21/04/2025
Sharing more excert from Ethan Butler, a humble cafe owner I look up to. He is Seattlr-based but makes a lot of sense to fellow owners like us in the Philippines--
đĽ CAFE OWNER TO CAFE OWNER | THIS IS WHERE PROFIT HIDES đĽ
Most cafĂŠ owners donât need more hours.
They need less waste, tighter systems, and ruthless clarity.
Hereâs what I wish someone hit me with years ago:
đŚ 1. Your Supplier Account is Not Your Business Partner
If youâre ordering the same way you did 6 months ago, youâre bleeding.
Review every invoice.
⢠Are you over-ordering to hit discounts?
⢠Are there ingredients that donât serve multiple dishes?
⢠Are you accepting shrinkage as ânormalâ?
Small shifts like consolidating suppliers, switching brands, or aligning orders to prep cycles = thousands saved over 12 months.
â 2. Coffee Might Be Your Brand, But Itâs Not Always Your Margin
You might love your coffee. So do your customers.
But unless your pricing, portioning, and waste is dialed inâitâs a profit killer.
Run this check:
⢠Are your staff double-dosing?
⢠Are you tracking milk wastage?
⢠Do you know your margin per cup?
One cafĂŠ I worked with fixed this and gained $1.20 per cup back. Thatâs $1,200/month on 1,000 cups.
đ§ 3. If Youâre Still Running the Business in Your Head, Youâre in Trouble
Verbal instructions. No documented systems. âJust wing itâ rostering.
Thatâs not leadership... thatâs survival.
System = freedom.
Start simple:
⢠Write down your open/close routine
⢠Lock in checklists for daily prep
⢠Delegate with accountability
Itâs not about being corporate. Itâs about protecting your brain for the high-level decisions that actually move the needle.
đ 4. Loyalty Cards Arenât Loyalty Programs
Punch cards donât build relationships.
Smart loyalty is data-driven:
⢠Capture names and birthdays
⢠Reward spend tiers, not just visits
⢠Offer high-margin bonuses (free coffee = loss, free cookie = 20c cost, $4 value)
Retention is easier than acquisition. And far more profitable.
đ 5. Every CafĂŠ Has a Hidden Bottleneck â Find Yours and Profit Explodes
Itâs usually one of these:
⢠One staff member holding everything up
⢠A menu item wrecking flow
⢠A layout issue slowing service
⢠A pricing structure thatâs too safe
Fix one bottleneck and suddenly 12pmâ2pm goes from chaos to cashflow.
Iâll leave you with this:
CafĂŠs donât fail from a lack of effort.
They fail when the owner stays buried in the grind and never steps back to see the bigger picture.
If youâre tired but not done⌠overwhelmed but still in the gameâŚ
Zoom out.
Because youâre not just serving eggs and coffee.
Youâre running a business, building a brand, and shaping your future.
Margins matter. Energy matters. You matter.
-ETHAN BUTLER