How to Price Coffee Drinks: An Owners Guide to Margins and Profit @square
How to Price Coffee Drinks: An Owners Guide to Margins and Profit  @square
Uploaded April 2026 | Updated September 2026, 2 weeks ago
Knowing your coffee is good is one thing. Knowing it's actually making you money is another.

In this video, we explain how to price coffee drinks to help your café stay profitable and competitive. We cover how to calculate your cost of goods sold, what profit margins to aim for in the coffee shop industry, and how to factor in ingredients, milk alternatives, and labor costs for popular drinks like cold brew, iced coffee, cappuccinos, and lattes.

We also break down five pricing strategies to help you find the right approach for your business, including keystone pricing, competitive pricing, value-based pricing, premium pricing, and penetration pricing. Whether you're opening a new café or reviewing your existing menu, this guide covers everything you need to know to set prices that work for your business.

Read more about café pricing and business tools ➡️ squareup.com/us/en/the-bottom-line/operating-your-business/how-to-price-coffee-drinks

#coffeeshop #cafeowner #coffeepricing #coffeebusiness #smallbusiness #businesstips #foodandbeverage #costofgoodssold #profitmargin #square

0:00 Intro
0:43 The Hidden Cost Of Coffee
1:12 Pricing Popular Coffee Drinks
2:14 Your Pricing Strategy
2:42 Understanding Your Business
2:51 Integrating Pricing Into Your POS
3:25 Why Pricing Right Matters

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How to Price Coffee Drinks: An Owner's Guide to Margins and Profit

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