It isn’t easy to define the cafeteria concept. However, it is occasionally more like the latter, with valuable food services resembling those in the fast-food sector. Sometimes, even without table service, with a buffet. To illustrate a cafeteria business plan, we will use the example of a restaurant that serves elaborate but straightforward food.
We recommend the reader complete the reading of this article with the publications we made about the business plan of a restaurant or a coffee shop business plan. For example, suppose you want to know the difference between a bar, a cafeteria, and a restaurant. In that case, I recommend you read this article that explains very well the different licenses and the associated requirements.
The business idea
How to Startup coffee shop business plan successful. We propose a cafeteria based on the buffet concept, but with control of the dishes consumed (it is not a free buffet). Customers enter with their trays in a closed circuit where they can choose various starters, mains, desserts, and drinks, before proceeding to checkout and paying for their food before heading to the table area to enjoy their meal.
It is a concept comparable to fast food, allowing users not to waste time and generally has a low price. It is common in large companies or public places (hospitals, airports, highways).
What need does the business idea meet?
Numerous consumers’ purchasing power has been significantly reduced due to the various crises (financial, pandemic). As a result, despite the subsequent economic recovery, many customers got used to looking for cheap alternatives to eating out.
On the other hand, there is a market of workers looking for variety in the dishes and service speed, while paying for their meals every day is a significant monthly expense.
Industry Magnitude
Because coffee shops often have a service offering halfway between bar and restaurant, it isn’t easy to find specific statistics on their turnover. However, they belong to the hospitality industry, one of Spain’s leading creators of jobs and wealth. According to the business organization Hospitality of Spain, bars, restaurants, cafeterias, and pubs in our country employ 1.3 million people, contribute 4.7% of GDP and have a turnover of around 98,000 million euros.
Project location
When considering the coffee shop business plan for a cafeteria, the ideal is to look for a location close to a large work center, for example, in the vicinity of industrial estates, shopping centers, or business centers. However, it must be taken into account that the main clientele is the employee who does not have time to go home to eat and is looking for a cheap and varied place, so it cannot be located very far from these work centers.
Although there may be small cafeterias, it is essential to count on a specific volume to take advantage of economies of scale, which increases the importance of locating an area with a sufficient number of workers.
Business plan for a cafeteria: the promoter team
It is highly recommended that people who carry out a coffee shop sector project have the necessary experience. Although it may seem simple, there are essential logistical and health aspects, and organization and know-how are required to guide a group of employees, which is usually crucial.
Competition study
Several significant players compete with the buffet cafeteria concept for hard-working customers with a small budget and little time.
- There are usually large restaurants with adjusted menus in the polygons, which vary their proposal every day and try to combine the speed of service and treatment at home.
- Free buffets are typical in shopping malls and many restaurants. The complimentary buffet and the restaurant (chain or independent) charge significantly more than the proposed cafeteria concept.
- You have to count on the competition from the internal cafeterias of the big companies. They usually receive some subsidy from the company, so it is practically impossible to compete against them. If some significant workplace has a cafeteria, it will be better to exclude its employees from the potential market.
- It is pretty common to find hamburgers, sandwich shops, or sandwich shops with very competitive prices. In this case, the cafeteria concept provides a greater variety and more balanced dishes for a not much higher price.
- The coffee shop business could also be working in the area. For example, the English Court has a buffet service in some centers. In this case, there would be competition for price and some services.
Marketing and communication strategy
It is essential to consider the marketing and communication strategy within the business plan. That strategy varies greatly depending on the location of the center. For example, suppose it is a cafe located inside a shopping center in a conspicuous area. Most people in the place will notice its opening almost immediately (which does not mean that it is always advisable to advertise).
In the case of a polygon, it is essential to do communication work with all the companies located in the industrial zone and also in other nearby polygons, many potential customers will need to drive to eat, so a distance of two or five kilometers is irrelevant.
Operation of the company in the plan for a coffee shop
Such a cafe has some significant differences from a classic restaurant.
- The dishes are prepared in advance, and then the customer chooses from the available offer. Therefore the production of the food is simplified.
- There is no table service. It is only necessary to serve the hot dishes, check that the buffet is not missing some words, and do a little cleaning if some customers do not pick up their trays.
- It is necessary to have at least one cashier to collect food, and at peak times, 2 or 3 may be required to avoid losing the great advantage of this system: the speed of service.
Necessary investment
The money required for an investment of this type is very similar to any coffee shop. The material and requirements of the kitchen are identical;
The investment necessary to adapt the premises to the regulations and the business’s practical aspects can be significant.
You also have to purchase the initial stock of food and drink.
Sales forecast in the business plan of a coffee shop
The sales forecast is fundamental to any feasibility analysis, especially our cafeteria’s business plan. Therefore, it is essential to try to have a realistic estimate. One option is to analyze the billing of the competition. Another is to extrapolate based on occupancy data and average tickets. You can read the analysis we did for a restaurant opening if you want to know more.
Margin on sales
Therefore, it would seek to compensate for this lower margin: the volume sold and lower expenses.
Fixed costs
The fixed costs of personnel are logically more subordinate.
The rent of the premises and the amortization of the material would constitute another very significant part of the expenses.
To all this, we should add the usual expenses (supplies, external services, etc.)
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