Coffee training Entrepreneurship Class how to make a profit by opening a Cafe

When a person has an ambitious and expectant vision of opening a coffee shop, they usually think of long queues of customers waiting for coffee and cash registers filled with cash. this fantasy makes them sweet for the industry. However, in fact, this is not the case, the reality is not what they think. According to statistics, 95% of food retailers close within 24 months of opening, and if you are careful enough, most of these closed stores can actually be predicted by a professional when they open. But for people who don't know much about the industry, they are likely to make some low-level mistakes, such as improper location, high rent, lack of funds, and so on.

If you have opened your own store and are still struggling to survive, it doesn't matter just to reflect on what mistakes you have made. Forget the mistakes you made in the past, because you can't fix them. What you should do now is to think about what you should do now and find ways to maximize the returns. From a theoretical point of view, creating profits seems very simple, but in the actual business process, it may not be the case at all. Let's first take a look at what profit is. The so-called profit is the net income from the sales of products and services excluding the costs of products and services, as well as other expenses.

The following is a relatively ideal ratio of sales income to various expenses: the raw material cost of the product should account for about 30% of the sales income. Labor costs should account for about 30% of sales revenue. Other expenses account for about 30% of sales revenue (usually include rent, equipment maintenance, etc.) net profit accounts for about 10% (note: the proportion of profit may also increase with the increase of sales income. It is possible to reach 20-30%) several indicators mentioned above may vary greatly according to the specific situation. For example, if you live in a place where labor costs are low, your personnel costs may be much lower than 30% of your sales income; if you buy a lot of semi-finished materials, then your raw material costs may be higher than 30% of your sales income; if the rent in your neighborhood or area is very expensive, then your expense items may be higher than 30% of your sales income. But in any case, if the cost of these aspects is equal to your sales income, or even greater than your sales income, then your store may not make money or even lose money, then you have to consider how to rectify it.

You'd better check and calculate from the cost of your product. First of all, you have to calculate the exact cost of each product on your menu, which should include all the ingredients in the production process, as well as some auxiliary materials, such as detergents, coffee maker cleaners, etc., as well as disposable materials, such as paper, cling film and so on. There is no need to add labor costs and other expenses at this time. Chongqing Brista coffee training entrepreneurial class.

At the end of the month, you need to accurately calculate the total sales this month, and then multiply by the net cost of these products. This is your product cost this month, of course, in a completely ideal situation, we do not consider waste and some misoperation and so on. Divide this number by your sales revenue this month, and the percentage you get is the proportion of the raw material costs we mentioned above to the total sales revenue. If you get a figure higher than 35% at this time, your price may be too low.

Next, you need to calculate the cost of raw materials incurred by the actual method this month. Usually you have to settle the raw materials once a month. After closing on the last day of the month, you have to sort out the list of all materials, including all raw materials, auxiliary materials, packaging costs, etc., sort out the unit price of each item, multiply it by the inventory of these items, and then add up these figures. this figure is the balance of raw materials for the month.

Then, record the price and quantity of newly purchased raw materials next month and make a list. At the end of the month, the balance is calculated. The above figures are needed to calculate the proportion of raw material costs to sales revenue. The formula can be understood as follows: balance at the beginning of the month + purchase at the end of the month-balance at the end of the month = the actual cost of raw materials incurred this month, the actual cost of raw materials this month / this month's sales revenue = the proportion of raw material costs to sales income.

For example: you have 2 apples at the beginning of the month, you bought another 100 apples this month, and you have 10 left at the end of the month. So the amount of apples you spend this month is 2, 100, 100, 10, 92. If your apples are 1 yuan each and sell for 3 yuan each, then the above formula becomes 2 yuan + 100 yuan-10 yuan = 92 yuan, 92 yuan / 276 yuan = 33.3%, so you can get two values of the ideal monthly cost and the actual cost. Compare these two percentages. Ideally, the percentage should be a limit, you can't go any lower than this percentage, and your actual value should be as close to the ideal value as possible. What you need to estimate and determine now is how much beyond the ideal value is a reasonable and acceptable quantity. Usually we think that more than 1% of the ideal value, 1.5% of the price is within the normal range. If the actual value exceeds the ideal value of 3%, 4%, 5% or more, you should check where the loss is. Factors that can affect raw material costs include: product decay, waste in the production process, overproduction, product theft, and cash theft (the theft of cash may make you feel that the price of raw materials has increased).

Labor cost is also an issue that you must consider in the process of doing business. First of all, you need to know how much your staff should cost according to the daily workload. Then, at the end of the day, figure out how much you actually spend on staff. Compare these two numbers so that you know when staff costs are overspent, and it is also convenient for you to manage staff expenses in the future. If you don't check your daily staff expenses, I'm sure you'll probably overspend at the end of the month (which may be the main reason for your overall loss).

Finally, you need to check other possible costs and reduce expenses as much as possible without reducing the quality of your products and services. Some expenses may be uncontrollable, such as rent, taxes, etc., but many other expenses can be controlled, and you can control expenses as much as possible.

If your raw material costs and labor costs are within a reasonable range, and you cut expenses as much as possible, but still can not make a profit, then it is likely that you are underselling. Of all the ways to generate profits, increasing sales is the simplest and most direct way. As long as the sales are large enough, you don't even need any operational skills to make your business profitable. But if there is no sales, or the sales are insufficient, it will be difficult for an experienced manager to make a store profitable.

If you want to do some sales promotion, you should consider your selling point objectively. Do you provide high quality food and beverage products? Are your customers satisfied with your service? Is your storefront clean and tidy and the decoration attractive? You have to make sure that after you attract new customers through your promotions, they can like your products and become your repeat customers.

If you are confident about your sales promotion, then you can carry out marketing activities. In the marketing process, you need to focus on two main types of customers: those who are already your customers, and those who have never been to your store.

In addition, you need to make sure that your receptionist can effectively help you increase sales. You can pay attention to the fact that your receptionist asks "would you like a large cup?" when the guest orders but doesn't specify the size of the cup, or "which cup do you want?" Does your receptionist recommend something to eat to match their drinks after the guests have ordered a drink? In your store, the person responsible for ordering customers can help you increase your sales to a great extent.

In most cases, guerrilla marketing (as opposed to traditional large-scale marketing) is the most effective marketing method for customers who have never been to your store. A coupon offering free drinks may be able to "invite" people who work or live around the store. This method is much cheaper than traditional advertising, but the effect is better. If your actual raw material cost is 30% of the sales revenue, then you only sell the product with 30% of the sales price, but the actual value is much more than that.