With the revitalisation of Newcastle in recent years, we’ve seen a growing number of cafés opening their doors around town and our suburbs. Novocastrians have embraced the crema and aromas; some even say we’re coffee snobs. But what makes one café buzz long-term while another falls flat?
Savvy owners know more than beans, décor, and the vibe. They also actively monitor their key-performance indicators.
Stock control and pricing are key to gross profit margins. Having reliable suppliers, projecting capacity, and minimising wastage are all part of the balance.
Staffing is another café KPI – when customers expect fast and friendly service, but staff costs can typically be over 1/3rd of turnover, staffing accounts for a large part of a café’s margin. Trading hours, rostering, staff training and turnover are a constant juggle for a café manager.
Location, location, location – not only applies to Newcastle’s residential property market, but also to its café scene. A café can live or die by its location, often being dependant on foot traffic and loyal customers. But how much do you pay for it? The lease of premises is a major factor throughout a café’s life. Consideration should be given to rent per square metre, lease periods and renewal clauses.
This is just the start. There are many moving parts and plenty to juggle in running not only cafe's, but in all small businesses. Maxim is passionate about analysis for business, contact us on 4925 1000 to review your business’ KPIs.
(the coffee’s on us) :-)
Written by Client Manager, Courtney Dolan