Many cafes look at buying coffee in a way that simply doesn’t make sense.
The biggest mistake? Comparing coffee purely on a price-per-kilo basis. This is a terrible metric and here’s why.
More than just specialty coffee beans
It’s not just about taste, quality, consistency and sustainability, although those factors are critical. And yes, every coffee blend has unique characteristics, from solubility to recipe precision, which impact the final cup. We work hard to ensure that our blends, single origin coffee, as well as expedition micro lots are the best and most delicious coffee you will ever taste.
But more importantly, when you partner with a coffee roastery, you’re not just buying specialty beans. You’re investing in a complete support system that may include:
Equipment guidance (including finance and rental solution)
Ongoing support and training
Regular servicing and maintenance
Business coaching and advice
A recognised and aspirational brand
Expert knowledge of coffee and cafe operations
Insights into the latest industry trends and innovations
Additional non-coffee products and services
Reducing all of this to a single dollar-per-kilo figure is madness. A great coffee partnership goes far beyond cost. It directly impacts your ability to serve incredible coffee, run a sustainable business and thrive in an increasingly competitive market.
Better metrics for success
If you want to measure the true value of your coffee program, here are better metrics to focus on:
1. Profitability per cup
The real question isn’t just how much your coffee costs per kilo, but how much you can charge per cup and how much it costs to make. The right coffee can increase your perceived value, allowing you to charge more while enhancing customer experience.
Think you can’t charge more than your competitors? The issue may not be customer willingness but rather the quality and reputation of your coffee, your customer service and the experience you provide. The good news? You can improve all of these.
2. Customer reviews and reputation
Your cafes reputation is built on the quality of the experience you deliver. This includes the coffee itself, the service, the ambiance and how you make customers feel. Focusing on excellence in these areas strengthens your business in the long run, attracts loyal customers and helps you build a strong, positive brand.
Plus, it makes running a cafe more fulfilling. It’s incredibly rewarding for your team to know you’re serving the best coffee in your area and not just competing on price.
3. Overall coffee program profitability
Profitability per cup is important, but the overall profitability of your coffee program matters even more.
First, recognise that volume is not everything. Let’s compare two scenarios:
You make 20 cents profit per cup and sell 1,000 cups per week = $200 profit
You make 50 cents profit per cup and sell 750 cups per week = $375 profit
For more info, read is busier always better?
Selling fewer cups but making more profit per cup can be a better strategy. It also means you need fewer staff, can invest in better training and retention and improve customer service. This creates a positive, sustainable loop. Higher quality, better experience and long-term success.
Of course, other factors like average order size and additional purchases also play a role. But everything from delicious coffee to the right customer experience and pricing strategy needs to work together to maximise sustainable profitability.
Final thoughts
Choosing a coffee roaster is about far more than just price-per-kilo. The right partner will help you create an amazing coffee experience, improve your bottom line and build a cafe that thrives.
So, the next time you’re evaluating your coffee partner, ask yourself: Am I focusing on the right metrics?
