Rental so high not due to market price but due to goreng2

The more people goreng the higher rental and property prices are. People with money will make more $, poor guys like most of us will only complain and continue to rent while making them richer.

You never know. Some of the guys here launch big big business venture just so that they can get big big bank loan. After load approve they also cabut!

But ya rental is crazy now especially in major retail complexes.

Accepted banks are not stupid but are you saying that banks have not been coned into approving loans before? People giving securities which are not as valuable as what its valued to be during loan application?

Fact of the matter is....... Sorry this post is about rental and GYM business and I was just sharing my theories only la

Ya I also mean now la. Still happens la, depends on what level you are in your bank. News from my contacts HQ level, branches still approve AWOL loans la (yes even with the current checks and balances because humans are involve).

I think if you have a sound business model for your GYM business rental should not be a problem. Example is the gym in Mid Valley (California if not mistaken). Been there for ages and I think the rental there is about there (market rate).

Rental is unimaginable la, take for an example, restaurant in in Pavilion, rental for about 5000sqf aprox 180k (might be higher now), they have survived since the early days of the complex. Margins and cost I would say GYM is better than a restaurant ya.

edit: typo

This post has been edited by slimfox: Apr 14 2014, 12:35 AM

Actually if you look at business as a whole GYM is just one time investment for your equipment and renovation, which is about the same for a restaurant with different cost. I would think a GYM will require more initial investment due to the equipments required (but then who buys now a days when you could lease right?). Then day to day operation a restaurant will have cost, a GYM would not have food cost nor wastage cost. A GYM is just pure marketing and sales meaning if you can sell many many membership packages you will have good profit.

Nah I would have to disagree with you when you say restaurant is more profitable. With the correct marketing plan GYM business has a bigger potential for profit.

I would have to say you need to do more research on businesses.

Mind sharing which bank you working for?

Firstly how close are you to Secret Recipe? Are you so close till you know their account books or your knowledge is just base on hear say (gossip)? (maybe the info is from your bank since you work in one )

As an earlier forum member mention, gym's can have a very extensive membership base cause not all members will be there every hour, everyday. That means you can sell and sell your membership and mind you the membership is charged every month for a fix contract duration usually minimum 1 year. So if the gym capacity is say 50 members at any one time you could have a membership of more than 100 time of your maximum capacity (not sure maybe as high as 500times? anyone care to share).

Restaurant is very different cause you have a fix sitting capacity and basically how many times can you turn your sitting capacity during each meal time (ie lunch, dinner). Projection of turnover is calculated on how much your targeted charge per head based on your menu items. So like the one in Pavilion we target about rm80 (dinner, for lunch is much less than that) per head therefor for 10 pax (1table) the average bill should be about rm800 with some tables doing less and some doing more but then there is still a maximum (no of pax) that you can actually do per day. Also do mind if you do a breakdown of occupancy vs hours in a business day you will find a restaurant is mostly empty most of the day except during meal times. We are talking about restaurant not cafes here. I would classify Secret Recipe more of a cafe with dining facilities oppose to a proper formal dining restaurant.

We only make money if you customers walk in and makan, restaurant don't make money if no body eats anything whereas a gym is still making money when nobody is there cause membership is already paid for the whole month/year and whether you go or not it doesn't really matter, see the big difference?

I'm not sure if you get me or not or you just want to win your point that a restaurant is more profitable than a gym... if so I would gracefully let you win cause you have not been able to present any sound logic as to why my point is wrong. What you have done is take one example and use it as a yard stick and generalize the whole industry as such, which to me is wrong and frankly very shallow.

Some restaurant/cafe's are very profitable (yes) but most are just breaking even or even losing money. Gyms like fitness first have made tons and I do mean tons of money for just one franchise. I too would like to add that I'm sure there are lots of small gyms that are trying very hard to turn a buck. I would say the same is true for most business.

Guys there is no such thing as a golden goose business, get what I mean?

BTW you still have not mention which bank you attached with?

Bro I already made it quite clear in my earlier post. It was an explanation at about form 5 level.

Let him win la, even conman need to have his day ma. Plus he win but did not learn anything so it might just keep him at his level. I just love a man who when already cornered is still trying to explain his way out of it.

I would also like to tell you that he initially said no bank will give a loan to a new enterprise (his so expert opinion) then just to contradict himself in his statement below. I started all this just to find out which bank/branch he is attached to, would love to see what good deals I can get from him