The profit margin of a cafe in the US is between 80-100% according to some of the Google search results.

What's the figure in KL?

As I only drink kopi-o made at home, my price is 25 sen for coffee powder and boiled water.

What's your costs?

Rental, salary, water electric, daily cost.
now cafe open by youngster, must lingkup within 6 month because cannot cover the rental ( depend location )

That is only possible if you only count ingredient costs

As a business operation as a whole, it won't be so high. Should be anywhere between 10-30%. Which is the typical margin for F&B

Just remember a simple fact, if margin is really high, its easy for a competitor to undercut you.

i think gross is around 60-70%

Highest cost is rental
Second is staff wages

Thats why can charge RM48 for full English breakfast and RM 15 for tea

Gross vs Nett

F&B always >60/70% as i know

This post has been edited by intensecooling: Nov 4 2022, 09:51 AM

A lot of /k seem to think profit margin is:-

Selling Price/Ingredients cost.

I've been seeing a lot of post such as , I make myself big breakfast only cost rm10, outside selling rm30.
Roti canai cost is only rm0.30 worth of flour, but selling rm1.20
They don't seem to understand the cost structure and don't really understand overhead such as rental, labour makes up a big chunk of the cost.

Where can possible 80% margin

If possible I'm sure other restaurants will happy to steal customer from you with so called 60% margin

And let the margin wars begin

rental 10k per month
wages another 15k-20k per month (depends on kitchen)
assume both u and spouse working full time in cafe la

This post has been edited by spacelion: Nov 4 2022, 10:00 AM

absolutely correct... so many people think "i make kaya toast only 80cents why atas kopitiam can sell 5RM?!"

real life example here for you.

opened a Juice shop for the past 6 months as my side income.

Cost in general:
Rental 6k
Manpower 5k
Raw material 3k

Gross per month in general: 20k-25k

this is not including how much i've put into my renovation (80k)

So nice to do or not you decide yourself. but generally i feel its a pain in the ass. as its a side income i have nothing to complain. but as a main primary job, wouldnt suggest doing it for me PERSONALLY.

They say macam so easy. Ask them try to sell RM18 on a semi fancy restaurant setting lor... So many overhead cost that can bamboozled you in so many ways

But some also legit. I pay RM30 for baked beans, scrambled egg, hashbrowns, processed ham and bread, Vege, mushroom? Come on... I rather chose other things to eat

Depend a lot on volume

If highly dense area , sure can profit

can

/k style margin is calculated using Selling Cost/Ingredient cost . They assume rental , worker wages, electricity , is free.

Side income means u are not there to manage/work?

learn to roast, brew a good coffee. if your coffee really power, customers keep coming despite the slight expensive price.

these are the stuffs i pantang eat for english breakfast. hashbrown homemade ok la, if buy from frozen store, no la... felt being chop. i buy 9pcs @ RM1x, air fry it, makan till syok

thing is people go to fancy cafe not purely for the food.

people want to see and be seen in their fancy outfit. also instagram.

people spend who spend above what is necessary (base cost) is because they spend for emotional satisfaction

some hipster cafe wont lingkup as i know a few of them open in those industrial lot but still many people go on weekends and etc

There's hidden lost which is u don't know . Waste coffee bean, milk, perishable vege . Staff curi eat.