coffee shop drink margins

[scuba415]

hey all,

i am trying to get an idea which type of drinks you shop owners would most like to sell, based on margins per drink. by "type" i am refering to either brewed drip, pulled espresso or extract derived drinks. considering both cost of ingredients and labor/time preperation.

i am especially interested to get your thoughts regarding how the margins that are derived on extract based drinks, such as a frappuccino, compare to those on a pulled espresso, say a hot latte. if anybody wants to share exact costs of base ingredients, even better.

thanks in advance for your help!
scuba

 

[Comfy Place]

Margins

I believe that across the industry, counting all forms of drinks, the gross margins are around 50-60%; we are in that range ourselves for virtually everything that we sell, with a few rare exceptions (none of them drinks or food).

Depending on who you talk with, some types of drinks should have higher margins. I've even heard someone (can't remember who) mention that blended drinks, like Fraps, Smoothies, etc., should have a gross margin of 75% or higher, and that if you don't have this, you are doing something wrong.

Just curious, what are you looking for these figures for?

 

[NW JAVA]

Well: E.g

16 oz favored latte

Add all the following:
12oz milk
2 minutes of labor often not taken into cost
1.5 oz flavor
Your operational overhead /electricity for 2 minutes/rent for 2 minutes/lease/ect often not taken into cost

Last I figured I got about .$75 for a drink that a get $3.25 for.

 

[coffee4me]

One Slight ommission

How do you account for the two hours, on a Monday afternoon, you are fully staffed and don't sell a drink? I did not see that in your equation.

 

[cafemakers]

Re: One Slight ommission

How do you account for the two hours, on a Monday afternoon, you are fully staffed and don't sell a drink? I did not see that in your equation.

Labor is overhead, not a cost of goods sold.