Rent and staff are two of the biggest challenges cafés face when it comes to turning a profit, and according to Barista Technology Australia CEO Brett Bolwell, are the main reasons they fail.
“A lot of café owners think they need to sell ‘x’ number of coffees per day to make a profit, but they don’t understand the true cost of producing a coffee,” Brett says.
“There are a lot of cafés out there, but how many actually succeed? A lot of cafés shut down after only a few years and the fundamental reason why is that rent and labour costs are expensive. It’s not just wages, it’s staff turnover – training new staff of hiring high-end experienced baristas – which can impact your profitability.”
