No profit in a coffee says café owner
While coffee drinkers are complaining about the exorbitant price of a morning coffee, café owners are lamenting the lack of profit in a cup of the brew.
Yasmin Chung, who runs the Sisterhood cafe in Hobart, told Yahoo Finance that the cost of living crisis and surging supply charges were biting hard.
“Milk’s going up, it’s gone up lots in the last 12 months. Our coffee prices have gone up. It’s a lot of money and it makes it more of a luxury good as opposed to everyday good."
Chung explained her profit predicament on TikTok.
“If I'm selling a small takeaway for $4.80 … the first 45 cents goes straight to the government, and that is the GST portion that we have to give the government for all our sales,” she explained.
“Next up is $1.30. That's 30 per cent And that's our COGS [Cost Of Goods Sold]. That's the coffee. It's the milk. It's the coffee cup and the lid.”
Add in a wages bill of 40 per cent, superannuation, insurance and utilities and there’s not much left for the business – around 40 cents profit.
“I was surprised that people didn't know that,” Chung said on TikTok.
Chung ha snow diversified into venue hire for events.
Jonathan Jackson, 7th March 2024
