Is cold brew coffee profitable?

Answered by Tom Adger

Cold brew coffee has become increasingly popular in recent years, and for good reason. It offers a unique flavor profile and a refreshing alternative to traditional hot brewed coffee. But beyond its appeal to customers, is cold brew coffee actually profitable for café owners? Let’s take a closer look.

One of the main advantages of offering cold brew coffee is its relatively low cost to produce. Cold brew requires a higher coffee-to-water ratio compared to hot brewed coffee, which means you can make a larger quantity of cold brew with the same amount of coffee beans. This can help reduce your overall coffee costs and increase your profit margin.

Additionally, cold brew coffee has a longer shelf life compared to hot brewed coffee. It can be stored in the refrigerator for up to two weeks without losing its flavor or quality. This means you can prepare larger batches of cold brew in advance, minimizing waste and ensuring that you always have it available for your customers. By reducing wastage, you can further optimize your profits.

Another factor to consider is the potential for upselling. Cold brew coffee is often seen as a premium beverage, and customers are willing to pay more for it compared to regular hot coffee. By offering cold brew on your menu, you have the opportunity to increase your average transaction value, boosting your overall profitability.

Furthermore, cold brew coffee can be a great avenue for creativity and differentiation. You can experiment with different flavors and infusions to create signature cold brew drinks that set your café apart from the competition. This can attract a loyal customer base who specifically seek out your unique offerings.

In terms of equipment and preparation, cold brew coffee requires a different brewing method compared to hot coffee. While this may require some investment in specialized equipment, such as cold brew towers or immersion brewers, these costs can be offset by the increased profitability of selling cold brew.

It’s worth noting that the profitability of cold brew coffee will also depend on your pricing strategy and the local market conditions. Conducting market research and analyzing your costs and profit margins will help you determine the optimal pricing for your cold brew offerings.

Cold brew coffee has the potential to be highly profitable for café owners. Its low production costs, longer shelf life, upselling opportunities, and potential for differentiation make it an attractive addition to any café menu. However, it’s important to carefully analyze your costs and pricing strategy to ensure that you maximize your profitability.