Coffee Roaster Business Plan
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Below is a template to help you create each section of your Coffee Roaster business plan.
Executive Summary
Business Overview
Cosmopolitan Coffee is a premium coffee house that serves the finest organic coffee sourced from sustainable growers around the world. Our name, Cosmopolitan Coffee, represents our global search for coffee beans that not only satisfy every coffee aficionado, but also allow us to serve our world by being mindful in our sourcing of those coffee beans.
From sweet and smooth-bodied Brazilian coffee beans to the fruity, berry notes of African coffee beans, we select and roast only those beans that will offer the highest degree of rich coffee results. Our coffee roasters produce small batches of freshly-roasted coffee beans on a regular basis and we produce holiday coffee flavors during special seasons of the year.
We will primarily sell our coffee blends through our website or wholesale retailers (i.e. grocery stores). However, we will also operate a small café where we will sell several coffee drinks so customers can try out our premium blends before buying our beans in bulk.
Cosmopolitan Coffee is led by José Fernandes who immigrated to America as a teen. Throughout his whole life, he has had a passion to create the perfect coffee, a passion that was started and fueled by family tradition. He moved to America several decades ago, bringing with him the coffee bean roasting methods created by his grandfather in Brazil. Now he is finally starting his own business where he can share his family recipes and his love for premium coffee.
Product Offering
The following freshly-roasted coffees are served at Cosmopolitan Coffee:
- Light, floral coffee flavors – African or Costa Rican coffee beans
- Medium, nutty coffee flavors – South American coffee beans
- Dark, fragrant and rich coffee flavors – Vietnamese coffee beans
Holiday/seasonal coffees include:
- Light, cinnamon coffee notes – South African coffee beans
- Medium, chocolate coffee notes – Papua New Guinea coffee beans
- Dark, spicy coffee notes – Southeast Asian coffee beans
We will sell these blends on our website, in our café, and in local grocery stores. We will also operate a café that sells several coffee drinks that use our blends and recipes including:
- Hot coffee
- Iced coffee
- Cold brew
- Lattes
- Mochas
Customer Focus
Cosmopolitan Coffee primarily serves the residents living and working in the Chicago, Illinois area. However, we will also serve anyone who comes across our website after hearing about us or coming across our marketing efforts. Our café serves the immediate community within a two mile radius of our location.
Management Team
Cosmopolitan Coffee is led by José Fernandes who immigrated to America as a teen. Throughout his whole life, he has had a passion to create the perfect coffee, a passion that was started and fueled by family tradition. He moved to America several decades ago, bringing with him the coffee bean roasting methods created by his grandfather in Brazil. Now he is finally starting his own business where he can share his family recipes and his love for premium coffee.
José began working in a Chicago coffee roasting company ten years ago, where he acquired operations, marketing and management skills during the years of his employment.
José also graduated from North Central College, where he majored in culinary services.
Success Factors
Cosmopolitan Coffee will be able to achieve success by offering the following competitive advantages:
- Ingredients and menu: Our coffee beans are freshly-roasted for optimal flavor, resulting in premium coffees. Traditional coffee flavors are always on the menu, including light, medium and dark coffees. In addition, unique holiday flavors, such as spicy, chocolate, or fruity coffee bean flavors are offered as seasonal specials. No other coffee roaster company offers the wide variety and flavors as does our company.
- Management: The unique family coffee-roasting heritage of José Fernandes guarantees that each batch of coffee beans are roasted to perfection. José is also highly-experienced in the operations and management of a coffee roasting company and brings a warm and welcoming atmosphere to the neighborhood.
- Certified organic and sustainable: Only certified organic coffee beans are roasted at Cosmopolitan Coffee. All coffee beans are grown on sustainable farms to avoid damaging the crops or harming the farmland on which the beans are grown. No direct competitor offers organic or sustainable products.
- Location: Our location is perfectly suited to neighborhood residents who walk or drive to our coffee house. Additionally, professionals and executives who work nearby can easily locate our company. Drivers who commute can also find our location with ease, as we are located directly off the speedway. Each of the customer segments create advantageous opportunities for strong company growth within the next three to five years.
- Relationships: José welcomes the community by using our location as a gathering place for customers, friends and families to relax, converse and enjoy one another’s company.
Download the Coffee Roaster business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Cosmopolitan Coffee is currently seeking $500,000 to launch. The funding will be dedicated for overhead, build out and design, working capital, marketing expenses, and inventory. The breakout of the funding is below:
- Café/Roastery Build Out: $200,000
- Marketing and Advertising: $50,000
- Inventory and Supplies: $50,000
- Three Months Of Overhead Expenses (Rent, Salaries, Utilities): $100,000
- Working Capital: $100,000
The following graph outlines the pro forma financial projections for Cosmopolitan Coffee.
Company Overview
Who is Cosmopolitan Coffee?
Cosmopolitan Coffee is a premium coffee house that serves the finest organic coffee sourced from sustainable growers around the world. Our name, Cosmopolitan Coffee, represents our global search for coffee beans that not only satisfy every coffee aficionado, but also allow us to serve our world by being mindful in our sourcing of those coffee beans.
From sweet and smooth-bodied Brazilian coffee beans to the fruity, berry notes of African coffee beans, we select and roast only those beans that will offer the highest degree of rich coffee results. Our coffee roasters produce small batches of freshly-roasted coffee beans on a regular basis and we produce holiday coffee flavors during special seasons of the year.
We will primarily sell our coffee blends through our website or wholesale retailers (i.e. grocery stores). However, we will also operate a small café where we will sell several coffee drinks so customers can try out our premium blends before buying our beans in bulk.
Cosmopolitan Coffee is led by José Fernandes who immigrated to America as a teen. Throughout his whole life, he has had a passion to create the perfect coffee, a passion that was started and fueled by family tradition. He moved to America several decades ago, bringing with him the coffee bean roasting methods created by his grandfather in Brazil. Now he is finally starting his own business where he can share his family recipes and his love for premium coffee.
Cosmopolitan Coffee History
Cosmopolitan Coffee is led by José Fernandes, who immigrated to America as a teen, bringing with him the coffee bean roasting methods created by his grandfather in Brazil. José learned how to roast beans to the perfect point of flavor perfection. After immigrating, he worked in a coffee roasting company, where he learned how to manage, market and successfully operate a coffee roasting business before he started Cosmopolitan Coffee.
José incorporated Cosmopolitan Coffee as an S-Corporation on May 1st, 2023. The company is currently being run out of José’s home office but will move to a commercial location once the lease has been finalized.
Since incorporation, Cosmopolitan Coffee has achieved the following milestones:
- Found a location for the roastery and signed a letter of intent to lease it.
- Developed the company’s branding image, social media, and website.
- Began recruiting key staff.
Cosmopolitan Coffee Services
The following freshly-roasted coffees are served at Cosmopolitan Coffee:
- Light, floral coffee flavors – African or Costa Rican coffee beans
- Medium, nutty coffee flavors – South American coffee beans
- Dark, fragrant and rich coffee flavors – Vietnamese coffee beans
Holiday/seasonal coffees include:
- Light, cinnamon coffee notes – South African coffee beans
- Medium, chocolate coffee notes – Papua New Guinea coffee beans
- Dark, spicy coffee notes – Southeast Asian coffee beans
We will sell these blends on our website, in our café, and in local grocery stores. We will also operate a café that sells several coffee drinks that use our blends and recipes including:
- Hot coffee
- Iced coffee
- Cold brew
- Lattes
- Mochas
Industry Analysis
The coffee roaster industry has been rapidly growing due to increasing consumer demand for fresh and fully flavorful coffee. Consumers crave more than packaged coffee beans, packaged ground coffee, or individual coffee pods; they are seeking coffee that is the savory result of freshly-roasted coffee beans. Coffee made from freshly-roasted coffee beans carries a distinctive aroma, smooth and full-bodied flavor, and, surprisingly, offers nutritional value, as well. Antioxidants and nutritional compounds within the beans are carried into coffee, adding healthful benefits that contribute to the increasing consumer demand for coffee made from freshly-roasted coffee beans.
According to Grand View Research, the market trends for coffee roasting companies is predicted to grow at a strong CAGR rate of 6.3% from now until 2030. Freshly roasted coffee beans, when brewed soon after roasting, produce premium coffees that are especially appealing to those consumers who have a discretionary income level. The higher price of premium coffee has led to a new demographic of coffee consumers: those who don’t view price as the primary factor of their purchases, but view flavor as the primary driver for coffee selection. As prices rise in the future, the premium coffee prices will maintain their hold on coffee aficionados who insist on their daily coffee pleasure.
As consumers look for organic foods in the next five years, certified organic coffee will be sought and the purchase of organic coffees is expected to continue to grow. Consumers will also continue to seek coffee beans that have been hand-picked in sustainable coffee farms to ensure the land will be safe from overuse or damage as the coffee beans are harvested.
Download the Coffee Roaster business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Cosmopolitan Coffee primarily serves the residents living and working in the Chicago, Illinois area. However, we will also serve anyone who comes across our website after hearing about us or coming across our marketing efforts. Our café serves the immediate community within a two mile radius of our location.
The demographics of the area are as follows:
| 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
Cosmopolitan Coffee will primarily target the following customer profile:
- Pedestrians
- Commuters
- Coffee aficionados
Competitive Analysis
Direct and Indirect Competitors
Cosmopolitan Coffee will face competition from other companies with similar business profiles. A description of each competitor company is below.
Whole Bean Roasting Company
Whole Bean Roasting Company is a direct competitor, however it is seven miles away from our location. The coffee roasting company has only one coffee bean roaster and serves mild to dark freshly-roasted coffees. The company has no stated emphasis on serving certified organic coffee or using coffee beans from sustainable farm sources. Whole Bean Roasting Company sells breakfast and lunch items in addition to coffee, such as breakfast rolls, donuts, muffins, sandwiches and wraps.
Go Coffee Go
As part of a family-owned, city-wide chain of ten coffee shops, Go Coffee Go is located three miles from Cosmopolitan Coffee. The coffee shop offers no indoor seating, with a focus on serving walk-up customers only. Go Coffee Go sells blended brands of coffee at low prices for light, medium and dark coffees. Coffee is sold in medium, large and extra-large coffee cups with plastic coffee cup lids. Although this coffee outlet is nearby, the competitor sells generic coffee bean blends that do not compare to the coffee flavors of our company. There is no emphasis on organic coffee or sustainable growing methods.
Le Entourage Bistro
This small, French-themed restaurant serves breakfast, lunch and dinner and is located four miles from Cosmopolitan Coffee. An extensive menu features French and American foods in a romantic atmosphere. Premium coffees and espresso drinks are offered on the menu; however, no coffee beans are roasted on-site. Prices for coffees and espresso drinks are priced at higher levels and served in china cups or espresso shot glasses. Although this indirect competitor serves primarily as a restaurant, customers are within the demographics of Cosmopolitan Coffee.
Download the Coffee Roaster business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Cosmopolitan Coffee offers several advantages over its competition. Those advantages are:
- Ingredients and menu: Our coffee beans are freshly-roasted for optimal flavor, resulting in premium coffees. Traditional coffee flavors are always on the menu, including light, medium and dark coffees. In addition, unique holiday flavors, such as spicy, chocolate, or fruity coffee bean flavors are offered as seasonal specials. No other coffee roaster company offers the wide variety and flavors as does our company.
- Management: The unique family coffee-roasting heritage of José Fernandes guarantees that each batch of coffee beans are roasted to perfection. José is also highly-experienced in the operations and management of a coffee roasting company and brings a warm and welcoming atmosphere to the neighborhood.
- Certified organic and sustainable: Only certified organic coffee beans are roasted at Cosmopolitan Coffee. All coffee beans are grown on sustainable farms to avoid damaging the crops or harming the farmland on which the beans are grown. No direct competitor offers organic or sustainable products.
- Location: Our location is perfectly suited to neighborhood residents who walk or drive to our coffee house. Additionally, professionals and executives who work nearby can easily locate our company. Drivers who commute can also find our location with ease, as we are located directly off the speedway. Each of the customer segments create advantageous opportunities for strong company growth within the next three to five years.
- Relationships: José welcomes the community by using our location as a gathering place for customers, friends and families to relax, converse and enjoy one another’s company.
Marketing Plan
Brand & Value Proposition
Cosmopolitan Coffee will offer the unique value proposition to its clientele:
- Offering premium coffees made from coffee beans freshly roasted in-house.
- Located in an optimal community for residents, commuters and workers.
- Offering certified organic coffee beans harvested on sustainable farms.
Promotions Strategy
The promotions strategy for Cosmopolitan Coffee are as follows:
Social Media
José Fernandes will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Website
Cosmopolitan Coffee will create a website that includes a splash page, directing customers to interactive pages. One page will demonstrate the process of coffee bean roasting, and one will contain a video from José discussing his background and family history. Seasonal coffee flavors and specials will also be introduced.
Partnerships with Local Businesses
Cosmopolitan Coffee will align with businesses in the area to introduce the coffee experience at our company. This marketing strategy will include free coffee tastings for employees during breaks, “Coffee Talks” by José, and free-coffee vouchers for employees who visit our company for the first time.
Pre-Opening Events
During the month prior to our launch, names of commuters will be collected for a drawing to be held on our opening day. Seven winning names will be drawn by José to receive free coffee at Cosmopolitan Coffee for one full year.
Pricing
Cosmopolitan Coffee’s pricing will be appropriate for the high-quality coffee and level of service associated with a premium coffee bean roasting experience. Customers will feel they have received great value and a superior product.
Operations Plan
The following will be the operations plan for Cosmopolitan Coffee.
Operation Functions:
- José Fernandes will be the Owner of Cosmopolitan Coffee. He will oversee the general operations of the roastery and café and help roast the premium blends until he has a full team of baristas and roasters on staff.
- Max Smith will be the Café Manager and will focus on training staff and serving customers.
- José will hire an administrative team to help with the administrative, accounting, and marketing aspects of the business.
- José will also hire several baristas and roasters to make premium coffee for our customers.
Download the Coffee Roaster business plan template (including a customizable financial model) to your computer here <–
Milestones:
Cosmopolitan Coffee aims to achieve the following goals in the next six months.
- 6/1/202X – Finalize Lease Agreement
- 7/1/202X – Design and Build Out Underway
- 8/1/202X – Design and Build Out Completed
- 9/1/202X – Hire and Train Staff
- 10/1/202X – Grand Opening
- 11/1/202X – Reach break-even
Management Team
Cosmopolitan Coffee is led by José Fernandes who immigrated to America as a teen. Throughout his whole life, he has had a passion to create the perfect coffee, a passion that was started and fueled by family tradition. He moved to America several decades ago, bringing with him the coffee bean roasting methods created by his grandfather in Brazil. Now he is finally starting his own business where he can share his family recipes and his love for premium coffee.
José began working in a Chicago coffee roasting company ten years ago, where he acquired operations, marketing and management skills during the years of his employment.
José also graduated from North Central College, where he majored in culinary services.
Financial Plan
Key Revenue & Costs
The key revenues for Cosmopolitan Coffee will come from the sales of our premium blends (through our website, café, and partner grocery stores) and coffee drinks in our café.
The major costs include labor expenses, rent, marketing expenses, and the cost of inventory.
Funding Requirements and Use of Funds
Cosmopolitan Coffee is currently seeking $500,000 to launch. The funding will be dedicated for overhead, build out and design, working capital, marketing expenses, and inventory. The breakout of the funding is below:
- Café/Roastery Build Out: $200,000
- Marketing and Advertising: $50,000
- Inventory and Supplies: $50,000
- Three Months Of Overhead Expenses (Rent, Salaries, Utilities): $100,000
- Working Capital: $100,000
Download the Coffee Roaster business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.
- Number of Customers Per Day: 50
- Average café Menu Item Cost: $5.00
- Average Order per Customer: $10.00
- Average Coffee Bean Order per Customer: $25.00
- Annual Lease: $60,000
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 |
Coffee Roaster Business Plan FAQs
What Is a Coffee Roaster Business Plan?
A coffee roaster business plan is a plan to start and/or grow your coffee roaster business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
What are the Main Types of Coffee Roaster Businesses?
There are a number of different kinds of coffee roaster businesses, some examples include: Retail Coffee Roastery and Wholesale Coffee Roastery.
How Do You Get Funding for Your Coffee Roaster Business Plan?
Coffee Roaster 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 Coffee Roaster Business?
Starting a coffee roaster 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 Coffee Roaster Business Plan - The first step in starting a business is to create a detailed coffee roaster 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 coffee roaster 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 coffee roaster business is in compliance with local laws.
3. Register Your Coffee Roaster Business - Once you have chosen a legal structure, the next step is to register your coffee roaster 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 coffee roaster 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 Coffee Roaster Equipment & Supplies - In order to start your coffee roaster 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 coffee roaster 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.