Do you want to start a coffee shop and you want to forecast revenue? If YES, here is a detailed analysis on how much money coffee shops make monthly/annually.

When contemplating starting a coffee shop, it’s only natural to wonder about the level of income you could expect every month.

It goes without saying that the answer to the question; “How much do coffee shop owners make?”, will depend on certain factors such as the type of coffee business you have, your volume of sales, your pricing point, your costs, and other factors as well, such as existing debt, labor costs, taxes, et al. In addition, the income you get to keep after subtracting all expenses will be determined by your startup costs, operational costs, taxes, money re-investment into your business, et al.

In other words, asking how much a coffee shop owner makes on a monthly basis encompasses complex insights to what kind of coffee business you will ultimately create.

First and foremost, you have to bear in mind that that every coffee shop is different. For instance even with the standards across board, individual Starbucks Coffee locations do not bring in the same revenue. Likewise, despite having the same concept and products, the revenue can vary from one coffee shop to the next.

How Much Money Do Coffee Shop Owners Make Monthly

In a bid to answer how much coffee shop owners make, it is important to determine the variables that can help throw light on the answer. How much money you make with your coffee shop ultimately depends on your coffee shop revenue as well as other things. Here are the key elements to look out for:

  • Total Revenue: is the amount of money your coffee shop makes. It is generated from all the sales that occur throughout the day, week, and month.
  • Revenue: is a collection of all the money paid to you from coffee, tea, soda, muffins, pasties, etc. It does not include the cost of doing business.

Usually, the revenue that you will make from your coffee shop will be based on two factors;

  1. Your number of sales: This number reflects how many customers walk through your door or perhaps drive up to your espresso drive-thru window and buy something. Each purchase equals one sale. The more buying customers, the more sales and presumably, the more revenue your coffee business will have.

So, let’s say you average 150 customers a day. A 20% increase from that will bring that up to 180 customers a day. This means that an increase in sales will dramatically boost your revenue for the month.

There are a lot of factors that can affect your volume of sales. For instance, your location will make a very big impact on your profits. The “better” location for your coffee shop, coffee stand, or kiosk, the more optimal or higher your number of customers you will likely have. Factors like parking, convenience, traffic flow, lighting, et al., are essential things to look at.

Additionally, marketing, promotions, or community outreach will also play an important role and can dramatically impact your numbers.

2. Your average receipt total: Your average receipt amount is another important variable to your profitability. A single receipt can be $3.00 another can be $15.50.

For instance, let’s assume that on average, customers buy a cup of cappuccino and a muffin totaling $5. Of course, not everyone will order a cappuccino and/or a muffin. Some orders will have multiple drinks and/or multiple muffins or snacks. Some receipt totals may add up to just $2.50, while other receipts might be as much as $35.95. Take all your orders and divide them up by your total sales, and you’ll get your average ticket price.

If you have a variety of moderate to high margin menu offering (that is popular with your customers), the average cost of your receipt prices will also likely go up. So, if you offer your famous cheese cake for $6.95 a slice and a coffee for $2.75, your receipt price will be $9.70.

Adding these two essential variables (total number of customers and the average receipt total) will determine our revenue for your coffee shop business. Both of these elements play an equally powerful role in your financial success as a coffee shop owner.

Any change to one or both of these can cumulatively increase or decrease your bottom line and your income. In order to be successful as the owner of a coffee shop, you should strive to boost these two factors upwards as much as possible.

Independent coffee shops produce more than $12 billion in annual sales. The average drive-through espresso stand sells 200 to 300 cups of java a day. Seattle has the most coffee shops per capita of any city in the united states.

Salaryexpert.com reports that in 2011, coffee shop managers in New York City earn an average of $66,699. In Phoenix, the average annual coffee shop manager income is $45,961; and in Miami, coffee managers earn $54,075. Seattle coffee shop managers earn an average of $54,899.

The national average is $46,353. The Bureau of Labor Statistics reports that the median annual wage of salaried food service managers (including coffee shops and espresso stands) were $46,320 in May 2008. The middle 50 percent of managers earned between $36,670 and $59,580. The lowest 10 percent of wage earners received less than $29,450, and the highest 10 percent earned more than $76,940.

Coffee shop owners who manage their own establishments may net a higher average annual income than those who have the additional operating expense of hiring a manager to run their business.

In conclusion, the answer to the question; ‘’how much do coffee shop owners make monthly’’ Is… It depends. Remember, each coffee shop is different: variables like the location, costs, market share, price-points, product profit margins, branding, and management, all play an important role in determining your profits.

Ajaero Tony Martins