Coffee Shop Business Plan Sample

Executive Summary

Concept

A local coffee shop increases the walkability and community of a neighborhood. At Bianca’s coffee shop we provide locals with high-quality coffee within walking distance of their apartment in Nashville’s Gulch. With fresh made coffee, made with high quality beans and local pastries and delicious breakfast sandwiches, Bianca Vermicelli is excited to bring her vision of a neighborhood coffee shop to life in one of Nashville’s most exciting areas.  

Mission Statement

Bianca’s mission is to provide high quality coffee and friendly service along with unexpectedly delicious breakfast sandwiches to Nashville’s Gulch neighborhood. Bianca’s aims to be a neighborhood mainstay for a quick iced coffee or a piping hot espresso. Set up like a traditional Italian espresso bar, Bianca’s will feature a large ordering area and several walls of standing bars. Unlike many American coffee shops with ample seating and wifi, Bianca’s will focus on quick and quality service and a traditional Italian feel. Guests will be able to make Bianca’s a daily habit without worrying about waiting for twenty minutes in long lines or slow service. There will be Italian pop music playing in the background and black marble countertops lending to the sleek European feel. 

Menu

Bianca’s will feature fresh roasted coffee beans with a variety of dairy and non-dairy options, cold brew coffee, and all the popular espresso drinks that customers expect from a high-end coffee shop. Guests will be able to know they are getting a quality and tasty morning coffee drink, as well as grab a small pastry or wait a few minutes for a panini breakfast sandwich. 

Market

The Gulch is a neighborhood located between Nashville’s Music Row and Downtown that features upscale hotels and boutiques as well as high-end apartments and trending restaurants. As Nashville has experienced a population boom in the past five years, and even more so since the pandemic, some might say the city has grown faster than it can keep up with. The result is new buildings and businesses popping up every month. With the rise of apartment-dwellers in the inner core of Nashville, there’s more foot traffic, something that Nashville hasn’t considered as part of its city planning in a long time. With more city dwellers and visitors walking the streets on foot and walking to work or to downtown amenities, Bianca’s provides the perfect on-the-go coffee shop that caters to this increasingly urbanized hamlet of the city. 

Financing

Bianca’s founder, Bianca Vermicelli, will be renting retail space on the first floor of a new boutique hotel building, beside an upscale personal training facility. She will be providing $50,000 of her own savings and utilizing a small business loan (SBA) for an additional $150,000 in capital to purchase the high-end espresso equipment, iPad point-of-sale registers, as well as the furnishings.

Company Overview

Coffee Shop Concept

Bianca’s is a local coffee shop for the modern young professional or urbanite. Boasting freshly-brewed artisan espresso, Bianca’s is committed to high quality and speedy service, but sets itself apart from fast-food or chain coffee shops with its Italian feel and coffee bar mentality. Casual coffee drinkers and aficionados alike can enjoy gourmet coffee in a variety of styles and flavors, meet other newcomers to the area, and find a sense of community in this quickly-growing area of the city. 

While Nashville is full of wonderful coffee shops and dining experiences, the city has been growing rapidly over the past five years and is now adapting to more urban dwellers, recent newcomers who expect to explore the city on foot and want local community offerings. Bianca’s will offer this with a communal feel and truly cater to the Gulch neighborhood. 

Coffee Shop Service Model

Bianca’s coffee shop serves the on-the-go patron with an Italian coffee bar experience. Patrons can make a quick and delicious purchase on their way to work or on their way to explore music row or downtown Nashville. Coupled with a delicious panini breakfast sandwich or a small pastry, it’s the kind of quality service experience local Gulch residents can make a part of their weekly routine or a treat every weekend. 

Customers will be able to access the wide coffee bar with multiple points of sale and several baristas. From there they can either take their drink to go or stand at the coffee bar, Italian style, and consume their drink. 

Sample Menu

• Espresso shots

• Iced cappuccino

• Iced lattes

  • Dairy milk

  • Almond milk

  • Oat milk

• Delicious flavorings

  • Lavender 

  • Vanilla

  • Almond

  • Caramel

  • Mocha

  • Peppermint

• Premade breakfast sandwiches available hot through a panini press

  • Bacon, egg and cheese

  • Spinach, feta and egg white

  • Canadian bacon and egg

  • Mozzarella and tomato

• Cold brew

• Local baked goods (not made in-house but purchased for sale from local bakers) such as muffins, brownies, and biscotti

Design and Layout

Bianca’s will be a bustling Italian-style coffee bar in the heart of Nashville’s Gulch neighborhood with marble standing coffee bars, dark polished wood, and modern Italian design lighting. The registers will be run through iPads and unlike most coffee bars with 1-2 baristas working at a time, this bar will feature 4-6 baristas to ensure fast service and an easy checkout. While many coffee shops offer order-ahead, this store will not make that offering because it will limit the customer experience and communal feel, and will also conflict with the authentic Italian coffee bar experience. 

The staff will be local Nashville residents who understand the neighborhood and can provide professional and prompt service. They will be knowledgeable about coffee and provide friendly and clear direction to customers as to how to matriculate through the coffee bar as well as be able to make astute coffee product recommendations. Italian pop music will play through the speakers, accompanying the grind and bustle of the espresso machines.

Management Team

Owners - Bianca Vermicelli will be the owner and proprietor of Bianca’s. An Italian-American, Bianca attended barista training in Rome and spent many summers visiting family and enjoying the authentic Italian coffee bar experience. Bianca is excited to bring her passion for delicious coffee and a “stand and drink” style espresso bar to the Gulch as well as provide a high-end local business to the neighborhood. 

Shift Staff - Bianca’s will hire hourly staff to assist Bianca in running the coffee shop. Hourly staff will make coffee drinks and run the register as well as reheat artisan breakfast sandwiches on the panini. Shift staff will be trained on safety procedures and as they learn more about Bianca’s, be invited to have access to the official Bianca’s Instagram account and answer DMs regarding hours and service as well as any special events. Additionally, shift staff will be invited to provide recommendations and coffee drinks.

Cleaning - aside from day-to-day pickup, cleaning will be outsourced and handled during the late evening as the coffee shop will not be open after 7:00 PM. 

Industry Analysis

Located in Nashville, Tennessee’s Gulch neighborhood, Bianca’s will attract a combination of heavy foot traffic of local residents as well as visitors staying at the high-end hotels in the area, as well as visitors from surrounding neighborhoods. 

Target Market

Nashville’s Gulch neighborhood is an upscale area situated perfectly between Music Row and Downtown Nashville. There are high-rise apartment buildings, hotels, restaurants, and luxury gyms. Rental prices are quite high, with one bedroom apartments averaging over $2500. There are several parking garages and people coming in and out of the area either to go out for dinner or to attend a personal training session. Additionally, the neighborhood has benefitted from the opening of several new and luxury hotels and additional rental spaces. 

Bianca’s aims to attract professional urbanites who have either moved to the neighborhood or frequent the area professionally or regularly. Additionally, Bianca’s will benefit from being located directly beneath a luxury hotel and in a walkable area where tourists may not have vehicles and may want to set out on foot en route to downtown or Music Row. 

Market Positioning

Rather than a typical or chain coffee shop common in major cities, Bianca’s is purposefully elevated and European in terms of look, location, and customer service model. Bianca’s is for the modern urbanite who understands quality coffee and wants consistently delicious drinks and reliable service in a chic setting. Because Gulch’s residents will expect the best, Bianca’s will rise to the occasion and adhere to quality and style, with a chic business model reminiscent of that they may have experiences in Rome. 

Bianca’s also plans to integrate local baked goods and breakfast sandwiches to offer a complete range of product offerings and provide patrons with a full breakfast offering in addition to a quick espresso shot or a grab-and-go cup of coffee. Bianca’s ambiance will be upscale, minimalist, with high-end light fixtures and black marble. No stools will be offered, and the model will be a large espresso bar and marble standing bars nearby, offering an Italian-style coffee bar experience. 

Location Analysis

The Gulch neighborhood of Nashville is the perfect location for residents who want to be in the middle of the action. With easy access to downtown and a quick walk to Music Row, it’s ideal for successful young professionals who do not want to compromise on location. With upscale hotels just opening in the area, there are plenty of rooftop parties, pool parties, and trending bars for drinks as well as inspired fusion restaurants for dinner. 

While the Gulch is a small area of Nashville, the city itself boasts just under 700,000 people, but that does not take into account how quickly the city is growing. Nashville has grown well over 10% in the last five years and is the fastest-growing city in America, particularly since the pandemic, due to the cost of living and economic opportunities. The city is projected to more than double in size within twenty years. 

Competitive Analysis

Marketing Plan

Bianca’s is about the authentic Italian coffee bar experience. The price point is somewhat steep but fair for the quality of the coffee and the dedication to the craft of coffee-making. Bianca’s will also offer high-quality pastries and biscotti made throughout Nashville for patrons looking for something to eat as they walk, and panini sandwiches for those looking for a full breakfast. While Bianca’s is upscale, it does not want to compromise on being a vibrant and approachable business within the community, and hopes to deliver time and time again on service and friendly customer experiences.  

Customer Database

Bianca’s will engage with local hotels and offer incentives to come to the coffee shop, such as a free miniature scone with your first coffee. This will help travelers learn about the coffee shop and come in for a great experience during their visit. Additionally, Bianca’s will promote through targeted Instagram ads and by having visible signage outside their location, as well as the natural marketing of the music playing through the windows of the coffee shop. 

Loyalty Program

As a means to retain local customers, customers will have the option to sign up for digital punch cards for a free espresso shot and a free drink on their birthday. Bianca’s will also run promotions for customers who are interested in trying new and seasonal drinks, with a 20% discount for new offerings and limited-time drinks.  

Community and Charity Involvement

In order to become established in this growing neighborhood, Bianca’s will make appearances at local events, sponsor local non-profit efforts, as well as community-building events. Bianca’s will make sure to be visible local and nearby holiday events, as well as initiatives that champion diversity and inclusivity. 

Public Relations

Bianca’s will participate in local word-of-mouth public relations as well as rely on Google reviews to bolster search engine optimization (SEO) and online visibility. Further, Bianca’s will solicit community feedback through their social media, specifically through Instagram Story polls and user comments. Followers will be invited to share their feedback and review the espresso and Bianca and affiliated staff will be prompt in responding and engaging with the community online. 

Bianca’s will also cross-promote local bakeries and businesses that make the baked goods sold at Bianca’s. 

Advertising and Social Media

Bianca’s will rely on a strong Instagram presence to promote the unique Italian experience of the coffee bar as well as share new pastries, breakfast sandwiches, updated hours and hiring news. The sleek Italian marble countertops and bespoke fixtures will make for great photo opportunities as well as the quality and training of the baristas and their coffee drinks.

Operations Plan

Staffing and Training

Bianca’s biggest priority is to hire well-trained baristas who have either relevant pre-existing experience or have completed a recent barista course. Because of the level of quality expected of an upscale Italian coffee shop, this is a non-negotiable feature. Additionally, Bianca wants to hire people who coffee is their passion and who can make astute recommendations about products, orders, and are familiar with advanced coffee terminology. 

Training for staff will take place in the months leading up to the shop’s opening. The owner will conduct interviews and hire the staff based on Bianca’s values and their answers to the below interview questions. 

Recruitment

To recruit experienced and competent hourly staff, Bianca will heavily recruit using hiring websites and community-based hiring. The hiring process will prioritize experienced and competent workers who can multitask and love coffee. However, in order to recruit high quality baristas, Bianca’s will promote a higher-than-average pay scale and respect the experience of applicants as well as ask them to do several test drinks during their interviews. 

Interview Questions

1. What are some of the factors that impact the taste of espresso?

2. Can you describe some of the different ways that a customer can order a cappuccino? 

3. How is cold brew made?

4. What is a flat white?

5. What’s your favorite coffee drink?

6. What drink do you recommend to someone who is new to drinking coffee and wants to try something new?

Job Descriptions

Owners: 

The owner will handle the financial and administrative operations of the business, work with the input of shift workers for marketing and creative ideas, fill in for shifts as needed, and work to help train the hourly staff. 

Hourly Workers:

Shift workers are responsible for greeting all patrons and making quality coffee products in a high-end and elevated atmosphere. They will participate in tasting new product offerings and experienced shift workers will also be able to update the shop’s social media and interact with customers online. All shift workers are responsible for restocking the products and refilling the accouterments as well as operating the point-of-sale and cash register.

Work Health and Safety Standards

In order to make Bianca’s as safe a working environment as possible for everyone, we will implement the following health and safety procedures.

• All staff are required to wear slip-resistant footwear. 

• All shift workers must be of legal age or have proper working certifications. 

• 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 shop.

• Management staff will work to create safe practices and procedures and remove potential hazards to employees and guests.

• Staff will not be expected to work when ill and management will help to get shifts covered and keep the coffee shop running smoothly so that the pressure doesn’t fall on ill employees.

• Bianca’s will follow all local health guidelines and restrictions regarding the COVID-19 pandemic.

Staffing Model

Bianca’s will operate an open-book management model where the shop’s finances and revenue are shared and disseminated to all employees. Bianca’s will hold bi-weekly staff meetings to share information about the business’s goals. The transparent model will foster goodwill with employees and promote a sense of inclusivity and community. 

• The owner will make a base hourly pay of $25 an hour plus shared tips. 

• Shift workers will make a base hourly pay of $20 an hour plus shared tips. 

• The owner will not take profits until the business is fully solvent and debts have been repaid.

• Long-term employees will be eligible for profit-sharing and potentially partial ownership. 

Customer Service Policies and Procedures

Three principles will guide guest service at Bianca’s:

1. Quality - patrons at Bianca’s should know they are receiving an elevated Italian coffee shop experience so workers will understand that every coffee is made custom to order and done with precision and care. Paninis will be carefully reheated and pastries will be available warmed. 

2. Competence - a knowledgeable coffee ordering customer service environment where guests can receive beautiful and well-made drinks and be on their way. To-go experience will be equally friendly but prioritize speed and competence. 

3. Community - Bianca’s is a community business in Nashville, and has pride for the neighborhood and as a business within the neighborhood. Everyone is welcome and locals are made to feel at home. 

4. Craftsmanship - this is where you go to get coffee made by a real barista. Staff will be knowledgeable and take pride in the coffee at Bianca’s. 

5. Inclusivity - Bianca’s is a forward-thinking small business and everyone is welcome. Staff members will treat all patrons with respect and dignity.

Suppliers

Bianca’s will work with several local bakeries. Bianca’s will also source local syrups and flavors suppliers and look towards using local dairy and dairy alternatives. Featured products will be mentioned on the menu by name and tagged on social media promoting a business model of pride and co-promotion. 

Financial Analysis and Growth Plan

$8 average ticket per order, about 1.5 coffee drinks. 

Investment Plan

Bianca Vermicelli will invest personal savings, for a total of $50,000 in initial investment. She will be taking out an additional $150,000 in small business loans (SBA) to buy specialized. Total startup funds equal $200,000. The owners will not take a cut of profit until the business is able to pay back its loans and is completely solvent. 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.