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Permalink Reply by Denise Smith on June 16, 2009 at 4:49am

Your numbers would not even cover our labor cost in the US for a full sized sit down coffee house and eatery. We are bigger then more Coffee houses though. Our payroll is about 2K and our electric, sewer and water is just under 2K. then add in operating costs for supplies and maintenance because even new stuff has problems... we have been open for nearly 3 months now and do not expect a positive cash flow for quite a while yet.

We also have the unseen cost... mandatory minimum wage is about to jump and with it all the SS and insurance and junk that the government make employers pay... it's a real killer to any budget!

Canada has an even high cost of living then the US but the US has it's higher more expensive locations and then places like us near the middle of nowhere. To do what we have done in a major city would cost several million for land, building etc... ours is looking more like half a mill with land cost, equipment, reconstruction... (operating cost not included).

Remember most coffee houses like most businesses do not reveal all the details to their customers. They work hard at making it look easy and a fun filled place to come to. On the other side of the counter and in the back office is where the stress of business ownership is seen and felt!

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Permalink Reply by Nostrommo on June 16, 2009 at 11:00am

I know what you mean, and thanks for coming forward, the situation in Mexico is about to change on coffee, we have lower payroll cost, but a better location is a must, as for us, our coffee shop had a very low rent, but that's what killed our business, not a lot of traffic, and it was hard to see it if you went by it, our customers were very loyal, they even came from across the city, but it wasn't enough, we went short in the investment, but in a better location, things would been different. You commented about some things I hadn't considered, but as well as you say, you are a bigger coffee house than most, It might be interesting to figure out some numbers and it might be more profitable on the long or even mid term.

Thanks for your reply! :D

Denise Smith said:

Your numbers would not even cover our labor cost in the US for a full sized sit down coffee house and eatery. We are bigger then more Coffee houses though. Our payroll is about 2K and our electric, sewer and water is just under 2K. then add in operating costs for supplies and maintenance because even new stuff has problems... we have been open for nearly 3 months now and do not expect a positive cash flow for quite a while yet.

We also have the unseen cost... mandatory minimum wage is about to jump and with it all the SS and insurance and junk that the government make employers pay... it's a real killer to any budget!

Canada has an even high cost of living then the US but the US has it's higher more expensive locations and then places like us near the middle of nowhere. To do what we have done in a major city would cost several million for land, building etc... ours is looking more like half a mill with land cost, equipment, reconstruction... (operating cost not included).

Remember most coffee houses like most businesses do not reveal all the details to their customers. They work hard at making it look easy and a fun filled place to come to. On the other side of the counter and in the back office is where the stress of business ownership is seen and felt!

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