The founder of the upmarket coffee chain Grind has revealed that his £4.10 flat whites generate a mere 18p profit. David Abrahamovitch, who launched the brand in 2011 from his father's former mobile phone shop on Old Street roundabout in east London, has provided a detailed cost breakdown to justify the premium pricing.
Cost breakdown of a flat white
According to Mr Abrahamovitch, for every £4.10 flat white sold, £1.60 goes towards staff costs—covering baristas, waiters, and head office salaries. A further 55p accounts for the mugs and paper cups, 96p covers core operating costs, VAT takes 68p, and discounting costs add 13p. After all these deductions, only 18p remains as profit.
Justifying the price
Speaking to The Times, Mr Abrahamovitch stated: “Our flat white has to be best in class.” He added: “The truth is, it’s not just coming for a coffee. It’s 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.”
Grind’s menu starts at £3.20 for an espresso, with the most expensive item—a salted caramel frappe—priced at £5.80. The company has noted that the cost of green coffee beans, which are unroasted, has more than doubled since 2024, yet they have tried to avoid passing all increases onto customers.
Grind's expansion and market position
Since its inception, Grind has grown to 11 sites and three trucks across the UK, along with a franchise at Dubai airport and a partnership with British Airways. It also produces coffee pods and canned drinks stocked nationwide.
According to analysis from hospitality data provider Meaningful Vision for the Financial Times in January, the UK’s largest cafe chains are losing customers to premium brands like Grind and Black Sheep. Costa Coffee, reportedly at risk of being sold by Coca-Cola, has faced pressure, while Starbucks closed UK stores last year and Pret A Manger saw its value drop in September.
