The True Profit

by Peter Kelsch

The illusion also exists that making more profit per drink is the most important factor. This is only true if you develop enough sales volume for that item. You may make $3 on every Supreme Deluxe Low Cost Smoothie (yes, we’re making this brand up!) that you sell. However, because the quality isn’t there, you’ll only sell 10 smoothies per day, resulting in $30 of profit. If you upgrade to Botanica Smoothies and make $2.50 per smoothie, you may sell 30 per day, resulting in $75 of profit.

Remember, profit margin is relative to volume, and you gain volume when you sell premium drinks customers can not buy anywhere else. While we encourage you to keep your menu simple, don’t be afraid to offer new items or run seasonal specials. Look over your product lines and consider adding special or select items within a category. We offer free samples of products and would be happy to send you some to compare with your current product lines or just to add something new and fresh to your menu.

Overall, be honest with yourself and make sure that you’re offering the best drinks that you can. When the next fast food chain begins to offer specialty coffee drinks, it will be the independents who are continuously evaluating quality, consistency and costs that are sure to survive the storm and prosper when the economy picks up.