Results 1 to 10 of 15
- 06-16-2005 07:54 AM #1
Profit analysis of Espresso Drinks
I'm looking to open up a gelateria/coffeeshop in the very near future. In order to keep my investors happy, I need to give them some idea that they will not lose their money. In order to do that, I need to figure out how much it will cost to produce all of our products. I have an analysis of drip coffee, tea and the gelato already done, but I can't seem to find enough information on espresso drinks to do them. If anyone has any information on how much espresso is required to brew one shot, I can get the ball rolling to figure that out as well. Additionally, if anyone has already done all of this work, I would greatly appreciate the information, as would my investors. Thanks in advance.
- 06-16-2005 08:01 AM #2
8 gramms of espresso per shot.... our drinks are all a double shot, plus milk & paper. I've got a spread sheet at home where I enter my cost per pound for beans, plus cost per gallon for milk and my cost per case for cups & lids... out comes my COGS. COGS X 3 = sugested retail price, then I adjust the SRP to my market conditions. If you want, I'll look for the excel sheet and email it to you.
- 06-16-2005 09:21 AM #3
chocolates for mochas, syrups for flavored latte's, and you'll have it...don't really need a spread sheet its just simple math:
espresso typically runs 8 to 12 cents a shot depending on the quality \ price of the beans you buy.
milk here is 2.33 per gallon or 128 ounces
chocolate I pay almost a quarter for a typical 16 ounce drink - more for a 20 and 24 ounce...I break down the chocolate by the ounce just like the milk and watch for sales on them and stock up.
lid and cup
syrups...how much per bottle, I use 1883's, how many ounces in a bottle and is your shot 1 ounce - I vary this based on size of the drink.
- 06-18-2005 11:41 AM #4
I've been Googling this topic this morning, and found a pretty good breakdown - adjust for your own variables.
It's from a user forum, so I don't even know how to credit the author, but the whole thread can be found at http://answers.google.com/answers/threadview?id=200279
I've quoted the part most relevant to us below:
To me, an ideal specialty coffee retail concept boils down to
expertise and margins. The cost of goods sold (COGS - operator's cost
of ingredients and products sold) on a sandwich or fine dessert is
60%, if you're careful, while the COGS on a latte is only 23%.
(Remember, as in golf, the lower the number, the better.)..."
There is an excellent chart of assumptions on costs:
Daily sales goal $1,000
Cost of coffee $7 per lb.
Shots of espresso per lb. of coffee 62 (11 cents per shot)
Cost of milk $3 per gal.; 128 fl. oz. per gal = 2 cents per oz. (9 oz.
per "Double-Tall Flavored $2.75" drink)
Flavored Syrup $3.60 per 24-oz. bottle (3/4 oz. per drink = 11 cents)
Single Shot 1 oz. of coffee by volume
Ounces of drip coffee per pound of coffee 360 (23 cents per 12-oz.
Food and non-coffee beverage markup 100% (50% margin)
Food shrinkage and supplies 10%
Hours of operation 14 (5:30 a.m. - 7:30 p.m.)
You will want to see the entire breakdown on costs and profits that
follow in this article. But just for example, $1,000 of espresso
drinks can gross $770 based on this analysis:
Double-shot flavored espresso-based drink (coffee 22 cents, milk 18
cents, syrup 11 cents, cup 6 cents, lid 3 cents, condiments/supplies 3
Number sold 365
Cost of goods 23%
Gross profit $770
- 06-19-2005 10:51 AM #5
- 06-20-2005 10:13 AM #6Shots of espresso per lb. of coffee 62 (11 cents per shot)
1 pound = 450 grams
2 shots + waste = 14 grams + 2 grams = 16 grams/shot
450 grams / 16 grams/shot = 28 shot
at $7.00 per pound, cost of espresso per order = $7/28 = $0.25
If you add constant espresso grind adjustment, your double espresso shots cost more like $0.26 to $0.27.You want cream and sugar?
NO COFFEE FOR YOU! NEXT!
- 06-20-2005 02:05 PM #7
Since the COGS is 23% - what about the avg labor cost per drink - does anyone have any data on this?
- 06-20-2005 11:20 PM #8
always pull doublesOriginally Posted by ElPugDiablo
- 06-21-2005 03:20 PM #9
- 10-14-2013 08:43 AM #10
I am looking to start my own coffee shop, and am writing a business plan. Your excel spreadsheet looks like a great tool. Could you email it to me? (this site doesn't like me to put my email address so just remove the spaces here - max t cobb @ gmail . com)
- By MVcoffee in forum Coffee Industry ForumReplies: 10Last Post: 04-07-2008, 11:26 AM
- By Angel11 in forum Coffee Industry ForumReplies: 5Last Post: 03-08-2008, 08:37 PM
- By psycho supreme in forum Coffee DrinksReplies: 0Last Post: 04-19-2007, 03:57 PM
- By LR2Bragg in forum Coffee and Espresso MachinesReplies: 1Last Post: 01-15-2007, 04:22 PM
- By BaklaJava in forum Coffee DrinksReplies: 33Last Post: 12-10-2005, 06:38 AM
Search tags for this page
coffee shop cost analysis,
cost analysis coffee shop,
espresso drink prices,
espresso shots per pound,
how many espresso shots in one pound,
how to price coffee drinks,
how to price espresso drinks,
profitability of espresso drinks
Click on a term to search for related topics.