Startup cost
$25k–$250k
TRUiC Business Ideas
Decision Snapshot
Idea Score
44
Startup cost
$25k–$250k
Profit margin
3%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Rising
5-yr failure rate
—
Capital intensity
Very high
Time commitment
Full time

Animal cafes have been popular in Asia for several years, and now they’re starting to appear in other parts of the world in the form of cat cafes. There are several cat cafes in New Zealand and Canada, and a few are beginning to appear in the United States.
Cat cafe businesses offer people a place to relax with friends and felines, while they also enjoy a beverage or meal. In addition to serving human customers, many cafes also help the cats they house by making the cats available for adoption.
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Our guide is in 3 parts:
The startup costs associated with opening a cat cafe business are substantial. Some of the more sizable expenses include:
Purchasing or leasing a space for the cat cafe
Building out the space so that it’s feline-friendly
Getting a Point-of-Sale system for selling your cafe products
Buying food preparation equipment for making food and drinks
Buying cat pods, litter boxes, food and water dishes, food and litter
Buying the ingredients for preparing customers’ food and beverages
Business owners who want to keep startup expenses low can forgo the food preparation equipment and ingredients. Instead of making dishes and beverages on-site, a cat cafe business can partner with a nearby cafe that’ll make the dishes. Kanchan Singh used this setup when she opened Crumbs & Whiskers. An employee would take customers’ orders, and then go pick up the food and drinks at a nearby cafe and bring them back to the cat cafe.
The ongoing expenses of a cat cafe business are substantial. They include rent, utilities, food costs, employees’ wages and all the expenses that come with caring for cats.
The target market of a cat cafe business is people who love cats. Cat lovers may come for a variety of reasons:
To spend time with cats if they themselves don’t have one
To hang out with friends in a fun environment
To support a shelter they believe in
Cat cafe businesses make money two ways. They charge customers by the hour for the time that customers spend with cats, and they charge customers for the food and beverages they order.
How much a cat cafe business can charge customers varies a lot depending on where the cat cafe is located. For instance, Crumbs & Whiskers in Washington, D.C. charges between $18 and $22 for a 70-minute visit. Meanwhile, Cat Cafe Madison in Madison, Wisconsin charges $7 per 60-minute visit, which includes $1 for a beverage.
Customers who adopt cats typically pay an adoption fee, but businesses don’t usually make money off of this fee. Instead, it simply helps cover necessary veterinary care, food, litter and similar expenses. A smart POS system can produce weekly reports for a cafe that can be used for fine-tuning the prices.
When located in a popular area, a cat cafe business can bring in a significant revenue. Even at $7 per person, just 10 visitors can generate $70 in an hour. At $20 per hour, the revenue increases to $200 per hour with 10 visitors. Moreover, a cafe can often hold more than 10 visitors.
Once established, a cat cafe business can increase its revenue by hosting events. Events often draw lots of people in, and a business can charge more for each person because there’s a special event taking place.
A typical day at a cat cafe involves:
taking care of cats (i.e. giving them food and water, changing their litter boxes, etc.)
getting cats any veterinary care they might need
processing adoption applications submitted by customers
welcoming customers
serving customers food and beverages
overseeing the customer area to ensure all cats and people are behaving appropriately
There are two primary aspects to a cat cafe business. It’s part cafe and part animal shelter, and business owners must be able to run both types of businesses. Business owners who don’t have previous experience running either type of business have several resources they might learn from.
First, business owners can take an online course. There are several courses that cover either cafes or animal shelters:
IAP Career College has an online Coffee House Owner Certificate Course
The Specialty Coffee Association has a Barista Pathway training program
Texas Coffee School has a Coffee Shop Management Training Course
University of the Pacific has an Animal Shelter Management Certificate
The ASPCA has several training programs in a variety of formats
Karen Pryor Academy has an online Shelter Training and Enrichment Course
Second, there are many books on running a cafe or animal shelter that business owners can read. Some popular titles include:
Finally, business owners can work in a cafe or animal shelter for several months before starting up their business. This work will provide a firsthand view of what’s involved with running these types of businesses.
Because this is a relatively new business in the USA, most cat cafe businesses have only one location. However, some have expanded to several locations. The Catfé Lounge in Ferndale, Michigan is an example of a cat cafe that has a single location. Catmosphere Cafe, Crumbs and Whiskers, and Kitty Cafe all have two locations.
Kate, who owns Kitty Cafe, recommends starting with the building design when planning a cat cafe business. A building should have several separate areas:
an area for customers to relax and play with cats
a separate area for cats who need a break from people
a third area for preparing food (if food is prepared on-site)
The non-food areas should be built with cats in minds, offering them plenty of places to run, play and hide.
Running a cafe and an animal shelter is a lot of work, so most cat cafe business owners hire a small team of employees as soon as they open. As a business grows, more and more employees can be brought on.
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Cat Cafe business. We've pre-suggested a few based on your idea — review and adjust.
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
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An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.