Coffee represents the highest turnover profits for most cafes. Some very simple changes to the way you approach your coffee market and the way you make your coffee can have a dramatic impact on your future profitability.
A cup of coffee not including labour can cost around 55cents or 69cents for a takeaway. Most places will sell their coffee between $2.50 and $3.50 per cup so this means the profit margins are much higher than food items. Getting the coffee right is important. Your customers will appreciate it and so will your bank manager. Unfortunately there is no fixed formula for pricing a beverage 100%, as the variables such as inputs,competition,overheads and the economics of your area make any difinitive calculation difficult. Assuming you sell your coffee for $2.50 per cup an extra 5 cups of coffee sold per day will generate and extra $3,300 per annum in profit. If you sold an extra 100 cups per day you would generate a $66,000 of profit per year
There should be about $250 profit per kilo and average 130 cups per kilo
If you were to sell 10kg per week this would equal $125,000 per year. Well run cafes should operate on around 25% profit margin and restaraunts 7% per year.
When choosing a coffee supplier choose a company that can best service you with training, supply and technical advice and maintenance on machinery rather than gimmicks.
