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Writing a business plan?

Need help writing a business plan for your cafe? You’re at the right place!

We have helped thousands of entrepreneurs successfully create their business plans with ready-to-use templates and step-by-step guidance.

To help you get started, here’s a sample cafe business plan to use as inspiration. You may use it to outline your business concept, identify target customers, outlay your marketing plan, and project financials.

Sounds good? Let’s head straight to Sip and Savor’s cafe business plan.

1. Executive Summary

Business Name: Sip & Savor
Business Location: New York City, NY, USA

Business Description

Sip & Savor is a cozy cafe in New York City. We chose this spot to serve both locals and tourists looking for a peaceful break from the city’s chaos.

Our cafe has a serene ambiance, a simple design, and a touch of greenery to create a welcoming atmosphere for people to relax, work, read, or simply enjoy great coffee.

Mission Statement

At Sip & Savor, we’re all about providing a peaceful escape in New York City. We want to offer fantastic coffee, delicious food, and a welcoming place to connect. Our mission is to create a peaceful environment for everyone who walks through our doors.


Our vision for Sip & Savor is to be a one-of-a-kind cafe, a place where people can find tranquility, inspiration, and real connections. We aim to be a beloved local spot while expanding to other vibrant neighborhoods across the city.

Market Research

Industry Analysis

The cafes in New York City are thriving, with people always searching for unique coffee experiences. Coffee consumption in the morning is a ritual for many Americans, so this industry is thriving.

Competitive Analysis

We have studied our local competitors, and we know that we stand out by focusing on quality and maintaining a serene ambiance.

Customer Analysis

Our target audience includes professionals, students, artists, freelancers, and tourists searching for a nice cozy place to have coffee and snacks alone or with their friends.

Cafe Menu and Other Offerings

Sip & Savor serves specialty coffee and teas, including pour-over coffee, signature espresso drinks, and certain loose-leaf teas. Apart from that, we also offer pastries, sandwiches, and salads.

Marketing and Sales Strategy

We’ll use social media, local partnerships, and community events for the brand awareness of Sip & Savor. Besides that, our loyalty programs and events will make repeat customers feel like a family.

Unique Selling Proposition

Sip & Savor is located in a high-foot area of New York City, with seating for 40 guests.

We’re investing in high-quality coffee equipment and partnering with local suppliers. Also, our team includes skilled baristas, kitchen staff, and friendly front-of-house staff.

Financial Plan

Our estimate for initial startup costs is $200,000, with revenue projections showing steady growth over the first three years.

We are expecting to break even within 6 months of operations. To get things going, we are seeking $300,000 in funding to ensure that our startup costs and working capital for the first year are covered.

We are excited to start our Sip & Savor cafe and invite potential investors to join us in this journey.

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2. Business Description

Business Concept

Imagine a place where the fragrance of freshly brewed coffee mixes with soft live music. At Sip & Savor, we are not just serving coffee, we are creating an experience for all our guests.

Our menu is a combination of both global and local tastes. From rich signature coffees to delicate artisan pastries, each dish on the menu is thoughtfully chosen to make our guests feel comfortable.

Legal Structure

Sip & Savor is legally organized as a Limited Liability Company (LLC). What does that mean for you? It means we’re committed to operating responsibly and protecting both our customers and our team.

We have all the necessary permits and licenses to ensure a smooth and lawful operation.

Location Analysis

Why did we choose New York City? Well, it’s because we believe that everyone, from busy professionals to curious tourists, deserves a peaceful oasis.

Our cafe is perfectly placed in the middle of the city, where the vibrant streets meet the quiet corners. We’re here to provide refreshments to all who pass by.


Sip & Savor is the idea of Jack Brown, a passionate coffee enthusiast with a dream of creating a space where people can relax with classic teas, coffees, and refreshing snacks.

Jack is a gifted barista with 12 years of experience to ensure that Sip & Savor becomes your favorite spot in the city.


Step into Sip & Savor, and you’ll find a peaceful spot with soothing colors, comfy chairs, and a touch of greenery. It’s your place to relax, work, catch up with friends, or simply unwind with a cup of exceptional coffee.

Our Offerings

We’re not just about the ambiance; we’re passionate about coffee and good food too!

Our menu features carefully crafted coffee and tea drinks, along with delicious pastries, sandwiches, and salads made with local ingredients. Every bite and sip is designed to bring a smile to your face.

Why Sip & Savor?

Our commitment to serenity, quality, and genuine connections sets us apart. We don’t just serve coffee; we create moments. Whether you’re starting your day, taking a break, or looking for inspiration, Sip & Savor is where it all begins.

Future Goals

It is just a start for Sip & Savor because we have multiple dreams and goals. In the coming years, we aim to:

  • Expand our presence in other high-foot neighborhoods across the city.
  • Continue sourcing the finest coffee beans and local ingredients.
  • Implement sustainable practices to minimize environmental footprint.

At Sip & Savor, we’re not just serving coffee; we’re creating an experience that you’ll want to revisit time and again.

3. Market Analysis

Industry Overview

The cafe industry in New York City is vibrant and ever-evolving. It’s a city known for its coffee culture and a population that enjoys the coffee experience.

With a strong coffee culture, the cafe industry is always in demand and thriving.

Trends and Opportunities

Rising Coffee Culture

Coffee is no longer just a beverage, it has become a culture now. New Yorkers love specialty coffee and are eager to explore new flavors and brewing methods.

Health-conscious Consumers

The demand for healthier and sustainable food & beverages is increasing, not only in New York, but the whole United States. So, customers are seeking cafes that offer organic and locally sourced ingredients.

Remote Work Culture

After the pandemic, remote work has become the new norm. So with the rise of professionals working from home, the demand is there for the cafes that allow work. This way Sip & Savor fits the demand perfectly and has become an ideal setting for remote workers.

Community and Connection

Customers are not only looking for coffee all the time, sometimes they want to be a part of a community where they can belong. Thus, through various events and workshops, we will build a community.

Target Market

Our target market includes:

  • Professionals: Seeking a peaceful environment to work or unwind.
  • Students: Looking for a cozy study spot.
  • Tourists: Exploring the city and craving an authentic New York cafe experience.
  • Creatives: Finding inspiration in a serene atmosphere.
  • Locals: Building a sense of community in their neighborhood.

Market Potential

With the increasing trend of having a calm ambiance and connection to the community, Sip & Savor is positioned to capture a share of the market. New York presents ample opportunities for the growth and expansion of the cafe.


The cafe industry in New York City is growing, with a strong demand for quality coffee and welcoming spaces. Sip & Savor’s concept and commitment to quality make us more than capable enough to cater to the preferences of our target audience.

Competitive Analysis

Sip & Savor faces competition from a diverse range of cafes and coffee shops in New York City. However, our unique selling proposition (USP) sets us apart:

  • Sip & Savor is dedicated to creating a calm atmosphere, offering an escape from the urban hustle.
  • Our commitment to quality coffee, locally sourced ingredients, and a warm community vibe distinguishes us from competitors.
  • We prioritize customer engagement and exceptional service, ensuring that every visit is memorable.

4. Products And Services


At Sip & Savor, we take pride in curating a menu that elevates your coffee experience and satisfies your cravings.

Catering and Events

We offer catering services for events, meetings, and various gatherings providing beverages and other preferred snacks to the demanded location.

Sip & Savor hosts regular community events, including open mic nights, art exhibitions, workshops, and other events to bring like-minded people together.

Cozy Atmosphere

Our cafe provides a welcoming ambiance, ideal seating for remote work & meetings, and delicious beverages plus food.

We also provide free Wi-Fi to stay connected with everyone while you enjoy your time at Sip & Savor.

Sustainability and Responsibility

We are committed to eco-friendly practices, from sourcing ethically grown coffee beans to reducing waste through recycling and composting.

We also prioritize partnerships with local suppliers and artisans to support the community and promote sustainability.

Retail Coffee Beans and Merchandise

Take a piece of Sip & Savor home with you by purchasing our premium coffee beans or branded merchandise.

5. Sales And Marketing Strategies

Our marketing and sales strategy is built around creating awareness, creating a sense of community, and ensuring a steady flow of satisfied customers.

Online Presence

We maintain an informative and user-friendly website that shows the menu, events, and ambiance of the cafe.

Additionally, we maintain active profiles on social media platforms with regular posting featuring any special events and customer feedback.

Community Engagement

Sip & Savor hosts various events, workshops, and different open mic nights. We also offer loyalty programs to provide extra benefits to our regular customers with discounts and exclusive offers.

Sales Strategy

We promote our catering services for corporate meetings, events, and private gatherings. We also regularly introduce seasonal specials on a rotational basis to keep our menu fresh.

Our staff is trained to suggest complementary items to customers, such as pairing a pastry with a specialty coffee.

Our marketing and sales strategy is about building a loyal customer base and creating experiences.

6. Operations Plan

Facility and Equipment

Our café space spans approximately 900 square feet, providing seating for 40 guests.

We have invested in high-quality coffee equipment, including espresso machines, grinders, and brewing tools, to ensure consistency and excellence in our coffee offerings.

The kitchen is equipped with modern appliances for food preparation, adhering to strict hygiene and safety standards.

Supply Chain Management

We have established relationships with local suppliers for coffee beans, fresh ingredients, pastries, and other supplies. Regular communication ensures a steady flow of inventory.

Quality control measures are in place to guarantee the freshness and quality of our products.

Staffing & Training

Our staff consists of skilled baristas, kitchen personnel, and front-of-house staff who are trained to provide exceptional customer service.

Schedules are created to ensure adequate coverage during peak hours, and staff members are cross-trained to handle various tasks.

Food Preparation

Food preparation follows strict quality and safety standards, with an emphasis on using locally sourced and fresh ingredients.

We maintain a rotating seasonal menu to keep offerings fresh and exciting.

Operational Hours

Sip & Savor is open all 7 days from 11:00 A.M. to 11:00 P.M. Special events and extended hours may be offered for community gatherings or specific promotions.

Customer Experience

Customer satisfaction is our top priority. We strive to provide a welcoming atmosphere, prompt service, and a personal touch in every interaction.

Health and Safety

Strict adherence to local health and safety regulations and food handling guidelines is maintained.

Regular cleaning and sanitation routines are implemented, with a focus on maintaining a clean and hygienic environment for both customers and staff.

Technology Integration

Point-of-sale (POS) systems are used for efficient order processing and inventory management.

An online presence, including a website and social media, helps reach and engage customers and promote upcoming events and specials.

Sustainability Initiatives

We are committed to eco-friendly practices, including waste reduction, recycling, and energy-efficient equipment.

Sourcing locally and using sustainable materials for packaging are part of our commitment to minimizing our environmental footprint.

Sip & Savor’s operations plan is designed to provide customers with an exceptional experience while maintaining efficiency, quality, and sustainability.

7. Financial Plan

Estimating the daily number of seats and sales is one of the most important parts of finances. Here, we present the projections of Sip & Savor cafe.


Key assumptions

  • We anticipate a steady sales growth, from $380,000 in Year 1 to $460,000 by Year 3.
  • Effective management of Cost of Goods Sold (COGS) and operating expenses.
  • There is continued demand for quality coffee and a serene environment in New York City.
  • Effective marketing and community events to maintain a strong customer base.


Use of funds

It is estimated that Sip and Savor will incur an initial startup cost of $200,000 for remodeling, equipment purchases, stocking up on inventory, and other expenses. In the initial stage, there will be other operational expenses like rent, utilities, employee salaries, and marketing.

Sources of Funds

The founder has committed to invest $140,000 in the business. This investment is crucial to cover many startup costs, including space leasing, renovation, equipment purchase, and inventory stocking.

We have sourced a bank loan of $30,000 to supplement the owner’s investment. It will help the business sustain itself by providing a buffer for operational costs in the early months of business.


Projected Profit and Loss (P&L) Statement

Year 1 Year 2 Year 3
Sales Revenue $380,000 $420,000 $460,000
Cost of Goods Sold (COGS) ($65,000) ($72,000) ($78,000)
Gross Profit $315,000 $348,000 $382,000
Operating Expenses
Fixed Expenses
Rent ($75,000) ($75,000) ($75,000)
Utilities ($12,000) ($13,000) ($13,500)
Insurance ($5,000) ($5,500) ($6,000)
Marketing and Advertising ($15,000) ($16,500) ($18,000)
Equipment Maintenance ($7,000) ($7,500) ($8,000)
Licenses and Permits ($5,000) ($5,000) ($5,000)
Depreciation ($10,000) ($10,000) ($10,000)
Total Fixed Expenses ($129,000) ($133,500) ($135,500)
Variable Expenses
Employee Salaries and Benefits ($110,000) ($121,000) ($132,100)
Inventory and Supplies ($30,000) ($33,000) ($36,300)
Repairs and Maintenance ($3,000) ($3,300) ($3,600)
Contingency Fund ($5,000) ($5,500) ($6,000)
Total Variable Expenses ($148,000) ($162,800) ($177,000)
Net Profit Before Taxes $38,000 $51,700 $69,500
Taxes (Estimated Tax Liability) ($10,000) ($13,675) ($18,525)
Net Profit After Taxes $28,000 $38,025 $50,975

Projected Balance Sheet

Assets Year 1 Year 2 Year 3
Current Assets
Cash and Cash Equivalents $25,000 $30,000 $35,000
Inventory $10,000 $12,000 $15,000
Other Current Assets $4,000 $5,000 $6,000
Total Current Assets $39,000 $47,000 $56,000
Fixed Assets
Furniture and Fixtures $20,000 $25,000 $30,000
Equipment $35,000 $40,000 $45,000
Less: Accumulated Depreciation ($5,000) ($7,000) ($10,000)
Total Fixed Assets $50,000 $58,000 $65,000
Total Assets $89,000 $105,000 $121,000
Liabilities and Equity Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $5,000 $6,000 $7,000
Short-term Debt $8,000 $10,000 $8,000
Other Current Liabilities $3,000 $4,000 $5,000
Total Current Liabilities $16,000 $20,000 $20,000
Long-term Debt $30,000 $40,000 $35,000
Owner’s Equity (Initial Funding) $40,000 $50,000 $50,000
Retained Earnings $3,000 ($5,000) $16,000
Total Liabilities and Equity $89,000 $105,000 $121,000

Projected Cash Flow Statement

Description Year 1 Year 2 Year 3
Net Cash Flow from Operations
Net Profit $45,000 $60,000 $75,000
Depreciation & Amortization $5,000 $5,000 $5,000
Change in Accounts Receivable $2,000 $2,500 $3,000
Change in Inventory ($4,000) ($3,500) ($3,000)
Change in Accounts Payable $2,500 $3,000 $3,500
Change in Income Tax Payable $3,000 $2,500 $2,000
Change in Sales Tax Payable $1,000 $1,200 $1,400
Net Cash Flow from Operations $54,500 $66,200 $83,900
Investing & Financing
Assets Purchased or Sold ($10,000)
Net Cash from Investing ($10,000)
Investments Received $15,000
Change in Short-Term Debt $2,000 ($1,500) ($2,000)
Change in Long-Term Debt ($3,000) ($2,500) ($2,000)
Net Cash from Financing ($1,000) ($4,000) ($4,000)
Cash at the Beginning of the Period $0 $53,500 $115,700
Net Change in Cash $43,500 $58,700 $75,900
Cash at the End of Period $43,500 $112,200 $191,600

Download the Free Cafe Business Plan Template

Ready to write your cafe business plan, start to finish? Not sure where to begin or download this sample plan? Here you go. Download our free cafe business plan pdf, import data directly into the editor, and start preparing your business plan.

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About the Author


Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more


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