wrighty 5,001 Posted June 1, 2014 Share Posted June 1, 2014 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? 2 Quote Link to post Share on other sites
Lisenchuk 4,501 Posted June 1, 2014 Share Posted June 1, 2014 (edited) 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 June 1, 2014 by Lisenchuk 2 Quote Link to post Share on other sites
Lisenchuk 4,501 Posted June 1, 2014 Share Posted June 1, 2014 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. Quote Link to post Share on other sites
Lisenchuk 4,501 Posted June 1, 2014 Share Posted June 1, 2014 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. Quote Link to post Share on other sites
oldmanxfella 3,184 Posted June 1, 2014 Share Posted June 1, 2014 I hope you used local milk. He probably used his own milk. Literally. I bet he's lost his tinfoil hat and ever since the aliens must have been sending him instructions on how to make his own beverages. Quote Link to post Share on other sites
Donald Trumps 5,536 Posted June 1, 2014 Share Posted June 1, 2014 Breakages, pilfering, utilities, rent, rates, payroll taxes, VAT, brown envelopes, etc, etc - it all adds up That'll be £2,000 please TJ Quote Link to post Share on other sites
Donald Trumps 5,536 Posted June 1, 2014 Share Posted June 1, 2014 Quote Link to post Share on other sites
Thomas Jefferson 2,560 Posted June 1, 2014 Author Share Posted June 1, 2014 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. Quote Link to post Share on other sites
Slim 1,355 Posted June 1, 2014 Share Posted June 1, 2014 Stop prying into my personal life with all these invasive questions. 1 Quote Link to post Share on other sites
sarahc 714 Posted June 1, 2014 Share Posted June 1, 2014 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? 1 Quote Link to post Share on other sites
Merkin 1,051 Posted June 2, 2014 Share Posted June 2, 2014 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. 4 Quote Link to post Share on other sites
Lxxx 5,657 Posted June 2, 2014 Share Posted June 2, 2014 Too much time on your hands. You need to get out more, go grab a coffee. 2 Quote Link to post Share on other sites
Merkin 1,051 Posted June 2, 2014 Share Posted June 2, 2014 I'm too hungover to do any real work today Quote Link to post Share on other sites
steven ! 70 Posted June 2, 2014 Share Posted June 2, 2014 Hmmm, a thread that delivers: a bit of the usual mf argy-bargy, some humour, some serious analytical input, and some local interest. Quote Link to post Share on other sites
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