I am skeptical about the scheme. My reasoning is simple.

5% return per month will mean 60% return per annum and ROI within 20 months. It is unreasonable to expect such a ROI for F &B industry, or for most other investments or businesses (which are legal). Even some very famous Franchises have problems getting ROI within two years.

To sustain the payout of 5% for the first two years and 2.5% thereafter until the fifth year, the café will have to rack in unrealistically high profits. This will not happen.

At this point, either the scheme will have to reduce the payout rate, defer payouts or get more money from new investors. If the third option is taken, then there is little difference between the RIC concept and other Ponzi schemes.

Furthermore, the above analysis is done assuming that there is no misappropriation of funds or other fraudulent actions by the “Up lines”.