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- 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)
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