Coffee shops are one of the most popular restaurant types — and for good reason. They're social meeting places, mobile offices, and just convenient places to get your caffeine fix or a bite. But if you've dreamed of opening your own coffee shop, you might be wondering how you stand out, or what equipment to invest in. Luckily, our guide includes a set of actionable tips to help you start and run a successful coffee shop, from location planning to menu development to marketing.
1. Develop a clear coffee shop business plan
Opening a restaurant or coffee shop is exciting, but it can also be overwhelming. As a small business owner, you're responsible for managing many moving parts, from real estate to business plans to staffing and beyond. A great place to start? Crafting a well-written business plan.
The goal here is to provide investors with your roadmap for generating profit. So, your coffee shop business plan should include:
Executive summary: Provide a brief overview of your business, including your mission statement, core values, and key differentiators.
Company overview: Outline your coffee shop's concept in more detail, including your hours, ambiance, and menu.
Industry analysis: Describe the neighborhood's economy, demographic makeup, and projected growth, and highlight your pricing model and signature menu offerings.
Operational plan: Detail your plan for staffing, supplier relationships, and daily workflows.
Marketing plan: Articulate how you will reach and retain customers through social media, advertising, and community events.
Financial analysis: Estimate startup costs, revenue forecasts, profit margins, and break-even analysis.
Coffee shop menu: Include a sample menu with signature drinks or dishes to show how you'll differentiate yourself from competitors.
Read our step-by-step guide for writing your coffee shop business plan and use our template as a reference.
2. Choose the right location
Finding the perfect location might be the most important factor when opening a new coffee shop. You should understand the local market and customer needs to ensure you have a steady business. Take the time to visit different neighborhoods and note peak hours to make sure your location is the right fit for your business. Here's what you'll want to consider:
Foot traffic: Focus on areas with high pedestrian activity with steady customer flow, including business districts, universities, or residential neighborhoods.
Local demand: Research the community you want to move into to understand the customers' needs. Are they more inclined toward grab-and-go service, a cozy sit-down space, or a specialty coffee experience?
Competitor presence: Avoid areas with a high concentration of cafés. While some competition is healthy, you don't want to be the third or fourth coffee shop on the block.
Lease terms: Negotiate favorable lease terms, including rent, utilities, and maintenance costs, to ensure long-term profitability.
3. Invest in the right equipment and setup
Your coffee beans come first. But after that, you'll need to invest in the right equipment to ensure an efficient and consistent customer experience — all while managing your coffee shop's startup costs. Here's a list of the basic equipment needed to run a coffee shop:
Espresso machine
Brewers and filters
Coffee grinders
Coffee roaster
Refrigerators and storage
Ice maker
Blenders
Dishwasher
Restaurant POS system
Toaster/oven
Dishware and serviceware (mugs, cups, lids, napkins, etc.)
Tables and seating
When starting a coffee shop, your commercial kitchen setup also massively impacts how smoothly things run — for your staff and customers. You want to optimize your space efficiently and allow staff to move around quickly. Here's what to keep in mind:
Simplicity: Keep the layout simple and intuitive to ensure smooth operations and minimize staff confusion.
Workflow: Map out a logical workflow to make it easier for employees across teams to navigate the kitchen and do their jobs.
Efficiency: Allow for flexibility and optimal utilization of the available space.
Maintenance: Plan the kitchen to facilitate easy maintenance, cleaning, and upkeep.
4. Build a menu that stands out
A unique and well-thought-out menu helps differentiate your business from competitors, attracts customers, and can drive sales. Here are some ways to build a menu that stands out:
Offer specialty drinks: Include classic beverages such as espresso and cappuccino alongside signature or seasonal options, like a fall-themed maple or pumpkin latte.
Cater to dietary preferences: Provide dairy alternatives, sugar-free syrups, and gluten-free or vegan pastries to accommodate a wide range of dietary needs and preferences.
Go green: To appeal to the growing number of eco-conscious consumers, offer sustainable packaging, use ethically sourced beans, and implement recycling and composting programs.
Add a fun twist: Consider ways to make your menu stand out from other coffee shops and create shareable social media moments. For example, offer a rotating "Mood of the Day" drink where staff craft a unique beverage inspired by their mood — like a "Need a Hug" mocha or a "Feeling Bold" double-shot espresso.
For more tips, read our guide to designing a menu that sells.
5. Market your coffee shop effectively
You've got the beans, the baristas, and the ambiance — now it's time to get customers in the door (and keep them coming back). A strong marketing strategy helps you build brand awareness, foster loyalty, and stand out in a crowded coffee scene. Here's how to make some noise and attract caffeine-loving customers:
Tell your story on social media
If you're not on Instagram or TikTok, you're missing out on a massive opportunity to connect with coffee lovers. These platforms are perfect for telling your brand story, showing off your latte art, and engaging with your audience. Post daily specials, behind-the-scenes clips of your baristas in action, and even customer testimonials. Encourage visitors to tag your shop in their posts — nothing beats word-of-mouth marketing, and a well-placed story or post can bring in a whole new crowd.
Partner with local suppliers
Sourcing from local businesses isn't just good for your supply chain — it builds a sense of community and sets your business apart. Use beans from a local roaster, offer fresh pastries from a neighborhood bakery, or stock your fridge with organic milk from a nearby farm. Not only will this improve your product quality, but it also gives you more stories to share with customers, making your coffee shop feel like an essential part of the neighborhood.
Offer promotions and loyalty programs
Give customers a reason to keep coming back. A simple loyalty program — like a free coffee after ten purchases — goes a long way. You can also offer limited-time discounts, such as a "happy hour" for afternoon coffee runs or a discount for students and remote workers who need a caffeine boost. Seasonal promotions, like a winter-themed drink with a buy-one-get-one deal, can also drive foot traffic.
Engage with your community
Marketing isn't just about ads and discounts — it's about connection. To build a community around your shop, host local events like open mic nights, art showcases, or coffee-tasting workshops. You can also support local causes, whether it's donating a portion of the proceeds to a nonprofit or hosting fundraisers. The more you integrate into your neighborhood, the more loyal your customers will be.
Consider adding Online Ordering
More and more people are looking for convenience. Whether they're in a rush to work or ordering from home, giving customers the option to order ahead online can boost sales. Adding DoorDash Online Ordering helps you easily receive and manage orders on your own website.
How Baker's Daughter increased sales with delivery
In August 2020, Matt Baker opened Baker's Daughter, a boutique all-day café designed with convenience and quality in mind. The café celebrates the seasonal bounties of the Chesapeake region, with a menu of breakfast items, prepared meals, specialty coffees and juices, and house-made baked goods.
Delivery was a key component of their business from the beginning, and Baker saw DoorDash as a natural fit because of its broad reach. "Knowing that I can have a customer in Virginia place an order, and in 30 minutes have that order delivered to their house — that's pretty big for brand awareness," he explained.
Today, Baker's Daughter has three locations in Washington, DC, with more openings planned for the future. And as the business grows, Baker knows delivery will play a central role. "It's always been my goal to continue to grow our online delivery business," he said. "We're looking to boost as much sales through DoorDash as we can."
"In our downtown DC location, on any given day from 9–11 am, there's generally a line. DoorDash alleviates that by adding revenue without having to add people to the line or in the store."
22%
of Baker's Daughter's overall sales come from DoorDash
58%
of Baker's Daughter's DoorDash sales come from new customers
3.89X
average monthly order frequency April-July 2024
Start your successful coffee shop today
You're now ready to run a thriving coffee shop. Once you've finalized your business plan, chosen the perfect location, invested in quality equipment, and determined an effective marketing strategy that highlights your unique menu, you're ready to open your dream café. Looking to drive online sales? Explore how Online Ordering can help you reach new customers, streamline operations, and increase profits.
