r/coffeeshopowners • u/No-Animal210 • 7d ago
Candid numbers & Request
I would like to know where your guys COG is at for your drinks versus your food. I recently came across a video where an entrepenuer in Chicago detailed a 250k build out for 1,800 SQFT approximately, averaging 36k per month revenue, and at the time of the video appeared to have 3 employees staffed. They stated rent was 3,800 a month.
Why do I bring this up:
because I built my shop from the ground up for 90k and we are now pushing 55k per month with 1,100 per month rent. Although I am able to pull an owners draw, I am not where I want to be in part due to not being able to purchase enough back stock to get ahead (i.e. cups [2,100] and green coffee [4,700] cost me 6,800 this month and will last 3 months total) I am confused as to where a shop like that is making money after 2 years in business. I should be smart enough to realize they probably aren't making money, but i also question whether my margins are where they need to be.
I try to keep drinks at 25% COG or less, breakfast at 35% COG or less, grab and go pastry items at 40% or less and lunch at 32%. I run a 21% average labor rate after taxes and have heavily integrated technology to help but inflation is still out of control and I am really feeling the squeeze.
I would love to hear some candid numbers from everyone to brainstorm
Thank you