Business plan to open a cafe shop in 2024
This article will give everyone a business plan to open a cafe, how much capital is needed to open a cafe, and how to maintain business and develop a stronger cafe.
Opening a cafe is a popular business idea. Many people get into this profession by studying how to mix drinks for 4-7 months. Some people work for 1 year or 2 years to gain experience and then work. Open your own shop. Most coffee shops open and only operate for about 4 months before closing.
So before we research the plan for the coffee shop, you need to determine that this model is very competitive, participating in the coffee business is very easy and goes bankrupt quickly, the reasons are these problems. basically like this:
– Great competition narrows the market, thereby reducing the actual number of customers of each coffee shop
– Large investment capital makes people with little capital unable to compete in the “long-distance race horse” way. – Small business, without a clear plan leads to failure
– Simple thinking: Just open a shop and have a nice cafe name and beautiful space and you will have customers
The fourth reason is a very common problem, like Vietnamese people doing business for this reason. The thinking “If you open a shop, you will have customers” is only true when you have a monopoly on the market’s goods and customers are forced to use that product, but even in cases of product monopoly, there are still alternative products. That’s very good, for example, you have a coffee processing recipe and buy a brand from Japan to Vietnam to develop a store. There are many different beverage products in the country, there is no reason for customers to Customers must drink your exclusive coffee.
The law stipulates that sellers are not allowed to force buyers to make goods transactions and vice versa, purchases and sales are based on the voluntary nature of both parties. If people like to come to your coffee shop, we have no right to force them, so why think that “If you open a shop, there will be customers to buy”?
So before starting a business, you need to think scientifically that: Business will definitely fail if you do not have enough resources and a good strategy, and you can be confident that there are many shops on the market today. cafe business snatching.
Business plan for opening a cafe
- Coffee shop development plan
a. Revenue plan
Revenue comes from sales activities and other non-sales activities. Many coffee businesses set their own revenue levels without basing it on the current market situation, meaning the set goals are larger than their ability to realize them. This is also one of the reasons leading to business failure.
Revenue is estimated based on market size. If you run a cafe business in the countryside, you cannot set a target of 4,000,000 VND/day because that is revenue from a coffee shop in the City. Estimated revenue may increase over time and must be based on market assessment information to make a decision.
Setting revenue goals that are wrong with market potential will affect Marketing activities and especially cost a lot of investment in fixed assets and raw materials for coffee processing. Therefore, revenue cannot be determined based on emotions, preferences, desires, or ambitions, but must be based on the characteristics and current status of the market.
b. Purchase plan (not applicable to cafe franchises)
Based on estimated revenue and sales activities, establish a purchasing plan to serve the entire business process, so business goals must be very clear and feasible compared to reality.
To make a purchasing plan, you must clearly separate the ingredients and tools needed. If a cup of coffee sells for 50,000 VND, your task is to determine how many grams of pure coffee you will have to buy. , how many grams of sugar, how much milk, ice, what material is needed for a glass, how much money, what flavors are needed…
From these details, you can make a plan to calculate the amount of materials needed in a shift, 1 working day, 1 week, 1 month. The more clearly you will know the quantity of raw materials and goods you need to order from your partner.
In addition, you also have to determine the input import cycle. To do this, you must compile statistics on the number of cups of coffee sold in a certain period of time, and evaluate whether the business is effective or not. Increase the frequency of importing raw materials in a month. If you do a good job of data analysis, you will save a large amount of transportation costs.
c. Employee manager
You need to recruit a manager who is capable and has an effective way of managing the cafe to help you manage the business activities of the entire store. For baristas and other service staff, you should recruit People who already have some knowledge or experience about coffee, this helps you cut down on training time.
For an employee, you need a plan that includes: Recruitment, professional training, Arranging and using human resources after training appropriately, paying salaries, implementing remuneration policies… Do How to make sure employees working for you feel they receive more benefits than others
I work somewhere else.
d. Financial planning
The purpose of a financial plan is to know which spending items are most profitable and which capital is not profitable, through which you will cut costs for unnecessary work activities as well as investments. Invest more potential for important tasks.
Financial planning must be closely combined with Marketing activities. Although Marketing sounds big compared to a coffee shop, you definitely have to do marketing activities well. The issue of spending will be written in part 3, but now we move on to part two.
- Effective marketing strategy for opening a cafe business
a. Industry competition analysis
Pichael Porter’s Competitive Model points out the 5 biggest competitive factors in the industry, for cafes: Potential competitors, competitors doing business in the current neighborhood, Related food and drinks related to competition with Coffee such as: Milk tea, snacks, fruit smoothies…
Industry analysis is to know whether you can open a store in that place or not, how many competitors there are and who are really formidable competitors for you, these people are competitors that you cannot dislodge. they exit the market easily.
Therefore, the task of analysis is to know how many coffee shops there are in the business area, how much their investment capital is, where their coffee business services are different… Through this information we overcome our weaknesses and focus on developing more of our strengths
b. Sales promotion plan
The characteristic of a coffee shop is to do business based on store location. If the new business location only has 1-2 shops, it is not many and can share revenue/profit. But if the benefits are many, there will certainly be more competitors, which means we must act to attract more customers.
Therefore, promoting sales is definitely something that must be done. There are many ways to promote sales such as: Promotions, giving products/services to regular customers, giving gifts, reducing prices, giving away extra cups of coffee. for some customers who meet the requirements of a game organized by the store…
c. Promotion Plan for daily business activities
You can organize a contest that lasts for many months, of course the customer will receive a prize such as a phone, some movie tickets, or an appliance, for example. The contest helps connect customers and for couples in love, you may be the one who brings them closer together, they will most likely be your long-term customers in the future.
d. Create a new drink recipe
If you are knowledgeable or have participated in a drink mixing course, you should create a new drink recipe, especially one that has not yet appeared on the market. We keep this secret to attract more customers. more customers and they can only come to your shop to enjoy the taste of that drink. That will be the difference that helps you build your brand before we buy it.
- Estimated capital for the idea of setting up a coffee shop
a. Cost of renting space to open a shop
Premises that are evaluated for competitive advantage contribute partly to store development to win over competitors. When we rent space to open a coffee shop, you need to draw up a contract and the contract needs to show the following elements:
Address for renting premises, area, style and structure of space, cost of renting premises, payment method, time to pay rent, do not rent for too long because you may have If you misjudge the market potential in the area, after a period of business you may have to close the shop because of ineffective operations. In case you are sure that you have surveyed and decided that the market is very potential, you can rent the space for a term of about 3-4 years or longer.
In the inner city areas of Saigon, Hanoi, Da Nang, you can rent a store with an area of about 40m2-80m2 depending on how large or small you are.
Estimated cost to rent a space for a nice small cafe in a 50m2 city area: 10,000,000 VND – 20,000,000 VND depending on the location of the store in the center of the District or outside the District.
b. Coffee shop design and construction costs
For this issue, there are two separate stages: Hire someone to design the space, then hire a construction worker to install the space’s interior according to the design, or hire a company to do both design and construction.
Currently, the design and construction price on the market is about: 220,000 VND/m2 of space, for 50m2 the total cost is: 11,000,000 VND, and if you only rent the shop space, this cost is about: 130,000 VND/ m2.
When hiring a designer and constructor, you need to find out and ask your partner what type of construction materials, colors, and space layout to use that are suitable for your target customers. There are many people who want to run a popular cafe business, or plan to run a student cafe or toad cafe, and there are also people who want to invest in a high-end model for businessmen and office workers…
Some basic knowledge about how to decorate a small cafe
Coffee shop design includes interior and exterior design. For the outside, you need to learn about signs and wall materials, wall paint colors, patterns and art designs on the walls. For inside the shop, you use glass or painted walls, curtains, wall linings made of wood or other materials.
In addition, you also have to consider carpets, chandeliers, pendant lights, and decorative items in the space.
c. Expenses for Utensils and items used as fixed assets when doing coffee business
You need to prepare the following tools:
– Tables, chairs of all kinds (single table, double table, multi-person table), racks: Estimated cost about 40,000,000 VND
– Sound system for the store: Estimated cost is about 7,000,000 VND – Mixing table, dishwashing equipment: 10,000,000 VND
– Glasses, mugs, scrub maker (used as mouthwash, sipping drinks)…: Estimated cost is about 3,000,000 VND.
