Coffee News: from Seed to Cup

Study Gives Insight Into Coffee Shop & Roastery Profitability

,

You can spend hours staring at the accounts, but still not know how to improve your profits. However, a new SCA Benchmarking Study has taken on the challenge of making coffee and roastery profitability more transparent.

With this study, the SCA has set out to determine what the industry standards are and how “profit leaders” do business differently. It sheds interesting light onto the returns on assets, profit margins, sales growth, and cost of goods sold of thousands of coffee businesses. And the results are surprising.

How Do Roasteries & Coffee Shops Profit?

Although you might expect profit leaders to buy cheap and sell high, that does not seem to be the case. Instead, it appears that they make their profits from a high return on assets – an astounding 75% return, in fact, compared to 17% for the average roaster.

Find out more in this video of Heather Ward, Market Research Manager of the SCA, presenting at Re;co Symposium:

(Article continues below video.)

SEE ALSO: VIDEO: Will Your Third Wave Coffee Shop Be Profitable?

SEE ALSO: Coffee Business: How to Improve Profitability & Reduce Risk

The data used in this study was from 2014, and the SCA is currently collecting 2017 data. They hope to make this more representative, particularly by including more European respondents.

Anyone who participates in the survey will have free access to the detailed results, helping them to compare their business to others in the industry. To participate, register here.

Please note: Perfect Daily Grind does not own the rights to these videos and cannot be held accountable for their content.

Want to read more articles like this? Sign up to our newsletter!

Print Friendly, PDF & Email