average coffee shop net profit
Coffee Sales. Coffee sales play a big role in boosting a cafe's profits, since the markup on coffee is higher than most food items. An average cup costs from 55 to 69 cents, which most cafes sell for $2.50 to $3.50, according to consultant Tony Eldred's analysis for the Beanzaround website. If the price is $2.50, selling 100 more cups per day would generate an additional $66,000 per year in profits. Based on these figures, Eldred estimates profit margins for cafes and restaurants should equal 25 and 7 percent, respectively.