Can I afford that Espresso Machine?
CAN I AFFORD THAT ESPRESSO MACHINE?
So you’re thinking about starting a cafe.
You: I need a coffee machine.
How does it look against my decor?
How big a machine do I need?
How much space do I need?
How will I ensure the best possible quality and consistency?
Espresso machines are expensive, some can cost S$25,000 and up! That’s crazy! Or is it? Who knows?
If those are the questions swirling around in your mind then this article is for you!
Easy coffee mathematics
Let’s assume your name is Heng Sway Keat. You are opening a cafe in the East Coast. The cafe is called An East Coast Plan.
So you will need an east coast plan.
HSK: Hi John.
CS: How many cups a day will AN EAST COAST PLAN be serving?
HSK: 30 cups a day for XX days
CS: Average selling price?
HSK: Five bucks.
CS: OK HSK, it will take 8 months to pay off your $25K coffee machine
HSK: But how?
CS: Because coffee machines are INVESTMENTS, not an expense!
CS: *mic drop*
(For a more in depth explanation, please read the TLDR section below)
There’s a reason why the best cafes invest heavily on quality equipment.
It’s because they see it as great investments!
Not only that, there are a few other BIG reasons to choose a high performance espresso machine.
Size does matter.
A budget setup will not grow with you if more customers show up..
Customers hate long waiting times so the number of customers you have during your busiest timing should determine your equipment size.
Focus on saving time AND money
Look at Turbosteam, our automated milk steamer. It will force your barista to stop frothing milk and start serving your customers and upselling. This also saves tons of milk in the process.
And oh yeah, it cuts training time by half.
More boilers are better
Get a multi-boiler system like the m100 or the slayer LPX. They are the super stable workhorses that operate at the highest performance standards. Top tier espresso machines don’t just work faster, they also have the tech to produce better coffee than budget models.
Your coffee machine is the centerpiece. Make sure it looks the part. Turning heads and drawing your customers in is half the battle won.
Work with experts
At Caffeine Solutions, we first listen to understand. Then we will help you choose the best solution.
Once you come on-board with us, our quality assurance and support team will be with you side by side.
Let us help you keep your customers coming back.
*TOO LONG DIDN’T READ (TLDR)
HOW LONG WILL IT TAKE TO PAY OFF A MACHINE?
If one cup of coffee costs about $1.20 and your average selling price is $5, then your gross profit will be $3.80 per cup.
We take gross profit for several reasons, as everyone might have a slightly different expense profile. Many cafes are doing well with their other non-coffee items. So gross profit can be seen as almost pure net profit.
So let’s just say how many cups will it take you to make $1,000 in gross profit?
1,000 / 3.80 = 263 cups
For a cafe or bakery that can serve 30cups a day or ($114), here is the payback in number of days:
For a $6,000 espresso machine system (Grinder + Espresso Machine)
Payback is $6,000 / $114 = 52 days
For a $10,000 espresso machine system (Grinder + Espresso Machine)
Payback is $10,000 / $114 = 87.7 days
For a $15,000 espresso machine system (Grinder + Espresso Machine)
Payback is $15,000 / $114 = 131.6 days
For a $25,000 espresso machine system (Grinder + Espresso Machine)
Payback is $25,000 / $114 =219 days
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