What does it take to have a cafe business

[Voodooman]

I always thought opening cafes in SG are the preserve of sons and daughters of the rich and famous.  Need to have lots of money to burn and to understand what consumers with hours to spend to la $6 kopi really want.  

I hope you are not thinking of starting the business now?

 

 

 

[RogerNg_185295]

12 minutes ago, Voodooman said:

I always thought opening cafes in SG are the preserve of sons and daughters of the rich and famous.  Need to have lots of money to burn and to understand what consumers with hours to spend to la $6 kopi really want.  

I hope you are not thinking of starting the business now?

 

 

 

It takes a brave man to start any business in this type of condition. 

[BenTong]

Start at hawker centre first la.. if ppl no buy your $1 kopi u think they buy your cafe coffee

[Jman888]

12 hours ago, Jusnel said:

As per topic. 

I'm exploring cafe business as viable business? All along, I love to work with food and always felt happy if a customer enjoys the food.

It may not be a full menu.  Even a cafe that serves pastry and drinks will be nice too.

What are the things I need to know.

How to spot a good location.   Look for buy overs.

do more homework, try to visit the similar concept cafe that you have in mind, visit them day and night, weekday and weekend.

Look into their menu and why their business is good (or not good). What are their selling points, how they promote their biz, services, onsite & online.

good location is hard to find, if concept not good, high traffic will help. If concept is good, ulu place people will still come.

If good biz people won't sell, not good free also dun buy.

[Freeder]

5 hours ago, BanCoe said:

I only table wiper in kopitiam my boss is @Freeder wat can I say ??......... but konsult @Carbon82 for best bakes 

U can wipe the seats of those chio bus but pls dun Tabao them

 

[Lala81]

F&B is brutal. Good luck if u want to proceed. 

[BanCoe]

1 hour ago, Freeder said:

U can wipe the seats of those chio bus but pls dun Tabao them

 

Ok Bosch 

[BanCoe]

I cannot even swallow those $5/$6 coffee /teas ..... maybe those in CBD can take them in fashionable areas , sipping away slowly whilst I gulp it down ..... I still like the coffee shop $1.20-$1.50 type 

[Celicar]

Sometimes you start of thinking that you are fulfilling a dream but it ends up turning into a nightmare.

Hope your venture is not that. All the best.

Hawker centre kopi for me any day. Including Sundays.

[Count-Bracula]

14 hours ago, noobcarbuyer said:

You will need to be prepared to lose your entire capital and more.

F&B is cut throat enough as it is. 

Cafe is the worst. 1 customer can occupy one table with one small coffee for hours on end. 

Somemore you are looking at a bare bones menu that won't encourage return customers. 

Have you considered pop up stalls or pasar malam? 

you are right about the hoggers.

Now with smart phone lagi jialat

 

[Count-Bracula]

1 hour ago, BanCoe said:

I cannot even swallow those $5/$6 coffee /teas ..... maybe those in CBD can take them in fashionable areas , sipping away slowly whilst I gulp it down ..... I still like the coffee shop $1.20-$1.50 type 

Ang mo kopi not nice lah, like drinking coffee flavoured water.

Anyway, location may not be crucial if food is good.

Foodies sure hunt you down no matter where you are.

[Tianmo]

close friend of mine, invested $280K in a cafe for his daughter to run.

The cafe lasted 15 months, first 4-5 months was alright, the last 10 months see red every month, until decided to cut loss before the 2 years lease was up. 

Total lost in the end...

[Jman888]

2 minutes ago, Tianmo said:

close friend of mine, invested $280K in a cafe for his daughter to run.

The cafe lasted 15 months, first 4-5 months was alright, the last 10 months see red every month, until decided to cut loss before the 2 years lease was up. 

Total lost in the end...

always the daddy's money, young people always say they have a dream, never mind it was a short one cos they are not the one paying  

[Tianmo]

6 minutes ago, Jman888 said:

always the daddy's money, young people always say they have a dream, never mind it was a short one cos they are not the one paying  

ah lao only got 2 daughters, money also sooner or later belong to them, so they say "borrow" lor, ah lao take it as "advance" from her share.

But never tell her...

[Othello]

2 hours ago, Lala81 said:

F&B is brutal. Good luck if u want to proceed. 

dun need luck lah, just enough money 

[RogerNg_185295]

39 minutes ago, Tianmo said:

close friend of mine, invested $280K in a cafe for his daughter to run.

The cafe lasted 15 months, first 4-5 months was alright, the last 10 months see red every month, until decided to cut loss before the 2 years lease was up. 

Total lost in the end...

They got no experience. Passion and money can only take them so far.

[PSP415]

Just these :

Own money

Own line

Own person

50% won.

Other 50% - location, rental, food quality and luck.

Own money - u will spend wisely cos each time use own money, u feel the pinch. If borrowed, u spread out repayment of loan so not so painful. And ppl usually be very eager to multiply sales figures as recurring monthly but in reality, customers may come to try once only. Hence, that beautiful numbers only on own calculator.

Own line - good to know the trade inside out so will not be so easily fooled or cheated by vendors. Ppl stay with a trusted but more expensive supplier for a reason. So cheap may not always mean fresh or good.

Own person - best no partners. Everyone wants to be boss, name card are also Director title. Always have suggestions one but when fail, will run off with their share and sometimes everyone else as well.

Sleeping partners can suddenly wake up in good times and want to eat up everyone, i mean their shares. If not will force you to buy up theirs at an interesting %. U may be forced to borrow more to pay.

Kitchen space should not be so big that u have few tables n chairs in cafe. Those tables n chairs, if good turnover, will translate to money coming in. Big kitchen are wasted space. But u cannot turn to move and hit a wall everytime ya.

Some good businesses have been known to move or close due to high, higher, highest rentals at each lease renewals.

Cannot underestimate this aspect. Because it can really break your heart, i mean piggy bank.

If u decide to proceed, share with us here location and menu. Oh, pls wait till this Covid-19 is over. However,  during this period, if your cafe say give out 1 free surgical mask with every meal set ordered, u may proceed. 😂😂😂

Just sharing some observations. I love to eat only. 😅😂😂

All the best!

Take care and really need to set aside at least 1 year's rental if u plan on surviving abit longer. That's my personal opinion only.

Safe ride

Cheers 

[Silverkris]

I will say go for it to chase your dreams......

But my cousin finally gave up the idea of opening a cafe in Singapore due to:

1. High rental charges (and the trend in Singapore is that if your business is well, expect rental to go even higher very soon)

2. Short of manpower 

3. Cannot charge premium as competition is tough

 

But she did went to perth to chase her dreams there and is doing well.