How to Start a Cat Cafe: Costs, Steps, and Risks

A cat cafe looks simple from the outside: coffee, a calm room, and a few cats. Behind the counter, you’re running a cafe and an animal care operation at the same time. That means two sets of costs, two sets of rules, and a team that needs both skills. This guide on how to start a cat cafe covers what it costs, why some close, and the eight steps to open one.

Here’s how to start a cat cafe: check your local licensing rules first, budget roughly $25,000 to $300,000 for startup costs, and set your labor target before you sign a lease.

A cat cafe is a coffee shop where guests spend time with cats while they eat and drink. The idea started in Taiwan in 1998, and there are now more than 200 in the US, according to USA Today. Most follow one of two models:

Guests usually pay for drinks plus a separate fee for time with the cats. Crumbs & Whiskers in Washington, DC charges $18 to $22 for a 70-minute visit, according to TRUiC.

Startup costs for a cat cafe run from about $25,000 to $300,000, depending on your model, city, and space. TRUiC estimates $25,000 to $250,000, and Myshyft estimates $50,000 to $300,000. Your lease, renovations for health code separation, and kitchen equipment drive most of the total.

Your model sets where you land in that range:

Crumbs & Whiskers kept costs down by having a team member pick up food and drinks from a nearby cafe, according to TRUiC. Lazy Cat Cafe Downtown in Toronto cited about $10,000 in monthly rent and roughly $5,000 a month in vet bills when it announced its closure in 2025, according to BlogTO. Add vet care, extra cleaning, and insurance to your monthly budget.

For a wider look at what any new business costs, see our guide to how much it costs to start a business.

Cat cafes can be profitable, but margins run thin. TRUiC estimates a net profit margin near 3% and a break-even point of four to 12 months. Admission fees, events, memberships, and adoption fees give you more ways to cover costs than drinks alone.

Labor is the cost you can control. Coffee shop operators often aim for labor at 30% to 35% of sales, according to Lavu. Say your monthly payroll is $8,000 to $15,000. At that target, you need roughly $23,000 to $50,000 in monthly sales to support it. Treat that as an illustration, and set your labor target before you open.

Test your own numbers with our labor cost calculator. Once you’re open, our time clock tracks labor cost by hour, department, and role, so you can see where you stand. Calvin Su, co-owner of Butter Baker, says: “I think it’s great for planning, for budgeting… with the labor cost keep going up, it really helps us to track.”

Most cat cafes close because costs outrun sales. Rent, vet bills, and slow months add up fast, and some owners also run into inspection problems or run low on adoptable cats. You can plan for most of these risks before you open.

Once you’ve weighed the costs and risks, these eight steps take you from business plan to opening day.

Your business plan is your roadmap, even if you’re not seeking investors. Cover your market, your competitors, what makes your cafe different, and projections for both cafe and cat care costs. Choose your cat model and decide whether to open on your own or buy into a franchise. Our guide to starting a small business covers the basics.

Yes, you need licenses and permits, and you should check them before you sign a lease. The FDA Food Code says live animals may not be on the premises of a food establishment, with limited exceptions. States adopt that rule themselves, and Washington’s version is WAC 246-215-06570. Cat cafes operate through exceptions, variances, or layouts that keep cats away from food.

Local officials decide how that works. In Keene, New Hampshire, a health official said the city’s food code has no section on cat cafes, and he can grant an exception if owners keep cats and food separate, according to the Keene Sentinel. Before you sign a lease, ask your health department:

You may also need a business license, a food handler permit for each team member, and an animal permit. With our HR and compliance tools, you can store permits and training records in each team member’s profile for inspections.

Look for foot traffic and a layout with room for separate zones. Kate, who owns Kitty Cafe, recommends three areas: one for guests to play with cats, one where cats can rest, and a food prep area if you cook on site, according to TRUiC. Confirm the zoning allows both food service and animals before you sign.

Your space has to work for cats, guests, and inspectors. Many cafes keep the cat room separate and let guests look in through a window, according to Shopify. Put litter boxes in a cat-only zone, and plan an entry that keeps cats from slipping out. Add climbing spaces and hiding spots so shy cats can retreat.

You can partner with a local rescue or own your cats. Rescue partnerships lower your upfront costs and let you offer adoptions. Owned cats give you consistency, but you’re responsible for their vet care long term.

Some shelters limit how many cats you can take or ask to approve your space, according to Shopify. If you partner with a rescue, line up a steady supply. Plan quiet rest areas, too, because cats need breaks from guests.

Use your cost table to set a startup budget and a monthly operating budget. The SBA’s startup cost tool helps you build both. If your projections show you running out of cash before break-even, raise more money or scale back your concept. Get general liability insurance, and workers’ compensation if you have a team, according to TRUiC.

Most cat cafes need cafe roles and cat care roles. A barista makes drinks, a cashier handles orders, and someone who loves cats handles cleaning and care, according to Shopify. Team members can rotate, but each shift needs coverage for both.

Here’s what that costs. The Bureau of Labor Statistics puts the median wage for food and beverage serving workers at $15.24 an hour (May 2025). One barista, one cashier, and one cat attendant working eight hours a day for 30 days adds up to 720 hours, or about $10,970 in base wages. That’s before payroll taxes, a manager, a second shift, or higher city wages.

When you hire your first team members, look for shelter or rescue experience. Every team member needs a food handler permit and basic cat handling training. Peak cafe hours and peak cat time don’t always line up, so build role-based schedules, post open shifts, and let your team trade shifts.

Roberto Bustillos of Lombard Doggy Daycare says the app eased his early worry: “My biggest fear at the beginning was I’m getting into a very complicated business… how to manage the schedules, how to deal with payroll. All of that was so simple.”

Start building buzz before you open. Introduce your cats on Instagram, partner with local rescues for pre-opening adoption events, and invite local press. Events like happy hours, yoga classes, and casual concerts give guests reasons to return, according to Shopify. Cats won’t market themselves, so plan your content early.

A cat cafe is a full-time commitment, and TRUiC describes it as part cafe and part animal shelter. You’re a good fit if you:

It’s probably not a fit if you expect passive income or want to avoid regulations.

Startup costs run from about $25,000 for a lean setup that partners with a nearby cafe to $250,000 or more for a full build-out with an in-house kitchen. Rent, renovations for health code separation, and kitchen equipment drive most of the total. Get local quotes before you commit to a lease.

Most closures come from costs outrunning sales. Toronto’s Lazy Cat Cafe Downtown cited about $10,000 in monthly rent and roughly $5,000 in vet bills when it announced its 2025 closure. Slow months, strict inspections, and running low on adoptable cats have also forced owners to close or pause.

Yes. You need a general business license and a food service permit from your local health department. Many areas also require an animal permit or a health department exception, since the FDA Food Code bars live animals from food establishments by default. Rules vary by city and state, so ask both offices before you sign a lease.

They can be, but margins run thin. TRUiC estimates a net profit margin near 3%, and costs run higher than a standard cafe because of vet care, extra cleaning, and cat attendants. Cafes that earn from admission fees, events, and memberships, not just drinks, have more room to cover those costs.

At many cat cafes, yes. Cafes that partner with a shelter or rescue let visitors apply to adopt the cats they meet, usually through an application and an interview with the team. Resident-cat cafes keep their cats long term. Ask the cafe which model it follows before you apply.

Most cat cafes keep roughly 10 to 25 cats, though local rules may cap the number. Neko Cat Cafe in Washington rotates 12 to 25 cats, while one New Hampshire cafe planned for up to 10 at a time. Check your local limits, then plan space and rest areas around your count.

A cat cafe works when the numbers, the rules, and the team line up. Cost your model first, check licensing before you lease, and set your labor target early. Homebase gives you one app to schedule, track, and pay your team. Fred Sztabinski, owner of Fix Coffee + Bikes, says: “I came across it in time before we opened. So we used it from day one.”

See how we help food and beverage teams, and run payroll from the same app when you’re ready. Try Homebase free.