coffee shop profit and loss statement

Save time with a gross margin calculator or make the calculations using the tools available as part of your accounting software. As an owner, you may be able to use anything left in the business to build cash reserves, reinvest or pay yourself a bit more. According to Salary Expert, average salaries for a coffee shop manager are roughly £36,882 in the UK and £46,085 in London.

Understanding Your Coffee Shop Monthly Expenses

Our business plan package saves you tons of time and money and enables you to get a professional coffee shop business plan that you can proudly share with prospective investors and other stakeholders. Our intuitive calculator makes it easy to plot out your financial landscape. Simply enter your coffee shop’s data into the relevant fields, such as daily sales, prices of products, and cost of goods sold. The calculator will automatically process this information, providing you with detailed projections and financial statements.

  • This section outlines how the initial funds you hope to receive will be utilized during the first year of operations.
  • Smaller operational items such as utensils, plates, cups, blenders, and other small tools necessary for daily operations.
  • Estimate footfall by discretely counting people as they walk past your proposed location at different times of day.
  • However, despite of Starbuck’s entrenched market position, many customers favor smaller, independent establishments that offer cozy atmosphere and good coffee at affordable prices.
  • When constructing your sales forecast, remember to take the direct expenses you will incur to make your sales into account.
  • Our financial plan calculator simplifies the process of creating an income statement for cafes and coffee shops, offering a time-saving solution that provides accurate and actionable financial insights.

Coffee Shop Financial Plan: Revenue Forecast

coffee shop profit and loss statement

Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks. Furthermore, coffee has really become a part of the coffee shop profit and loss statement lifestyle in the Pacific Northwest. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment. The owners will invest $140,000 and take out a bank loan for $30,000  to cover the start-up expenses and assets needed plus deficient spending in the early months.

Other factors affecting your café’s profit

coffee shop profit and loss statement

Simply put, a capital expenditure also called Capex, is any investment you incur to purchase a valuable equipment or long-term asset such as an expensive espresso machine, furniture for the venue or an IT system. For example, salaries usually tend to go up because you will not only increase your existing employees’ annual compensation but also hire additional staff if the business requires so. Other costs tend to remain relatively stable such as you rent, you monthly utilities bill…etc. This also has to cover fixed costs such as rent, staff salaries, utility bills, general expenses, and any loan repayments.

Keep in touch with your customers

coffee shop profit and loss statement

Discover the simplest way to create detailed graphs for your business plan. Expenses related to constructing or renovating the coffee shop premises to meet business needs. This includes plumbing, electrical work, flooring, and any structural modifications required to create a functional and inviting space.

coffee shop profit and loss statement

To give your coffee shop the best chances of success from the first moment the doors open, you need a solid business plan. Furthermore, occupancy costs like rent, loan repayments, and insurance serve as fixed overhead costs that directly impact the sales and profits needed to sustain your coffee shop. Create a reliable forecasted balance sheet by detailing your coffee shop’s assets and liabilities. From coffee machines to seating furniture, input purchase details, financing options, and even depreciation rates. Our model simplifies complex calculations, ensuring your balance sheet remains, well, balanced. Funding for the company comes from two major sources–owners’ investments and bank loans.

Executive Summary

  • When evaluating how much revenue a non-franchise coffee shop can make, using data from established coffee shop franchises can provide valuable insights.
  • Operating costs, which involve day-to-day expenses, become more predictable once your coffee shop is up and running.
  • It will help you to understand what types of goods provide you with the main part of your income.
  • Mr. Garfield has extensive business contacts in Oregon that he will leverage to help his new venture succeed.
  • Next, we need to understand the capital expenditures involved in launching a Coffee Shop business.
  • The cash flow statement, in comparison, needs to include all cash items from the P&L and other cash movements such as capital investments (also referred as “Capex”), fundraising, debt, etc.

Consider selling higher-margin products, such as alcohol, low-prep plates and desserts you can make cheaply in-house such as ice-cream and cakes. Get a trustworthy electronic point of sale (ePOS) system to help you shape rotas for busy and quiet times. Keep a waste book and make it a business rule to record any wastage. When it comes to avoiding unnecessary costs, St Martin’s Coffee Roasters has a few more tips to share. To stay open 12 hours a day, you’ll need staff – and they are likely to be your largest overhead. Proximity to professional residential areas may also become a factor for people working from home (either on a full-time basis or part time via hybrid working).

Coffee Shop Business Plan Template Description