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Dog Café Business Plan

If you are planning to write the Dog Café business plan on your own, then this sample Dog Café business plan can be great for guidance. However, if you are looking for a professional business plan writer for a business loan, SBA loan or to find out the possibility of success for your new business then let’s talk!  

Executive Summary

Overview: The Dog Café provides a relaxing and enjoyable environment for both people and dogs, away from overcrowded shelters that may cause fear and hostility in adoptable pets. Play with puppies while getting your coffee, or catch up with friends over lattes while hugging lap pets. We provide those who cannot have pets of their own the chance to spend quality time with furry companions (and vice versa) without the commitment of adoption.

Mission: The Dog Café’s mission is to change the way individuals engage with dogs in need of homes, revolutionizing dog adoption.

Vision: To create the art of happiness by using dogs as a stress reliever.

Industry Overview: Dog cafés are technically animal cafés, with the first one opening in Taiwan in 1998 and becoming famous in Japan. Animal cafés became popular around the globe after that. You may now go to animal cafés and touch and snuggle with animals. Because of the nature of dogs, dog cafés are often considered to be noisier than typical animal cafés. Because dogs are significantly larger than most animals featured in previous animal cafés, the café will be substantially larger.

Financial Overview

Dog Café business plan financial overview

Financials is one of the most important sections of a Dog Café business plan. You can get an idea of your projected revenue, required investment amount, is the business sustainable without additional funding, etc.

Financial Highlights

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency
Interest coverage ratio8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

FUND USAGE

Dog Café investment Capex

Industry Analysis

The industry analysis section of the Dog Café  business plan will help you get better insights into competitors, market growth, and overall industry prospects. You can order a custom market research report for your Dog Café business.

The Dog Café aims to make it easier for individuals to spend their leisure time with their dogs by providing a space where they can socialize with friends or family while their pets do the same. Hours turn into weeks in a flash at Dog Cafe; this is a must-visit location for every dog owner.

Dog Cafe is a great location to meet new people, mingle, and learn about their interests Customers pay to spend time with domesticated dogs for amusement and relaxation at a dog café. Other services, such as food and drinks, may be available in such cafés. Dog cafés (while not as common as cat cafés) are a popular sort of animal café. You pay a fee to enter and then get to play with and pet a range of different dog breeds. Adoption services are available at several dog cafés so that you can find your future pet there!

While it differs every café, several urge clients, to adopt the dogs on the premises. Some dog cafés may have adoption events when customers may adopt one of the café’s dogs. Other cafés may enable you to adopt their dogs on a case-by-case basis, depending on how interested you are. You’d almost certainly have to go through the usual adoption procedures, such as filling out paperwork and demonstrating that your house is a dog-friendly environment, among other things.

The canines that dwell at the dog café have previously been saved from a life in a shelter because the café took them in. As a result, you may still feel good about your choice to adopt a dog from a dog café rather than a shelter.

Coffee shops exist in various shapes and sizes, but they are often facilities that serve freshly brewed coffee, tea, and other hot drinks. Recently, many coffee shops have added baked goods, sandwiches, salads, and other snack products to compete with restaurants in the quick-service sector. In 2020/2021, global coffee consumption was estimated to be at 166.63 million 60kg bags. The United States is one nation that stands out as a beverage consumer. The coffee market in the United States generated over 82 billion dollars in sales in 2019. Despite the fact that coffee users may be found all across the nation, overall coffee per capita consumption in the United States differed by location in 2020. The Northeast was the most coffee-consuming area, with an average of 1.97 cups per inhabitant per day. Meanwhile, the South drank the least coffee that year, averaging roughly 1.8 cups per day.

In 2022, the global pet care industry will be worth $261 billion, up from $245 billion in 2021. A 6.1 % compound annual growth rate is expected. By 2027, the compound annual growth rate (CAGR) is expected to increase to $350 billion. Despite the fact that North America and Western Europe are mature markets, there is still room for consumer spending to grow compared to global growth.

The global pet care industry is estimated to reach USD 202.6 billion by 2025. Pet adoption is predicted to increase demand for high-end pet care items.

Boarding, grooming, and training services are becoming more accessible to owners because of technological advancements. According to Wakefield Research, Sixty-nine percent of millennials are likely to use technology to follow their pets. Health behaviors, dietary intake, and playtime may all be tracked using apps. Pet care service providers offer regular care, and built-in calendars remind owners of it. Pet cameras and automatic feeds are becoming more popular among millennials and others. Pet walkers and sitters may be found via Wag and DogVacay on mobile devices. Finding Rover matches missing dogs with their owners using face recognition technology. Continued innovation is expected in the services business.

Dog Café business plan industry analysis

While working on the industry analysis section of the Dog Café business plan make sure that you add significant number of stats to support your claims and use proper referencing so that your lender can validate the data.

Pet product and retail service sales in the United States hit $107 billion in 2020, up 9% from the previous year, owing to a COVID-19-driven increase in the pet population. All pet and veterinary business trends now intersect with retail channel buying patterns, from how and why we acquire new pets to which pet care services we utilize and where.

Several reasons, including the pet sector’s re-confirmed recession resiliency, indicate a highly favorable short- and long-term prognosis for the pet business. Throughout the Christmas/Winter Holidays 2020, there was a boom in pet purchasing and adoption across all pet categories. And, notwithstanding COVID, most pet care expenditure is discretionary after pets are adopted, as seen by solid pet product sales and veterinarian service revenues. Furthermore, the pandemic’s stay-at-home and work-from-home dynamics have strengthened human-animal ties, encouraging pet owners and “pet parents” to spend lavishly on pet care items and services in order to keep their dogs (and themselves) healthy and happy.

Marketing Plan

A key part of the marketing plan in a Dog Café business plan is the marketing budget. The growth in the number of customers is proportional to the budget and dependent on the CAC.

Dog Café business plan promotional budget

Dog Events: To attract customers’ attention, we create events for dogs and encourage dog owners to join.

Online Advertisement: Following the trend of surfing the Internet every second of customers, Online advertisement has become a blatant tool used by every business. The Dog Café will be promoted on Facebook, Instagram, and other social media platform.

Gifts & Vouchers: The Dog Café presents gifts and vouchers to our customers to show our appreciation for your contribution to our success. 

Word of Mouth: Nowadays, word of mouth is a powerful tool that contributes an essential part to success or failure. By excellently treating every customer with our conscientiousness, we expect our positive service to be spread.

Promotional Brochure: A brochure with The Dog Café logo will be distributed, and the leaflet contains thorough information about The Dog Café.

Organogram

Dog Café business plan organogram

Financial Plan

This section of the Dog Café business plan helps your lender figure out whether you will be able to pay off the loan, whether the business is sustainable, what are the growth prospects, etc.

Earnings:

Dog Café Business Plan Financial Plan

Break-Even Analysis:

Dog Café business plan financial plan

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase528%193%133%87%
COST of REVENUE
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
CASH FLOW from INVESTING ACTIVITIES
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
CASH FLOW from FINANCING ACTIVITIES
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet:

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
CURRENT ASSETS
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
LIABILITIES
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
EQUITIES
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122