The Coffeeshop Business Model (v1)
I love coffeeshops. Some of you probably know this about me, and some of you may even have read my blog post about my love for coffeeshops.
I (like many people) have a dream of running my own coffeeshop one day, establishing a community outpost that brightens the day for the weary, and offers a welcoming environment for every type of person imaginable.
So I did as any aspiring coffeeshop empresario with an investment banking background would do on a Friday night… I built a model!
Here it is (I recommend you actually open it in Google Sheets using the link, but you can also interact with it embedded here):
I’ll dig into some analysis/key takeaways over the weekend and next week, but there are some important caveats:
- I built this model on a Friday evening after 2 beers – it is far from perfect. I plan on building this out further, but if you have suggestions in the meantime, they are always welcome.
- This model assumes that you have the full cash balance to start this today (i.e. no debt), and doesn’t take into account any ancillary/legal fees. Taking out a loan would affect the returns materially (planning to build into the model later).
Question for you:
Can I ask you to give me feedback on the assumptions I’ve made? If anyone has actual experience working in a coffeeshop that would be amazing, but even if you haven’t, do you think it’s reasonable that the average beverage check is $4? Does it make sense that less than 1 in every 4 orders involve food? What other line items am I missing?