MBA Project

[dunahoejp]

Hi all--
I am participating in an Economics project which is a hypothetical case of taking Peet''s Coffee & Tea into China. One of the key parts of the project is determining a break even analysis for a store. I having some difficulty in deriving store level costs for Peet''s (or any similar specialy coffee operaton). Specifically, I am trying to estimate the sources of revenue and expense categories associated with a retail operation along with any cost ranges. I appreciate any feedback on this topic or other items my project team should consider.

 

[NW JAVA]

Wow, you are asking alot; honestly for any one here to share. The variables are in-numerous. the demand, the exchange rate the pay for labor, marketing , obtaining green beans to roast or buying roasted/importing roasted coffee beans. The lease cost ......whay not study Starbucks-they are already there.( China)

 

[dunahoejp]

Thanks for the response. If it's easier, you can ignore the China part of the equation. We just want to understand the typical costs/revenues of a chain-like coffee shop. For example, we believe revenue is derived from beverage, food and whole bean (bag) sales, but don't have a sense for what the ratios are. We can address the typical costs for leasing, but what is typical payroll (or how many employees per shift), supply costs (milk, coffee-how much do you go through a day?), equipment costs.

I'm sure I'm missing other obvious items. We have looked at a number of Starbuck's cases, but none has this kind of granularity.