essay about coffee shop business

Strategic Business Plan for Coffee Shop: A Caffeinated Strategy

In today’s bustling world, coffee shops have become more than just places to grab a caffeine fix. They have evolved into cultural hubs, meeting spots, and workspaces for many individuals. If you’re an aspiring coffee shop owner, a well-crafted strategic business plan will serve as the foundation for your progress.

This article will guide you through the key elements to consider when developing a strategic business plan for your coffee shop.

Table of Contents

Defining Your Vision and Mission

Is it the warm and cozy ambiance you create, the exquisite selection of artisanal coffee blends, or the exceptional level of customer service you offer? Identify these unique selling points that make your coffee shop special.

For example, if your coffee shop aims to be a haven for relaxation and connection, your mission statement might emphasize creating a cozy and welcoming environment where customers can unwind and forge meaningful connections with others.

A well-crafted mission statement not only guides your daily operations and decision-making but also resonates with your target audience. It helps customers understand what to expect when they step into your coffee shop and why they should choose you over other options. Your mission statement becomes a powerful tool for building brand identity and fostering customer loyalty.

Remember, a compelling mission statement is more than just a string of words. It should embody your passion, reflect your values, and communicate the unique experience you aim to deliver. Take the time to refine and articulate your mission statement, ensuring it captures the essence of your coffee shop and inspires both your team and your customers.

Understanding Your Target Market

Start by analyzing the demographics of the community in which your coffee shop is located. Consider factors such as age, gender, income level, and occupation.

Psychographics also play a significant role in identifying your target market. Take the time to explore the attitudes, values, and lifestyles of your potential customers.By understanding their motivations and preferences, you can align your offerings and marketing strategies accordingly.

Studying coffee consumption patterns in your area is essential. Are there any prevailing trends or preferences among local coffee enthusiasts? Do they have a preference for certain brewing methods, specialty blends, or alternative milk options?

Analyzing the Competition

In the highly competitive coffee industry, it is important to recognize that competition can be fierce. It is essential to conduct a comprehensive analysis of your competitors, both local and regional.

By understanding your competitors’ strengths, you can gain insights into what they are doing well and leverage those insights to improve your own offerings. Likewise, identifying their weaknesses presents an opportunity for you to fill any gaps in the market and offer a superior alternative.

Furthermore, pinpointing the unique selling propositions of your competitors will allow you to differentiate your coffee shop. Look for aspects that set them apart from others, such as specialty coffee blends, innovative brewing methods, or a focus on sustainability. Differentiating yourself by offering something unique and valuable to your target market will help attract customers and foster customer loyalty.

Developing a Unique Value Proposition

To attract and retain customers, it is crucial to build a strong value proposition for your coffee shop. This involves determining what makes your establishment unique and crafting a compelling message around it.

Craft a compelling message that effectively communicates your unique qualities. Focus on the benefits and value that your coffee shop brings to customers.

For example, if you prioritize sustainability and ethically sourced beans, emphasize how your coffee not only provides a delicious and satisfying experience but also supports responsible farming practices and fair trade. If you offer a wide range of homemade pastries, highlight the freshness and uniqueness of your treats, appealing to customers’ desire for artisanal, handcrafted options.

Read more about: Cost to Open Up a Coffee Shop: The Financial Considerations

Designing an Engaging Customer Experience

Background music also plays a significant role in setting the ambiance of your coffee shop. Choose a playlist or genre that complements your brand identity and creates a pleasant atmosphere for your customers. Consider the volume, tempo, and style of music to ensure it doesn’t overpower conversations or disrupt the overall experience.

Finally, leverage social media platforms to engage with your customers. Respond promptly to their inquiries and feedback, showcase your coffee offerings and events, and create an online community around your brand. Engaging with customers on social media helps foster a connection beyond the physical space of your coffee shop.

Crafting a Menu and Beverage Selection

Start by offering a variety of espresso-based drinks, such as lattes, cappuccinos, and macchiatos, prepared with precision and expertise. Ensure the quality of your espresso is top-notch, as it serves as the foundation for many specialty beverages.

In addition to espresso-based drinks, include a selection of drip coffee options, highlighting different roast profiles and origins to cater to coffee purists. Don’t forget about tea lovers – offer a range of high-quality teas, both hot and iced, including popular varieties like green, black, herbal, and specialty blends.

Regularly review and update your menu to keep it fresh and appealing. Pay attention to customer feedback and preferences, and adjust your offerings accordingly. This will demonstrate your commitment to providing an exceptional experience and keep customers coming back for more.

Planning Financial Projections

To begin, calculate the initial investment costs required to set up your coffee shop. This includes expenses such as lease or purchase of the premises, renovation and equipment costs, licensing and permits, and initial inventory. Research and obtain accurate quotes to ensure your projections are as precise as possible.

Pricing strategies play a vital role in determining your revenue potential. Consider factors such as your target market, competition, and the perceived value of your products. Conduct market research to understand the pricing landscape and set competitive yet stable prices that align with your positioning and target customers.

Well-developed financial projections will not only guide your decision-making process but also attract potential investors or lenders by showcasing your thorough understanding of the financial aspects of your coffee shop.

Marketing and Promotions

Harness the power of social media platforms to connect with potential customers. Create engaging profiles on platforms like Instagram and Facebook, and regularly share captivating photos and videos of your coffee creations, cozy ambiance, and special events. Interact with your followers, respond to comments and messages, and use relevant hashtags to expand your reach.

Community involvement is another effective way to raise awareness. Participate in local events or sponsor community gatherings to showcase your coffee shop. Offer discounts or special promotions to event attendees to entice them to visit your establishment. By becoming an active member of your community, you can build a positive reputation and establish strong connections with potential customers.

Visual content is a powerful tool in marketing your coffee shop. Invest in professional photography to capture the essence of your coffee creations and create visually appealing images that tempt potential customers. Share these visuals on your social media platforms, website, and advertising materials to entice people to visit and experience your coffee shop firsthand.

Operational Considerations

First and foremost, selecting a suitable location plays a pivotal role. Consider factors such as foot traffic, visibility, accessibility, and proximity to your target market. A strategic location can attract more customers and increase your shop’s visibility.

Securing the necessary permits and licenses is another vital step. Research and comply with local regulations to obtain the required permits for operating a coffee shop. This may include health permits, food handling licenses, and zoning approvals. By ensuring legal compliance, you can avoid potential disruptions and legal issues down the line.

Hiring and training competent staff is crucial for providing excellent customer service. Seek individuals with a passion for coffee and strong interpersonal skills. Train them in various aspects, including coffee preparation, customer interaction, and cleanliness standards. Empower your employees to deliver exceptional service and create a welcoming atmosphere for customers.

Monitoring and Adapting

Tracking sales data is essential to evaluate the financial performance of your coffee shop. Monitor daily, weekly, and monthly sales figures, analyze revenue streams from different product categories, and identify trends in customer spending.

Flexibility and adaptability are key qualities for a great coffee shop owner. Based on the insights gained from monitoring KPIs, be open to making necessary adjustments to your business strategy.

Read more about: Cost to Open Coffee Shop: Breaking Down the Bucks

Crafting a strategic business plan for your coffee shop sets the stage for growth in an ever-evolving industry. Remember to focus on creating an engaging customer experience, carefully curating your menu, and implementing effective marketing strategies. With a well-thought-out plan and continuous monitoring, your coffee shop can become a thriving destination for coffee lovers and a staple in the community.

Frequently Asked Questions

Q: how important is a strategic business plan for a coffee shop, q: how do i determine my target market for a coffee shop, q: why is monitoring performance and adapting important for a coffee shop.

A: Monitoring key performance indicators, customer feedback, and market trends allows you to identify areas for improvement, make informed decisions, and stay responsive to customer preferences and market dynamics.

To learn more on how to start your own coffee shop, check out my startup documents here.

As I saw smaller and even some larger coffee shops in the neighborhood slowly lose customers to these giant coffee chains and slowly close up shop, I knew that I had to start getting creative…or go out of business.

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Related posts, best ways to implement sustainable practices in your coffee shop, how to host events at your coffee shop, best coffee shop loyalty programs to implement, infusing style and substance: a blueprint for coffee shop design, infusing comfort and charm: small coffee shop design concepts.

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Coffee Shop SWOT Analysis: Strengths, Weaknesses, Opportunities and Threats

by I.J. Karam | Jan 1, 2023 | Business Plans

Are you looking to launch a coffee shop venture? If yes, then you need to carefully analyze your coffee shop’s strengths, weaknesses, opportunities and threats (also known as SWOTs). A coffee shop SWOT analysis is usually an important section of your coffee shop business plan . In fact, having a deep understanding of the SWOTs involved in your café project will enable to grasp the full implications of operating such a business, from leveraging your advantages, improving your limitations and unlock growth while mitigating risks.

So without further ado, let’s see what are the main SWOTs involved in a coffee shop business:

Strengths of a coffee shop

• The quality of your products: A successful coffee shop needs to offer high-quality coffee, tea, and other beverages, as well as fresh and tasty food options. You can do that by sourcing your ingredients from a handpicked number of local suppliers while keeping your inventory low to ensure maximum product freshness.
• Top notch customer service: Providing excellent customer service can go a long way in attracting customers to your coffee shop and generate loyalty. A strong customer service is guaranteed when you have a friendly and knowledgeable staff, maintain a welcoming atmosphere, and ensure a fast and efficient service.
• A good location: A coffee shop SWOT analysis is incomplete if you forget to address the location of your venue. A convenient location can be a strong asset for your coffee shop venture. In fact, it can have a direct effect of your overall business success. Make sure you open your coffee shop in a strategic area with easy access and plenty of foot traffic.
• A strong branding and marketing: Developing a strong brand identity and effectively marketing your coffee shop are key to building a growing and sustainable business. In this day and age, leveraging the power of social media, customer reviews and word of mouth can go a long way in attracting and retaining a robust clientele.
• Solid financial management: Proper financial management, including accurate forecasting and budgeting, as well as a strong cost control are essential for any business to thrive and your coffee shop is no exception.
• Constant innovation: Staying up to date with the latest industry trends and consistently introducing new coffee products and offerings can help keep customers coming back and unlock new revenue streams.

Weaknesses of a coffee shop

• Variable demand and seasonality: The demand for coffee and other beverages can be affected by a variety of external factors, including the weather, economic conditions and other factors. For example, colder weather may lead to an increase in demand for coffee and warm beverages, while a recession may lead to a decrease in demand due to reduced disposable income. Some coffee shops may also experience fluctuations in demand due to seasonality, such as an increase in demand for iced beverages during the summer months. This can impact profitability and make it difficult to predict and plan for future demand. Make sure to address your project’s seasonality while building your coffee shop financial plan .
• High running costs: Coffee shops often have high overhead costs, including rent, utilities, marketing budgets and labor. Sometimes, these costs can be difficult to control and can impact profitability, especially if sales are not meeting expectations.
• Limited operating hours: Many coffee shops operate during the morning and early afternoon hours, which can limit the potential for revenue. This can be especially challenging if the business is not located in an area with a high footfall.

Opportunities for a coffee shop

• Focusing on a niche market: Focusing on a specific niche market can help your coffee shop stand out from the competition and attract a loyal customer base. For example, a coffee shop that focuses on sustainably sourced, organic coffee beans and offers a variety of brewing methods may appeal to a particular segment of coffee enthusiasts.
• Leveraging online orders: Offering online sales and delivery can help your coffee shop reach a wider audience and generate additional revenue streams. This can be especially useful for customers who may not be able to visit your physical location or who prefer to order from the comfort of their home/office.
• Partnerships with other local businesses: Partnering with local businesses or organizations or collaborating with other food and beverage vendors in your vicinity, can help your coffee shop grow its number of customers and generate additional sales. For example, you might want to partner with a local bakery to offer pastries, or collaborate with a local event venue to provide catering services for their events.
• Hosting special events: Live music, stand-up gigs or community gatherings are all examples of events that can help drive more visitors to your coffee shop and create a unique atmosphere. These events can also help your coffee shop build a sense of community and establish itself as a popular gathering place.
• Menu expansion: How about adding more items to your menu? By including new food and beverage options, such as smoothies, pastries or even sandwiches and food, you can appeal to a wider range of customers and hence generate more revenues. This can be especially useful if your coffee shop is located in an area with a low number of restaurants or F&B outlets.
• Starting a loyalty program: It is a well-known fact that rewards for frequent purchases or referral programs can help a coffee shop build a loyal customer base and encourage repeat business. These programs can also help you gather valuable data on customer preferences and consumer behaviors. Since most big coffee brands like Starbucks or Costa are doing it, there must me a sound reason to do it, and you should too.
• Opening new branches and franchising: Expanding your coffee shop business by opening additional branches in new locations or even starting a franchising program are all potential opportunities you should explore later down the line. This can be especially relevant once you have successfully established your first outlet and built a solid reputation and customer base. Discussing how you plan to grow and scale your venture is relevant in this section of your coffee shop SWOT analysis.

Threats for a coffee shop

• Tough competition: There may be a lot of competition in the coffee shop market where you operate, as there are many small businesses that offer similar products and services. This can make it difficult for a new coffee shop to stand out and attract customers, especially if there are already many established competitors in the area.
• Uncertain economic conditions: Economic downturns or instability can lead to reduced consumer spending, which can negatively impact coffee shop visits. This can make it more difficult for a coffee shop to maintain profitability and may require the business to make adjustments to its operations.
• Shift in consumer preferences: We live in a fast-paced world where consumer trends often change, and new trends keep emerging. These shifts in consumer behavior can impact the demand for certain products and services, including the type of coffee consumed. For example, if there is a tendency towards healthier, natural options, your coffee shop may need to adapt its menu to cater for this new demand.
• Disruptions in the supply chain: Delivery delays or shortages of certain coffee ingredients or equipment can impact a coffee shop’s ability to operate effectively and maintain profitability. This situation can be especially challenging if your coffee shop is reliant on a small number of suppliers.
• Health and safety concerns: Your coffee shop may face challenges related to health and safety, such as the risk of foodborne illnesses or accidents in the workplace. Ensuring that your venue is compliant with health and safety regulations and having the proper quality controls and certifications can help minimize these risks.

Now that we have seen the main SWOTs of a coffee shop business, make sure you incorporate this analysis in your business plan. Remember, a thoroughly prepared coffee shop SWOT analysis should be included in your coffee shop business plan , so you’d better start preparing one now to save time and efforts down the line.

And by the way, have you checked our ready-made coffee shop business plan template ? If you are in the process of planning your next coffee shop venture, you need to download our pre-written business plan in Word. It comes also with an automatic financial plan in Excel tailored to the coffee shop business and very easy to use.

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Coffee Shop Business Plan

Start your own coffee shop business plan

Java Culture

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody.

Java Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one.

Java Culture will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the University of Oregon campus will provide access to the targeted customer audience.

Competition

Java Culture’s direct competitors will be other coffee bars located near the University of Oregon campus. These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee.

Great coffee, pastries, additional options for tea etc, very welcoming atmosphere, good wireless, desk space, comfortable chairs and tables, good pastries, a location close to the university campus.

Expectations

We plan to grow as shown in the chart below, taken from our sales forecast. We aim to maintain an industry-standard 60% gross profit margin and reasonable operating expenses, and to produce reasonable profits in the second and third year.

Financial Highlights by Year

Financing needed.

The owners will invest $140,000 and take out a bank loan for $30,000  to cover the start-up expenses and assets needed plus deficient spending in the early months.

The start-up expenses of $27,000 include:

• Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300.
• Marketing promotion expenses for the grand opening of Java Culture in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Consultants fees of $3,000 paid to ABC Espresso Services <name changed> for the help with setting up the coffee bar.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $2,400.
• Pre-paid rent expenses for one month at $1.76 per square feet in the total amount of $4,400.
• Premises remodeling in the amount of $10,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).

These expenses will be incurred before launch, so they take their place in our financial projections as negative retained earnings of $27,680 at the end of the month before we begin. That number shows up in the balance sheet.

The required start-up assets of $143,000 include:

• Cash in the bank in the total amount of $67,000, which includes enough to cover employees and owner’s salaries of $23,900 for the first two months and cash reserves for the first three months of operation (approximately $14,400 per month).
• Coffee beans (12 regular brands and five decaffeinated brands) – $6,000
• Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $7,900
• Retail supplies (napkins, coffee bags, cleaning, etc.) – $1,840
• Office supplies – $287
• Espresso machine – $6,000
• Coffee maker – $900
• Coffee grinder – $200
• Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000
• Storage hardware (bins, utensil rack, shelves, food case) – $3,720
• Counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Serving area equipment (plates, glasses, flatware) – $3,000
• Store equipment (cash register, security, ventilation, signage) – $13,750
• Office equipment (PC, fax/printer, phone, furniture, file cabinets) – $3,600
• Other miscellaneous expenses – $500

Funding for the company comes from two major sources–owners’ investments and bank loans. Two major owners, Arthur Garfield and James Polk, have contributed $70,000 and $30,00 respectively. All other investors have contributed $40,000, which brings the total investments to $140,000. The remaining $30,000 needed to cover the start-up expenses and assets came from the two bank loans–a one-year loan in the amount of $10,000 and a long-term (five years) loan of $20,000. Both loans were secured through the Bank of America. Thus, total start-up loss is assumed in the amount of $27,000.

The amounts show up in the balance sheet in the month prior to opening. The $140,000 investment shows up as Paid-in Capital. The $27,000 expenses show up as negative retained earnings. Assets and liabilities are there. This is all according to financial standards.

Problem & Solution

Problem worth solving.

People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody. 

Our Solution

Java Culture will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Java Culture will invest its profits to increase the employee satisfaction while providing stable return to its shareholders.

Target Market

Market size & segments.

Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. The retail coffee industry is flourishing in the U.S. Pacific Northwest. The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks. Furthermore, coffee has really become a part of the lifestyle in the Pacific Northwest. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment.

More specifically, the University of Oregon as close to 25K students and another 5-10K faculty and staff. And it is embedded in the Eugene, OR community of 200K people. Our main market will be students, faculty, staff, and nearby residents. But the campus area is a hub for the community and will attract other customers. 

Current Alternatives

Our Advantages

Java Culture will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base.

Keys To Success

The keys to success will be:

• Store design that will be both visually attractive to customers, and designed for fast and efficient operations.
• Employee training to insure the best coffee preparation techniques.
• Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks.

Marketing & Sales

Marketing plan.

Java Culture will position itself as unique coffee bar where its patrons can not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Java Culture from incumbent competitors.

In order to build up its client base, Java Culture will use some strategic banners and fliers during the launch period, utilize customer referrals and cross-promotions with other businesses in the community from time to time, and loyalty programs that work with android and IOS and other mobile phones, which is the preference of our market.

Our main thrust will be getting people to know, like, and trust us with content and engagement in Facebook, Instagram, Snapchat, and Twitter.  We intend to maintain social media presences that are light on self-serving promotional quasi-advertising content, heavy on community participation, content, and engagement. 

Java Culture baristas will handle the sales transactions. To speed up the customer service, at least two employees will be servicing clients–while one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes.

Locations & Facilities

Java Culture coffee bar will be located on the ground floor of the commercial building at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a one-year lease of the vacant 2,500 square feet premises previously occupied by a hair salon. The lease contract has an option of renewal for three years at a fixed rate that Java Culture will execute depending on the financial strength of its business.

The floor plan will include a 200 square feet back office and a 2,300 square feet coffee bar, which will include a seating area with 15 tables, a kitchen, storage area and two bathrooms. The space in the coffee bar will be approximately distributed the following way–1,260 square feet (i.e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer service area.

This property is located in a commercial area within a walking distance from the University of Oregon campus on the corner of a major thoroughfare connecting affluent South Eugene neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area. The coffee bar’s open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishment’s positioning as an eclectic place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their beverages, and outside electric signs will be aimed to grab the attention of the customer traffic.

Milestones & Metrics

Milestones table.

Key Metrics

We have our forecasts for sales, direct costs, and operating expenses. As we get into the business we’ll develop standards based on experience for Facebook likes, Twitter follows, and other social media engagement. We expect to watch these very carefully. 

Ownership & Structure

Java Culture is majority-owned by Arthur Garfield and James Polk. Mr. Garfield holds a Bachelor’s Degree in Business Administration from the University of ZYX. He’s worked for several years as an independent business consultant. Previously, he owned the ABC Travel Agency, which he profitably sold four years ago. Mr. Garfield has extensive business contacts in Oregon that he will leverage to help his new venture succeed. Mr. Polk has a Bachelor’s Degree in Psychology from the XYZ State University. For the last five years he has worked as a manager of DEF Ristorante, a successful Italian restaurant in Portland, OR. Under Mr. Polk’s management, the restaurant has consistently increased sales while maintaining a lower than average level of operating expenses.

Investors will not be involved into the daily management decisions at Java Culture. They will hire a professional manager who will oversee all the coffee bar operations. Three full-time baristas will be in charge of coffee preparation. They will hire two more part-time employees to fulfill the staffing needs. In the second and third year of operation will add additional employees if and when needed. 

Management Team

A full-time manager will be hired to oversee the daily operations at Java Culture. The candidate (who’s name is withheld due to his current employment commitment) has had three years of managerial experience in the definitely industry in Oregon. This person’s responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties. We believe that our candidate has the right experience for this role. A profit-sharing arrangement for the manager may be considered based on the first year operational results.

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

• We assume a steadily growing potential market in line with growth at the university, trends. 
• We assume industry standard gross margins
• We assume relative status quo regarding technology and trends in the coffee industry

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

The start-up expenses include an estimated $17,000 consisting of several items:

• Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $1,500.
• Other start-up expenses including website ($4,000) and phone and utility deposits ($2,500).

The required start-up assets of $71,000 include:

• Plates, glasses, etc. worth approximately $2,000
• Espresso machine
• Coffee maker
• Coffee grinder 
• Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.)
• Storage hardware (bins, utensil rack, shelves, food case) 
• Counter area equipment (counter top, sink, ice machine, etc.)
• Serving area equipment (plates, glasses, flatware)
• Store equipment (cash register, security, ventilation, signage) 
• Office equipment (PC, fax/printer, phone, furniture, file cabinets) 
• Other miscellaneous expenses

Sources of Funds

Projected profit & loss.

Projected Balance Sheet

Projected Cash Flow Statement

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How To Run A Coffee Shop

Nate Lozier

Running a coffee shop involves blending the art of crafting the perfect brew with the science of efficient management.

This article focuses on the many recurring tasks for successful operations of a coffee shop. To learn more about how to open a coffee shop, read our previous article .

From the moment the doors open to closing time, there are many parts that play a critical role in running a successful coffee shop. This article delves into many of these areas, from the nuances of daily operations, to effective hiring and training of staff, and the numerous managerial tasks in-between that ensure smooth operations.

As we explore labor management, accounting, and the integration of restaurant software, we’ll share valuable insights on how to run your coffee shop efficiently and set the stage for long-term growth. By focusing on these key areas, owners and management can not only enhance the operational efficiency of their establishments but also create a welcoming space that resonates with customers.

Part I: Efficient Store Operations

Running a coffee shop efficiently demands a robust approach to store operations. From the meticulous opening and closing procedures to the consistent delivery of exceptional customer service, this section encompasses the day-to-day tasks that form the backbone of your coffee shop’s success.

Opening and Closing Procedures

The successful operation of a coffee shop requires efficient opening and closing procedures. This includes the daily ritual of cleaning and maintenance to create a welcoming environment for customers and any ingredient prep that needs to take place for the following day. By instilling a culture of attention to detail in these procedures, coffee shop owners can establish a smooth and reliable daily routine. 

The first step for managers is to set up a daily opening checklist and closing checklist for employees to follow. Remember that, in addition to daily checklists, you’ll also want to develop weekly and monthly checklists for maintaining equipment, inventory management, and other recurring tasks at your shop.

It’s important to create a daily checklist for managers as well. While employees typically handle daily cleaning of the shop and inventory prep, managers have a number of daily back-office tasks like monitoring daily sales and reviewing metrics like  cost of goods sold (CoGS) . Many operators monitor these key performance indicators through restaurant management software, which significantly reduces the time required to do so.

Providing Top Customer Service

Exceptional customer service is a crucial component of any successful coffee shop. Training staff on effective customer interaction and implementing a service-oriented culture ensures that customers not only enjoy a great cup of coffee but also a memorable overall experience. By prioritizing customer satisfaction, coffee shop owners can build a loyal customer base and enhance the overall reputation of their establishment.

Consider these key areas to ensure your team is equipped to provide an exceptional customer experience to your customers:

• Product Knowledge: Train your staff not only in the art of brewing but also in the nuances of your coffee offerings. Familiarize them with different bean types, brewing methods, and flavor profiles. A knowledgeable staff can guide customers to the perfect cup.
• Customer Interaction Skills: Teach your staff the importance of positive body language, a friendly tone, and attentive listening. These interpersonal skills create a welcoming atmosphere and make customers feel valued. Role-playing scenarios during training can be an effective way to practice these skills.
• Service-Oriented Culture: Instill a culture where every staff member understands the significance of exceptional service. Encourage them to go above and beyond by anticipating customer needs and exceeding expectations.
• Time Management: In a fast-paced environment like a coffee shop, time management is crucial. Train your staff on efficient order-taking, preparation, and delivery without compromising quality. This ensures a smooth flow during peak hours and minimizes customer wait times.
• Upselling Techniques: Teach your team how to suggest additional items or upgrades without being pushy. This can boost sales and enhance the overall customer experience. For example, they might recommend a delightful pastry to accompany the chosen coffee blend.
• Hygiene and Cleanliness: Emphasize the importance of cleanliness and hygiene in both personal presentation and workspace. A clean and organized environment contributes significantly to a positive perception of your coffee shop.
• Technology Training: Proper training on your point-of-sale (POS) system, for ordering and payment processing, ensures your staff is proficient in using these tools. This minimizes errors, speeds up transactions, and enhances the overall efficiency of your operations.

Continuous Training and Feedback: Customer service trends and preferences evolve, so make training an ongoing process. Regularly update your staff on new products, techniques, and customer service strategies. Encourage open communication and provide constructive feedback to help them continuously improve.

Handling customer complaints and feedback is also a crucial part of customer service training. When faced with a dissatisfied customer, it’s essential to approach the situation with empathy and a solution-oriented mindset. Actively listen to their concerns, allowing them to express their dissatisfaction fully. Remember, every complaint is an opportunity to improve. Once the customer has voiced their grievances, apologize sincerely and assure them that their feedback is valued. Consider offering a tangible solution, such as a complimentary beverage or a discount on their next visit. 

Transparency is also key. If there’s a delay or an issue, communicate it openly. Additionally, proactively seek feedback from all customers, not just those with complaints. Constructive criticism can unveil areas for improvement and highlight what’s working well. Whether it’s through comment cards, online surveys, or a dedicated email address, create channels for feedback, both positive and negative, from your customers.

Menu Management

Regular menu reviews and updates are essential to keep offerings in line with current trends, customer preferences, and ingredient availability. This process involves analyzing sales data, seeking customer feedback, and adapting the menu to cater to evolving tastes.

Seasonal offerings and promotions add a dynamic element to the menu, providing customers with new and exciting choices that reflect the changing seasons or special occasions. These limited-time options not only keep the menu fresh but also create a sense of anticipation among patrons.

Menu engineering – a strategy that’s become more common amongst today’s restaurant and coffee shop operators – involves strategically placing items on the menu to maximize sales and profitability . By identifying high-margin items and promoting them effectively, coffee shop owners can optimize their menu for both customer satisfaction and financial success.

In essence, effective coffee shop menu management is a delicate balance of tradition and innovation, ensuring a delightful and profitable experience for both the business and its patrons.

The Ultimate Guide To Recipe Costing & Menu Engineering

Opening a coffee shop? Check out Part I of this article.

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Inventory Management

The success of a coffee shop is intricately tied to the efficiency of its inventory management. This starts by establishing strong relationships with reliable suppliers, which helps keep CoGs as low as possible.

Maintaining control over inventory levels and optimizing the ordering process helps prevent stockouts or excess stock, contributing to cost efficiency and overall operational smoothness. Continuous improvement in inventory processes ensures that the coffee shop can adapt to changing market conditions and consistently deliver a delightful customer experience.

As a manager, be sure to institute a system for tracking inventory effectively. Your high cost and high use items should be counted daily, while other ingredients might be tracked weekly. Whatever process and frequency you use, make sure to train any staff that’s performing counts to prevent inventory loss or spoilage.

Restaurant management software plays a pivotal role in enhancing inventory management for coffee shops. These tools facilitate the integration between the shop and its vendors, streamlining their operations. Through real-time data insights, owners can monitor inventory levels, track consumption patterns, and anticipate supply needs. Integration between the software and vendors allows for automated ordering processes, reducing the likelihood of human errors and ensuring timely replenishment of essential items. This not only minimizes the risk of stockouts but also helps control vendor costs by optimizing order quantities.

By leveraging technology to enhance communication and collaboration with suppliers and streamline inventory management, coffee shops can achieve greater precision and reduce CoGS. This in turn leads to a more resilient business model and greater profit margins.

Part II: Your Coffee Shop Staff

A restaurant business is only as good as its employees, so it’s important to find a skilled and motivated team. Labor costs have risen significantly across the restaurant industry since the COVID pandemic, so managing your workforce requires extra attention, from hiring, to training and employee recognition.

Your recruitment and hiring processes need to be strategic, focusing on finding individuals who not only possess the necessary skills but also align with your values and the atmosphere you’re trying to create for customers. Be thoughtful and transparent in any job descriptions you post to find employees. Remember that a robust hiring process will lead to less employee turnover, which in turn reduces labor costs.

Once onboard, comprehensive training programs ensure that employees are equipped to deliver top-notch service. As a manager, train your employees not just in drink prep and other standards, but any intricacies or differences between your coffee shop and your competitors that you feel make you stand out.

Employee Performance

Nurturing a positive work environment is a goal for any manager. This involves consistently evaluating and recognizing employee performance. Regular performance evaluations provide constructive feedback, helping employees understand their strengths and areas for improvement. For your top performers, institute recognition and incentives to reward their commitment. Consider implementing a barista of the month program and use social media to shout out your best employees, and provide them with perks and cross-training opportunities .

Staff Scheduling

A well-structured and efficient schedule reduces many of the headaches for both managers and their employees. Beyond the mere task of coordinating shifts, it prevents staff shortages that can significantly impact the service provided to customers in need of their daily caffeine. Here are some strategies to keep in mind when developing your scheduling system .

• Enforce Clock-In and Out Times for Precision: Strict adherence to scheduled clock-in and out times proves essential, preventing additional wage costs associated with early arrivals and ensuring precise labor management.
• Stagger Shifts for Flexible Labor Management: Implementing staggered shift start times provides a dynamic approach to aligning staff with fluctuating sales, optimizing labor costs without compromising service quality.
• Schedule to Employee Strengths: Recognizing and capitalizing on individual strengths ensures efficient service during peak hours and strategic upselling opportunities, directly contributing to revenue enhancement.
• Use Historic Sales Trends for Labor Forecasting: Leveraging past sales data enables precise prediction of future demands, facilitating strategic staffing adjustments during peak hours and seasonal variations.
• Automate for Streamlined Operations: Embracing automated scheduling tools not only empowers staff but also streamlines managerial tasks, saving both employee labor hours and managerial time.

Compliance and Regulations

Compliance with labor laws and regulations is a non-negotiable aspect of labor management. This includes ensuring staff adherence to health and safety regulations, proper training on compliance matters, and staying updated on any legal changes that may impact the workforce. By prioritizing compliance, coffee shop owners can mitigate risks and create a secure environment for both employees and customers.

Part III: Financial Metrics & Key Reports

While a manager doesn’t need to be an accounting buff, a solid understanding of the many financial aspects of your coffee shop is imperative for sustaining a thriving business. This section emphasizes the importance of regular financial reporting, budgeting, and forecasting to maintain financial health. By maintaining a vigilant eye on the financial aspects, coffee shop owners can make informed decisions to optimize their business operations.

Financial Reporting

Regular financial reporting is a crucial component of running any restaurant business. Management and owners need to review financial statements consistently to gain insights into the business’s financial health.

The restaurant profit and loss (P&L) statement , often referred to as the income statement, is a financial document that provides a snapshot of a restaurant’s financial performance over a specific period. This comprehensive statement is a critical tool for owners, managers, and stakeholders to assess the profitability and operational efficiency of the establishment.

While in the past, many restaurant businesses operated on quarterly and monthly P&L statement review, restaurant software has facilitated this process. Many industry leaders now review P&Ls weekly, or even daily, to have better oversight into their costs and address problems more quickly.

Another specific metric that should be at the top of any operator’s list is actual vs. theoretical (AvT) food cost . AvT is a crucial metric, representing the comparison between the cost of ingredients used in food and beverages and the expected cost based on recipes and ingredients. The theoretical food cost is the calculated cost of each item offering if prepared precisely according to the recipe and portion guidelines. On the other hand, the actual food cost reflects the real cost incurred during the production of menu items, considering variations in ingredient prices, waste, and portioning discrepancies.

Monitoring and analyzing the variance between actual and theoretical food costs is vital for coffee shop owners and managers to identify areas of improvement in cost control. If the actual food cost exceeds the theoretical cost, it may indicate issues such as over-pouring, improper portion control, or inefficient purchasing practices. Regularly updating recipe costs and conducting frequent inventory checks can help maintain accuracy in theoretical food cost calculations. 

It’s important to remember that identifying areas of inefficiency for cost reduction isn’t something that can be set and forget. It must be an ongoing process and a moving target to maintain operational efficiency at your coffee shop.

Additional Key Performance Metrics

Coffee shops, like all of today’s restaurant businesses, have access to more and more of their data every day through software. While AvT gives a long-term view into your efficiency, here are a few additional key reports that are available in restaurant software that help monitor the health of your coffee shop and your staff’s performance:

• Daily Sales Summary: Also known as the flash report, this daily snapshot unveils key metrics like sales, labor costs, and comps. It empowers managers with real-time insights, enabling them to make immediate adjustments to prevent small operational issues from snowballing into larger problems.
• Received by Purchased Item: Monitoring vendor pricing through receiving reports is vital for identifying pricing errors, ensuring compliance with contracted prices, and comparing item prices between different locations for potential renegotiations or volume discounts.
• Labor Trends: A graphical representation of labor dollar spend, percentage, and hours compared to scheduled labor and the previous year's actual labor. This visual tool allows you to zoom in and out of data points, enabling comparisons for performance and labor efficiency.
• Labor Actual vs. Scheduled: Similar to the AvT food cost report, this analysis compares scheduled labor costs with actual labor spend, highlighting variances and allowing for in-depth examination of the source, aiding in strategic decisions to control labor costs.
• Overtime Warning: By flagging potential overtime, this report helps managers stay on top of labor costs, alerting them to employees near or already in overtime. It serves as an immediate alert system for making strategic decisions to control labor expenses.

The Role of Restaurant Software

In an era where technology plays a pivotal role in business operations, restaurant software is a key consideration for coffee shop management. The integration of POS with other essential systems, such as store accounting software, creates a synchronized ecosystem. This seamless connectivity reduces manual data entry errors and enables real-time updates on stock levels, pricing, and sales.

For coffee shops, where maintaining optimal stock levels is crucial, inventory management software is also essential. This integration provides a comprehensive overview of the entire supply chain, uncovering areas for improvement. Real-time data insights allow coffee shop owners to monitor inventory levels, track burn rates, and anticipate supply needs. An automated ordering processes, facilitated by the integration of software with vendors, minimize the risk of human errors and ensure timely replenishment of essential items. This not only prevents stockouts but also contributes to controlling vendor costs by optimizing order quantities.

Software touches every part of running a successful coffee shop in the digital age. The connection between these software creates a synchronized ecosystem, empowering you and your team to make informed decisions based on accurate and up-to-date information.

Wrapping It Up

The successful operation of a coffee shop from a restaurant management perspective requires a holistic approach that encompasses store operations, labor management, and financial reporting. Meticulous attention to opening and closing procedures, customer service excellence, and dynamic menu management set the foundation for a thriving coffee shop. Strategic staffing and effective performance management contribute to a positive work environment and employee retention. Sound financial practices, including regular financial reporting, are essential for financial sustainability.

From the intricacies of day-to-day operations to the integration of advanced restaurant software, operators can navigate the complexities of the industry, creating a thriving and sustainable business that resonates with customers and stands the test of time.

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Navigating the Coffee Business Landscape: Challenges and Adaptation Strategies in a Changing World

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Cuban Coffee: Coffee Shop Business Plan

Company Summary

The business will operate with the name of Cuban Coffee. It will be a small coffee shop set within the university for the students, lecturers and other staffs. It will also provide access to all news within the university and in international margins.

Business Ownership

The restaurant will start as a sole proprietorship that will be owned by its founders.

Startup Summary

The founders of the business are Mr. Hungary Wood and Ms Amanda Lorie. Hungary will be focused much on the financial issues and Amanda will address personal issues. The location of the business has been found and they will be able to set up the Coffee shop in time to ensure it turn back a profit by the end of the first five months and be profitable by the first one year. The place has already been equipped as a restaurant and there are plans to come up with almost $ 30,000 in terms of capital plus $ 120,000 in terms of guaranteed loan. The total capital for the Shop will be $ 150,000 (Zimmerer, Scarborough, & Wilson, 2002).

Marketing Plan

The coffee shop is expected to generate sales revenues from $ 567,000 in 2016 to $ 680,000 in 2017. A gross profit margin of 65 per cent for the company will be expected, however, reasonable operational expenses shall be maintained. The net profit will grow from $ 120,000 to $ 160,000 during the period.

Cuban Coffee objectives for its first years of operation are:

• The best selected Coffee Bar within the University
• Turn the profits from its second month in operations
• Be able to maintain a 65 per cent gross profit margin

Key to Success

• A store design that will be attractive to the customers with fast and efficient operations
• Offer training to the employees to make sure it has the best coffee preparation techniques
• Have the best marketing strategies that will aim at building a better base to attract loyal customers. As well, this will enable the company to maximize the sales

Cuban Coffee will offer the customers with the best tasting coffee within the area. This will be easily achieved by its capacity to offer and use highly quality ingredients. In its efforts to maximize sales, the company shall emphasize store layout, the menu listing, and the marketing activities. The shop will as well offer some products such as refreshment beverages, pastries, salads and sandwiches (Karlsson, & Honig, 2009).

Market Segmentation

The marketing activities of the company shall strive to reach the university lecturers, students, young people as well as the rest of the university staff. Consumption of coffee is universal all over differentiated income groups but much depend on the level of education and proximity to the University that will offer access to the target customers of the shop (Abrams, 2014).

Target Market Segment

The business strategies will have to consider some important key areas of business. One of the few focus is the product market. This incorporate the underlying capabilities that are part of implementation of product market strategy among them the level of technologies, market access held by the firm and the processes (Gomes, Yasin, Lisboa, & Small, 2014). They address the business and its key success factors that are within its environment.

The relaxed environment of the Cuban coffee shop shall form the basis of attraction to the target market. Such client’s will vary in ages. However, the location being close to a university indicates that most of the client will be university students and the faculty members. According to market research, this discerning customer base is gravitated toward having the best tasting coffee. As well, most of the University Student considers the coffee shop as best and convenient places where they can study and meet with their peers without paying for any other cover-up costs (Abrams, 2014).

Market Need

The recent consumer development and growth in coffee quality in the US formed the basis for the market need. This coffee shop shall fill the market need by providing unique, exotic and best quality coffee for small indulgencies desired (Abrams, 2014).

Buying Pattern and Competition

According to research that was conducted in year 2012 by Food Services Group, Astemil has established 45 stores that offered snacks and other non-alcoholic beverages with a total sale amounting to $12.3 million. Various establishments offer limited and general services in their restaurants. Coffee shops within the University environs will be the direct competitors. They will include Starbuck, the Other Food Services, and UOB Bookstore among others. Starbuck will be the major competitor given its established operation and marketing policies coupled with its strong financial position.

Despite the company entrenched market position in coffee industry, there are large number of customer who are always in favor of the small coffee shop that has cozy environment and quality coffee at an affordable price (Gomes, Yasin, Lisboa, & Small, 2014). Starbucks is estimated to possess only 32 per cent of the market share. The shop will have to cater for the customer needs in terms of bodies and minds that will assist the shop to grow its market shares within the competitive market (Abrams, 2014).

Global Positioning

Cuban Coffee shop can in the future enter more markets to enhance its market share as well as its competitiveness. This will also enable it to expand its business risks. In the same regard, this strategy will help to gain access to more customers (Deevi, 2012). As a result, it will also be in a position to enhance its sales, hence its profitability.

In the same regard, the company will also invest more and more in research and development (R&D). Specifically, it will allocate more funds to R&D to benefit from this initiative. This will also enable it to counter strategies employed by its competitors with ease. Likewise, the company will also enhance its online presence. The demand for products offered online has been increasing in the recent past. This can be attributed to the fact that people want to shop at their convenience. The current advancements in internet technology are likely to increase the demand even further. The company will capitalize on the same to enhance its competitiveness (Deevi, 2012). Essentially, this will give it the opportunity to attract many customers on not only the local market but also the global arena.

Start up Budget

The startup budget of the shop is estimated at $150,000 where it will be broken up into “one off” costs of $87,000 and other monthly expenses paid in advance of $33,000. Included in the cost is goodwill that is valued at $45,000 and other equipments of $15,000. The budget will be a shown below.

Abrams, R. (2014). Successful Business Plan: Secrets & Strategies ( 6th Ed.). Palo Alto, CA: Planning Shop.

Deevi, S. C. (2012). Repeatability: Build Enduring Businesses for a World of Constant Change. Research-Technology Management, 55(2), 1249-1275.

Gomes, C. F., Yasin, M. M., Lisboa, J. V., & Small, M. H. (2014). Discerning competitive strategy through an assessment of competitive methods. Service Industries Journal , 34 (12), 974-998.

Karlsson, T., & Honig, B. (2009). Judging a business by its cover: An institutional perspective on new ventures and the business plan. Journal of Business Venturing , 24 (1), 27-45.

Zimmerer, T., Scarborough, N. M., & Wilson, D. (2002). Essentials of entrepreneurship and small business management . Upper Saddle River, NJ: Prentice Hall.

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Top 8 Key Considerations While Choosing a Self-Ordering Kiosk for Your Coffee Shop

Top 10 Reasons Why McDonald’s Kiosks Are Popular

The modern coffee shop is not just about serving great coffee; it’s about delivering a seamless and enjoyable experience for every customer. As more coffee shops look for ways to improve efficiency and customer satisfaction, self-ordering kiosks have emerged as a popular solution. These innovative systems allow customers to place orders quickly and accurately, reducing wait times and freeing up staff to focus on crafting the perfect cup. But with so many options available, how do you choose the right self-ordering kiosk for your coffee shop? Let’s explore the essential factors that can guide you in making a well-informed decision.

The Importance of Self-Ordering Kiosks

Self-ordering kiosks have revolutionized the way customers interact with coffee shops. These kiosks provide an intuitive interface where customers can place their orders, customize their drinks, and even pay without needing to interact with staff. This not only speeds up service but also reduces the risk of errors in order-taking. For coffee shop owners, implementing a self-service kiosk can lead to increased efficiency, higher customer satisfaction, and ultimately, better sales.

Key Considerations When Choosing a Self-Ordering Kiosk

1. ease of use.

The primary goal of a self-ordering kiosk is to simplify the ordering process for customers. Therefore, the kiosk should have an easy-to-navigate interface that caters to all age groups. Look for kiosks with large, clear touchscreens, straightforward menus, and easy-to-follow prompts. A user-friendly interface ensures that customers can quickly place their orders without frustration, enhancing their overall experience.

Must Read: How Self-Serve Kiosks Help Combat Labor Shortages in Restaurants

2. Customization Options

Customization is a key feature in coffee shops, where customers often have specific preferences for their drinks. Your self-ordering kiosk should allow for detailed customization of orders, from selecting the type of milk and sweetness level to choosing additional flavors and toppings. This ensures that customers can personalize their orders to their liking , which can significantly improve satisfaction and repeat business.

3. Integration with Existing Systems

Your self-ordering kiosk should seamlessly integrate with your current point-of-sale (POS) system. This integration ensures that orders placed through the kiosk are directly sent to the kitchen or barista station, reducing the risk of errors and speeding up the process. Additionally, integrated systems can help with inventory management, tracking which items are popular and when stock needs to be replenished.

4. Payment Options

A good self-ordering kiosk should support multiple payment methods, including credit/debit cards, mobile payments, and even loyalty programs or gift cards.This versatility enables customers to use their preferred payment method, ensuring a seamless and convenient transaction process.Ensure that the kiosk’s payment system is secure and complies with industry standards to protect customer information.

5. Space and Design

Consider the space available in your coffee shop when choosing a self-service kiosk . The kiosk should fit comfortably within your shop’s layout without obstructing the flow of customers. Additionally, the design of the kiosk should complement the aesthetic of your coffee shop. Sleek, modern designs can enhance the overall look and feel of your establishment, making it more inviting for customers.

6. Durability and Maintenance

Coffee shops can be busy and high-traffic environments, so it’s important to choose a kiosk that is durable and easy to maintain. Look for kiosks made from robust materials that can withstand daily wear and tear. Also, take into account the accessibility of maintenance and support services.Regular maintenance can prevent downtime and ensure that your kiosk continues to function smoothly.

7. Customer Support and Training

Choose a kiosk provider that offers comprehensive customer support and training . Proper training for your staff on how to use and troubleshoot the kiosk can prevent many common issues. Additionally, having access to reliable customer support can quickly resolve any technical problems that may arise, minimizing disruptions to your service.

8. Cost and Return on Investment (ROI)

Understanding the cost and potential ROI of a self-ordering kiosk is crucial. While the initial investment may be significant, consider the long-term benefits such as increased order accuracy, faster service, and improved customer satisfaction. Calculate how the kiosk can impact your sales and weigh this against the upfront cost and ongoing maintenance fees. Some providers offer leasing options or payment plans, which can make the investment more manageable.

Must Read: How Much Revenue Will Kiosks Generate for Your Restaurant?

Benefits of Self-Ordering Kiosks for Coffee Shops

Self-ordering kiosks offer numerous benefits that can transform your coffee shop’s operations and customer experience. Here are some key advantages:

• Reduced Wait Times: Customers can place orders quickly and efficiently , reducing lines and wait times.
• Increased Order Accuracy: Automated order-taking minimizes human errors, ensuring that customers receive exactly what they ordered.
• Enhanced Customer Experience: With the ability to customize their orders and pay conveniently, customers enjoy a smoother, more personalized experience.
• Operational Efficiency: Staff can focus on preparing orders and engaging with customers, rather than taking orders, leading to more efficient operations.
• Data Insights: Self-ordering kiosks offer valuable information on customer preferences and buying patterns, aiding in making well-informed business decisions.

Investing in a self-ordering kiosk for your coffee shop can significantly improve both operational efficiency and customer satisfaction. By considering factors such as ease of use, customization options, integration with existing systems, payment flexibility, space and design, durability, customer support, and cost, you can choose the perfect kiosk for your needs. As coffee shop owners continue to seek ways to enhance the customer experience and streamline operations, self-ordering kiosks stand out as a valuable addition to any coffee shop.

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Smart Cup Coffee Shop Business Plan Report

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Executive Summary

Coffee shop industry description, business description, opportunities, production plan, marketing plan, financial plan, reference list.

Due to minimal barriers to entry in the Canadian coffee shop industry, the ‘Smart Cup Coffee Shop’ would start its operation in Sydney, Nova Scotia, Canada with relatively effortlessness and with minimum establishment costs by choosing rental premises at the south gate of Cape Breton University; however, the company will start with leasing machinery, accessories, decorating, furniture and fittings.

Considering the students, teachers and staff of the educational institution as target customers, the company will further open new branches besides the other Universities and colleges of Sydney, Nova Scotia, Canada.

The ‘Smart Cup Coffee Shop’ would be operated for from 9 am to 9 pm, considering such operation, it has estimated that full running Coffee Shop would require for two (3) full-time managerial employees to look after marketing, administration, nutrition and dietetics; moreover, it should require one (1) full-time accountant and 25 part-time service employees.

There are three (3) existing coffee parlors in the campus of the Cape Breton University; at the same time, most of the part time and full-time employees would be appointed from the students of the Cape Breton University, such recruitment policy would provide an enhanced edges for the company to triumph over the rivals.

The Cape Breton University campus students, teachers, staffs and hostel borders are the largest demographic for ‘Smart Cup Coffee Shop’; however, this company will be the best performer in the campus business as the entrepreneurs are capable of understanding what the desire of the customers in Sydney, Nova Scotia, Canada.

The ‘Smart Cup Coffee Shop’ will incorporate a variety of promotional strategies at its operation includes daily deals, night refreshment, re-usable mugs, Smart bucks, ruffle draw, punch cards, festoon, placard, billboard social media, and online advertising, targeting the students and communities of Sydney, Nova Scotia, Canada.

The pricing policy of the ‘Smart Cup Coffee Shop’ will be similar to the standard price that the competitors regularly offer, but would allow 3% to 7% discount following different promotions round the year. The entrepreneurs will supply a sound equity, for the rest part of investment will be borrowed from commercial bank; however, it would like to reach at break-even point by 4 th month’s operation; moreover, it will be capable of returning borrowed sum within 5 years.

The proposed “Smart Cup Coffee Shop” would be located in Sydney, Nova Scotia, Canada; consequently, the industry analysis needed to keep keen eyes on the Canadian Coffee Shop Industry. The IBISWorld (2014, p.1) illustrated in the market research that the Australian coffee shop industry has a sales volume of $ 4 billion with a steady growth of 5.3 % per annum according to the statistics of 2014, there are about 85,000 people are Employed in this industry.

The Canadian and the US coffee market attributes represent the similar consumption dynamics; only difference is that the juice and bottling beverage and water consumption in the US-market is higher while the Canadian market is 8% higher for coffee consumption; high cost for raw materials and the rising demand for coffee shops indicate the flavorless of the Canadian people for coffee

According to the census of 2011, Sydney, Nova Scotia has 108,724 and the demography illustrates that the population of this region is gradually decreasing, although the Coffee Shops industry analysis represent a trend of this region illustrates a rising demand for coffee drinks.

The coffee shop and bakery industry characteristics that the profound and vibrant coffee culture in this region has demonstrated that there were no impact in this industry due to the global financial crisis during the past half-decade and the market attributes indicates easy entry scope for newcomers and hindrance free exit. Tim Hortons and Starbucks are the most prominent competitors in the Canadian market, rather than the giants, there are around few thousands of coffee shops and parlors that do not influence each other.

The Coffee Association of Canada (2012, p.1) mentioned that coffee industry of Canada has divided into few sectors, such as, Grocery and Retail sector, Foodservice, Office Coffee Sector; however, the industry has an annual turnover around $ 5 billion with employment opportunity of one million people.

Smart Cup Coffee Shop has planned to enter in the Retail sector of the industry in Sydney, Nova Scotia, Canada where independent coffee shop has no considerable competition in the local areas. Significant competition exists in the coffee shop chain shops like Tim Hortons and Starbucks while ‘Smart Cup Coffee Shop’ would act as an independent coffee shop; therefore, the proposed company enjoys competitive edge at its locality.

Table 1: Short business description. Source: Self-generated

Management, Advisor and Staffing

The entrepreneurs will operate this business together; therefore, they would like to focus on the simple organizational structure to oversee everything from the products to human resource. One of the owners “Jill Lee” was a house-wife and she had completed graduation in September 2012; however, she will open an outlet with limited space known as ‘Smart Cup Coffee Shop’.

Jill Lee will control this Coffee Shop Segment as a CEO and manager; on the other hand, another owner “Sid” have completed graduation in Business Administration and he will participate in the business as a Chairman and a manager of Bakery segment.

This coffee shop will have four units, and more than 10 employees for different tasks; however, the number of employees will increase considering business condition and sales forecast; in addition, but they will fix the wage range of $7 to $14 per hour to make various types of products. The next chart shows the organizational structure of the Smart Cup Coffee Shop:

Two managers will be responsible to oversee the key operating system of the business and the performance of the employees in different sectors; in addition, the managers will provide training to the staff to develop skills and efficiency level of the workforce; however, the owners will not recruit any advisor at this stage.

The entrepreneurs have already decided to start business in a convenient place in Sydney, Nova Scotia, Canada; however, they will establish this coffee shop in a high-populated place, for instance, surrounded place of Cape Breton University, in order to get more customer traffic. The owners will offer discounts for the loyal customers and students, create a website for the company, decorate coffee shop with creative ideas and put online games for the children, and prepare a multimedia marketing strategy to attract target customers.

At the same time, the entrepreneurs of Smart Cup Coffee Shop will introduce modern technology, fast and well-organized operating process, online payment facility and home delivery system; so, the number of loyal customers will increase rapidly. In the era of globalization, this shop needs to compete with local and foreign companies for which it has to implement strategic plan to become successful in the high competitive market; however, this company will expand in the local market at the initial stage.

The ‘Smart Cup Coffee Shop’ has aimed to manage and administer the business operations in most cost effective approach; therefore, the detailed production plan has designed as follows:

Facilities and assets

The facilities would be developed as a medium sized coffee shop with five executive cabins, three dining halls, five washrooms, and three kitchens on the ground floor to second floor where all the cabins and dining halls would be integrated under central air-condition system.

Most of the tools and equipment for the coffee shop and bakery would be available for the facilities of ‘Smart Cup Coffee Shop’ and the facilities would be developed with coffee machines, water boilers, drink dispensers, fountains, countertop, wall mounted serve over, counters filter, and so on. The coffee shop premises would be rented, but all the tools and equipment would be purchased from most prestigious suppliers.

The company would be very attentive to uphold the quality of coffee that would be served at ‘Smart Cup Coffee Shop’, however, it will use Dunkin Donuts coffee beans, which will import from the Ethiopian outlets of Wal-Mart. There would be no dilemmas for transportation of the imported goods of the company as the company has settled to establish the coffee shop at Cape Breton University, Sydney, Nova Scotia, Canada that is an ancient city situated on Cape Breton Island’s east coast and founded during the British colonial rule.

The selected location of the ‘Smart Cup Coffee Shop’ has connected with Highway 125 that reaches to the Highway105; at the same time, the Trunk 4 had connected the coffee shop premises to the way of Sydney River as well as Glace Bay; so, it will enjoy an enhanced opportunity for transportation, customer attraction and further extension.

The entrepreneurs of the ‘Smart Cup Coffee Shop’ have settled their mindset to open new outlets in the near future all the way through Nova Scotia; here, the good access to transportation along with the scope of business spread out facilities will inspire the management to open more stores in the surrounding cities in near future.

The entrepreneurs of this company will work very solid to make out the most suitable place to set up the coffee shop; during the selection process of the location, they keep attention to some significant factors such as the market demand, scope of expansion, trade risk, buyer behavior, purchasing power of people of that location, target customers, and social and cultural factors.

They also acknowledge several prospective educational institutions of where the ‘Smart Cup Coffee Shop’ would further extend its facilities and looking for suitable premises near the Canadian College of Acupuncture, McKenzie College, Traditional Chinese Medicine College, Maritime Environmental Training Institute (METI), Island Career Academy, and Nova Scotia Community College includes Center for Distance Education.

Materials and supplies

The ‘Smart Cup Coffee Shop’ will emphasis to maintaining the quality of its products and will use the Dunkin Donuts coffee beans imported from the Ethiopian outlets Wal-Mart; the company will contact with several reliable farmers in Kenya for its coffee supplies those could be alternative source of supplies to ensure uninterrupted supply of coffee.

In Sydney, Nova Scotia, the company would have enough warehouse facilities with a storage capacity of 5000 M tons where the company could easily preserve so many supplies like beverages and beverage mixes, bottled water, hot chocolate, green” supplies, coffee cup sleeves, coffee stirrers and coffee straws, dispenser napkins, disposable bags, disposable cups and lids, plastic flatware, utensils and others.

At the same time, the company will ensure its compliance with the local trade law, labor law, and regulation of the local government of Sydney, Nova Scotia with special care to the shipping terms, customs-regulations, along with ecological issues.

At the opening, ‘Smart Cup Coffee Shop’ will start its journey with limited staff; it should require three (3) full-time managerial employees to look after marketing, administration, nutrition and dietetics; it needs three (3) assistants and one (2) full-time accountant and 25 part-time employees; however, total number of employees will be thirty-three (33).

The number of employees is not fixed; it could be increased depending on the requirement of the coffee shop and business expansion in near future; the company will distribute the staff according to requirements of different departments. The company always conduct training program for its employees in order to improve the existing skills, and experience of the employees; the management will decide on the area of training accordingly with the objective to keep the employees familiar with the mission and vision of the company.

During the business operation, ‘Smart Cup Coffee Shop’ would ensure its compliance with local trade law, labor law, and regulation of the local government of the Sydney, Nova Scotia with special care to the shipping terms, customs-regulations, along with ecological issues; moreover, the company will conform industry standards for production including environmental, health and safety measures, and business law.

Potential Market and Target Customers

As the company has already rented suitable premises at the south gate of the Cape Breton University, it would essentially focus on the students of different ages and ethnicity would be the major target customer; at the same time, it would also focus on teachers, staff, local people, tourists, travelers, and so on. According to the marketing scholars, the middle aged and elderly people besides of youngsters and children have the enhanced priority as customer of coffee shop.

According to census of 2011, Nova Scotia is the 7 th largest province for population density in Canada with an approximate population of 921,727; there are 17.2 people per square kilometer where about 60% of them live in the rural area of the province.

The demographic composition illustrates that the population of 2011 was 7.3% less than a decade back, 21% of the populace was under the age group of twenty, and 16.6% people were over 65 years; in Sydney, there were 31,979 married families under common law structure; in 2011, migration rate was very low while 98.7% population were Canadian citizens. The demographic attributes would assist to harmonize a suitable marketing plan and settling on the target customers for the ‘Smart Cup Coffee Shop’.

Competition

Tim Hortons and Starbucks are the most prominent competitors in the Canadian coffee shop market, rather than the giants, there are around few thousands of coffee shops like Ugly Mug Cafe & Emporium, Wentworth Perk Coffee House, Fiddle Café, Bean Bank Café & Catering and so on.

The Tim Hortons and Starbucks occupy the major market shares though there are some other indirect competitions with the food and beverage shops, but the market attributes illustrates that there are around few thousands of coffee shops and parlors that do not affect each other.

The ‘Smart Cup Coffee Shop’ has aimed to introduce the latest technology available in the market; at the same time, the company would not forget to integrate the latest shifting dynamics of the coffee shop industry that is the establishment of ICT infrastructures for automation of the production, marketing, and communication including order management and accounting.

Socio-political environment

The owners of ‘Smart Cup Coffee Shop’ have confirmed that the company will introduce a casual corporate culture with friendly working environment where the employees will give the highest effort to attain the goals of the company; the management will closely scrutinize recruitment policy and there would be no racial issues; however, talent and skilled candidate will get privilege without discrimination based on color race or ethnicity.

Problems and opportunities

The company would go through some dilemmas for inadequate capital, impact followed by the global financial crisis, compliance with the governmental regulations, high staff turnover, and reduction of purchasing power of the customers; in contrast, the company will enjoy opportunities of easy entrance in the market, tax holidays increasing demand of coffee shops, and political stability.

As a new entry in the market of Sydney, Nova Scotia, ‘Smart Cup Coffee Shop’ would strongly emphasis on the pricing strategy and promotional strategy; furthermore, it will consider two strategies as tools to bring success in the operation; in addition, the action plan below has presented the strategies broadly:

Action plan

The prime product list of the company will integrate with coffee, tea, beverage, and bakery items; in these four categories, there would be 65 varieties of product available in the ‘Smart Cup Coffee Shop’; every product would be unique for its flavor and taste; therefore, the health conscious people would consider coffee shop as a reliable dining.

Raw materials of all the products would be collected from various resources; however, without any preservative, the green concept, organic foods, high quality products will assist this business to attract customers; this company will successfully accomplish of the branding, and lucrative packaging will directly generate benchmarks to guarantee fresh food.

Pricing Strategy

Smart Cup Coffee Shop will consider competitive pricing policy; in addition, product price will fix taking into account the market condition and survey reports; most of the coffee shop in this place offer reasonable price, as students are the main target customers. The pricing policy will depend on few factors, such as, production costs, sales volume, and other issues; however, the next table provides more information about pricing policy:

Table 2: Pricing structure of Smart Cup Coffee Shop. Source: Self generated

Place/Distribution Strategy

The ‘Smart Cup Coffee Shop’ will establish only one outlet in Sydney, Nova Scotia that would offer breakfast, coffee, fast food and bakery items for which the manufacturing procedure and the preparation of foods would be completed in the kitchen of the company and would be served at the dining halls of the coffee shop. The other distribution of the items would be organized from the online ordering and would be distributed by the sales representatives to the customers’ premises.

Promotional Strategy

The marketing team of the ‘Smart Cup Coffee Shop’ will introduce IMC campaign with the direct supervision of management with the aim to build up brand awareness; such advertising drive will generate awareness and attraction of the local inhabitants; the company will introduce promotional drives by offering special discount, instant gift, lucky coupon, buy-one-get-one and so on.

Important Assumption

Table 3: Start-up Requirements. Source: Self generated

Projected Income Statement for the next 3 years

Table 4: Projected Income Statement for three years. Source: Self generated

Pro forma Balance Sheet for the next 3 years

Table 5: Projected Balance Sheet. Source: Self generated

Projected Cash flow for the next 3 years

Table 6: Projected Cash Flow. Source: Self-generated

Ratio Analysis

Table 7: Ratio Analysis for Smart Cup Coffee Shop. Source: Self-generated

Pro forma Profit and Loss Account for 12 months

Table 3: Projected Income Statement for first 12 months. Source: Self generated.

Break-even Analysis

The break-even analysis of a business entry represents the particular stage of the operation where there is no loss or profit; the business is running without profit or loss indicates that the sales revenue and all spending are equal; sales revenue higher than the break-even point would indicate profit and the sales revenue less than break-even point would indicate loss.

From the above break-even analysis of ‘Smart Cup Coffee Shop’ illustrates that the company will reach at its break-even point within 3 months of operation.

Coffee Association of Canada. (2012). The Role of the Coffee Sector in Canada. Web.

IBISWorld. (2014). Cafes and Coffee Shops in Australia: Market Research Report . Web.

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Restaurants, food and drink, restaurants, food and drink | oud coffee & cafe hits a chord with customers looking for culture, community and a chance to support a palestinian-owned business.

People enter Oud Coffee & Cafe, located at 714 N. Wells Street in Chicago, on July 26, 2024. The owners are of Palestinian heritage and they pay tribute to that culture through food and drinks. (Terrence Antonio James/Chicago Tribune)

Oud Coffee & Cafe, 714 N. Wells Street in Chicago, is bustling on Friday, July 26, 2024. The owners are of Palestinian heritage and they pay tribute to that culture through food and drinks. (Terrence Antonio James/Chicago Tribune)

The Dubai chocolate knafeh at Oud Coffee & Cafe. (Terrence Antonio James/Chicago Tribune)

The Oud latte at Oud Coffee & Cafe. (Terrence Antonio James/Chicago Tribune)

The baklava at Oud Coffee & Cafe, 714 N. Wells Street in Chicago, is seen on Friday, July 26, 2024. The owners are of Palestinian heritage and they pay tribute to that culture through food and drinks. (Terrence Antonio James/Chicago Tribune)

The mint lemonade at Oud Coffee & Cafe, 714 N. Wells Street in Chicago, is seen on Friday, July 26, 2024. The owners are of Palestinian heritage and they pay tribute to that culture through food and drinks. (Terrence Antonio James/Chicago Tribune)

An oud (a stringed instrument) hangs on a wall at Oud Coffee & Cafe, 714 N. Wells Street in Chicago, on Friday, July 26, 2024. The owners are of Palestinian heritage and they pay tribute to that culture through food and drinks. (Terrence Antonio James/Chicago Tribune)

The menu at Oud Coffee & Cafe, 714 N. Wells Street in Chicago, is seen on Friday, July 26, 2024. The owners are of Palestinian heritage and they pay tribute to that culture through food and drinks. (Terrence Antonio James/Chicago Tribune)

A woman waits on an order at Oud Coffee & Cafe, located at 714 N. Wells Street in Chicago, on July 26, 2024. (Terrence Antonio James/Chicago Tribune)

The iced honey lavender latte at Oud Coffee & Cafe, 714 N. Wells Street in Chicago, is seen on Friday, July 26, 2024. The owners are of Palestinian heritage and they pay tribute to that culture through food and drinks. (Terrence Antonio James/Chicago Tribune)

The exterior of Oud Coffee & Cafe, 714 N. Wells Street in Chicago, is seen on Friday, July 26, 2024. The owners are of Palestinian heritage and they pay tribute to that culture through food and drinks. (Terrence Antonio James/Chicago Tribune)

Co-owners Feras Ghassan and Saif Alrafati had a vision when opening Oud Coffee & Cafe: The space would exude old-school charm but be a little eccentric, it would be a place where “somebody could come and study, but also embrace the culture,” and the drinks would taste like home.

“We’re trying to go for a more traditional style coffee shop, but the infusion of flavors is like when you would go to your parents’ house and they’d put cardamom in your coffee,” Alrafati said.

The childhood best friends’ new River North venture has managed in a very short period of time to cultivate a community among people craving a place to connect consciously. Since the June 30 opening, many customers have been arriving at Oud’s bright white storefront specifically to support a Palestinian-owned business.

“We’re definitely going to embrace that,” said Ghassan, who along with Alrafati and their other business partner, Shadee Rafati, are first-generation Palestinian American. “We didn’t intend to target (those customers). It kind of just blew up on social media, but we are proud to showcase our culture and heritage.”

Ghassan said the decision to open wasn’t related to what’s going on in Gaza, which is facing famine and collapse as it endures Israel’s ongoing military offensive. But the momentum of consumers showing solidarity is not lost on him or Alrafati, who both expressed being heartbroken for their homeland, but proud that Oud keeps Palestinians close.

Oud, Arabic for “wood,” has a couple of different meanings in Middle Eastern and South Asian cultures. The word is used for a pear-shaped string instrument, as well as a fragrance extracted from wood, used for its musky, earthy scent.

Oud is in the 1,300-square-foot former Fabcakes building and the face-lift is hard to miss. A fresh coat of paint and a few olive branch decals in the windows open into a narrow seating area adorned with hanging plants and wall art depicting afternoons on Palestinian terraces. Ghassan said moving into a space already built to be a cafe meant they could open sooner and focus on their craft.

A proper ode to the diaspora, the coffee shop’s namesake specialty — the Oud latte ($5.75 for a 12-ounce) — blends the flavors of pistachio, cardamom pods and fresh mint leaves.

Another drink called tamir hindi ($4.89) — one of many fruit-based beverages made in Palestinian homes — features soaked sweet-sour tamarind, rose water, and lemon juice. There’s also a more familiar mint lemonade with a honeydew-colored hue on the menu ($6.89) .

“It’s something you’d just grow up having — something that your parents would make in the blender in the kitchen,” Alrafati said.

“It’s a common refreshment; anytime we went back and visited Palestine we always used to drink it,” Ghassan added.

Oud works with multiple local Palestinian bakers to fill the pastry case with a breakfast pie found in Syria, Lebanon and Jordan called manakeesh , a yeast flatbread made with olive oil and spread with zaatar or spinach ($4.50). They also serve danishes, brownies, scones and kunafa rolls.

One of the hottest items, however, is a take on a viral chocolate bar that took off on social media from a dessert spot called The Fix in Dubai. Reels and TikToks from popular food influencers in the United Arab Emirates biting into an extremely pricey kunafe-inspired chocolate bar gained attention everywhere, including Chicago. Oud’s version at $14 is also filled with pistachio butter and crispy toasted shredded phyllo bits.

Most of the inspiration for Oud comes from Ghassan’s father, who has been a coffee importer for more than 15 years. He’s originally from a small Palestinian village called Ein Siniya, not far north of Ramallah, in a valley surrounded by olive trees.

Ein Siniya has been under Israeli occupation since 1967, when the majority of the population fled, including Ghassan’s father, who moved to Kuwait. He ultimately migrated to the United States.

Ghassan’s father, whose first name is also Ghassan, goes by an American nickname, Jason. He’s owned multiple businesses over the last 40 years, including Lake Point Market in Chicago’s Lake Point Tower. His family also dreamed up Pistachio Sweets in Morton Grove — a popular dessert and coffee destination with house-made kunafa and chocolate-covered crepes — before selling it to different owners.

Each venture had a sweet spot for coffee. Ghassan’s father owns Montiva Coffee, which imports coffee from Guatemala and sources it to 400 businesses across Chicagoland and the U.S., which is why there’s no middleman between the 100% Arabica coffee beans and the lattes baristas are whipping up at Oud.

Ghassan’s father goes to Guatemala’s Antigua region each harvest season with his import partners. They select and buy green coffee beans to bring back to the States, where they roast them before they’re served in cafes such as Oud.

“My dad always shows me videos and pictures of him up in the mountains. It’s just surreal. The coffee that grows up there is literally above the clouds,” Ghassan said. “The elevation is so high and the soil is so rich (you can taste it) in the coffee itself.”

Ghassan’s coffee order is the Oud latte, which he prefers hot. Alrafati loves the honey lavender.

Shortly after the lunchtime rush on a recent Tuesday, before the lull of the early afternoon, customers trickled in every few minutes. Some scoured the space with their laptops to find a table while others waited in line to grab something to go.

Many of them held up their drinks in front of the shop to snap a picture of the sleeve with the Oud instrument drawn sitting inside a coffee cup with a Palestinian keffiyeh design etched between.

Alrafati said he sees Oud tagged in a lot of those photos on Instagram with a caption that says something along the lines of: “Support Palestinian-owned businesses!” or “Boycott Starbucks.”

Haseeb Hussain, a regular at Oud, does that often.

“On top of being an alternative to Goddess and the Baker across the street, or Starbucks, it was absolutely what people of our demographic — young, affluent Muslims who are in the know of what to avoid — were looking for,” said Hussain, a consumer attorney in Chicago. “A third-party space where we can give our money to our people instead of to people that will more than happily fund the genocide of our people.”

A movement to boycott companies such as Starbucks has fueled the flurry of customers at Oud and other Palestinian-owned businesses around the country. Many consumers have vowed to forgo the coffee giant for its legal dispute with Starbucks Workers United, a union representing some employees, over the union’s pro-Palestinian social media posts. Starbucks official statements have expressed sympathy for innocent victims in both Gaza and Israel.

For customers like Sarah Park, who lives down the street from Oud, the store’s Palestinian roots weren’t the initial draw. But it is a reason to keep coming back.

“I used to come when it was still Fabcakes and I was sad when it closed down, but then this came in and I was like ‘guess I’ll give it a try,’” said Park, who is Korean. “I really liked it. My friend who’s visiting was looking for cafes to work in so I also told her ‘You should go to (Oud), it’s Palestinian-owned.’ That’s definitely a plus to it, and everything they make has been very good.”

Fatima Akilo, a Northwestern University medical student from Houston who moved to Chicago in July, said she wasn’t sure what to expect from the city’s food and coffee scene. She came to Oud with her friend, having never heard of it before.

“I wasn’t really sure if it would be super accessible to go out and find ethnic — for lack of a better term — places and Palestinian-owned, immigrant businesses at that, but it’s right here in River North,” said Akilo, who is Nigerian and Indian. “I will definitely come back.”

Save for a few customers such as Firas Ahmed, Oud’s Instagram account is how most people found out about the spot after it caught the eye of several Chicago-area food bloggers.

Ahmed, who came to Oud with Hussain to grab a coffee and spend an hour or two co-working, said he’s not on social media, but heard whispers of the coffee shop in his friend circle.

“The moment we’re in now, it just feels nice to have all the same experiences you would have at any other coffee shop, but to have it at a place where you’re supporting people and communities that really need the help and need to feel valued, I think that’s what makes us want to come back,” Ahmed said.

Ghassan and Alrafati pointed out the abundance of Middle Eastern, or Muslim-owned coffee shops in the suburbs — namely on Roosevelt Road in Lombard or 87th Street and Harlem Avenue in Bridgeview — that are serving similar flavors and drawing similar crowds looking for Muslim-owned places.

But Oud’s location in the city makes it accessible to people who wouldn’t typically find themselves in those suburban nooks.

“Even with our clientele you’ll see a big mix of everything — it’s not just Muslims coming in,” Alrafati said. “We actually serve a good cup of coffee so people have been coming in on their morning commute or after because our hours are really different from most coffee shops in the city.”

Oud is open seven days a week from 7 a.m. to 7 p.m., whereas most coffee shops in Chicago close around 4 p.m. It’s one of the reasons Alrafati said they aren’t worried about sustaining Oud’s popularity, even as some places that go viral can struggle after the initial hype dies down.

“As business owners we want to have a presence. The other day I asked a customer who walked out, ‘how was everything?’ and she said ‘It was OK,” and I stopped them and asked her why it was just OK,” Ghassan said. “She said the coffee was good — a little milky, ‘but I love the place and will be back.’”

Ghassan told her he’d be right back. “Hold on one second — I’m one of the owners and I want to personally make your coffee again.”

When he returned with her vanilla bean latte with oat milk, she said the difference was night and day.

Alrafati said nothing will ever satisfy every palate, but it’s important to make sure baristas are trained to make each cup how it’s meant to taste.

It is evident this is a passion project, especially for Ghassan, whose main source of income is a corporate job he asks not to speak much of so he can keep his two worlds separate.

Ghassan likes the idea of complete strangers walking into Oud and entering this collective space of culture and comfort. Maybe they came to support Gaza, or maybe it was simply to sink into a good cup of coffee. Maybe it’s for the viral Dubai chocolate, maybe the stunning white exterior was just too charming to walk past. His only hope is that they stay awhile.

“We want it to be like you’re at home.”

Oud Coffee & Cafe, 714 N. Wells St. Chicago, (312) 763-6168, instagram.com/oudcoffee.cafe

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