How a coffee shop makes money

Sources

• Average price: coffee, 100%, ground roast, all sizes, per pound, U.S. city average (series APU0000717311) · U.S. Bureau of Labor Statistics, 2026
• Average price: milk, fresh, whole, fortified, per gallon, U.S. city average (series APU0000709112) · U.S. Bureau of Labor Statistics, 2026
• Starbucks Corporation Form 10-K for the fiscal year ended September 28, 2025 · Starbucks Corporation (filed with the U.S. SEC), 2025
• Dutch Bros Inc. Form 10-K for the fiscal year ended December 31, 2025 · Dutch Bros Inc. (filed with the U.S. SEC), 2025
• Restaurant operators kept food cost ratios in check in 2024 (from the 2025 Restaurant Operations Data Abstract) · National Restaurant Association, 2024
• Elevated labor costs had a significant impact on restaurant profitability in 2024 (from the 2025 Restaurant Operations Data Abstract) · National Restaurant Association, 2024
• Restaurant occupancy costs were more than 5% of sales in 2024 (from the 2025 Restaurant Operations Data Abstract) · National Restaurant Association, 2024
• New Association report helps operators gauge their restaurant performance (2025 Restaurant Operations Data Abstract) · National Restaurant Association, 2024
• Statistics of U.S. Businesses 2022: firms, establishments, employment, annual payroll and receipts by industry and enterprise receipts size (NAICS 722515, Snack and Nonalcoholic Beverage Bars) · U.S. Census Bureau, 2022
• Square fees: payment processing rates (Square Free plan) · Square (Block, Inc.)
• Dutch Bros Sets Its Sights on the Breakfast Rush · Placer.ai, 2025
• Occupational Employment and Wage Statistics, May 2025: Restaurants and Other Eating Places (NAICS 722500) · U.S. Bureau of Labor Statistics, 2025

Every number

• $5.50example (example number: Simplified example: a latte's menu price.) · Simplified example: a latte's menu price.
• $0.84example (example number: Simplified example: the lines of the cost card, added up.) · Simplified example: the lines of the cost card, added up.
• $9.33/lbbls.gov ·2026 · US average grocery price for ground coffee, September 2026. Cafés buy wholesale beans, often specialty ones, at their own prices.
• $4.11/gallonbls.gov ·2026 · US average grocery price for whole milk, September 2026. Cafés buying by the case usually pay less.
• 18 gexample (example number: Simplified example: the coffee in a double shot of espresso.) · Simplified example: the coffee in a double shot of espresso.
• 10 ozexample (example number: Simplified example: the milk in a twelve-ounce latte.) · Simplified example: the milk in a twelve-ounce latte.
• 15.3%example (example number: Worked out from the example cup cost and price.) · Worked out from the example cup cost and price.
• 27.9%sec.gov ·2025 · Starbucks North America, fiscal 2025: product and distribution costs as a share of revenue.
• 51%sec.gov ·2025 · Starbucks North America, fiscal 2025: store operating expenses (staff pay and benefits, rent and running the stores) as a share of revenue.
• 9.6%sec.gov ·2025 · Starbucks North America, fiscal 2025: equipment wear, the head office, closing stores and other costs as a share of revenue, added up from the annual report's lines.
• 11.5%sec.gov ·2025 · Starbucks North America, fiscal 2025: operating income (profit before interest and taxes) as a share of revenue.
• 23%sec.gov ·2025 · Food as a share of Starbucks' own stores' sales, fiscal 2025.
• 73%sec.gov ·2025 · Drinks as a share of Starbucks' own stores' sales, fiscal 2025.
• $1.53example (example number: Simplified example: Starbucks North America's share applied to the example latte price.) · Simplified example: Starbucks North America's share applied to the example latte price.
• $2.81example (example number: Simplified example: Starbucks North America's share applied to the example latte price.) · Simplified example: Starbucks North America's share applied to the example latte price.
• $0.53example (example number: Simplified example: Starbucks North America's share applied to the example latte price.) · Simplified example: Starbucks North America's share applied to the example latte price.
• $0.63example (example number: Simplified example: Starbucks North America's share applied to the example latte price.) · Simplified example: Starbucks North America's share applied to the example latte price.
• 25.9%sec.gov ·2025 · Dutch Bros' own shops, fiscal 2025: beverage, food and packaging costs as a share of their sales.
• 26.9%sec.gov ·2025 · Dutch Bros' own shops, fiscal 2025: labor costs as a share of their sales.
• 16.6%sec.gov ·2025 · Dutch Bros' own shops, fiscal 2025: occupancy and other shop costs as a share of their sales.
• 1.7%sec.gov ·2025 · Dutch Bros' own shops, fiscal 2025: the cost of opening new shops as a share of their sales.
• 28.9%sec.gov ·2025 · Dutch Bros' own shops, fiscal 2025: what's left at the shops, worked out by taking the annual report's four shop costs away from their sales.
• 7.2%sec.gov ·2025 · Dutch Bros' net income as a share of total revenue, fiscal 2025.
• 0.9 pointssec.gov ·2025 · How much higher coffee prices pushed Dutch Bros' goods costs as a share of sales in fiscal 2025 (the report says ninety basis points).
• 50%sec.gov ·2025 · Coffee drinks' share of Dutch Bros' sales in 2025 (the report says about this much).
• 25%sec.gov ·2025 · Energy drinks' share of Dutch Bros' sales in 2025 (the report says about this much).
• $1.42example (example number: Simplified example: Dutch Bros' share applied to the example latte price.) · Simplified example: Dutch Bros' share applied to the example latte price.
• $1.48example (example number: Simplified example: Dutch Bros' share applied to the example latte price.) · Simplified example: Dutch Bros' share applied to the example latte price.
• $0.91example (example number: Simplified example: Dutch Bros' share applied to the example latte price.) · Simplified example: Dutch Bros' share applied to the example latte price.
• $0.09example (example number: Simplified example: Dutch Bros' share applied to the example latte price.) · Simplified example: Dutch Bros' share applied to the example latte price.
• $1.59example (example number: Simplified example: what's left of the example latte price after the other layers.) · Simplified example: what's left of the example latte price after the other layers.
• 32.4%restaurant.org ·2024 · Food and drink as a share of sales: the median for counter-service restaurants, 2024. No survey reports cafés on their own.
• 31.7%restaurant.org ·2024 · Staff pay, payroll taxes and benefits as a share of sales: the median for counter-service restaurants, 2024. No survey reports cafés on their own.
• 5.2%restaurant.org ·2024 · Rent and the other costs of the building as a share of sales: the median for counter-service restaurants, 2024. No survey reports cafés on their own.
• 4%restaurant.org ·2024 · Income before taxes as a share of sales: the median for counter-service restaurants, 2024. No survey reports cafés on their own.
• 26.7%example (example number: Worked out: what's left of each dollar after the survey's food, staff, rent and profit medians.) · Worked out: what's left of each dollar after the survey's food, staff, rent and profit medians.
• $1.78example (example number: Simplified example: the counter-service survey's share applied to the example latte price.) · Simplified example: the counter-service survey's share applied to the example latte price.
• $1.74example (example number: Simplified example: the counter-service survey's share applied to the example latte price.) · Simplified example: the counter-service survey's share applied to the example latte price.
• $0.29example (example number: Simplified example: the counter-service survey's share applied to the example latte price.) · Simplified example: the counter-service survey's share applied to the example latte price.
• $1.47example (example number: Simplified example: what's left of the example latte price after the other layers.) · Simplified example: what's left of the example latte price after the other layers.
• $0.22example (example number: Simplified example: the counter-service survey's share applied to the example latte price.) · Simplified example: the counter-service survey's share applied to the example latte price.
• $811,000census.gov ·2022 · Worked out: what US coffee and snack bars sold in 2022, divided by how many there were, rounded to the nearest thousand. The average includes big chains' stores; most independent shops sell less.
• 59,857census.gov ·2022 · Companies that owned those shops in 2022. Most own just one.
• 37,688census.gov ·2022 · Worked out: companies in the Census's two smallest yearly-sales groups, added up, 2022.
• $100Mcensus.gov ·2022 · The Census's largest group by yearly sales: companies selling at least this much.
• $585,000census.gov ·2022 · Worked out: what the shops of companies below the largest group sold in 2022, divided by how many of those shops there were, rounded to the nearest thousand.
• 78,856census.gov ·2022 · US snack and nonalcoholic beverage bars with employees in 2022: coffee shops, plus ice cream, donut and juice shops.
• 63%census.gov ·2022 · Worked out: the share of the companies (not shops) whose yearly sales were under the next number, 2022.
• $500,000census.gov ·2022 · The Census groups companies by their yearly sales; this is one of its lines.
• $2.1Msec.gov ·2025 · Average yearly sales of a Dutch Bros company-run shop open at least fifteen months, fiscal 2025.
• $2.2Msec.gov ·2025 · Worked out and rounded: Starbucks' North American company-run store sales in fiscal 2025, divided by its average number of company-run stores there.
• $7example (example number: Simplified example: a typical coffee shop order.) · Simplified example: a typical coffee shop order.
• 317 orders a dayexample (example number: Worked out from the Census average, a year of days and the example order, rounded.) · Worked out from the Census average, a year of days and the example order, rounded.
• 2.6%squareup.com · Square's published rate for a tapped, dipped or swiped card.
• $0.15squareup.com · Square's published fee per card payment, on top of the percentage.
• $4example (example number: Simplified example: a drip coffee's menu price.) · Simplified example: a drip coffee's menu price.
• $0.104example (example number: Worked out: Square's percentage of the example price.) · Worked out: Square's percentage of the example price.
• $0.254example (example number: Worked out: the percentage part plus Square's fixed fee.) · Worked out: the percentage part plus Square's fixed fee.
• 6.4%example (example number: Worked out from the example price and Square's published rate.) · Worked out from the example price and Square's published rate.
• $15example (example number: Simplified example: the burger-and-fries order from the first restaurant lesson.) · Simplified example: the burger-and-fries order from the first restaurant lesson.
• 3.6%example (example number: Worked out from the example order and Square's published rate.) · Worked out from the example order and Square's published rate.
• 2.5%squareup.com · Square's published in-person rate on its paid Plus plan, plus the same fixed fee.
• 2.4%squareup.com · Square's published in-person rate on its paid Premium plan, plus the same fixed fee.
• 43.1%placer.ai ·2025 · Share of the coffee business's daily visits between 5 a.m. and 11 a.m., from Placer.ai's phone-location estimates for 2025, year to date, published December 2025.
• $14.67/hourbls.gov ·2025 · Median hourly pay for fast-food and counter workers, the job group baristas are in, at US restaurants, May 2025.
• $33.15example (example number: Worked out: two hours at the median wage, plus the example payroll taxes and insurance.) · Worked out: two hours at the median wage, plus the example payroll taxes and insurance.
• 13%example (example number: Simplified example: payroll taxes and insurance on top of wages, as in the restaurant lessons.) · Simplified example: payroll taxes and insurance on top of wages, as in the restaurant lessons.
• 27.9%sec.gov ·2025 · Starbucks North America, fiscal 2025: product and distribution costs as a share of revenue.