Your answers to these questions will help inform the other seven steps in the process, especially when it comes time to write your coffee shop business plan. <\/p>\n\n\n\n
Step 2: Choose your location wisely<\/h3>\n\n\n\n
Now that you have a clear vision of your soon-to-be-opened coffee shop, you need to start thinking about where you\u2019ll open your coffee shop\u2019s doors. <\/p>\n\n\n\n
There are several things to keep in mind when you\u2019re picking a coffee shop location:<\/p>\n\n\n\n
- \n
- How much space do you need to function? <\/li>\n\n\n\n
- Where does your target audience spend most of their time?<\/li>\n\n\n\n
- Will you be staying in the city you live in, or moving elsewhere?<\/li>\n<\/ul>\n\n\n\n
There are (unfortunately) a ton of location-based constraints that you may need to figure out in this step, too.<\/p>\n\n\n\n
For example, your dream location\u2019s real estate market might be slow, or incredibly expensive, or simply non-existent. This is why it\u2019s so important to stay flexible and adaptable at this stage. Having an open, functional coffee shop in your second-choice location is way better than never opening your doors in the first place! <\/p>\n\n\n\n
Plus, your coffee shop\u2019s location doesn\u2019t have to be permanent, either. You can always open another location, upgrade your current spot, or do a combo of the two further down the line. <\/p>\n\n\n\n
![\"coffee](\"https:\/\/www.getcraver.com\/wp-content\/uploads\/2025\/09\/3-1024x577.jpg\")
<\/figure>\n\n\n\nStep 3: Figure out your costs <\/h3>\n\n\n\n
At this point in the \u201chow to open a coffee shop\u201d checklist, it\u2019s time to talk money. <\/p>\n\n\n\n
Now\u2019s the time to figure out everything you need to about finances, including: <\/p>\n\n\n\n
- \n
- What you need to pay for (i.e., equipment investments)<\/li>\n\n\n\n
- How you\u2019re going to pay for it (i.e., bootstrapping, investors)<\/li>\n\n\n\n
- How you plan to actually make your money (i.e. profit margins)<\/li>\n\n\n\n
- How much money you need to make to stay open (i.e., projected revenue)<\/li>\n<\/ul>\n\n\n\n
All of this information gets tied nicely into your coffee shop business plan in the next step, too. You\u2019ll use your answers to these questions as \u201cproof\u201d that your coffee shop can <\/em>make money, while helping you understand how you\u2019ll do it, too. <\/p>\n\n\n\n
Luckily, the information you lay out in this step doesn\u2019t have to be one-and-done. <\/p>\n\n\n\n
If things change as you go through the rest of the steps\u2014 which they always do \u2014 you can come back to this step, adjust your estimates, add new costs, update old ones, and revisit your projections. It\u2019s really more of an ongoing step! <\/p>\n\n\n\n
Step 4: Write a business plan<\/h3>\n\n\n\n
After you\u2019ve figured out your coffee shop\u2019s vision and concept, picked a spot to open, and figured out your finances, it\u2019s time to make it \u201cofficial\u201d by writing a business plan<\/a>. <\/p>\n\n\n\n
A coffee shop business plan is a detailed, written document outlining (and explaining) every part of your business, from the high-level concept and vision you just defined to the more nitty-gritty things like your marketing, financial, and operations plans. <\/p>\n\n\n\n
Your coffee shop business plan is a blueprint for how to run your business, how to make decisions that align with your goals, and what success looks like in the short- and long-term. It\u2019s also a key part of funding applications and investor proposals! <\/p>\n\n\n\n
\n\n\t\n\n\t\t\t\t\tNot sure where to start with your coffee shop business plan? Our template can help!\u00a0<\/div>\n\t\t\n \n\t\t\t\t\t\n\t\t\t\n\t\t\t\tGet Your Free Copy!\t\t\t<\/span>\n\t\t\t<\/a>\n\t\t\n\t<\/div>\n\n\n\nStep 5: Get your legal stuff in order<\/h3>\n\n\n\n
The fifth step in opening a coffee shop is all about the \u201cless exciting but important\u201d stuff: getting your permits, licenses, and legal docs in order. <\/p>\n\n\n\n
The specific permits and licenses your coffee shop needs will depend on your business\u2019s details and the state you\u2019re operating in, but here are a few common ones that most coffee shops will need to look into. <\/p>\n\n\n\n
- \n
- A sign permit<\/li>\n\n\n\n
- A business license<\/li>\n\n\n\n
- A building health permit <\/li>\n\n\n\n
- A retail food service license<\/li>\n\n\n\n
- A food handler\u2019s permit for each employee<\/li>\n<\/ul>\n\n\n\n
No matter how confident you feel with the permit and license processes in your state, it\u2019s a good idea to get support and\/or a final check from a lawyer, consultant, or other regulatory professional.<\/p>\n\n\n\n
All it takes is one missed permit or license to keep your coffee shop from opening on schedule \u2014 and nobody<\/em> wants that! <\/p>\n\n\n\n
Step 6: Build your brand and marketing foundation<\/h3>\n\n\n\n
Step six in our \u201chow to open a coffee shop\u201d checklist brings creativity back into the picture, because it\u2019s time to build out your coffee shop\u2019s brand and marketing foundation. <\/p>\n\n\n\n
This step involves a lot of creative decision-making, starting with branding.<\/p>\n\n\n\n
You\u2019ll need to determine each of the unique elements that make up your coffee shop\u2019s brand, from your logo and colors to your voice and personality. And, considering there are over 85,800 coffee shops<\/a> in the US right now, you\u2019ll also need to spend some time thinking about how to make your branding stand out<\/em> (which our \u201cCoffee Shop Branding\u201d blog<\/a> can help with!). <\/p>\n\n\n\n
This step is also a great opportunity to explore how your branding applies to other parts of your coffee shop, too. You\u2019ll want to figure out your answers to branding-focused questions like:<\/p>\n\n\n\n
- \n
- Will you create any merchandise with your branding\/logo?<\/li>\n\n\n\n
- How will you apply your branding to your coffee shop\u2019s social media accounts? <\/li>\n\n\n\n
- What\u2019s the best way to apply your branding to things like take-out cups and mugs?<\/li>\n<\/ul>\n\n\n\n
\u2192 For more details on building your brand, check out our blog \u201c<\/em>Coffee Shop Branding: 5 Ways to Stand Out!<\/em><\/a>\u201d <\/em><\/p>\n\n\n\n
Step 7: Design your space and hire your team<\/h3>\n\n\n\n
By step seven, you\u2019ve got all the \u201cbig things\u201d crossed off the list, like your location, start-up costs, permits, and branding. Now, it\u2019s time to design your space and fill out your team. <\/p>\n\n\n\n
The first thing to start with here is the floor plan<\/a>.<\/p>\n\n\n\n
Your coffee shop\u2019s floor plan should identify all of the most important parts of your building, laying out front- and back-of-house areas with measurements. Once the floor plan is done \u2014 and you\u2019ve got exact measurements to work with \u2014 you can start filling out the rest of the space with furniture, appliances, and decor. <\/p>\n\n\n\n
Next up is the hiring process. <\/p>\n\n\n\n
If you want your coffee shop to make your customers feel seen, heard, and willing to become regulars, then hiring the right team is a non-negotiable. The best way to kickstart this process is by writing strong, engaging job descriptions<\/a>, tailored to attract your ideal employee. From there, pick out the top applicants and start the coffee shop-specific interview process<\/a>, making sure they\u2019ve got the skills you need and<\/em> the energy you want. <\/p>\n\n\n\n
![\"coffee](\"https:\/\/www.getcraver.com\/wp-content\/uploads\/2025\/09\/2-1024x577.jpg\")
<\/figure>\n\n\n\nStep 8: Do a soft launch before your grand opening<\/h3>\n\n\n\n
The final step in opening your coffee shop is to host a trial run before the big day, also called a \u201csoft launch\u201d or \u201csoft opening<\/a>.\u201d<\/p>\n\n\n\n
The reason we recommend soft launches is simple: practice makes perfect.<\/p>\n\n\n\n
Soft launches give your staff a chance to make sure things are running smoothly and to identify bumps in the road that\u2019ll need to be fixed before the official launch. You can also get invaluable feedback from soft launches, allowing you to fix, change, or adjust things before your doors are officially open. <\/p>\n\n\n\n
A soft launch also gives you a chance to iron out any bugs or glitches in your tech before \u201creal\u201d money is exchanged. That way, you know for a fact that your POS software and payment processors<\/a> are running in tip-top shape before your coffee shop opens for real. <\/p>\n\n\n\n
How Much Money Do I Need to Open a Coffee Shop?<\/h2>\n\n\n\n
How much money you need to get your coffee shop up and running depends on the features of your<\/em> specific coffee shop.<\/p>\n\n\n\n
Everything from location size and building type to local real estate prices and specialty products can impact how much things will cost you, so unfortunately, there\u2019s no hard-and-fast dollar amount that we can give you. <\/p>\n\n\n\n
But, that said\u2026 <\/p>\n\n\n\n
Crimson Cup Coffee & Tea conducted a study in April 2025<\/a>, interviewing independent coffee shops to see how much they spent to get things off the ground \u2014 and here\u2019s what they found.<\/p>\n\n\n\n
- \n
- Coffee shops with dine-in seating only: $100K \u2013 $350K<\/li>\n\n\n\n
- Coffee shops with a drive-thru only: $100K \u2013 $250K<\/li>\n\n\n\n
- Coffee shops with dine-in and drive-thru: $120K \u2013 $400K<\/li>\n<\/ul>\n\n\n\n
So, based on Crimson Cup\u2019s research, we can estimate that it takes anywhere from $100,000 to $400,000 to open up a coffee shop, but again, that all depends on your<\/em> coffee shop\u2019s features.<\/p>\n\n\n\n
\n\n\t\n\n\t\t\t\t\tGet your numbers in order (with less work than usual) with Craver\u2019s Coffee Shop Business Plan Template.\u00a0<\/div>\n\t\t\n \n\t\t\t\t\t\n\t\t\t\n\t\t\t\tGet Your Free Copy!\t\t\t<\/span>\n\t\t\t<\/a>\n\t\t\n\t<\/div>\n\n\n\nHow Profitable is it to Open a Coffee Shop?<\/h2>\n\n\n\n
Much like the previous section, the answer here is \u201cit depends.\u201d <\/p>\n\n\n\n
Tons of factors can impact how profitable (or not<\/em> profitable) opening a coffee shop is, like:<\/p>\n\n\n\n
- \n
- Your volume of foot traffic<\/li>\n\n\n\n
- Your customer retention<\/a> rate<\/li>\n\n\n\n
- The pricing strategy<\/a> you\u2019re using <\/li>\n\n\n\n
- How successful your marketing<\/a> is <\/li>\n\n\n\n
- Whether your branding<\/a> helps you stand out<\/li>\n\n\n\n
- How well you\u2019ve implemented menu engineering<\/a><\/li>\n<\/ul>\n\n\n\n
\u2192 For more tips on increasing coffee shop profits, check out our blog \u201c<\/em>How Much Do Coffee Shops Make?<\/em><\/a>\u201d <\/em><\/p>\n\n\n\n
Wrap Up<\/h2>\n\n\n\n
As you start making your way through our \u201chow to open a coffee shop\u201d checklist, you might find yourself a little stuck at step #4: writing a business plan.<\/p>\n\n\n\n
What questions need to be answered in an Executive Summary? How do you do a Market Analysis? And what do you need to write out your Menu and Services section?<\/p>\n\n\n\n
Luckily, our Coffee Shop Business Plan Template was designed to help you answer all of these questions with an easy-to-fill-in template that you can customize to your coffee shop\u2019s needs, wants, and goals. <\/p>\n\n\n\n
You got this! <\/p>\n\n\n
- The pricing strategy<\/a> you\u2019re using <\/li>\n\n\n\n