Coffee margins, casual-heavy weekend rosters, card fees and the ATO's interest in cash. We look after the numbers behind a busy café so you can stay on the machine.
Typical cost of sales for coffee shops, depending on turnover
ATO benchmarks, 2023–24 dataSurcharges on eftpos, Mastercard and Visa cards removed
Reserve Bank of AustraliaHobart food outlets, including cafés, found non-compliant in Fair Work inspections
Fair Work Ombudsman, Aug 2026These are the problems that show up most often in café books. Each one is backed by a government source or reputable reporting.
Green coffee prices hit a 50-year high in early 2025. Customers are feeling price rises too: meals out and takeaway food rose 3.9% in the year to September 2026, which makes every menu price change harder.
Source: ABC News, Feb 2025, ABS CPI, Sep 2026
Coffee shops typically spend 33% to 42% of turnover on cost of sales, and total expenses average 79% to 89% depending on size. A few cents on each cup decides whether the week makes money.
Source: ATO small business benchmarks
Cafés trade hardest on weekends and public holidays, when higher rates apply. "Employees get paid a higher pay rate when they work evenings, weekends or public holidays."
Source: Fair Work Ombudsman
From 1 October 2026 merchants cannot surcharge eftpos, Mastercard or Visa payments. The Reserve Bank says those costs "can be reflected in a business's overall pricing".
Source: RBA
The ATO says hospitality accounted for over 2,500 tip-offs, with cafés and restaurants among the most reported, and made surprise visits to Melbourne cafés in September 2026.
Source: ATO media release, 24 Sep 2026
In Hobart, 22 of 28 food businesses inspected, including cafés, were non-compliant. Most underpaid base rates or penalty rates, and $129,674 was recovered for 180 workers.
Source: Fair Work Ombudsman, 4 Aug 2026
Add 50c to an average spend of $6 and the price rises 8.3%. Our price rise calculator shows how many cups you could sell less and still be ahead.
The rules that apply to almost every café with staff. We handle the accounting, payroll and tax items, and point you to the right place for the rest.
| Obligation | What it means for you | Who regulates it | How we help | Source |
|---|---|---|---|---|
| Award coverage | A dine-in café is usually under the Restaurant Award, a mostly takeaway café under the Fast Food Award, and a hotel or resort café under the Hospitality Award. | Fair Work Ombudsman | We help We check which award applies and set payroll up to match. | FWO |
| Penalty rates and casuals | Higher rates apply for evenings, weekends and public holidays. Since 26 August 2024 an employee is only casual if there is no firm advance commitment to ongoing work. | Fair Work Ombudsman | We help We configure penalty rates and review casual arrangements. | FWO |
| Pay slips and records | Give a pay slip within one working day of payday and keep employee records for 7 years. | Fair Work Ombudsman | We help Our payroll produces compliant pay slips and keeps the records. | FWO |
| Underpayment can be a crime | Since 1 January 2025 intentional underpayment can be a criminal offence. Honest mistakes are not included. | Fair Work Ombudsman | We help We review pay rates so mistakes are caught early. | FWO |
| Single Touch Payroll | Report each pay run on or before payday, including qualifying earnings and super liability from 1 July 2026. | ATO | We help We lodge STP with every pay run. | ATO |
| Payday Super | Super must reach each employee's fund within 7 business days after payday. | ATO | We help We pay super with each pay run and check it arrives. | ATO |
| GST on food and drinks | Food and drinks consumed on the premises and hot takeaway food and drinks are taxable. Some cold takeaway food can be GST-free. | ATO | We help We check your POS GST codes and lodge your BAS. | ATO |
| Cash sales and ATO benchmarks | Report all cash sales and pay cash wages through payroll. The ATO compares coffee shops with industry benchmarks. | ATO | We help Daily till reconciliations and a benchmark check before lodging. | ATO |
| No card surcharges | Since 1 October 2026, no surcharges on eftpos, Mastercard or Visa card payments. | Reserve Bank of Australia | We help We model merchant fees into your menu pricing. | RBA |
| Weekend and public holiday surcharges | If you charge one, your menu must say "A surcharge of [percentage] applies on [day or days]", as prominently as your most prominent price. | ACCC | Outside our services Menu wording is a consumer law question for the ACCC or a lawyer. | ACCC |
| Food Safety Supervisor (NSW) | Cafés need a certified Food Safety Supervisor and must meet food safety management requirements. | NSW Food Authority | Outside our services We can point you to the NSW Food Authority guidance. | NSW Food Authority |
| Workers compensation (NSW) | It is compulsory for NSW employers unless they are an exempt employer. | icare NSW | Outside our services We provide the wage figures for your declaration. | icare |
Checked against the linked government pages on 28 October 2026. General information only, not advice for your situation.
Cost of sales against the ATO coffee-shop range, every month, with supplier price changes flagged.
Cash flow and cost control →The right award for your café, weekend and public holiday rates set up properly, and casuals reviewed.
Payroll and awards →Super paid with every pay run and checked against the 7-business-day deadline.
Payroll and awards →Dine-in and takeaway GST coded correctly in your POS, and your BAS lodged on time.
BAS, GST and tax →Daily takings matched to card settlements and cash banked, so your books stand up to scrutiny.
Bookkeeping →Sales, wages %, cost of sales and cash on one page each week.
Dashboards →How many cups could you sell less after a price rise and still be better off?
Open the calculator →Check the real food cost on your toasties, bowls and cakes, worked out ex GST.
Open the calculator →See what Saturday and Sunday shifts do to your labour %.
Open the calculator →Fair Work says the Restaurant Award "covers cafés that mainly prepare and sell food and drinks for customers to consume on the premises". If customers mostly take away, the Fast Food Award usually applies, and cafés run by hotels or resorts fall under the Hospitality Award.
Source: Fair Work Ombudsman, Award coverage for cafés (checked 28 October 2026).
The ATO lists "all takeaway hot food and beverages" as taxable, and food and drinks consumed on the premises are taxable too. Some cold takeaway food can be GST-free, so it is worth checking how each item is coded in your POS.
Source: ATO, Taxable food (last updated 26 February 2026).
Not on eftpos, Mastercard or Visa cards. The Reserve Bank removed surcharging on debit, prepaid and credit cards on those networks, with most changes in effect from 1 October 2026.
Source: Reserve Bank of Australia, media release 2026-10 (last updated 31 March 2026).
In NSW, retail food businesses that prepare and serve ready-to-eat, potentially hazardous food that is not sold in its original package, such as cafés, need a certified food safety supervisor. The NSW Food Authority says certificates expire 5 years from the date of issue.
Source: NSW Food Authority, Food safety supervisor guide for businesses (checked 28 October 2026).
Answers checked against the linked government pages on 28 October 2026. General information only, not advice for your situation.
Start with a short call about your coffee margin, your rosters and what to fix first.
