How Much MONEY Do Coffee Shops REALLY Make?

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  • Опубликовано: 13 янв 2025

Комментарии • 31

  • @copywriting101
    @copywriting101 7 месяцев назад +7

    We've been loving watching your channel as well. :) The shorts are taking over my feed.

  • @TheAveragePodcaster
    @TheAveragePodcaster 8 месяцев назад +23

    Worked at panda express for 2 years and General managers most Panda express store made 40% profit. Crazy good their system is amazing. I will never do such business with 5% profit margin

    • @therealpaulreiser
      @therealpaulreiser  8 месяцев назад +13

      Panda is a great business! They don't franchise, own all the land and buildings and as far as I can tell spend VERY little on advertising. So I can see how they are very profitable! Thanks for the comment!

    • @therealpaulreiser
      @therealpaulreiser  8 месяцев назад +13

      correction... I just found out they have started franchising! But only 7% of their 2,300 locations are franchise owned.

  • @Restaurantrowe
    @Restaurantrowe 7 месяцев назад +15

    I just opened my first coffee shop and think those profit numbers are low. My goal is 20% net profit. Need my prime cost to be around 50%

    • @therealpaulreiser
      @therealpaulreiser  7 месяцев назад +6

      I would love to know how that goes! Some of my Sonics ran 20% profit, some lost money... but the average was about 10%. Please let me know how your profit turns out after you get a couple p&l's under your belt. Thanks for checking out my video!

    • @Restaurantrowe
      @Restaurantrowe 7 месяцев назад +1

      @@therealpaulreiser I will, currently we are 45% food 55% beverage sales. Washington state minimum wage is currently $16.25 for tipped employees but I set us up to be efficient.

    • @jessnguyenthi7266
      @jessnguyenthi7266 6 месяцев назад

      @@Restaurantrowein Sydney, labour cost is so high and business is not making money right now. I am not surprised if profit margin is 5% or lost. My business is coming soon and I hope 15% to 20%. Need to be very clever about staffs and train them to work effectively. That is a only way to save money in Sydney

    • @pravdazam8487
      @pravdazam8487 5 месяцев назад +1

      ​@@Restaurantrowe Whaaaat! Those are your profit margins? The dude said that the industry standard up to 6.8%. How did manage that?😮

    • @brendansmith
      @brendansmith 5 месяцев назад

      20% is wild... I won't say it's impossible, but nearly so.

  • @complexity5545
    @complexity5545 8 месяцев назад +9

    He's luckier than most. Most coffee shop owners that I know make $70_000 to $90_000 of profit. Its basically a professional job. You're not going to get rich doing it.

    • @claypool7897
      @claypool7897 7 месяцев назад

      He has three locations so that's kind of in line with what you're saying

    • @bassidd6092
      @bassidd6092 6 месяцев назад +6

      3 locations that are lucrative. If you own your own land which is where you want to land you’d be making a hell of a lot more profit trust me. I know a roaster that has a coffee shop and he makes close to 500k a year just from the shop, wholesale and coffee supplies. It’s all about traffic and location.

    • @Brodragon2225
      @Brodragon2225 3 месяца назад

      @@bassidd6092 why renting is bad

  • @mustachesandcoffee
    @mustachesandcoffee Месяц назад +1

    Very interesting. No doubt coffee in Seattle is going kill it but crazy.

    • @therealpaulreiser
      @therealpaulreiser  Месяц назад +1

      Thanks for checking out the video! Your channel is so chill! Looks like a bald face guy like me can never be on your podcast, but it looks like you have some awesome guests! Do you ever talk to owners about their business and profit margins? Or just coffee and mustaches?

    • @mustachesandcoffee
      @mustachesandcoffee Месяц назад

      @therealpaulreiser mustaches are not required! We are more on the fun side of interviews. We don't di business guests as much as coffee shop owners, mustache competitions, pop culture topics etc. Your videos are on the fun side so you're welcome to join us sometime!

    • @therealpaulreiser
      @therealpaulreiser  Месяц назад +1

      @@mustachesandcoffee That could be fun! We could talk about the challenges of serving good coffee in a QSR, it is a big challenge. Regardless, thanks for saying hi!

  • @josedelbosque7559
    @josedelbosque7559 4 месяца назад +3

    How did you come up with the $6 million in sales figure?

    • @therealpaulreiser
      @therealpaulreiser  4 месяца назад +4

      This short is made up of short clips from a long video on Upflips channel. In the full video he says how much his sales are. About $6 million in total.

    • @josedelbosque7559
      @josedelbosque7559 4 месяца назад

      @@therealpaulreiser Oh!! That makes it! Thanks a lot for your response! Cheers!!

  • @claypool7897
    @claypool7897 7 месяцев назад +4

    That seems like a low profit margin for a coffee shop

    • @brendansmith
      @brendansmith 5 месяцев назад +2

      it's not, most of them are sitting at 3 or 4% if they're lucky

    • @driftless7134
      @driftless7134 2 месяца назад

      I watched the long video and it sounds like the owners are in a lot of debt. When you don't own everything outright and finance all of your stuff, it has a huge effect on the bottom line.

    • @Billy_Rizzle
      @Billy_Rizzle Месяц назад

      That is the net profit (the profit after all bills are paid). You are most likely thinking of gross profit, which is just revenue minus cost of goods sold.

  • @Billy_Rizzle
    @Billy_Rizzle Месяц назад

    Interviewer: what’s your profit margins?
    Owner: wanna hear a long ass story before I tell you the net? Also, forget the gross profit.
    Interviewer: REALLY?

  • @BenJohnston1993
    @BenJohnston1993 22 дня назад

    $16k for rent? lol crazy

    • @JoshR-k9q
      @JoshR-k9q 14 дней назад

      Only need to sell a few thousand cups of coffee to pay the rent...