1. Profit Per Cup: The Building Block of Revenue

Every cup of coffee sold contributes to your bottom line, but how much profit does each cup generate?

Average Selling Price: A standard cup of coffee in the UK typically sells for £2.50 – £3.50, depending on size and location.

Cost of Goods Sold (COGS): The direct cost of making one cup of coffee – including coffee beans, milk, cups, and lids – ranges between £0.70 – £1.00.

Profit Margin Per Cup: This means the gross profit per cup is approximately £1.50 – £2.50, equating to a 60% – 70% profit margin.

2. Weekly Revenue and Profit Estimates

Your weekly revenue will depend on the volume of customers and your average sale price.

Example Calculation:

• 200 cups sold per day (average for a busy high street coffee shop)

• £3.00 average price per cup

• Weekly Sales: 200 cups x 7 days = 1,400 cups

• Weekly Revenue: £3.00 x 1,400 = £4,200

• Weekly Profit: £2.00 profit per cup x 1,400 = £2,800 gross profit

3. Monthly and Annual Profit Projections

With consistent sales, profits can accumulate significantly over time.

Monthly Profit: £2,800 gross profit per week x 4 weeks = £11,200 gross profit

Annual Profit: £11,200 x 12 months = £134,400 gross profit

Keep in mind, this is before factoring in operating costs such as rent, wages, utilities, and supplies.

4. Operating Costs: What Eats into Your Profits?

While gross profit figures look promising, operating expenses will affect your final profit margins.

Common Operating Costs Include:

• Rent: £1,500 – £3,000 per month (depending on location)

• Wages: £8,000 – £12,000 per month for baristas and staff

• Utilities: £300 – £600 per month

• Insurance and Licensing: £100 – £300 per month

• Marketing: £200 – £500 per month

After deducting these expenses, net profit margins typically range between 10% – 20% for a well-managed coffee shop.

5. How EP Finance Can Support Your Coffee Shop

Starting or expanding a coffee shop requires significant upfront investment in equipment, renovations, and working capital. At EP Finance, we offer tailored Restaurant Finance solutions to help you secure the funding needed to bring your coffee shop vision to life.

Our expert team can help with:

• Equipment Finance for coffee machines, grinders, and kitchen appliances

• Cash Flow Loans to cover rent and staffing costs during your early months

• Merchant Cash Advances to provide flexible funding based on your card sales

With EP Finance, you can access the funding you need to fuel your coffee shop’s success — without compromising your cash flow.

While coffee shops can generate healthy profits, success depends on understanding your revenue, managing operating costs, and securing the right funding. With tailored finance solutions from EP Finance, you can invest in your coffee shop’s future and focus on delivering great coffee to your customers. Get in touch today to explore how we can support your coffee shop journey.