Coffee Shop Running Costs
Here are some typical overheads
When starting a new coffee business, it’s important that you have an overview of the top level figures that you will be working towards both monthly and annually.
- Sales: £4,000
- Cost of Goods Sold (25%): £1,000
- Gross Profit (75%): £3,000
- Wages: £1,250
- Rent: £800
- Electricity & Gas: £70
- Water: £35
- Office Supplies: £20
- Catering Equipment £95
- Consumables (napkins etc): £20
Total Overhead: £2,290
What does this look like in terms of profit?
This would leave you with a Net Profit of £710.
A net profit of £710 on a sales figure of £4,000 would give a net profit margin of 17.75% (£710 / £4000). Although this is a very general example, and in reality actual net margins may differ drastically from this, it does give a somewhat realistic account of what profits a well ran cafe might hope to achieve.
Using a net margin figure of 17.75%, we can determine what sales we would need to make to expect a certain return. For example, if a cafe owner needs to make a profit of £40,000 per annum, a yearly sales figure of £225,352 would be a realistic target (£225,352 x 0.1775), or £4,334 a week.