SWOT Analysis Example for a Coffee Shop

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Example SWOT for a Small, Local Coffee Store

This is a list of potential ideas to include in your SWOT analysis for a coffee shop business. Remember that these are SWOT ideas only and you need to choose (and modify) the ones that make the most sense for your business situation.

And please  note that this coffee shop SWOT analysis was generated using the free  SWOT analysis Excel template (read more or review the video at the bottom of this page) that you can download for free.

Download your free SWOT analysis Excel template here… free-SWOT-maker-Excel-template

Possible Strengths for a Coffee Shop

  • High quality coffee (coffee brand served)
  • High quality coffee (the way the coffee is prepared)
  • Unique coffee recipes and flavors
  • High customer service levels
  • Effective sales and service culture (good at cross-selling)
  • Good team culture
  • Highly motivated staff
  • Team-based culture
  • Clear value proposition
  • Close to the customer (strong customer relationships and rapport)
  • Effective niche marketer (unique coffee menu and selective target market)
  • High share of target markets
  • Strong net promoter scores = high customer satisfaction and customer referrals
  • Strong share-of-customer (customers buy most of their coffee at this store)
  • High quality products (other menu items, such as food choices)
  • Attractive store design and layout (known as servicescape in marketing terms)
  • Customer-centric strategy = focused on the customers’ needs and preferences
  • Able to charge a price premium
  • Consumer “love” for the brand = good referrals, WOM, and online reviews
  • Positive attitudes to the brand
  • High ratings on review websites
  • Good location (high traffic, convenience, near a large business, easy parking)
  • Flexible ordering options
  • Busy, energetic atmosphere = always full of customers

Please scroll down for a video that explains some of these SWOT points

Possible Weaknesses for a Coffee Shop

  • Operates a single store model = limited sales area coverage
  • Weak financial reserves
  • Poor location
  • High cost location
  • High overall costs relative to average customer sales
  • Reliance on regular customers only = and a lack of new customers
  • Reliance on manual systems = no apps, QR menus, or automation
  • Limited access to marketplace data = no insight to customer needs
  • Difficult to access to capital and funding
  • Limited market share
  • Difficult to generate publicity in local media
  • Reliant on one main channel = in-store only, no delivery options
  • Low brand awareness
  • Limited social media success
  • No company app (for menu and ordering)
  • Static website
  • Weak bargaining power with suppliers = resulting in higher costs
  • Broad competitive set
  • Cost disadvantage (with a one store model)
  • Low barriers to entry to the market
  • Many substitute competitive products
  • Strong existing competitors
  • Limited cross-selling by staff
  • Small number of online reviews

Please scroll down for a video that explains some of these SWOT points

Possible Opportunities for a Coffee Shop

  • Grow customer loyalty/retention
  • Develop and implement a loyalty program
  • Add more product line extensions = more coffee choices
  • Introduce or broaden food menu
  • Develop a customer relationship culture = learn names and orders
  • Build stronger customer relationships
  • Develop an innovation culture = lots of new ideas
  • Expand our number of stores/outlets
  • Move to a franchisee model
  • Broaden our geographic reach = delivery, more stores
  • Pursue co-branding opportunities
  • Attract new customers through special offers
  • Improve the overall customer experience
  • Enhance the look/feel of the store
  • Tap into the demand for home delivery services
  • Partner with Uber Eats (or similar)
  • Increase margins across-the-board = higher prices
  • Add increased product augmentation = service, fun, information, events
  • Broaden  our product range to target new segments = dietary, kids
  • Build our brand awareness with local promotion
  • Create/build “consumer love” for our brand
  • Develop relationships with online “influencers”
  • Introduce an app or QR menu for ordering
  • Hold events in quiet hours (or days)

Please scroll down for a video that explains some of these SWOT points

Possible Threats for a Coffee Shop

  • Increasing coffee prices
  • Buying non-Fair Trade coffee brands
  • Limited ability to meet cash flow requirements
  • Limited profit levels
  • Consumers becoming more price sensitive
  • Poor ratings on review websites
  • Increase in supplier costs – rental and staff costs
  • Staff turnover issues
  • Weak bargaining power abused by suppliers
  • Being under-priced by more efficient competitors
  • Competitors providing more “value add”
  • Competitors targeting our key customers/segments
  • More aggressive competitor behavior
  • New competition
  • Tend away from coffee to other beverages
  • Need to be seen as socially active or environmentally focused
  • Health and cleanliness concerns

Video Overview of a Coffee Shop SWOT Analysis

SWOT ANALYSIS Summary For a Coffee Shop (Image)

Note: This output was produced by the free SWOT Excel template – available for immediate download at the top of this page.

example SWOT for a Coffee Shop

Video on How to Use the Free SWOT Analysis Excel Template – So You Can Design Your Own Banking SWOT

Quick Overview: What is SWOT Analysis? (A Marketing Perspective)

SWOT analysis is a tool designed to evaluates an organization’s strengths, weaknesses, opportunities, and threats in order to identify and construct a marketing strategy.

For marketers, usually the central elements of the SWOT is the intersection of STRENGTHS and OPPORTUNITIES . This is because, as marketers, we are seeking to leverage our competitive advantage/s into new areas of growth and opportunity.

Our strengths are the INTERNAL components of the organization that provide it with a competitive advantage in the marketplace. In terms of marketing, we are typically looking for strengths in the areas of:

  • Brand equity and loyalty
  • Customer loyalty and satisfaction
  • Product positioning
  • Product quality
  • Product range
  • Locations/channel advantages
  • Logistics
  • Cost structure (for pricing)
  • Service levels

And then we ideally want to MATCH some of these strengths to opportunities, especially in the areas of:

  • Emerging customer needs and trends
  • New consumer segments
  • Technology development (for new products)
  • New channels (and partners)
  • Marketing automation tools and AI
  • Enhanced customer experience needs
  • Market development and growth
  • Customer relationships and customer lifetime value

NOTE: Obviously, most businesses will also need to consider weaknesses and threats – but the above simplified description is an ideal starting point for marketing strategy development.

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About The Author

Geoff Fripp is a highly experienced marketing lecturer, a published textbook author, and has had an extensive corporate career in marketing. He has taught marketing at all levels for more than 20 years across ten different Australian universities, and has held senior marketing roles at six firms, primarily in the financial services sector.

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