Tanzanian Coffee Shop
September 19, 2018
Coffee training quiz
January 8, 2019

How much can I earn from a coffee shop

The question I get asked the most during my “How to start a coffee shop” course is what is the realistic amount of money I can take out of my coffee shop each year. This is an important question and consideration for anyone thinking of starting their own shop, particularly if you are giving up a job to give this a try.

How much can I earn?

The starting place is to look at what a typical coffee shop manager earns, it’s very easy to google Starbucks manager jobs and get an idea of what the big chains are paying. Somewhere between £20k – £25k depending on location and the size of the shop is what the typical high street chain pay their managers. Independent coffee shops are paying anywhere between £15k and £25k again depending on size and location. Therefore, if you were running a profitable coffee shop and working in the business as the manager you could expect to draw a similar salary from your coffee shop.

Profits as extra income

You could draw further income from the business as dividends (if you have set it up as a limited company). This requires you to make a profit after all taxes and deductions before you can draw a dividend and depending on the year you can draw some dividends tax free (current year 2018/19 it is £2000 tax free).

However, the reality is that it may take you a few years of running before you start to make a profit from the business.

Coffee shop size

In order for you to take a manager sized salary out of your coffee shop you need to have built up to a reasonable turnover. When revenue starts to hit £175,000 a year or £3500 a week then you could expect to have enough capacity to pay a managers salary at the lower end of the scale.

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