My plan

How to Start a Coffee Shop in Arizona

A coffee shop's success is mostly decided before opening day: location, lease terms, and a menu that fits a fast workflow. Food-service permits mean longer lead times than service businesses.

Reviewed November 5, 2026 · Sources linked inline

Arizona requirements for this business

  • In Tucson, the city's commercial restaurant permitting guide says a new menu must be submitted to the Health Department with plans for review. [source]
  • Pima County Health Department publishes plan review requirements and an application packet for food establishments. [source]
  • Businesses operating inside Tucson city limits need a City of Tucson business license. [source]
  • Arizona businesses selling taxable goods generally need a TPT license from the Arizona Department of Revenue. [source]

Statewide steps for every Arizona business — forming an LLC with the Arizona Corporation Commission, trade names, TPT and employer registration — are on our Arizona licensing page.

City checklists for this business: Phoenix · Tucson — local requirements and documented fees, pre-filtered for a coffee shop business.

These are the Arizona facts we have verified so far, not a complete list. City and county rules vary — check with your local government before opening.

Startup costs

We haven't found a reliable published cost range for this business, so we don't show one. Costs vary widely by market, equipment and whether you buy new or used. Plug your own quotes into the worksheet:

Open a coffee shop cost worksheet →

SBA 7(a) loans in this industry

Snack and Nonalcoholic Beverage Bars (NAICS 722515): 2,874 loans approved in FY2024–FY2026. Median loan $290,350; middle half $75,000–$524,600.

Loan size is not startup cost — these loans also fund acquisitions, real estate and working capital. Full breakdown and caveats →

How much competition is there?

Census industry: Snack and Nonalcoholic Beverage Bars (NAICS 722515)

In Arizona: 1,741 employer establishments (2023) and 469 businesses without employees (2024). Nationwide: 85,140 employer establishments (2023) and 22,060 businesses without employees (2024).

See counts for your county → Counts aren't a measure of saturation — see the caveats on the tool page.

Equipment and supplies

  • Commercial espresso machine and grinders
  • Batch brewers
  • Under-counter and reach-in refrigeration
  • Ice machine
  • Three-compartment sink and handwashing sink (health code)
  • POS system

Licenses and registration

  • Register your business entity.
  • Health department food establishment permit and plan review.
  • Food handler or manager certification for staff, as required locally.
  • Local business license, sign permit and certificate of occupancy.
  • Sales tax registration.
  • Get a free Employer Identification Number (EIN) from the IRS if you will hire employees or form an LLC or corporation. Beware of sites that charge for this. [source]
  • Register an LLC or corporation with your state's business registration office (sole proprietors usually register a trade name/DBA instead). [source]

Insurance to consider

  • General liability
  • Property and equipment
  • Business interruption
  • Workers' compensation
  • Product liability

Get quotes from several carriers or an independent agent; coverage needs depend on your contracts, state and staff.

Financing options

  • SBA 7(a) loans — the SBA's main guaranteed loan program, made through participating lenders. [source]
  • SBA Microloans — smaller loans delivered through nonprofit intermediary lenders. [source]
  • SBA Lender Match — a free tool that connects you with interested SBA lenders. [source]
  • Free counseling from your local SBDC or SCORE chapter can help you build the business plan lenders ask for. [source]

Estimate payments with the loan calculator, then check runway with the cash flow projection.

Ongoing operating expenses

  • Rent
  • Coffee, milk and food cost
  • Labor
  • Utilities
  • Card fees
  • Repairs
  • Marketing

Use the break-even calculator to see how many jobs or sales cover them, and the employee cost calculator for staffing.

Common mistakes

  • Choosing a location for rent price instead of foot traffic
  • Signing a lease before health plan review
  • Overbuilding the menu
  • Underestimating pre-opening time and costs

Finding customers

  • Google Business Profile with photos and hours
  • Wholesale or office catering
  • Loyalty program
  • Community events

Startup checklist

Ticks are saved on this device and appear on My plan.

Compare with other businesses

Sources