somewhereintime

Just heard the radio today that Starbucks @ Aberdeen 將會係第一間係加拿大執笠既Starbucks~ 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  ...
小叻 發表於 2009-3-31 07:47

I heard it yesterday.
$3000 sales would be OK at some locations, i.e. Van South, Kingsway Vancouver,
but at high rent properties like Abxxxeen and Robson Street, they have to lose money for sure. There is a property on Robson street, cost $40,000 a month for rent, triple net extra

somewhereintime

21# 小叻


No more frappacino? so sad
MAXIMUS 發表於 2009-3-31 11:59

You sounds like someone

somewhereintime

1# 小叻
Allow me , a no-brainer to do some simple calculation:
Assume Sales:             $90,000 x 12        $1,080,000/yr                     100%
Rent                               30,000 x 12             360,000                         33.4%                  
Payroll+Benefits             24,000 x 12             288,000                         26.7%
COGS                              15,750 x 12             189,000                         17.5%
Overhead                          9,000 x 12             108.000                         10%
Royalty+Advertising          4,500 x 12               54,000                           5%
Professional Fee               1,200 x 12               14,400                           1.4%
Loan payment:
$350,000 x 12.5% x 4 years
                                     $10,937.50x12          131,250                         12,16%


Operating deficit              -5,387.00                -66,528                           -6.16%
It is based on basic speculation on average franchise outlet, generally  the  Cost  Of Goods Sold of franchise chain are higher because the franchisee have no choice but to buy everything from the franchiser or designated suppliers with private label. I did not include utilities, common area shared expenses
and I have lowered the rent expense  by 25%.  12.5% loan interest rate is very low, usually restaurant  business carry  higher interest  so in this case they have to do at least $120,000 monthly sales just to stay in business. I do not know exactly how much it cost to set up a Starxxxxx, just compare with the Blenz's start-up cost

somewhereintime

FYI North American Starbucks are not franchises.
ATGB 發表於 2009-3-31 19:21

I know, that is the reason I used Blenz for comparison, the cost structure
would be very similar.  The mainstream companies use loan to finance business,
12.5% interest per annum for restaurant is considered very low for business loan.
Generally a business plan requires the investment to be recovered  in 3-4 years
period.

somewhereintime

My store's average net sales each day is about $3500. Last Monday it was $3100. Last Saturday was $4000 something. I remember when I used to work at Starbucks at the airport, from opening (5am)-10am n ...
Caffie 發表於 2009-3-31 19:45

$5000 sales a day in Burnaby area is very good. But At Aberxxx or Robson Street would be barely breakeven. Do you have any idea what the COGS(Food Cost)  is?

somewhereintime

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 loan  for restaurant without collateral  and see what happen.
Or try to talk to Mr. Fung to take over the lease with all the chattels included, try to hire
all the staffs at $6.00 training rate and you will make a fortune easily.
A Korean couples spent $350,000 to start a Blenz franchise at BCIT Downtown Campus,
end up walking out of lease after 2 years in business and $100,000 operating deficit. A typical foodcourt space at Abxxxxxx costs $8,000 rent a month so guest how much Starxxxx would have to pay? This explains why the foodcourt always has30-40% vacancy.   Who would think of starting a restaurant without start-up investment and the fund to keep the business going for the first 6 months which would be around $500,000.  For a successful restaurant,  an operator need to achieve 12-15% net profit after all the expenses and loan payment paid, and himself/herself paid too.
The 7 Heaxxx could not manage to balance the book even the monthly sales exceeded $300,000(I got the info from their accountant).
Everyone could be a restaurant consultant, even he know nothing about the nature of business.

somewhereintime

45# rockypath

I  have no desire to argue, just read Caffie's post #34 you would know what is the average  daily sales for a not-so-busy outlet.
Properties command high rent because they assume the tentants would generate higher  sales  in ratio to the traffic.
My last post was  answer to post#1, did you notice that I do not usually reply to
yours, Mr. T & Mr. P 's post, this is a rare exception.
Since when a legitimate business start-up do not involve  investment, loan interest, opex and utilities, those components were  not mention in your  "educational " statement. I just gave some No-brainer's thought as I put in the very beginning. I made a lowly  local Wonton House come up with $300,000  monthly cash sales for decade  back in 90's and have been performing consultation services to large foodservice groups as well as teaching the topic. I would know a thing or two about restaurant business.

somewhereintime

how to open a starbuck? how much? $200,000?
毅字 發表於 2009-4-1 10:11

As someone posted on #32, Starxxxx in North America are not franchise, they are
chain shops and their strategy is  public exposure, you will see 1 on every major street. Therefore they establish some locations even it is not feasible, e.g. on West Georgia where the rent is prime and no evening and weekend business.
Their location in Italian community on Commercial is a disaster in term of business, but again for the sake of exposure, they need one outlet there.
Back to your question, you cannot open a Starxxxx other than buying their stocks.
But if you want to start a upscale coffee shop, it would cost you anywhere from $100,000 to $250,000. BTW, the Fed has a program BIL(Small Business Improvement Loan) up to $250,000 available to Canadian, you just have to come up with 25% of the actual investment and a viable business plan. Go talk to your bank. Good Luck.

somewhereintime

More like it would cost a million bucks.. but yeah, no franchise.
Caffie 發表於 2009-4-1 16:34

So how's the foodcost %  like?  In term of food, not beverage.

somewhereintime

a 52# somewhereintime

Why you keep asking?
I thought a consultant like you should have a pretty good idea already.
b/c even outsider like me who is not even in the business know the food cost at star ...
MSN04 發表於 2009-4-2 09:39

What  I have on hand is what the reasonable market value of the supply, however, in a chain/franchise business, it is not the case.
You're strip off the freedom for shopping around for the best deal but to deal with the
designated suppliers, everything is written on the contract.
My younger brother had worked as a manager  at  Donxxx for 20 years, the price they pay for inventory is about 20-30% higher than the commercial suppliers. No matter how big the volume is. For example: a case of Sugar envelope from Sysco, the Roger's  Brand was $14 but the same thing with Mc Doxxxx private label cost $18. Same thing happen to the sanitation supplies from Ecolab.
I've never work for Starxxxx just curious how much the outlet pays for the inventory