Cafe Business Plan Template [Updated 2024]

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V.Competitive Analysis

You can download our Cafe business plan template (including a full, customizable financial model) to your computer here.

Direct & Indirect Competitors

The following restaurants are located within a 2 mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Joe’s Cafe

Joe’s Cafe is described by local press reviews as “a working man’s Cafe” and has been in business for 32 years. Joe’s offers basic options for coffee and drinks, as well as sandwich options.

Joe’s offers lunch which encourages those on a meal break or taking a meal for the day at work, but has limited beverage options. Joe’s is also located on the outskirts of town and caters primarily to commuters who enter the town for work. It is not characterized as a sit-down establishment, with a focus on to-go service from the counter.

Old Time Organic Café

Old Time Organic Café has been in business for 5 years. Old Time offers a variety of baked goods, organic teas and coffees, and sandwiches served to-go.

While Old Time Organics’ food is entirely organic, they have a very limited selection of items. The location only has four sit down tables and is thus targeting to-go customers that are either stopping for a quick breakfast or picking up baked goods and coffee for work.


Starbucks opened a location in the shopping district of [Company location] one year ago. Starbucks has been successful, especially with visitors from out-of-town, but is also victim of a backlash. There was a high level of controversy when it moved to town, with a large and vocal group of townspeople condemning it moving into town.

[Company Name] has several advantages over Starbucks including:

  • Starbucks does not offer as extensive a rotating menu of flavored coffees
  • Starbucks’ specialty coffees will not be as high quality as [Company Name]’s house blends
  • Starbucks is avoided by a growing number of townspeople who hate the idea of chain establishments moving into their town.

We expect that Starbucks will continue to thrive based on its location and excitement about a recognizable chain among some townspeople and most visitors. However, we expect that more and more customers will frequent [Company Name] based on the high-quality ingredients we use,product selection, and the fact that we are independently owned and operated.

Competitive Pricing

Type of foodJoe'sOld TimeFreddy's
Coffee / Tea$2.75 - $5.75$2.95 - $4.50$2 ? $5.50
Breakfast$5 - $12$6.95 - $12.95$8.95 - $16.95
Lunch$9 - $18$7.95 - $12.95$12.95 - $15.95
Pastries$2 - $4$1.75 - $2.50N/A
Cakes / Bakery$2.75 - $7 / slice/pieceN/AN/A

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • High Quality Ingredients: [Company Name] will work with the best local suppliers for its coffees, teas, and pastries, and take special care to create and market test its own house blends which will be appreciated by gourmet coffee drinkers.
  • Management: Our management team has years of business and marketing experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
  • Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders, newspapers and other influences, including the local leaders who fought the Starbucks opening two years ago. As such, it will be relatively easy for us to build branding and awareness of our restaurant.
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