Open a small Food shop in commercial center of Bkk

[adrien91]

Hello everybody,
It's my first post so I hope this topic is in the good forum.
First, a small introduction: my name is Adrien, 23years, from France, actually living in Japan. I already went 5 or 6 times in Thailand for tourism.

One of my Thai friends have a project and asked my help.
She actually work with foreign customers and she have less and less customers. Many days she doesn’t go to work and stay home. Then, her mother will stop her actual job next January. So she is looking for a new business she can do during her free time.

She asked my help because she found a new business opportunity and she needs 20.000thb to start this.
She has the possibility to buy a small food shop in a big commercial center of Bkk. The initial fee is 40.000thb for rent during 5 years, then 4.000thb/week. In this food shop, she will sell food for 40-50thb. She estimates she can buy basic ingredients for 3000thb in BigC and prepare food for 2-3 days. According to previous owner, she can probably sell for 3.000thb/day.
So her idea is to invest (with my help) in this business and work here during her free time. When she have customers in her other job, she will ask some friends to manage the shop (and pay 350thb/day this friend). Then, when her mother will quit her job next year, she can continue working in this food shop.

That the project she introduced me. I would like to help her and if this project can work, I will be happy to help her. But I don't live in Bkk, and it's difficult for me to know if this project sound's real/possible. That's why, before offer her 20.000thb, I would like your opinion.
For example, if she pays 4000thb/week for the shop, then about 9000thb/week for food ingredients, she have to sell about 500 products to get only 1500Thb! That means lot of work for small results..

I completely believe in her and she is a good friend so it's ok for me to help her if this project is good but I’m a little doubtful..

What’s your opinion? Thanks

[isawasnake]

Opinion is you give her 20k and it will be gone and you or her will have nothing to show for it - well, she may have a few new pairs of high heals to show for it, which could be nice the more you think about it.

[Suradit69]

To be honest, since this is your first post, and your question sounds so unbelievably innocent, I wonder if it's not written by a troll looking to get the troops into an uproar.

I seriously doubt that you're going to get many positive responses to this. Thai Visa tends to have quite a few damaged souls who have lost their money "helping out" females whose acquaintance they made here in Thailand and they will respond based on their own sad experiences.

Not knowing anything about the people involved or the specific type of business or its location, it's virtually impossible to make a realistic assessment of the probability of any business succeeding. Quite often people here who have no business experience over-estimate how successful they will be and don't really understand the potential problems they will face.

[tingtong]

while the project could work...

i would say your friend baited the hook just right for you.

she is asking some amount it is easy to cough up for, and the storyline romantic enough to believe it.

i might miss a part, but never seen a mention about you recouping your investment.

so, assume, it is a present then? if so, it is your right to give a present, and her right to spend as wish.

if not a present?

hmm, for 20.000thb you can surely find some other friends in the future, and no doubt they will have lots of great ideas from food stall to buffaloes, buying land to opening a bar. thailand is full of young, business-minded girls.

[adrien91]

Thank you for your replies.
Yes it will be a present, but only in order to create this business.

Sure, I understand that after reading this, your first impression is I'm stupid and she probably lies and found any pretext to ask me money.

However, as probably everybody say in my situation, I think she is not like bad bar girl asking for money as much as they can. (She doesn't work in bar or anything related to prostitution)

I don't have so much detail about this business, except it will be at "government center". She sent me some pictures of the shop and that looks realistic project. I already asked many questions and her answers were realistic.
I will go back Bkk at the begining of October, so I suggested to wait a little, so she can explain me in more details when I will see her, but she need cash before 09/22..

I don't know what to do.. I still have in memory bad stories of farangs losing money trying to help bar girls, just as sponsors. But in other hand, I really would like to help her and believe in her. All of this can be real. But you are right I'm probably too much credulous.
Anyway, thank you for sharing your opinion.

Edited September 6, 2013 by adrien91

[tingtong]

Adrian,

Is that you give for all your friends with a proposal 20.000thb, or she is some special to qualify? And no, they never bargirl, even if the idea surely sound like coming from one who has experience with gullible farangs, or heard enough tales to try to pull one.

Just think like this: if the idea is so great, couldnt she just team up with someone like her thai friend ready to work there? or ask money from her working mom? or a thai friend? or take a loan? 20.000thb isnt that huge amount nowadays for some thai neither...

no, no, all she needs is a present from you.

if you want to still feel to go ahead, but only for this business, then go out there, and check for yourself if this deal exist, the mentioned numbers add up, etc.

[thrilled]

Hey 20000 baht is A small thing. If things go bad it'll be A cheap lesson. Then again if things go good you might have A little extra money in the future.If I was you I'd go for it, 20000 isn't A huge amount.Ya only live once.

[xen]

Whatever your personal relationship is with this partner is one thing but i would be taking the time to actually inspect the shop and the business prospects , its location and what ever set up costs will be such as purchase of kitchen, refrigerators, benches ,bain maries and outgoings such as gas and elec, promotion and so on . Are there fees to the management of the building? What is the intended market . Is there a lunch time rush where you will need extra staff or will it steady though out the day. Is there night time trading.Thais do have a habit of promoting the big picture and neglecting the details especially when it comes to business dealings.Do not believe what you are told but do your own research.

Twenty thousand may or may not be a lot to loose for you and it may be well worth the lesson - that is up to you to decide but you may need to invest more later if the project is underfunded and to keep the business viable you may need to pump in more than the 20 thousand in or else walk away.

[Naam]

goodness gracious discussing and rendering "advice" concerning an "investment" of $650 / €500 / £400 ?

how much is the flight from Japan the OP has to pay in order to "supervise" that huge business setup in Bangkok?

[farang000999]

We need more facts like bra size to make a reasonable decision. A picture says a thousand words.

[Naam]

We need more facts like bra size to make a reasonable decision. A picture says a thousand words.

[starship]

Wether you want to give 20000B will always be your decision. It seems as though you want to help but want to know if it's a viable idea. There are no guarantees of course and you may not get your money back, like any investment.

Lets take the figures you give and make some broad assumptions. The 40000B is 'key money' to get a 5 year lease. This sounds a reasonable price compared to others i have seen. 4000B a week in rent, so maybe 18/20000B a month, 3000B to buy food for 2-3 days, lets say 30000B a month. The previous seller stated you can take 3000B a day (if true, usually not), so 90000B a month.

Therefore:

Sales 90000B a month

Food 30000B a month

Rent 20000B a month

Sales - food/rent = 40000B

From this you need to take off other costs like electric/water/gas and a personal income. Also you will have upfront costs to fit out the shop. These costs have to be recuperated over the lease period.

Therefore 'theorectically' you can make money IF you are operating 7 days a week all day. You can see even from these assumptions that you will earn a lot less money once you start to employ others to work for you and that's IF you sell this much.

IF you are not open 7 days, pay others to help, pay more for your costs or do not make enough profit on the food you sell and do not sell enough, you will not achieve this amount.

I would personally look for a business with a much cheaper rent. 20000B is a lot to pay when your selling food for 40-50B. That is the bottom end now as prices are rising regularly. 8-10000B would be more appropriate but i don't think you will get these rents in the city centre.

If you pay a higher rent you generally want to sell at a higher price to account for this. Thus you don't ideally want to sell cheap food in an expensive location.

However, you never totally know if it will succeed until you TRY.

I eat regularly in a restaurant in Silom that is very cheap (35B+) and they are packed. They will have hundreds of customers a day. IF you have very high volume sales you CAN make a profit but you need to be in a great and very busy location. It's also down to the quality of food as well. Have you ever thought why some restaurants are busy and others are not in the same location?

Remember, nothing is guaranteed. You need a high volume of customers in a busy location because customers get bored of eating the same food in the same restaurant and want variety (as i'm sure you do), thus you need a large customer base to achieve long term success.

It's good to do some basic maths first before you rush in to a business to see if it MAY work. Many people open a business and later realise that they cannot make a profit because they didn't do some basic sums first.

Good luck, if you decide to go ahead.

[adrien91]

Thank you for all your comments,

Hum, unfortunately her bra size will not justify I send her money

And it's impossible for me to go to Bkk before her deadline (09/22).

So, I will continue discuss with her and try to make a precise projected budget to see if this is viable.. (Thks starship for these first elements)

But, as you said, it's not so big amount, so I think I will finally send her, and let see what's happen...

Maybe I will soon be rich! 55

Anyway, thank you for your replies!

Edited September 7, 2013 by adrien91

[AlexRRR]

haha....I dout she will make you rich...don't forget to factor in ongoing financial injections form time to time, and you will feel pressured to inject once given expect it to continue.

20,000 isn't much to loose/waste etc, Thais generally are hard working long hours 7 days a week sort of thing, but one of there problems ive noticed they often get into business to cheap, the returns are low, food is everywhere and profits unlikely to rise to anything more than a basic wage except for the very few.

Your choice but it sounds like its a decision from the heart, don't forget her work hours will go through the roof, she up for it? in the end wasn't her start up money once shes burnt out and when you do make it to BKK wonder if shes going to have much free time to spend with you.....well you could join her on her market trips...now that's another problem...once the business grows she going to need a van to do her shopping.

[AryanicAristocrat]

Hello Hansum Adrien, my name is Ying, I am 21 years virgin girl from Issan and I just finish school. I so lucky to see u on Thaivisa because now i also learn french. I wanna be your friend. what ur email, I send u my pic and also my life story. You come Bangkok u see me ok. I also have idea about open food shop , maybe you can help me but only 15,000 baht and I can make u partner and pay u back and also do whatever u want when u see me in bangkok. Send email na. Chup chup.

[davejones]

I doubt this will work. As you say, she needs to sell 500 units per week. I don't see many small food shops selling anywhere near that amount. Also it's obviously that this friend of yours doesn't know anything about running a business. If she's selling food at 40-50 baht, she needs to be buy the ingredients at a local market not at Big C.

She doesn't even want it as a business, but just something to fill in a few weeks. Then she will ask her friend to run it. What if her friends decides she doesn't want to?

This is an idea that has no hope whatsover of succeeding. Even if it could succeed with another person in charge, your friend just doesn't have the basic skills necessary. Has she checked how many units other food stalls in this place sell each day. Tell her to sit there all day and count how much they sell.

Keep you money. You'll be doing both yourself and your friend a favor. If she only wants something to do for a few week she should get a temp job not start a business she know nothing about. According to your figures she'll make 1500 baht from selling 500 units. So what if she only sells 400? Or 300? Or 200? Will you be paying the rent and food bills for the next week?

Also, if this was a viable business, it would cost a lot more than 20,000 baht.

Leave well alone.

[davejones]

Also, based on your figures of 500 units sold for 1500 baht profit, that's 3 baht profit per unit sold.That is just crazy. You need much bigger margins than that to run a successful business. Those figures prove that this won't work. If she goes ahead she need to cut the ingredients bill from 3,000 to 1,000 at least. That's easy to do if you buy at a local market. And she needs to negotiate a lower rent

[isawasnake]

We need to make a sticky.

-Sick mother

-New business (w/o a business plan of course, in fact that is an oxymoron for Thais)

-College money

-Sick buffalo

What am I missing? I guess we could make a corollary thread about where the money really goes - annoyingly expensive phones, Luis Vuitton bags, ugly grandma panties (seriously girls, but some g-strings) ......

[MRTELLYOUSTRAIGHT]

lol @ OP

[JeremyBowskill]

Mate you live in Japan where seriously good looking women come on to you on a daily basis for free. What's your dilemma exactly? Lived in Japan for 7 years in my 20's, last thing on my mind was paying for tarts in Thailand!

[Somchai Mao]

Not a lot to lose but why lose it? You are being mugged by email mate. Most Thai's have access to this sort of money if the business model works. It is a convenient and tempting figure for you and she knows this.

[NCC1701A]

don't do it... all that is going to happen is she will ask you for more money... small amounts every month. You will be sent photos of a business that already exists.

[yourauntbob]

if you really like her and the money is not an issue then i say go for it. how many people here have dropped that or more in a month on BG? i am sure you will get it back in the bedroom in no time so why not.

on the other hand if the money is significant to you then i wouldn't take the gamble. consider any "investment" made as money that will never return.

[richardt1808]

Funny how the amount is always 20,000. I had the exact same situation a few years back... the shop rental, deposits etc - all for a guaranteed income.

But then laziness creeps in and they are not able to make it to the shop on more and more days as the reality of hard work sets in. Those 'friends' who are always available to step in and help are suddenly not available and after a couple of months, everyone gives up on the idea of selling food.

Running a food shop / food cart / coffee shop / snack shop is NOT something which an 'office' person is suited for - much less for anyone who spends any amount of time per day sitting on a sofa. This kind of business requires passion and hard work. I have seen a guy selling pork skewers on Silom road for more than 10 years; he works until after 3am every day, rain or shine, and he makes a fortune through his hard work - so it's not impossible.

Realistically your friend, who is already planning on taking days off before the business is even open, wont last a month. You are guaranteed to lose your money for sure, but if you want to make a 20,000 Baht gift - then by all means, go ahead.

[Kilgore Trout]

Thank you for your replies.

Yes it will be a present, but only in order to create this business.

Sure, I understand that after reading this, your first impression is I'm stupid and she probably lies and found any pretext to ask me money.

However, as probably everybody say in my situation, I think she is not like bad bar girl asking for money as much as they can. (She doesn't work in bar or anything related to prostitution)

I don't have so much detail about this business, except it will be at "government center". She sent me some pictures of the shop and that looks realistic project. I already asked many questions and her answers were realistic.

I will go back Bkk at the begining of October, so I suggested to wait a little, so she can explain me in more details when I will see her, but she need cash before 09/22..

I don't know what to do.. I still have in memory bad stories of farangs losing money trying to help bar girls, just as sponsors. But in other hand, I really would like to help her and believe in her. All of this can be real. But you are right I'm probably too much credulous.

Anyway, thank you for sharing your opinion.

 

Do you understand how hard it is to run a restaurant? Do you think it is something you could do in your "free time" with no experience?

Unbelievable. I don't have any food service exp but if some sucker fronts the cash I might give it a go in my free time until I get bored.....

Sent from my GT-I9300T using Thaivisa Connect Thailand mobile app

[adrien91]

Thanks for your comments,

Most of you think that isn't a good project and she won't be able to manage it. That's right she doesn’t have any experience about restoration, and I'm afraid she underestimates how much hard and complicate this project is.

But in other hand, she looks determined. Then, her mother will stop her job soon and she has less and less customers, she needs to find another business.

So, I would like to believe in her and give her the possibility to try.I think if it's easy for me to help improve a little her life, I will regret if I don't do it. If there is a little chance that all this story can work, I would like to do my best to help her…

She is actually just a good friend (not girlfriend/sexfriend), but if a good French/Japanese friend needs my help, I will do my best, so why not with a Thai friend?

That's why I sent her 20k yesterday.

She is 30years, she behaves responsibly and she didn't cheat with me yet, so I would like to believe in her this time. Then, I will come to Bkk next month, so it will be easy to see if all of that is real and can work.

Maybe I'm stupid and I should listen your experience with Thai girls, but I probably need to make my own mistakes ^^ So let's see next month and if I'm wrong, it will just be a "cheap" lesson..

I post the pictures she sent me, do you know this place?

@Ting (AryanicAristocrat): Send me your email, picture and bra size by pm 55

Edited September 10, 2013 by adrien91

[JeremyBowskill]

Regardless of if she is or is not taking the p1ss, there is 1 fact u cannot escape. There is absolutely zero chance of this business working, because it is vastly underfunded. I have 2 decades experience with this kind of business, and wouldn't even dream of doing something like this without at LEAST 6 months running costs to back me up. Too many fools think they can start spending the money to pay next months bills as soon as it comes in. It doesn't work like that and you are about to find out the hard way, assuming you are not just being ripped off that is.

BAKKA YARRO!

Edited September 10, 2013 by JeremyBowskill

[JeremyBowskill]

or a troll.

[pilm]

she needs 20.000thb to start this.

Laughs.

Stops reading.

[GrantSmith]