Convenience Store Soda Fountain Business Plan

Executive Summary

With the continued growth of OSU-Cascades' Bend campus and Bend's tourism economy, The Coffee Break will start business to provide convenience while still maintaining nutrition and satisfaction. Market research shows a promising demographic in females, and people over 55 years of age. We will facilitate their demands by offering great food in a timely manner. Also, The Coffee Break will have a small coffee bar, soda fountain, and ice cream case for those who wish to take time from their day to enjoy a delicious refreshment.

Our three main targeted markets are students, business people, and tourists. All of these segments appear to be growing in size and demand. Our prime location will facilitate convenience to many of our customers.

Keys to Success

The Coffee Break's keys to success are:

1. Located near OSU-Cascades, local businesses, and Bend's tourist attractions, the customer base will be ever growing.
2. First in the area to combine a walkable convenience store with a nostalgic coffee bar and soda fountain setting.
3. Flexible hours to incorporate both peak and off-peak customers.
4. Unique and high-quality goods at reasonable prices, backed by mobile ordering and a simple loyalty program.

Objectives

The Coffee Break will be a convenience store for busy college students, local business employees, and tourists. It will soon rise to be the trendy place to shop for quick needs and a little relaxation to a busy day. To achieve this, The Coffee Break will:

1. Generate $285,000 of sales in year 1, growing to roughly $440,000 by year 3, across four revenue streams: coffee and espresso drinks, convenience retail, ice cream, and soda fountain beverages.
2. Realize a blended gross margin of approximately 60% each year, reflecting the stronger margins on coffee and fountain drinks relative to resold convenience retail items.
3. Show a net profit by the end of year 1, growing to a healthy double-digit margin by year 3 as the business matures.

Mission

The Coffee Break will set a new precedent for local standards. No longer will convenience stores, ice cream shops, coffee stands, and relaxation be offered separately, but will be combined at one location for convenience and ease. Regardless of the 5 minute customer, or the browser, everyone will feel at ease at The Coffee Break and return for that same level of comfort.

Opportunity

Problem Worth Solving

Students, business people, and tourists around the OSU-Cascades campus and downtown Bend need a fast, walkable stop for coffee, a quick bite, and everyday essentials, without the compromises that come with the closest existing options.

Drive-thru coffee chains are everywhere in Bend but require a car and offer little beyond coffee. National convenience chains are fast and cheap but treat quality as an afterthought. Standalone coffee shops cater to people who want to linger for hours, which doesn't serve someone with 10 minutes between classes or a meeting. None of them let a customer grab a good coffee, a healthy snack, and a hand-scooped ice cream in one stop, order ahead from their phone, and be in and out in minutes.

With OSU-Cascades continuing to grow its Bend campus and tourism remaining one of the region's largest economic drivers, demand for a single, walkable, quick-service stop that does coffee, convenience, and a nostalgic soda-fountain treat all at once is only increasing.

Our Solution

The Coffee Break combines four things Bend customers currently have to visit separate businesses to get, all in one 2,000-square-foot, walkable location near OSU-Cascades:

A coffee bar built around a local Bend-area roasting partner, serving espresso drinks and drip coffee at a quality level closer to a dedicated coffee shop than a convenience store, but built for speed.

A classic soda fountain and hand-scooped ice cream counter, sourced from a local dairy, that gives the shop a genuine third-place, nostalgic feel without slowing down the quick-stop customer.

Grab-and-go convenience essentials, sized for students and commuters: snacks, drinks, basic personal-care and travel items, and a small selection of quick, nutritious meals rather than typical gas-station food.

Mobile ordering and a simple loyalty app, so regulars, especially business people and staff on tight breaks, can order ahead and skip the line entirely.

Together, this bundle lets us serve three very different customer needs, a fast coffee run, a nostalgic treat, and an emergency convenience-store trip, without asking any of them to compromise on speed or quality.

Target Market

The Coffee Break serves three customer segments around the OSU-Cascades campus and downtown Bend, each growing at a different pace:

OSU-Cascades students need a fast, affordable stop between classes that doesn't require a car — coffee, a quick snack, and basics like phone chargers or notebooks, ordered ahead on their phone when they're short on time between back-to-back classes.

Tourists visiting Bend's breweries, trails, and Mt. Bachelor want a local, photogenic stop for coffee and ice cream that feels like part of the Bend experience rather than a chain pit stop — Bend draws well over 2 million visitor trips a year, and that traffic is concentrated in exactly the walkable corridors near our location.

Business people and local workers are repeat, weekday customers who value consistency and speed over novelty — a reliable order they can grab on a five-minute break or have ready for pickup.

All three segments overlap in what they actually want: speed, a consistently good product, and the option to order ahead — which is why mobile ordering and a simple loyalty program are core to how we compete, not an add-on.

Competition

The Coffee Break competes across four categories, each with a different edge:

National convenience chains (7-Eleven, Circle K, and gas-station marts near Highway 97) win on footprint but optimize purely for speed and low price. We match their speed for grab-and-go items while offering meaningfully better coffee, fresher food, and a place to sit.

Drive-thru coffee chains — Bend is Dutch Bros' home turf, and drive-thru coffee stands are everywhere in town. They're fast but car-dependent and offer little beyond coffee. We win with walkability for the campus and downtown foot-traffic crowd, plus ice cream, soda fountain, and convenience items they don't carry.

Third-wave and campus coffee shops cater to customers who want to sit and work for hours. We deliberately serve a different need: quality coffee for people who want to keep moving, backed by mobile order-ahead so a great cup doesn't cost them a 10-minute wait.

Grocery store delis and ice cream parlors are the closest thing to a one-stop substitute, but none combine convenience retail, a coffee bar, and hand-scooped ice cream in one walkable stop near campus. That combination, plus our location, is our durable edge — it's a bundle no single nearby competitor currently offers.

Execution

Marketing Plan

Our marketing plan is built around the same three segments we sell to: students, tourists, and local business people, reached through low-cost, mostly digital channels rather than paid mass advertising.

Digital-first local presence. A fully built-out Google Business Profile and Instagram account anchor our marketing, since both students and tourists searching for coffee near campus or Bend, Oregon coffee are our highest-intent traffic. We photograph the soda fountain and ice cream case regularly, since it is inherently shareable and drives organic tourist foot traffic.

Mobile ordering and loyalty. A simple mobile ordering and punch-card-style loyalty app, built on a platform like Square or Toast, lets regulars (especially business people and OSU staff) order ahead and skip the line, and gives us a direct channel (push notifications, email) for slow-season promotions.

Campus partnerships. We work directly with OSU-Cascades student services and orientation programs to get in front of incoming students each fall, with a flyer drop during welcome week paired with a first-week discount redeemable through the app.

Word of mouth and reviews. Given our small local market, reputation compounds fast: we actively prompt satisfied customers for Google and Yelp reviews and respond to all of them, since review volume and rating meaningfully affect walk-in traffic in a town this size.

Modest paid spend. A small monthly budget supports boosted local social posts during peak tourist season (summer, ski season) rather than broad advertising, since our addressable market is geographically tight.

The Campus Commuter

Maya Rodriguez

A senior at OSU-Cascades balancing a heavy course load and a part-time job. She needs a reliable spot for a quick, healthy lunch and caffeine between morning lectures and afternoon labs, especially since on-campus options close before noon.

Age

22

Location

Near Westside, Bend, OR

Family Status

Single, living in a shared rental with 3 roommates

Education

Senior Undergraduate Student in Biology

Profession

Student and part-time Retail Associate

Opportunities

• Capture the student market after Study Grounds closes at 11:00 AM by offering consistent afternoon and evening service.
• Implement a 'Digital Punch Card' through the mobile app to encourage daily visits for coffee and snacks.
• Eliminate the $0.50 to-go cup upcharge seen elsewhere on campus to build immediate goodwill and price-competitiveness.

Pain Points

• On-campus coffee shop (Study Grounds) closes too early in the morning
• Lack of healthy, protein-rich meal options within walking distance of the Cascades Overlay Zone
• Frustration with additional fees for to-go containers at existing campus outlets

Needs

• Mobile ordering to facilitate 10-minute turnarounds between classes
• Affordable, high-quality meals under $10
• Walkable access from the SW Century Drive roundabout area

“I have exactly 15 minutes between my capstone and my shift; I need a real lunch that doesn't come from a vending machine.”

The Tech-Forward Professional

David Miller

A consultant working near the OSU-Cascades Innovation District. He is often on the go between meetings and needs a premium experience that respects his time. He appreciates the all-in-one nature of specialty coffee and high-end convenience.

Age

48

Location

Northwest Crossing, Bend, OR

Family Status

Married, 2 children (ages 14 & 16)

Education

MBA

Profession

Independent Business Consultant

Opportunities

• Offer high-margin, artisanal meal kits and specialty coffee beans to cater to the high median income ($104k+) of his demographic.
• Position the shop as the 'Trendy Hub' for the 2026 InventOR Finals and local tech workers for quick refreshes.
• Leverage mobile ordering and a simple checkout process to serve the 5-minute customer who prioritizes time over price.

Pain Points

• Wasting time in slow-moving 'third space' cafes where people linger for hours
• Poor quality food and coffee at standard 24-hour convenience stores
• Lack of high-end 'quick stop' options near the Innovation District

Needs

• Top-tier specialty coffee (espresso) that rivals standalone cafes
• High-speed service and reliable mobile app integration
• Premium convenience items like quality charcuterie or local artisanal goods

“I’m happy to pay for quality, but I’m not happy to wait 20 minutes for it. I need a spot that understands the value of my time.”

The Active Retiree

Marti Henderson

A long-time Bend resident who enjoys walking the river trails and visiting the Innovation District. She values nostalgic experiences like soda fountains but is very selective about nutrition, prioritizing high-protein and low-sugar options.

Age

68

Location

Old Mill District, Bend, OR

Family Status

Retired, grandmother of four

Education

Master's in Education

Profession

Retired Elementary School Teacher

Opportunities

• Stock high-protein, low-sodium snacks and low-sugar ice cream options specifically targeting the 45% of older adults seeking functional foods.
• Market the soda fountain and hand-scooped ice cream as a 'modern-day general store' to appeal to her appreciation for quality and tradition.
• Provide a clean, safe, and aesthetic seating area that differentiates the business from gritty national convenience chains.

Pain Points

• Traditional convenience stores feel 'unhealthy' and uninviting for women and seniors
• Difficulty finding high-protein snacks that aren't processed junk food
• Long lines and car-centric designs at local drive-thru coffee stands

Needs

• A clean, walkable 'third space' to take a break during her daily walk
• Clearly labeled dietary information for low-sugar and low-salt snacks
• High-quality, hand-scooped treats for when her grandkids visit

“I want the charm of an old-fashioned soda fountain, but I still need to watch my sugar and stay active.”

Sales Plan

Sales at The Coffee Break are driven primarily by location, speed, and atmosphere. We maintain a fun, relaxed environment with well-stocked shelves and fountain offerings, starting with two months of inventory to gauge initial demand and adjust distributor orders quickly.

Mobile ordering and our loyalty app give us a second sales channel beyond walk-in traffic, letting business people and repeat campus customers place orders ahead of arrival, which increases average transaction frequency without adding wait time at the counter.

Sales fluctuate seasonally, peaking during the winter ski season and late summer when Bend tourism is strongest, and dipping during OSU-Cascades' summer session when student traffic is lower. See the Financial Plan chapter for our detailed revenue forecast by year.

Word-of-mouth and online reviews from students and business customers are our primary growth engine after the initial campus launch campaign.

Locations and Facilities

The Coffee Break is located in Bend, Oregon, within easy walking distance of the OSU-Cascades campus and surrounding local businesses. There are no plans to expand into additional locations at this time; staying a single, well-run location lets us keep quality and service consistent while customers get to know us as a neighborhood fixture.

Operations are based in a 2,000-square-foot building with a layout built around fast in-and-out traffic: a counter with bar stools near the soda fountain and a few small tables for customers who want to sit for a few minutes, without disrupting the flow of quick-stop shoppers.

The space includes bike parking, given our proximity to campus, and is ADA accessible. A small patio area provides additional seasonal seating during Bend's warmer months, which line up with peak tourist traffic.

Technology

Technology at The Coffee Break is chosen to support speed and convenience for customers while keeping the shop's nostalgic, welcoming feel front and center.

A modern point-of-sale system (a platform such as Square or Toast) handles in-store checkout, integrated mobile ordering, and our loyalty program, so a regular customer can order ahead from their phone and pick up without waiting in line.

Inventory management software tracks stock across our fast-moving categories, coffee, dairy, and grab-and-go items, and flags reorder points automatically so we don't run short during a tourist-season rush or a campus event.

On the equipment side, a commercial-grade espresso machine and a classic-styled soda fountain give us professional-quality drinks with a nostalgic look and feel, and high-efficiency coolers and display cases keep beverages, dairy, and perishables at the right temperature while controlling energy costs.

We rely on cashless payment options (tap-to-pay, mobile wallets) alongside cash, and monitor our Google and Yelp listings closely, since online reputation has an outsized effect on foot traffic in a market our size.

Equipment and Tools

Start-up equipment for The Coffee Break includes:

• A commercial espresso machine and drip coffee brewing system, sized for peak-hour throughput without long customer waits
• A classic-styled soda fountain and hand-scooped ice cream case, sourced to match the nostalgic look and feel described in Our Solution
• High-efficiency walk-in coolers and refrigerated display cases for beverages, dairy, and perishable food items
• Tables, chairs, and counter seating with bar stools for the small seating area, plus outdoor patio furniture for seasonal use
• Retail shelving and bookstands for convenience goods, magazines, and grab-and-go items
• A point-of-sale system with integrated mobile ordering and loyalty-program support (see Technology), plus a cash drawer and card reader
• Basic store fixtures: signage, trash/recycling stations, and security cameras

Most of this equipment is expensed at start-up (budgeted at $225,000, per the Financial Plan's Use of Funds), alongside minor building renovations to support customer flow, inventory storage, and delivery access. Coolers and refrigerated cases are specified for reliable temperature control across beverages, dairy, and perishable foods, since a failure here directly threatens both food safety and the ice cream/soda fountain experience that differentiates the shop.

Equipment is expected to need routine maintenance contracts (particularly for the espresso machine and coolers) rather than full replacement within the first three years; Bree budgets a modest annual maintenance reserve outside of the start-up equipment figure to cover this.

Milestones

Key Metrics for Success

The Coffee Break will track these key performance metrics:

Year 1 margins are intentionally thin while the business absorbs full-year rent, insurance, and a fully staffed payroll from day one; profitability strengthens quickly in years 2 and 3 as revenue grows faster than fixed costs.

Beyond the blended figures, The Coffee Break also tracks margin by revenue stream, since Coffee & Espresso Drinks and Soda Fountain & Beverages run meaningfully higher margins than Convenience & Grab-and-Go Retail; shifting the sales mix toward coffee and fountain drinks is a lever for improving profitability without raising prices. Additional operational metrics include average transaction value, inventory turnover (roughly 8 times annually), and customer mix across OSU-Cascades students, tourists, and business people. Mobile order volume through the loyalty app is also tracked as a leading indicator of repeat-customer engagement. Seasonal patterns tied to the academic calendar and Bend tourism (winter ski season, summer tourist season) are monitored monthly to adjust staffing and inventory ahead of demand swings rather than reactively.

Company

Ownership and Structure

The Coffee Break operates as a sole proprietorship owned and managed by Bree Sallee, a long-time Bend resident with deep knowledge of local customer trends and 15 years of experience in retail and food service. As owner/manager, Bree oversees daily operations, purchasing, staffing, and customer service while building The Coffee Break into a trusted, walkable destination near the OSU-Cascades campus.

As the business grows past its first year, Bree plans to promote a shift lead from the existing staff to help manage scheduling and day-to-day operations during peak tourist and academic-year periods, rather than adding another owner or partner.

Management Team

Bree Sallee is owner and manager of The Coffee Break. She holds a bachelor's degree from Boise State University and brings 15 years of retail and food-service experience, including several years managing a multi-location coffee and convenience retailer in the Pacific Northwest, giving her firsthand experience with inventory, staffing, and seasonal demand swings similar to what The Coffee Break will face in Bend. She has lived in Bend for 15 years and has a strong working knowledge of the local customer base, tourist patterns, and the OSU-Cascades academic calendar.

Bree handles purchasing, supplier relationships, staffing, and day-to-day operations directly during the first year. As the business establishes a steady customer base, she plans to hire and train a shift lead from the existing student staff to help cover scheduling and opening/closing duties during peak periods, rather than bringing on an outside manager.

Given the size of the operation, The Coffee Break does not plan to build out a larger management team in the near term; staffing decisions will be reevaluated annually against revenue and customer demand.

Advisors

At launch, The Coffee Break does not maintain a formal advisory board. Owner Bree Sallee draws on 15 years of local market knowledge, retail and food-channel experience, and existing relationships with Bend-area distributors, a local dairy supplier, and the OSU-Cascades community.

Bree works with a Bend-based small-business mentor through SCORE for periodic guidance on operations and growth planning, and retains a local accountant familiar with food-service businesses for tax preparation and bookkeeping review. As the business grows, Bree plans to add a food-service industry mentor and a local attorney for lease and compliance matters.

Financial Plan

Revenue

Expenses & Costs

Profitability

Use of Funds

Start-up funding of $266,000 will be deployed as follows:

Major start-up expense items include expensed equipment ($225,000), one month of rent ($1,500), insurance ($425), and legal/stationery costs. Inventory covers an initial one-month supply, with 15–20 day turnaround expected after opening.

Sources of Funds

The Coffee Break is funded through owner equity and short-term borrowing:

The $50,000 loan carries a 10% annual interest rate with principal repaid over 48 monthly payments (~$12,500/year). Forecast interest expense is included in operating costs. Owner investment of $216,000 covers the majority of start-up equipment, inventory, and working capital needs.

Projected Statements

The Coffee Break is projected to grow revenue from $285,000 in year 1 to $396,000 in year 2 and $440,000 in year 3. Revenue comes from four distinct streams: Coffee & Espresso Drinks (the largest, at roughly 40% of sales), Convenience & Grab-and-Go Retail (about 35%), Ice Cream (about 15%), and Soda Fountain & Beverages (about 10%). Blending each stream's own cost of goods produces an overall gross margin of roughly 60%, since the coffee, soda, and ice cream categories carry meaningfully better margins than resold convenience retail items.

Net profit is modest but positive in year 1 (about $5,000) and grows to a strong double-digit margin by year 3 (about $71,000, or roughly 16% of revenue).

Cash on hand never dips below approximately $244,000 across the forecast, after an initial funding position of $266,000, and climbs steadily to roughly $355,000 by the end of year 3 as the business builds a cushion beyond its working capital needs.

See the Revenue, Expenses & Costs, and Profitability charts in this chapter for the year-by-year breakdown by stream, and the Key Assumptions section for the underlying growth, margin, and cost assumptions.

Key Assumptions

Revenue mix and cost assumptions:

Revenue is modeled across four category streams rather than a single blended total, each with its own realistic cost of goods:

• Coffee & Espresso Drinks (~40% of revenue): 25% cost of goods (beans, milk, cups)
• Convenience & Grab-and-Go Retail (~35% of revenue): 65% cost of goods, typical for resold retail/convenience items
• Ice Cream (~15% of revenue): 32% cost of goods
• Soda Fountain & Beverages (~10% of revenue): 20% cost of goods

Other assumptions:

• Plan starts January 2026 with a 5-year forecast horizon
• No gasoline sales; focus on coffee, convenience goods, and ice cream/soda fountain items
• Owner investment of $216,000 plus $50,000 in borrowing at start-up
• Payroll includes employer burden on W-2 staff, with wages set above Deschutes County's minimum wage
• Seasonal revenue peaks in winter (ski season) and late summer (tourism), consistent across all four revenue streams