Re: Cafe Start Up Help...Please!
Havent posted here in a while. Opening a cafe in this environment would be a pretty hard. So many empty shops in Melbourne. A dangerous time for cafe owners. So many streets are down 20 to 30 percent. Opening up with no experience, would be crazy. Leasing equipment? Dishwasher for sure! Coffee machine? depends if you want to upgrade. Second hand equipment? Risky as hell. Second hand equipment on a slicer, oven shouldnt be a problem or coffee machine if you are lucky. Dont buy second hand fridge. Buy the most expensive fridge you can afford. They will always break down. To fix a commercial fridge would cost you $300 to $1000. Once they break, they will break down every year.
Announcement
Collapse
No announcement yet.
Cafe Start Up Help...Please!
Collapse
X
-
Re: Cafe Start Up Help...Please!
buy. There are some good machines around at reasonable prices. We bought our first machine 2nd hand then as the cafe grew we upgraded to a new one. This way we choose what coffee, how much coffee we order. And in some cases with a lease machine you will have to buy a certain brand of softdrink as well
LE
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
Thanks Brett, Im thinking about a very small cafe, really basic fit out..
Not sure if I should buy second hand equipment or lease from coffee supplier, just wondering what other people out there are doing ..
Thx for response
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
Pros - easy option
Cons - cost, restriction of equipment, long term deals (I think)
Depends on the type of operation you are looking at as to the option you should choose, very broad question me thinks.
Brett
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
Hi, I have a question, what are the advantages / disadvantages of leasing equipment from your coffee supplier as opposed to buying your own and any thoughts on second hand stuff?
Thanks
PS Im new and looking at starting up a cafe in Melbourne suburbia..
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
Try drilling a lot of holes in a bucket and then filling it with water and then try to catch the water with both hands and hold onto it as it runs out of the bucket
Now imagine that that water is the money that youre pouring into your business !
Not trying to disuade you but it is a risky business and a great way to lose a lot of money very fast if its not done right!
I budgeted $70k on my last cafe (Ive owned 3 cafes) and managed to spend double that - and what ever you spend on fitout you still need to budget to run at a financial loss for the first 12 to 24 months of trade - and youre fortunate if you manage to break even after two years!
Thats the conventiaonal wisdom as I understand it - and it seems to hold true: you need to have enough cash surplus after paying for fitout and other associated setup costs to prop the business up if it proves necessary to do so until you fall on your feet
Of course it is possible to do it for much less, especially if youre planning to do much of the construction work yourself - or if someone near and dear to you is able to do so - but is still a monumental effort to get a new cafe off the ground (which is not to say that it shoudnt be done)
A good start is to draw up a floor plan to scale - and then figure out what is required to fit out and to occupy every single square inch of the place - including equipment, materials, resources, fixtures and fittings, adequate commercial refrigeration and storage, and stock
I for one would recommend paying someone with suitable industry experience in these areas to bounce ideas off and to help get the project off the ground
It may seem like an unnecessary expense at the time but it could halve your stress levels and could potentially save you a lot of $$$ in the long run by making informed choices
My 5c worth and good luck!
ACg
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
iPod, iPad are niche products ... if you have lots of $ I suggest buy a shop and you can forget about landlord problems .. look for a good solicitor who knows about cafe business etc, even Gordon Ramsey closed his restaurant in Melbourne, just good food is not enough .. dont forget you are the last one to get paid & no sleep.
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
Whats so controversial about your advice Dennis?Originally posted by 0214111100020E07070404610 link=1315563829/5#5 date=1315578660My (perhaps controversial) advice
It all rings true to me. Maybe its a little blunt - but thats just Dennis. ;D
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
Hello Rachael and welcome to CS!
My (perhaps controversial) advice:
a) The only reason you will need a business plan is to satisfy the lender or make you feel good. NEIS is available to unemployed people with a new business idea. If you fit into this category then stop here and consider getting a regular job.
b) Location is critical. Allow me to repeat that. Location is critical!
c) If you find a place that is already approved by the local council as a food business, you will save yourself a lot of angst, time, and money.
d) If the premises requires a Development application, it is likely to take 3 to 4 months before your fitout begins.
e) In regards to setup costs, its hard to say since I dont know what you intend to do except that it falls under the somewhat vague cafe category. So Let me give you a vague, entire fitout, $70K figure as a minimum starting point.
Cheers and if youd like to talk off site, send me a message.
Den
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
Also, be aware that DA applications and subsequent approvals can cause a lot of grief and money. Negotiate good terms with RE agents/landlord in case DA approval for your proposed cafe drags on for too long.
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
This is the work you need to do, are you sure it is niche, are you sure the market is large enoughOriginally posted by 1625272C252128377670440 link=1315563829/0#0 date=1315563829I am creating niche product that I know there is a large market for
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
Hmm, Perhaps looking into governmental assistance? I know theres something called "NEIS" available to someone whos never operated a business before, They offer training and advice about such things as "how to fill out the tax forms" and "do you have a business plan? if not, we can train you in how to build it up" They also offer financial support to setup
Contact your local C-link or DEEWR office for more details. as for all the other stuff, Fixed and variable costs are all down to where you are and what sort of moneyflow you have to offer.
- Flag
Leave a comment:
-
Re: Cafe Start Up Help...Please!
My only advice would be to talk to your roaster and a good accountant with experience in the the industry.
Good Luck.
- Flag
Leave a comment:
-
Cafe Start Up Help...Please!
Despite the statistics and reading numerous articles and blog..I have decided to take the plunge and open my own cafe by the beach in Sydney...I am creating niche product that I know there is a large market for.
BUT before I do anything, I want to prepare a full business plan with thorough financial expectations. I am starting from scratch and trying to calculate my start up costs, running costs, break even point, renovation/design costs..etc to determine how much money I will require to put into the business to make it successful.
I wanted to ask for some help to see if anyone could share an idea of their fixed and variable running costs? Also any advice on websites or assistance to obtain this financial information... I would greatly appreciate any support of advice...
Thanks
Tags: None
- Flag

Leave a comment: