What Are You Really Paying for in the Cost of One Cup of Coffee?

idavisonbkk
Apr 3
2 min read

What Are You Really Paying for in the Cost of One Cup of Coffee?

Many people think that if a cup of coffee sells for 60–80 THB, the cost must be very low…

Some assume that “coffee is just coffee powder and water.”

But in reality, the true cost of one cup of coffee is much more complex than that.

If a café owner does not understand the real cost structure, the profit they think they are making may disappear without them even realizing it.

This article breaks down the cost clearly so you can see what is actually hidden behind one cup of coffee.

1. Raw Material Cost

This is the part most people can easily see.

Example menu : 1 Iced Latte

✔ Coffee grounds: 18–20 grams

✔ Fresh milk: 120–150 ml

✔ Syrup

✔ Ice

Even though it may look minimal, when calculated carefully, raw materials usually account for about 25–40% of the selling price, depending on the recipe and ingredient quality.

If the recipe is not controlled properly—adding too much milk or syrup—profits can disappear immediately.

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2. Labor Cost

Every cup of coffee has labor behind it.

Time spent grinding coffee
Time spent brewing
Time spent cleaning equipment
Time spent taking orders

If a café works slowly, it might serve only 20 cups per hour.

But with an efficient system, it could serve 40–60 cups per hour.

Speed = higher revenue without increasing prices.

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3. Electricity, Water, and Equipment Depreciation

Coffee machines do not run for free.

Costs include:

✔ Electricity for the espresso machine boiler

✔ Electricity for the coffee grinder

✔ Blenders

✔ Ice machines

This does not even include equipment depreciation, which means setting aside money for repairs and spare parts replacement.

Many cafés that ignore these costs mistakenly believe they are making good profits, when in reality they are slowly consuming their capital.

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4. Rent and Hidden Expenses

Many cafés calculate only ingredient costs but forget fixed costs such as:

Shop rent
Water supply
Marketing expenses
POS system fees
Packaging

For example:Cup + lid + straw + carry bag may cost 3–6 THB per cup.

If you sell 200 cups per day, this cost becomes significant.

Successful cafés are not the ones that sell at the highest prices.

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They are the cafés that:

✔ Know the real cost of every menu item

✔ Calculate profit as a percentage, not by feeling

✔ Maintain consistent recipes and minimize waste

✔ Manage inventory efficiently

Café owners who understand their numbers can control their business much better and won’t have to worry about whether there will be money left at the end of the month.

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