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Mmm Mmm. Enjoying a homemade latte. Adjusted cost of ingredients: 30p. Let's say I decide to pay myself the minimum wage and calculate how many minutes it took to make, it would add up to 50p. Now, if I add up the cost of electricity and rent during the time period of making the latte, it comes to a grand total of 53p.

 

So please remind me again why the average coffee shop charges about £2.70, given that they have greater economies of scale?

How much did your coffee machine cost, and what is your allowable rate of depreciation on the capital outlay?

 

Or by latte did you just mean you added own brand coffee to some of your warmed 'milk' and drank it out of a rolled-up newspaper?

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Yey!! Someone who actually knows what they're talking about. Apply similar logic to any business you think is a licence to print money. Then consider you don't operate on your own terms unless you are

I notice the IOM Creamery is advertising on the radio for two production engineers to relocate here. Don't we grow any Manx engineers here (etc etc)?

I don't think £2.70 for a cup of fresh coffee is unreasonable. Lets work it backwards:   Rent say £30,000 per year Rates say £3,500 per year Wages say £40,000 per year Utilities say £3,000 per y

I notice the IOM Creamery is advertising on the radio for two production engineers to relocate here. Don't we grow any Manx engineers here (etc etc)?

I heard those vacancies advertised on Manx Radio 3 times last night.

 

Specifically aimed at offshore applicants,they're even offering a generous relocation package.......Think local there yessir.

Edited by Lisenchuk
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Mmm Mmm. Enjoying a homemade latte. Adjusted cost of ingredients: 30p. Let's say I decide to pay myself the minimum wage and calculate how many minutes it took to make, it would add up to 50p. Now, if I add up the cost of electricity and rent during the time period of making the latte, it comes to a grand total of 53p.

 

So please remind me again why the average coffee shop charges about £2.70, given that they have greater economies of scale?

How much did your coffee machine cost, and what is your allowable rate of depreciation on the capital outlay?

 

Or by latte did you just mean you added own brand coffee to some of your warmed 'milk' and drank it out of a rolled-up newspaper?

Like his fried flour and water(bread allegedly) I'm sure it's delicious.

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You think they pay 3 pence in rent for every cup of coffee they sell?

 

Oh, do you think they're paying £2.17 in rent every 2 minutes?

Wages,insurance,cost of ingredients,losses of perishables that go in the bin,heating,cleaning products,electric/gas,cost of commercial bins and more.

It isn't just rent overheads fuckwit.

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Mmm Mmm. Enjoying a homemade latte. Adjusted cost of ingredients: 30p. Let's say I decide to pay myself the minimum wage and calculate how many minutes it took to make, it would add up to 50p. Now, if I add up the cost of electricity and rent during the time period of making the latte, it comes to a grand total of 53p.

 

So please remind me again why the average coffee shop charges about £2.70, given that they have greater economies of scale?

How much did your coffee machine cost, and what is your allowable rate of depreciation on the capital outlay?

 

Or by latte did you just mean you added own brand coffee to some of your warmed 'milk' and drank it out of a rolled-up newspaper?

 

 

Stop prying into my personal life with all these invasive questions.

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I notice the IOM Creamery is advertising on the radio for two production engineers to relocate here. Don't we grow any Manx engineers here (etc etc)?

I heard those vacancies advertised on Manx Radio 3 times last night.

 

Specifically aimed at offshore applicants,they're even offering a generous relocation package.......Think local there yessir.

Wonder how much they'd pay to move me from Douglas to Braddan?

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I don't think £2.70 for a cup of fresh coffee is unreasonable. Lets work it backwards:

 

Rent say £30,000 per year

Rates say £3,500 per year

Wages say £40,000 per year

Utilities say £3,000 per year

Insurance say £1,000 per year

Cleaning + products say £3,750 per year

Promotion say £1,750 per year

Accountancy/professional fees say £2,500 per year

Depreciation of assets say £2,500 per year

Redecoration/decor say £750 per year

 

So without buying a single bean of coffee, sugar or milk you would need to find £88,750 per year. The breaks back to 32,870 cups of coffee at £2.70 or assuming opening hours of 8 am to 6 pm it means 90 cups per day just to break even. Add the cost of the coffee, sugar and milk into the mix and you would need to sell a lot more.

 

Bear in mind, this has not allowed the owner of the business to take a wage themselves. Assuming they would need to take a minimum of £50,000 to make it worthwhile, they need to be selling 51,389 cups per year or 140 cups per day, excluding cost of ingredients.

 

Obviously the above is simplistic and doesn't include for the initial purchase of the coffee making equipment, which I imagine would be £15,000 and the cost of setting the premises up including purchase of cups, tables, artwork, sofas, interior design and tills etc which I imagine would be £40,000. It also excludes food sales which would help.

 

Based on the initial point which was £2.70 for a cup of coffee is unreasonable, I don't agree.

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