Thursday, February 26th, 2015
It can be easy to feel like you’re making money in a cafe. Cash is in the till, the place is busy, you’re paying bills – and then someone (probably your accountant) tells you that you’re not actually make any profit.
It’s a common story, according to the Australian Taxation Office, the average operating profit in Australian coffee shops is around 10% of sales. So for a cafe doing sales of $10k / week that works out to $50k / year profit to pay yourself, interest on the business loan, tax & one day start to pay off debt…
This is obviously not ideal…so what should it be?
I think that’s what we should be aiming for, unless the business is just a hobby, you need to actually see some money at the end of this.