According to reports, 7 in 10 Americans drink coffee every week; 62% drink coffee every day, making it second only to water. There are over 24,000 coffee shops in the United States, with an average sell rate of 230 cups per day.
Truth be told, coffee has become a crucial part of a cultural revolution, and owing to some amazing trends, it seems that growth will continue. Churches, ministries, and entrepreneurs in the United States are beginning to leverage coffee’s popularity and are gradually turning it into an opportunity for outreach and faith development.
As you gear towards starting a religious coffee shop, you must put together a good business plan to define how you intend to reach your customers or visitors – including those not comfortable with traditional church or religious settings.
Steps on How to Write a Religious Coffee Shop Business Plan [Sample Template]
Table of Content
Mount Sinai will be a coffee shop/co-working space in the city of Provo, Utah, offering a conducive, religious place with excellently roasted coffee, specialty drinks, a vibrant community, and good books. According to research, almost 90 percent of Provo’s population is made up of members of the LDS Church, and many residents are current or former BYU students, a distinction that has shaped the city’s culture. We at Mount Sinai are looking to provide them with a community-oriented, vibrant atmosphere where they can work, meet each other, and flourish in their different endeavors.
a. Our Products and Services
With people becoming more interested in their spiritual wellbeing, a co-working space with freshly roasted coffee coupled with a non-denominational Christian atmosphere and books will be a welcome development in the City of Provo, Utah. Mount Sinai will be a specialty beverage shop boasting of workers and baristas who are experienced in providing top-notch coffee/espresso drinks and information to enhance our customers’ spiritual experience.
b. Nature of the Business
Our business model at Mount Sinai will differ from a typical coffee shop since we intend to offer much more than just coffee and bakery items. Instead, we intend to leverage the coffee shop like the market floor for selling everything else.
Mount Sinai will also be a unique Christian Workspace that is different from what exists currently in the market. We aim to create a unique offering for religious folks and draw them out of places they presently visit so that we can sell them everything they need to sustain a modern working life, beginning with food & drink.
c. The Industry
Mount Sinai will be part of the United States Coffee & Snack Shops Industry.
d. Mission Statement
Our mission at Mount Sinai is to create a flourishing environment that won’t intimidate the spiritual seeker. We will strive to create a coffee shop that will function as an educational resource for individuals eager to familiarize, associate, and learn more about the benefits of growing spiritually. Our café will serve as a community hub for socialization, innovation, and spiritual growth.
e. Vision Statement
Our vision at Mount Sinai is to ensure we always stay committed to values like excellence, integrity, and leadership that will allow us to create a unique, innovative, upscale atmosphere that will differentiate us from other coffee shops in the area, including future ones.
f. Tagline or Slogan
Mount Sinai – Flourish in Divine Revelation
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Mount Sinai will first be registered as a Limited Liability Company in the state of Utah, but as the business grows and expand, we intend to switch to the S Corp to issue common stock and offer voting rights to potential shareholders.
h. Organizational Structure
- Floor Manager
- Sales and Marketing Executive
- Client Service Executive
i. Ownership / Shareholder Structure and Board Members
Just like it was noted above, Mount Sinai will be registered as a Limited liability company but will convert to an S Corp with a share capital of $3,000,000. Mount Sinai will be managed by two partners: Timothy Calverton who holds 60% of the shares and Courtney Pegg who holds 40% of the shares.
- An affordable, professional place to work and meet
- Unique coffee shop concept
- Handpicked and well-trained baristas
- Experience and knowledge of our team
- No franchise backing
- Minimal budget
- Age of our space and the maturity of our community
- A well-researched location
- More people embracing entrepreneurship
- Mormon institute of higher learning, Brigham Young University, and other missionary training center for the religion in Provo.
i. How Big is the Industry?
According to industry reports measured by revenue, the Coffee & Snack Shops industry is $48.4bn in 2022.
ii. Is the Industry Growing or Declining?
According to reports, the Coffee & Snack Shops industry in the US has increased 2.8% per year on average between 2017 and 2022. The industry is still expected to increase 2.7% in 2022.
iii. What are the Future Trends in the Industry
Truth be told, we now live in what experts term a “post-COVID” world. The pandemic of 2020 affected many people, and to some extent, has influenced the gathering rights of the Church. As this industry progress, businesses that accumulate market share won’t really be expected to be a “Christian” coffee shop! It could just be an enticing place that creates a “different” atmosphere than other coffee shops. It will have to be renowned for excellence as well as incredible customer service.
iv. Are There Existing Niches in the Industry?
No, there are no niches in this business because religious coffee shops are more renowned as a niche under the coffee and snack shop industry.
v. Can You Sell a Franchise of your Business in the Future?
No, we do not intend to sell a franchise in the future. However, as our business and customer base grows, we intend to start establishing new locations. Note that we won’t exclusively sell our own products and services at Mount Sinai; instead, we will create an open marketplace that encourages and incentivizes others to become solutions that our advisors recommend and sell.
- Availability of Substitutes
- The threat of New Entrants
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
i. Who are the Major Competitors?
- Think it & Drink it
- I Can Brew All Things
- Prosperi Tea Coffee
- Holy Roast Revival
- The 700 Mug
- Your Best Lattè Now
ii. Is There a Franchise for Religious Coffee Shop Business?
Currently, there are no religious coffee shop franchises, nor are there any coffee shop franchises explicitly meant for Christians.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Religious Coffee Shop Business?
Yes, suffice it to say, every place is different, and your city/town may not require the same things as another. However, it is your responsibility as a business owner to figure out which developments, restrictions, and changes affect your desired location. Knowing the exact zoning code of your neighborhood of choice will help to determine whether you can move forward with your plans or whether you need to take an additional step. You may need to acquire a zoning permit to modify the use of the property. Each state has different requirements, so it’s important to research the laws in your state before starting.
a. Who is your target audience?
i. Age range
- Gen Z (18-22 years old): 12%
- Millennial (23-38 years old): 48%
- Gen X (39-54 years old): 30%
- Baby Boomers (55+ years old): 10%
ii. Level of Education
- High school graduate or less: 2%
- Some college or Associate degree: 28%
- Bachelor’s degree: 32%
- Postgraduate: 38%
iii. Income Level
The average income of a Provo resident is $17,539 a year, while the Median household income of a Provo resident is $40,359 a year.
From detailed research, the racial makeup of our city of choice remains 88.52% White, 0.46% Black or African American, 0.80% American Indian, 1.83% Asian, 0.84% Pacific Islander, 5.10% from other races, and 2.44% from two or more races.
There are no language barriers or restrictions at Mount Sinai.
vi. Geographical Location
Provo was settled by members of The Church of Jesus Christ of Latter Day Saints in 1849. It was the first Latter-day Saint colony in Utah outside of the Salt Lake Valley. To the west of Provo lies Utah Lake and to the east of the city stands a towering range of mountains called the Wasatch Front.
Note that 72% of Utah’s 1.8 million residents are Mormon, as are 90% of the state’s religious adherents. Also note that Catholics are the second-largest religious group, 3.8% of the state’s total. No other religion encompasses more than 1%. However, many families and young professionals live in Provo and residents tend to be conservative.
b. Advertising and Promotion Strategies
- Flyer in the right places, to the right people, and ensuring it contains the right messages
- Offer an incentive to visit
- Reward customers/members with loyalty cards
- Get their attention with promotional banners
- Reach out to customers with feedback cards
- Participate in ‘national’ social media events
- Host a special event and promote it.
i. Traditional Marketing Strategies
- Advertise to Current Customers/Members.
- Host Events and Promote It
- Partner with Local Businesses
- Provide Membership Perks
- Create a Health Insurance Program
- Help our Members Succeed
- Advertise Toward Commuting Workers
ii. Digital Marketing Strategies
- Visual Branding/Social Media Theme
- Optimize Your Google Maps Listing
- Google Analytics & Search Console
- Content Marketing
- Search Engine Optimization (SEO)
- List Building
- Email Marketing & Automation
iii. Social Media Marketing Plan
- Promotion in relevant communities
- Re-purpose content for different media (videos, podcasts, etc.)
- Facebook ads, Twitter & LinkedIn followers
- Ask question platforms (Quora, Reddit)
- Email list (Newsletter)
- In-app notifications (social media sharing buttons, newsletter subscription)
c. Pricing Strategy
We understand that pricing in our industry can be quite competitive. Truth be told, the price of freshly brewed coffee and specialty beverages may not really vary by more than a few cents between the corner coffee shop and the large chains. However, the price of roasted coffee beans can vary and more established shops, owing to the benefit of volume, can charge lower prices per pound.
Nevertheless, at Mount Sinai, we intend to charge a slightly higher price as our coffees are freshly roasted on-site daily. We have put plans in place to roast our coffee to maximize the flavor of the specific bean. We will also roast coffee to the customer’s specifications. We strongly believe that this strategy will draw in customers to enjoy a whole different coffee experience.
Sales and Distribution Plan
a. Sales Channels
Our plan at Mount Sinai is to build a unique and upscale coffee shop, and spiritual resource. We will build a conducive environment that will serve on-site roasted, high-quality coffee and espresso, coupled with specialty beverages at a competitive rate. Owing to the growing number of coffee shops in the Provo area, we at Mount Sinai totally understand the importance of setting competitive prices for freshly roasted coffee. We plan to offer our clients a steady view of coffee roasting, and they will be able to order coffee beans roasted to their specifications while they work or enjoy a beverage.
b. Inventory Strategy
When it comes to inventory strategy and management, we have decided to leverage inventory software to help manage our affairs and business. Shopventory remains one of the industry’s most complete, full-featured inventory management software available. With easy integrations and great customer support, Shopventory connects with our pos system for all locations and e-commerce sites so we can always have real-time inventory valuation.
c. Payment Options for Customers
Below are the payment options we intend to make available to our customers at Mount Sinai;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
We at Mount Sinai will implement an easy-to-understand refund policy, with a 100 percent satisfaction guarantee. We will always handle every customer complaint to the customer’s complete satisfaction, including a full refund if that’s what it takes. We will also offer customers a replacement product or coupons that give free coffee for their use in the future. If they choose a refund for their purchase, we will only refund in the same form of currency used for the purchase.
e. Customer Support Strategy
Our customer support strategy at Mount Sinai dwells on our uniqueness in the market and the products we intend to offer, the people we attract, and the atmosphere we establish. Just like it was noted above, Mount Sinai will offer a unique atmosphere that draws in the “spiritual seeker.” In addition, the “coffee lover” and others will come because of the quality and the atmosphere. However, at Mount Sinai, we are not just selling products or coffee. We intend to focus on selling an experience.
A good number of activities are planned around the launch of Mount Sinai to ensure we create enough awareness. We also plan to put together a contest offering 15 bottomless mugs and will publicize this promotion via radio advertising, as well as countertop displays and posters in the shopping plaza. Also note that within our first year in business, Mount Sinai will pass out a limited number of coupons for a free cup of coffee to prospective customers visiting the area.
a. What Happens During a Typical Day at a Religious Coffee Shop Business?
Just like with a typical coffee shop, day-to-day activities in a religious coffee shop will involve making and serving customers’ coffee. However, note that when not brewing coffee and speaking to customers, you will be tasked with refilling and restocking supplies and ordering more inventory (e.g. milk, coffee, and cups), scheduling employees (if a shop has multiple employees), washing dishes, cleaning, and getting things ready more coffee and food sale.
b. Production Process
At Mount Sinai, our coffee will come from a drip coffee maker where it is brewed through a filter containing the ground, coarse coffee beans as boiling water is “dripped” on top. Have it in mind that this filter leaves behind the ground coffee beans as the liquid passes through it and into a decanter or coffee pot that is then used for serving.
c. Service Procedure
At Mount Sinai, our trained baristas will also handle sales transactions. To hasten customer service, we will always ensure that at least two employees will be servicing clients–while one employee prepares the customer’s order, the other one will take care of the sales transaction. In addition, every sales data logged on the computerized point-of-sale terminal will be analyzed later for the sole aim of marketing, cost of sale, and volume purposes.
Meanwhile, at Mount Sinai, we intend to use banners, flyers, postcards, and other advertising methods, leveraging customer referrals and cross-promotions with other businesses in the community. We also have plans to use customer retention programs like drink punch-cards to make sure the customers are returning and spending more at our shop.
d. The Supply Chain
At Mount Sinai, we have negotiated supplier agreements with a handful of local food-service wholesalers and coffee wholesalers in the Utah area that have a reputation for quality and reliability. However, if for any reason one of the aforementioned specialty suppliers cannot meet our needs, we have also put together a list of national suppliers who can provide all the food-service products that we need.
e. Sources of Income
- Specialty Coffees
- Flavor-Based Drinks
- Espresso & Coffee Drinks
- Bakery Items
- Private Office Rental
- Desk Rental
- Combined Membership Plan
a. Amount Needed to Start your Religious Coffee Shop Business?
From our extensive research, we require $620,000 to start Mount Sinai in Provo and an additional $130,000 to cover the first-year salary of our core team.
b. What are the Cost Involved?
- Security deposit: $75,000
- Environmental equipment (air quality, sound, etc): $79,220
- Coffee making equipment: $88,270
- Other equipment (fire, security, etc.): $17,205
- Technology: $16,000
- Furniture: $153,600
- Renovation: $220,000
- First month’s rent: $25,000
- Estate agent fees: $3,750
- Utilities: $700
- Inventory (2 months): $67,400
- Recruitment, training, uniforms: $13,450
- Miscellaneous: $10,000
c. Do You Need to Build a Facility?
No, at Mount Sinai we plan to start from a leased facility in the business district of Provo, Utah. Our initial investments will be used to set up an office, website, and management software. We intend to make necessary additions to space as the company expands.
d. What are the Ongoing Expenses for Running a Religious Coffee Shop Business?
- Restocking of supplies
- Member’s benefits
- Training, development, uniforms, etc.
- Repairs & maintenance
- Waste & recycling
- Payment processing
- Environment (air quality, landscaping, etc)
e. What is the Average Salary of your Staff?
- President: $0
- Floor Managers: $62,218/Year
- Advisors: $0
- Sales and Marketing Executive: $57,440/Year
- Accountant: $51,098/Year
- Baristas: $46,720/Year
- Client Service Executive: $37,560/Year
f. How Do You Get Funding to Start a Religious Coffee Shop Business
- Equipment loan/financing program
- Rollover for business startups (ROBS)
- Business credit cards
- Personal loan
- A microloan from Small Business Administration (SBA)
a. How Much Should You Charge for your product/Service?
According to industry reports, the average cost of a cup of plain brewed coffee is $2.70. Brewed coffee represents at least 51.5 percent of the beverages sold in coffee shops. Espresso-based beverages, like the americanos, cappuccinos, and lattes tend to have an average price ranging from $2.62 to $3.94. Note that the food products retailed at coffee shops often are in a similar price range. The cost of our monthly co-working space membership will be $220. We will charge more for a dedicated desk, an office, or a locker.
b. Sales Forecast?
- First Fiscal Year (FY1): $480,000
- Second Fiscal Year (FY2): $970,000
- Third Fiscal Year (FY3): $2,104,000
c. Estimated Profit You Will Make a Year?
At Mount Sinai, we expect to make;
- First Fiscal Year (FY1): $144,000 (30% of revenue generated)
- Second Fiscal Year (FY2): $436,500 (45% of revenue generated)
- Third Fiscal Year (FY3): $841,600 (40% of revenue generated)
d. Profit Margin of a Religious Coffee Shop Business
According to industry reports, a good number of coffee shops run at a gross margin of 75-80% or even higher, however, the operating profit is less than 2% for most coffee shops.
a. How do you intend to grow and expand?
Our plan at Mount Sinai as our business and customer base grows is to start establishing new locations. We won’t exclusively sell our products and services at Mount Sinai; instead, we will create an open marketplace that encourages others to become solutions that our advisors recommend and sell.
b. Where do you intend to expand to and why?
With religion gradually taking a backseat when it relates to values for most Millenials, we at Mount Sinai intend to consider where religion remains a vital priority to community life when choosing cities to expand our business. These cities include;
- Huntsville, Alabama
- Montgomery, Alabama
- Birmingham, Alabama
- Jackson, Mississippi
Since we won’t be selling just our own products and services, we at Mount Sinai strongly believe that acquisition and mergers will suit our business interests. We believe that acquisition and mergers will propel us more into the open marketplace. Our founders will also continue working as advisors after the acquisition. We believe this is a good thing since they are very experienced in the industry and also in handling the business.