Coffeehouse Business Plan

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Whilst some say its black coffee with no sugar, or cream; yet others like it really creamy.

Whatever the preference is, the truth remains that coffee sure does have a distinctive taste and smell that gets one hooked to it.

One of the reasons besides the relaxing and therapeutic effect coffee has on the human body, most people find it really reliable when the need to stay up late either to watch some favorite movie or soap, or stay up late and study for an upcoming exam.

Thanks to the caffeine level in it which helps keep one wide awake.

These expenses are fixed costs, that is, their total price tag doesn't really vary relative to how much product you sell.

Because the overall cost of these expenses remains fairly consistent, the cost per unit diminishes as you produce and sell more units.

The average gross margin in the coffee industry is high, yet the average operating income, or profit, for small cafes tends to be low.

This apparent contradiction points to the high price of operating expenses other than cost of goods sold.

Direct costs consist of the price of coffee and cups, along with the labor that goes directly into producing the food and drinks you sell.

The other expenses that winnow average profits down to just 2.5 percent include rent, advertising, utilities and supplies.

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