CAFÉ FINANCE
Continued from page 30 Let's bring some hypothetical numbers into the discussion to
illustrate how you can maximize your profitability in baked goods. Let's say you currently purchase pastries for $1.50 each, sell them for $3 and that they have a shelf life of one day. We'll also assume you sell 20 a day and that you sell out at that quantity. The follow- ing projections are reasonable:
Quantity purchased 20 Quantity sold Sales
20 $60
Cost of goods sold $30 Profit before waste $30 Waste Profit
$0 $30
30 25
$75
40 33
$99
50 42
$126
$37.50 $49.50 $63 $37.50 $49.50 $63 $7.50 $30
$10.50 $39
$12 $51
60 45
$135
$67.50 $67.50 $22.50 $45
Although these numbers are just assumptions, you can see how
increasing your order quantity can increase your profit. You can also see how at some point, ordering too much starts to hurt you. Experiment with purchasing different quantities and make a simi- lar chart for your own store.
HALF BAKED, FULL REVENUE There are food-sourcing alternatives that can lower your cost
and reduce the risk of buying more than you need. One popular route is buying par-baked pastries. These are goodies that are par- tially baked and then frozen prior to delivery to your store. The key advantage is that the product is not wasted if unconsumed. The final baking process is also relatively short, so if you start to run out of pastries, you can quickly get more product into the display case. Oh, and it doesn't hurt that the baking cycle leaves your shop smelling divine.
32 Fresh Cup Magazine freshcup.com