New to the business. Opening in southern nc - Barista Exchange2024-03-29T15:01:19Zhttps://www.baristaexchange.com/forum/topics/new-to-the-business-opening-in-southern-nc?id=1688216%3ATopic%3A1491936&feed=yes&xn_auth=noCheck out Tower 7 / Cafe Del…tag:www.baristaexchange.com,2013-11-12:1688216:Comment:14937552013-11-12T00:56:50.737ZDavid Myershttps://www.baristaexchange.com/profile/DavidMyers
<p>Check out Tower 7 / Cafe Del Mar in Wrightsville, which used to be separate businesses, but now have the same owner. The cafe is pretty busy every morning during the summer. They make a lot of espresso shakes later in the day as well as a host of other cold drinks.</p>
<p>Also, Port City Java, just off the beach seems to do well too, but it's more of a business crowd than beach crowd.</p>
<p>Check out Tower 7 / Cafe Del Mar in Wrightsville, which used to be separate businesses, but now have the same owner. The cafe is pretty busy every morning during the summer. They make a lot of espresso shakes later in the day as well as a host of other cold drinks.</p>
<p>Also, Port City Java, just off the beach seems to do well too, but it's more of a business crowd than beach crowd.</p> Ice cream sales and coffee ar…tag:www.baristaexchange.com,2013-11-11:1688216:Comment:14934852013-11-11T15:02:06.384ZDanny Heisshttps://www.baristaexchange.com/profile/DannyHeiss
Ice cream sales and coffee are very different. While it is true that ice cream will sell year round, coffee will indefinitely sell year round ata much stronger rate. Do not underestimate the power of coffee. Once coffee becomes a love of the community, you will easily see continuous growth for years to come. <br></br>
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<cite>Atlantictradegroup said:…</cite>
Ice cream sales and coffee are very different. While it is true that ice cream will sell year round, coffee will indefinitely sell year round ata much stronger rate. Do not underestimate the power of coffee. Once coffee becomes a love of the community, you will easily see continuous growth for years to come. <br/>
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<cite>Atlantictradegroup said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/new-to-the-business-opening-in-southern-nc?id=1688216%3ATopic%3A1491936&page=1#1688216Comment1492560"><div><div class="xg_user_generated">Wow jay. This is all very helpful. I have attempted to conjure up a formula based on entering a market that hasn't been tapped by using ice cream consumption trends vs coffee and the level of ice cream consumption here. Pretty far fetched that it will be of much relevance.<br/> The floor is the first accessible floor but up a set of stairs.<br/> Is a capture rate of 2% fairly standard?<br/>
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Experience is empty but I along with my brother own a customer service based business and have the next 6 months nearly free to work on our concept and plan to put in force.<br/>
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The financial resources are there and we are excited at this point. Who knows how long the fire will be there.</div>
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</blockquote> Agreed. I operated on a secon…tag:www.baristaexchange.com,2013-11-11:1688216:Comment:14937252013-11-11T14:56:15.283ZDanny Heisshttps://www.baristaexchange.com/profile/DannyHeiss
Agreed. I operated on a second floor for two years. It was awful. We where always referred to as the place above this other place.bvisibility was poor. Whatever your business is on top of, you will be known for the other business. Better hope its not a scuzzy bar. I don't know though. It may be different for a community it's that lives on stilts. But I still say, despite the risk of a washout,you will do better on ground level<br></br>
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<cite>Jay Caragay said:…</cite>
Agreed. I operated on a second floor for two years. It was awful. We where always referred to as the place above this other place.bvisibility was poor. Whatever your business is on top of, you will be known for the other business. Better hope its not a scuzzy bar. I don't know though. It may be different for a community it's that lives on stilts. But I still say, despite the risk of a washout,you will do better on ground level<br/>
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<cite>Jay Caragay said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/new-to-the-business-opening-in-southern-nc#1688216Comment1492108"><div><div class="xg_user_generated"><p>I don't operate in a resort area so I don't much insight into that. But 2nd Floor? Abandon that location and treat it like the plague. You'll waste your money and kill your business.</p>
<p>Look for a suitable location that is ground level with great visibility and lots of walk-by traffic and easy parking. It might cost you more but it will be worth it.</p>
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</blockquote> In addition to the great poin…tag:www.baristaexchange.com,2013-11-07:1688216:Comment:14925762013-11-07T03:53:23.362ZMike McGinnesshttps://www.baristaexchange.com/profile/miKemcKoffeeakaMikeMcGinness
<p>In addition to the great points Jay has brought up I'd like to reiterate the importance of getting some experience working in the business before opening a type of business you've never worked in. Myself and a business partner purchased an existing location 6 years ago just this November 1st past. We both loved coffee. We both had experience home roasting but not roasting professionally. We both had a lot of home brewing experience various methods including espresso. However only I had any…</p>
<p>In addition to the great points Jay has brought up I'd like to reiterate the importance of getting some experience working in the business before opening a type of business you've never worked in. Myself and a business partner purchased an existing location 6 years ago just this November 1st past. We both loved coffee. We both had experience home roasting but not roasting professionally. We both had a lot of home brewing experience various methods including espresso. However only I had any experience all be it only a few months professional barista experience as well as a number years fully managing a small business (which is a far cry different than the burdens of ownership). After 5 months at the end of a bar shift one day my original partner said "I quit, I'm tired of being a janitor" and walked out the door never to set foot back in or lift a finger in anyway to build the business. Guess what, a BIG part of running any coffeehouse is cleaning, continuous cleaning! Yeah I'm "The Head Bean" (says so on my business card) and yeah I do dishes too. There isn't a single thing I ask of any employee that I won't and haven't done myself.</p>
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<p>I perservered. I was willing to do whatever it takes, period, no excuses. A couple years later found a new minority partner who is a much better "front man" than me and today the business is thriving. Actually the past 2 years almost unbelievable greater than 100% per year growth rate which continues with October closing 11% over September and November showing signs of the trend continuing.</p>
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<p>BUT, back in December 2009 the month after the big stock market crashed the only thing that kept the doors open was me putting ~$2k on my last remaining credit cards to make payroll. AND my house went into default to keep the business running during the depression while I watched countless other doors close forever. Which is to say don't plan on living off the business for at least a year or 2 or even longer. If it's able to pay you sooner great, but be planning on living off personal reserves for a good spell just in case.</p>
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<p> </p> Like I said previously, it re…tag:www.baristaexchange.com,2013-11-06:1688216:Comment:14927202013-11-06T19:40:11.737ZJay Caragayhttps://www.baristaexchange.com/profile/JayCaragay
<p>Like I said previously, it really is about you and what you deem a worthy investment and manageable risk. Take your time and really hammer out your numbers. If you have the resources and the time, go work for someone in the industry whose standards are similar to your own. Learn how to operate the business. You really cannot be too prepared. So many operators fail because they're unprepared and under-capitalized.</p>
<p>Is 2% fairly standard? Maybe it's a bit optimistic. I took a look at our…</p>
<p>Like I said previously, it really is about you and what you deem a worthy investment and manageable risk. Take your time and really hammer out your numbers. If you have the resources and the time, go work for someone in the industry whose standards are similar to your own. Learn how to operate the business. You really cannot be too prepared. So many operators fail because they're unprepared and under-capitalized.</p>
<p>Is 2% fairly standard? Maybe it's a bit optimistic. I took a look at our transactions from yesterday and compared them to the demographic count of the neighborhood and we pulled 1.67% of our neighborhood population, so it's going to be close - and we're in a neighborhood where there is a variety of competitors.</p>
<p>One thing to remember: don't fall in love. Meaning don't allow yourself to be so enamored with an idea that you'll do it at any cost - it will be tremendously costly if you do. No deal is "too good" to pass on. It has to make sense and don't get caught up in trying to find all the positives to convince you and others. If you have to do that, then it's almost guaranteed to be riddled with problems.</p>
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<p>Good Luck!</p> Ps. Jay, that is spot on!tag:www.baristaexchange.com,2013-11-06:1688216:Comment:14924042013-11-06T19:26:54.225ZJason Campbellhttps://www.baristaexchange.com/profile/JasonCampbell
Ps. Jay, that is spot on!
Ps. Jay, that is spot on! http://www.tripadvisor.com/Re…tag:www.baristaexchange.com,2013-11-06:1688216:Comment:14924742013-11-06T19:24:50.550ZJason Campbellhttps://www.baristaexchange.com/profile/JasonCampbell
<a href="http://www.tripadvisor.com/Restaurants-g48966-Blowing_Rock_North_Carolina.html" target="_blank">http://www.tripadvisor.com/Restaurants-g48966-Blowing_Rock_North_Carolina.html</a><br />
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Check us out on tripadvisor, heck... Come on up the mountain and drop in, check us out and we can talk shop. Good luck.
<a href="http://www.tripadvisor.com/Restaurants-g48966-Blowing_Rock_North_Carolina.html" target="_blank">http://www.tripadvisor.com/Restaurants-g48966-Blowing_Rock_North_Carolina.html</a><br />
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Check us out on tripadvisor, heck... Come on up the mountain and drop in, check us out and we can talk shop. Good luck. I am in a similar situation i…tag:www.baristaexchange.com,2013-11-06:1688216:Comment:14924712013-11-06T19:22:12.279ZJason Campbellhttps://www.baristaexchange.com/profile/JasonCampbell
I am in a similar situation in the mountains of Blowing Rock NC. Our town is about 1500 folks off season and has a massive influx through the summer and fall. I am on the second floor in an outsoors store and it has many challenges.
I am in a similar situation in the mountains of Blowing Rock NC. Our town is about 1500 folks off season and has a massive influx through the summer and fall. I am on the second floor in an outsoors store and it has many challenges. Wow jay. This is all very hel…tag:www.baristaexchange.com,2013-11-06:1688216:Comment:14925602013-11-06T16:38:29.012ZAtlantictradegrouphttps://www.baristaexchange.com/profile/Atlantictradegroup
Wow jay. This is all very helpful. I have attempted to conjure up a formula based on entering a market that hasn't been tapped by using ice cream consumption trends vs coffee and the level of ice cream consumption here. Pretty far fetched that it will be of much relevance.<br />
The floor is the first accessible floor but up a set of stairs.<br />
Is a capture rate of 2% fairly standard?<br />
<br />
Experience is empty but I along with my brother own a customer service based business and have the next 6 months nearly…
Wow jay. This is all very helpful. I have attempted to conjure up a formula based on entering a market that hasn't been tapped by using ice cream consumption trends vs coffee and the level of ice cream consumption here. Pretty far fetched that it will be of much relevance.<br />
The floor is the first accessible floor but up a set of stairs.<br />
Is a capture rate of 2% fairly standard?<br />
<br />
Experience is empty but I along with my brother own a customer service based business and have the next 6 months nearly free to work on our concept and plan to put in force.<br />
<br />
The financial resources are there and we are excited at this point. Who knows how long the fire will be there. I'm thinking "2nd floor" - bu…tag:www.baristaexchange.com,2013-11-06:1688216:Comment:14923092013-11-06T12:39:55.350ZJay Caragayhttps://www.baristaexchange.com/profile/JayCaragay
<p>I'm thinking "2nd floor" - but if yours is a situation where a walk up a flight of stairs to businesses on stilts is the norm and you're on that first level, then perhaps that will be fine - so long as that's the norm. But if it's still considered "second floor" - meaning a floor above whatever is considered primary, then I would avoid.</p>
<p>Whichever the case, it's really up to you to decide if the business is worth the financial risk. Do you have much experience and do you know what…</p>
<p>I'm thinking "2nd floor" - but if yours is a situation where a walk up a flight of stairs to businesses on stilts is the norm and you're on that first level, then perhaps that will be fine - so long as that's the norm. But if it's still considered "second floor" - meaning a floor above whatever is considered primary, then I would avoid.</p>
<p>Whichever the case, it's really up to you to decide if the business is worth the financial risk. Do you have much experience and do you know what you're doing to hedge your bet? Another question you should ask yourself is whether or not this business can provide what you desire?</p>
<p>You said that during the summer months, population surges to 25,000 people. Let's presume you can capture 2% of that base (500) and let's presume you can cycle through that 500 every five and a half days - that's about 90 transactions per day. Presume an average transaction of $5.25 and you get $472.50 per day in gross revenue or $3,307.50/week. Expand that to 12 weeks = $39,690.</p>
<p>But your installed base is only 1,000 residents. Using a similar calculation, we can derive revenue of about $552/wk, multiply that by 40 weeks and you get $22,050 - this gives you a total yearly gross revenue of about $62,000.</p>
<p>From this, we presume 30% cost of goods ($18,522), 30% labor and 30% operating expenses, potentially leaving the company with a net profit of $6,200 per year.</p>
<p>The question is whether or not this is enough to operate and for the profit you desire? Is it enough to provide for the lifestyle you desire?</p>
<p>Of course, I've made very simple presumptions and have not given any of the specifics of your situation any real consideration, but you should get the idea. Run your numbers, look at them very carefully and then decide if the risk is worth the investment. The idea of owning a coffee shop sounds fun and cool, but the reality can be very different. Proceed with extreme caution.</p>