Cost of Goods: 32%
The average COG’s for a London café is between 20 - 25%
We do not want to compromise our mission statement of supporting coffee-growing communities in Colombia and paying a negotiated price for our green coffee, disconnected from the international market.
Specialty coffee has also become steadily more expensive as production and input costs have risen for farmers. Just this month we will be paying between 5 - 8% more per KG of green coffee compared with March.
Food inflation and inflation on “cost of goods” (all physical goods that go into a cup of coffee) has risen steadily since late 2021, peaking at 17.5% in March 2023. Rate of inflation is going down, but costs are still
going up. Inflation still sits at 4.7% as at March 2024.
Salaries: 40%
Some of the coffees we sell and the service we expect our baristas to provide is more time-intensive - this enriches the customer experience but means we spend more money on wages as a percentage of revenue.
All retail bag production, roasting and marketing is done “in house” so we can have full control and provide transparency about our London operation to customers and stakeholders.
Rent & Business Rates: 11%
Whilst relatively small compared with the industry average, still going up as short-term leases are renegotiated over the coming few years.
Operational Costs: 15%
Includes accountancy fees, administrative costs, software, licensing, business rates.
Inter-company loan to sister company "Cafeina Ética" in Colombia.
Energy and utilities inflation is the other largest factor driving up costs for small businesses besides food inflation. All of these have gone up as businesses providing these services have felt the squeeze of the
economic downturn, and passed their increasing costs onto their clients (us).
Profit: 2%
Whilst we are making profit, we are not currently in a position to make any considerable investments in wage development or equipment to make the staff or customer experience better in the future.
We want to build a team of employees who feel empowered and financially supported in their work, to provide a service to customers who will come away feeling fulfilled.
In order to do this and weather any incoming inflation or instability, we need to increase our prices. We've done our best to keep these changes low, with most varieties going up just 50 pence each. Check our new prices by heading to our shop page.