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Coffee shops, like other types of food and beverage establishments, run on an incredibly tight margin. While the food costs for coffee shops tend to be low, labor expenses are often high. As a result, smaller coffee shops often have a profit margin as low as 2.5%. In the COVID-19 era, these margins have shrunk for many coffee shop owners. Between patrons working from home and shutdown orders, the days of customers hanging out, buying multiple drinks, or getting an…

Jump to: What Is Food Cost Percentage? Why Is Food Cost Percentage Important? How Can I Figure Out My Food Cost Percentage? Want to Save More Money? In the best of times, running a restaurant can be a challenge, with tight margins, high turnover,  and a demanding schedule. During a global pandemic, it has become even more difficult. Restaurants have been particularly hard hit by shutdown orders, along with laws that prohibit indoor dining, or limit capacity to 50% or…