The fair net profit per initial investment amount for a new coffee shop business can also vary depending on many factors such as location, size of the coffee shop, menu offerings, and operating costs.
As a general rule of thumb, a fair net profit per initial investment for a new coffee shop business would be around 20% to 30%. This means that for every dollar of the initial investment amount, the business would generate a net profit of 20 to 30 cents.
To calculate the net profit, you would subtract all of the expenses (such as rent, utilities, payroll, ingredients, supplies, and other operating costs) from the revenue generated, and then divide the result by the initial investment amount.
It’s important to note that the initial investment amount can also vary widely depending on the size, location, and other factors of the coffee shop business. Additionally, as with any business, the profitability of a new coffee shop can take time to establish and may fluctuate depending on various factors.
It’s also worth noting that the fair net profit per initial investment amount for a new coffee shop can depend on the goals of the business owner or investors. Some may be willing to accept lower profits in the short term in order to grow the business and generate higher profits in the long term.