Occupancy Costs?

I’ve continually wondered about the viability of our shop’s lease, and have never found coffee industry specific talk about Occupancy Costs. Widespread business advice is that that your total occupancy costs – Lease, Common Area Maintenance Fees, Utilties, Etc – should make up about 10% of total net sales for restaurants and bars. If you’re paying $3k in occupancy costs per month, you should aim for sales of around $30k per month.

However, for coffee shops (note: not roasteries with coffee bars) 10% seems hard to achieve, and our shop even has a decent selection of food and retail sales. Is anyone pulling off this kind of ratio?

Our first six months open, our occupancy costs were 23.3% of our sales – that seemed unsustainably high.

Four years later, our costs look to be about 16% of sales. This seems sustainable, we’re happy enough, but is well above restaurant business advice. What kind of ratios do longer-established coffee bars have? What kind of ratios are businesses with multiple locations seeking?

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