Profit
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Full Description: Profit analysis of coffee shops has a direct correlation with rent and other fix costs such as utilities. If you are a franchise a fix cost is the royalty fees. The goal is to have this cost fewer than 20% of your gross sales. This gets you an opportunity to be profitable.

Commodity prices such as milk can really affect your profit if your pricing for your goods is moderately static. This has hurt Starbuck Coffee Lately as their recent stock price reveals.

Cost of goods sold is usually around 44% for an independent shop and this is slightly better for a franchise operation due to their vendor discounts. Employee related expenses are around 18% of total operational cost. Miscellaneous cost is around 8%. This includes fee, equipment repairs, insurance, and other items. If you do not spend too much on advertising the remain 10% for a independent coffee shop is profit.

This give one an overview of what a coffee shop may profit under perceived normal conditions. However I could be wrong due to the whirlwind the economy is facing due to soaring gas prices and the mortgage problems we are facing.











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