To set up a coffee shop in Tennessee, lock in entity, tax, health, and buildout steps early to control timeline and budget. Form an LLC with the Tennessee Secretary of State, get an EIN, register with the Tennessee Department of Revenue for sales and business tax, and secure your county/city business license via the County Clerk. Before signing a lease, confirm zoning, parking ratios, grease-interceptor requirements, and whether a drive‑thru or patio triggers a site plan. Submit stamped plans to the local health department for a Food Service Establishment permit; expect specs for NSF equipment, a 3‑comp sink, hand sinks, a mop sink, adequate hot water, and often a grease trap. Pull building permits and obtain a Certificate of Occupancy. Engineer utilities: 208–240V dedicated circuits for espresso, ice, and undercounter refrigeration; water treatment targeting 3–5 gpg hardness and 75–150 ppm TDS to protect boilers and stabilize flavor. Hire with at least one ANSI Certified Food Protection Manager on duty; add a local beer permit (and TABC licensing for wine) if serving alcohol. Insure GL and product liability; secure workers’ comp if you have 5+ employees. Financially, model 25–30% beverage COGS, 30–35% labor, and peak throughput of 60–90 drinks/hour per lane.
