Running/Setup a cybercafe

daveg

Any comments or advice would be appriciated...

I currently do some IT work for a cybercafe in Galway. The cafe has very good potential as it is in a good area and if it was marketed properly I think it would do very well.
The cafe is very badly run at the moment. It is not advertised/charges are high/no gaming ect ect... I have told my boss on loads of occasions that there is a huge market out there if he only advertised and spent a bit of money on the place. Anyway my boss is always moaning and groaning about the cafe and the wages he has to pay so I offered to take the place off his hands.... I'm just wondering if anyone else has setup or runs a cybercafe at the moment. The great thing about this venture is it is already setup. All the PC's/server ect are all installed - although the PC's may need to be upgraded..

Typedef

I have had thoughts of setting up mine own interweb cafe.

The things that put me off were, getting a lease and the capital outlay of buying the machines, all in all about 120k (Irish), which is a hell of a lot more discressionary money then I have to spend on a non sure venture.

Especially since I am only 23 now, (21/22) at the time, I was pretty put off the idea.

Still I have an idea to open an iterweb shop in town that serves really good coffee.

daveg

The things that put me off were, getting a lease and the capital outlay of buying the machines, all in all about 120k (Irish), which is a hell of a lot more discressionary money then I have to spend on a non sure venture.

This is the brilliant thing. All the machines are there (although they may need upgrading). The place is built/fitted out.

Graham

I'd reccommend waiting a few months, the market valuation for Internet Cafe's is likely to change over the next few months.

FRIACO (flat rate internet access) is likely to make Internet at home much more affordable over the coming year. This is bound to have an effect on the business and likewise the valuation of the business.

If the business you are talking about isn't doing so well, be patient. This may sound mercenary, but if it continues to do badly, it's value is likely to get lower and lower. Who's going to offer you the best deal?

• Someone who runs a business, is happy with it, but would consider selling for the "right" price.
• Someone who has to sell the business because they can no longer afford to sustain it's losses.

Have you assessed the turnover of the business? Sit in the cafe for a few days and calculate the revenue from the people that are visiting. Do you know the overheads or can you estimate them? Could you afford to run the business based on the existing figures (it may take longer than you think to increase turnover/profit).

Good Luck

Graham

Waylander

I don't know about Galway, but I think part of the problem is that there are far two many internet cafe's around the place. I work on Dame street, and I can think of five or six within ten minutes of me off the top of my head. There are probably at least double that number. I know we get alot of tourists and visitors but that is far too much saturation for them all to be making decent returns. I would be careful about investing in something like that.

voodoo

If I could also add my two-penny bit here....

I too had dappled with the concept of opening an Internet/Gaming cafe, and done loads and loads of research into the area. There is a huge market for it in the US and Asia but just dont think that that cultural paradigm fits well in Ireland. Here are a number of reasons I decided against doing it :-

- Initial capital costs of premises and equipment (I know you say that this isn't an issue for you, but will be if you have to upgrade). One thing on the equipment, if you have P3s, you dont need anything else! Dont over equip the cafe...

- Linked to the above is the cost of software. If you are going to allow gaming, then legally, you need to licence software from the games vendors such as EA (check your EULA of any game for comments on this).

- Demand! You need to ensure that you have the correct demographics in your locale such as large colleges, preferrably with lots of foreign students (who both love surfing the web and playing games).

- Broadband! With the introduction of broadband, you will have increased competition from gamers who can now play from the comfort of their own home, albeit a little expensive at the moment (or is it compared to "Paying per hour" in your cafe).

- Additional services. If you have a large number of foreigners in your locale, then maybe it would be of interest to offer cheap phone service. This again is big business in Dublin (with refugees etc).

Anyway, hope this provided you with some help and best of luck.

Voodoo

daveg

Thanks for the input everyone. I spoke to the owner last night. He said he'd give it to me for €550 PM if I give him some free hours for his customers (most of these outside our opening times). So I think were gonna go for it.

pclancy

if you get details on costs of licencing games software would you post them here of email them to me? cheeeeeeeeeerz.

MrPudding

Originally posted by pclancy
if you get details on costs of licencing games software would you post them here of email them to me? cheeeeeeeeeerz.

GET BACK T WORK OR I'LL TELL DAVE!

pclancy

snared by the balls. thanks dee dah.