Asia has long since popularized animal cafes, but in recent years, they have begun to appear in other places around the globe, targeted primarily at felines. Canada, New Zealand, and a few other countries now play host to multiple cat cafes, and they are starting to pop up in the United States as well.
While many people have not heard of them a cat cafe is a relaxing location that welcomes friends who enjoy spending time together as well as being surrounded by cats, while both enjoy some refreshing beverages and snacks. Many cat cafes also double as housing shelters for cats presenting them to visitors as being available for adoption.
If you are a cat lover and enjoy the patronage of people who share your admiration for furry little felines, you might be thinking about joining the quickly expanding world of cat cafes. But how do you go about it? We did the research and put together this helpful 10-step process for getting your cat cafe business off the ground. While registering your business with the state is only one aspect of setting up your business, with multiple other facets to consider.
HOW TO START A CAT CAFE
Step 1: Planning Your Cat Cafe Business
Entrepreunrships of any nature must always start with a solid business plan. The business plan lays out the roadmap for your business, outlining the specifics, and exposing unknown areas that the entrepreneur can then focus on exploring. Among others, some of the aspects addressed by the business plan include the estimation of start-up and operational costs, target market, price points for products and services offered, and a business name.
Start-Up Costs For A Cat Cafe Business
Starting a cat cafe is not an inexpensive venture. Some of the cost considerations to get one off the ground include:
- Acquiring or leasing a location for the business
- Building a feline-friendly space
- Putting a “point of sale” system for your cafe’s products
- Purchasing and installing food and beverage preparation equipment
- Stocking up on food and water dishes for cats
- Stocking up on litter, litter boxes, and cat pods
- Stocking up on ingredients for preparing all of the items offered on the menu for human customers
Owners who wish to minimize initial costs might skip purchasing the materials and equipment for food prep. A cat café business can collaborate with a local cafe that will prepare the meals rather than produce food and beverages on-site. When Kanchan Singh founded Crumbs & Whiskers, she leveraged this type of arrangement. After taking orders from guests, an employee would order and retrieve food and beverages at a nearby café and bring them back to the cat cafe.
What Is Included In The Operating Expenses Of A Cat Cafe?
Much like the start-up costs, the operational costs of a cat cafe are substantial. Aside from the resupply of products and a host of cat-care expenses, operating expenses also include rent and utility payments, employees’ wages, and the replenishment expenses of food.
What Is A Cat Cafe’s Target Market?
The target market for a cat cafe is, of course, anyone who loves cats and likes to be in their company. However, “cat people” might show up at the cafe for a variety of reasons. Some people don’t have their own cats but enjoy the company of lovable felines, so they will show up to cat cafes to spend time with the animals. People also like to meet with friends, much like they would do at standard cafes, except both parties can bring their cats along for company too. Some people may not own cats, but could simply want to support a cat shelter they believe in.
How Does A Cat Cafe Bring In Revenue?
There are two primary revenue streams for cat cafes. The first is charging an hourly rate for their patrons to come and spend time with the cats at the cafe, and the second, generating revenue from the food that they order during their visits.
How Much Can A Cat Cafe Charge Their Patrons?
The biggest factor in how much a cat cafe can charge its customers is where the business is located. Crumbs & Whiskers in Washington, for instance, charges customers $18 to $22 for 70-minute blocks. By comparison Madison, Wisconsin’s Cat Cafe charges only $7 for a 60-minute block, with a $1 beverage included in the cost.
Some customers will opt to adopt a cat from the cafe, but their adoption fees do not generally go towards the revenue of the business, rather going to cover the vet care, food, and litter for the cat. By implementing a robust point-of-care system, a cat cafe business can more readily adjust price points based on their needs through the trending of weekly revenue reports.
What Are A Cat Cafe’s Profit Margins?
Just like revenue, the better the location of the cat cafe business, the more business it can bring in. In the example of a cafe that charges $7 per hourly visit, just 10 visitors can generate $70. Cafes that charge $20, can bring in $200 in a single hour. Since cat cafes can generally accommodate more than 10 visitors at a time, there is a fair chance that the cat cafe business can be quite profitable.
Can A Cat Cafe Business Grow Profit Margins?
After becoming established, a cat cafe business can begin to host events that tend to draw higher numbers of clients. Owners can also justify charging more for attending under the promotion of events, which means greater profits are made from such endeavors.
Naming Your Cat Cafe Business
A business’s name is very important and often challenging to come up with. If you have not figured out a name, there are great business name generators online that can help online, including those specific to generating cat cafe names. Some owners operate their businesses as sole proprietors. In that case, it is recommended that they do not name their business with their own names.
When considering names it is also important to make sure that the name is not too similar to another business, or already taken. To assist in this manner, owners should check their state’s business records and state and federal trademarks. Some web searches can also help illuminate whether the domain for one’s intended cat cafe business name is already taken and if there is already a social media presence associated with them. If a domain with a business’s proposed name is still available, it is important to secure that domain name before someone else does.
Step 2: Set Up The Legal Aspects Of Your Business
Before starting your cat cafe business, you should consider its business structure (sole proprietorship, partnership, corporation, or, most commonly, LLC). As a corporation or an LLC, your business has a level of legal cover for your personal assets against liability suits if your cat cafe is found liable.
LLCs are easy to register and only require a minimal cost to the state. For slightly higher charges, an LLC registration business can take off all the work for you. Most LLC formation packages include a free first year of services from registered agents. An owner can opt to act as their own agent too.
Step 3: Tax Registration
For the legal operation of a business, it must register for a variety of state and federal taxes. To do so, a business needs a unique identifier known as an EIN. Applying for an EIN is easy and free of charge. It can be done through a number of places including the official IRS website.
The selected business structure will influence the types and number of taxes that a cat cafe business will need to pay. Some of them, such as LLCs, get the benefits of being taxed as S corporations, for instance. Your cat cafe may also be subjected to specific taxes in your state, as well as local ordinances.
Step 4: Setting Up A Business Credit Card And Bank Account
Another essential aspect of personal asset protection is setting up a bank account and opening a credit card specifically for your cat cafe business. As a general rule, you should never mix your personal and business accounts. In the event that your business is sued, separating your business and personal assets is known as piercing the corporate veil, and is a way to safeguard things like your vehicle and your home.
Additionally, securing a business credit line and bank account affords owners better interest rates, higher credit thresholds, and multiple additional perks. Establishing a business credit card also allows for expense separation, and permits a business to keep their expenditures removed from their personal ones.
Aside from protecting personal assets, a business bank account also makes accounting and taxation easier. Many businesses opt for the very popular net-30 accounts which allow a business to conduct necessary expenditures and pay the vendors 30 days later. This is a good way to quickly acquire inventory when funds may be short. Net-30 accounts also report to all of the major credit bureaus which allows businesses to build their credit history and secure future loans when necessary.
Step 5: Set Up Business Accounting
Understanding your business’s financial success depends on keeping track of all of your costs and revenue streams. Maintaining precise and thorough records also makes submitting your yearly taxes much simpler as well.
Step 6: Secure Permits And Licences Relevant To Your Cat Cafe Business
Heavy fines and even the shutdown of your business may come from failing to get the required permissions and licenses secured. As an establishment with a heavy aspect focused on food, a range of federal regulations must be adhered to regarding the sale and preparation of your cat cafe business’s offerings. Operating a cat café can require obtaining further specific state licensing. By going to the SBA’s reference to state licenses and permits, you can find out more about the particular licensing requirements in your state.
There might be other factors, such as local ordinances that need to be adhered to. You can check with your town, city, or county government, or consult the guide for Small US Businesses for that information.
Certificate Of Occupancy
Since a cat café operates out of a physical storefront, the location is likely to require a Certificate of Occupancy or a CO. A CO certifies that all zoning laws, building rules, and other legal requirements have been complied with. If you have purchased the property of operation, you will be responsible for obtaining a CO from your local government authority, which will need to inspect the business and certify that it is in compliance with all zoning and building regulations.
Those leasing a space for a building should expect their landlord to acquire the CO, and should include in their rental agreement that payments for the location will not be issued until such time as the most updated CO is secured for the property, including a refreshed one if any significant changes to the site are warranted.
Regulations On Food Sales
As cat cafes operate with the preparation and sales of food, it is also mandatory to get an inspection and be granted a food operating license from the local health department, available on a successful pass of a health inspection.
Step 7: Insure Your Business
For safe and lawful operation, your business needs more than just certification for local ordinances and food permits. It also needs to have business insurance which will protect the well-being of the company in the case of loss. Different businesses require and qualify for different insurance policies depending on the level of risk involved in their operation. If you are not certain about the risks of running a cat cafe business, you can start your insurance with General Liability Insurance, the most common coverage for new businesses.
You should also consider Worker’s Compensation insurance, especially since you will need to have one to legally operate in any state in the country.
Step 8: Establish Your Brand
Your business’s brand is its corporate identity. Much like your personal identity, a brand speaks to what your business stands for, how others view it, and how your business is distinct from others. A brand relies on a symbol of recognition which is communicated through a logo. If you are not confident in logo design, there are great beginner guides online where you can find great advice and helpful tips for creating effective logos to represent your brand. (you can use Fiverr or Canva)
Promoting And Marketing A Cat Cafe
The most effective promotion of a cat cafe business is event hosting. These can feature speakers who give lectures on cat-related topics, hold meetings that are all about cats, or even fun events like yoga and movies with feline companions. These events drive interest in attendance, and once you have hosted some guests for the first time, they will not only potentially want to come back, they will inform their family and friends about your cat cafe establishment too.
Client Retention In A Cat Cafe
If your business has frequent attendees, offer them discounts as a thank you or a reward for being frequent customers. You can offer memberships that allow frequent patrons to have unlimited visits for a standing fee which can secure regular revenue and traffic to the business as well. Another strategy is to set up a POS system that encourages recurring visits through a loyalty program where customers can earn additional rewards for frequenting your business.
Step 9: Setting Up Your Cat Cafe Business’s Website
Once you have defined your brand and your logo, creating a business website for your cat cafe is the next necessary step. Many business owners shy away from website building due to concerns about not being technically savvy enough to put one together.
However, website design and building tools have come a long way in the last decade, so even a novice user can have a solid website put together using one of the popular website builders (WordPress, Squarespace, Weebly, WIX, Shopify, GoDaddy, etc.) and helpful website building guides, inside of just 3 hours.
Having a business website legitimizes your business. In this day and age, if your business does not have a website, then potential patrons will likely not show up thinking that it is a sham business. You might think that a LinkedIn profile or a Facebook page is sufficient, but they are mere supplements to a business website, not suitable substitutes.
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Step 10: Business Phone System Setup
One of the easiest methods to maintain privacy and separation between your personal and professional lives is to set up a business phone. Not only that, but it also helps you automate your business, offers it credibility, and makes it simpler for potential customers to locate and get in touch with you.
Entrepreneurs that wish to install a company phone system can choose from a wide range of services. The best businesses have been examined and ranked according to their cost, features, and usability.
Is The Cat Cafe Business Right For You?
A cat cafe business is a good choice in venture for extroverted people who love and are passionate about cats. The majority of conversations between business owners and patrons at a café will center on the cats there. Business owners also devote a lot of effort to taking care of the cats who live in their cafes.
What Is A Typical Day At A Cat Cafe Like?
During a typical day in a cat cafe, owners and management can expect to take care of, feed, and clean up litter boxes after cats, as well as other necessary maintenance routines. Owners will also need to track the veterinary care of animals, assuring that all the cats living in the cat cafe get any care they need and have routine health checks. When customers want to adopt a cat, their applications will need to be processed. Welcoming and overseeing the service to customers, as well as insuring that all cats are behaving appropriately and not upsetting the patrons will also be the responsibility of the ownership.
What Are Helpful Skills To Have To Be A Cat Cafe Owner?
A cat cafe business has two aspects to its operation: running a cafe and running an animal shelter. An owner of a cat cafe should be capable of and experienced in managing both. For those unfamiliar with at least one of those portions of a cat cafe business, there are a number of resources available where the knowledge can be acquired.
Owners can take online courses that cover either cafe management or running an animal shelter. These include the Coffee House Owner Certificate Course (from IAP Career College), Barista Pathway (from Specialty Coffee Association), Coffee Shop Management Training Course (from Texas Coffee School), Animal Shelter Management Certificate (From the University of the Pacific), Shelter Training and Enrichment Course (from Karen Pryor Academy), along with various formats of courses offered by ASPCA.
Beyond that, there are books including Justice for Cats, The Daily Grind, and The Complete Idiot’s Guide to Starting and Running a Coffeebar. Another great way to learn is to work at an animal shelter or cafe before starting one’s own business. These types of jobs will provide great firsthand experience in running that type of business.
Does A Cat Cafe Have Growth Potential?
The cat cafe business is still very new, especially in the US, so there is unlikely to be more than one location operating, though there are a few exceptions. For instance, Cat Cafe in Madison, WI, and Purr Cat Cafe in Brighton, MA operate from a single location, while Crumbs and Whiskers, Kitty Cafe, and Catmosphere Cafe have several. As successful ventures grow, they will increase their profitability.
The Next Step In The Process
Business Mentorship
If the cat cafe idea is the right one for you, you are likely wondering what the next logical steps in the process are. If you are new to the realm of business ventures, you will benefit from some expert advice that could come from a business mentor. A free business resource to help you in starting a business is essential to a healthy start for any entrepreneur.
Businesses are not booming right off the bat, and some fall on hard times throughout their existence, so having a supportive network of those who can help guide owners through rough waters is pivotal to success and longevity.
Resources For Women Entrepreneurs
There are quite a few resources available, geared specifically at female entrepreneurs. The Women in Business series from Startup Savant is an especially helpful resource for women looking to get into the world of business, covering every essential aspect from guides to attaining funds, support, and setting up events. Resources like this are aimed at helping women be both professionally and personally successful.
Are There Any Cat Cafe Insider Tips?
Kitty Cafe owner Kate suggests planning out the building design as the first step of operating a cat cafe business, set up with multiple different areas that include:
- A food preparation space
- An area for visitors to spend time, eat, and interact with cats
- An area exclusively for cats when they need a break from human interaction
While the areas not meant for food preparation will host humans in some cases, they should be built with the mindset of being convenient and accessible for cats as they will be the cafe’s main attraction and driving marketing force.
Building A Cat Cafe Team
It is borderline impossible for a cat cafe owner to run the establishment solo since it is a matter of operating both a shelter and a restaurant. For that reason, a cat cafe needs to have a team of personnel that can help run its day-to-day operations. From the initial opening, there should be at least a small team available to work, with additional members being added as the cafe’s business grows.
Frequently asked questions:
how to open a cat cafe in America?
To open a cat cafe in America, you will need to research local regulations, obtain proper permits and licenses, secure funding, find a suitable location, and hire staff. Additionally, you will need to work with local animal shelters or rescue organizations to source adoptable cats and develop a plan for their care. Marketing and building a community of cat lovers is also key to the success of your cat cafe.
how to open a cat cafe?
Opening a cat cafe requires careful planning and preparation. Start by researching the regulations and permits needed in your area, as well as finding a suitable location and sourcing cats from local shelters or rescue organizations. Develop a menu, set up a cozy space with furniture and toys for the cats, and hire experienced staff to manage the cafe and interact with customers and cats.
how to start a cat cafe?
To start a cat cafe, you will need to create a solid business plan that outlines your target market, startup costs, and revenue projections. You will also need to research local laws and regulations regarding food service, animal welfare, and health and safety standards. Once you have a plan in place, you can secure funding, find a suitable location, and begin designing and decorating your space.