"This cafe's coffee is delicious."
To my understanding that is correct since it's ここのカフェは meaning "The cafe here" os the topic compared to このカフェは which would mean "This cafe" in which case it'd be sort of implicitly talking about tue coffee belonging to the cafe. So for this sentence (using このカフェは instead) the English would be like "This cafe's coffee is very good"
So in summary, yes. Your verbiage is more accurate