Boss of trendy London coffee chain says he makes just 18p profit on £4.10 flat white
The founder of luxury coffee chain Grind claimed his £4.10 flat white coffees made a profit of just 18p.
Grind, which started operating in 2011 in David Abrahamovitch’s father’s former mobile shop at the Old Street junction in London’s east end, has an extensive coffee menu starting from £3.20 for an espresso. The salted caramel frappe, the most expensive coffee on the menu, costs £5.80.
However, the founder claimed that the expensive coffees were justified by the cost breakdown that took into account personnel costs, incoming goods, building rent and VAT.
Mr Abrahamovitch’s calculations show that for a £4.10 flat white, £1.60 goes towards staff costs, paying baristas, waiters and the head office. A further 55p is charged for the mugs and paper cups the coffee comes in; Another 96p is for core running costs, VAT takes 68p and then 13p is added to miscellaneous discount costs. Mr Abrahamovitch claims this means he makes an 18p profit on each flat white.
To justify the price he said: Times: “Our flat white has to be best in class.”
He added: “The truth is, it’s not just for coffee. It’s an escape from the office, a treat for a moment in the day. Almost like when people go out for a smoke break.”
The company reportedly claimed that other costs, which they tried not to pass on to customers, had also increased. The price of unroasted green coffee beans has more than doubled since 2024.
Mr Abrahamovitch’s coffee brand has franchised 11 sites and three trucks across the UK since 2011. It also has a franchise at Dubai airport, has a partnership with British Airways and produces coffee pods and canned drinks, which are stocked across the UK.
The UK’s biggest cafe chains are thought to be losing ground to premium coffee brands such as Grind and Black Sheep, according to analysis from hospitality data provider Meaningful Vision. Finance Times In January.
Costa Coffee, which was reported to be at risk of being sold by Coca-Cola at the start of the year, wasn’t the only chain under pressure; Starbucks closed its UK stores last year and Pret A Manger lost value last September.
