What does it take to have a cafe business

[Silverkris]

On 2/14/2020 at 12:39 AM, Jusnel said:

What she doing in Perth?

Cafe also? 

Yes, opened a cafe in Perth

[noobcarbuyer]

5 hours ago, Jon_cclau said:

 

@ TS - Thread starter, Angcheek & Voodooman and all.

First thing first... I am just stating what we been through and all replies are just my own opinion.  I am not business Guru or try to teach anybody.  So please read with open heart and share your experiences and we learn from each others gracefully.

Firstly, bakery & Café business is very competitive, too many choices in the market.  Initial investment can be quite high also.  As a new business in the market, don't expect suppliers to give you credit term, all COD.  Margin is low due to the rental and manpower, so try to keep other cost as low as possible.

From the beginning, you will have to be very focus who is your target customers.  Location and it surrounding must match your choice of target customers.

We decided at Robertson Quay area because our focus is for the expats living around that area.  The bakery cannot be too localize and must have sitting area and coffee for them.  When the husband goes to work, the wife and kids will find a place to hang around with other wife(s) to chit chat and the kids will run around... so the place have to be kids friendly. 

While business is about making money, another factor which I consider important which keep the business so long and surviving is the passion.  My wife just love doing it.  Every order she received, she will do her best.  Just to quote an example -  She threw away 1 cake (1 hour before customer collection time) which the staff make and redo it herself because it was not up to standard.

Trust me... customers can feel it.  Returning customers is another factor to keep your business running.

Lastly, don't think of short term returns.  Retail business can be quite draggy... very volatile to all kind of situation.  So need to have patience.  If you need the business to provide you as the main source of income, then this business may not be the right choice.

 

Thanks for sharing. 

Retail / F&B are tough industries to be in. Your wife is lucky to have such a supportive husband! 👍

[Angcheek]

9 hours ago, Jon_cclau said:

 

@ TS - Thread starter, Angcheek & Voodooman and all.

First thing first... I am just stating what we been through and all replies are just my own opinion.  I am not business Guru or try to teach anybody.  So please read with open heart and share your experiences and we learn from each others gracefully.

Firstly, bakery & Café business is very competitive, too many choices in the market.  Initial investment can be quite high also.  As a new business in the market, don't expect suppliers to give you credit term, all COD.  Margin is low due to the rental and manpower, so try to keep other cost as low as possible.

From the beginning, you will have to be very focus who is your target customers.  Location and it surrounding must match your choice of target customers.

We decided at Robertson Quay area because our focus is for the expats living around that area.  The bakery cannot be too localize and must have sitting area and coffee for them.  When the husband goes to work, the wife and kids will find a place to hang around with other wife(s) to chit chat and the kids will run around... so the place have to be kids friendly. 

While business is about making money, another factor which I consider important which keep the business so long and surviving is the passion.  My wife just love doing it.  Every order she received, she will do her best.  Just to quote an example -  She threw away 1 cake (1 hour before customer collection time) which the staff make and redo it herself because it was not up to standard.

Trust me... customers can feel it.  Returning customers is another factor to keep your business running.

Lastly, don't think of short term returns.  Retail business can be quite draggy... very volatile to all kind of situation.  So need to have patience.  If you need the business to provide you as the main source of income, then this business may not be the right choice.

 

Thanks for the sharing ...... yap I can understand your points . RQ is a good area , many Ang Mo ..... and Ang Mo like such cafe . 

Your wife's  love for bakery is what that keeps it going .  Great that all is working out well for ya. 

Of course , I too got friends who got refused to give up on their business and,  ended with deeper and deeper debts . Even the marriage broke up.  

 

[Voodooman]

12 hours ago, Jon_cclau said:

 

@ TS - Thread starter, Angcheek & Voodooman and all.

First thing first... I am just stating what we been through and all replies are just my own opinion.  I am not business Guru or try to teach anybody.  So please read with open heart and share your experiences and we learn from each others gracefully.

Firstly, bakery & Café business is very competitive, too many choices in the market.  Initial investment can be quite high also.  As a new business in the market, don't expect suppliers to give you credit term, all COD.  Margin is low due to the rental and manpower, so try to keep other cost as low as possible.

From the beginning, you will have to be very focus who is your target customers.  Location and it surrounding must match your choice of target customers.

We decided at Robertson Quay area because our focus is for the expats living around that area.  The bakery cannot be too localize and must have sitting area and coffee for them.  When the husband goes to work, the wife and kids will find a place to hang around with other wife(s) to chit chat and the kids will run around... so the place have to be kids friendly. 

While business is about making money, another factor which I consider important which keep the business so long and surviving is the passion.  My wife just love doing it.  Every order she received, she will do her best.  Just to quote an example -  She threw away 1 cake (1 hour before customer collection time) which the staff make and redo it herself because it was not up to standard.

Trust me... customers can feel it.  Returning customers is another factor to keep your business running.

Lastly, don't think of short term returns.  Retail business can be quite draggy... very volatile to all kind of situation.  So need to have patience.  If you need the business to provide you as the main source of income, then this business may not be the right choice.

 

Thanks for sharing. Happy that your wife can proudly say that work is her hobby. 

My hobby is still my hobby and I work to pay for my hobby. Man,  i hate Monday!  Lol

[Jusnel]

How about setting up a cafe in JB? 

[Serl]

It seems to me that the restaurant and entertainment business has suffered a lot because of the coronavirus, but in the future I consider this a promising area in business.

[Jamesc]

Open cafe must have something special to attract customers.

Some have cats

Some have dogs

Some have nice uniforms.

I think none has well dress men cafe yet.

Be original and remember tai tais have a lot of money to spend

and are often neglected by hubby. So they tip well.

 

[noobcarbuyer]

25 minutes ago, Jamesc said:

Open cafe must have something special to attract customers.

Some have cats

Some have dogs

Some have nice uniforms.

I think none has well dress men cafe yet.

Be original and remember tai tais have a lot of money to spend

and are often neglected by hubby. So they tip well.

 

Looks like Magic Mike XXL cafe is the way forward. Sure HUAT!

[K_sujadi]

It might quite an effort to start the cafe business, but it will even more harder to find a way to have a good customer retention to keep them return to the cafe.

Location is important, however sustain quality of service and products are even more challenging.

[Watwheels]

This is a tough business. What dominates locally are F&B groups who has that capital to run the cafe chains. Individual privately owned cafes cant compete at their level unless they have similar kinda funding. Even having the know how imo it's not enough.

To me property is the most challenging part, whether it's leasing or buying. Not many can afford to buy. Leasing you will lose to those F&B groups. That's why privately owned cafes start popping up at industrial area. And at places where used to sell hardware are converted into cafes ie. Jalan Besar area near the stadium. I think sooner or later F&B/Hotel groups will also buy up the properties there.

Where is left for you to setup shop? You can strike out those places dominated by F&B groups. Jalan Besar, there's just too many competition. Industrial Park? Residential area? Can compete with kopitiam kopi? Isnt it tough? Most definitely.

Edited June 10, 2020 by Watwheels

[Volvobrick]

It's nicer to just drink coffee at these cafes, or better still, rent the shop space to them! 

[Freeder]

Anyone started cafe already?

[isackl]

Location is really important. Then follow by the capital to setup the cafe and to pay for the rental and security deposit. You will also need to have a very attractive F&B menu in this competitive market. Good luck!

[t0y0ta]

14 minutes ago, mikk123 said:

got money to burn? Keep the money for a COE paper better. At least you can enjoy the ride for 10 years! 🤣

Old thread kena revived?

Actually after COVID over, I see cafes all doing so well and able to find ppl to buy their 6bucks coffee and 30bucks breakfast sets.

I think more should quickly go start atas cafe

[inlinesix]

18 minutes ago, t0y0ta said:

Old thread kena revived?

Actually after COVID over, I see cafes all doing so well and able to find ppl to buy their 6bucks coffee and 30bucks breakfast sets.

I think more should quickly go start atas cafe

No manpower how?

[Kb27]

have tables but no chairs, that way the free loaders won't hang around too long,

they will eventually get tired of standing and move on. 😁

[Jman888]

1 hour ago, inlinesix said:

No manpower how?

this is the worst nightmare now.

[inlinesix]

1 hour ago, Jman888 said:

this is the worst nightmare now.

I always go CSHH.

There is significant reduction in waiter/waitress as compared to pre-COVID.