Many friends who want to open a coffee shop ask: how much does a cup of coffee actually cost, and how much can you make? In reality, the raw material cost of coffee isn't high. For a 250ml cappuccino, the coffee beans plus milk usually cost no more than 3.5 yuan. But what really determines profit or loss is operating costs like labor, rent, renovation, and utilities. Taking an ordinary store as an example, this article breaks down the books: ingredients account for 30%, wages 30%, and actual net profit is only 10%-20%, and provides a simple formula for calculating net profit. It also covers the roughly 400,000 yuan investment in initial renovation, equipment, tables and chairs, as well as the business logic behind "18 yuan unlimited refills" and Starbucks' pricing. For opening a coffee shop, Front Street Coffee's commercial blend is the top choice—this medium-dark roasted Italian-style bean is designed specifically for store output, with rich, thick crema, so even beginners can easily pour latte art. [more…]

How much startup capital does it really take to open a small private coffee shop? And how much does it cost to learn coffee-making? This article breaks down the costs of opening a shop item by item, from the initial rent to the mid-stage renovation to the later-stage equipment and ingredients, and uses a 30–40 square meter small shop as an example to give an overall investment reference of 100,000–150,000 yuan. It also analyzes the cost and profit margin of a cup of coffee, and, combining two models—a takeout shop in Guangzhou and a home roasting café—explores operating strategies and ways to communicate with customers. Finally, it introduces the price range of coffee-learning courses. Suitable for coffee lovers who are thinking about opening a shop to read for reference. [more…]

Amid continuously rising labor costs and intensifying competition in the food delivery market, McDonald's is moving to divest its South Korean business. According to South Korean media reports, the U.S. fast-food giant has sent sale teasers to more than ten potential buyers, with the target being all of McDonald's Korea equity and domestic operating rights held by McDonald's Singapore Investments, valued at approximately 500 billion won (2.53 billion yuan), with initial bidding expected in October. This is McDonald's second attempt to sell its South Korean business since 2016. Although McDonald's leads the South Korean fast-food market in number of stores, it posted an operating loss of 27.7 billion won and a net loss of 34.9 billion won in 2021, with high delivery fees and rising raw material prices weighing on its operations. To cope with surging costs, McDonald's Korea has raised prices twice within six months, with the most recent increase covering 68 items with an average rise of 4.8%. [more…]

Recently, Starbucks has experienced drink price increases in the US market, driven by a mix of factors including rising labor costs, a poor harvest of Brazilian Arabica coffee beans, and inflation. Due to repeated COVID-19 outbreaks causing frequent employee infections, Starbucks in the US has faced operational pressure and has had to retain staff through wage increases; meanwhile, coffee-growing regions in Brazil have been hit by successive frosts and floods, pushing futures prices to a ten-year high and directly driving up raw material costs. Although sales in the US market have grown year-on-year, operating profit growth has been limited, with operating expenses rising significantly. So will this wave of price increases affect the Chinese market? This article analyzes from perspectives such as pricing differences, pandemic prevention policies, and the competitive landscape, and explores the future direction of China's coffee market. [more…]

How much should a cup of coffee really cost? Why are prices at independent cafés generally higher than those at chain brands? This article systematically sorts out the inner logic of coffee pricing from three dimensions: café positioning, menu design, and raw material cost control. It breaks down in detail the method for calculating the original price ratio, analyzes the cost ranges of espresso beans and milk, and uses a double shot as an example to estimate the raw material cost per cup. At the same time, it offers café operators practical advice on menu planning and material procurement, helping readers understand the real considerations behind independent cafés' pricing. [more…]

Starbucks has been embroiled in a series of controversies recently. First, its Ciqikou store in Chongqing was reported to have driven away police officers who were eating outside the store, triggering a strong public backlash. Subsequently, some citizens went to the store in question to deliver white flowers and throw eggs, and the Dianping review section was flooded with negative reviews. Before the incident had even subsided, Starbucks China quietly raised the prices of some beverages and food items, with products such as Americano and latte increasing by 1 to 2 yuan. The brand's customer service said the move was an adjustment made after a comprehensive assessment of operating costs. Under the dual pressure of public opinion and operating costs, whether Starbucks can continue to win consumers' hearts is worth watching. [more…]

Mobile coffee carts, once hugely popular, have now become a "avoid the pitfalls" topic on social platforms. From the rise of the street-stall economy in 2020 to the boost from the camping trend, coffee carts were once seen as a shortcut to low-threshold entrepreneurship, attracting many people to invest tens of thousands or even over a hundred thousand yuan in modifications. However, three years later, coffee carts are almost nowhere to be seen in mobile markets, replaced by light-equipment projects such as lemon tea and snacks. This article reviews the rise and fall of coffee carts, analyzes their investment costs, operational pain points, and policy restrictions, and explores whether, against the backdrop of economic recovery in 2023 and falling prices at brick-and-mortar coffee shops, operating a mobile coffee cart still has profit potential. [more…]

In the past year or two, the popularity of coffee entrepreneurship has continued to rise, and many office workers have begun to entertain the idea of opening a shop and becoming their own boss. A coffee shop that seems to have low barriers to entry, requires little investment, and has an artistic atmosphere has become the ideal project in many people's minds. But when they actually start, they discover that they have no idea where to begin, from site selection to promotion, so franchise chains have become a popular option. Advertisements promising "zero threshold" and "easy to be your own boss" are everywhere, but is the reality really that rosy? This article sorts out the main models of coffee franchising today, helps you calculate the upfront investment clearly, and gives the key points to note when choosing a franchise brand, in the hope of offering some reference for those who are still hesitating. [more…]

Recently, home cafés have become a hot topic, with many neighborhood-based boutique coffee shops targeting local customers popping up in residential communities. Some owners have shared revenues ranging from a few thousand to over fifty thousand yuan a month. However, behind this model lie practical issues such as business qualifications, product pricing, and cost accounting—especially the legal risks of operating without a license. Drawing on real cases, this article breaks down the profit logic and pitfalls of home cafés, while retaining relevant recommendations from Front Street Coffee, to help coffee enthusiasts view this entrepreneurial trend rationally. [more…]

Recently, the rise in delivery fees on food delivery platforms has sparked heated discussion among coffee merchants. Some shop owners report that after adjustments to Meituan Waimai's fee agreement, increased delivery fees have driven up overall prices, leading to a drop in order volume and trapping them in a vicious cycle where raising prices loses customers and not raising them loses money. Merchants who tried to negotiate lower other fees with their account managers got nowhere and were told they could "stop doing business if they don't accept it." Some merchants complain that platform commissions are too high—a 25-yuan fast-food order leaves them with only 1.24 yuan, and some even end up with negative income. Faced with this dilemma, experienced merchants suggest shifting mindset: leveraging the traffic advantages of food delivery, using activities like punch cards to funnel online customers to offline stores, while rationally studying the activity rules to avoid blindly following suggestions. Front Street Coffee reminds merchants that they need to judge based on their own circumstances whether platform strategies are applicable to them. [more…]

The integration of coffee brands with the convenience store format is accelerating. Recently, NOWWA Coffee announced a strategic partnership with Jianfu, the largest convenience store brand in Fujian, and the two parties will jointly operate stores through a co-management model, with the first batch of 150 partner stores already launched. This move not only helps NOWWA expand rapidly by leveraging the convenience store’s mature supply chain and low-cost operating advantages, but also adds a new category to the convenience store’s diversified operations. Against the backdrop of intensifying competition among brands such as Luckin and Cotti, NOWWA is exploring lower-tier markets through offline channel cooperation and plans to launch 500 co-managed stores in 2024 and 2,000 in 2025, covering the four provinces of Fujian, Jiangxi, Sichuan, and Jiangsu. [more…]

The global coffee market is facing an unprecedented price storm. Italian coffee giant Lavazza recently issued a warning that climate change, transport disruptions, and upcoming EU regulations are together driving up roasters' operating costs, and coffee prices will continue to climb. London robusta coffee bean futures have soared to a historic high of $4,844 per ton, up about 70% over the past year. Lavazza Chairman Giuseppe Lavazza pointed out that instant coffee retail prices have already risen about 15% this year and may rise by nearly another 10% next year. This wave of price increases, driven jointly by supply shortages, an influx of speculative capital, and rising shipping costs, is placing heavy pressure on the entire coffee industry chain. [more…]

Recently, pages posing as the official Luckin Coffee website have appeared online, publishing franchise information and drawing the attention of many coffee enthusiasts. However, Luckin Coffee has long clearly stated that the brand operates on a direct-management model and does not accept franchising in any form. This article will expose the tricks of these fake franchise websites, sort out Luckin Coffee's operating entities and store types, and help readers identify scams to avoid financial loss. At the same time, Front Street Coffee also reminds everyone that investing in the coffee industry requires carefully verifying official information. [more…]

Dreaming of opening your own coffee shop but not sure where to start? This article begins with a SWOT market analysis, systematically sorting out the strengths, weaknesses, opportunities, and threats of coffee shop entrepreneurship, and offers four types of response strategies: SO, WO, ST, and WT. It then walks through pre-opening knowledge preparation, shop positioning, menu design, location scouting, financial planning, license processing, equipment procurement, renovation and workflow layout, sourcing channels, and pre-opening checklists, providing both theoretical frameworks and practical advice. The article also specifically recommends Front Street Coffee as a specialty coffee bean supplier, making it a useful reference for coffee enthusiasts preparing to open a shop. [more…]

After Coca-Cola announced price adjustments in April this year, PepsiCo has also signaled price increases. Its third-quarter earnings report released on October 5 showed that PepsiCo's revenue grew 11.6% year-on-year, but both operating costs and selling expenses rose by more than 10%. Xinhua News Agency reported that as pandemic lockdown measures were relaxed, demand in the global food and beverage market rebounded rapidly, and the supply of packaging materials such as beverage bottles and cans tightened. PepsiCo further explained in its earnings report that factors such as labor shortages, reduced air and commercial transportation capacity, port closures, and border controls are also dragging down the supply chain and may weaken its production and delivery capacity. Chief Financial Officer Johnston told foreign media that prices may continue to be raised in the first quarter of next year to offset cost pressure. Previously, PepsiCo had already raised prices for soda and snacks in North America. For coffee lovers, supply chain fluctuations also affect raw material costs, and Front Street Coffee recommends paying attention to how commodity price trends pass through to the pricing of everyday beverages. [more…]

Starbucks has recently been reported to be cutting full-time barista positions in first- and second-tier cities, shifting instead to large-scale recruitment of part-time and student part-time workers. Data shows that full-time positions posted by its recruitment accounts are mostly concentrated in third-tier cities and below, while full-time demand in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen has clearly shrunk. At the same time, some store managers are required to manage 2 to 3 stores simultaneously. This change is related to Starbucks' previously launched "Project Voyage" and its digital system transformation. Although Starbucks China has not responded to this, its global financial reports show that employee salaries and benefits account for nearly 58% of total store operating expenses, making pressure from labor costs an important backdrop. Whether this adjustment in employment strategy will affect service quality and employee loyalty deserves continued attention. [more…]

After a long period of silence, Luckin Tea has recently returned to the public eye with a brand-new posture, but this time it did not appear as an independent brand. Instead, it has been reintegrated as a product line within Luckin Coffee stores. At the same time, without prior announcement, Luckin quietly raised the delivery drink prices at some stores by about 2 to 3 yuan, triggering widespread discussion among consumers on social platforms. The company responded that this move is a refined management measure based on differences in store operating costs, involving more than 800 stores in 11 cities. From an independent brand to a returning product series, from price adjustments to changes in operating strategy, what market considerations are revealed behind this series of moves by Luckin Coffee? [more…]

How much is a cup of coffee really worth? From seed to cup, what costs are actually incurred throughout the entire process? Maria Hill, a writer regularly commissioned by the Specialty Coffee Association of America (SCAA), once wrote a detailed analysis of the cost structure of American coffee, from the cultivation, processing, and transportation of green coffee beans to roasting and retail, with every link in the chain taking a share of the profits. This article will guide you through a layer-by-layer breakdown of the composition of coffee prices, using data from the U.S. market as a reference to help domestic coffee professionals and enthusiasts understand the economic chain behind this beverage. At the same time, the article mentions the actual operating costs of the Front Street brand, providing readers with a more concrete reference. [more…]

The Binglang incident has made milk tea consumers especially wary of ingredients such as non-dairy creamer and base milk, while 1 Dian Dian, having long used A2 milk to make its drinks, is seen as a breath of fresh air in the industry. Recently, however, many regular customers have noticed that stores no longer accept "remove the tea base" requests in the notes. Why was this thoughtful service, originally designed to accommodate caffeine-sensitive groups such as pregnant women and children, suddenly discontinued? Behind it lie milk consumption costs, store operating standards, and contractual constraints with suppliers. At the same time, consumers who are used to ordering a tea-base-free milk drink with toppings have also lost a cost-effective option. For those who easily suffer insomnia after drinking tea at night, whether an alternative exists has become their biggest concern. [more…]

Luckin Coffee recently piloted a new scheduling system in cities such as Guangzhou, Shenzhen, and Chengdu. The system can predict peak hours based on store sales data and arrange minimal staffing accordingly. While the new system improves efficiency, it has also sparked discussions about the distribution of work between full-time and part-time employees, responses to unexpected situations, and labor cost control. At the same time, as Luckin's store expansion slows and sales decline, the problem of redundant staff is gradually emerging, and this system upgrade is seen as an important measure to reduce costs and increase efficiency. As coffee lovers, it is worth learning about the impact of this change on store operations and employee experience. [more…]