£1 Cafe

[David1962]

I'm more intrigued than writing it off.

They also have the "hugely successful Poundbakery, which has opened 60 stores in the north west in two years" so they're not complete novices.

To give further food for thought (pun intended), their last filed accounts show:
£1,037,000 cash balance
£5,596,000 current liabilities
£3,327,000 current assets

There's the answere then, no it's not profitable. Suggests there is a longer business plan which is probably similar to Tesco, get rid of the competition then inflate prices.

 

[groovyjon]

They have debt, but that doesn't necessarily mean they're not profitable.

 

[Subbynet]

There's the answere then, no it's not profitable. Suggests there is a longer business plan which is probably similar to Tesco, get rid of the competition then inflate prices.

How did you come to that conclusion based on those numbers?

They have cash and assets on hand which offset a large percentage of their liabilities and have recently opened 60 stores - plus offices no doubt, and probably a central processing unit somewhere, much in the same way Greggs operates.

It looks to me like it could be very profitable once all the stores are up to speed.

 

[Scott-Copywriter]

There's the answere then, no it's not profitable. Suggests there is a longer business plan which is probably similar to Tesco, get rid of the competition then inflate prices.

As Groovyjon said, it doesn't mean that they're unprofitable.

£5.5million across 60 stores is only £91,000 per store, which seems like a reasonable cost for up-front expenses and fitting out each shop.

Plus, this is only over 2 years. It's normal for many businesses to have 5 or more year business plans where liabilities are reduced over time.

 

[businessfunding]

https://www.duedil.com/company/06601656/stb-holdings-limited/financials


£121K Pre-tax profit - though I don't think profit is top of the agenda at this point

Interestingly they have also attempted to register 99p bakery.

 

[Jeff FV]

You would be surprised how cheap you can get food for if you know the right sources.

The A28 and the A2? Lots of fresh roadkill to be had there.

 

[ChrisBackman]

I completely agree and love the concept of this, however you need to consider the level of quality in the food served at these places, might not be the best choice as people are becoming more aware of what they eat and drink.

 

[Chris Ashdown]

Agree with above buying in bulkyou would get the food a lot cheaper than the cheapest supermarket or standard cash and carry prices

Gardian on prison food July 2012 Quote

"The report goes on to estimate an average expenditure on food of £1.87 per day per man."

Independant last Oct quote

"Dozens of hospitals trusts across the country are spending less than £5 a day on providing three meals for their patients, according to official statistics.

Figures, released by the Department of Health yesterday, showed some hospitals spending more than £15 on food per patient while others were working off budgets of less than a third of that.

The lowest spending hospital in the country appeared to be Newham University Hospital Trust which submitted figures of just £2.19 for feeding its patients a day – 1p less than the average cost of feeding a prisoner – while Gateshead NHS trust spent £2.94."

 

[Deleted member 140422]

Good luck to them.

Very difficult to build successful bricks and mortar biz in Kirby.

Made an excellent start, 300 customers in first 2 hours.

Breakfast and cup of tea would per person would probably give them £1 per head gp = £150 per hour plus £10,000+ of free publicity

If there sole traders probably a couple therefore no staff costs.
Would be entitled to grants etc

 

[vvaannmmaann]

When I was a lad you got one of these,two mugs of very sweet tea and a ride on the tram for sixpence.

 

[groovyjon]

Did the tram take you to A&E?

 

[Berkshire Business]

I think a £1 cafe is a good idea, although I agree with what's been said previously about making enough profit and ensuring you get the customers you want. If you can be certain you'll make a profit with the idea, and its good one then I don't see any problems in starting up. Good luck

 

[BizGurl]

When I was a lad you got one of these,two mugs of very sweet tea and a ride on the tram for sixpence.

Tbh if you used to eat/drink like that a lot I'm surprised you're still here.

It's made me hungry, so I think I'll go make myself a fry up now

 

[vvaannmmaann]

"It's made me hungry, so I think I'll go make myself a fry up now "

My work here is done.

 

[Vectis]

"It's made me hungry, so I think I'll go make myself a fry up now "

My work here is done.

That'll be £1 please. Unless you want toast, and a plate and a knife and fork, which are extra.....

 

[fisicx]

That'll be £1 please. Unless you want toast, and a plate and a knife and fork, which are extra.....

And meat in your sausage.

Or as CMOT Dibbler says:
Meat 3p
Named Meat: 6p

 

Why do me sausage's keep jumping over me eggs.

 

[beasty]

I would not do a quid


Breakfast and a bus for a fiver

you have 5 quid you get your meal, change covers bus fare, I am assuming a busfare is 1 to 3 quid max..

 

[10032012]

Anyone know the proportion of revenue and profits between bakery and cafe? £1 price point for many bakery items is a bit steep especially up north... seems they are offsetting between the two, although its achievable to provide such fry up for that cost... frozen bangers imported in wholesale etc. is really cheap.

The issue is how many full price cafes etc. are using similar ingredients for that high mark up price? I am sure supermarket cafes do exactly that. The issue now is despite the recession, more people want organic and locally sourced produce.

A single dodgy batch of eggs or sausages from the EU etc. would destroy the business - so would the economy trends... once we get out of recession finally, say in 5 years, people will move up from the very cheap meals to affordable half-decent ones.

The horsemeat scandal for example is starting to discredit the concept of very cheap frozen ready meals. Those who can afford it might not get premium food lines, but use the one up from economy. Despite obesity many people are more concerned about their health. i.e. Will continue to eat sausages but not "bangers" etc. and ensure beef burgers have a good percentage of beef, and not processed chicken etc. filling the rest up.

 

[Talay]

I don't think trading on the coattails of Poundland and the 99p Stores is a bad idea as the population has shown great buy in into these ideas, even when they offer nothing like value or quality across their product range.

Sell anything for a quid and you have a market, no matter how crap it is.

 

[10032012]

I don't think trading on the coattails of Poundland and the 99p Stores is a bad idea as the population has shown great buy in into these ideas, even when they offer nothing like value or quality across their product range.

Sell anything for a quid and you have a market, no matter how crap it is.

Indeed, and these "single price point" retailers make a mint.

Go into poundland or 99p stores, you will find 3 categories...

1) actually good value to consumer, small mark up for retailer
2) good value for consumer, although retailer has good margins (other retailers sell the item at RRP far above - low wholesale cost)
3) actually... thats a 60-80p product you can buy elsewhere on the high street

many who buy at these places consolidate any savings with other items not of any value

 

[Moneyman]

There is one flaw and it is a biggie. a £1 cup of tea or coffee is great and yes one could make it work as a takeaway. but the real problem is the people who sit at a table for an hour over one cup. poundland etc make their money with a high turnover. Cafes and restaurants have a fixed possible turnover of customers. Unless you can get the reduced margin= increased turnover sum to add up you are doomed.

 

[Chris34]

There is one flaw and it is a biggie. a £1 cup of tea or coffee is great and yes one could make it work as a takeaway. but the real problem is the people who sit at a table for an hour over one cup. poundland etc make their money with a high turnover. Cafes and restaurants have a fixed possible turnover of customers. Unless you can get the reduced margin= increased turnover sum to add up you are doomed.

That's why you have to have special chair designed that are uncomfortable to sit on for longer than 20 minutes.

I did a business course at college years ago :redface: and we were taught that places like Macdonalds design the outside of the restaurants to look inviting and lots of glass so you can see inside. Then on the inside they design the seating areas to look really nice with nice lighting, colour schemes etc. But they also design it so when you sit down to eat your meal you feel uncomfortable due to the open plan, noisy surroundings. They do this to make you eat faster and to leave immediately once you have finished eating. All very clever.



Chris.

 

[Talay]

There is one flaw and it is a biggie. a £1 cup of tea or coffee is great and yes one could make it work as a takeaway. but the real problem is the people who sit at a table for an hour over one cup. poundland etc make their money with a high turnover. Cafes and restaurants have a fixed possible turnover of customers. Unless you can get the reduced margin= increased turnover sum to add up you are doomed.

The example I quoted earlier used very effective waitresses who nudged customers along; "another cup of tea", "would you like anything else" and clearing away the plates as fast as possible.

Without the above, your scenario would manifest to destroy any chance of profitability.

 

[Talay]

That's why you have to have special chair designed that are uncomfortable to sit on for longer than 20 minutes.

I did a business course at college years ago :redface: and we were taught that places like Macdonalds design the outside of the restaurants to look inviting and lots of glass so you can see inside. Then on the inside they design the seating areas to look really nice with nice lighting, colour schemes etc. But they also design it so when you sit down to eat your meal you feel uncomfortable due to the open plan, noisy surroundings. They do this to make you eat faster and to leave immediately once you have finished eating. All very clever.



Chris.

Without thinking through the science, what you describe is exactly the way I feel in one of the burger places.

 

[Business Mapper]

At least pound land is scalable, can't see this is more than a gimmick

 

At least pound land is scalable, can't see this is more than a gimmick

So are most of Apple ,Dyson and a multitude of products.