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“70% gross margin” – M’sian Visits Starbucks in Puchong, Estimates They Make RM54K of Profit in a Month

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Source: Instagram | adriankang8888

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Wherever we go, it’s not uncommon for us to see long queues at Starbucks. The prices of the items are not cheap (unless you go for the breakfast set), so at times, some of us may wonder how much do they really make in a day.

A Malaysian content creator and entrepreneur had the same curiosity, so he did an estimated calculation of how much Starbucks earns in a day. In his Instagram post @adriankang8888, Adrian shared his “site visit” of 1 of the outlets in Puchong, which is available for both dine in and drive thru. Adrian reached the place in the morning and up until 1pm, there was a total of 36 orders (including food delivery orders).

Screenshot 2023 09 05 153728

Yes, Adrian patiently observed and counted.

By 4pm, the crowds and the traffic outside the coffeehouse have started to build up.

“It was a huge difference than what I saw in the morning.”

Screenshot 2023 09 05 154102

Adrian was at the scene up until 11pm, and before the coffeehouse closed its door for the night, Adrian went home, and began his calculation on the next day. Here’s what Adrian discovered.

“There was a total of 188 cups of beverages sold for both dine in and drive-thru. For delivery orders, there were 42 cups of beverages sold.”

In total, 230 cups of beverages were sold during Adrian’s visit. Assuming the price for 1 beverage is RM18, this means the coffeehouse can make RM4,140 per day. If you do a simple math to estimate its monthly sales, that’s a total of RM124,200. 

The estimated sales was based on the crowd on a Monday, so the figure might be double on weekends.

“The scary thing about Starbucks is, their gross margin goes up to 70%, or possibly higher.”

Screenshot 2023 09 05 154154

So, assuming the capital for each cup of drink is RM5, after deducting the capital, the profit that Starbucks made during Adrian’s visit was RM2,898. In a month, the place can make a profit of RM86,940.

And let’s not forget other deductions, including the salary of the workers. According to Adrian, the outlet in Puchong has a total of 7 staff. With an estimation of RM2,000 salary for each worker, that’s RM14,000 per month, excluding the RM4,000 salary for the outlet manager.

The sum is now RM18,000.

Okay, we know that there’s a lot of math involved and you’re probably scratching your head now, so we’ll break down Adrian’s deductions for you.

  • Rental (RM7,000)
  • POS System, Wi-Fi, maintenance (RM3,000)

After all the deductions, Adrian estimated that the outlet makes roughly RM54,440 of profit in a month. Adrian told WORLD OF BUZZ that he was indeed at the Starbucks for the entire day to observe the crowd.

You can watch the full clip here and listen to Adrian’s rough calculation.

Starbucks lovers, do you agree with Adrian’s estimated calculation of their monthly profits?

 

Also read: “Long queue all the time” – Newlyweds in Klang Spend RM14K on Starbucks Truck for Their Wedding

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