Vagabond for sale

CrouchPotato

Guys! Vagabond N4 is apparently up for sale. Cornerstone of N4, hub of local nice-ness and home to the worst toilet on the street. Is there anyone out there who could keep this going?? http://uk.businessesforsale.com/uk/a1-cafe-and-coffee-shop-north-london-for-sale.aspx

TheMimsy

I wonder what is prompting the sale and if they are keeping the other branch on Holloway Road...

miss annie

The one in Holloway is bigger and busier. There's a huge rate rise coming in the Spring for all bricks & mortar high street premises, perhaps they've worked out that something that size won't give them the returns they need.

The mark up on coffee is insane but there is a ceiling on how much you can charge - even here!

trainspotter

Oh no. I love their coffee. I don't go that often as I tend to think it's a place for trendy young things rather than me with my brood in tow, but if I have a spare 20 mins on my own it's my go-to place.

poxy

Vagabond now has 4 branches. I'm guessing - for the reasons Miss Annie mentioned - that off-loading this branch will allow the company to protect the other three.

Arkady

I know the Holloway road one. Where are the other two?

poxy

http://www.vagabond.london/shops/

Mimsy

maybe the 'hipster' era is finally drawing to a close. (thank god) ...or the property market is finally contracting. (thank god)

Sutent

This may be a result of brexit and the weak pound. Coffee is becoming more expensive and I am not sure how much elasticity there is in increasing the price per cup to the customer.

Mimsy

Have to disagree there. At roughly 3p a cup to make, the price of coffee is a minor factor. Its all wages, rentals and rates and turnover. Although not really an equal comparison, its worth noting that very large franchises all realised the same thing in the end: its just one big property play.

Sutent

https://www.bloomberg.com/news/articles/2016-07-13/post-brexit-britain-wakes-up-to-smell-a-pricier-cup-of-coffee

fabruce

@Mimsy what makes you think that the hipster era is coming to an end, and moreover why are you saying that? Is that a problem to have some hipsters around? What is a hipster? Are hipsters the only people buying a good quality coffee at Vagabond? I think it's very sad that Vagabond is closing down, as it's a very nice place and it makes the area looking much nicer. Considering that the small area in front of the shop is a dump for all sort of rubbish items, I really hope that another business will fill the premises and that someone will do something about the dark corner.

krappyrubsnif

Vagabonds way too uncomfortable. Pedestrianise the street outside and put in some decent furniture.

fabruce

It would be awesome if they pedestrianise that street. What is the reason not to is not too clear (apart from budget I guess)

Arkady

I dearly wish that the local councillors would focus their ward budget on that.

grenners

I suspect their turnover is maxed out at £300k pa would be interesting to see their net profit and why they think the business is worth £148k. Seems busy to me so I guess turnover might be maxed out for minimal net profit. A lot of hassle for a small shop.

gardener-joe

...

Mimsy

@fabruce What makes me think the 'hipster' era is coming to an end, is that the world of "political correctness" has imploded on its own inanity. Hipsterism is part of the bourgeois bohemian social milieu which is obsessed with virtue signalling to maintain an artificial, fabricated air of moral supremacy. Its passing is no reason for tears.

Mimsy

@stutent ...doesn't look like much of a price move to me... http://www.commoditycharts.com/charts/custom/KCH17/&page=chart&studies=Volume;&cancelstudy=&a=M ..once again.. the bloomberg articles parse the graph where it suits the copy.... instead of noticing the real trend.

HolbornFox

If the pound implodes more foreign people will invest, market becomes more restricted, rents go up.


I agree with @grenners about turnover to profit, i believe J.D Wetherspoon have the same problem. I certainly had it when i went from 3 members of staff to 5... its a nightmare.


The odd thing with hipsters is that they were not teenagers generally but late 20's or even late 30's.

Maybe they've got old, or maybe they've all realised that earning 15 grand as a pioneer in fixie design just ain't sustainable.

fabruce

@Mimsy bourgeois bohemian social milieu. Interesting choice of words. How many so called Hipsters have you met and spoken to? I am genuinely interested, as I do not understand how such a negative statement can be applied to them (assuming Hipsters do actually exist). I do not understand either why the closure of a very nice and successful business can be a good thing for the area. My question above is still valid though : Are hipsters the only people buying a good quality coffee at Vagabond? If they aren't, then I guess that the closure will not be a reliable indicator of their era coming to an end.

Papa

I like Vagabond, shame it is going. It says turnover of about £6,000 per week, which is £24,000 a month. Rent £9,150 pa, so £760 per month, wages £1,800 per week, so £7,200 per month, rates £4,000 pa, so £333 per month. £24,000 - £760 - £7,200 - £333 = £15,707 a month, or £188,484 a year. That seems a lot but there must be lots - of other costs eating into that. Looking at the price of the business, I reckon profit must be £60,000 or so a year though.

HolbornFox

Not a lot then for a business operating 7 days a week with long opening hours, although staff costs are high, i wonder where the VAT bill comes into all that.

Ali

How many cups of coffee is that?

grenners

Gotta be less than £60k net profit? You would have your money back in 3 years and be able to resell....?

HolbornFox

Its about £850 a day over 7 days, how much is a coffee in there? If it is 3 quid then it is 283 coffees. Even if you said with food they sell 250 coffees in 12 hours that is 20 coffees an hour, one every 3 minutes!

Sutent

I wonder if they pay the living wage

Papa

Small businesses are usually priced at about two to three times profits, maximum. Often less. @HolbornFox, I dare you to go spend a day there logging how many coffees they sell to confirm whether they do or don't manage that.

Mimsy

@fabruce "How many so called Hipsters have you met and spoken to? I am genuinely interested, as I do not understand how such a negative statement can be applied to them (assuming Hipsters do actually exist)." ... try the first google response on a search for "Vagabond Finsbury Park hipster": "Vagabond is a little inconspicuous coffee shop about 10 minutes walk from Finsbury Park Station on Stroud Green Road. ... crates for seats, unusual art on the walls and your veritable mix of hipster-y looking geek-chick crowd." {I'm surrounded by them. And look what they've done for Hoxton (blegggh).} If its exegesis you're after, try this:

-noodles-

this is such a loss to stroud green road - superb coffee & lovely staff.

_Bee

i only went there once, it didn't suit me, but I am sad to see it go. I did feel like I wasn't their ideal demographic, but I do hope that something delightful replaces them.