Coffee Roaster Business Plan Template
If you want to start a coffee roaster business or expand your current coffee roasting business, you need a business plan.
The following Coffee Roaster business plan template gives you the key elements to include in a winning Coffee Roaster business plan.
Coffee Roaster Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a premium coffee house that serves the finest organic coffee sourced from sustainable growers around the world. Our name, [Company Name], 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.
Our dedication to serving delicious coffee is backed by our determination to source only certified organic coffee beans that are sustainably grown. In this way, we can satisfy our community of coffee lovers as we serve our world with commitment and care.
Products Served
The following freshly-roasted coffees are served at [Company’s Name]:
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
Customer Focus
[Company Name] serves the immediate community within a radius of 2 miles within our urban city. We also serve people who are working in the community and commuters coming into the city by car. The demographics of current and potential customers are as follows:
- 101,649 residents in the community
- 7,320 workers (who do not live in the community)
- 4,543 daily commuters by car
- Average income of $81,200
- 67% married
- 63% in professional or executive positions
- Median age: 41 years
Management Team
[Company Name] is led by [Founder’s Name] who immigrated to America as a teen, bringing with him the coffee bean roasting methods created by his grandfather in Brazil.
[Founder’s Name] began working in a Chicago coffee roasting company, where he acquired operations, marketing and management skills during the years of his employment.
[Founder’s Name] graduated from North Central College, where he majored in culinary services. [Founder’s Name] is a member of the International Association of Culinary Professionals.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is no other coffee roaster company in the community we serve
- We have two roasters, while competitors have only one
- The knowledge of the founder ensures coffee beans are expertly roasted
- The variety of coffee beans roasted are the premium flavors desired by coffee lovers
- The workers in the area have discretionary funds to purchase premium coffee
- Commuters will be served at an express coffee delivery via a drive-up window
- An app (to be developed) for [Company Name] will allow customers to choose a coffee flavor, select a pickup time, and prepay for coffee before arriving at the drive-up express.
Financial Highlights
[Company Name] is currently seeking $260,000 to launch new services and improve the customer experience. Specifically, these funds will be used as follows:
- Express coffee delivery window and service bay: $125,000
- Digital application: $50,000
- Marketing and advertising: $35,000
- Additional coffee roaster: $50,000
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 premium coffee house located at [insert location here] that serves the finest organic coffee sourced from sustainable growers around the world. Our name, [Company Name], 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.
Our dedication to serving delicious coffee is backed by our determination to source only certified organic coffee beans that are sustainably grown. In this way, we can satisfy our community of coffee lovers as we serve our world with commitment and care.
[Company Name]’s History
[Company Name] is led by [Founder’s Name], who immigrated to America as a teen, bringing with him the coffee bean roasting methods created by his grandfather in Brazil.
[Founder’s Name] 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 [Company Name].
[Founder’s Name] earned a bachelor’s degree in culinary services and also worked for 6 years at a coffee roaster company, where he learned the operations and management structure of the company. [Founder’s Name] is a member of the International Association of Culinary Professionals.
[Company Name]’s Products/Services
Below is the current list of offerings at [Company Name]:
- Brewed coffee in small, medium and large sizes
- Iced coffee in small, medium and large sizes
- Americano coffee in small, medium and large sizes
- Cold-pressed coffee in small, medium and large sizes
- Coffee latte in small, medium and large sizes
Premium coffee flavors:
- Light, floral coffee flavors – African and Costa Rican coffee beans
- Medium, nutty coffee flavors – South American coffee beans
- Dark, fragrant and rich coffee flavors – Vietnamese coffee beans
Holiday/seasonal coffee flavors include:
- Light blend, cinnamon coffee notes – South African coffee beans
- Medium blend, chocolate coffee notes – New Guinea coffee beans
- Dark blend, spicy coffee notes – Southeast Asian coffee beans
III. 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.
The market trends for coffee roasting companies are predicted to grow at a strong CAGR rate of 6.5% over the next five years. 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.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] currently serves the community as both a premium coffee destination and a community gathering space. Customers are primarily those with discretionary income who have a desire to increase their knowledge of freshly-brewed coffee beans and experience the flavors of coffee produced.
Additionally, most of our customers are deeply committed to organic food production, which dovetails with the certified organic coffee served at [Company Name]. The coffee beans are harvested through sustainable methods, so the farms are not harmed by the processes used, which is another reason our customers are loyal to our business.
The area we serve has several neighborhoods that are built to encourage walking to our location in the “village-like” community hub. Schools, churches and sports parks are also nearby in the family-friendly community. The “ease of walking” factor has been rated at 82% by independent surveys.
The professionals and executives in our area who gather at our location are typically searching for excellent coffee within a short framework of time. They also look for ease of the process in obtaining their coffee. Toward this end, we have developed a project plan to open an Express Delivery window for auto or walk-up service, where customers can pick up coffee that has been selected, ordered and paid for in advance.
Customer Segmentation
We target the following three customer segments:
- Community residents: Residents of the neighborhoods within a 2 to 3-mile radius.
Most are families with average-to-high income levels and they prefer premium coffee. - Professionals and executives: Over 7,000 potential customers work within a 1 to 2-mile radius. We are specifically targeting customers who seek premium coffee.
- Driving commuters and walk-up customers: We have a project plan to expand express coffee services for drive-by and walk-up service.
V. Competitive Analysis
Direct & Indirect Competitors
The following businesses are located within a 5-mile radius of [Company Name], thus providing either direct or indirect competition:
Whole Bean Roasting Company
This coffee company is a direct competitor, however it is 7 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. The 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 10 coffee shops, Go Coffee Go is located 3 miles from [Company Name]. 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 4 miles from [Company Name]. 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 [Company Name].
Competitive Advantage
[Company Name] has several advantages over its competition. Those advantages include:
- Ingredients and menu: 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 [Founder’s Name] guarantees that each batch of coffee beans are roasted to perfection. [Founder’s Name] 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 [Company Name]. 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 3 to 5 years.
- Relationships: [Founder’s Name] 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.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- 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
[Company Name] will target all residents, workers and commuters of [company location] within a 10-mile radius. The company’s promotion strategy to reach the most clientele includes:
Public Relations
[Company Name] will work with local media to create a newsworthy editorial segment of our unique backstory and the addition of expanded services via the drive-up and walk-up Express Delivery bay. This will be featured in local newspapers and the “lifestyle” feature in the Saturday edition, as well as on local television stations.
Social Media
[Company Name] will increase social media call-outs and targeted posts to introduce our expanded Express Delivery service. The emphasis on the company history and unique aspects of coffee bean roasting will be explored in a series of blog posts by [Company Founder] to develop a larger audience of coffee aficionados. Upcoming special events, such as the coffee giveaway during the launch of our Express Delivery service, and seasonal coffee flavors will also be announced on social media and in the press.
Website
[Company Name] 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 [Company Founder] discussing his background and family history. Seasonal coffee flavors and specials will also be introduced.
Partnerships with Local Businesses
[Company Name] 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 [Company Founder], and free-coffee vouchers for employees who visit our company for the first time.
Promotions for Residents and Commuters
Each week at [company location], [Company Founder] will introduce new flavors of coffee in free demi-cups to residents and commuter customers. These once-a-week introductions will be followed by a coffee bean roasting demonstration.
Pre-Opening Events
During the month prior to the launch of our Express Delivery service, names of commuters will be collected for a drawing to be held at the opening of Express Delivery service. Seven winning names will be drawn by [Company Founder] to receive free coffee at [Company Name] for one full year.
Billboard
[Company Name] will highlight the Express Delivery service on the speedway billboard just prior to the exit ramp near [company location]. The billboard will call out the [Company Name] app, which offers ease of use in pre-selection of coffee, pre-payment for coffee and fast pick-up of prepared coffee at the Express Delivery service bay.
Pricing Strategy
[Company Name]’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.
VII. Operations Plan
Functional Roles
[Company Name] will augment current team members with the functional roles needed to execute our business plan and ensure the company’s success.
Administrative Functions
- Administrative functions, including accounting and legal services
- Brand management and marketing
- Kitchen Inventory Management
- Hiring and training of staff members
Kitchen Functions
- Coffee ingredients prep, processing and clean-up
- Server presentation, table clean-up
- Equipment operations and maintenance
- Coffee menu creations
Customer Service
- In-house counter service
- In-house table service
- Express Delivery window service
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 Founder] is a majority partner of [Company Name], sharing the partnership with his two sons in this S-corporation structure. He brings his deep experience in coffee bean roasting and his management of a coffee roasting company for eight years into [Company Name]. His expertise at roasting coffee beans brings a singular experience into this coffee house and the premium coffees produced have already garnered a large following of coffee lovers. [Company Founder] is often assisted by his two sons, who are learning the art of coffee bean roasting and the operations of a coffee house from him. Although [Company Name] has been in business for one year, the expansion of the company with the Express Delivery service will increase the revenue and subsequent return on investment, create a new customer segment, and add to community resources for commuters.
[Founder’s Name] graduated from North Central College, where he majored in culinary services. He is a member of the International Association of Culinary Professionals.
Hiring Plan
[Founder’s Name] is the CEO of the S-corporation and the general manager of [Company Name]. He will add to the personnel already hired in order to maintain an effective and profitable coffee bean roasting business.
- Assistant store manager to assist with all operations functions and manage the business while [Founder’s Name] is not on-site.
- Wait Staff to assist customers at the counter, at table service areas, and at the expanded Express Delivery window. Three staff members currently work part-time; an additional two members will be needed.
- Coffee Bean Roaster to assist [Founder’s Name] with roasting processes, as needed on a part-time basis.
- Maintenance Staff will be needed to add to the current two members who clean the general premises and roasting areas. Two additional staff members will be needed with the opening of the Express Delivery window.
IX. Financial Plan
Revenue and Cost Drivers
The revenues for [Company Name] are meeting the current expenses; however, there is a need for a greater return on investment and further revenues to reach profitability on a greater scale. The expansion of the customer base to be developed with the Express Delivery window will allow [Company Name] to reach these profit goals.
[Company Name] has already established a solid residential customer base and has attracted professionals and executives who work within the 2-3 mile radius of the company. However, the large segment of target customers who commute directly past the [company location] represent an extraordinary untapped market waiting to be developed.
The major costs for this expansion will be the development of a digital application that will offer our customers (residential and commuter) pre-selection of coffee type, pre-payment for coffee, and a designated time for coffee pick-up. Additionally, a service bay and window will need to be cut from the existing outer wall of the building to accommodate the service area needed and a widened drive through lane will be needed. Other cost drivers include additional staff members to service the window and increased customer base.
Capital Requirements and Use of Funds
[Company Name] is seeking $260,000 in funding to expand its coffee roasting house. The funding will include funds for building and expansion expenses, a digital application, and capital expenditures for staff increases, marketing and advertising expenses.
The breakout of the funding may be seen below:
- Express coffee delivery window and service bay: $125,000
- Digital application: $50,000
- Marketing and advertising: $35,000
- Additional coffee roaster: $50,000
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 | |
| PRE-TAX 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 |
