13/03/2026
If you are thinking about buying or starting a Cafe-Don’t!
Here’s why….
Cafes are often seen as a means to get into a lifestyle where you can
1. Be your own boss.
2. Increase your take home pay.
3. Reduce your own hours so you can spend more time with your family.
4. Reduce your stress.
The reality is far from this
1. You might be the boss but you will have to work in the business alongside staff.
2. If you are one of the few who are able to bring home more pay, that's usually at the expense of working excessive hours 60+ a week.
3. Your day doesn't start & finish when the doors open & close. Preparation, rosters, payroll, stock ordering, pay bills are just some of the things you have to do, often early morning or late at night-7 days a week.
4. I have never met a cafe owner who has reduced their stress since owning the cafe. In fact the opposite happens.
Out of 100 cafés/restaurants
12–16 close each year
Around 60 are gone within 3 years
Around 80 are gone within 5 years
Queensland hospitality failure tends to be driven by:
Underestimating labour costs
Poor menu costing
Rent escalation
Owners confusing turnover with profit
Lifestyle businesses with weak financial controls
Important nuance
Many hospitality businesses don’t technically “fail” — they:
Sell cheaply
Close quietly
Change owners
Rebrand
So the true financial failure rate is likely even higher than official statistics.
A number many owners don't realise
Average net profit margin for cafés/restaurants in Australia:
3–8% net profit
Which means if a café does:
$1,000,000 turnover
Typical real profit might only be $30k–$80k
This is one of the biggest reasons closures happen.
“Around 60% of cafés and restaurants in Australia close within 3 years — not because of lack of customers, but because owners confuse turnover with profit.”
If you still want to buy or start a Cafe, seeking the right advice on how to make a profit, may be the difference of saving your business and your house!