7 must have calculators for Coffee Shop

Most people start a coffee shop in Riyadh because they love coffee. They end up closing because they hated math. After years of consulting for cafes across the Kingdom, I realized that the “business plan” usually falls apart not because of the coffee quality, but because of the Hidden Saudi Costs like Maktab Amal fees, GOSI contributions, and ZATCA VAT.

To solve this, I built these 7 specific calculators for coffee shop owners to answer the most critical questions about your business. Here is the breakdown of why you need them and how they save you from financial bleeding.

Part 1: The HR & Government Trap

The Question I Ask Clients: “You hired a barista for 2,500 SAR. Do you know that he actually costs you over 4,000 SAR? Where is that extra money coming from in your budget?”

The Expert Answer: In Saudi Arabia, the “Salary” on the contract is just the tip of the iceberg. New owners often forget the government “subscription fees” attached to every expat employee.

• The Maktab Amal Shock : Unless you are a very small business (less than 9 employees) with a full-time Saudi owner, you are likely paying 9,600 SAR per year just for the work permit. That is 800 SAR a month that doesn’t go to the employee, but must come out of your pocket.
• The GOSI Reality : You need to calculate GOSI differently for Saudis vs. Expats. For a Saudi barista, you are paying 11.75% on top of their wage. For an expat, it’s just 2% (Hazard). If you mix this up, your payroll forecast will be off by thousands.
• The Silent Debt : This is the one that bankrupts cafes years later. Every month your staff works, they accrue “End of Service” benefits. It is not cash you pay now, but it is a debt you owe. If you don’t calculate this liability and set the money aside, you will be hit with a massive bill when a barista resigns after 5 years.

Part 2: The Coffee Science & Margins

The Question I Ask Clients: “You are selling your Spanish Latte for 18 SAR because your competitor sells it for 20 SAR. But do you actually know how much it costs YOU to make it?”

The Expert Answer: Pricing based on your neighbor is suicide. You must price based on your costs.

• The Milk Inflation : Everyone obsesses over the price of coffee beans, but a latte is 80% milk. If you use premium fresh milk (like Nadec/Almarai) and your baristas waste 20ml per cup, your cost skyrockets. This calculator forces you to input the bean price AND the milk price to see the real “Cost Per Cup.” You might be shocked to find your 18 SAR latte costs 7 SAR to make, leaving you with barely any profit after rent.
• The Margin Myth : Once you know the cost, how do you price it? You need a healthy margin (usually 70%+) to cover your rent and electricity. This tool helps you work backward: “If I want a 70% profit, what MUST I charge?”

Part 3: Financial Survival

The Question I Ask Clients: “Your rent is 150,000 SAR a year. That sounds scary, but do you know how many cups of coffee you need to sell today just to pay the landlord?”

The Expert Answer: Big numbers paralyze us. Small numbers motivate us. You need to break the mountain down into rocks.

• The Daily Target : This is the “Sleep Well at Night” tool. By inputting your Rent, Salaries, and Bills, it tells you exactly how many cups you need to sell daily to break even.
  • Scenario: It tells you “You need to sell 45 cups to survive.”
  • Reality Check: If you are only selling 30 cups by 4 PM, you know you are in the “Danger Zone” for the day. It turns abstract finance into a clear daily mission for your team.
• The ZATCA Trap : never treat the cash in your register as yours. 15% of it belongs to the government. Use the VAT calculator to strip the tax out of your daily sales so you don’t accidentally spend the tax money on inventory.

Read More : Start a Coffee Shop – Complete Guide