Coffee shops make money selling coffee, other drinks, and food. Profit margins per cup are key. However, profit margins are typically over 90%.
Daily Revenue and Earnings
The average coffee shop makes $873 daily, with an average transaction of $11.11 per customer. Owners earn $60,000 to $160,000 yearly, with earnings doubling in the first years.
Factors Affecting Earnings
Coffee shop earnings depend on offerings and concept, location convenience, and proximity to competitors. Catering can be lucrative, as well as wholesale coffee bean sales.
Coffee Shop Profitability and Costs
The average coffee shop profit is $3.50 per cup sold, with an average daily revenue of $1600. Opening a successful new coffee shop requires 6 months of reserve money and careful lease agreements.
Employee Wages
The coffee shop industry offers job opportunities with hourly wages ranging from $10 to $18, with baristas typically earning $9 per hour plus tips.
Start-up Costs and Margins
The cost of opening a small coffee shop ranges from $40,000 to $200,000, with margins on coffee and tea reaching 95% per cup. Medium-sized coffee shop owners earn $50,000 to $250,000 annually.