Coffee Coin-Flip Pricing

A coffee shop concept where customers can flip a coin to either get their coffee for free or pay double the price. The model creates excitement through gambling while maintaining profitable margins due to the low cost of coffee production.

Key Points:

• Core Concept:

  • Instead of traditional tipping options, customers flip a coin
  • Outcome: Either get coffee free or pay double the original price
  • Double payment goes to baristas

• Economics:

  • Coffee only costs shop ~40¢ to make
  • Selling price example: $4 regular, $8 if customer loses flip
  • Asymmetric upside: Low cost risk (40¢) vs high reward potential ($8)

• Gaming Element:

  • Works like a slot machine concept
  • Not actually 50/50 odds
  • Plan to skew odds to 70/30 in house favor
  • Will go to legal limit for gambling odds

• Target Market:

  • People who enjoy caffeine and gambling
  • Creates excitement around daily coffee purchase
  • Adds gaming element to regular coffee shop experience