Production Costs
Coffee costs $1.05 to $1.40 per pound to produce. A standard coffee tree produces 2 pounds of green coffee beans per year. Coffee trees grow best in rich soil with mild weather and shade.
Brewing and Accessories Costs
- The average electricity cost to brew coffee is 0.645 cents per cup.
- A typical coffee filter costs 1 to 4 cents.
Coffee Prices and Profits
Coffee beans range greatly in price depending on type, origin, and grade. Arabica beans from Brazil or Ethiopia are highest quality and most expensive. The gross profit margin on a cup of coffee is around 70 to 80 percent. However, cups are inexpensive so high volumes are needed to profit. The total cost for a chain coffee shop to make a 12-ounce cup is around $1.25. They sell it for $2.15, earning 90 cents profit per cup. Coffee is affordable when consumed moderately and offers health benefits.