Coffee Shop Business Plan in India – A Complete Guide

Indians truly love sipping coffee. Be it to cool down from the stress or just a part of the coffee-drinking habit. The coffee industry in India is billions of rupees, and the market size is increasing. Drinks are in high demand, and India is increasingly embracing the coffee shop or cafe model as a viable option for opening a food business. According to one research by TechSci Research analysis, in 2021, the coffee shop industry will witness a CAGR of over 11%.

Statista projects that by the end of 2022, the coffee business will have generated more than $874 million in sales. The coffee business is only expected to expand thanks to a 3.07% CAGR. Moreover, 73% of the country of India’s overall coffee consumption is accounted for by the urban market. As a result, coffee and coffee shops have grown into separate businesses that have begun to contribute to the nation’s economic development.

There are different brands in India, and new coffee shop business ideas are mushrooming. In fact, throughout India, you will find various brands of coffee shops, which induce the current generation to go ahead with opening a coffee shop business plan.

Opening a Coffee shop in India (Step-by-Step Guide)

Need for a coffee shop

Before you go ahead with the coffee shop business plan, it is vital to understand its needs. People visit coffee shops for many reasons other than only to consume coffee. Additionally, people go to coffee shops to connect, read, or write in a calm, relaxing setting. Additionally, they favor coffee shops for other gatherings like game nights and meetings. India’s most exciting coffee shop business plan is to allow people to gather and watch live sporting events.

This article presents you with an essential guide on pushing ahead with your coffee shop business ideas.

One of the critical aspects of the coffee shop business is you will require a strong business plan to launch your coffee shop venture. It will make it possible for your brand to flourish and expand. While you make a business plan choose the type of operation that will work the best for you. Below are some points to consider-

Do coffee research

When it comes to coffee, it is quite a unique beverage with a wide range of flavors. With so many various sorts, roasts, and mixes of coffee available, you must educate yourself on them to develop a unique menu for your café. You can accomplish this by studying the coffee industry or undergoing formal instruction. When you prepare the coffee shop menu, try to include new coffee types to offer something new to your customers.

Also, read – How restaurant consulting can help grow your food business

Look for the Location

Once you have planned to establish the coffee business, look for a location to bring more business to your shop. There are certain things you need to consider when looking for the location –

Better Visibility: Make sure the location has good visibility and is in a busy market or shopping area with constant foot traffic. Also, ensure that there are a few coffee shops already established that may affect your business.

Accessibility: In addition to being visible, the location should also be easy for the public to reach, such as a location with plenty of parking.

Customers: You need to figure out who you want to sell to and where they are, then choose a location that works for them. If your target audience is college students, check if the area has colleges and young crowds.

Affordable: You should also consider rent before choosing a location because it must be affordable. Look at the trends in lease fluctuation over the last three years.

Do some market analysis

Most leading at-home brewing coffee brands primarily focus on the coffee industry. However, a sizable portion of the outdoor café business is taken up by local establishments. Coffee shops deliberately locate themselves in buildings such as schools, hospitals, and businesses to maximize visibility. It is the most exciting part of opening a coffee shop business plan.

You may find these crucial elements and create your business plan by conducting an industry study. For instance, there isn’t a coffee shop in your area. That represents a possible demand gap that your company can address.

Ambiance

One major thing that attracts customers to your coffee shop is the ambiance. A coffee shop outside is the only way to get customers in before other factors like food quality and customer service come into play. Therefore, it is essential to spend money on upscale yet comfortable furniture, eye-catching crockery, and other interior design elements for the café.

Determining the Cost

How much is it to open a coffee shop? It is the most vital question when drafting a business plan. Once you know how much it would cost to open a coffee shop in a specific location, you can consider further steps. When considering the cost, you must also work on visibility, competition, and other business areas.

Also, read – 25 Food Business Ideas in India [With Low Investment]

Curate the menu exclusively

Create the menu for your coffee business and determine what new things you want to add before officially launching the shop. Coffee of all varieties, from Cappuccinos to Mochas, should be offered on a coffee shop’s menu.

It’s possible that serving drinks alone won’t generate much money. You must therefore provide food things as well. Add menus including sandwiches, baked goods, and fast foods like burgers that must be cooked at the last stage. You can even go for some heavy foods to add more than usual.

Play around with your coffee shop menu as well. By doing this, you will add value to your coffee shop business.

Examining internal and external factors

One of the vital SWOT analysis consists of the internal and external variables. An analysis of a plan’s strengths, weaknesses, opportunities, and threats is crucial when you plan to go ahead with the coffee shop business. Understanding the strength will make it simpler to maintain and use to sell the company.

Threats and Opportunities fall under external forces. After the coffee business starts turning a profit, you can go for the opportunity analysis. Once you open the door of your coffee shop, it is simple to analyze the prospects that present themselves. Evaluate threats once the company begins to make a profit in the market.

Invest in the right technology

The significance of technology cannot be understated, even if you are running a coffee shop business. Purchasing a reliable coffee shop system is essential when opening a business, as these systems play a crucial role. Some of the methods you need to invest in are-

• Quick billing: Investing in the right POS system for your coffee business can handle billing procedures seamlessly. You must be able to take orders fast because the coffee shop format is comparable to that of quick service and casual dining restaurants.
• Stock and Inventory Management: The POS system should make it simple to keep track of your stock levels. You would need to control the stock circulation effectively if you minimized the cooking at the outlet.
• Integrating Exciting Offers: Integration of the offer meal combinations and specials is a great way to draw customers. You should be able to make personalized offers using the POS. rapidly and effectively.

Hiring and Training Employees

You can expect success if you hire the right people for your business. When you are hiring employees, do take time to train them. You must hire the correct individuals for the right jobs to provide exceptional customer service, which promotes customer loyalty. You’ll need to employ the following:

· Head Chefs

· Manager

· Accountant

· Marketers

· Servers

Eligibility Criteria and Documents for Loan

To open a coffee shop business, you need a loan. Contacting a leading finance company will help you get a business loan with the lowest interest on EMI. However, there are eligibility criteria and documents required mentioned below-

Look for the right Finance and get Documents ready

Eligibility Criteria-

· Should not be listed in the blacklist of SBA Finance

· The location shouldn’t be in a negative zone

· NGOs and charitable trusts are eligible for business loans.

Documents Required

There are some documents required to get the SBA loan. These are-

1. Business registration copy including:

· Trade License

· TIN

· VAT Registration

· Gumastadhara

· Business Registration Certificate

· GST Filing

2. Aadhar card

3. PAN card

4. Bank statements for the last 12 months

5. Company PAN card copy

6. Copy of the Partnership deed, if applicable

Also, read – What licenses are needed to start a restaurant in India

How to Apply for a business loan?

· Submit the filled application form with complete loan details

· Upload all mentioned documents for verification

· Once verified, the team will sanction the loan and disburse it into your account in 3-4 business days.

Right Marketing

A business can only be successful if the right marketing is done. You need to invest in the right team of marketers who can ensure your coffee business gets better traffic. You must ensure you execute your

marketing strategy flawlessly across all channels, from digital ones like developing a visually appealing website and using social media to traditional ones like handing out brochures, running ads in print media, and offering discounts, including coupons.

Conclusion

When you go ahead with the coffee shop business plan in India, you must remember that a brand requires time to make a mark in the market. Fasten up the process with the aid of the appropriate marketing outlets. In India, coffee is regarded as the top business area. Premium coffee and upscale cafes will continue to be in demand. Since Indians love sipping coffee, it makes for the ideal market for coffee businesses.