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Coffee and Ice Cream Shop Business Plan

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The type of business is a coffee and ice cream shop. There are many kinds of coffee and ice cream stores, but none sells ice cream and coffee. The plan is for the store to have the ambiance of a café, but at the same time, it is also an ice cream parlor. I selected this idea because, in my area, I have not seen any store that has both cold and hot drinks sold together, which makes my picture unique. This idea will be successful since I stay in an area close to a school. It is known that students like new things and places, the fact that both coffee and ice cream can be found in the same store would be interesting for students. With the excellent ambiance, products, and good services, the business idea will be a success.

Coffee and Ice Cream Shop Business Plan

Environmental Analysis

SWOT Analysis

My coffee and ice cream store includes; affordable prices, a variety of coffees and ice cream, good and guaranteed quality. It has unique aspects that other coffees and ice cream stores do not have, clean and comfortable places, strategic location, satisfying services, and complete facilities. The weaknesses are the existence of raw materials and minimal quality. The opportunities include; the steady increase of market demand and many people, especially young individuals who are consumptive about ice cream and coffee. Threats include increased prices of raw materials due to limited supply and the appearance of new superior products.

Five Forces Analysis

The rivalry level among organizations in an industry: The competition for my brand would be the local coffee shops. There are few coffee shops in my area, but they are limited to coffee and bakery items. The difference between my business and theirs would be the unique flavors of product that my organization will provide to its customers, and also ambiance would be amazing. Also, the price for the products will be affordable comparing to other organizations. The potential for entry into an industry: It is somewhat easy to enter the industry for my business. Since it has a different concept, it might be expensive for a start-up since it is not just a regular coffee shop. 

Large suppliers’ power: Looking at the booming business of cafes worldwide and in states, there is a high chance of suppliers’ force for supplies, but there are lots of suppliers to choose from. And talking about ice-creams, we will be getting raw materials and producing our ice creams, and for raw materials, there are a lot of suppliers to cmanyom, which will help us get good products at low prices. Large customers’ powers: People always want a place to hang out after school or work where they have a good ambiance and good products, which my organization will provide. 

Providing gift cards, loyalty cards, and student discounts will help the business to get more customers. Also, having unique products and offers on special days will help to gain customers. The threat of a substitute product: There is always the threat of substitute products in the business but providing the best quality depends on the company itself. Our industry’s quality is unmatched by others, and having both café and creams in the same place is rare to find.


Business-Level Strategy

As the business will be new in town, an essential strategy would be good customer service. Ensuring that the store has good customer service would be advantageous since it will guarantee that customers are delighted with the service offered, making them want to come back and bring more customers. In addition, the quality of ice cream and coffee is essential. Quality in the ice cream and the coffee is why customers will be okay with any price. To ensure that the quality is maintained, there will be enough time spent training the staff. 

Every employee at the store will be well trained for their position even if they have previous experience. The other strategy is consistency in the taste. They ensure that there is consistency in the look, and the taste of the ice cream and coffee will ensure that the customers keep coming back again. Even though it is hard to maintain the consistency of the quality each time, it is crucial in the coffee and ice cream business, especially when individuals are becoming more knowledgeable about ice cream and coffee. 

Another technique is a warm and inviting environment. Most people go to coffee and ice cream stores to enjoy the products and work and think. Several people are known to have meetings in coffee shops to take a break from their stressful day. An inviting environment ensures that they keep spending more time in the store, which adds to the revenue earned. In small businesses, the owners’ most common mistake is overspending; adopting a sound inventory system would make this avoidable. 

Functional Level Strategy

Marketing Tools

  • Social Media

    • Offering online booking and delivery services.
    • Constantly updating the business page.


    • Different specials are offered daily.
    • Grand opening celebration. 

Competitive Advantage Assessment

Being the only store that sells both ice cream and coffee in the area, there is minimal competition from other stores (Sahlman, 1997). Even though this is the case, several strategies ensure that my store gains a competitive advantage. These techniques include; training the employees to be perfect in their roles, providing ice cream and coffee of good quality, ensuring consistency in the quality of the coffee and ice cream, and having reasonable prices. These strategies will ensure that even if there is a possibility of having a competitor, my store will always have an advantage in gaining and retaining customers. 

Organizational Structure

Although starting up the business would be relatively expensive due to its uniqueness, I would prefer having the company as a sole proprietorship. It is risky since if the store does not attract revenue, I will be the only person suffering the losses. Even though there is a possibility of having failures, I am confident that the store will make a lot of profit due to its structure; this ensures that I enjoy all the profits alone. It also makes it easier to make decisions since I do not have to consult. I will run the business and employ people well suited for the available spots. 


The nature of this business requires employees who know how to associate with the customers and are qualified. There will be people qualified for making the coffee and ice creams. The people attending to the customers will be experienced, and many since I anticipate for the business to be successful.

Leading Management Structure


  • Maslow’s theory of needs states that five categories dictate a person’s behavior: esteem, self-actualization, belonging and love, physiological, and safety needs. 
  • McClelland’s Human stimulus theory. Each individual has one of these driving motivators, i.e., the need for power, affiliation, or achievement. 
  • Equity theory. People are motivated by fairness.
  • Goal-setting theory of motivation. Higher and better task performance is a result of challenging and specific goals along with proper feedback. 
  • Negative reinforcement assists in teaching specific behaviors. 


Performance Evaluation

I will regularly assess the employees monthly based on their results as equated to their responsibilities. There will be an award for the best-performing employee, which makes workers perform at their best. 

Start-Up Costs

The costs incurred include launching the business, advertisements, rent for the store, installation charges for various infrastructure, and salaries for staff training. 

Estimated Revenue and Expenses

The store’s estimated revenue is approximately between $70000 to $170000 in personal income for the shop owner. On the other hand, the expenses of the store are between $90000 and $260000. 

Reasons to Invest in my Business

Return of investments. The business will ensure that the investors get a return on their investment, similarly known as profit. Influence- investing in my company will give investors a right to influence its affairs: anticipated advantages- future expectations of the store’s evolving competitive advantages. 

  • Sahlman, W. A. (1997). How to write a great business plan. Harvard business review75(4), 98-109.

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