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There are some pretty cool reasons to get into the coffee business; creating a welcoming environment for relationships to prosper, driving ideas and creativity in the community through pick-me-ups and quiet spaces, the list goes on. Whatever got you into the coffee business, or has you thinking about doing so, you’ll still have to consider the coinage. We’re here to cover what the typical salary of a coffee shop owner is, and all the elements that go into it, so you might want to stick around.
According to ZipRecruiter, the national average salary of a coffee shop owner is $44,347. While we can come to an average through data collection and interpretation, this really isn’t a one-size-fits-all answer, as there’s so much that goes into, and comes out of, owning a coffee shop.
There’s a reason that ZipRecruiter also includes the data that some owners might take home as little as $26,000, or as much as $90,000, or really, quite a few reasons. When considering this information to apply to your business, you’ll want to focus on revenue and profitability, outstanding investments, and other valuable factors like equity.
In working with hundreds of professionals in the coffee business over the last 30 years, we’ve observed that an average coffee shop will see between $500K and $1M in yearly revenue. That said, your individual goals should be based on a number of different things, including the size of your space, its location, and if food is part of your offerings.
As with any business, there is an upfront investment to get a coffee shop going. You’ll be acquiring a physical space, building out a menu, ordering equipment and supplies, hiring a team, the list goes beyond average coffee shop revenue. An owner's salary will depend a lot on the initial investment that they made, and any outstanding balances on business loans.
As we’ve been hinting at, a very key detail to keep in mind about your salary is that you are also the business owner. So long as operations support it, your salary can be as low or as high as you want. If you’re not too sure where this number should be, we’re keen to help.
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No matter how you pay yourself, your coffee shop means so much more. When you consider all the time, effort, and passion you put in, you’re getting more out of it than a paycheck. You're building a brand that could be a cornerstone of the community for decades to come. Or perhaps, you're building an asset that you could sell for a modest profit, potentially exceeding the salaries you’ve been paying yourself.
Do your goals include expanding to multiple shops? Maybe even across multiple cities or states? Taking on a new location will require strategic planning, investment, and time, and though your friends at Dilworth can be there every step of the way, you’ll still want to consider your salary and other expenses leading up.
After considering all the factors that play into a coffee shop owner’s salary, you’re probably realizing that you’d like to dream a little bigger as far as revenue and expansion, so what now? A great place to start is by adding the latest revenue-driving drinks to your menu.
The more old-school of us here might be shaking in our boots, but energy drinks are a huge market, and there are ways to incorporate them into your menu that will still feel authentic to your brand. Consider recipes like a ruby tea iced energy, or a berry blue energy smoothie.
Not everyone who walks into your store is looking for a caffeine buzz, and that's where refreshers come in. These simple drinks offer hydration and deliciousness that might keep a customer’s day going just as much as a cup of coffee would. Don’t give up on summer just yet, consider adding a Smartfruit refresher to your menu.
Revenue, initial investment, operating costs, and personal business goals are all things that impact the salary of a coffee shop owner. While the national average is a helpful benchmark, you’ll always want to consider the things that make your shop unique. Thankfully, your helpful friends at Dilworth are here to make sure that all your ducks are in a row.
We’re coffee business consultants with over 30 years of experience; reach out today.
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