Book Review Webinar

“In their funny, witty way, Hugh and John are like a stern but kind grandmother who will always make sure you've done your homework before going out to play! Buy it!”

Generally speaking (and I'm aware this is probably a very difficult question to answer as so many other factors would need to be known), would it be better to

a) buy the leasehold of an already established business that's turning over 2-3K per week and struggling with making any net profit (so I can get it cheap)? OR

b) buy the leasehold of a currently closed unit?

I guess what I'm asking is - are there any really strong arguments for not considering one of the above two options? Either way, I'd be refitting the shop.

I'd like to sneak another question in, if that's okay. If it were you, how much money would you realistically want to start with to set up to give you a realistic chance? Just a ball-park figure.

“My question/topic for the webinar is about pay and rewards in relation to motivating staff. I am interested in what you have done and what other successful operators do in relation to how they set their pay rates for staff.

For example, thoughts on a higher hourly rate versus a lower hourly rate plus performance based benefits.

I'd also like to know the staff % I should be aiming for in a business where coffee, smoothies and cakes are key but food is also and the prep level is medium (we make our own sandwich fillings but do not make the bread).”

“My first questions is: How can I find out what the market want, how much they are prepared to pay, how much sales I can plan to get. I now some ways like asking people but I want other ways.

Second, I live close to a main road for transports thru Sweden and I reckon a drive thru would be good, is this good for profit? how much is the investment for equipment? what to think about regards to menues and prices etc for drive thru?

Third, I have thought of having conference rooms for companies in the area to rent for board meeting, other meetings out of office with catering, have you tried this? can this be a profitable thing? divide a room or two with soundproofing and table + large plasma to show slides.

Fourth, Have you tried having a indoor playground to get mothers/familys and kids? what is the recommended prices for these things? how large should they be? what is the negative? Will this possible improve sales? what else to think about this?”

“I have nearly finished the build out of my shop in Birmingham. I have ordered one of the best espresso machines (Synesso) and sourced beans from one of the best micro roasters in England (Hasbean). My question is

"When should I actually open the doors?" Should it be when everything is fully

ready? When staff are hired and fully trained? When all systems are in place? When all music has been chosen? When website is up and running? When food offerings have been carefully chosen?

If everything has to be just right, then I would never open.

Sorry if it is a silly question.”

“I would love to hear any advice you have on those initial first days of opening and how to hide from the customers any hiccups you may have!!”

“OK - How should I implement a loyalty programme which is go for the customer but ensures I have the most profitable customers coming back.

We have the espresso (very profitable), lattes etc, tea (very profitable) and cupcakes (homemade)”

“Hello John , My question is does filter coffee still have a position in today's cafe latte and cappuccino society? I am looking to invest and would like to know from you chaps that it is a wise investment?”

“Is it a good idea to try and source all my take away packaging abroad (China). And if so, what’s the best way to go about it?

I’ve noticed a considerable difference in price between sourcing from the UK and sourcing abroad.”

“My question is this: do you think cheesecake and coffee drinks are a good combination to serve to customers ?”

“We roast our own coffee and have been approached by a few people to use it in their coffee shops. They love it. We provide not just the beans, but we give them support, including marketing tips and advice. It's not as profitable as bundling in cups, cleaning products etc like other suppliers do, but our customers know we're working with them and we believe they'll be more loyal in the long-term.

We'd like to approach other businesses. But I'm keen for ideas to help us get in the door.

I don't know where to start; going door to door doesn't seem like it's efficient or well received, I don't know if we should be calling, or sending a letter or . . ”

“My husband and I own have owned a Café/Coffee shop in Newcastle for the last 6 years. We are thinking about opening café no 2 in a different town. However you hear many stories of people saying that opening a second place was their downfall and they should have stuck to just one place. What are your thoughts? Could you give us any advice? Do’s and don’ts?”

“When you are hoping to get some financing from a bank or investors, HOW HOW HOW do you estimate your financials? How do I know how many coffees I'm gonna sell the first day/week/month/3 months/etc? It's so far from anything I can envision! I've tried just sitting there imagine the doors opening the first day, guessing the flow over the next few months according to holidays, season, etc, but this aspect of a business plan has be practically paralyzed. HELP!”

“My question would be, as we are just starting out, what is the single most important piece of advice you could give us/ what is the biggest mistake people make when opening a new coffee shop?”

“I set up a coffee shop 15 months ago in a very busy area of Edinburgh. Down side being that there are quite a number of other coffee shops with my being the latest entrant.

The turnover started small and has been growing (the three month like for like sales are up 43%, 25% and 24%). Food margins and strong and consistent. Problem is that although the turnover is up quite a bit, its from a low base and I am still way off what I need to make this a worthwhile venture. I would really need to see very significant increases over the next 3-4 months or I see myself selling up. I have tried the techniques set out in your books and your very useful web casts but to no great effect. Shop looks good, has great staff, food and coffee, regular customer base and excellent feed back on the web and through comment cards. I have tried breaking down the day as one of your books suggested. Lunch is already strong but getting a strong flow of folk in the rest of the time is proving extremely difficult. I have tried to make my USP the offering of quality food and coffee but folk still seem to flock to the neighbouring chain stores and better established independents. ”

“1. Realistically, how long should I allow for a shop fit out (with no existing commercial kitchen but not in need of any major decoration or structural work)?

2. Who should I get involved with the fit out? Who should I be looking for to produce a coherent design (where and what size the kitchen is? how many and where shall I put the toilets? etc)?

3. Any advice what-so-ever on setting up (things to avoid, look out for, must do)? ”

“How do you see the priority of ethical consideration of customers in coffee shops today, and how do you see it developing over the next 5 years? ”

“Having read your books and talked to people in the industry I know understand how tight the costs have to be managed to make a net profit of between 10-15%. I know if you every do a spread sheet of figures you would never end up starting a business however is it achievable to create more profit? Or is it the industry norm? Arh, so there I have a question for you.

I'm being very realistic with the a projected turnover of 120k which does not seem to make a hugh profit. My concern is that with even controlling the overheads and costs it's easy not to make a profit at all. Is this the main area why cafes fail. OK so that's another question but hopefully you seen where I'm coming from. ” TBC…

Continued…“1- What makes a coffee shop successful

financially (personnel, product, offering, location, key add-ons to coffee - sandwich, cake...)

Continued…“2- What is the revenue and cost breakdown

structure (major revenue components in percentage to total revenue, major cost components relative to Cost Of Goods Sold)”

Continued…“3- Where do coffee shop fail and why - similarly

how do coffee shop succeed and why?”

Continued…“4- If you have to build a new coffee shop

concept today from scratch, taking into account Starbucks and all the range to the van with a coffee pot, what would you build and how would you differentiate from the competition.”

“We have a superb offering of coffee, teas, non alcohol drinks, cakes,Panini’s and sandwiches, soup and deli goodies.

I have known this site for 9 years and am well known.

There has never been a successful operation on this site, and I havesuccessfully managed to get a complete kitchen (small) refit and foharea refit at the clubs expense.

We have potential clients from a base of workout diehards; people whothink they workout hard but still want their sugar, trainers and staff.How do I attract the customers to the new operation with price, menu,and retain them?”