Businesses/Shops opening in Cork city/suburbs.

aidanodr

Has anyone noticed the trend?

It seems to be Coffee Shops, Nail Bars, Beauty Salons .. small businesses of that nature that are in the main opening up and being able to do reasonable business? Small amounts of cash for the product, micro service stuff?

I mentioned elsewhere that a few large businesses closed in carrigaline recently. Many other reasons relative to Carrigaline itself to blame for that. BUT the same trend is evident there. Chippers, Betting offices, Beauty Salons, Coffee shop.

Diversity on main streets is very narrow?

normanbond

For every coffee shop opening up...there seems to be another one closing down in the city and suburbs. Good business for catering equipment suppliers and shop outfitters?

aidanodr wrote: »

Has anyone noticed the trend?

It seems to be Coffee Shops, Nail Bars, Beauty Salons .. small businesses of that nature that are in the main opening up and being able to do reasonable business? Small amounts of cash for the product, micro service stuff?

I mentioned elsewhere that a few large businesses closed in carrigaline recently. Many other reasons relative to Carrigaline itself to blame for that. BUT the same trend is evident there. Chippers, Betting offices, Beauty Salons, Coffee shop.

Diversity on main streets is very narrow?

aidanodr

I think the reason for Coffee shops as a possible good small business - if you can make a go of it & if right location - is the MARGIN on each coffee is quiet large apparently? As in 100% plus or more? What other business would you have that?

I have heard that the profit on say self service coffee machines can run into 10s of 1000s per annum per unit ( 20K plus ) .. especially in areas of large footfall eg garages, hospitals and the like

I realise costs need to be considered in all of this, but as a business you might see why its attractive once in right location. The margin I would say is huge in comparison to most other small businesses

aidanodr

aidanodr wrote: »

I think the reason for Coffee shops as a possible good small business - if you can make a go of it & if right location - is the MARGIN on each coffee is quiet large apparently? As in 100% plus or more? What other business would you have that? ..............

Chips would be far in excess of that:)
But 100% margin isn't unusual in retail ....... Fanta Orange Contour 24 x 500ml €12.99 Delivered Price €13.35 (Musgraves) ...... a contour bottle from a shop is well over a €1 ....... any retail outlet I've worked in (4) the margin was 100% minimum iirc. It has to be by the time you pay your rent, staff etc etc

the margin on turning ground coffee beans into Espresso or similar drinks is multiples of 100% of course

I reckon coffee shops are a frequent entrepreneurial venture as you don't need to be qualified or skilled at an anything specifically to have a go. That's why so many fail too of course.

Over the years the amount of folk who mentioned to me "I'd love to have my own little coffee shop........"is definitely in the 10s/20s rather than a handful.

I think many reckon it's a potentially handy enough number but of course like anything it might look that way but any decent coffee shop with a turnover that's providing a salary to raise a family / run a household involves loads and loads of hard work as well as solid fundamentals (location, product etc etc)

the beer revolu

Lads, you can't have more than 100% margin.

If I buy something for 10 and sell it for 20, that's a 50% margin.
50% of the selling price is profit.
That's how margin works.

Yes coffee does generally have a high margin but it is also a pretty low average spend. You need to sell a lot of coffee to make money.

Water John

The owners of the shop franchises eg Centra, have locked onto the coffee margin.
Because the stores have to trade 90/95% through the franchise. Thus they operate a sliding scale of cost depending on TO. As small shop may have the pay the Multiple anything up to €1.40 per coffee.
The small ind cafe, with a good location and good food, will survive. Remember only 1 in 3 Irish people drink coffee regularly. So the offering had to be much broader than that.

MrDerp

My brother in law had a cafe going for a while, he said he needed to sell 1000 cups per week just to cover rates and water charges.

That’s before rent, light and heat, wages, and allowing for waste, and expensive coffee machines

500 cups per day to break even he reckoned. Somewhat brought down by food, but that was a delicate balancing act with stock. If you think about a barista making a cup every 30 seconds, that’s 240 cups for two baristas at morning rush from 8-9, maybe a smaller mid morning rush and some lunch food and coffees. The rest of the day is people sitting with a paper or iPad for 40 mins killing time over a coffee and keeping your tables busy. You’d do well to make a few hundred per day profit, and you’d need a few cafes or a very loyal customer base before you were making the living of, say, a senior IT professional with 10 years experience.

Margin me arse, it’s not sales price - hot water - beans.

He got sick of it after 12 months and sold the lease on.

rob316

People confusing markup with margin.

Coffee has a markup of multiples but the gross margin is on average 80 to 90%. A friend running an independent shop told me a 2.50 Americano should clear before vat a gross profit of about 1.80e

The machines are hella expensive though and break down alot.

You need to be shifting a lot of coffee though to make anything to cover all the other overheads. Like 1000 cups a week

Apologies, I ran with the 100% margin once it was mentioned.... mark up was indeed what I was referring to.
Cheers for the correction & info

Water John

Strange way to do the maths on that. Basically, you work off footfall. The average buy of each person and the different margins of what they buy. Tea and coffee would be one of the higher margin items, food generally less so.

Also to point out, the shop who basically gets the customer to make their own tea/coffee are nearly charging the same money, for an inferior product. They are minting it, unless like I pointed out above, they are attached to a Multiple.

ofcork

I see welch sports are gone now too last shop closing in douglas.

Gamb!t

ofcork wrote: »

I see welch sports are gone now too last shop closing in douglas.

Closing down sale ?

Harika

Gamb!t wrote: »

Closing down sale ?

You missed that by some weeks.

ofcork

Only saw it on paper today.

Curb Your Enthusiasm

They seem to have started a new business, online. 'HockeyWorld'

freshpopcorn

I saw on the Mahon Point Floor Plan that it says new stores opening soon in the places that would have being occupied by Carraig Donn/Pamela Scott!

deRanged

This is a new coffee shop pop-up in a container on Kyle Street, grand opening tomorrow apparently.

calnand

just saw it's being run by Lidl, with all proceeds going to Jigsaw the youth mental health charity, it's there untill Sunday

trik

freshpopcorn wrote: »

I saw on the Mahon Point Floor Plan that it says new stores opening soon in the places that would have being occupied by Carraig Donn/Pamela Scott!

Also the hiking shop is gone.

freshpopcorn

trik wrote: »

Also the hiking shop is gone.

Originally they had down Smiggle was going into one of those units but that seems to have disappeared off the floor plan and put back in the small unit.

blindsider

http://www.thejournal.ie/cork-shopping-centre-4223792-Sep2018/

A SHOPPING CENTRE 3km south-west of Cork city is up for sale, with a guide price of €86 million.

Wilton Shopping Centre, which was constructed in 1979, is situated close to Cork University Hospital with both University College Cork and Cork Institute of Technology also nearby.

The 11,277 sq m of retail space includes a large Penneys and other stores such as Easons, Boots, New Look and Lifestyle Sports. The Tesco that is also on the site is not part of the sale.

Agents Savills said the centre has a footfall of over 5.5 million per annum, and yearly net operating income of €5.54 million.

[More in link]

So where does this leave the development? Was the planning application made to boost the asking price? I presume a sale like this would take quite some time to go through - WHEN a buyer is identified.

So, realistically when would you bet on development starting? Could anything happen in less than 2yrs?

CHealy

blindsider wrote: »

So where does this leave the development? Was the planning application made to boost the asking price? I presume a sale like this would take quite some time to go through - WHEN a buyer is identified.

So, realistically when would you bet on development starting? Could anything happen in less than 2yrs?

It'll be 5+ years if we are lucky. Or never.

rob316

Heard the square deal has been sold again (bought for 5m sold for 7m), demolition work to start in 6 weeks bar the frontage.

hufpc8w3adnk65

rob316 wrote: »

Heard the square deal has been sold again (bought for 5m sold for 7m), demolition work to start in 6 weeks bar the frontage.

Where?

JupiterKid

blindsider wrote: »

http://www.thejournal.ie/cork-shopping-centre-4223792-Sep2018/

A SHOPPING CENTRE 3km south-west of Cork city is up for sale, with a guide price of €86 million.

Wilton Shopping Centre, which was constructed in 1979, is situated close to Cork University Hospital with both University College Cork and Cork Institute of Technology also nearby.

The 11,277 sq m of retail space includes a large Penneys and other stores such as Easons, Boots, New Look and Lifestyle Sports. The Tesco that is also on the site is not part of the sale.

Agents Savills said the centre has a footfall of over 5.5 million per annum, and yearly net operating income of €5.54 million.

[More in link]

So where does this leave the development? Was the planning application made to boost the asking price? I presume a sale like this would take quite some time to go through - WHEN a buyer is identified.

So, realistically when would you bet on development starting? Could anything happen in less than 2yrs?

A cynical and greed-driven motive on the part of the owners of Wilton. The SC very badly needs complete redevelopment. I reckon they have inside information that another big economic crash is imminent...with Brexit and a Trump fuelled trade war with the EU on the way...

...exact same thing happened to Clerys in Dublin. Local authorities must be given powers to enforce the redevelopment of acquired buildings or sites within a minimum time frame or penalise the developers/owners.

Roger Hassenforder

Curb Your Enthusiasm wrote: »

They seem to have started a new business, online. 'HockeyWorld'

Bricks n mortar hockey shop in Ballycureen too.
Place heaving earlier.

ofcork

MrMac84 wrote: »

Where?

Red brick building on Washington street.

Water John

Jupiter, Wilton is being offered for sale with a guide of €86M. Nobody is being forced to buy it. If he can't get that, he either lets it go for less or holds onto it.

ofcork

Its owned by some equity fund who only bought it a few years ago from nama when the original owner went bang who had plans fot it.

Water John

O'Donovan? He had lots of plans but was always operating on the cheap.