среда, 21 февраля 2018 г.

kaffee_total

The Average Profits for a Small Cafe

Food and drink quality are vital to any cafe owner's success.

Brand X Pictures/Brand X Pictures/Getty Images

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Starting an independent neighborhood cafe is a popular business idea, but not one for the faint-hearted. Most cafe owners earn marginal profits, at best, during their opening phase. A cafe's survival ultimately hinges on its location, quality of merchandise and how well the owner budgeted his startup costs. If all those factors are working together, total profits at a successful cafe should equal at least 10 to 18 percent of its annual sales.

Base Profits

Impressions are everything in the cafe business, making it vital for owners to understand the hurdles involved in becoming profitable. Average startup costs for new coffeehouses range from $150,000 to $500,000, according to Matt Milletto, a consultant interviewed for a March 2009 "Seattle Times" article. Insufficiently budgeting for these costs can leave a cafe owner unable to respond adequately when things go wrong, With proper management, however, a successful cafe's base profits should equal roughly 10 to 18 percent of its sales, Milletto says.

Coffee Sales

Coffee sales play a big role in boosting a cafe's profits, since the markup on coffee is higher than most food items. An average cup costs from 55 to 69 cents, which most cafes sell for $2.50 to $3.50, according to consultant Tony Eldred's analysis for the Beanzaround website. If the price is $2.50, selling 100 more cups per day would generate an additional $66,000 per year in profits. Based on these figures, Eldred estimates profit margins for cafes and restaurants should equal 25 and 7 percent, respectively.

Location is essential to making a cafe profitable. However, unless the owner opens in an area with plenty of pedestrian traffic, most consumers will hardly know that his cafe exists. If the owner chooses a prime location, such as in a downtown business district, he can expect to gross $500,000 annually during his first and second years, espresso bar consultant Steve Fisenko states in a posting for the INeedacoffee.com website. By the third year, a well-run cafe should be earning $1 million, Fisenko says. (See Reference 2)

Related Issues

Although the odds against success are long, cafe owners can improve their chances by adapting creatively to their situation. Andre Helmstetter and his partners applied this lesson when they could not secure financing for their business, MezzaLuna Bakery and Bistro. Undeterred, the group put $20,000 in savings into a larger space that allowed them to serve more customers, according to "The Seattle Times." By operating on a lower margin, the trio avoided jeopardizing their business's future by taking on a long-term debt.

References (3)

Resources (4)

About the Author

Ralph Heibutzki's articles have appeared in the "All Music Guide," "Goldmine," "Guitar Player" and "Vintage Guitar." He is also the author of "Unfinished Business: The Life & Times Of Danny Gatton," and holds a journalism degree from Michigan State University.

Photo Credits

  • Brand X Pictures/Brand X Pictures/Getty Images

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  • [Coffee Shop] | Equipment Needed to Open a Coffee Shop

    Zucker im Kaffee (Sugar in the coffee)

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    About “Zucker im Kaffee (Sugar in the coffee)”

    This is a freestyle by Eminem on the german TV show “TV total” with Stefan Raab. It aired the week Relapse came out.

    The hook is borrowed by an old German Schlager from Erik Silvester (1969).

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    Record Exports for Coffee Year 2016/17

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    What statistical information should the ICO provide?

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    Increasing demand for convenience led to growth in fresh ground coffee pods. Despite working fewer hours than before, Danes lead an increasingly busy and mobile lifestyle; a 2015 survey by Danish newspaper Berlingske found that 42% of Danes felt that they “often do not have enough time”. Because of this the demand for products with a high convenience factor steadily increased and drove fresh ground coffee pods, which saw volume growth of 13% in 2016.

    COMPETITIVE LANDSCAPE

    Merrild Kaffe remained the clear leader with a 22% retail value share in 2016. Merrild Kaffe was available in Denmark since 1964 and enjoys a high level of brand recognition and consumer loyalty. The company is present in several categories including fresh coffee beans and instant coffee, but its main focus remains fresh ground coffee. Merrild Kaffe held a 27% value share of this category in 2016.

    Fresh ground coffee pods will remain the fastest growing category over the forecast period with a retail volume CAGR of 10% to reach 1,267 tonnes in 2021. The growing trend towards back to basic premium quality products is expected to lead to growth in fresh coffee beans, which will post a retail volume CAGR of 4% to reach 868 tonnes in 2021.

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    Overview

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    Discover the latest market trends and uncover sources of future market growth for the Coffee industry in Denmark with research from Euromonitor's team of in-country analysts.

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    If you're in the Coffee industry in Denmark, our research will save you time and money while empowering you to make informed, profitable decisions.

    The Coffee in Denmark market research report includes:

    • Analysis of key supply-side and demand trends
    • Detailed segmentation of international and local products
    • Historic volumes and values, company and brand market shares
    • Five year forecasts of market trends and market growth
    • Robust and transparent market research methodology, conducted in-country

    Our market research reports answer questions such as:

    • What is the market size of Coffee in Denmark?
    • What are the major brands in Denmark?
    • How significant is vending in coffee distribution?
    • How does the increasing number of speciality coffee shops impact retail sales of coffee?
    • How are coffee pods performing in Denmark?

    • Gain competitive intelligence about market leaders
    • Track key industry trends, opportunities and threats
    • Inform your marketing, brand, strategy and market development, sales and supply functions

    This industry report originates from Passport, our Hot Drinks market research database.

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    Table of Contents

    Coffee in Denmark - Category analysis

    TRENDS

    COMPETITIVE LANDSCAPE

    CATEGORY DATA

    Table 2 Retail Sales of Coffee by Category: Value 2011-2016

    Table 3 Retail Sales of Coffee by Category: % Volume Growth 2011-2016

    Table 4 Retail Sales of Coffee by Category: % Value Growth 2011-2016

    Table 5 Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2011-2016

    Table 6 Retail Sales of Fresh Ground Coffee by Standard vs Pods: % Volume 2011-2016

    Table 7 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume 2011-2016

    Table 8 Retail Sales of Instant Coffee by Standard vs Pods: % Volume 2011-2016

    Table 9 Retail Sales of Instant Coffee Mixes by Type: % Volume 2011-2016

    Table 10 NBO Company Shares of Coffee: % Retail Value 2012-2016

    Table 11 LBN Brand Shares of Coffee: % Retail Value 2013-2016

    Table 12 Forecast Retail Sales of Coffee by Category: Volume 2016-2021

    Table 13 Forecast Retail Sales of Coffee by Category: Value 2016-2021

    Table 14 Forecast Retail Sales of Coffee by Category: % Volume Growth 2016-2021

    Table 15 Forecast Retail Sales of Coffee by Category: % Value Growth 2016-2021

    Table 16 Forecast Retail Sales of Fresh Coffee by Regular vs Decaffeinated: % Volume 2016-2021

    Table 17 Forecast Retail Sales of Fresh Ground Coffee by Standard vs Pods: % Volume 2016-2021

    Table 18 Forecast Retail Sales of Instant Coffee by Standard vs Pods: % Volume 2016-2021

    Coffee in Denmark - Company Profiles

    BKI Foods A/S in Hot Drinks (Denmark)

    STRATEGIC DIRECTION

    COMPETITIVE POSITIONING

    Peter Larsen Kaffe A/S in Hot Drinks (Denmark)

    STRATEGIC DIRECTION

    COMPETITIVE POSITIONING

    Summary 2 BKI Foods A/S: Operational Indicators

    Summary 3 BKI Foods A/S: Competitive Position 2016

    Summary 4 Peter Larsen Kaffe A/S: Key Facts

    Summary 5 Peter Larsen Kaffe A/S: Operational Indicators

    Summary 6 Peter Larsen Kaffe: Competitive Position 2016

    Hot Drinks in Denmark - Industry Overview

    EXECUTIVE SUMMARY

    Standard fresh ground coffee declines as fresh ground coffee pods continues to thrive
    Health and wellness trend drives demand for tea
    Merrild Kaffe A/S remains the leading player in Danish hot drinks
    Quality and convenience drive new product development
    Hot drinks volume sales expected to decrease

    KEY TRENDS AND DEVELOPMENTS

    Standard fresh ground coffee loses ground
    Sales of tea boosted by health and wellness trend in Denmark
    Out-of-home trend shapes demand for coffee

    MARKET DATA

    Table 20 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2011-2016

    Table 21 Retail Sales of Hot Drinks by Category: Volume 2011-2016

    Table 22 Retail Sales of Hot Drinks by Category: Value 2011-2016

    Table 23 Retail Sales of Hot Drinks by Category: % Volume Growth 2011-2016

    Table 24 Retail Sales of Hot Drinks by Category: % Value Growth 2011-2016

    Table 25 Foodservice Sales of Hot Drinks by Category: Volume 2011-2016

    Table 26 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2011-2016

    Table 27 Total Sales of Hot Drinks by Category: Total Volume 2011-2016

    Table 28 Total Sales of Hot Drinks by Category: % Total Volume Growth 2011-2016

    Table 29 NBO Company Shares of Hot Drinks: % Retail Value 2012-2016

    Table 30 LBN Brand Shares of Hot Drinks: % Retail Value 2013-2016

    Table 31 Penetration of Private Label in Hot Drinks by Category: % Retail Value 2011-2016

    Table 32 Retail Distribution of Hot Drinks by Format: % Volume 2011-2016

    Table 33 Retail Distribution of Hot Drinks by Format and Category: % Volume 2016

    Table 34 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2016-2021

    Table 35 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2016-2021

    Table 36 Forecast Retail Sales of Hot Drinks by Category: Volume 2016-2021

    Table 37 Forecast Retail Sales of Hot Drinks by Category: Value 2016-2021

    Table 38 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2016-2021

    Table 39 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2016-2021

    Table 40 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2016-2021

    Table 41 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2016-2021

    Table 42 Forecast Total Sales of Hot Drinks by Category: Total Volume 2016-2021

    Table 43 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2016-2021

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    Journal of Nutrition

    Ferric reducing antioxidant power (FRAP), total radical-trapping antioxidant parameter (TRAP) and Trolox equivalent antioxidant capacity (TEAC) of alcoholic beverages, teas and coffees 1

    1 Values are means, n = 2.

    2 NF, not found; ND, not detectable.

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    Kaffee-magenfreundlich.de is tracked by us since May, 2016. Over the time it has been ranked as high as 3 921 899 in the world, while most of its traffic comes from Germany, where it reached as high as 229 349 position. It was owned by several entities, from Werner Kaltofen of Neue Medien Muennich GmbH to Lars Leuchter of AIXPRO GmbH, it was hosted by Neue Medien Muennich GmbH and AIXPRO GmbH.

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    Kaffee-magenfreundlich.de gets 100% of its traffic from Germany where it is ranked #229349.

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