Cat Cafe Business Plan
You’ve come to the right place to create your Cat Cafe business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Cat Cafe establishments.
Below is a template to help you create each section of your Cat Cafe business plan.
Executive Summary
Business Overview
The Kitty Kafé is a new cat café located in Cleveland, Ohio. The café provides a feline-friendly atmosphere and matches local residents with adorable, adoptable shelter cats. We take on a selection of cats from our local shelter partners and let them interact with our customers in order to find them a loving and safe home. Residents can make a reservation on our website and spend their visit drinking delicious coffee or tea while playing with our friendly felines.
The Kitty Kafé is led by Katy Keller, a life long cat owner. She has considerable experience managing local cafés as well as years of experience volunteering at local cat shelters. Her love for cats and her unique experience make her the perfect candidate to run our cat café.
Product Offering
The Kitty Kafé will provide the perfect opportunity for local residents to meet and adopt adorable cats. We will provide a calming and welcoming atmosphere where humans and felines can connect. To enjoy a visit at our café, customers must make a reservation online and pay a small fee.
The café will have a rotating lineup of cats, depending on how quickly they get adopted. Once a resident or family finds a cat they want to adopt, they will start the official adoption process with a shelter official and take the cat home as soon as possible. Once a few cats are adopted, we will request a few more from local shelters to take their place.
While our customers spend quality time with our cats, they will be offered a menu full of coffee drinks, teas, and food items to enjoy. Some of offerings we will have on our initial menu include:
- Coffee
- Black tea
- Green tea
- Bubble tea
- Lattes
- Mochas
- Cappuccinos
- Frozen coffee drinks
- Sandwiches
- Bakery items
Customer Focus
The Kitty Kafé will primarily serve the residents of Cleveland, Ohio who live near our café. We will primarily target residents who are interested in adopting cats. This target demographic will include middle class residents, families, and individuals aged 25-44.
Management Team
The Kitty Kafé is led by Katy Keller, who is a lifelong cat owner and lover. For five years, she has volunteered at a local cat shelter and has learned all aspects of cat care, shelter operations, and the adoption process. She has fallen in love with many of the cats that live there, especially the cats who have been at the shelter for many years. Over time, she developed a strong desire to do more to find loving homes for these adorable felines. When she had heard about cat cafés from a friend, she decided that would be the perfect business opportunity to help her feline friends.
Katy has also spent much of her career managing a local coffee shop. Her career has given her the experience and in-depth knowledge to understand the operations and management sides of the business. Katy’s combined love and knowledge of cats and coffee gives her the perfect experience and skills to run a cat café.
Success Factors
The Kitty Kafé will be able to achieve success by offering the following competitive advantages:
- Adoptable cats: Our café is enhanced by the presence of adorable and adoptable cats. They create a unique atmosphere and bring joy to everyone who comes to our café. The cats come from local shelters and live in the café until they are adopted. Any customers who are interested in adopting one of our cats can start the process with a shelter official.
- Location: The Kitty Kafé will be located in a high-traffic area that is easy for residents to access. The location is in the heart of downtown and is easily accessible by foot or car.
- Management: Our management team has years of experience working in both animal shelters and café businesses.
Download the Cat Cafe business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
The Kitty Kafé is currently seeking $450,000 to launch. The funding will be dedicated towards securing the retail space and purchasing equipment and cat supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. Specifically, these funds will be used as follows:
- Café design/build: $200,000
- Equipment: $50,000
- Cat supplies: $50,000
- Equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $100,000
- Marketing costs: $20,000
- Working capital: $20,000
The following graph below outlines the pro forma financial projections for The Kitty Kafé.
Company Overview
Who is The Kitty Kafé?
The Kitty Kafé is a new cat café located in Cleveland, Ohio. The café provides a feline-friendly atmosphere and matches local residents with adorable, adoptable shelter cats. We take on a selection of cats from our local shelter partners and let them interact with our customers in order to find them a loving and safe home. Residents can make a reservation on our website and spend their visit drinking delicious coffee or tea while playing with our friendly felines.
The Kitty Kafé is led by Katy Keller, a life long cat owner. She has considerable experience managing local cafés as well as years of experience volunteering at local cat shelters. Her love for cats and her unique experience make her the perfect candidate to run our cat café.
The Kitty Kafé’s History
While working for an animal shelter, Katy Keller noticed that many cats stayed in the shelter for years before getting adopted. She also found that the shelters often did not have the budget or resources to adequately market their cats to lovable homes. After learning about cat cafes from a friend, Katy decided that this would be the perfect business opportunity to connect residents with local cats that may not have been discovered elsewhere.
Katy incorporated The Kitty Kafé on February 1st, 2023 and found a potential retail location soon after. The business is currently being run from Katy’s home, but once the lease on the retail location is finalized, all operations will be run from there.
Since incorporation, the company has achieved the following milestones:
- Found a retail location and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website
- Created the initial coffee, tea, and food menus
- Determined equipment and inventory requirements
- Began recruiting key employees
The Kitty Kafé’s Services
The Kitty Kafé will provide the perfect opportunity for local residents to meet and adopt adorable cats. We will provide a calming and welcoming atmosphere where humans and felines can connect. To enjoy a visit at our café, customers must make a reservation online and pay a small fee.
The café will have a rotating lineup of cats, depending on how quickly they get adopted. Once a resident or family finds a cat they want to adopt, they will start the official adoption process with a shelter official and take the cat home as soon as possible. Once a few cats are adopted, we will request a few more from local shelters to take their place.
While our customers spend quality time with our cats, they will be offered a menu full of coffee drinks, teas, and food items to enjoy. Some of offerings we will have on our initial menu include:
- Coffee
- Black tea
- Green tea
- Bubble tea
- Lattes
- Mochas
- Cappuccinos
- Frozen coffee drinks
- Sandwiches
- Bakery items
Industry Analysis
Cat cafés are a relatively new type of business. The first cat café opened up in 1998 in Taiwan. Since then, this type of business has exploded in popularity and now cat cafés can be found all around the world. Now, cat cafés are in high demand, especially in areas with thousands or millions of cat lovers.
Cat cafés not only offer a relaxing environment to unwind after a stressful day but a chance to meet and interact with adorable cats. Since the first one opened in 1998, thousands of cats have been adopted through cat cafés, relieving the burden of local shelters and providing safe homes for lovable cats. This has shown that not only does this industry provide unique and fun locations to relax, but also does a great service for the shelter cat population. Many people support any business that cares about animals’ well-being, so it’s no wonder that cat cafés are in such high demand.
Furthermore, the love for our feline friends has risen dramatically in recent years. Approximately 45.3 million households own at least one cat and this number is rising. Moreover, about 32% of cat owners are millennials and it is expected that Gen Z will love cats just as much when they fully reach adulthood. With an increase in feline popularity, more people will be searching for adoptable cats to add to their family.
With the popularity of cat cafés and cats in general, this is a perfect time to open up such a business. By combining the love of cats with the joy of coffee and tea (two drinks that are universally loved), this is a niche industry that will be prosperous for a long time.
Download the Cat Cafe business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
The Kitty Kafé will serve the residents of Cleveland, Ohio and its surrounding areas.
Cleveland’s residents are middle-class and hard-working. They love to frequent coffee shops to relax but are also looking for pets to bring more joy to their home. Therefore, much of the local population will enjoy our café.
The precise demographics for Cleveland, Ohio are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
The Kitty Kafé will primarily target the following customer profiles:
- Cat lovers
- Locals aged 25-44
- Families
Competitive Analysis
Direct and Indirect Competitors
The Kitty Kafé will face competition from other companies with similar business profiles. A description of each competitor company is below.
Purrfect Coffee
Purrfect Coffee is the only other cat café located in Cleveland, Ohio. Established in 2015, Purrfect Coffee has provided a relaxing atmosphere enhanced by the presence of five particular cats: Callie, Jade, River, Oliver, and Max. Each cat is extremely friendly and loves interacting with strangers, creating a café experience unlike any other.
However, the cats at Purrfect Coffee are not up for adoption. They all belong to the founder and owner of Purrfect Coffee and only exist to help create a calming atmosphere. The Kitty Kafé differs in that it showcases cats that can be adopted.
Wag Café
Wag Café is a fun and energetic café to visit if you’re a dog lover. From the outside it looks like a normal coffee shop, but indoors you’ll find dozens of customers with their dogs roaming the café. Wag café is the only café in town that allows dogs indoors so that they can interact with each other and other customers. Wag café also benefits the local community by donating part of its profits to local dog shelters and canine related causes.
Though Wag Café is a great business and will continue to thrive, patrons who are more interested in interacting with cats will prefer to frequent The Kitty Kafé.
Starbucks
Starbucks is our biggest competitor for customers. Starbucks has cafés in multiple locations throughout downtown Cleveland, Ohio but has been popular nationwide for decades. The company offers a wide selection of coffee drinks, several options for meal and snack options, and a popular rewards program.
We expect that Starbucks will continue to thrive based on its location, convenience, and recognizability. However, since Starbucks does not showcase pets or allow any pets indoors, it does not offer any animal-related competitive advantages.
Download the Cat Cafe business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
The Kitty Kafé will be able to offer the following advantages over their competition:
- Adoptable cats: Our café is enhanced by the presence of adorable and adoptable cats. They create a unique atmosphere and bring joy to everyone who comes to our café. The cats come from local shelters and live in the café until they are adopted. Any customers who are interested in adopting one of our cats can start the process with a shelter official.
- Location: The Kitty Kafé will be located in a high-traffic area that is easy for residents to access. The location is in the heart of downtown and is easily accessible by foot or car.
- Management: Our management team has years of experience working in both animal shelters and café businesses.
Marketing Plan
Brand & Value Proposition
The Kitty Kafé will offer the unique value proposition to its clientele:
- Offering high-quality coffee, tea, and food items
- Offering a unique environment filled with adorable felines
- Benefitting the local community by connecting residents with shelter cats and easing the burden of local shelters
- Providing excellent customer service
Promotions Strategy
The promotions strategy for The Kitty Kafé is as follows:
Website/SEO
The Kitty Kafé will develop a professional website that showcases pictures of the current resident cats as well as a menu of our food/drink offerings. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
Katy Keller will create the company’s social media accounts and invest in ads on all social media platforms. These accounts will showcase pictures and videos of the cats to increase their chance of getting adopted. The company will use targeted marketing to appeal to our target demographics.
Partnerships
The Kitty Kafé will partner with local shelters, vets, and animal rights causes to gain awareness of our café. These partnerships will also help us get the supplies needed to properly care for the cats.
Pre-Opening Events
Before opening the café, The Kitty Kafé will organize pre-opening events designed for prospective customers and press contacts. These events will create buzz and awareness for The Kitty Kafé in the area.
Pricing
The Kitty Kafé will price its drink and food moderately and keep prices competitive with other local cafés. The reservation fee will also be moderate so that no resident or family is priced out from meeting cats they want to adopt.
Operations Plan
The following will be the operations plan for The Kitty Kafé.
Operation Functions:
- Katy Keller will be the Owner and Store Manager of The Kitty Kafé. She will manage the general operations of the company.
- Katy will be joined by Max Smith, who will be the Assistant Manager of the café. He will run the store when Katy is not around and help with customer service and training the staff.
- The café will also staff several associates who will take turns caring for the cats and making drinks and food for customers.
- Katy will also hire an Administrative Assistant to help with the operations, marketing, and administrative aspects of the business.
- The café will also have a shelter official in the café everyday in case any customers choose to adopt one of the cats.
Download the Cat Cafe business plan template (including a customizable financial model) to your computer here <–
Milestones:
The Kitty Kafé will have the following milestones completed in the next six months.
- 07/202X Finalize lease agreement
- 08/202X Design and build out The Kitty Kafé
- 09/202X Hire and train initial staff
- 10/202X Kickoff of promotional campaign
- 11/202X Launch The Kitty Kafé
- 12/202X Reach break-even
Management Team
The Kitty Kafé is led by Katy Keller, who is a lifelong cat owner and lover. For five years, she has volunteered at a local cat shelter and has learned all aspects of cat care, shelter operations, and the adoption process. She has fallen in love with many of the cats that live there, especially the cats who have been at the shelter for many years. Over time, she developed a strong desire to do more to find loving homes for these adorable felines. When she had heard about cat cafés from a friend, she decided that would be the perfect business opportunity to help her feline friends.
Katy has also spent much of her career managing a local coffee shop. Her career has given her the experience and in-depth knowledge to understand the operations and management sides of the business. Katy’s combined love and knowledge of cats and coffee gives her the perfect experience and skills to run a cat café.
Financial Plan
Key Revenue & Costs
The Kitty Kafé’s revenues will primarily come from the sale of coffee drinks, tea, and food. The café will also make some revenue from its reservation fees.
The major costs for the company will be food and drink supply costs, salaries of the staff, cat supplies, and rent for a prime location. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.
Funding Requirements and Use of Funds
The Kitty Kafé is currently seeking $450,000 to launch. The funding will be dedicated towards securing the retail space and purchasing equipment and cat supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. Specifically, these funds will be used as follows:
- Café design/build: $200,000
- Equipment: $50,000
- Cat supplies: $50,000
- Equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $100,000
- Marketing costs: $20,000
- Working capital: $20,000
Download the Cat Cafe business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Number of customers per day:
- Year 1: 20
- Year 2: 35
- Year 3: 50
- Year 4: 80
- Year 5: 100
- Average order value: $12
- Average number of cats living in the café: 10
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Cat Cafe Business Plan FAQs
What Is a Cat Cafe Business Plan?
A cat cafe business plan is a plan to start and/or grow your cat cafe business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Cat Cafe business plan using our Cat Cafe Business Plan Template here.
What are the Main Types of Cat Cafe Businesses?
There are a number of different kinds of cat cafe businesses, some examples include: Adoptions, Permanent residents, Full-service dining, and Themed cafe.
How Do You Get Funding for Your Cat Cafe Business Plan?
Cat Cafe businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Cat Cafe Business?
Starting a cat cafe business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Cat Cafe Business Plan - The first step in starting a business is to create a detailed cat cafe business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your cat cafe business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your cat cafe business is in compliance with local laws.
3. Register Your Cat Cafe Business - Once you have chosen a legal structure, the next step is to register your cat cafe business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your cat cafe business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Cat Cafe Equipment & Supplies - In order to start your cat cafe business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your cat cafe business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to open a successful cat cafe business: