New business opportunity.

andy

http://www.franchising.quickcrepes.com/

it is 'a recipe for your success'

andy

some facts from the brochure

74% gross margin

bakery take away is growing at 3.2% per year

average per capita spend on takeaway food is £126

A fixed kiosk cost £65,000
A mobile kiosk costs £42,000

Franchise fee is £13,000 (included in figures above)

A crepe costs £2.50

Say you sell 40 crepes a day, except on saturday and friday, when you sell 60.

That's 320 crepes a week.
Crepes account for 60% of your turnover.

Your takings are £1300 per week.

74% gross margin leaves you with £986 after cost of crepes.
From this you have to pay rent, franchise fees and salaries.

One person all in will cost 450 per week (salary, insurance etc)

You're probably left with £100 odd quid a week.

Let's buy one.

David

And compromise my Well Terrace Car Wash Nutella Waffle Stand Loyalty Card? You must be mad.

fordster

yeah, but your pre-tax and interest return on capital, assuming a fixed kiosk and net of 100 quid a week, is only 8%. Post-interest and tax is closer to 5%. Divi yield on the FTSE is close to 4% + is no work!!

David

And _doesn't_ compromise my Wells Terrace Car Wash Nutella Waffle Stand Loyalty Card.

andy

Whichever way you cut it, the return on capital sucks.

But there aren't many high yield, low capital opportunities out there.

Even loan-sharking isn't the moneymaker it was.

There's basically drug-dealing and even the returns there are based around an inordinately high alpha.

David

How about a Whelk & Cockell franchise. Do they even exist? Imagine wheeling one out inbetween the Dairy and Larrick at closing time, maybe even add dodgy hotdogs/burgers and turn it into a Surf n' Turf type waffle cart. Its so bad it'd probably work.

David

<http://www.snappysnaps.co.uk/starting_a_franchise.html>; Is there no business out there that doesn't franchise?

petra

How about this? <http://tinyurl.com/n8jnk>; Stroud Green Ice Cream Store...?

Lucy

what with global warming this is probably viable!

andy

but you'd be competing with the new pappagone gelateria