How much could you expect to earn from an average cafe?

Discussion in 'General Business Forum' started by 3Mason, Feb 9, 2012.

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  1. 3Mason

    3Mason UKBF Newcomer Free Member

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    assume the rates are £3,000

    the rent £13,500

    a footfall of say 1000 people per day,

    a school nearby with 350 kids,
    which obviously leaves 3 months without them and their parents cash!!

    assuming the initial outlay was covered, what would be a reasonable figure for revenue and why?
     
    Posted: Feb 9, 2012 By: 3Mason Member since: Sep 8, 2010
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  2. kulture

    kulture UKBF Legend Staff Member

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    How long is a piece of string?

    It is impossible to answer your question.

    For a start why would any parent go to a cafe. They drop kids off and go. Why would kids go to a cafe, they tend to go to sweet shops. The 1000 people footfall, who are they and where are they going? 1,000 people footfall in a tourist spot could mean 50% to 100% will use the cafe. Whilst a 1,000 people footfall outside a school could mean a 0% cafe usage.

    Go and do proper research. Try asking some of these 1,000 people if they are looking for a cafe, or if they would use one if it existed there.
     
    Posted: Feb 9, 2012 By: kulture Member since: Aug 11, 2007
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  3. SimplyWebsites

    SimplyWebsites UKBF Newcomer Free Member

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    What kind of school is it? I agree the school kids probably aren't that interested in a cafe. If your thinking about older kids at Lunch Breaks then I don't think kids would want to spend there lunch sitting in a cafe, however if you did take out stuff for cheap prices then you may be on to something.

    Generally school kids go for the cheapest possible so that they can spend the rest of there parents money on sweets and fizzy drinks.

    As a sit down cafe I would actually expect more kids in the holidays than school times (Starbucks)
     
    Last edited: Feb 9, 2012
    Posted: Feb 9, 2012 By: SimplyWebsites Member since: Nov 26, 2011
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  4. 3Mason

    3Mason UKBF Newcomer Free Member

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    i know your trying to be helpful but jeez ive done research:

    A) I didnt say parents will use the cafe, some might, what i meant is its their money in the kids pockets.

    B) 1,000 footfall average past the door of the cafe location, as in there could be more than that, there is a builders yard and the people there would be shopping in the local shops, Iceland, Co-op etc...

    C) Kids ONLY go to sweet shops? what a weird view of the world, kids eat at lunch too you know, the local greggs makes money from them after all

    D) I was looking for a rough estimate based on a bare minimum assumption of usage, i didnt ask or provide info. There is a pub, a bookmakers, 5 shops, a bakers, 3 bookmakers, a local chool, local businesses, building sites and residential buildings.

    I am not naive and did the research, what i didnt want was a random answer that anyone could have written, i wanted cafe owners to give estimation and reasons.

    thanks anyway :redface:
     
    Posted: Feb 9, 2012 By: 3Mason Member since: Sep 8, 2010
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  5. 3Mason

    3Mason UKBF Newcomer Free Member

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    its a high school sir,

    we have an upper and lower level, so we want to market as both a nice sit-in cafe without the bustle of schoolkids, problem is they are good for business, so we want an area for walk in, buy, walk out :)
     
    Posted: Feb 9, 2012 By: 3Mason Member since: Sep 8, 2010
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  6. SimplyWebsites

    SimplyWebsites UKBF Newcomer Free Member

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    When I was at college Greggs and Subway were very busy too. But kids were very keen to take food out. However it was quite a walk back so if you are pretty close maybe they would be more keen to sit down.
     
    Posted: Feb 9, 2012 By: SimplyWebsites Member since: Nov 26, 2011
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  7. 3Mason

    3Mason UKBF Newcomer Free Member

    146 32
    the good thing is we are closer to the school but by about 20 yards as the greggs is there not so far after us haha

    that would help i suppose
     
    Posted: Feb 9, 2012 By: 3Mason Member since: Sep 8, 2010
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  8. kulture

    kulture UKBF Legend Staff Member

    7,908 2,152
    How can the answer be anything BUT random without the additional information which you have partly supplied? How can anyone guess more accurately than you, who has seen the location, has seen the type of people going passed, has seen whether they are in a hurry or not, and knows the area.

    How can we know what the typical price of coffee is in the area? How can we know what target of customer you are aiming at. As a simple example, in my small town one cafe charges over £3 for a small cup of coffee, another charges £1.50 for a small cup of coffee. Both coffees are very nice. One cafe is empty, the other is full all the time. Guess which one? Yes the £3 a cup. It makes a fortune. The £1.50 a cup is struggling. There is much more to saying how much money a cafe will make than you have covered.

    Look, any guess you make has got to be better than one we could make here. Even then, with cafes sometimes they work, and get very busy, and sometimes they just don't work. There is no simple answer.
     
    Last edited: Feb 9, 2012
    Posted: Feb 9, 2012 By: kulture Member since: Aug 11, 2007
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  9. SimplyWebsites

    SimplyWebsites UKBF Newcomer Free Member

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    Well you cant eat Greggs everyday!
     
    Posted: Feb 9, 2012 By: SimplyWebsites Member since: Nov 26, 2011
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  10. 3Mason

    3Mason UKBF Newcomer Free Member

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    I know what you mean, i was just looking for a generic rough estimate for the normal above average cafe.

    coffees in the area range from £1.50-£2.00 but they arent anything special, we have completed our menus etc just finishing the build work of the property
     
    Posted: Feb 9, 2012 By: 3Mason Member since: Sep 8, 2010
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  11. 3Mason

    3Mason UKBF Newcomer Free Member

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    very good point indeed sir!!!
     
    Posted: Feb 9, 2012 By: 3Mason Member since: Sep 8, 2010
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  12. SimplyWebsites

    SimplyWebsites UKBF Newcomer Free Member

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    And its very true. Those chicken bakes start to get nasty when you eat too many! (Personal Experience)

    Saying that, right now i'de love one
     
    Last edited: Feb 9, 2012
    Posted: Feb 9, 2012 By: SimplyWebsites Member since: Nov 26, 2011
    #12
  13. Preemo

    Preemo UKBF Regular Free Member

    201 17
    It depends a lot on the area you're in. If there are things like Greggs, Subway, local chip shop etc near the school - it could take away business. So yes, it's impossible to judge how much you could expect.

    I personally used to go to a burger van, just purely because most schools these days don't sell that type of food, so you could be onto something there, especially if you made things like "lunchtime deals", so they can get a burger, a few chips and a small drink for something small like £3. It's about word of mouth to, once one school kid likes your cafe, he'll tell the others and they will want to see the craze, that's when the business could start rolling in.

    All the best :)
     
    Posted: Feb 9, 2012 By: Preemo Member since: Jan 12, 2011
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  14. 3Mason

    3Mason UKBF Newcomer Free Member

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    steak bakes are worse, what that does to the bathroom!! :(
     
    Posted: Feb 9, 2012 By: 3Mason Member since: Sep 8, 2010
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  15. 3Mason

    3Mason UKBF Newcomer Free Member

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    thanks buddy :)
     
    Posted: Feb 9, 2012 By: 3Mason Member since: Sep 8, 2010
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  16. kulture

    kulture UKBF Legend Staff Member

    7,908 2,152
    With cafes it is all about the undefinable. Somehow it has to be in the right location, whatever that is. It has to hit the "spot" and be the place people want to be in, or be seen in. If you can hit that, then price will not be an issue. For kids especially, it is all about peer pressure. If they think it's cool to go to your cafe, then price would never be an issue. If they think your cafe is for old people, then it does not matter how cheap it is, they will never come in.
    I'm sorry I am not positive. I wish you luck. But please, rely on your own judgement based on your own research. No one here can actualy give you better figures.
     
    Posted: Feb 9, 2012 By: kulture Member since: Aug 11, 2007
    #16
  17. SimplyWebsites

    SimplyWebsites UKBF Newcomer Free Member

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    I was thinking similar! Everyone likes deals. Also as I said previously, kids tend to save there money so that they can save there money to buy things like crisps and drinks. Why not have a meal deal which includes these.

    Also there's nothing better than a nice breakfast cob! Sausage, Bacon, Egg, Mushrooms etc!
     
    Posted: Feb 9, 2012 By: SimplyWebsites Member since: Nov 26, 2011
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  18. 3Mason

    3Mason UKBF Newcomer Free Member

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    I know im just so torn about this, its an investment in the local area, and will provide 2 jobs for people in the local area, main motivation is to give something good back at the same time

    thanks K, please don't think i was being anal earlier, :p
     
    Posted: Feb 9, 2012 By: 3Mason Member since: Sep 8, 2010
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  19. kulture

    kulture UKBF Legend Staff Member

    7,908 2,152
    My neighbour is a skateboard shop. It is very popular with the local kids. It is NOT cheap. The amount of money the kids spend on skateboards and the accessories is unbelievable. Kids have money. Perhaps more disposable income than many of us. Depending on the area. So for high school kids, I think it is a dangerous oversimplification to say its about them saving for sweets and crisps.
     
    Posted: Feb 9, 2012 By: kulture Member since: Aug 11, 2007
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  20. SimplyWebsites

    SimplyWebsites UKBF Newcomer Free Member

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    I think kids will spend the minimum on what they need so they have more more to spend on what they want.

    So I guess I was kind of wrong because there is definitely a reason to want a nice breakfast cob or something! Although there are kids that only care about sugar, probably not the majority though.
     
    Posted: Feb 9, 2012 By: SimplyWebsites Member since: Nov 26, 2011
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