Results 1 to 4 of 4
  1. #1
    sld
    sld is offline
    Junior Member
    Join Date
    Nov 2004
    Posts
    11

    Is this break even formula true for you?

    "I saw a figure in this month's Fresh Cup magazine that blew my mind. An article claimed that the break-even point can be formulated as monthly sales equal to ten times your rent. TEN TIMES? I boggled. I just KNEW it couldn't be true. But when I sat down and did the math on a fully staffed operation of The Black Drop, damn if it wasn't exactly that. The biggest expense, hands down, was salary." I copied this from coffee geek. Our rent will be $2,500 a month which means we would need $25,000 a month to break even. We were thinking we could break even on half this amount. We will be working so I know this will make a difference, I would like to know other coffee shop owners experience with these numbers. Thanks

  2. #2
    Senior Member
    Join Date
    Aug 2004
    Location
    North Georgia, USA
    Posts
    176
    Dude - that's a lot of coffee! But I would suggest you look at a place with cheaper rent!!! Unless, of course, you are going into a really high traffic area and think you'll sell MORE than 25,000 in coffee...because you want to make a profit, not just break even.

  3. #3
    Junior Member
    Join Date
    Jul 2005
    Location
    Charleston, SC
    Posts
    14

    Better not be

    I hope that estimate isn't correct, otherwise my wife and I are going to go broke when we open up our shop.

    10X monthly rent? Our rent is $1500...that would be 15,000 in sales per month. At a very, very rough estimate $2.83 cost per drink sold, I'd need 176 drink sales per day to reach that 15k monthly sales goal.

    Maybe my estimates are completly whacked, but I'm planning on making about 40k profit at that sales lvl.

    Break even to my estimates is about - 75 drinks a day - or about half what you read. I hope I'm right and they are wrong!
    George Worthington
    Owner - Muddy Waters Coffee Bar
    1739 Maybank Highway
    Charleston, SC 29412

  4. #4
    Member
    Join Date
    Jul 2005
    Posts
    35
    ive been in food service for about 13 years and we just opened our shop our rent is alot lower than most but we added pannini to help get the average ticket price up!!!! you can help your self by keeping your food cost(coffeecost)labor cost and operation cost down to help your gross profit.... try to keep food cost at around 20% labor cost at 18% and operating at about 40% so if you have 3 employes at $6.00 an hour and you sell $100 in one hour you as the owner are left with $12.00 for that hour... its pretty much the same formula that applebees tgi fridays etc(corprate bullies)use... so just remember you can always keep your labor cost down by working the place your self as much as you can keep your light bill and gas bill under control and if you can make it 3 months you can make it forever

 

 

Remove Ads

Sponsored Links

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Similar Threads

  1. Is this true about coffee shops?
    By davidsbiscotti in forum Coffee Shops, Espresso Bars & Cafes
    Replies: 5
    Last Post: 11-14-2007, 02:02 PM
  2. is it true
    By ella in forum Coffee Industry Forum
    Replies: 2
    Last Post: 11-05-2007, 06:47 AM
  3. I was wondering when did you guys got to the break-even?
    By Anajoeri in forum Coffee Shops, Espresso Bars & Cafes
    Replies: 1
    Last Post: 06-30-2006, 03:10 PM
  4. True or false, is coffee better than getting it on?
    By angelface in forum Coffee Table
    Replies: 15
    Last Post: 11-25-2005, 09:43 AM
  5. Traffic formula
    By Jo in forum Coffee Shops, Espresso Bars & Cafes
    Replies: 3
    Last Post: 10-08-2004, 11:54 PM

Search tags for this page

break even for coffee shop

,
break even of coffe shop
,
break even poit for coffee shop
,

calculate brake even point for coffee shop

,

coffee shop break even

,

coffee shop break even point

,

coffee shop breakeven

,
formula to calculate sales of a coffee shop
,
how do you calculate breakeven point for coffee shop
,
machine shop break even formulas
Click on a term to search for related topics.