Food Stall Profits?

[Svenn]

Apparently a friend's beverage stall in silom bkk, selling just standard powder mix drinks, makes 20,0000, sometimes 30k baht a month... is it just me or is that really high? I work outside Thailand but some family were considering opening one up in Ubon, and if they really bring it that kind of profit, I wouldn't mind giving the initial investment of 30k or whatever for the equipment. They're thinking of the rice/4 different dishes stall-restaurant type of setup. I'd appreciate any feedback/experiences.

Edit: I meant to post this in General Topics if the mod wouldn't mind moving it, thanks

Edited May 22, 2010 by Svenn

[rfukata]

I think there are a few points to look at for the venture;

1) location (high traffic)

2) competitiveness, price, exclusive seller

3) rent and protection fee

4) cost-v-profit

5) perishable - food damage

a friend of my wife lives in downtown Ubon and sells fresh juices from her door front. she also delivers to near by offices for extra

revenue. according to her, she makes more revenue by means of delivery compared to her door front.

she make a net profit after deducting all expenses of approx. 300-600 baht a day, an average of 450baht per day.

if you compound the profit of 450bht @30 days, she will earn 13,500 but most likely she will only operate on 5 days which will

be anywhere from 9000-10,000 baht.

* the other issue to look at is that food items are perishable and you have to eat the profit if it goes bad

[jonwilly]

B20-B30 in BKK maybe.

But with all due respect out in the 'Provinces' no sorry.

Up country folk in general watch every single Baht.

john

[Dave the Dude]

My experience in Isaan has shown that it is hard to get locals to understand the concept of 'profit.'

Please don't take this as 'bashing' certain types of people, It is not meant that way but my friends locally

think if they have a few baht in their hand, thats profit, even if it took them a day to gain it and cost them expenses too.

Double check understanding, thats all I say.

Just throwing in my 2bahts worth.

[rgs2001uk]

You didnt mention rent and overheads.

Depending where on Silom rent could be 1,000 baht per day or 30,000 baht per month.

Check out the rental prices on a 1 metre stall at Klong Toie market.

So to assume a 30,000 baht profit per month, she must be taking at least 60,000 baht per month, or 2,000 baht per day.

At 20 baht a pop thats 100 customers a day.

Stall open for 10 hours a day, thats 10 customers per hour, or one customer every 6 minutes for the whole 10 hours.

Sorry the numbers dont add up.

Take a walk down Silom, these mobile operators selling orange juice at 20 baht per bottle are all over the place.

[wolf5370]

Depends where the stall is - many busy road where there are no roadside rents (unlike markets and tourist locations etc). My sister in law ran a small stall from outside her house in a small community off the main road in Bangkok (not far for swampy) - selling Phad Thai and Noodle Soup. No rent etc (parent's house so didn't pay for electric etc) - gas charges are very cheap and only needed a single ring burner. She was lazy so opened early (about 6ish) but closed at 2pm - missing people coming home from work - and she made on average 1,500 baht a day (after paying for the noodles etc). So, times that by a month and you easily have your figures.

Just near my cafe is a roti stand (my daughter loves them). Normal roti is 7baht - but go up to 25 Baht (egg and chocolate). There are always people at the stand, and the guy or his mother are cooking constantly - with several twists of dough lined up. They now have started selling Jack Fruit and Dorian (ready pealed) in little bags too. They are right outside a 7-11. They pay no rent. At a rough estimate they are turning over 1,000 - 2,000 baht a day (they are not there all day and only on week days).

[Svenn]

Sounds like it might be better to start selling from their home first rather than jumping into a big stall with rent and overhead. That was my original thought as well. Sure, we're on a small side soi, but it's in central Ubon and I don't think too many people are going to avoid the place because it's an extra 20 steps from the main road. I understand what you mean about the lack of understanding of 'profit' Dave, I don't usually get thoughtful responses when I give my suggestion above to them. Plus they don't really seem to have their heart all the way in it yet, so starting from home first might be a good initial 'testing' run.

[loong]

My missus sells food in Khon Kaen. She operates from a shop unit though, not a stall.

It's possible to earn a good return if they are prepared to work, but the most important factor is location.

The Missus's place is in a good location and she pays 10,000 Baht/month rent.

Her business does well when the University is open, but turnover falls when the University is on holiday.

How much does she make? I don't know. She doesn't keep any proper books.

During the recent holiday period, I think that she just covered overheads and staff wages Monday to Friday, only making a profit Saturday and Sunday.

In a good month, she probably makes 50 or 60K Baht profit. That's great, but she has to put in the effort.

In your last post you write "Plus they don't really seem to have their heart all the way in it yet," and that sets off warning bells. If they want to make a success, they will have to have their heart in it, they will have to put in the time and effort.

Too many people start a business with some half-arsed plan and they are doomed to failure.

Good luck

[ballbreaker]

Svenn if you can afford to lose 30k baht then invest but remember the 20-30k a month they make is gross not net profit.

Someone else mentioned location is the key for a successful business. I could not agree more but what happens is five more shops set up within a few months if they see you have a successful business. I've seen it happen in my area of Bangkok for another type of business.