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Are Coffee Shops Profitable? A Look at the Numbers - 01/31/2024
Manage episode 398851772 series 3369142
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We're live just 42 minutes from Six Flags Over Georgia to answer a very common question: are coffee shops profitable? We take a look at our Cafe Viability Spreadsheet (link to download above!) and go on a hypothetical new cafe's first year. We'll be talking about the terms used, filling out the spreadsheet together, sharing insights we've learned over the years, and ultimately arrive at an answer of whether a standard-ops cafe can make a buck! Thanks for listening, y'all :P
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00:00:12 Introduction
00:04:27 Why do people open coffee shops as their first business?
00:11:52 Spreadsheet and Terms Overview
00:22:52 Different size spaces and physical locations affect viability
00:31:09 This is not a profit and loss statement
00:31:41 What is “Cost of Goods Sold” + other terms
00:34:15 Talk to your accountant!
00:39:40 Let's fill in the spreadsheet
00:46:45 Rent Calculator
00:50:27 Staff and Wages Calculator
00:58:25 Paying Yourself a "Base Wage" as an Owner
00:59:59 Multiple other categories, rapid-fired for your listening pleasure (and show length)
01:06:05 Cost of Goods Sold, Transactions per Day, and Average Transaction.
01:11:34 Is this cafe profitable?
01:14:48 How would a hypothetical year two look?
01:19:50 Conclusion
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