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 supplies, however, in a chain/franchise business, it is not the case.
You're stripped  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

somewhereintime

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 about off-site catering?
They used to supply all the food to the Hainamese Chicken place at Food court
and other outlets, they double as central kitchen as well.
There are hundred of legal ways to make money in restaurant business. I used to do $5, 000 daily sales  in a small 700 ft  coffee house, some
15 years ago at $20 /ft premises. Speaking of impossible.
I express my humble POV here as an ordinally LYK member,  you do not have to believe me or waste time reading them.
The figure I obtained from a respectable professional  accountant. If anyone want
her to reveal more detail, I can arrange for a meeting, but I cannot  expose more confidential info.
My question to anyone interested in food business:
Why would you ever consider investing  $1,000,000 to start a restaurant  in a prime retail property if you cannot manage to bring in $300,000 revenue a month?
And I can share a real story:
A so called upscale bakery group , according to their  P & L Statement
For every $100 revenue they brought  in, would cost them $142, yes, $142.00,
not for months, it has been going- on for  14 years until they finally sold the business. And they are considered  to be the elite business group in BC

somewhereintime

66# Hyde

Thank you for your advice sir.
Your proposal sounds very challenging, I'd love to watch the match between you and Mr. P
As for myself, I would not want to have anything to do with your buddy Mr. Fung.

somewhereintime

要架. 兩部Espresso Machine 都要四五萬, 仲有啲裝修呀其他equipment 呀計計埋埋都要一百萬.
Caffie 發表於 2009-4-2 16:30

That is the type of answer I'm soliciting.  I know how to negotiate with the suppliers  for the best possible deal on behalf of the client. Starting a Staxxxxxx type of coffee shop would cost $150K-$250K, with matching equipments and  interior/exterior work.
The COGS would be significantly decrease.  The espresso machines are the most expensive equipment in this case, but you can always lease all  the equipments.
The Blenz franchise costs $300K and the Pedro's Organic Coffee House $240K
so the numbers are quite close.

somewhereintime

老奉會開間百佳咖啡- Poxxa 仆×咖啡
日式佢最啱
sheep 發表於 2009-4-2 22:06

Polka Dots?

somewhereintime

62# Littleprince

As I mentioned earlier, it is their marketing strategy to have an  outlet
anywhere you go.  It is American way, might not work in Canada.
I published an article " Why did the mega US  restaurant franchise fail
in Canada" in  Hospitality & Foodservice magazine  back in 1998 with
supporting stats and document.
We have seen the doom of Planet Hollywood, Soft Rock Cafe, Kenny
Roger's, Black Angus...... just to name a few. Local marketing studies
is recommended   if anyone planning to start a food business.
I've read thousands of  P & L statements from open source and found
many bizarre  stories