peter236

Don't you know ..  there is only one country in the world ? it is CHINA ..

Don't you know .. Canada is only part of China ??


According to PETER ..  LOL
Catpiano 發表於 2009-3-31 21:47

Please do not talk rubbish.

peter236

題外話：

在中國建立中國自己品牌的高级咖啡室？

咪講笑喇！在當大部分人仲隨地放飛劍，隨處踎；隨時開口得罪人的國度裡。

即使衣著再光鲜口袋裡鈔票再多也不過是暴發户而已！

根本談不上「品味」二字呀！同志！ ...
老友四號 發表於 2009-3-31 21:42

Please STFU, okay?

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.

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.

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.

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.

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.

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.