I would argue that you're underestimating labor costs - your baristas still need to be paid even in between customers, when there's no latte-making to do. At my

I would argue that you're underestimating labor costs - your baristas still need to be paid even in between customers, when there's no latte-making to do. At my work, labor costing is something we don't even try to model, because it's much more complicated than food costing. Food cost at 30-35% of sale price, as it sounds like your latte cost indicates, is pretty much in the sweet spot for food service; it's also nice in that most of the ingredients for coffee keep well enough to minimize food waste. Pastries are more of a challenge to do efficiently.