dublin cafes operational costs

conman

hey everyone,

im trying to consider the operating costs of an average small cafe in Dublin (obriens, lemon, costa, or family orientated)..

so, basically how much it costs to purchase the raw materials (breads, pasta, sauces, cheese, milk and so on... i dont need them itemized, just a rough idea)

how much the coffee machines costs to buy, the ovens etc.

what im looking at is trying to calculate the profit margin, after everything is considered.
like i was saying, i dont need exact figures,

thanks in advance

YellowSheep

Hi Conman
Unless you are being a bit more specific you are p......... in the wind with this thread. All depends on rent, location, product etc. And of course the operator itself. If you have a more specific concept you want to go after let me know and I will give you some %. Cheers Oliver

rotinaj

The coffee machine they have in them place can cost up to 10 grand alone.

Raw materials: I have no idea
Rent: Loook at daft for similar places
Staff: 8.65p/h min

Add to that tax, rates,non profit stock, maintanince and your looking at a heafty bill.

conman

sorry about being bare on spcifics...

i dont need to know about rent, staff, electricity etc as its a factor attributed to location, square footages etc..

what im looking at in particular is the costs of the goods that are required to make the foods and drinks, ie the raw materials.

and then how much of a profit margin in general is made from that, preferably on a yearly basis, but i can calculate the sums either way.

i think a bagel factory type cafe, or creperie are more intune with what im thinking..

themadchef

conman wrote: »

what im looking at in particular is the costs of the goods that are required to make the foods and drinks, IE the raw materials.

and then how much of a profit margin in general is made from that, preferably on a yearly basis, but i can calculate the sums either way.

The cost of the goods will all depend on who you buy them from and in what state they are. Are they processed before they reach you or are you having to do alot of work with the goods? Silly example: coleslaw, some people buy it made up completely with mayonnaise ready to go, some buy the shredded cabbage and carrot and mix it themselves and some actually but the whole cabbage, carrots and mayonnaise and do all the work. So without specifics no one can give you an average IMO. The more processed coming in the door, the lover the wage cost in thoery. No control over the end product though, so i choose to do the work and buy the raw ingredient. All well and good if you have the space and the staff.

I find some foods you easily make your margins... some you don't make them at all. I try to work off 1/5. The food on the plate should cost 1/5th of the selling price. Easy on some things, more difficult on others. Some you're lucky to make 1/4th. Others you easily get more. It's swings and roundabouts. I like to keep my GP around 68% but it's not easy

The catering industry is very tough, especially now. Best of luck with your venture.

conman

themadchef wrote: »

The cost of the goods will all depend on who you buy them from and in what state they are. Are they processed before they reach you or are you having to do alot of work with the goods? Silly example: coleslaw, some people buy it made up completely with mayonnaise ready to go, some buy the shredded cabbage and carrot and mix it themselves and some actually but the whole cabbage, carrots and mayonnaise and do all the work. So without specifics no one can give you an average IMO. The more processed coming in the door, the lover the wage cost in thoery. No control over the end product though, so i choose to do the work and buy the raw ingredient. All well and good if you have the space and the staff.

I find some foods you easily make your margins... some you don't make them at all. I try to work off 1/5. The food on the plate should cost 1/5th of the selling price. Easy on some things, more difficult on others. Some you're lucky to make 1/4th. Others you easily get more. It's swings and roundabouts. I like to keep my GP around 68% but it's not easy

The catering industry is very tough, especially now. Best of luck with your venture.

thanks for your reply..

well, im not getting into the catering industry, so its not so bad.
but i was considering allowing a cafe rent a space within the space i have, so getting an idea of that line of business is suitable, so i dont overcharge, or undercharge. competitive but highly reasonable is best. its just an idea for the moment, not sure yet if id follow through on it.

DubTony

Conman, you're renting space, not a business. It should be the same price no matter what goes in. You're basically adding a concession to your existing business. As the tenant probably won't have his own metering for services, the price should be calculated on your rent, your rates, your electricity, etc. Break your costs down to a per foot price and go from there. By the way, a tin of beans is about 50c in Tesco.

You could justify extra rent if your tenant was expected to use an excessive amount of water or electricity. But you'd need to work this out first. BTW, a good estate agent would probably give you a good idea of going rates for this type of thing.

pirelli

DubTony wrote: »

Conman, you're renting space, not a business. It should be the same price no matter what goes in. You're basically adding a concession to your existing business. As the tenant probably won't have his own metering for services, the price should be calculated on your rent, your rates, your electricity, etc. Break your costs down to a per foot price and go from there. By the way, a tin of beans is about 50c in Tesco.

You could justify extra rent if your tenant was expected to use an excessive amount of water or electricity. But you'd need to work this out first. BTW, a good estate agent would probably give you a good idea of going rates for this type of thing.

A Tin of beans is only 25- 28 cents in Tesco.

DubTony

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