Sunday, November 20, 2011

The Real Cost of Coffee Breaks


!±8± The Real Cost of Coffee Breaks

I have been involved in the coffee industry for a while and I am starting to accumulate a bit of knowledge on what motivate employers to get café quality coffee for their staff. There are a number of reasons. Some employers value the positive impact on Human Resource Management by rewarding employees with premium quality coffee in the office.

Others consider the reduction of their environmental footprint by removing the use of disposable coffee cups otherwise used if the coffee was sourced from the local café. But the most common reason - especially in these tough economic times - is usually the economic benefit for both the employees and employer. So I decided to do a bit of economic analysis on this aspect and discovered that the cost of coffee breaks to the economy is quite impressive. To better understand, let's just consider for example a small office with 10 staff. Following the analysis for our case study office

Employer Perspective:
Our example average small office has 10 coffee drinkers. Each of them drinks an average of 2 cups per day. The average salary is per hour. Each coffee break requires a trip to the local café, waiting in line, paying, and returning back to the workplace. The trip usually also involves waiting for the lift (twice), waiting at the pedestrian crossing traffic lights to cross a busy road in the City Business District (twice). All this while juggling the city crowd with a scorching hot coffee in our hand. In the best case scenario this quick trip takes at least 10 minutes. 10 minutes twice a day times 10 workers, ends up being 52,000 minutes a year (paid by the company). At the assumed hourly rate this translate to ,000 per year cost for the economy!

Employees Perspective:
Let's analyse the same situation from the employees' perspective. The average cost of a regular coffee in Sydney is about .50. 20 coffees a day times 260 working days sums up to ,200 per year! On average ,820 per employee!

Conclusion:
Combining the two perspective we can see how the real cost of coffee breaks cost our average small office ,000 per year. It is hard to project these figures to the total number of offices in Australia. However, a guesswork figure published by the Sydney Morning Herald (Coffee by numbers - July 18, 2006) indicates a possible 1.23 million cups served in Sydney alone every day. You can do the math and draw your conclusion on the total cost of coffee breaks.

An in-house office coffee solution would instead takes a maximum of 2 minutes per break: walk to the kitchen, make your coffee, return to your desk and enjoy. You can get an office coffee solutions to conveniently provide café quality coffee at your workplace at a fraction (from Body.80 per cup in Sydney) of the price you would otherwise pay.


The Real Cost of Coffee Breaks

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