Is it necessary for the cafe to keep losing $40,000 a month?

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In the new year, the coffee industry is still bidding farewell to the old and welcoming the new. Some people have changed careers to bid farewell to the new year, but there will always be people decorating ing. In the business of independent coffee shops, people continue to come forward one after another.

"Coffee completely changed my life and became a debtor." This sentence comes from a contestant who is worried about his business. After investing 2 million yuan in the early stage, he recently found that not only is the cafe likely to make no profit, but the loss has become even clearer, losing 40, 000 a month. So he launched a vote to ask everyone's opinion, "is it necessary to stick to it?"

Perhaps because of the huge amount of investment, the story of the store aroused the curiosity of many passers-by, for one thing, they wanted to know where such a large amount of money was spent, and what was the significance of insisting on it when the losses were heavy.

In response to questions from netizens, the boss also replied frankly: because of the investment from shareholders' friends, his cafe was expanded in October last year, and now it has an area of 120 square meters and a transfer fee of 600000. Three months of renovation preparation costs, plus monthly rent of 50, 000, two mortgages and one rent, so it cost nearly 2 million, to say the least.

In his view, the location of the store is first-class, and he thought that people's consumption was not low. At first, he also planned to operate in the mode of daily coffee and night wine, but he did not expect to face such a dilemma three months later. No, no, no.

On the one hand, the head brand has broken through the scale of ten thousand stores, and cross-border players have joined one after another, and the density of coffee shops is getting higher and higher; on the other hand, coffee prices continue to roll in, even falling below single digits. Since the summer vacation last year, "closing shop", "transfer" and "loss of money" have become several major situations that countless catering entrepreneurs can not avoid. Now, the catering industry is in the cold winter, people's spending power has declined significantly, and low-cost coffee is rampant, making it even more difficult to be an environmental shop.

Therefore, at the beginning of the vote on whether to insist or give up, the result is obvious. Seeing such a huge investment and loss situation, more than 80% of the netizens finally cast a vote of "stop loss in time" and persuaded the "shop warrior" to close the door one after another. Instead of expecting to return the money by selling coffee and waiting for a miracle that does not know when to happen, it is better to give up the track for the time being and at least stay in the green mountains.

Of course, there are some netizens in the comment area who agree that the boss should keep the store open. "of course, if you insist on it, it will be fine after the year. Baiye will recover, and then the coffee will make a lot of money."... "Don't be afraid, stick to it, it may turn around."

Some netizens believe that this issue should not be left to netizens to decide whether or not to continue to open, the key lies in whether the store has seriously examined and evaluated the business situation. Why is the store losing money, is it possible to break even, and how can it be done? If there is any hope of turning a loss into a profit, stick to it, and then re-analyze the location of the store, the surrounding population, product type pricing and other details, as well as draw up a reasonable response plan.

Considering the huge cost of the upfront investment, the cafe has become the boss's whole painstaking effort, and he is really not willing to give up everything, so in the end, he decided to continue to struggle for four months and just close the door.

When talking about the operation status of the store and the self-rescue plan, he said that he is currently working on increasing the product line, launching more food and coffee combinations, and making breakfast breaks, hoping to increase customer unit prices and turnover rates by lengthening business hours. Later may also create an indoor environment, through the construction of scenes and the purchase of trendy objects to create an ambient space.

Finally, it is said that investment is risky, and you need to be careful to start a business.

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