Glossary

Net Margin per Cup

Absolute dollar profit remaining from a beverage sale after subtracting all direct ingredient and store costs.

Net Margin per Cup measures the true profitability of a beverage item by subtracting all direct ingredient packaging and labor costs from the final retail price.

Complex multi ingredient beverage builds often hide their true cost trapping cafe operators into selling low margin items that fail to cover store operating expenses.

Our consolidated dry premixes offer clear predictable portion costs allowing brands to lock in strong net margins across their entire beverage menu.

Read more: The Karak Tea Profit Playbook

Related terms: CapEx, OpEx, Menu Engineering