What do I need to setup a HDB Coffeeshop Business? - Seedly





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Asked by Anonymous

Asked on 06 Jul 2019

What do I need to setup a HDB Coffeeshop Business?

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 ?


Answers (1)

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Javier Lim
Javier Lim
Level 5. Genius
Answered on 27 Jul 2019

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.