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VM 001
VM RECEIVED:
June 15, 2026
Hey Erica, I'm hoping you can help me think through something.
I've owned my cafe for about three years now, and honestly, we're busy. The problem is we're busy and somehow still not making money.
Every month feels like we're working harder than the month before. Sales look okay, but payroll keeps creeping up, food costs are all over the place, and I feel like I'm constantly putting out fires.
I haven't paid myself in two months, and I'm starting to wonder if I'm missing something obvious.
How do you know if you have a sales problem, a pricing problem, or an operations problem?
Any advice would be appreciated.
ERICA'S RESPONSE
First, I want you to know you're not alone.
One of the biggest misconceptions in the coffee industry is that busy automatically means profitable. Unfortunately, that's not always true.
When I hear someone say, "We're busy but we're not making money," I immediately start looking at three areas:
1. Menu Pricing
Many cafe owners set prices based on what feels fair instead of what the numbers actually require.
If your costs have increased over the last few years and your menu hasn't changed, that's usually one of the first places to investigate.
2. Labor Efficiency
Payroll is often the largest expense after cost of goods.
The question isn't whether your team is working hard. It's whether staffing levels match customer demand throughout the day.
I've seen cafes save thousands simply by adjusting schedules and shift overlap.
3. Operational Leaks
Small inefficiencies compound quickly.
Waste, inventory inaccuracies, unnecessary ordering, over-portioning, equipment downtime, and inconsistent procedures can quietly drain profit even when sales are strong.
My Recommendation
Before making any major decisions, pull the last three months of:
Sales reports
Payroll reports
Cost of goods reports
Then compare them side-by-side.
Most owners try to solve profitability problems by increasing sales. In reality, the answer is often hidden inside the business they're already running.
Remember: the goal isn't to work harder. The goal is to build a cafe that works for you.
You've already done the hard part by asking the question.
Keep going.
— Erica

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