Key Assumptions
| Input | Value | Notes |
|---|
| Labor (floor) | $19.18/hr | CA/Berkeley 2026 minimum wage |
| Staff per shift | 2 | Update based on actual volume |
| Avg shift length | 8 hrs | |
| Daily labor cost | $306.88 | 2 × $19.18 × 8 |
| Sales tax | 10.25% | Berkeley, CA |
| Card processing | 2.6% + $0.10 | Square standard rate |
| Delivery commission | ~30% (current) | Target: negotiate to ~15% |
Product Margins
Base gelato (per pop)~$0.65
Stick~$0.05
Wrapper/packaging~$0.08
Total cost~$0.78
86%
Gross Margin
Base sorbetto (per pop)~$0.50
Stick + packaging~$0.13
Total cost~$0.63
85%
Gross Margin
Base (mini)~$0.35
Stick + packaging~$0.10
Total cost~$0.45
87%
Gross Margin
Chocolate couverture~$0.18
Net on dip~$0.57
76%
Gross Margin
Break-Even Analysis
$306.88
Daily Labor Cost
2 staff × 8 hrs × $19.18/hr
~$7.50
Avg Transaction
Mix of pops + dips + toppings
~41
Pops to Break Even
Labor cost only — overhead TBD from Sarab
Daily overhead (rent, utilities, etc.) TBD — get confirmed figures from Sarab before finalizing break-even model.
Delivery Platform Impact
| Platform | Commission | Net per $5.75 Pop | Effective Margin |
|---|
| In-Store |
0% |
$5.75 |
~86% |
| DoorDash / Uber Eats Current |
~30% |
$4.03 |
~58% |
| DoorDash / Uber Eats Target |
~15% |
$4.89 |
~72% |
📋 Action Required: Negotiate delivery platform commissions to ~15% before launch. At 30%, delivery erodes nearly 30 points of margin on every pop.
Notes
- Update all ingredient costs with actual supplier invoices once supply order confirmed — these are estimates only
- Run model monthly for first 3 months — Berkeley volume is unknown; adjust labor schedule to actual demand
- Factor in comps, waste, and spoilage: ~5% buffer recommended on food cost