Re: [silk] One for the chef
Srini Ramakrishnan wrote: So I am not saying that this is your average restaurant profit margin, but the drinks menu is really the killer. Here's a bottle of Cinzano vermouth we had at Barbeque Nation, Hyderabad a couple of nights ago. Cinzano Bianco http://www.bevmo.com/productinfo.asp?area=homeseref=frooglepf_id=0019816 We were charged Rs. 150 per 30ml, i.e. $93.75 for 750ml. A bottle of 750ml costs $6. A profit margin of 1465% Because, of course, a restaurant has zero setup and operational costs, and import duties on liquor are nil too. -- * Madhu Menon Shiok Far-eastern Cuisine Indiranagar, Bangalore Visit us @ http://www.shiokfood.com Phone: (080) 4116 1800 My food photos: http://flickr.com/photos/themadman
Re: [silk] One for the chef
Madhu Menon wrote: Srini Ramakrishnan wrote: We were charged Rs. 150 per 30ml, i.e. $93.75 for 750ml. A bottle of 750ml costs $6. A profit margin of 1465% Because, of course, a restaurant has zero setup and operational costs, and import duties on liquor are nil too. Nice counter-argument. You forgot the cost of liquor license and the occasional baksheesh, recently legalised. If you were to distribute those costs to your sales, how would you do it? You cannot, hence the term break-even. At some point in time, every business breaks even. After that, the setup cost cannot be included in calculating profit. Secondly, even with operational costs and import duties, most (if not all) restaurants have high rates for drinks (not just the alcoholic kind). Try to BYOB, and the restaurant charges corkage. So what is really the operating model here? Wish I knew, or could find out...
Re: [silk] One for the chef
Venkat Mangudi wrote [at 01:10 PM 10/11/2007] : If you were to distribute those costs to your sales, how would you do it? You cannot, hence the term break-even. At some point in time, every business breaks even. After that, the setup cost cannot be included in calculating profit. Sure. However, amortization schedules for setup costs in a restaurant would tend to be in the 5+ year range (I'm sure Madhu can add to that, I'm just making a WAG). Secondly, even with operational costs and import duties, most (if not all) restaurants have high rates for drinks (not just the alcoholic kind). Try to BYOB, and the restaurant charges corkage. So what is really the operating model here? Wish I knew, or could find out... Simple - the restaurant is charging for teh use of its premises and facilities, to the optimum extent that (they think) the market will bear. Udhay -- ((Udhay Shankar N)) ((udhay @ pobox.com)) ((www.digeratus.com))
Re: [silk] One for the chef
Suresh Ramasubramanian wrote: Nobody's closed down CMH Road yet, eh Madhu? Hehe. Actually, Nam Prik Pao can be made in varying degrees of hotness. We make our own paste as well at about medium strength, and I don't like burning the chillies because of the bitter taste it impartes, and of course the smoke. Alas, the Bangalore Metro project is making its way towards CMH Road, so it will only be a matter of time before I need to move. The hard part is finding another location. Rents in the area are apparently touching Rs. 200 per square foot, which makes it difficult to set up shop. A 3000 sq. ft. restaurant would have to pay Rs. 600,000 as rent per month, and that would mean I need to do business of about 30,00,000 per month for the numbers to make sense, which is practically impossible. I'm wondering what the way out is. -- * Madhu Menon Shiok Far-eastern Cuisine Indiranagar, Bangalore Visit us @ http://www.shiokfood.com Phone: (080) 4116 1800 My food photos: http://flickr.com/photos/themadman
Re: [silk] One for the chef
would mean I need to do business of about 30,00,000 per month for the numbers to make sense, which is practically impossible. I'm wondering what the way out is. Find a VC similar to that guy in Dilbert, the Take my money! Take it!!! guy Then syndicate a bunch of your stuff - recipes, prepackaged thai food etc.
Re: [silk] One for the chef
Wow this mail came in dangerously close to the one I sent :-) Adit. On 10/4/07, Suresh Ramasubramanian [EMAIL PROTECTED] wrote: Find a VC .
