What's the profit margin of cafe in KL?
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 Nov 4 2022, 09:57 AM
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#1
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4,999 posts Joined: Jan 2003  
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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. silverhawk, icemanfx, and 4 others liked this post
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Nov 4 2022, 10:09 AM
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#2
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QUOTE(viktorherald @ Nov 4 2022, 09:59 AM) Where can possible 80% margin canIf possible I'm sure other restaurants will happy to steal customer from you with so called 60% margin And let the margin wars begin  /k style margin is calculated using Selling Cost/Ingredient cost . They assume rental , worker wages, electricity , is free. |
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Nov 4 2022, 01:56 PM
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#3
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QUOTE(Juggerballz @ Nov 4 2022, 10:52 AM) Don't understand the logic behind RM12 for a cup of Americano. Coffee machine Rm20-Rm30k The cafe plague (charging RM30-40 for a dish of english breakfast) needs to stop. 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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Nov 4 2022, 02:02 PM
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#4
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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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