An important side lesson here is not to take common industry practices at face value. (In this case, it was the conventional wisdom that 'All coffee shops are expected to have baked goods, and they sell baked goods at a loss').

In any business, big or small, tech or otherwise, there are hundreds of strategic and tactical levers we can pull on a daily basis. Many of these levers we don't even realize exist, because we're so used to thinking of them as fixed in place.