I put this together for a friend whose opening a coffee shop and decided to share it for anyone whose thinking of/ in the process of doing the same!

1. Opening a Coffee Shop?
Alex Redden
linkedin.com/in/alexredden

2. Overview
 Location
 Site Evaluation
 Leasing
 Type of Business
 Fit Out & Equipment
 Product Mix
 Business Plan
 Financials
 Sample Templates
 Other Considerations
 Health & Safety
 Insurance
 Hardware & Software

3. Location/ Site Evaluation
 Projected Footfall
 Proximity to -
 Offices
 Public Transport
 Shopping Areas
 Other Local Amenities
 Competitors
 Customer Profiles
 Competitor Profiles
 Proposed Future Developments
 Local Council Restrictions (e.g. Trading Hour Limitations, Planning/ Licence
Classification)

4. Location/ Leasing
 Rent is typically calculated on a square foot/ metre basis and excludes rates
 Rates are set by the local council and are typically between 10 – 15% of rental value
 Expect Deposit to be between 2 – 6 months paid in advance
 Negotiate a rent free period split between start and end of lease term to offset set up costs
 Negotiate a break clause allowing you to terminate the lease early if the business isn’t
performing
 Check if unit has ventilation and air conditioning as this can add to set up costs considerably
 If you have an existing business, a landlord will look for up to 3 years of audited accounts and
references
 If you are setting up from scratch, a landlord will look for a business plan with 3 year
financial projections and a personal guarantor
 ALWAYS have your own solicitor review agreements and agree rate/ cost in advance

5. Type of Business
 Sole Trader
 One man band
 “Your Name” Trading As “Brand Name”
 Optional VAT Registration*
 VAT Returns
 Partnership
 Joint Venture
 “Your Name & Partner Name” Trading As “Brand Name”
 Optional VAT Registration*
 VAT Returns
 Limited Company
 Submit Revenue returns & audited accounts
 “Company Name” Limited (Optional Trading As “Brand Name”)
 Optional VAT Registration*
 VAT Returns
*Only voluntary if Turnover is less than €75’000

6. Fit Out & Equipment
 Build Costs
 Expect to spend between €25 - €75 per square foot (varies depending on finish and
equipment/ materials)
 Architects typically charge a % of the build or a pre-agreed rate
 SAMPLE BUDGET:
Demolition/ Strip Out €2,500
Electrical €3,000
Flooring €5,500
Plumbing €3,000
Joinery and Carpentry €5,000
Equipment €15,000
Furniture €3,000
Fixtures & Fittings €2,000
Decorations €1,000
Architect €3,000
TOTAL €43,000

7. Fit Out & Equipment
 Heavy Equipment
 Fridge(s)/ Freezer(s)
 Dish/ Glass Washer(s)
 Coffee Machine(s)
 Coffee Grinder(s)
 Deli Fridge
 Panini Grill(s)
 Blender(s)
 Ice Machine
 Light Equipment
 Kitchen/ Counter Utensils
 Crockery & Cutlery
 Consumables & Disposables

8. Product Mix
 Food
 Hot/ Cold
 Breakfast
 Lunch
 Pastries
 Snacks
 Beverage
 Hot Drinks
 Cold Drinks
 Smoothies/ Juices

9. Business Plan
A Business Plan serves two basic purposes – it forces you to think it through and shows potential
financiers that you have. Think of it as the who, the what, the where, the when, the why, and the how
 Executive Summary
 Summary Overview/ Highlights
 Company Description
 Background/ Vision/ Mission Statement/ Company Overview/ Legal Structure/ Ownership
 Products/ Services
 What you sell & Why (Define the Problem & Describe your Solution)/ Menu/ Sourcing & Fulfilment
 Market Analysis
 Target Market/ Competition/ Competitive Advantage/ Marketing Strategy (7 P’s)
 Operations
 Location/ Equipment/ Inventory/ Day to Day Running/ Workflows
 Management
 Key Team Members/ Staffing/ 3rd Party Professionals/ Personnel Plan
 Financials
 Set Up & Running Costs
 Profit & Loss/ Cash Flow Projections

10. Financials
 Gross Margin should be approx. 60 – 70% (e.g. If you’re selling a product for €10, Gross Profit should be €6 - €7)
 Rent should be approx. 10 – 15% of Revenue
 Labour should be approx. 25 – 35% of Revenue
 Do Weekly Payments (every Friday/ Monday) - If your cash flow doesn’t allow this/ you have credit terms – pay your monthly statement
value in full and don’t carry forward a balance
 Maintain a Float (Opening Till should match Closing Till from previous day)
 Keep all Petty Cash receipts in till (closing till should equal cash taken in minus float and petty cash)
 Keep all Cash Lodgement and Withdrawal Receipts
 Create Daily/ Weekly/ Monthly templates for Sales, Purchases, Staff
 When making payments by Bank Transfer – Reference Invoice Number on Transaction
 If receiving payments by Bank Transfer – Request that Invoice Number is referenced on Transaction
 Store Invoices in dedicated folders by chronological order (Invoice date) with most recent on top (Food/ Beverage/ Building/ Misc)
 Mark invoices/ statements as paid with a date stamp of payment date
 Make sure all items ordered are delivered (tick off on delivery docket and make sure matches corresponding invoice)
 Reconcile your bank statements against supplier purchase invoices/ statements and sales receipts (till & card machine) monthly
 Hire an accountant to look after Revenue Returns (Annual, VAT, Employer, Employee etc) Reconciling, P&L, Balance Sheet, Cash Flow
Statement, Payroll, Inventory
*% are indicative – will vary depending on what stage of business you’re at

11. Financials – Sample Cost Breakdown Template
Once Off Per Year Per Month Per Day
Setup Costs Fit Out (15,300) - - -
Fixed Costs Rent - (20,000) (1,667) (56)
Rates - (2,300) (192) (6)
Mgmt Fee - (1,365) (114) (4)
Insurance - (6,000) (500) (17) Assuming €500 per month
Energy - (3,000) (250) (8) Assuming €250 per month
(15,300) (32,665) (2,722) (91)
Variable Costs Wages (€10p/hr / Avg. 4 Staff x 8 Hours) - (115,200) (9,600) (320)
Stock (Est) - (36,000) (3,000) (100) Assuming €100 per day
0 (151,200) (12,600) (420)
Total (15,300) (183,865) (15,322) (511)

12. Financials – Sample Performance Template
Avg Spend Per Person (€) 2.50 5 7.50 10
Avg # of People (Total) 100 100 100 100
Avg # of People P/ Hr (11 Hrs) 9 9 9 9
Avg Sales Per Day (€) 250 500 750 1,000
Avg Sales Per Week (€) (5 Days) 1,250 2,500 3,750 5,000
Avg Sales Per Month (€) 7,500 15,000 22,500 30,000
Avg Sales Per Year (€) 90,000 180,000 270,000 360,000
Avg Costs Per Day (€) (511)
Avg Costs Per Week (€) (2,554)
Avg Costs Per Month (€) (15,322)
Avg Costs Per Year (€) (183,865)
Prep Time (Minutes) 2
Cooking Time (Minutes) 2
Packaging Time (Minutes) 1
Capacity (2 Grills x 3 Units ea) 6
Yield Per Hour (Units) 72
Yield Per Hour @ €5 (€) 360

13. Financials – Sample Cash Management Template
DATE
TOTAL
Bar Restaurant
Opening Float €0.00
Sales Bar Restaurant
Cash €0.00
Card €0.00
TOTAL €0.00 €0.00 €0.00
Less Bar Restaurant
Tips on Card €0.00
Less
Petty Cash Receipt
Petty Cash Receipt
Petty Cash Receipt
Petty Cash Receipt
Petty Cash Receipt €0.00
Bar Restaurant
Closing Float €0.00
Cash Lodged
Expected €0.00
Difference (+/-) €0.00

14. Financials – Sample Supplier Activity Template
SUPPLIER NAME
Expense Code
Date (DD/MM/YY) Amount (€) VAT (€) TOTAL (€) Ref (Inv #) Paid By Cash/ Card Payment Date

15. Financials – Sample Cash Flow Template

16. Other Considerations
 Health & Safety
 Starting a Food Business
 HACCP (Hazard Analysis & Critical Control Point)
 Allergens
 Shelf-Life
 Insurance
 Public Liability
 Product Liability
 Property & Contents
 Employers Liability

17. Other Considerations
 Hardware & Software
 POS (Point of Sale)
 Clover
 VendHQ
 Expense Management
 Receipt Bank
 Expensify
 Accounting
 Xero
 QuickBooks
 FreshBooks
 BulletHQ
 Wave
 ClearBooks
 Kashflow
 Staff Management
 Bizimply