Community cafe - costs

[Gochf...@aol.com]

You might try to calculate how much it costs to serve just one cup of coffee and a muffin so you have some idea how much to charge, depending on the volume of customers and the cost per unit.

 

Calculate in: rent, labor costs (minimum wage? fringe? unemployment insurance? workers comp?), sales taxes per unit, vendor costs, utility costs (electricity, gas, heating and air conditioning, water, sewer), sanitation costs, the amortization of fixture costs, disposable material costs (napkins, condiments, coffee, sugar, milk), administrative, legal, bookkeeping, clean-up, cleaning materials, licenses, permits, insurance, debt service, construction costs (materials, permits and labor)... Many costs are fixed, irrespective of the number of units sold. Material costs go up with each unit sold; however, certain volumes might generate discounts

 

From that you can calculate how much volume you need to break even or even make a profit. Then divide that volume by the number of seats (assuming no take out) and you can calculate how many times each seat must turn over in a particular unit of time in order to provide that volume. That will give you an indication of how much paying business you must do in order to stay in business.

[Brenda Koenig]

I think (Gochfeldlaw) this would b a great template for the start up costs proceeding toward future income.
Brenda Koenig
 



 

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From: Gochf...@aol.com
Date: Sun, 3 Oct 2010 12:53:53 -0400
Subject: Community cafe - costs
To: cortelyou-com...@googlegroups.com

[Heather]

It seems such a template might exist somewhere and be in the public
domain.
Or perhaps we might ask around at coffee shops we know.

Bob, you mentioned the Good Coffee House a while ago as an example of
a model for
the profit/ non profit relationship, but perhaps it could serve as a
source of information
about this level of detail?

Do you know anyone in that congregation of Ethical Culture Society
folks?
Heather