Starting your day with a fresh cuppa coffee is one of the enriching ways to brighten your mornings. According to the Statista report, the consumption of coffee in Indian households was around 1,235 thousand 60-kilogram bags during FY 2022-23.
This data suggests the massive number of coffee lovers in the country. After all, drinking coffee is a nuanced and complex feeling, providing you with a comforting warmth. And if you are a coffee lover looking to venture into the coffee business, you require a solid coffee shop business plan.
While this may sound exciting, remember that your business requires careful planning and preparation to gain profits. Read on to explore a step-by-step guide on how to start a coffee shop and create a comprehensive business plan for a coffee shop.
When seeking a business loan to open a coffee shop, comparing interest rates offered by various banks or non-banking financial companies (NBFCs) is essential. Here are the interest rates at which various lending institutions offer business loans:
Our Partners |
Interest Rate Range |
Max Loan Amount/ Tenure |
Avail Loan |
20% onwards |
36 months |
||
28% onwards |
36 months |
||
12% onwards |
36 months |
||
18% onwards |
60 months |
||
20% onwards |
48 months |
||
16% onwards |
36 months |
||
15% onwards |
9 months |
||
15% onwards |
36 months |
||
1.25% p.m. onwards |
72 months |
Disclaimer: The interest rates mentioned in the above table are subject to change at the lender’s discretion. For further information, please contact the lender.
To be eligible for a coffee shop business loan, you will typically need to meet certain criteria set by the lenders. Eligibility criteria may include factors such as your credit score, business plan, financial projections, collateral, and experience in the coffee industry.
Familiarise yourself with the eligibility criteria of different lenders to determine which ones you qualify for. Generally, to be eligible for a business loan, the following criteria must be met:
Indian citizenship is a requirement
Self-employment status is necessary
Applicants must be between 26 and 66 years of age
A minimum of 3 years of business experience is needed
Income tax returns for the business for at least 2 years are also mandatory
To complete the loan process, the bank or NBFC would require you to submit the following documents:
Trade License
TIN (Tax Identification Number)
VAT (Value Added Tax) Registration
Gumastadhara
Business Registration Certificate
GST (Goods and Services Tax) Filing
Bank statements for the last 12 months
Company PAN(Permanent Account Number) copy
Copy of Partnership deed, if applicable
You can apply for a business loan at Bajaj Markets to boost your coffee shop business plan. Follow these steps to apply for a business loan:
Step 1: Click on 'Apply Now' on this page
Step 2: Complete the application form by providing all the required details
Step 3: Click on the 'Check Your Offer' button
Step 4: Enter additional details
Step 5: Compare the lenders and select the preferred one
Step 6: Enter the desired loan amount, repayment tenure
Step 7: Submit your application
Once this process is complete, a representative will contact you to proceed with the loan process. Post approval, you can utilise the funds to implement your coffee shop business plan.
Starting a coffee shop requires careful planning and consideration of various factors. A well-structured business plan for a coffee shop can serve as a roadmap for success, helping you make informed decisions and navigate the challenges of the competitive coffee industry.
Be sure to comply with legal requirements and choose the right funding option to support your coffee shop business. With the right approach and dedication, your coffee shop can become a thriving business and a beloved spot for coffee enthusiasts in your community.
The staff required at a coffee shop typically includes baristas, cashiers, servers, and possibly a manager or supervisor. The number of staff members needed would depend on the size and scale of the coffee shop, as well as the menu offerings and customer volume.
The cost of opening a coffee shop in India can vary greatly depending on various factors such as the location, size, interior design, equipment, menu offerings, and marketing expenses. However, on average, the estimated cost of opening a coffee shop in India can range from ₹5 Lakhs to several crores.
The licences required to open a coffee shop in India may include a trade licence from the local municipality, a food safety and hygiene licence, GST registration, fire safety clearance, and any other relevant licences or permits required by local authorities or government bodies.
Yes, obtaining a business loan to open a café is possible. Many banks and financial institutions offer business loans specifically designed for small businesses, including cafes. However, eligibility criteria and loan terms may vary depending on the lender's requirements and your creditworthiness.
To get a small cafe business loan, you must prepare a comprehensive coffee café business plan, including details about your cafe concept, market research, financial projections, and repayment plan.
You may also need to provide necessary documents such as business registration proof, financial statements, and collateral (if required). Then, you can approach banks or financial institutions offering business loans and submit your loan application along with the required documents.
The amount of capital required for a coffee shop would depend on various factors, such as the size and location of the cafe, the menu offerings, equipment and furnishings, marketing expenses, and working capital requirements. Hence, it is essential to create a detailed financial plan and budget to determine the exact capital needed for your specific coffee shop venture.
Yes, opening a coffee shop can be considered an eligible business to get a loan, as it is a viable business model with the potential for revenue generation. However, loan approval can depend on factors such as your creditworthiness, business plan, financial projections, and collateral (if required) as assessed by the lending institution.