Business in this country 55

[Pravda]

So my wifey knows a thing or 2 about franchising as this was her first job at CP many moons ago.

 

Out of curiosity I asked how much would it cost to open a coffee shop that starts with A and ends with N, the name has some similarity to Jeff Bezos company ????. Oh, the coffee is god awful, but Thais and Farang who can't afford Starbucks seem to like it so wth. Times are tough, I lost most of my income at least until things don't improve, so I decided to part with some of my savings and become a proud farang mug owner. 

 

So she got a reply from some of her Franchising buddies and the breakdown in excel goes something like this.

 

800k cash upfront

3.2 mil loan with bank.

Franchising fee 6% or something

4 employees @ 12k a month each

rent, costs...etc etc...

 

the leftover money for managing the store full time = 11,500 baht a month using their maths of selling this and that much coffee cups daily @55 baht . This "profit" does not include business tax or whatever I have to pay to the government.

 

So, let me get this straight.... I get paid less than a minimum wage employee while fronting all the risk ????

 

Just remember, this 3.2 million loan is no asset loan. At the end of the loan you get nothing, just the right to sell the world famous coffee with more profit.????

 

If anyone thinks of opening 7/11 let me know. She can set you up real good.????

 

 

 

 

 

 

 

 

 

Edited September 4, 2020 by Pravda

[kingofthemountain]

Yeahh

it sounds like a legal scam or something not far from that.

 

From my observations after many years in the country

most of the Thais don't know how to count and have no clue

about business and accountability.

 

In fact most of the small businesses lost money or earn very few 

imo the only reason why they aren't already definitively closed is

because usually they don't count their hours, a lot of them seem to work H24 and 7\7

Edited September 4, 2020 by kingofthemountain

[2 is 1]

You still whit your wife? Or next help whit sick granmom! Medical bill only 3 million bth! She get you one day !

 

 

Don't need tell more!

[Halfaboy]

9 minutes ago, 2 is 1 said:

You still whit your wife? Or next help whit sick granmom! Medical bill only 3 million bth! She get you one day !

 

 

Don't need tell more!

Things like a businessplan are unheard of (if you do so you never cannot make any money). 

Also cost control is hardly done. At the end of the day the money in the cash register is counted and that's it. 

 

[dimitriv]

Is it worth it to pay a franchise fee for something like A...n coffee?  The brand isn't very strong. In contrast, when I see that name I will keep walking. Nescafe instant coffee tastes better...

 

I see several coffeeshops here, without "famous" brand who do well.

 

The only thing you need is knowledge and money...

 

 

1 hour ago, Pravda said:

4 employees @ 12k a month each

 

Now I understand why the employees there often look demotivated and uninterested.

 

 

Edited September 4, 2020 by dimitriv

[Leaver]

Why not do as the Thai's do and just legally copy A.....N coffee? 

 

Same colour signage, but not the same name.  Practically the same coffee, but not the same names.  You get the idea.

 

A.....N is not big enough at the moment to demand such franchisee input.  

[OneZero]

Isn't A....N associated with PTT/PTTOR?  Perhaps going to have one at all the big PTT petrol stations where you see a 711.  Other than the 711 coffee, I would think PTTOR would not allow a major competitor coffee shop in the car park.

Edited September 4, 2020 by OneZero

[Pravda]

11 minutes ago, OneZero said:

Isn't A....N associated with PTT/PTTOR?  Perhaps going to have one at all the big PTT petrol stations where you see a 711.

 

Yes, sure. It's P. T

 

But these .TT people are her friends from previous employment at C. 

 

And better locations are all taken anyhoo and cost big bux like that big gas station mall/village between patters and bkk. This was for some s.it.y mall in the middle of nowhere. I asked about .P and 7/?1 and she told me forget about it way too much work dealing with inventory, employees and theft for money that won't even cover 40k immigration requirement.

 

Ehh

Edited September 4, 2020 by Pravda

[jvs]

33 minutes ago, OneZero said:

Isn't A....N associated with PTT/PTTOR?  Perhaps going to have one at all the big PTT petrol stations where you see a 711.  Other than the 711 coffee, I would think PTTOR would not allow a major competitor coffee shop in the car park.

As far as i know 7/11 is not allowed to sell fresh coffee if they are on the same location as A         n.

[Leaver]

22 minutes ago, Pravda said:

But these .TT people are her friends from previous employment at C. 

Thai's, Friendship, and Money - Oil, Water, and Bullets.  ????

[Puchaiyank]

Start a new business smuggling expats caught overseas during this virus border shutdown back into Thailand...business will be brisk for awhile. 

[Jack Hna]

Some Thai biz do pretty well.

 

Sounds like a silly move to jump into franchising. Surely your wife mentioned that and if she does recommend one I understand why your not mentioning that.