I have been offered a 1,700 sq/ft store right on the sidewalk of a popular South Florida beach (not South Beach). I will be visiting the store in three weeks time but this is what I know so far:
1. Foot-only traffic with very limited auto-traffic.
2. Average 4,000 people per day on a week day and close to 9,000 on the weekends (no rainy days data available yet).
3. Unknown number of people on the beach during six month of the year (potential clients).
4. No coffee shops around. Just restaurants.
5. No Starbucks around on the same beach (5 mile radius). Makes me wonder if they know something I do not.
6. Mega hotel to be opened next door in 2015.
7. Store owners willing to invest in setting up the store and take a percentage of ownership.
8. Currently the store has a souvenir shop.
With this data I can safely assume that on a week day I will have roughly 100 clients and 150 on a weekend. Although the owners may also be willing to provide a few months of free rent to help me start up, I am still wondering how will I break even with just 150 people stopping by.
I know that blue seas, palm trees and sandy beaches may be an attractive place to sit down a have a cup coffee but when the day is over, no palm tree will keep the store in business if it does not makes a profit.
Where am I going wrong in my evaluation.
Your help is very much appreciated.
1. Foot-only traffic with very limited auto-traffic.
2. Average 4,000 people per day on a week day and close to 9,000 on the weekends (no rainy days data available yet).
3. Unknown number of people on the beach during six month of the year (potential clients).
4. No coffee shops around. Just restaurants.
5. No Starbucks around on the same beach (5 mile radius). Makes me wonder if they know something I do not.
6. Mega hotel to be opened next door in 2015.
7. Store owners willing to invest in setting up the store and take a percentage of ownership.
8. Currently the store has a souvenir shop.
With this data I can safely assume that on a week day I will have roughly 100 clients and 150 on a weekend. Although the owners may also be willing to provide a few months of free rent to help me start up, I am still wondering how will I break even with just 150 people stopping by.
I know that blue seas, palm trees and sandy beaches may be an attractive place to sit down a have a cup coffee but when the day is over, no palm tree will keep the store in business if it does not makes a profit.
Where am I going wrong in my evaluation.
Your help is very much appreciated.