This coffee shop owner explains why they charge $5 for a Latte

Funny he doesn't understand what profit is. As if rent/insurance/fees aren't a part of the cost.

Shit costs .85 tops

Terrible unit economics.

If your arguing that these small businesses are making huge margins you are missing something Look at the costs of raw goods Its simply a problem from the source in most western countries Its a devaluation of the dollar

I made it really easy for them, I just make my own coffee at home. That’s a thought 💭

Syrup is 44cents? I assume simple syrup or vanilla simple syrup. That’s like $3-4 a bottle if you buy retail. I can only hope this is just some s-tier rage bate.

Bruh, drinks are 80% profit margin. If your raw product cost is $2 and you’re selling at $5. You will need to sell 2000 cups just to break even at rent. 2000/30 = 60 cups That’s not even including your utilities, taxes, cc fees and your salary/ manager’s salary. Something not adding up

The math is all cap. So he’s making roughly 115% profit per cup. Based on his math, he’s actually overcharging.

That’s cheap. I pay $4 for a medium black coffee in my city.

The price is determined by the free market not costs. The cost may influence price. Why does LVMH bags cost so much? People are willing to meet the high price.