This is Why Most Coffee Shops Don’t Make Money

Why do so many cafes struggle to make money? Today, we take a crash course in the 3 key costs that make or break every cafe business.
Sections in this video:
0:00 The #1 Problem
0:40 Understanding Profit
2:00 Gross Profit
5:24 Labour Cost
7:19 Occupancy Cost

[@DougPlunger]

This is the most helpful and simple to understand explanation of the true costs, expectations, suggestions, and realities of running a business I have ever seen. Thank you SO much!

[@coffeebusinessbasics]

Glad it was helpful!

[@matthewschlener2024]

agreed. this is amazing! @coffeebusinessbasics any chance you would be willing to share a template of the labour cost excel file?

[@OHANA-Beach-Suites]

Thanks for helping with amazing information here!

[@ibizawavey8630]

This explains why ALL the coffee spots in my city of 600K keep closing down! Not one of them can stay open, then another one takes over, on and on and on. I never understood what was going on.

[@alex98b627]

I work on a target of

[@coffeebusinessbasics]

so true, not enough people run the numbers before signing the lease.

[@alex98b627]

​@@coffeebusinessbasics or they just think they can make enough money to afford a $80,000pa rent. Not realising that they need to make min $33,000 in gross revenue each week before they even have a chance of making a reasonable profit. The reality is that Cafes need prime real estate to work, but can't afford to pay prime real estate rents...

[@julesgasore9]

How can we access the labour cost excel file?

[@user-so9oz2su5o]

Great Video! But do you have a course? 🤌