Customer Traffic and Sales
The average coffee shop has 150 to 500 customers per day, depending on location, brand recognition, and special offers available. Most coffee shops rely on walk-in traffic to attract customers. There are over 20,000 coffee shops in the United States and many more globally. Coffee drinks tend to be the most profitable items on the menu.
Examining the India Costa Coffee chain provides insight. Their smallest cup of coffee is priced at 235 rupees, and the shop brings in average daily revenue of 29,000 rupees. Using this information, we can estimate their customer count.
Annual Revenue and Profitability
In 2021, United States coffee shops made $82 billion in revenue. The average shop makes around $600 daily over 30 days. Independent coffee shops sell 200-300 cups daily, while large chains like Starbucks sell 700 cups daily. Assuming most people drink 3 cups per day, 76 individual customers visit a typical coffee shop daily. 476 customers make purchases weekly.
The average coffee shop sells about 230 cups of coffee daily. Independent coffee shops sell 31% espresso drinks, with the rest being brewed coffee. The average receipt in the UK is £4.50. At a 75% margin, a coffee shop makes £3.38 profit per receipt.
Costs and Sustainability
A coffee shop’s total expenses include rent, salaries, utilities, inventory, and marketing, not just coffee beans. Small cafes average 2.5 percent profit, whereas larger operations can earn much more. Direct costs are roughly 15 percent, with most expenditures being overhead.
Besides brewing, water is used for dishwashing, cleaning, and restrooms – consuming 600-1000 gallons daily.
Challenges of Coffee Shop Ownership
Owning a profitable coffee shop requires proper preparation and planning. The most common reason for the failure of independent coffee shops is the underestimation of the demands of running their own business by new owners. Quality of food and beverages and customer service also greatly impact the success of the business.