New Shop Question

winderbean

New member
Jun 9, 2005
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Hi all. I am new to this forum and I need your help.

My wife and I are looking to open a new coffee house in our neighborhood but we aren't sure if we have the right location or not. Here's the "skinny":

We live near a fairly affluent part of Orlando, FL. The road we are looking to place the coffee house has nothing on it for 4 miles in each direction (when I saying nothing I mean no other businesses or strip malls, it's all residential and it is growing like crazy, the pop in a 3 mile radius is 6,000 people and is expected to jump to 9,000 in the next 2 years. The 5 mile radius pop is 39,000).

The county has just approved a strip mall for the road. It will have a dry cleaner, chinese rest, wing bar and grill, dentist, pool supply store, nail salon and if doable, my coffee shop.

The average number of cars per hour between 7 - 8AM is approx 700. and road is always "buzzing". The are more cars going South than north and I would be on the North side (450->South ... 250->North) however there is easy access to our parking lot from either side of the road. OUr shop faces the road also.

My rent would be 3,900/month for 1400sqft which includes the Common area

I want to sell espresso, coffee, danish, muffins, bagels and specialty desserts. I spoke to neighbors and they all say "it would be great for the area" since the nearest starbucks or other coffee shop is 15 minutes away (their is a conveniece store 5 miles away that sells watered down coffee though.)

I am concerned that 1) it's not in a high foot traffic area and 2) I am not sure how many vehicles to expect each day. The lease calls for 5 years commitment and that makes me a little nervous.....especailly if the traffic doesn't come.

I really think I can draw the Mom's and the young adults in the area by offering wifi internet access (hotspot) and by having weekend entertainment but I am new to this and maybe a little Naive? If we are the only spot in town won't that help?

Can anyone provide there experienced 2 cents...help is appreciated.
 

celement

New member
Apr 17, 2005
130
0
Modesto, CA
Lots of Rent

$3900 a month? I don't know your market, but it sounds like the landlord has you nailed on that - that seems extreme to me. I rent space in California on a blvd with 40,000 cars a day and mind you I'm only a drive through with no sit down but I pay 1500 a month including cam, utilities, and exterior maintenance. Plus I know my own market in California and we can get 1000 to 1200 square foot retail spaces here for less then 2k...again I just don't know your market.

Mathematically I'm not affraid of 3900 rent if I feel the business is there. However I want to have my rent be no more then 15% of my gross sales. That would mean $26k in gross sales a month for you - almost $1k a day...is that feasible for you? Could be...could easily be I don't know.

Whats the likelihood with all the growth in the area that another strip center is going to happen in the next few years?
 
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winderbean

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Jun 9, 2005
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I called the city and there is only 1 other commerial lot available and it's about a 1/4 mile down on the other side of the road. I strip mall will be going there but it will not be accessible from the main artery as my is. And it will not be developed for another 3-5 years. Other than that, I would be the only game in town for a while.
 
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winderbean

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Jun 9, 2005
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Clement....I was just able to negoiate the rent down to 3500/month but still leave revenue at 23K if I want to keep the 15% ratio you mentioned.

Does anyone have an formula for determining what one can guestimate the revenues for a given store in a given location? Or even, what is the avg amount of expenses for an avg coffee house (cups, coffee, espresso, sugar, cream, etc.) for a month?


We are ready to pull the trigger on this but am concerned about meeting daily sales.
 
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