Model basis:
- 10 worker-owners, all full-time
- Living wage target in Portland: $45K–$60K/year per worker
- All workers are owners and share profits
- All surplus is reinvested first in maintenance/upgrades, then redistributed
📊 Shared Assumptions:
| Parameter | Value |
|---|
| Staff | 10 worker-owners |
| Hours | 40/week |
| Open days | 360/year (closed 5 holidays) |
| Revenue mix | 80% food/beverage, 20% event/retail |
| HAO Network Fee (mature) | 10% |
| Reserve Contribution | 5% (equipment, repairs) |
| Profit redistribution | After infra + reserve |
📉 Model A: Modest Success (Surviving, Not Thriving)
| Category | Amount |
|---|
| Gross Revenue | $750,000 |
| COGS (food, drink) | $180,000 (24%) |
| Operating Expenses | $375,000 (50%) |
| HAO Contribution (10%) | $75,000 |
| Reserves (5%) | $37,500 |
| Net Available for Distribution | $82,500 |
| Per Worker Take-Home (Annual) | ~$53,250 ($45K salary + $8.25K surplus) |
Summary: The café pays Portland’s living wage baseline. Slight buffer for emergencies. Surplus is modest, but morale and retention may depend on shared values and stability, not just cash.
⚖️ Model B: Stable Local Favorite
| Category | Amount |
|---|
| Gross Revenue | $1,050,000 |
| COGS | $250,000 |
| Operating Expenses | $450,000 |
| HAO Contribution (10%) | $105,000 |
| Reserves (5%) | $52,500 |
| Net Available for Distribution | $192,500 |
| Per Worker Take-Home (Annual) | ~$64,250 ($52K salary + $12.25K surplus) |
Summary: Sustainable and slightly competitive wages. Budget for better equipment or a training program. Can support better retention and social programs (e.g. shared child care).
| Category | Amount |
|---|
| Gross Revenue | $1,400,000 |
| COGS | $300,000 |
| Operating Expenses | $500,000 |
| HAO Contribution (10%) | $140,000 |
| Reserves (5%) | $70,000 |
| Net Available for Distribution | $390,000 |
| Per Worker Take-Home (Annual) | ~$84,000 ($60K salary + $24K surplus) |
Summary: Above-average wages in Portland foodservice. Room for margin smoothing, community investment, rotating leadership stipends, or even rotating sabbaticals. Becomes a destination workplace.
🧠 Notes on Realism & Strategy:
- Portland café revenue per square foot averages $300–$600/year, so these models assume ~1,500–2,000 sq ft of well-utilized space with seating and some retail
- Seasonal income variation assumed smoothed by SEP partnerships: e.g., pop-ups, catering, or evening events
- All models maintain worker equity growth through retained earnings and reinvestment into tools, spaces, and professional development
- All models preserve HAO contributions, which help fund network-wide support, training, and emergency buffers