Workers using cafes as offices may reduce their profitability

3 April 2024

Malcolm Knox, writing for The Sydney Morning Herald:

Then there are rents, insurance, equipment and other fixed costs. In a Sydney suburb near me, a new cafe is paying $5000 a week in rent. At $1000 per 7am-to-1pm shift, they need to be selling 300 coffees a day to make it worth their while. That’s nearly one a minute. They don’t often make money on food, which requires more infrastructure such as cooking, storing, plates and so on. It’s all down to their coffee price.

Cafes are a great stand-by for the WFH crowd, an office away from the home office. They’re somewhere to work, be in the company of others, while enjoying a coffee. Or two. Or three. In fact, the more the merrier, so far as the cafe is concerned.

But as much as I love the idea of working in a cafe, I do so infrequently. And then in short bursts — an hour tops — and I will buy at least one coffee and a cake — valued at maybe a little more than ten dollars — to make my stay at least partially worthwhile for the cafe. But even then, I’m short-changing the owners, as they’re hoping to earn closer to forty dollars an hour on the table I occupy.

Running a cafe you see, is an expensive undertaking, and WFH workers who buy a single cup of coffee, and expect to have the same table to themselves all day, are doing the cafe a distinct disservice. I’m fortunate to have a couple of hot-desk options if I don’t want to work at home, virtually negating the need to use a cafe, something I’m sure owners are grateful for. Instead, I’ll come by for a take-out coffee, and be on my way.