A cup of coffee not including labour can cost around 55cents or 69cents for a takeaway. Most places will sell their coffee between $2.50 and $3.50 per cup so this means the profit margins are much higher than food items. Getting the coffee right is important. Your customers will appreciate it and so will your bank manager. Unfortunately there is no fixed formula for pricing a beverage 100%, as the variables such as inputs,competition,overheads and the economics of your area make any difinitive calculation difficult. Assuming you sell your coffee for $2.50 per cup an extra 5 cups of coffee sold per day will generate and extra $3,300 per annum in profit. If you sold an extra 100 cups per day you would generate a $66,000 of profit per year

There should be about $250 profit per kilo and average 130 cups per kilo

If you were to sell 10kg per week this would equal $125,000 per year. Well run cafes should operate on around 25% profit margin and restaraunts 7% per year.

When choosing a coffee supplier choose a company that can best service you with training, supply and technical advice and maintenance on machinery rather than gimmicks.

Work closely with your roaster. I find that I can get a much cheaper rate if I buy the entire roast. This brings the price down by $5 to $6 per kilo which means more profit for me

Ensure your staff are well trained and can work under pressure as the morning coffee hours are quite hectic and mistakes can be made. Returns hold up the process or worse yet lose customers. Ensure the staff know that it takes just as long to make a bad coffee as it does to make a good coffee so discard the bad ones as that is exactly what they are BAD.

Learn your regular customers names and orders. This has a great impact on your customer and they feel they are very special. Indeed if they are giving you money everyday they are special. The most important thing to do is Smile Smile Smile.

Try and sell something else with the coffee. You have seen McDonalds do it and you know the turnover they have. You can increase your sales this way to.

So when you are serving your coffee Smile, Be Friendly, Tempt them with more

At the end of the day your profits will go up, the customer will be happy and the staff will be happy