Business Plan — Hearth & Hollow Coffee Roastery

Company: Hearth & Hollow Coffee Roastery Prepared by: Daniel Okafor, Founder Date: 8 April 2026 Plan period: 3 years, starting July 2026

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1. Executive summary

Hearth & Hollow is a neighbourhood coffee roastery and cafe opening in the Maple Park district, a dense, walkable area with no specialty roaster within a mile. We will roast small batches on-site, sell brewed coffee and pastries from a 30-seat cafe, and sell whole-bean bags both over the counter and by local subscription. We are seeking $75,000 to fit out the space and buy a roaster, against projected Year-1 revenue of $312,000 and break-even by Month 9.

2. Company description

• What we do: Roast specialty coffee in small batches and serve it fresh in a welcoming neighbourhood cafe.
• Mission: Make genuinely good coffee an everyday ritual for our neighbours, not a luxury.
• Legal structure: Single-member LLC.
• Location: A 1,100 sq ft corner unit on Maple Park's main street, high foot traffic, long lease available.
• What makes us different: We roast on-site, so the coffee is fresher than anything trucked in, and the roaster itself becomes the cafe's centrepiece and story.

3. Market analysis

• Target customer: Maple Park residents aged 25 to 55 who walk or cycle to work, value quality, and currently drive 15 minutes or settle for a gas-station cup.
• Market size: Roughly 9,000 residents within a 10-minute walk. If 6% become weekly customers spending an average of $14 a week, that is about $390,000 a year in addressable spend before tourists and passers-by.
• Trends: Specialty coffee demand keeps rising, and "shop local" sentiment is strong in the district after two chains closed last year.
• Competition: Two chain cafes 1.2 miles away and a gas-station counter nearby. Neither roasts on-site or offers a local subscription, and neither is walkable for our target block.

4. Products and services

• Brewed coffee and espresso drinks — the daily-habit purchase. Average ticket $5.50.
• Pastries and light food — baked by a local partner bakery, sold at a 55% margin, lifting the average ticket.
• Whole-bean retail bags — 250g and 1kg, sold over the counter and online. Higher margin than brewed.
• Local bean subscription — fortnightly home delivery within the district, building predictable revenue.
• Cost to deliver: Green coffee, milk and pastry supply, labour, rent, and utilities are the main costs; green coffee runs about 18% of brewed-drink revenue.

5. Marketing and sales

• Positioning: The neighbourhood's own roaster — fresher and closer than the chains.
• Channels: Foot traffic from the corner location, a launch event for nearby residents, a simple loyalty card, local Instagram, and partnerships with the bakery and a nearby bookshop.
• Pricing strategy: Priced just above the chains to signal quality while staying an everyday treat, not a splurge.
• Sales process: Walk-in is the main path; the subscription is sold at the counter to regulars who already trust the beans.

6. Operations

• Delivery: Roast two to three mornings a week on a 5kg roaster; brew and serve from open to close.
• Suppliers / key resources: A specialty green-bean importer (two-week lead time), the partner bakery, and a dairy supplier.
• Facilities and equipment: The leased corner unit, a 5kg roaster, two espresso machines, grinders, and basic cafe fit-out.
• Quality and systems: Standard roast profiles logged for each origin, a simple checklist for opening and closing, and weekly cupping to keep quality steady.

7. Management and team

Role	Person	Relevant experience
Founder / head roaster	Daniel Okafor	6 years as a barista and roaster at a regional roastery
Cafe manager	To hire (Month 1)	Experienced cafe lead, hospitality background
Baristas (2 part-time)	To hire (Month 1)	Trained in-house on our roast profiles

Advisor: Priya Nair, owner of an established roastery in a neighbouring city, mentoring on roasting and supply.

8. Financial plan

Key assumptions: average ticket of $5.90 blended across drinks, food, and retail; roughly 130 transactions a day in Year 1 rising with awareness; green coffee at 18% of brewed revenue; rent of $3,200 a month.

Year	Revenue	Costs	Net profit
Year 1	$312,000	$289,000	$23,000
Year 2	$398,000	$341,000	$57,000
Year 3	$452,000	$377,000	$75,000

Funding requirement: $75,000. Use of funds: $32,000 roaster, $26,000 cafe fit-out and espresso equipment, $17,000 opening inventory and working capital. Break-even: about 95 transactions a day, expected by Month 9.