The Ingredient Cost of a Flat White
A standard 220ml flat white uses approximately 18–22g of coffee beans and 160ml of full-cream milk. At current Coles and Woolworths prices, that's roughly A$0.35–0.45 in beans and A$0.18–0.22 in milk — a total ingredient cost of around A$0.55–0.65. Selling at A$5.00, that's an ingredient cost percentage of just 11–13%.
What About Labour and Overheads?
Making a flat white takes a skilled barista approximately 2–3 minutes including grinding, tamping, pulling the shot, and steaming milk. At A$28/hour (a typical casual barista rate), that's A$0.93–$1.40 in labour per coffee. Add overhead allocation (rent, power, insurance) of roughly A$0.80–$1.20 per coffee, and your total cost is around A$2.30–$3.25.
The Real Profit Per Cup
On a A$5.00 flat white with total costs of A$2.30–$3.25, your gross profit per cup is A$1.75–$2.70. Across 200 coffees per day, that's A$350–$540 in daily gross profit from coffee alone — before any food sales. This is why coffee volume is the single most important driver of café profitability.
How to Increase Coffee Profitability
The three levers are: (1) volume — more customers, more coffees; (2) average spend — upselling to larger sizes or add-ons like extra shots; (3) cost control — using a consistent grind weight and not over-pouring milk. A barista who consistently uses 170ml of milk instead of 160ml adds A$0.01 per coffee — trivial on one cup, but A$730 per year on 200 coffees per day.
Should You Raise Your Coffee Prices?
Many Australian cafés are still charging A$4.50–$5.00 for a flat white despite significant increases in bean and milk costs since 2022. If you haven't raised coffee prices in the last two years, you've likely absorbed a 15–25% increase in ingredient costs without passing it on. A A$0.50 price increase on coffee is rarely enough to drive customers away, but it meaningfully improves your margin.
