chai extract

[scuba415]

hi all,

i was hoping someone could give me an idea what you pay for chai extract that you use in your coffee shop. ive seen the 1.5 gallon bag-in-box and the 32oz sizes being used in local coffee shops. i believe they were the oregon chai brand. i was wondering what the margins are on these type of drinks as opposed to self-pulled espresso drinks, say a latte.
thanks for your input.

steve

 

[Comfy Place]

Chai

We use a different chai other than Oregon, but if I remember correctly when comparing against our espresso-based drinks, the chai might have been just slightly more costly; I'm talking perhaps a nickel or so. This is factoring the cost of the cup, lid, water, milk, etc..

I wouldn't go with a particular brand just based on cost. Instead, request samples from different companies (this goes for just about anything in your shop), and then sample them. You'll be able to better judge which is the best choice for your shop. Then, price accordingly, keeping in mind your margin goals, etc.. Cheers!

 

[scuba415]

hi darren, thanks for your response. i am actually considering entering the market on the supplier side of the equation and am trying to determine feasibility of bringing my product to market at a competitive price.

I was wondering what retailers are paying for extract based drinks as opposed to drinks they pull themselves. what cost are you encountering for the extract when you are selling that drink at say, 2.50-2.70?

thanks for your response!