The founder of upmarket coffee chain Grind has revealed that a £4.10 flat white generates only 18p profit. David Abrahamovitch, who launched the brand in 2011 from his father’s former mobile phone shop on London’s Old Street roundabout, broke down the costs to justify the price.
According to his calculations, staff costs account for £1.60 of the price, covering baristas, waiters, and head office salaries. A further 55p goes on mugs and paper cups, 96p on core operating costs, 68p on VAT, and 13p on discounting. This leaves just 18p profit per flat white.
Abrahamovitch told The Times: 'Our flat white has to be best in class.' He added that customers are not just buying a coffee but 'an escape from the office, a treat for a moment in the day – almost like when people used to nip out for a cigarette break.'
The firm noted that other costs are rising, including the price of green coffee beans, which has more than doubled since 2024. Grind has tried not to pass these increases on to customers.
Grind has expanded to 11 sites and three trucks across the UK, plus a franchise in Dubai airport, a partnership with British Airways, and a range of coffee pods and canned drinks. The chain faces competition from other premium brands, as data from Meaningful Vision for the Financial Times in January showed that major chains like Costa Coffee, Starbucks, and Pret A Manger are losing custom to upmarket rivals.
