BKKDreamer wrote: ↑
Wed Jan 18, 2023 10:05 am
What do you think ?
Very interesting. Almost meriting a separate thread.
I had heard reports of high rents in Jomtien, so 10,000 is lower than I thought.
Beer costs 80 to100 baht. I can buy the same in a 7-Eleven for 40, so let's assume they buy for 30, giving a gross profit of 50 to 70 baht per beer.
Excluding staff but including the manager, I make that 28700 of fixed costs, so approximately 1000 per day. They need to shift 20 drinks to break even, at the lowest Jomtien price of 80 baht per drink.
That doesn't seem unreasonable for any reasonably successful bar.
Ten customers buying 2 drinks. Or one visit by a certain board member....
I've excluded other staff, as I understood many were freelance and only getting the extra 50 baht from a drink, plus tips. Now whilst bar boys tend to plead poverty, every one I know in Jomtien claims to be freelance and they certainly can come and go whenever they like.
I would like to understand that cost better. Perhaps that's for the bartender, who needs to be there and couldn't really be freelance ?
Deleting the 6000 baht cost for playing Thai music seems like a no brainer, when over 50% of the customers are foreign.
Depreciation of fixtures and fittings has also been ignored.
The 500 baht needs to buy access to an acceptable toilet and access that cannot be withdrawn.
The other aspect is what upselling can be done ? e.g. Higher margins on premium beer. Bar snacks. Anything else WITH A LONG SHELF LIFE.
Divarium even offers a decent food menu, but I think that's higher risk and more difficult to do in a small bar. The other thing Divarium do is have the cute bar manager wander around wearing very little and greeting customers. That must help to attract customers.
Also, if he later wants to expand and move to better premises within the complex, is it another 30,000 ? Or can that be transferred ? I would want to know the answer.
I wouldn't touch such a business with my own money, but of course I suspect you are talking about someone who knows this sector.