What Is the Average Profit for a Cafe & Bakery?

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Knowing the profit that you can expect from opening a bakery and cafe can be a factor in deciding whether you should pursue the enterprise. With the many expenses required to start the business and the monthly costs to run it, computing the amount of income generated can be a confusing, if not inaccurate, calculation. Considering individual factors can help you estimate your profit.

Services

  • A bakery and cafe specializes in selling freshly baked goods, coffee, sandwiches and simple hot meals, such as egg muffins. Specializing in a niche market such as roasting your own coffee beans or selling gluten-free products helps in publicity for marketing and can set you apart from the standard competition. You can offer quick service or have free Internet access available for sit-down customers who stay to sip their coffee and enjoy a pastry.

Revenue

  • Revenue is based on the total sales of your establishment, including the amount of food and bakery goods sold. Depending on how many people your cafe can seat or service at the counter, you will need to sell a certain amount of bakery goods and cups of coffee just to break even. Modern Baking's 2011 survey shows that personalized cakes, cookies, wedding cakes, expensive deserts and breads are some of the most popular selling items in a bakery. Marking up your products 100 percent should give you the profit you need to succeed, if you market your bakery and cafe so that your volume of customers is steady.

Expenses

  • Besides the ingredients for making the food in your bakery and cafe, your rent and employee salaries can be a big expense. Also, your cafe needs large appliances, such as refrigerators and coffee and specialized drink equipment. If your cost of materials increases, you may not be able to raise your prices and risk losing your customers or out-pricing the competitive market in your area. Working in the bakery without drawing a wage is a good way to reduce the cost of employees and increase your profit, but your net income might not be worth the time that you spend in the store.

Profit

  • Subtracting your expenses, including the costs to make your products, from the sales revenue gives you the profit, or net income, of your store. Although a bakery and cafe can have gross sales in the hundreds of thousands of dollars, Forbes.com reported in 2008 that financial statements of bakeries showed an average annual loss of 0.9 percent. If you are part of a larger chain of bakery-cafe stores, you have a better opportunity to make an annual profit than if you are a small single store with no popular brand name or nationwide appeal.

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