That time I discovered coffee shops actually lose money on my $4 latte

I was reading a report from some business journal while waiting for my pour-over at a local place in Portland, and it said most cafes only make about 10 cents profit per drip coffee after you factor in rent and labor. Made me feel a little guilty about camping here for 3 hours on a single cup - has anyone else looked into how much their regular spot actually needs people to spend?

2 comments

2 Comments

xena_rivera6318d ago

But do you really bring in enough new business just by sitting there? Like, how many people actually walk in and order because they saw you hunched over a laptop versus just walking past a busy window. Feels like we tell ourselves that to justify the guilt without really knowing if its true.

jade88518d ago

Oh COME ON. That's like feeling guilty for watching 5 minutes of Netflix because it costs them electricity. Of COURSE they make pennies on a single coffee, that's not the point. They want you to buy the expensive pastries or come back for lunch when you get hungry. You camping there for 3 hours is literally FREE advertising for them because other people see a busy place and think it must be good. Plus if you're a regular who tips sometimes and spreads word of mouth, you're WAY more valuable than the 10 cents they lose on your first drink. This whole "guilt trip" thing is just business journalists trying to sound deep about something that's been true forever.