Opening a trendy bar/ cafe

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sai13n

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I'm trying to do some research on opening a trendy bar/ cafe (like Newscafe). If you have experience in this sector, please give me an idea of the startup costs to expect such as rent & deposit, shop fitting, liquor license, initial stock, staffing etc. Also how long did it take to break even and what kind of profit did you make monthly. I know alot of this info is situation dependent, but even if you could just give me a generic idea that would be great.
 
My 2 cents, you need loads of cash, balls of steel and last but not least, Location, Location, Location.
 
All I will say is... Good luck. I hope you are in for the long haul as it is a very demanding occupation.

Are you starting from scratch or will you be converting an existing concern?

I'm asking as it is much easier to trade on an existing liquor license while you wait for your own application to be approved. And wait you will...
 
I'd suggest approaching news cafe to ask what the upfront costs are to open up a franchise, including what they'll do for you etc. then use that as a base line and go from there.
 
For a News Cafe franchise, you are looking at a minimum of R2500000 capital (cash or property or something) that is unencumbered, plus finance for everything else...

I would expect the figure to be at least R5m...
 
I know that its not going to be an easy task, but nothing ventured, nothing gained right? I would like to open it in Jhb, preferably around fourways. It would probably be a 'start from scratch'. Any idea of the actual costs involved?
 
sai13n said:
I know that its not going to be an easy task, but nothing ventured, nothing gained right? I would like to open it in Jhb, preferably around fourways. It would probably be a 'start from scratch'. Any idea of the actual costs involved?
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Fourways area?

Start up costs will be in the region of R10m if you playing in that area I would guess.
 
sai13n said:
I'm trying to do some research on opening a trendy bar/ cafe (like Newscafe). If you have experience in this sector, please give me an idea of the startup costs to expect such as rent & deposit, shop fitting, liquor license, initial stock, staffing etc. Also how long did it take to break even and what kind of profit did you make monthly. I know alot of this info is situation dependent, but even if you could just give me a generic idea that would be great.
Click to expand...

You probably shouldn't be doing this - at least not now.
Running a bar/cafe (even a coffee shop) is actually a pretty specialised skill to do properly and make profit.
You should be able to answer these questions yourself easily, as you've done the research and created a business plan with all this information.

When you're ready, then consider opening a trendy bar / cafe
 
eehellfire said:
You probably shouldn't be doing this - at least not now.
Running a bar/cafe (even a coffee shop) is actually a pretty specialised skill to do properly and make profit.
You should be able to answer these questions yourself easily, as you've done the research and created a business plan with all this information.

When you're ready, then consider opening a trendy bar / cafe
Click to expand...

I get what you're saying, but a big part of business planning is research and startup costs and that's all I'm trying to ascertain here. Forums like this provide an excellent opportunity to learn from those who have already accomplished what you're trying to accomplish. It is not something I would jump into blindly which is why I asked the question of experienced individuals.
 
@OP
What will differentiate your bar from others? I see bars next door to one another, one full with patrons spilling out the doors, other one empty night after night.
 
sai13n said:
I get what you're saying, but a big part of business planning is research and startup costs and that's all I'm trying to ascertain here. Forums like this provide an excellent opportunity to learn from those who have already accomplished what you're trying to accomplish. It is not something I would jump into blindly which is why I asked the question of experienced individuals.
Click to expand...

What experience have you got in the Restaurant Trade?
 
sai13n said:
I'm trying to do some research on opening a trendy bar/ cafe (like Newscafe). If you have experience in this sector, please give me an idea of the startup costs to expect such as rent & deposit, shop fitting, liquor license, initial stock, staffing etc. Also how long did it take to break even and what kind of profit did you make monthly. I know alot of this info is situation dependent, but even if you could just give me a generic idea that would be great.
Click to expand...
Experts?
On myBB?
You obviously haven't been here very long
 
eehellfire said:
Experts?
On myBB?
You obviously haven't been here very long
Click to expand...

Actually there are a a couple of franchise owners on mybb.

Your coffee machine is going to set you back at least 40k. 3 Phase power required as well (for the new models)
 
I wouldn't open a restaurant unless I either knew a lot about the trade myself, or knew someone that did. Ie a business partner, or someone that you already lined up to manage it.

Remember what is involved in running a restaurant/bar:
Finding a location, signing a lease
Paying someone to build it up for you, create your decor, order chairs and tables
Marketing and advertising
Stock ordering, accounting and forecasting - how will you know if staff are stealing?
Menu planning and creation, menu testing
Staff hiring and roster planning
Staff training, health and safety etc

It is a massive job.
 
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