Are Coffee Shops Profitable? A Look at the Numbers - 01/31/2024

JOIN THE VALOR COFFEE COMMUNITY to get the Cafe Viability Spreadsheet – Courses, Exclusive Videos, PDFs, Spreadsheets and more: https://community.valor.coffee/invita... Sign Up for Alerts About Our Community (coming soon) – Courses, Exclusive Videos, PDFs, Spreadsheets and more: https://mailchi.mp/018d9c38a953/valor... Like this Pod? Help us out by liking this video and SUBSCRIBING :-) We're live just 42 minutes from Six Flags Over Georgia to answer a very common question: are coffee shops profitable? We take a look at our Cafe Viability Spreadsheet (link to download above!) and go on a hypothetical new cafe's first year. We'll be talking about the terms used, filling out the spreadsheet together, sharing insights we've learned over the years, and ultimately arrive at an answer of whether a standard-ops cafe can make a buck! Thanks for listening, y'all :P EDIT AND PSA: Owners can no longer take tips. We’ve been out from behind the bar/making tips for the past couple years so we were genuinely out of the know on this one. Take this into consideration when making your projections. If you purchase something through one of our links, we may be entitled to a share of the sale We're partnered with Clive to bring you sweet deal at a discounted rate! Use Discount Code VALOR5 at checkout for 5% off Lucca and Eureka products! Shop Clive products here: https://clivecoffee.com?sca_ref=53154... Buy Valor Coffee: https://valor.coffee/shop Want to become a Wholesale Partner? Email us at [email protected] to set up an account! Want us to review your coffee? Have a question you want to answer on the show? Send us an email to [email protected] Follow the Valor Coffee Podcast on Instagram:   / valorcoffeepod   Follow Valor on Instagram:   / valor.coffee   Listen on Spotify: https://sptfy.com/P29t Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast... ____ Subscribe to Riley's YouTube Channel: @rileywestbrook Follow Riley:   / rileywestbrook   Follow Ross:   / rosswalters   Follow Ethan's Parody Account:   / ethanrivers777   #specialtycoffee #coffee #thirdwavecoffee 00:00:12 Introduction 00:04:27 Why do people open coffee shops as their first business? 00:11:52 Spreadsheet and Terms Overview 00:22:52 Different size spaces and physical locations affect viability 00:31:09 This is not a profit and loss statement 00:31:41 What is “Cost of Goods Sold” + other terms 00:34:15 Talk to your accountant! 00:39:40 Let's fill in the spreadsheet 00:46:45 Rent Calculator 00:50:27 Staff and Wages Calculator 00:58:25 Paying Yourself a "Base Wage" as an Owner 00:59:59 Multiple other categories, rapid-fired for your listening pleasure (and show length) 01:06:05 Cost of Goods Sold, Transactions per Day, and Average Transaction. 01:11:34 Is this cafe profitable? 01:14:48 How would a hypothetical year two look? 01:19:50 Conclusion