rockypath

I had a frd working there as Store Manager..she told me before that 一日埋數有$3000~ Is $3000 very little for Starbucks? I have no clue....
小叻 發表於 2009-3-31 08:47

Honestly speaking, I would suspect that $3000 a day should be the highest sales record of that store but not the daily average sales volume. $3000 a day is already considered very good performance.

Let’s do a math calculation assuming $3,000 sales a day and all expenses to be maxed.  

Monthly income:                90,000
Rent:                        40,000
Wages:                        24,000 (8 people @ $3,000 per person per month)
Food cost                        15,000
Miscellaneous expenses:          5,000
Net income:                  6,000

From the calculation, there is no way they will lose money even given the rent is 40K per month.

rockypath

31# somewhereintime

Your calculation just makes me want to laugh. You made up all the assumptions are just to make it to have a lost. Just give your one example. The interest rate on my family’s business credit card 8%, and the interest rate for overdraw on the business account is 6%. How high an interest rate do you expect us to pay on bank loan? I can tell you, it is much less than 12.5% and it is single digit.

$3,000 per day is a normal sales volume for a Starbucks shop and it is profitable. My point is that I suspect the store at Aberdeen makes much less than $3,000 a day and that is the reason causing it to be closed down.

I would expect the rent in Richmond Center to be higher than the rent in Aberdeen Center. Why people don’t complain about Richmond Center? It is because it can draw high volume of customer flow.

It is not the rent at Aberdeen kills the Starbucks. It is rather the lack of customer flow kills it.

rockypath

We are living in a real world, you would pay 0% interest on your car, 3-5% on a new
house. I have a 250,000 line of credit with 3.5% interest. Try to talk to your bank manager
and request a business l ...
somewhereintime 發表於 2009-4-1 06:36

Do you have any idea what you are talking about?

I can teach you how to defeat my argument.
1)        My argument is - "this store makes significantly less than $3,000 a day and that is the reason it is closed down (this is my educational guess)"
2)        To defeat my argument, you only need to prove that it makes more than $3,000 a day.

rockypath

46# somewhereintime


A No-brainer can tell that I answer directly to the question asked by post #1 ($3,000 a day can not keep the store open?) and you are talking something else in blue.

You have mentioned your "background" so many times on LYK already and you don’t have to repeat it again and again. However, you seem to have difficulties to understand what other people have said and answer the questions directly and make your logic clear.

Just for you benefit, I say it again. My educational guess is – “THIS STORE MAKES LESS THAN $3,000 A DAY”, but not how I make up all the assumptions for the calculation.

In fact, I also want to confirm whether my educational guess is correct or not.

rockypath

Did Aberdeen cafe actually make $300,000 sales in a month? That is $10,000 a day, including the slow days. Assuming each customer spends $20, that means they need to have 500 customers a day.
If they  ...
peter236 發表於 2009-4-1 21:05

You are actually smart this time. I had noticed this but did not bother to question it since I don’t want to the bad guy again.  

How many seats does 7 Heaxxx have? Maybe 50-60? Each single seat must be “turned” 10 times a day. Do you believe it is possible?

How often do we see 7 Heaxxx had a full house? Anyone who has the capability to do simple mathematic calculation will easily realize $300K a month is just a silly joke.

rockypath

58# MSN04


I also call myself as a "consultant". Are you willing to hire me? No need to pay me. A free lunch is what I am asking for.

rockypath

If my memory serve me correct, a new Starbug set up costs US$250,000 on average. This is a 2007 figures.
MyOMy 發表於 2009-4-2 11:55

Do you mind to tell us from where you got this figure? Is there any other figures you can share? I am very interested in knowing.

rockypath

56# peter236
There are more than one way to bring in revenue for business.
Since you're paying  the prime  rent  24/7, why restrict yourself by the square footage/number of seat?   Have you heard a ...
somewhereintime 發表於 2009-4-2 16:24

First, how would a respectful and professional accountant would release the confidential data to an outsider like you? Is it called “respectful” and “professional”?

Second, did 7 Heaxxx managed to double its kitchen? That means they had an efficient operation model which any restaurant operator would dream to achieve. The fixed cost ratio would decrease greatly and they had a much better control on the variable costs. The utilization rate must be high both for its equipments and employees.

Then, you would have a harder time to justify why it could not balance its book for:
1)        Having an efficient operation model – double the facility
2)        $300K per month of income
3)        Paying very little rent (I wouldn’t be surprised if they paid no rent at all, and I believe some people on LYK know this as well)

rockypath

How about let me correct you here.


Monthly income:                1,200 daily average x30 = 36,000
Rent:                        8,300  
Wages:                       278 Staff hours per week * $10 ...
Guy 發表於 2009-4-2 23:27

Thanks for your correction. Is it the real data reflecting the operation of that store?

Regardless of the real numbers of the costs are, my point is – “if it makes $3,000 or more a day, it will be profitable and be able to stay open; my guess is that it cannot make that much and it makes significantly less than $3,000 a day”.

Your calculation is inline with my conclusion (daily income = $1,200) unless you would say the otherwise.

rockypath

Sorry, that is my memory, I have no proof. A couple of years back, a friend of mine planned to open a coffee shop. He showed me his home work, this was part of the figures he had that imprinted my m ...
MyOMy 發表於 2009-4-3 01:35

$250K to setup a small regular coffee shop should be sufficient. But I am not sure whether it is sufficient for setting up a regular Starbucks shop (not a Starbucks in food court) since its equipments are quite expensive especially the fully automatic espresso machine. ~$40K a piece. The cost of renovation (including building, electrical, plumbing, etc) is very high as well.