Re:Why Starbucks actually helps mom and pop coffeehouses (2007)
by shas3 on Friday December 04, 2015 @06:00PM
(#10679794)
400 percent mark up, yes, but you have to meet volume targets if you have to break even given rent and other fixed costs. Let's say, you pay $5000 rent, another $200 a month for equipment like espresso machines, around $600 for utilities, another $600 for supplies, then you need to sell, 6400/0.16 = 40,000 cups of coffee. That is around a thousand per day. Let's relax the constraints and say, expenses are between $1000-$6400/month between 200-1000 coffee cups a day. That doesn't seem like a very easy target to achieve.
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Re:Why Starbucks actually helps mom and pop coffeehouses (2007)
by jasonkester on Saturday December 05, 2015 @03:19AM
(#10681284)
You accidentally sold your coffee for $0.16 a cup in your example. Try marking it up to $4.00 and your same math leads you to a nice easy profit selling 50 cups per day.