Analyzing the Economic Impact of Ingredient Costs and Efficiency Ratios on Small-Business Coffee Sustainability in Battambang, Cambodia

Siek Darith, Lay Kimley, Lim Kim Eav, Pou Sanith, Yun Chihouy, Tha Bunhak, Siek Sourphimean

Ministry of Labour and Vocational Training (Cambodia), Build Bright University (Cambodia), Dewey International University (Cambodia), Siek Sour Business Company (Company)

This research explores how ingredient costs and efficiency ratios affect the sustainability of small coffee businesses in Battambang, Cambodia. By examining ingredient usage patterns, cost impacts, and economic efficiency, the study aims to find strategies to improve financial sustainability. Data were gathered from 80 coffee shop owners through surveys and interviews. Regression analysis was used to investigate the relationship between various cost factors and coffee income. The results show that ingredient costs, equipment costs, and operational expenses significantly affect coffee income. Costs for coffee beans, ice, plastic items, and straws positively impact income, while the cost of ice buckets has a negative effect. Additionally, the price of coffee sold is crucial for revenue generation. The study concludes that by optimizing ingredient use, managing costs efficiently, and implementing strategic pricing, small coffee businesses in Battambang can improve their financial sustainability and support the local economy.

Article link: https://www.asianinstituteofresearch.org/JEBarchives/analyzing-the-economic-impact-of-ingredient-costs-and-efficiency-ratios-on-small-business-coffee-sustainability-in-battambang%2C-cambodia