This calculator helps coffee shop owners project monthly and annual revenue, including net revenue after expenses and taxes. By providing key inputs like customer estimates, average sales, and operating costs, users can gain a clear understanding of their business’s financial health.
Coffee Shop Revenue Calculator
Estimate your coffee shop's revenue and expenses
Business Inputs
Financial Projections
Monthly Calculations
Annual Projections
Key Metrics
How to use this calculator
I worked with industry veteran Bryan Reynolds, owner of the 8-location Anthem Coffee to get feedback on this calculator in addition to industry research to help build the basis for these calculations.
Daily Customers Estimate: Enter the typical number of customers you expect each day.
As Bryan Reynolds mentioned, understanding customer flow is crucial, even if your location is considered a risk initially. Bryan shared, “We looked at locations that didn’t feel right, but we knew there was potential.” Use this input to plan customer flow based on your unique circumstances and tweak it to see how monthly customers impact your bottom line numbers.
Hat tip to Bryan Reynolds for guidance on this tool.
Average Sale per Customer ($): Input the average amount each customer spends. By default average sale per customer is set to $7.81 in the calculator based on a reporting from Toast Tab. This includes beverages, food items, and upsells like pastries or add-ons. Bryan mentioned that events like parades can significantly increase sales, so consider seasonal variations. This calculator assumes you will be open an average of 30 days per month.
Cost of Goods Sold (COGS) Percentage (%): The cost of the ingredients used to make products, ideally between 25-35% of total sales, but this isn’t always practical. As Bryan emphasized, maintaining even a profit margin of 10-12% can be challenging during the early days and COGS plays a significant role in this.
Labor Costs ($/month): Input the total monthly labor costs, including wages, salaries, and payroll taxes. Bryan discussed how labor efficiency is essential: “There’s ways to train your team members to work smarter, not harder, and to maximize their capabilities while they’re on the floor.”
Overhead Costs ($/month): Enter your rent, utilities, insurance, and other fixed monthly expenses.
Other Revenue Sources (Optional): Include additional revenue streams like merchandise sales or catering orders. Bryan’s journey included multiple revenue sources, from pop-up shops to concession stands, showcasing the importance of diversification.
Tax Rate (%): Enter your estimated tax rate that will apply to net profits. The default for this tool is set at 35%.
Understanding the Calculations
Monthly Revenue Calculations: Monthly Revenue = (Daily Customers × Average Sale × 30 Days Open per Month) + Other Monthly Revenue
COGS = Monthly Revenue × (COGS Percentage ÷ 100)**
– **Gross Profit = Monthly Revenue – COGS
Operating Expenses = Labor Costs + Overhead Costs + Marketing & Miscellaneous Costs
Net Revenue (Pre-Tax) = Gross Profit – Operating Expenses
Taxes = Net Revenue × (Tax Rate ÷ 100)
Net Revenue (After Tax) = Net Revenue – Taxes
Annual Projections:
- Annual Gross Sales = Monthly Revenue × 12
- Annual Net Revenue = Monthly Net Revenue (After Tax) × 12
Bryan emphasized the importance of maintaining profitability and efficiency: “My goal is to see 10% or more net profit. Why aren’t we hitting that? You start asking that question, you start digging.”
- Labor Cost Percentage = (Monthly Labor Costs ÷ Monthly Revenue) × 100**
Industry standard Labor Costs: Some experts report labor costs should not go beyond 30% of total sales.
About Bryan Reynolds
Bryan Reynolds is the visionary behind Anthem Coffee, an independent coffee brand that has grown to eight locations across Washington and Arizona. Despite being told that his first location was in a “bad area” and unlikely to succeed, Bryan’s perseverance turned it into a thriving coffee shop generating seven figures in annual revenue. His success story is a testament to his deep understanding of the coffee industry, including location selection, community engagement, and financial sustainability.
On-site with Bryan Reynolds in Washington his first location.
Bryan’s teaching style is practical and experience-based. He believes in the importance of taking calculated risks and seizing opportunities, even in unconventional locations. As he says, “We looked at locations that didn’t feel right, but we knew there was potential.” His journey also highlights the significance of staying connected with the community, as he emphasizes, “No one’s going to be able to tell your story better than you can.” Bryan has successfully used marketing and community initiatives to drive customer loyalty and create memorable experiences, something he encourages other coffee shop owners to do.
Bryan’s in-depth knowledge of opening new locations is evident from his strategic expansion into Arizona, a move that included acquiring thriving coffee shops and seamlessly transitioning them into the Anthem Coffee family. He speaks openly about the challenges of maintaining profit margins, emphasizing that aiming for 10-12% net profit requires continuous adaptation and efficiency improvements. “You start asking questions, you start digging,” he says, reflecting his commitment to improving every aspect of the business.
Related tools:
Food Truck Business Revenue & Profit Projection Calculator: In addition to 8 locations, Bryan also owns a coffee truck under the Anthem Coffee brand that can be rented for catering or setup at special events.
Menu Recipe Scaling & Food Cost Calculator: Understanding food and beverage costs is critical to operating a successful coffee shop.
About the Author: Brett Lindenberg
