A selection of menu items—and knowing how to sell them—are vital to your coffee shop’s success.
The rub at a retail coffee shop: your main product has great gross profit margins, but low overall ticket averages. Since you pay your rent in straight-up dollars—not as a percentage of your profit—bringing your average individual sale well above $3 or $5 is crucial to your success. Cafes with an only (or mostly) coffee strategy can be busy all day, but still not generate enough profit to keep their doors open.
To realize your dream of coffee retail success, you need a “coffee plus” strategy (coffee plus pastry or other food item). Coffee should be no more than 40 percent of your weekly sales—about two item sales per customer transaction.