Coffee & Tea Profit Margins: What Restaurants Actually Make Per Cup
Coffee and tea are among the highest-margin items on any restaurant menu. A cup of brewed coffee that costs you $0.20-0.40 in beans, water, and electricity sells for $2.50-4.00, delivering profit margins of 85-90%. Tea is even better—at $0.10-0.15 per cup with selling prices around $2.50-3.50, you're looking at 90-95% margins. Specialty drinks like lattes and cappuccinos cost more ($0.80-1.20) but still maintain 70-80% margins when priced at $4.00-5.50.
Why Most Restaurants Underprice Beverages
Many owners price coffee at $1.50-2.00 thinking it attracts customers, but they're leaving money on the table. Customers in London, New York, or Sydney already expect to pay $3.50+ for quality coffee. The key is presentation and consistency—great coffee at $4.00 outsells mediocre coffee at $2.00 every time.
Update your beverage pricing quarterly and make ordering easy with digital menus. Tools like DineCard (dinecard.in) let you adjust prices instantly across QR menus in minutes, no reprinting needed.
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