Costs2026-05-02

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 betterat $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 consistencygreat coffee at $4.00 outsells mediocre coffee at $2.00 every time.

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