Coffee on spoons

The Economics of Using a Commercial Coffee Machine

Calculating ROI and Cost Savings

Cafe Du Monde is your one-stop shop for incredible coffee. From an exceptional range of machines to the highest quality coffee beans, specialty teas and rigorous barista training, you'll find everything you need directly with Cafe Du Monde. While commercial coffee machines are considered to be a large upfront cost, this blog will detail how your commercial machine will assist with long-term savings, how to calculate your ROI and the benefits of the initial investment.

How a commercial coffee machine can save you money

When it comes to commercial coffee machines, many business owners often focus solely on the upfront cost without considering the long-term expenses. However, understanding the true cost of these machines is essential if you want to make informed decisions for your business and get the most return on your initial investment. For example, on top of the initial cost of a commercial coffee machine, you also need to factor in the cost of running it, any repairs or maintenance, and the cost of coffee beans and other equipment. However, by understanding these things, you can make informed choices on the most energy-efficient coffee machine for example. Or a machine that has countless positive reviews praising its espresso capabilities or the speed at which it enables cafe staff to serve customers. This blog goes into more depth about the economics of using a commercial coffee machine and how to navigate calculating ROI and cost savings.

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Making Coffee

Calculating ROI

Determining the return on investment (ROI) for your business is a crucial step when considering an upgrade to a more efficient coffee machine. Calculating the ROI involves comparing the cost savings and benefits from the new machine with the initial investment.

To calculate the ROI, start by determining the total cost of the new coffee machine, including the purchase price, installation costs, and any additional expenses such as training or accessories. Then, estimate the annual savings that the machine will generate, such as reduced energy consumption, lower maintenance costs, and savings from discarded subpar coffee batches.

Next, divide the annual savings by the total cost of the machine, and multiply the result by 100 to get the ROI percentage. For example, if the total cost of the new coffee machine is £5,000 and the annual savings amount to £2,000, the ROI would be calculated as follows:

(£2,000 / £5,000) x 100 = 40%

This means that the new coffee machine has an ROI of 40%, indicating that it will pay for itself in 2.5 years (100% divided by 40%). Any savings generated beyond that period will be additional profit for your business!

Calculating the ROI allows you to make an informed decision about investing in a more efficient coffee machine. It provides a clear understanding of the financial benefits and helps you determine whether the investment is worthwhile for your business.

Cost Savings

When it comes to commercial coffee machines, one of the biggest benefits of purchasing a commercial machine is the significant cost savings it can provide for your business. Investing in a high-efficiency commercial coffee machine that is built for the rigours of your business can help you save money in various ways, allowing you to maximise your profits.

As a breakdown, imagine you invest £4,000 in a high-quality coffee machine. With programmable timers and energy-saving features, you can significantly reduce your electricity bills compared to boiling water in a kettle multiple times a day. Additionally, the cost of coffee beans or capsules for a coffee machine is much lower than individual sachets used in kettles. Over time, these savings add up, helping you to cut costs and improve your bottom line.

White Coffee Mug

Reduced energy consumption 

One major area of cost savings is the reduction in energy consumption. Advanced coffee machines are designed to be more energy-efficient, meaning they use less electricity and result in lower utility bills.  Additionally, boiling water in a kettle for coffee can be quite expensive. On average, it costs around 2.5 pence per use. If an employee prepares coffee three times a day, it adds up to 7.5 pence. Comparatively, a bean-to-cup coffee machine can brew seven delicious espressos for just 1.5 pence, translating to less than half a penny per cup of coffee per person. For a company with 50 employees, this translates to annual savings of over £800.

Over time, these savings can add up significantly, contributing to a healthier bottom line for your business. Another cost-saving factor is the reduction in maintenance and repair expenses.

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Employee satisfaction 

If your commercial coffee machine is to be used in a busy office building for your employees, this can save them the daily cost of a cup of coffee. On average a cup of coffee from popular coffee shops is around £4. For staff who always rely on a caffeine fix, this could save them up to £20 a week, as well as time going to and from the coffee shop, waiting around, etc. This in turn ensures they have access to great coffee just a few steps from their desk, save them money and contribute to their overall workplace productivity and satisfaction.

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Reduced repair costs 

High-efficiency coffee machines are built to last longer and require fewer repairs, which can save you money on costly maintenance fees. Additionally, with more precise temperature control, these machines minimise wastage as you won't have to discard any poor coffee batches, which can lead to substantial savings in terms of both coffee and money.

Furthermore, investing in a high-efficiency coffee machine can lead to increased revenue. These machines often produce better quality coffee, which can improve customer satisfaction and loyalty. Happy customers are more likely to return and recommend your business to others, potentially increasing your sales and boosting your profits.

In summary, upgrading to a high-efficiency coffee machine can result in significant cost savings for your business. From reduced energy consumption and maintenance expenses to increased revenue from improved customer or employee satisfaction, the financial benefits of investing in a commercial coffee machine are undeniable.

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Commercial coffee machines

If you’re on the fence about purchasing a commercial coffee machine for your business, or wouldn’t know where to start with choosing the right one, turn to Cafe Du Monde. The coffee machine experts at Cafe Du Monde will gladly assist in helping to match you to the right machine. The machines available suit every need, from traditional espresso machines to more simple bean-to-cup machines, you’ll find the perfect machine to suit your coffee needs, as well as ongoing training and support from the Cafe Du Monde Academy. 

Additionally, all the extra bits can be purchased directly from Cafe Du Monde. Delicious coffee beans, hot chocolate powder, hot water boilers, speciality teas and beyond. Browse the website today to find the perfect commercial machine for your requirements and begin your journey to increased customer and employee satisfaction, reduced costs, and most importantly, exceptional coffee.

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