Asked by Anonymous
Asked on 06 Jul 2019
How does one setup a coffeeshop business? What is required? How much initial capital must one have to setup a coffeeshop biz at say Sengkang HDB areas? How much profits are they looking at from just collecting rentals from the F&B tenants ?
You definitely need to be able to gather a pool of interested stall tenants before even considering this business.
If you were to purchase an entire existing coffeeshop if may cost you around $5000 psf and up. Leasing it would probably cost you about $30psf per month; a small coffeeshop probably around $75,000 - $120,000 each month.
Refurbishing/Creating a new layout for a bare unit would also incur huge costs.
Profits would probably be about 10-20% of subletting rental revenue? Largely depending on how you run your business. Coffeeshops like kopitiam/food republic i’m sure charge tenants a percentage of their gross turn over(GTO) as well as charges for the cleaners/utilities/branding?
However you do undertake huge risk as well as difficulty in managing the coffeeshop, providing and ensuring quality, consistency, diversity of stalls
So it is a highly competitive and capital intensive business to be in. When successful however, very lucrative.