Aussie cafe owner reveals how much he makes a year

An Aussie cafe owner and former chef has revealed how much he makes annually, with the figure prompting a heated discussion online.

An Aussie cafe owner has revealed he makes $300,000 a year, with his annual wage sparking a heated debate.

The former chef was stopped in the streets of Brisbane for an impromptu interview on behalf of Getahead, a jobs app.

“I’m a cafe owner/operator and I earn around the $300k mark,” he told the presenter when asked what he does and how much he makes.

“I used to be a chef so I have been cooking for 20 years. But I own four cafes now, they’re called Commitment Issues,” he claimed.

A former chef and small business owner has revealed how much he makes a year from his four cafes. Picture: TikTok/getahead.app

When the presenter asked “how do you know when you find something you love”, the man responded: “I think you just really enjoy it. I don’t really feel like I work. I can work every day of the week and [it] wouldn’t bother me … it’s not work to me anymore.”

The video was posted to TikTok by Getahead – a Brisbane-based tech start-up that bills itself as “like Tinder, but for jobs” where jobseekers create a profile and swipe right on roles they want to apply to.

It has generated mixed reactions with some stunned by how much he makes, while others have argued it’s “not that profitable” for four cafes.

“300k? Oh my god,” one person wrote.

He claims to make around $300,000. Picture: TikTok/getahead.app

“Mind boggling when you consider that the profit they make out of a cup of coffee is about 20 cents,” a second viewer claimed.

A third wrote: “Bros talking sh*t. Society is so f**ked. People talk so much smack these days. ‘I do this, I earn this’ it’s actually insane.”

However, many came to the man’s defence with some referencing the Australian Taxation Office’s benchmark average for cafe owners.

“People just get pressed over vids like this because they can’t fathom others making more than them working ‘lower’ jobs,” one person said.

“ATO industry benchmark average for cafe net profit is 50k. 50k x 4 is 200k.. 300k isn’t that much of a stretch if he has good locations,” another added, while a third agreed: “Exactly. If someone had 1 cafe you wouldn’t question them earning $50-75k. With 4 cafes, bro is working hard.”

According to POSApt, a POS system management company based in NSW, for small businesses, the cost to open a cafe in Australia ranges anywhere between $200,000 and $500,000 — with cafe owners earning anywhere between $60,000 to $150,000 annually depending on their business size.

The Aussie said he loves what he does and it doesn’t feel like work during an impromptu interview on the streets of Brisbane. Picture: TikTok/getahead.app

“The variable cost [to open a cafe] is based on factors such as the size of your cafe, location, type and more,” it states on its website.

“But if are only looking to establish a small coffee shop then the cost will be below $100,000.

“Most of your budget will be spent on advanced rent, furniture, beverage and ingredients, and common tools.”

It continued the owners’ profit is around 5-6 per cent of the cafe sales.

“The rest of the revenue is spent on staff salary, chef salary, maintenance, marketing and ingredients.”

Meanwhile, according to coffee roasting and distribution company Background Coffee, it said based on ATO statistics, the net income of the coffee shops is 10 per cent to 17 per cent of its sales.

“If you’re an average cafe with nominal rates, you can earn 10 per cent of sales,” it wrote in a blog.

“While with a good coffee shop, more strategically, you can make 17 per cent or even above.”

It said based on the ATO statistics, if average sales is around $157,500, with 83 per cent of expenses, it’s a 17 per cent profit and $26,775 net profit.

Cafes that have average sales of $425,000 with 88 per cent expenses, can see a profit of 12 per cent and net profit of $51,000.

Meanwhile if average sales are $600,000, with 90 per cent expenses, they can make 10 per cent in profit and $60,000 in net profit.

“Thus, being a coffee shop owner, you can make between $26,775 to $60,000. However, this educated guess is about the median coffee shop.”

It advised those looking to open a cafe should consider things like creativity when it comes to coffees and location.

“Being creative and coming up with new product ideas can incredibly affect your money flow and enhance your coffee shop turnover in Australia. So, being creative, you can reach that 17 per cent or higher,” it states.

“We always emphasise choosing the right location …. Why? Well, most coffee shops are not a destination, but a convenience business.

“Your coffee shop needs to be in a strategic location to get enough walking traffic to sustain your business. On the other hand, it’s obvious that where there is too much competition, survival can be more challenging. So, your location can directly affect the number of sales you generate.”