*** Coffee - Breakdown of a Cup of Coffee *** I find it facinating understanding the breakdown of the input costs into the various products and services we utilise. Nothing is closer to most people's hearts than the morning coffee. The attached graphic came from the Australian Broadcasting Corporation (ABC) News article shows the breakdown of costs in a coffee: https://lnkd.in/gu6PsdS2 ⭐For every $5 coffee the coffee beans only represent $0.60. ⭐The actual coffee, milk, cup and lid represents 28% of the cost or only$1.41 ⭐Labour, rent, equipment and operationak costs are 72% of the cost. I also ponder what business coffee shops are really into? ⭐Renting out tables for meetings ⭐Caffeine clinic to help our addictions ⭐Productivity enhancement ⭐Entertainment venue where we can catch up with friends The article is also very interesting in providing details into the recent increase in coffee prices due to the weather conditions in some of the key growing regions of Vietnam and Brazil. #coffee #caffeine #cafe
This graphic is wrong. It assumes zero profit margin.
Recently at a hotel in Adelaide, I mistakenly ordered a barista made coffee. The mistake was it cost an additional $5 to the included free breakfast. I followed up with a machine made coffee which tasted better (both taste and additional cost of $0). I'm a bit astounded that we even have shops and humans making coffee any more is my point. I don't even think we need Optimus to make coffees in the future. Yes, we pay to sit somewhere!
When I see this I think about ‘shrinkflation’. The raw products make up so little of all we consume, yet that is a prime target for trimming costs. My assumption: margins are so small on most products, that it does make a difference to the producer.
Very interesting, thank you for sharing.
Chief Underwriting Officer
4moBill the entire coffee-shop industry of Sydney owes you royalties :)