What does a freddo espresso really cost?
A line-by-line cost breakdown of one cup, and why VAT changes the answer.
Most coffee-shop owners know their menu price by heart and their cost per cup roughly. Here is the cup worked out line by line, using example supplier prices.
The recipe
| Ingredient | Quantity | Unit price | Cost |
|---|---|---|---|
| Coffee beans (€24/kg) | 14 g | €0.024/g | €0.34 |
| Ice (€2.20 per 5 kg) | 150 g | €0.00044/g | €0.07 |
| Sugar (€1.30/kg) | 5 g | €0.0013/g | €0.01 |
| Cold cup, lid, straw | 1 each | — | €0.11 |
| Total | €0.52 |
Take VAT out before you compare
A €2.40 freddo is not €2.40 for you. With 13% VAT, you keep €2.12. So the cup costs you about 24.5% of what you actually earn on it.
Is 24.5% good?
For coffee drinks, many shops aim for roughly 15–25% ingredient-and-packaging cost. Just under 25% is fine, but a 10% rise in bean prices would push it over.
What to do with this
- Recalculate whenever a supplier changes a price.
- Compare drinks by euros of margin per cup, not only by percentage.
- Use the calculator to see which drinks carry your month.