Retail and Wholesale Coffee Shop Supplies: www.BaristaProShop.com (2024)

FAQs

How much does a coffee shop owner make? ›

Coffee Shop Owner's Salary

Owners of small to medium-sized coffee shops can make anywhere from $60,000-$160,000 annually . Usually, the owner's salary is between 2% and 6% of the restaurant's sales. In a small operation, your salary may be a higher percentage of the profits, relative to how much labor you put in.

Key Takeaways

The profitability of a coffee shop can vary widely, with an average profit margin ranging from 15% to 25%. Starting a coffee shop involves various expenses, including location, equipment, and permits, with an average opening cost typically ranging from $100,000 to $200,000.

The retailers often include coffee shops and grocery stores. Selling ground coffee and coffee beans wholesale is beneficial for roasters, especially for those that are new to the game.

On average, a coffee shop can bring in about $873 in revenue per day, processing around 79 transactions at $11.11 per ticket. However, these figures can vary greatly depending on the specific coffee shop and location. Some coffee shops have a profit margin between 3% and 5%, while others can range from 0% to 15%.

According to the National Coffee Association (NCA), an independent coffee shop can sell between 200 and 300 cups per day. A large chain coffee shop can sell an astounding 700 cups of coffee per day.

On average, small coffee shop owners make between $60,000 and $160,000 a year. The coffee industry generates approximately $70 billion a year in sales nationwide, with coffee selling at higher profit margins than other food products.

The average monthly operating cost for a coffee shop can vary depending on factors such as location, size, and staffing. In general, expenses like rent, utilities, payroll, and inventory can range from $5,000 to $20,000 per month.

Breaking even and then making profit usually takes around nine months to one year to accomplish, if everything has gone smoothly in the beginning stages. Depending on what type of coffee business you've started, you may need around $25,000 upwards to $100,000 or more to keep your doors open.

Labor Costs

On average, you can expect to spend between $4,000 to $10,000 per month on staff salaries for a small to medium-sized coffee shop.

How to run a coffee shop business? ›

That means you're averaging 5 ounces of milk per coffee drink. So you're talking 732,000 ounces per store per year—or roughly 2,005 ounces of milk per store per day—or 16–20 gallons per store per day.

You need between 4-12 employees to operate a large coffee shop. You'll likely need several baristas, cashiers, and support staff to handle the volume of customers and a manager to oversee operations.

Many coffee shops fail due to issues related to inadequate capital, poor financial planning, and the inability to generate enough revenue to cover expenses, contributing to a high failure rate with up to 60% of cafes and small restaurants closing within their first year of operation.

According to Zen Business, a well-run drive-thru coffee shop should be able to generate approximately $2,000 (or around £1,600) per day. With lower typical overhead costs than a drink-in business model, there is good potential for profit.