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 What's the profit margin of cafe in KL?

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la bella
post Nov 4 2022, 10:21 AM

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for a restaurant business

profit from foods is not high

they make the highest earning from drinks
viktorherald
post Nov 4 2022, 10:21 AM

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QUOTE(J1g54w @ Nov 4 2022, 10:13 AM)
thing is people go to fancy cafe not purely for the food.

people want to see and be seen in their fancy outfit. also instagram.

people spend who spend above what is necessary (base cost) is because they spend for emotional satisfaction
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Things is the fancy photo, sometime I look at the food so many processed ingredients also turn off for me.
viktorherald
post Nov 4 2022, 10:23 AM

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QUOTE(cycheah @ Nov 4 2022, 10:12 AM)
these are the stuffs i pantang eat for english breakfast. hashbrown homemade ok la, if buy from frozen store, no la... felt being chop. i buy 9pcs @ RM1x, air fry it, makan till syok
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Yup... If I'm gonna pay big money like RM30, at least give some passion and not use too much canned or frozen items...

If not I just eat RM22 sourdough avocado...

Tommy le baker selling nice sandwiches for RM18++... That gooding place to go for me
wong_86
post Nov 4 2022, 10:26 AM

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QUOTE(Drian @ Nov 4 2022, 09:57 AM)
A lot of /k seem to think profit margin is:-

Selling Price/Ingredients cost.

I've been seeing a lot of post such as , I make myself big breakfast only cost rm10, outside selling rm30.
Roti canai cost is only rm0.30 worth of flour, but selling rm1.20
They don't seem to understand the cost structure and don't really understand overhead such as rental, labour makes up a big chunk of the cost.
*
i think /k no heard what is profit and loss, i don't know F/B margin is how much, let say is around 50-60 %, but after minus overhead cost( include asset depreciation), net profit only 5-10%, really kek... buat macam anjing baru dapat peanut.
marvinben
post Nov 4 2022, 10:43 AM

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QUOTE(New Klang @ Nov 4 2022, 09:28 AM)
The profit margin of a cafe in the US is between 80-100% according to some of the Google search results.

What's the figure in KL?

As I only drink kopi-o made at home, my  price is 25 sen for coffee powder and boiled water.

What's your costs?
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Sendiri made espresso latte cost around rm3-rm4 in raw material.
Can go as low as rm2 if you go for cheap robusta bean.


Juggerballz
post Nov 4 2022, 10:52 AM

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QUOTE(silverhawk @ Nov 4 2022, 09:37 AM)
That is only possible if you only count ingredient costs

As a business operation as a whole, it won't be so high. Should be anywhere between 10-30%. Which is the typical margin for F&B

Just remember a simple fact, if margin is really high, its easy for a competitor to undercut you.
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Don't understand the logic behind RM12 for a cup of Americano.

The cafe plague (charging RM30-40 for a dish of english breakfast) needs to stop.

This post has been edited by Juggerballz: Nov 4 2022, 10:53 AM
SUSMr Mercedes
post Nov 4 2022, 10:59 AM

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It's Ok-ish I guess.

I have dealings with some small time cafe owners in rather strategic locations (Bangsar, Kuchai Lama, Pucheong, Uptown, SS15) and based on accounts that I have access to, I observe that most have an average RM4000+ monthly net profit. It's not that much really.

However, I'm sure those really good or reputable ones will be raking in moarrrr.

This post has been edited by Mr Mercedes: Nov 4 2022, 11:00 AM
azomic
post Nov 4 2022, 11:02 AM

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jgn lupa kos wang perlindungan dekat gangster kawasan. 1-5% at least
0168257061
post Nov 4 2022, 11:02 AM

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33% after deducted everything.
0168257061
post Nov 4 2022, 11:05 AM

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QUOTE(Juggerballz @ Nov 4 2022, 10:52 AM)
Don't understand the logic behind RM12 for a cup of Americano.

The cafe plague (charging RM30-40 for a dish of english breakfast) needs to stop.
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You try to come out with your own costing then you know d. Imported Machinery. Imported Beans. Maintenance. Overhead costs. You sure can sell RM5 per cup. Can you even sustain? Kek.


Ashadiya
post Nov 4 2022, 11:06 AM

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QUOTE(Aaron212 @ Nov 4 2022, 09:41 AM)
Highest cost is rental
Second is staff wages

Thats why can charge RM48 for full English breakfast and RM 15 for tea
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Don't forget electricity n water, those commercial rates are killers
bill11
post Nov 4 2022, 11:07 AM

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Banker told me , the easiest way to burn your money is open a cafe.
jasonlts
post Nov 4 2022, 11:21 AM

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Just a bit what I learned from one of the owner who recently closed down his cafe.

According to him, its been tiring few years for him coz there's so many competitors nowadays and he has had to move his cafe location a few times due to various reasons e.g. covid, gangster.

in the end now, he said better go back to corporate life and that's what he did.
kelvinlym
post Nov 4 2022, 11:25 AM

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It currently costs about RM1.80 per cup of high grade coffee. Source: cafe owner.
SUSCincai lar
post Nov 4 2022, 11:28 AM

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QUOTE(Aaron212 @ Nov 4 2022, 09:41 AM)
Highest cost is rental
Second is staff wages

Thats why can charge RM48 for full English breakfast and RM 15 for tea
*
overhead leh ??.. u need overhead cost for operation,..

u also need to project how many cups u gonna sell daily,.. if 100 cups per day rm5 profits, rm500 / day can cover cost,..

This post has been edited by Cincai lar: Nov 4 2022, 11:31 AM
J1g54w
post Nov 4 2022, 11:39 AM

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QUOTE(kelvinlym @ Nov 4 2022, 11:25 AM)
It currently costs about RM1.80 per cup of high grade coffee. Source: cafe owner.
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only RM1.80? I expected higher. What about those single origin beans?
Knnbuccb
post Nov 4 2022, 12:09 PM

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QUOTE(Drian @ Nov 4 2022, 09:57 AM)
A lot of /k seem to think profit margin is:-

Selling Price/Ingredients cost.

I've been seeing a lot of post such as , I make myself big breakfast only cost rm10, outside selling rm30.
Roti canai cost is only rm0.30 worth of flour, but selling rm1.20
They don't seem to understand the cost structure and don't really understand overhead such as rental, labour makes up a big chunk of the cost.
*
bruh they also think earning 20k is normal

then ask themselves show their payslip its not even 20k

what do you expect

This post has been edited by Knnbuccb: Nov 4 2022, 12:09 PM
Knnbuccb
post Nov 4 2022, 12:12 PM

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QUOTE(Mr Mercedes @ Nov 4 2022, 10:59 AM)
It's Ok-ish I guess.

I have dealings with some small time cafe owners in rather strategic locations (Bangsar, Kuchai Lama, Pucheong, Uptown, SS15) and based on accounts that I have access to, I observe that most have an average RM4000+ monthly net profit. It's not that much really.

However, I'm sure those really good or reputable ones will be raking in moarrrr.
*
huh so little only, fk it might as well be an office drone worker

last time i heard my small town kopitiam corner lot, those taukeh do drinks and then rent out space for stalls can rake in 20k -30k per month
pretty sure their overheard wont be high like those atas cafe, dont think their overhead is even 10k. main bulk is rental, which i heard was going for like 7k a month (that was what pizza hoot paid for a similar shoplot )

they just rent out space and make drinks, those drinks cheapo one.... little bit of tea leaves can make one big jug of tea and serve into many cups... worker also hire foreigners...

This post has been edited by Knnbuccb: Nov 4 2022, 12:16 PM
0168257061
post Nov 4 2022, 12:12 PM

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QUOTE(Drian @ Nov 4 2022, 09:57 AM)
A lot of /k seem to think profit margin is:-

Selling Price/Ingredients cost.

I've been seeing a lot of post such as , I make myself big breakfast only cost rm10, outside selling rm30.
Roti canai cost is only rm0.30 worth of flour, but selling rm1.20
They don't seem to understand the cost structure and don't really understand overhead such as rental, labour makes up a big chunk of the cost.
*
How many here actually runs business?
Stirmling
post Nov 4 2022, 12:16 PM

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upfront capital for renovation and regulatory fees also mahal one. if you ended up with crazy bloodsucking landlord who snuck in one-sided contracts (eg: like hidden fees for whatever reason) you will also kena. my fren spent 200k on a food cafe but tutup about 8 months later.

overhead cost tak kira you die wor

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