Does an always-crowded coffee shop guarantee a healthy business? The first video from the YouTube channel Tính Ra Mới Biết asks about the gap between revenue and profit, using a hypothetical model with 150 million VND in monthly revenue but only 10 million VND in operating profit.
A crowd doesn't mean a profit
“Selling coffee is so profitable — five or six times your cost!” is a familiar belief about the drinks business. Looking at the price of a cup and the cost of ingredients, many assume it's a high-margin trade. But price minus ingredient cost reflects only part of the equation.
A coffee shop also pays rent, staff wages, utilities, operating costs, ingredient waste and many other expenses. That is the question raised in the video “Why can a packed coffee shop still lose money?” by Tính Ra Mới Biết. Instead of looking only at customer counts or revenue, the video uses hypothetical numbers to illustrate how costs shape the real bottom line.
150 million in revenue, only 10 million in operating profit
In the scenario, a coffee shop reaches about 150 million VND in monthly revenue — a number that looks positive from the outside. But after the model's operating costs, only 10 million VND is left.
| Metric | Hypothetical model |
|---|---|
| Monthly revenue | 150 million VND |
| Implied total operating cost | 140 million VND |
| Operating profit | 10 million VND |
| Operating margin | About 6.7% |
That means for every 100 VND of revenue, the shop keeps only about 6.7 VND of operating profit in this model. Notably, 150 million in revenue does not mean the owner takes home 150 million — most of it goes to keeping the business running. These figures represent no specific shop; they illustrate a financial principle.
Why can rising revenue make profit jump?
In another scenario, when revenue rises from 150 million to 201 million VND, hypothetical operating profit can rise from 10 million to 44 million. Revenue rose 51 million, but profit rose 34 million. This happens when a business already carries some relatively fixed costs.
For example, rent does not necessarily rise with each extra cup sold. When sales grow while the shop stays within its current capacity, part of the added revenue contributes significantly to profit. But revenue doesn't always lift profit by the same ratio: if customers exceed capacity, the shop may need more staff, more equipment or new costs. So the 44 million figure is only an illustrative scenario.
Can a 10% discount turn profit into loss?
Suppose the shop has 150 million in revenue and 10 million in operating profit. If it cuts prices 10% while sales volume stays flat and costs stay the same, revenue could fall to 135 million. The shop loses 15 million in revenue, turning a 10 million profit into a 5 million loss.
| Metric | Before discount | After 10% discount |
|---|---|---|
| Revenue | 150M | 135M |
| Assumed cost | 140M | 140M |
| Operating profit/loss | +10M | −5M |
The table assumes volume and costs are unchanged. In reality a promotion may increase orders, change the product mix or add marketing costs, so its effect must be judged on real data. The key point: discounting does not automatically mean higher profit, even when it draws more customers.
Costs that are easy to overlook when opening a coffee shop
Beyond brewing ingredients, a coffee business must weigh many costs. Rent can be a large share, especially in high-traffic spots. Staffing is not just base pay but also scheduling, shifts and related labor costs.
For shops selling via delivery apps, platform fees and promotions can affect the actual take per order. There are also utilities, equipment maintenance, consumables, ingredient waste and upfront investment. The combination of all these is why a crowded shop can still earn little — or lose money.
Don't open a shop just because another one is busy
The video also questions a common mindset when starting out: seeing a busy model and assuming the market still has plenty of room. But the crowd at one location doesn't represent total market demand. A successful shop may owe it to a prime location, loyal regulars, an established brand or strong cost control; a new shop faces investment costs, customer acquisition and different operations.
Before opening, researching the target customers, their spending power, local competitors and real costs helps assess the model more carefully. More importantly, you should determine break-even revenue and the minimum number of products to sell per day to stay afloat.
“Tính Ra Mới Biết” tells economics through numbers
Instead of complex financial formulas, the video uses a cartoon character, Anh Tính, to walk viewers through hypothetical situations. The numbers appear in everyday examples, from coffee-shop revenue to the impact of higher sales or discounts. This is the channel's first video, aiming to explain seemingly familiar issues with arithmetic and a practical lens.
Watch: “Why can a packed coffee shop still lose money?”
A message worth pondering: a business cannot be judged by its crowd or its cash in alone. What matters is how much is truly left after costs. For anyone weighing whether to open a shop, it's a reminder to start from the financial math and market research, not just a feeling that an industry is doing well.
Note: all financial figures here are hypothetical per the video's content, used to explain business principles. They are not the results of any specific shop and do not represent the industry's general profitability.
