This chart provides a detailed breakdown of the costs involved in a £2.50 cup of coffee, revealing the complex economics behind a seemingly simple beverage. The largest portion of the cost is attributed to shop rent, which accounts for £0.88, followed by staff wages at £0.63. These two components alone make up over half of the total cost, highlighting the significant overheads faced by coffee shops. Tax also plays a substantial role, contributing £0.38 to the overall price. Interestingly, the actual coffee itself, along with milk, only accounts for £0.20, underscoring how little of the cost is related to the raw ingredients. Profit margins are relatively modest at £0.25, suggesting that coffee shops rely on high sales volumes to sustain their business. The supply chain costs, including roaster margins, exporter fees, transport, processing, and grower payments, collectively add up to just £0.18, illustrating the efficiency and low cost of the global coffee supply chain. This breakdown not only sheds light on the various factors influencing coffee pricing but also emphasizes the importance of operational costs in the retail coffee industry. Such insights can be crucial for both consumers and business owners in understanding the true cost dynamics of their daily cup of coffee.
