Costa Coffee Jetland?

Berty

padma wrote: »

If the reason the coffee was so expensive is because of high rent, they'd do well to leave the place. The coffee is supposed to entice people in there to buy more, and if it's so expensive it means less people are gonna buy it which in turn effects business.

My guess is when they originally did their business plan 2;80 for a medium latte was what they could get for their coffee at the time. However its not 2007 anymore. People do have less money to spend and if they couldn't knock down their prices to get to more customers something is amiss.

There are coffee shops in Grafton Street Dublin where the rent is the highest in the WORLD and they manage to keep their prices reasonable. However they do have a far greater footfall.

The Franchisee of the Jetland(whoever they are) did not set the price of the Coffee. Costa sets the price so it doesnt matter if he opens on Inis Beag or in Dundrum Town Centre the prices must remain consistent.

Rent doesnt come into play. It is her/his own responsibility to negotiate that with the landlord.

BBs by the way is no better. The serve Bewleys muck which for a business of its size is crazy. They should be using something gourmet for their customers, especially with their prices. :rolleyes:

padma

I agree with you 100% Bertie. Their current business model out there just seems a little unrealistic with the prices they have charged. If as I was saying and a big IF they charged these prices in order to reach rent and turn over a good profit, which I'd say is highly unlikely as no-one doing a business plan would be that short-sighted. However I can understand them wanting that spot when it first became available as they probably did think it was gonna be a busy shop.

dave 27

costa cafe, the jean scene and some ladies shop in the jetland are now closed..apparently they wernt paying their rent!

munstergirl

Rumour has it, rent was €8,000 a month it is such a busy shopping centre

Its worth more like €800.

goingpostal

munstergirl wrote: »

Rumour has it, rent was €8,000 a month it is such a busy shopping centre

Its worth more like €800.

€100,000 grand a year to rent a bloody coffee shop?? The only wonder is that they managed to survive this far into the recession.

phill106

Was out there last night, saw the chain and padlocks on costa. Not nice.

kilburn

If it was 8000 grand a month, its lunacy. Greedy landlords, I cant figure out if it is me or the Landlords who are stupid, because I would much rather have 3 units paying me 3000 a month than no units at all paying me 8000.

Red Silurian

From what I heard Costa and The Jean Scene (or josef as it's now called) are owned by the same crowd, wouldn't surprise me if shanique was as well... So I imagine it was the one parent company that was sorting out the 3 leases! This would explain why all 3 of them were closed on the same morning!

So if parent company wants a reduction in the lease and jetland don't then until negotiations are complete the 3 businesses will remain shut!

dave 27

i think the moral of the story here is start setting up in town, i cant imagine town being anymore expensive than what they're paying already in jetland surely? afterall (and correct me if im wrong) limerick city is one of the only places in western europe i believe that has frozen and reduced their rates for the third year in a row?

theres an empty brand new block on thomas st they could fit into perfectly!

Berty

dave 27 wrote: »

theres an empty brand new block on thomas st they could fit into perfectly!

That's what Thomas Street needs. Another Coffee Shop.

dave 27

Berty wrote: »

That's what Thomas Street needs. Another Coffee Shop.

yup! :P might as well create a european metropolitain look while we have the chance like!

phill106

Fair few coffee shops around thomas street too sadly, so might be over saturated. Course 20% of stores that had been open in jetland had been coffee shops!

Kess73

dave 27 wrote: »

i think the moral of the story here is start setting up in town, i cant imagine town being anymore expensive than what they're paying already in jetland surely? afterall (and correct me if im wrong) limerick city is one of the only places in western europe i believe that has frozen and reduced their rates for the third year in a row?

theres an empty brand new block on thomas st they could fit into perfectly!

I think you might get a shock as to how much a similar sized unit to where they were in the Jetland would cost in a decent location in the town centre.


An example would be the tiny unit near St Michael's church on Denmark street. The unit is less than 600 square feet, and a touch over €2,300 a month is being asked.

Now Costa would probably be looking for a unit that would be between 2,500 sq ft and 3,500 sq ft. There are not a lot of units in that size at a reasonable price that also have a pretty good potential footfall outside their door.

There are a few units in that size bracket in the centre of town, but not exactly in areas where people will be flocking and stopping, and most of those units were once occupied by businesses that died due to lack of paying customers in the area.


The only unit that springs to mind in terms of lowish rent for the town centre is one I pass every odd day. It is the site of the Spar shop on Henry street that was directly across from RBS/Elverys. That is available for about €3k a month and is about the 3,000sq ft mark. But there is already a coffee shop next store and across the road, with Clohessys around the corner, and is hardly an area that is very busy with a couple of the businesses in that stretch surving only because they own their units, and don't have high rent to wipe them out.


Another similar sized unit is the site of the old Sony store/Kielys on O'Connell street, but the rent being asked there is far higher (from what I know selling the building is the preferred option), and there is also a unit on Cruises street in the same size bracket but again the rent issue would pop it's head up if the Jetland rates are deemed too high as is. The unit across from Empire Euro is also available to rent, but as it is on O'Connell street the rent is quite high.

If anything I reckon we will see more units close than filled again next year in the town centre, which is a bloody shame but until a combination of people get their head around what can actual stimulate some stability and then growth in the centre things will continue to stumble along as it is now.

Conor Bourke

I saw today that Costa have got the franchise for the two coffee shops in the Regional. Delightful... nawt.

Minty88

The charges in Costa Coffee were totally inflated. there was no way they could sustain at that price. Every other place was reducing their prices and they werent. BiBi do a coffee and a toasted sandwich for 4.95 now.....the same thing would cost you about 9 euro in costa and it wasnt even that great. BiBi also give you a free coffee after every 4 you pay for. Costa was ridiculous to think you could compete without reducing charges. They had a smoking area outside though...which was probably its biggest draw. BiBis dont which is a pity.....

Insect Overlord

That just reminded me, I've had some great chats in that smoking area. One of the lads would get his latté and smoke away, I'd get a hot chocolate and try to sit up-wind of the smoke and we'd talk about all kinds of things. That was what always drew us to Costa instead of BB's. Good times, but definitely an expensive way to drink hot drinks.