Core Business Terms
This type of cost stays the same no matter how many cups of coffee you sell.
What are fixed costs?
This report shows revenues, expenses, and profit for a specific time period.
What is an income statement?
Coffee beans and cups that are purchased and stored are known as this.
What is inventory?
The number of baristas scheduled to work is known as this.
What are staffing levels?
Setting coffee prices while balancing affordability and profit is known as this.
What is pricing strategy?
These costs increase every time you sell another cup of coffee.
This term describes the movement of money in and out of the business.
What is cash flow?
Unsold or expired products that hurt efficiency fall under this term.
What is waste?
Paying employees more per hour affects satisfaction and turnover; this is called what?
What are wages?
The percentage of total café sales your shop captures is called this.
What is market share?
This is the point where total revenue equals total costs.
What is the break-even point?
Net income divided by sales revenue gives you this measure of efficiency.
What is profit margin?
This limits how many cups your café can realistically produce and sell.
What is capacity?
High levels of this lead to better service quality and productivity.
What is employee motivation or morale?
Choosing between higher wages or higher profit is an example of this concept.
What are trade-offs?