Adding matcha to your cafe menu is one of the better margin decisions you can make right now. A matcha latte costs roughly 30-45p to make and sells for £3.50-4.50. That's an 85-90% margin, compared to 70-80% on an espresso-based drink where the coffee alone costs more per shot. The demand is there too. Matcha has moved from a niche health drink to a mainstream menu item, and customers actively look for it.
But a lot of cafes get this wrong. They buy the wrong grade, underdose the powder, don't train staff properly, and end up with a bitter, pale drink that puts customers off matcha entirely. Here's how to do it properly.
The margin opportunity is real
Let's break the numbers down. A matcha latte uses about 2 grams of matcha powder. At a wholesale cost of £40-60 per kilo for a good latte-grade matcha, that's 8-12p of matcha per drink. Add milk (15-20p for dairy, 20-30p for oat), a cup and lid (8-12p), and you're looking at a total cost of around 35-55p per serve.
If you price your matcha latte at £3.80, your margin is roughly 85-88%. An oat milk matcha latte at £4.20 still clears 85%+ even with the more expensive milk. Compare that to a flat white where the espresso shot alone costs 15-25p depending on your beans.
The margin gets even better with matcha-based specials. An iced matcha with vanilla syrup uses the same 2g of powder, costs slightly less (no steam, often served in a cheaper cup), and customers will happily pay the same price. Matcha smoothies and matcha frappes let you charge more while using roughly the same amount of powder.
Which drinks to add first
Start with the matcha latte. Hot and iced. This is the drink 80% of your matcha customers will order, and it's the easiest to train staff on. Get this right before you expand.
Once your team is comfortable, add one or two of these:
- Iced matcha latte (if you didn't launch it alongside the hot version, add it immediately for summer)
- Matcha with oat milk as a distinct menu option, not just a substitution. Oat milk and matcha is a better flavour pairing than cow's milk. Price it slightly higher.
- Matcha lemonade or matcha tonic for a caffeine option that isn't milk-based. These are simple, eye-catching, and have almost no ingredient cost.
Avoid launching with too many matcha variants at once. Your baristas need to make each one consistently before you add complexity. A bad matcha latte does more damage to the category than having a limited selection.
Grade selection matters more than you think
This is where most cafes go wrong. They see "culinary grade" and assume it's the one for commercial kitchens. For baking, yes. For lattes, no.
Culinary matcha is designed to hold flavour when mixed with sugar, butter, and flour. In a latte, where the matcha flavour is front and centre, culinary grade tastes harsh and bitter. It also tends to have a duller colour, which means your latte looks grey-green instead of vibrant green.
You want a latte-grade or premium matcha for drinks. The colour is brighter, the flavour is smoother, and it froths better. Yes, it costs more per kilo. But remember the maths from earlier. The difference between a £30/kg culinary grade and a £50/kg latte grade adds 4p per drink. Four pence. Your customer can't tell you spent less, but they can absolutely tell when the drink tastes bitter and looks dull.
If you want to offer a premium "pure matcha" served with just water, step up to ceremonial grade for that one drink. Keep latte grade for everything milk-based. Having two grades behind the bar covers every use case without overcomplicating things.
Equipment you actually need
Good news: the setup cost is minimal. You don't need a dedicated matcha station or expensive equipment.
A small fine-mesh sieve and a spoon. Sifting matcha before adding liquid is the single most important step. It breaks up clumps and gives you a smooth drink. Skip this and you'll get lumps floating on top. Every time.
A small whisk or milk frother. A traditional bamboo chasen looks beautiful but wears out fast in a busy cafe. An electric milk frother or a small immersion blender works just as well and is faster. Some cafes just add the sifted matcha to a small amount of hot water in the cup, stir vigorously, then pour steamed milk on top. Simple and effective.
A digital scale or a calibrated scoop. Consistency depends on using the same amount of matcha every time. A level half-teaspoon is roughly 1 gram, so two level scoops for a standard latte. But measuring by weight is more reliable than by volume, especially with different brands and grades packing differently.
That's it. No expensive hardware. If you already have a milk steamer for coffee, you have everything you need.
How to price matcha drinks
Price matcha drinks at or slightly above your espresso equivalents. Customers already expect matcha to be a "premium" option and won't blink at paying 20-40p more than a latte. In fact, pricing matcha too cheaply can undermine the perception of quality.
A rough pricing guide for a UK cafe:
- Hot matcha latte: £3.50-4.20 (with dairy milk)
- Oat milk matcha latte: £3.80-4.50
- Iced matcha latte: same as hot, or 20p more
- Matcha lemonade/tonic: £3.50-4.00
- Premium "pure matcha" (ceremonial, water only): £3.00-3.80
Don't offer matcha as a "flavour add" to existing drinks for 50p. That devalues it and leads to inconsistent preparation. Matcha should be its own menu category, even if it's just two or three items.
Customer expectations and how to meet them
Your matcha customers fall into two groups. The first group orders matcha because it's trendy and Instagram-friendly. They want a bright green, slightly sweet latte with oat milk. They're easy to please as long as the colour is right and the drink is smooth.
The second group actually knows matcha. They'll ask about the grade, the origin, and whether you use ceremonial. These customers are your repeat buyers and your word-of-mouth marketers. Impress them and they'll tell everyone. Disappoint them with cheap powder and they'll tell even more people.
Train your staff to know the basics. What grade you use, where it's from, whether it's organic. Two sentences is enough. "We use a Japanese latte-grade matcha from Kagoshima. It's shade-grown for four weeks before harvest." That's it. Most customers won't ask, but the ones who do will remember the answer.
Mistakes that cost cafes money
Using culinary grade for drinks. Already covered this, but it bears repeating. It's the single most common mistake and the easiest to fix.
Underdosing. Using 1 gram instead of 2 grams to save money gives you a watery, pale drink. You save 5p and lose the customer. If anything, err on the generous side. A slightly stronger matcha latte is better than a weak one.
Not sifting. Matcha clumps. Every time, without exception. If your baristas skip the sifting step because they're busy, the drink will have visible lumps. Make sifting non-negotiable in your workflow, or invest in a shaker bottle for quick preparation during rush periods.
Using boiling water. Matcha goes bitter above 80C. If your baristas are pouring boiling water from the coffee machine straight onto the powder, the drink will taste harsh no matter how good the matcha is. Slightly cooled water, or even room-temperature water to dissolve the powder before adding steamed milk, solves this instantly.
Not storing matcha properly. An open tin sitting next to the espresso machine in direct heat and light will degrade within days. Keep your working stock in an opaque, sealed container in a cool spot. Transfer a day's worth at a time rather than leaving the whole bag open.
Browse our wholesale matcha range or explore the matcha wholesale collection if you're ready to start. We supply cafes across the UK with latte-grade and ceremonial matcha, and we're happy to send samples so you can taste the difference before you commit.