Did you know that every cup of coffee gives you 300-400 percent in profit?
A cup of coffee is often one of the largest revenue makers for a cafe and, when done correctly, has the biggest and best word of mouth benefit than any other part of the business.
Espresso coffee in particular is one of the most important parts of a cafe business and is often overlooked or overshadowed by other cafe products.
A well-trained Coffee Barista can give a cafe strong market share and credibility in the coffee scene. Coffee still has a secret following and you often hear people discussing where they should dine on the quality factor of the coffee.
What’s in a cup of coffee?
Here is a quick cost and profit analysis.
| Coffee cost | $0.30 – $0.40 |
| Milk | $0.20 |
| Take-away cup and lid | $0.10 – $0.20 |
| Labour | $0.20 |
| Total | $0.80 – $1.00 |
| Average Price of a Coffee | $3.50 – $4.50 |
| Net Profit ($2.50 – $3.50 per cup) | 300% – 400% |
What does this mean to you as a Cafe Owner?
Well, basically that nice table says that you could go a long way towards increasing the profitability of you cafe.
Increasing the profitability of your cafe is fairly easy to do and it doesn’t take a fancy menu to do this.
Here is a quick analysis of how you might achieve this:
| Coffee size | Small | Medium | Medium/Large | Large | |
|---|---|---|---|---|---|
| Daily | Increase in # coffees sold | 50 | 100 | 200 | 500 |
| Weekly | Trading Days | 5 | 5 | 5 | 5 |
| Increase in # coffees sold | 250 | 500 | 1,000 | 2,500 | |
| Net profit/cup | $2.70 | $2.70 | $2.70 | $2.70 | |
| Coffee Usage | 2.5kg | 5kg | 10kg | 25kg | |
| Net Profit | $675 | $1,350 | $2,700 | $6,750 | |
| Week | 52 | 52 | 52 | 52 | |
| Yearly | Net Profit | $35,100 | $70,200 | $140,400 | $351,000 |
Smart Profit Tips for your Coffee Shop
If you create awesome-tasting coffees, your customers will come back, time-after-time. Better still, they could actually refer your cafe like crazy!
Maybe you could even gain an unfair competitive advantage by learning some simple coffee making secrets and making your cafe THE coffee hang out place in your neighbourhood!
If you were to create the right environment for meetings, small gatherings etc. and encouraged multiple coffees per stay, you’d quickly get the numbers up.
Having this information at your fingertips means that over a full year, you would increase your cafe’s profit by up to $351,000 – just by improving on your coffee sales.
This and other very useful tips and strategies are available in the Cafe Entrepreneur’s Bootcamp in a Box – the live recording of a two-day workshop where cafe owners got ask the hard questions and got the easy solutions.