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What's the profit margin of cafe in KL?
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SUSRolexseller123
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 Nov 4 2022, 12:48 PM
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Getting Started
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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? After factoring in rental cost, staff cost, increases raw material cost, utility cost, you'll be lucky to breakeven |
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spacelion
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Nov 4 2022, 12:56 PM
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QUOTE(letitsnow @ Nov 4 2022, 10:12 AM) learn to roast, brew a good coffee. if your coffee really power, customers keep coming despite the slight expensive price. No Location is the most important thing Heavy footfall is very important Otherwise your cafe is an afterthought The best location is with captive market like office Ground floor |
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spacelion
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Nov 4 2022, 12:59 PM
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QUOTE(J1g54w @ Nov 4 2022, 11:39 AM) only RM1.80? I expected higher. What about those single origin beans? How much u expect to pay if you have volume The price in your mind is for 200g 1kg or 20kg bulk Just curious, maybe I'm paying too much or too little for my bulk haha |
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kitzai
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Nov 4 2022, 01:33 PM
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Getting Started
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Impossible 80% la..
My profit around 30% - 60% only
Then also got ppl say experience, mahai...
They might just eat grass outside
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Drian
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Nov 4 2022, 01:56 PM
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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. Coffee machine Rm20-Rm30k Barista/waiter/ - 10k/month Renovation 50-80k Electricity/Water/Internet 1k-2k Shop rental RM5k-10K/month Misc Wastage (broken stuff, expired goods, aircond service etc) Rm500/month This post has been edited by Drian: Nov 4 2022, 01:59 PM |
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rauma
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Nov 4 2022, 01:59 PM
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New Member
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Few decades ago, CoG meant center of gravity to me. Now CoG means cost of goods. But you should aim for 38-40%.
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J1g54w
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Nov 4 2022, 02:00 PM
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QUOTE(Drian @ Nov 4 2022, 01:56 PM) Coffee machine Rm20-Rm30k Barista/waiter/ - 10k/month Renovation 50-80k Electricity/Water/Internet 1k-2k Shop rental RM5k-10K/month Misc Wastage (broken stuff, expired goods, aircond service etc) Rm500/month I thought machines are mostly rented, tied to contract? no? |
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Drian
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Nov 4 2022, 02:02 PM
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QUOTE(J1g54w @ Nov 4 2022, 02:00 PM) I thought machines are mostly rented, tied to contract? no? Most likely, but that makes it more expensive per month. 1k/month for coffee machine rental alone. |
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fu'house
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Nov 4 2022, 02:25 PM
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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. How to explain when the cafe charge you RM 4 for a glass of water, when there are sundry shops nearby selling RM 1 per bottle? Food price all above RM 30. Yet there are nearby competitors and yours quite full everyday. T20 area? |
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infiniti123
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Nov 4 2022, 03:42 PM
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QUOTE(smokey @ Nov 4 2022, 10:10 AM) Side income means u are not there to manage/work? yeap. i dont step into the place ever. used to go help out for fun on sat/sun. but busy now. i purely take the profit 100% as the sole owner |
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silverhawk
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Nov 4 2022, 03:59 PM
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Eyes on Target
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QUOTE(fu'house @ Nov 4 2022, 02:25 PM) How to explain when the cafe charge you RM 4 for a glass of water, when there are sundry shops nearby selling RM 1 per bottle? Food price all above RM 30. Yet there are nearby competitors and yours quite full everyday. T20 area? They don't have the same costs. For sundry shops, water is an item used to draw in people so they buy more stuff. Go in for Rm1 water, also buy some bread/snacks. The renovation, equipment and staffing costs are different as well. Generally, the RM4 is to deter you from ordering water, and to order drinks. If anything, you can use that as a benchmark as to what "profit" each drink makes. The price of the water would definietly be more than the profit of the other drinks. |
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keyibukeyi
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Nov 4 2022, 04:23 PM
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Getting Started
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got aircon can charge more, boss say today got open aircon
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