Re: [silk] One for the chef

2007-10-11 Thread Madhu Menon

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

2007-10-11 Thread Venkat Mangudi
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

2007-10-11 Thread Udhay Shankar N

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))




[silk] One for the chef

2007-10-03 Thread Suresh Ramasubramanian
Nobody's closed down CMH Road yet, eh Madhu?

http://news.bbc.co.uk/2/hi/uk_news/england/london/7025782.stm 

Burning chilli sparks terror fear

A pot of burning chilli sparked fears of a biological terror attack in
central London.

Firefighters wearing protective breathing apparatus were called to D'Arblay
Street, Soho, after reports of noxious smoke filling the air.

Police closed off three roads and evacuated homes following the alert.

Specialist crews broke down the door to the Thai Cottage restaurant at 1900
BST on Monday where they discovered the source - a 9lb pot of chillies.

The restaurant had been preparing Nam Prik Pao, a red-hot Thai dip which
uses extra-hot chillies which are deliberately burnt.

Nam Prik Pao recipe
Heat garlic and shallots in oil and remove to a bowl
Place red chillies in the pan with some oil and fry until they go dark in
colour. Then set aside
Mix shrimp paste with the rest of the ingredients and pound in a mortar and
pestle
Return the mixture to the heat until it becomes a thick dark coloured paste

But the smell prompted several members of the public to call the emergency
services.

Alpaslan Duven, a Turkish journalist based in the restaurant's building,
said: I was sitting in the office when me and my chief start coughing and I
said this was something really dodgy.

I looked out of the window and saw people rushing and then we heard the
sirens.

Supranee Yodmuang, the restaurant supervisor, was above the restaurant when
she received a phone call from her boss.

It was about 4pm when I saw the police who were closing off the roads but I
didn't know why.

My boss rang me and said I had to get out of the building because of a
chemical attack.

She added: Because we're Thai, we're used to the smell of chillies.

A Scotland Yard spokesman said: The street was closed off for three hours
while we were trying to discover the source of the odour.




Re: [silk] One for the chef

2007-10-03 Thread Madhu Menon

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

2007-10-03 Thread Suresh Ramasubramanian

 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

2007-10-03 Thread Aditya Kapil
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 .