Cat Cafe Business Plan Template
If you want to start a cat cafe business or expand your current cat cafe business, you need a business plan.
The following Cat Cafe business plan template gives you the key elements to include in a winning Cat Cafe business plan.
Cat Cafe Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new cat café in [location] dedicated to creating a feline-friendly atmosphere and matching 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 patrons 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.
Products Served
The main service that [Company Name] will provide is connecting local patrons with adoptable cats. To enjoy a visit at our café, patrons 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 patrons enjoy their time with the cats, they will be offered a menu full of coffee drinks, teas, and food items to enjoy. Some example offerings on our initial menu include:
- Coffee
- Black tea
- Green tea
- Lattes
- Mochas
- Cappuccinos
- Frozen coffee drinks
Customer Focus
[Company Name] will primarily serve the residents who live within a ten-mile radius of our café. The demographics of these customers are as follows:
- 47,923 residents
- Median income of $62,500
- 36.4% married
- 62% cat lovers
- 28.2% with children under 18
- 31.4% without any pets
- Median age: 34 years
Management Team
[Company Name] is led by [Founder’s Name], who is a cat lover and owner herself. For [X] 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 to continue helping her feline friends. She hopes that creating a comfortable environment for people to meet the cats will inspire more residents to adopt them.
[Founder’s Name] 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. Therefore her combined love and knowledge of cats and her career in cafés give her the perfect experience and skills to run a cat café.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is no other café dedicated to matching residents with adoptable cats. The only other cat café in [location] contains cats that are owned by the café owner. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when it launches.
- [Location] is filled with cat lovers who are eager to get a new pet.
- The management team has a track record of success in the café business and has volunteered at animal shelters for years.
- The cat café business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $420,000 to launch. Specifically, these funds will be used as follows:
- Café design/build: $200,000
- Equipment: $50,000
- Supplies needed to care for the cats: $50,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new cat café in [location] dedicated to finding homes for all of [location]’s homeless and shelter cats. For a small reservation fee, residents can reserve a one-hour block of time to enjoy our café and interact with adoptable cats. While enjoying the adorable felines and friendly atmosphere, residents can purchase coffee, coffee drinks, tea, and food items.
There are thousands of strays and shelter cats all around [location]. [Company Name]’s mission is to reduce this number by providing a fun and inviting atmosphere that will encourage connections between the cats and our patrons. We hope by giving residents time to get to know these cats, they will realize that these wonderful felines will fit right into their family and home.
[Company Name] is led by [Founder’s Name] who has experience volunteering for animal shelters and managing a café. She has all the knowledge and experience to understand the operations and management sides of working a café and knows all the aspects involved in getting shelter cats adopted. She also has connections with local animal shelters to supply the cats. Each cat will call the café their home until they are adopted by a loving family.
[Company Name]’s History
While working for an animal shelter, [Founder’s Name] 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. [Founder’s Name] decided that a cat café would be the perfect business to connect residents with local cats that may not have been discovered elsewhere.
[Founder’s Name] incorporated [Company Name] on [date of incorporation] and found a potential retail location soon after. The business is currently being run from [Founder’s Name]’s home, but once the lease on [Company Name]’s 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 located at [website]
- Created the initial coffee and tea menu
- Determined equipment and inventory requirements
- Began recruiting key employees with experience in the butcher industry
[Company Name]’s Products/Services
The main service that [Company Name] will provide is by connecting local patrons with adoptable cats. To enjoy a visit at our café, patrons must make a reservation online and pay a small fee.
The cats that habituate the café will rotate throughout time. 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 patrons enjoy their time with the cats, they will be offered a menu full of coffee drinks, teas, and food items to enjoy. Some example offerings on our initial menu include:
- Coffee
- Black tea
- Green tea
- Lattes
- Mochas
- Cappuccinos
- Frozen coffee drinks
III. Industry Analysis
Though a cat café seems like the perfect business idea, the first cat café only opened up in 1998 in Taiwan. However, 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 drastically 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.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents of [location] and its surrounding areas.
The area residents and workers we serve 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.
Customer Segmentation
We will primarily target the following three customer segments:
- Cat lovers: Anyone who loves cats will be welcome in our café. We will market ourselves to all local cat lovers so that they can play with and adopt our adorable cats.
- Millennials: Cats are more popular with millennials than with any other generation. About 32% of cat owners are millennials and about 55% of millennial cat owners view their cats as part of their family. Therefore, they are the most likely generation to be interested in our café as well as care deeply for the cats they adopt.
- Families: Families are more likely to adopt pets than individuals, as they are more likely to have the finances and space to take on a pet. Therefore, we will market to families looking to find a new addition.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments are located within a ten-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Purrfect Coffee
Purrfect Coffee is the only other cat café located in [location]. 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. [Company Name] 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 patrons 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 patrons. 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 [Company Name].
Starbucks
As far as coffee goes, Starbucks is our biggest competitor for customers. Starbucks has cafés in multiple locations throughout downtown [location]. Starbucks has been popular nationwide for decades and offers a wide selection of classic drinks.
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.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Adoptable cats: Our café is enhanced by the presence of adorable and adoptable cats. They create a unique atmosphere and bring additional joy to everyone who comes to our café.
- Location: [Company Name] 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 in both animal shelters and café businesses.
VI. Marketing Plan
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
[Company Name] seeks to position itself as the best place in [location] to meet adoptable cats. Clients can expect to receive high quality drinks and food, enjoy a comfortable environment, and interact with some of the cutest and friendliest cats they have ever met.
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering high-quality beverage and food items including coffee, teas, iced drinks, pastries, and more
- 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
[Company Name] expects its target market to be residents living within a ten-mile radius of its location. [Company Name]’s promotion strategy to reach these potential customers includes:
Website/SEO
[Company Name] 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
[Founder’s Name] 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.
AdvertisingPre-Opening Events
Before opening the café, [Company Name] will organize pre-opening events designed for prospective customers and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], as well as some of the cats the residents can expect to meet.
Partnerships
[Company Name] 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.
Pricing Strategy
[Company Name] will price its drink and food moderately and keep prices competitive with other local cafés. The registration fee will also be moderate so that no resident or family is priced out from meeting cats they want to adopt.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions including the following:
Administrative Functions
- Bookkeeping
- Marketing
- General administrative functions
- Sourcing and storing ingredients
- Hiring and training staff
- Working with local shelters, vets, and other partners
- Scheduling and confirming reservations
Barista/Retail Functions
- Food preparation
- Coffee brewing and blending
- Order taking and fulfillment
- Customer service
- Maintenance functions
Cat Care Functions
- Feeding and caring for cats
- Taking cats to vet or shelters for wellness checks and health-related concerns
- Cleaning cat cages and play areas
- Process adoption applications
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who is a cat lover and owner herself. For [X] years, she has volunteered at a local cat shelter and 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. When she heard about cat cafés from a friend, she decided that would be the perfect business to continue helping her feline friends. She hopes that creating a comfortable environment for people to meet the cats will inspire more residents to adopt them.
[Founder’s Name] 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. Therefore her combined love and knowledge of cats and her career in cafés give her the perfect experience and skills to run a cat café.
Hiring Plan
[Founder] will serve as the Café Manager. In order to launch the café, we need to hire the following personnel:
- Baristas/Cashiers (3 to start)
- Administrative Assistant (1 to start)
- Assistant Managers (2 to start)
- Cat Care Staff (2 to start)
Our local shelter partners will also have a representative on-site to start the adoption application process for anyone interested in adopting one of the cats.
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the sale of drinks and food to its customers as well as the reservation fees.
The major costs for the company will be food and drink supply costs, salaries of the staff, supplies needed to care for the cats, and rent for a small but prime location. In the initial years, the company’s marketing spending will be high as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $420,000 to launch. The capital will be used for funding capital expenditures, labor, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Café design/build: $200,000
- Equipment: $50,000
- Supplies needed to care for the cats: $50,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| FY 1 | 100 |
| FY 2 | 150 |
| FY 3 | 180 |
| FY 4 | 220 |
| FY 5 | 300 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
