What is a good profit margin for a coffee shop?

Coffee shops typically achieve 25–35% gross margin on beverages. Espresso-based drinks have ingredient costs of $0.50–$1.50 but sell for $4–$7, resulting in 75–85% gross margin on the drink itself. Net profit after all expenses is usually 6–15%.

How do you calculate the cost of a coffee drink?

Add the cost of: espresso (coffee beans per shot), milk or milk alternative, syrups and sweeteners, cup and lid. A standard latte typically costs $0.80–$1.50 to make. Divide by your target food cost % to get the selling price.

What percentage of coffee shop revenue is food cost?

Coffee beverages typically have a 15–25% food cost percentage (very low). Food items sold in cafés run 28–35%. Blended overall coffee shop food cost is usually 25–30%. This is lower than restaurants because beverages have very high margins.

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Coffee Shop Pricing Calculator
Price Every Drink Correctly

Last reviewed: July 28, 2026

Enter ingredient costs for any coffee drink and get the right selling price, gross margin, and profit per cup instantly.

Quick Presets

Drink Name (optional)

Ingredient Costs

Coffee / Espresso ($)

Per shot or per 12oz brew

Milk / Milk Alternative ($)

Amount used per drink

Syrups & Sweeteners ($)

All syrups, sauces, sugars

Cup, Lid & Other ($)

Packaging, toppings, whip

Target Food Cost %

22%

Beverages: 15–25% · Food items: 28–35%

Suggested Price

$6.50

At 22% food cost · 78% gross margin

Total Cost

$1.430

per drink

Gross Margin

78%

Profit/Cup

$5.07

Formula

$1.430 ÷ 0.22 = $6.50

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Coffee Drink Price Benchmarks

North American café market averages.

Drink	Ingredient Cost	Typical Price	Food Cost %
Espresso	$0.35–$0.55	$3.00–$4.50	10–15%
Latte (12oz)	$1.20–$1.60	$5.00–$7.00	18–25%
Cold Brew (12oz)	$0.90–$1.20	$4.50–$6.50	16–22%
Matcha Latte	$1.30–$1.80	$5.50–$7.50	20–26%
Drip Coffee (12oz)	$0.20–$0.35	$2.50–$4.00	8–13%
Cappuccino (8oz)	$0.90–$1.20	$4.00–$5.50	18–24%

Frequently Asked Questions

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