How to Calculate Your Chai Cost per Cup

Steaming cup of plain karak chai

A bag price alone does not tell you the cost of a drink. You also need the actual powder dose, serving size and other costs of running your beverage service.

How do you calculate the premix cost?

Premix cost per cup = bag price ÷ actual servings per bag. Measure servings using your chosen recipe or calibrated machine settings. Different blends and cup sizes can produce different yields.

What does an example look like?

If a hypothetical $25 bag produces 50 measured servings, the premix costs $0.50 per cup. If it produces 40 servings, that rises to $0.625 per cup. These are arithmetic examples, not promised yields for any Tazza Chai product.

What other costs belong in the calculation?

  • Cups, lids and stirrers.
  • Water, electricity and cleaning supplies.
  • Labour, waste and payment-processing charges.
  • Machine purchase, servicing and any delivery costs.

Is the remainder all profit?

No. Selling price minus variable drink costs gives a contribution toward your fixed costs. Net profit also depends on sales volume, rent and other business expenses. Compare figures consistently before sales tax.

Record a week of actual servings and waste to improve your estimate. Ask us about a suitable setup.

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