Coffee review

Running a cafe that sells 100 cups of coffee a day doesn't make a loss?

Published: 2024-09-20 Author: World Gafei
Last Updated: 2024/09/20, In recent years, coffee culture has gradually sprung up in Rongcheng, and the number of Rongcheng cafes is also growing rapidly, and now it has reached nearly 1000. Although the number of cafes continues to grow, Ye Zefan, president of the Fujian Coffee Industry Association, admitted to the reporter KuaiBao in Southeast China that at present, nearly 70% of the cafes in Rongcheng are in a state of loss, and many cafes have changed hands because they cannot continue to operate.

In recent years, coffee culture has gradually sprung up in Rongcheng, and the number of Rongcheng cafes is also growing rapidly, and now it has reached nearly 1000. Although the number of cafes continues to grow, Ye Zefan, president of the Fujian Coffee Industry Association, admitted to the reporter KuaiBao in Southeast China that at present, nearly 70% of the cafes in Rongcheng are in a state of loss, and many cafes have changed hands because they cannot continue to operate.

Most cafes in Rongcheng do not meet the capital preservation standard.

Lin Cong, president of Illy Coffee University in Xiamen, analyzed that among the input costs of cafes, rent accounts for the highest, reaching 50%, followed by decoration costs, followed by the purchase of equipment, while coffee raw materials are almost negligible in the cost.

Take a 50 sq m cafe as an example, the rent is $10,000 a month, four employees are invited, three ordinary employees are employed, each of them earns $3000 a month, and one senior employee earns $5000 a month, which costs $14000 a month on labour costs. The monthly cost of water and electricity is conservatively estimated at 3000 yuan, coupled with the cost of coffee materials, on the whole, the monthly cost of this cafe is about 30,000 yuan, and the average cost per day is 1000 yuan, which does not include other costs.

If it is calculated at 30 yuan per cup of coffee, at least 100 cups of coffee will have to be sold every day to break even. Obviously, most cafes in Rongcheng do not meet this capital preservation standard.

If you want to run a coffee shop with a slightly larger area (about 100 square meters), the upfront investment needs about 500000 yuan, excluding the basic monthly cost, the one-time fee also includes about 200000 yuan for decoration and 100000 yuan for equipment (including 30,000 to 40,000 yuan of coffee machines, beverage machines and other equipment on the bar). We should also be prepared to lose money in the first half of the year. Only after a test of about half a year can some cafes embark on the road of virtuous circle development.

Even in the central area of the so-called Coffee Street in front of the city guard, the operator of a larger cafe disclosed to the reporter KuaiBao in the southeast that the store sold only about 30 cups of coffee per month on average. The maintenance of business mainly depends on some other extended products paired with coffee in the store, and it is not profitable to rely on coffee alone.

The growth of coffee shops exceeds the growth of coffee bean sales.

Even if the Rongcheng coffee business situation is so fierce, in the past two years, there are still many operators one after another, resulting in more and more coffee shops, one closed down and the other took over.

According to Lin Cong, Rongcheng coffee management also wants to form a commercial atmosphere, there is still a long way to go, it takes a long time, and it does not have a commercial scale in the short term.

In addition, although citizens' awareness of coffee is also increasing, most citizens still do not have enough appreciation of coffee to distinguish the taste of different kinds of coffee. therefore, the most popular coffee in the coffee market is the coffee with milk and sugar-cappuccino, which has become the mainstream coffee in Rongcheng. It is not enough to sell black coffee if coffee shops are to survive.

At present, the Rongcheng coffee market is growing rapidly, and one of the reasons why 70% of the cafes are losing money is that there are too many coffee shops. Overall, the sales of coffee beans are growing, and the consumer group is also growing, reflecting that the coffee market is also growing, but not as fast as coffee shops.

In addition, because the input cost of cafes is less than catering, many operators choose to open cafes. But the industry is a "new metabolic" process, with one failing and the other reopening. Many operators are out of love for coffee, and running a coffee shop is a slow precipitation process, the initial payment is basically out of proportion to the return, and the profit of this industry is also relatively low, as long as it is not losing too much. Operators are still maintaining their dreams.

Ye Zefan said that in order to run a coffee shop well, first of all, its own positioning and development direction are very important. Coffee should not be positioned as a petty bourgeoisie product, but should be made to become a coffee drink. To be approachable, operators must also have persistence and patience, and transmit coffee culture, so as to promote the development of the coffee market.

"in addition, the coffee industry needs the support of government departments, and it is best to have the relevant infrastructure to form a neighborhood with a coffee culture atmosphere and play the local coffee culture business card." Lin Cong said.

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