will provide a place for outdoor socializing for people who are still concerned about COVID-19 and are wary of other forms of entertainment, like movie theaters. The ability to order and pay at the table through contactless payment will ease some of those worries and allow pet owners to remain with their dogs.
Market Positioning
Dog owners are willing to buy just about anything for their pets, so Joe’s Cafe will maintain a well-curated retail area with select toys, treats, and branded apparel for dogs, like bandanas, plus matching dog and human sweatshirts. There will also be bags of coffee (both whole-bean and ground) for the humans.
Location Analysis
Ravenswood, along with the rest of Chicago’s north side, is considered a high-growth area. With both traditional infrastructure and a robust public transit system, Ravenswood sees a steady influx of new businesses, bringing new workers (and, thus, new customers) into the area. It’s also just a few miles from the Montrose Beach Dog Park, the city’s largest.
Ravenswood is home to nearly 20,000 residents, many of whom work from home. There is a healthy mix of apartments and single-family homes in the area.
Ravenswood is beautiful and walkable, and the location of Joe’s Cafe is accessible to foot traffic. There is ample street parking in the area. Ravenswood is also serviced both by the CTA and Metra, making it accessible to millions of Chicagoans.
Competitive Analysis
Seats | Meals | Pricing | Hours | Notes | |
Joe’s Cafe | 30 | Coffee shop | * | 7:00 am - 7:00 pm | Outdoor seating |
Dovetail Brewery | 50 | Brewery | ** | 3:30 pm - 10:00 pm | No parking / small patio |
Marketing Plan
Dogs are unequaled in their ability to bring humans together, but we at Joe’s Cafe will do our best to make sure that the humans and dogs keep returning.
Customer Database
When customers come to Joe’s Cafe, we will collect their email addresses and ask if they would like to sign up for marketing emails as well as a weekly newsletter that collects the best dog news and memes of the week. Customers will also be able to sign up for promotional emails on our website and social media pages. Emails will be used to advertise seasonal menu items and retail sales.
Loyalty Program
Each dollar spent at Joe’s Cafe, including online orders, will be converted into a point for our loyalty system. Customers will be able to exchange every 100 points they accrue for coffee or pet treats. The loyalty system will be attached to a customer’s email address. That will allow us to collect emails for our marketing databases.
Community and Charity Involvement
At Joe’s Cafe, we are committed to the community. That’s why we will partner with Felines & Canines and PAWS, two local animal shelters and adoption services. We will host adoption events periodically throughout the year and donate 25% of the profits we earn from the sales of retail items to the shelters.
Public Relations
Chicago has a robust food media scene and we plan to reach out to local newspapers and websites about our opening, including promotional photos and videos that include puppies. We also plan to advertise at local pet stores, groomers, and doggy day cares.
Joe’s Cafe will also take part in Ravenswood On Tap, the neighborhood’s premier summer festival, where it will sell dog treats and dog beer and pass out promotional items.
Advertising and Social Media
We plan to use every method available to make our presence known, and that includes social media. We plan to post regular photos of our four-legged customers on our Facebook, Twitter, Instagram, and TikTok and invite our followers to share photos of their own dogs enjoying themselves at Joe’s Cafe.
Additionally, we will rely on word-of-mouth marketing and consistent foot traffic through Ravenswood’s main shopping streets. We’ll also encourage our customers to share their positive reviews on Yelp.
Guide to Restaurant Social Media Marketing
Learn how to optimize your social media presence to showcase your brand, tell your story, attract new customers, and engage with your audience.
Operations Plan
Staffing and Training
There are three critical roles to fill at Joe’s Cafe: the manager and two assistant managers. We will also hire about 7 baristas.
Training for staff will take place in the months leading up to the cafe’s opening. The owner and managing partner will conduct interviews and hire the manager and two assistant managers. Then, we will work with the manager to hire the baristas.
Recruitment
To recruit skilled baristas, we will use Indeed.com, Ziprecruiter.com, and Ravenswood’s online job board. Our hiring process will be selective; we want every member of the team to be committed to creating a social space for humans and dogs.
Interview Questions
What are your career goals?
How would your previous employer describe you?
Describe how you work as part of a team. What role are you comfortable in on the team?
What is one of your biggest accomplishments?
When are you available to work?
What challenged you the most in your last job?
What is your coffee drink? How would you describe it to a guest?
How do you handle conflict with coworkers?
What skills do you see as necessary for success in this role?
How do you interact with dogs?
Job Descriptions
Manager:
The manager oversees all operations. Their duties include hiring and training, scheduling, overseeing production, quality control, keeping track of inventory, leading staff, and customer care. They are also involved in marketing and promotion.
Assistant Manager:
The assistant manager oversees all operations when the manager isn’t around or available.
Barista:
Baristas are responsible for making drinks, serving customers, washing and sanitizing equipment, and keeping the store clean and organized and the patio and lawn free of litter and other debris. They should be able to answer any questions about the menu and ingredients, and understand how to handle dietary restrictions. They will be able to make connections with customers and build a community within Joe’s Cafe.
Work Health and Safety Standards
In order to make Joe’s Cafe as safe a working environment as possible for everyone, we will implement the following health and safety procedures.
Everyone will wear proper protective equipment and clothing. All staff are required to wear slip-resistant footwear.
To avoid injury on the job, all staff will be trained on how to move heavy objects and boxes and how to handle the extremely hot or cold temperatures of the restaurant.
Management staff will work to create safe practices and procedures and remove potential hazards to employees and guests.
FOH and BOH staff will work together to communicate about guests’ dietary restrictions and avoid cross-contamination of products.
Staff will not be expected to work when ill and management will help to get shifts covered and keep the restaurant running smoothly so that the pressure doesn’t fall on ill employees.
Joe’s Cafe will follow all local health guidelines and restrictions regarding the COVID-19 pandemic.
Staffing Model
Joe’s Cafe will operate under a gratuity-free model in which customers are automatically charged a 20% hospitality fee in lieu of tips so that baristas and assistant managers are paid an hourly living wage and offered health insurance. This is to foster goodwill among employees.
Baristas will be paid $18/hour.
Assistant managers will be paid $20/hour.
All employees will be eligible for raises with each satisfactory employee evaluation, conducted once per quarter.
Customer Service Policies and Procedures
Three principles will guide guest service at Joe’s Cafe:
Community. The first goal of customer service is to make each guest feel like part of the community. Staff will be friendly, welcoming, and attentive to the needs of guests, both human and canine. They will offer detailed answers to questions and respect food restrictions.
Consistence. The staff will work to provide a consistent guest experience. The baristas will be warm, patient, and informative during every visit.
Compassion. All guests have different needs and our service staff will be trained to handle different kinds of customers and their dietary needs with compassion. When conflicts with guests arise, servers will lead with patience and understanding to de-escalate.
Suppliers
Joe’s Cafe will be a cash-free business. We will use a POS system to process credit cards and track sales and inventory and time management software for scheduling.
We will get our coffee from a local roaster and pastries and dog treats from local producers.
For restaurant supplies, we will develop a relationship with the local restaurant supply company so that we have convenient access to the equipment and supplies that we need.
Financial Analysis and Growth Plan
$10/seat/hour
Investment Plan
Owner Joe Viney and Managing Partner Abby St. Louis will each invest personal savings of $25,000, for a total of $50,000 in initial investment. They will also seek a 7(a) Small Business Association loan for $20,000 and outside investments of $50,000 from business owners and entrepreneurs in the Alexandria area. Total startup funds equal $120,000. $20,000 will be retained for contingency funds and the remaining $100,000 will be used as startup funds for an espresso bar and other equipment, furniture, display cases, payroll, rent, legal fees, marketing, and working capital.
Outside investors will be pitched a 15% return-on-investment, for a total of $15,000/annually, once the business becomes profitable. The owner and executive chef won’t take a salary until the restaurant becomes profitable, at which point they will cap their personal salaries at $90,000/year.
Business lines of credit will be sought for some expenses, such as initial orders for equipment, supplies, and ingredients. They will refuse any lines of credit above 5% interest.
Is this article helpful?
DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.
Read More
Subscribe to On the Line
Sign up to get industry intel, advice, tools, and honest takes from real people tackling their restaurants’ greatest challenges.