How much to rent small shop in prime Lamai or Chaweng strip?

[skipdivils]

Hi there,

I am wondering how it works in Samui to lease a small shop (approx. 50 square metres would be enough (size of a small coffee shop). I'd be looking at somewhere with very good location for foot traffic, such as the main strip of lamai or chaweng, or the main strip in BoPhut, or even at the entrance area to big buddha or prime spot near ferry in nathon. I am curious as to the cost to rent a small commercial space in an area like this, and also how the sytem works there. is there key money involved or just monthly rent? how long is a typical lease?

If anyone has any information they could share with me, it would be very much appreciated. thanks.

[PoorSucker]

You can check the rental prices in the classified section on existing businesses.

http://classifieds.thaivisa.com/ads/search/1/categ_id/10/currency/5/county/66/ord/price/sens/asc/page1.html

Hard to find a vacant shophouse though.

You probably have to buy out an existing business.

[pokerspiv]

In Lamai there would definitely be key money involved as well as rent. Not sure about Chaweng.

I know someone who might be interested in selling their lease which is located on the main strip of Lamai, PM me for details.

[superdome]

As a long term resident of Lamai I can tell you that key money would DEF be paid [although this is fading out now]...this ranges from 200,000 to abt 400,000 depending on size/location etc...I have a friend who has a coffee shop near the boxing ring in Lamai and he pays abt 20,000 a month...all I say is be VERY carefull as Lamai is getting very quiet overall [not like it was 5yrs ago]...you may have about 3/4 months to make your money during high season...Lamai has very many families & older tourists who tend to just walk about & not spend money..from about 9pm they tend to go back to there hotels...for a younger "set" I would say Chawang would be a better bet..but will cost you a lot more.I have been in Lamai for over 25yrs now & seen it rise up,but now seems on a downward spiral...can PM me if you want for any more info..just glad to help [+ save you money]

[pokerspiv]

this ranges from 200,000 to abt 400,000

It ranges to a lot more than 400,000.

[ikbenhet]

ok

[BigC]

All depends on the location you can get fro 3000 baht to 300k - 500 k depending on the location.

All depends on what you are selling also. forget coffee shops as they would not genorate enough income to pay the bills unless you have other stuff for sell in the shop. From coffee and cakes unless it is a very high quality bakery shall not make u anything even with cheap rent.

for example if you rent was 7000 baht per month. how many cups would you need to sell just to pay the rent

Edited October 23, 2013 by BigC

[Tropicalevo]

All depends on the location you can get fro 3000 baht to 300k - 500 k depending on the location.

All depends on what you are selling also. forget coffee shops as they would not genorate enough income to pay the bills unless you have other stuff for sell in the shop. From coffee and cakes unless it is a very high quality bakery shall not make u anything even with cheap rent.

for example if you rent was 7000 baht per month. how many cups would you need to sell just to pay the rent

The biggest problem with running a coffee shop are the leeches.

These are the space sapping parasites that sit in your shop for 5 hours using the free wifi, but they only buy one cup of coffee. Then your real customers cannot get a seat.

Good luck on whatever you do.

[vlietje]

I always wonder if nowadays small businesses still able to make enough, I'm not hearing many succes stories, anyone?

[robertson468]

I always wonder if nowadays small businesses still able to make enough, I'm not hearing many succes stories, anyone?

My Wife and I were just commenting the other day at how many small businesses on Koh Samui had opened and then a year or so later had closed. Whilst you might love to run a coffee shop, that is not the top criteria. The most important thing is, is there a demand for what you want to do and as any business person will tell you that is closely followed by location, location, location. Do a thorough recconnaisance of every location you are considering - if possible, sit outside or nearby and watch the passing trade. Then do a business plan - estimated income, fixed and non-fixed overheads. This often helps take off the "rose tinted glasses". Sorry, I have gone off topic, but hope this helps you in your decision making - good luck.

[monkeycountry]

For a 5 meter front shophouse on Beach Road Chaweng near Green Mango I believe you are looking at minimum 100,000 baht/month, probably more and probably paid a year upfront or similar. You are really only paying for the ground floor, so it does not matter much that you do not need the upper floors.

Btw, these are the most expensive shops on Samui, but also the ones with the most traffic.

Edited October 23, 2013 by monkeycountry

[superdome]

Glad I may have been of some help [in some way]...for my part I would NOT even contemplate a business in Samui [Lamai in partic]..as I said it's on a downward slope now...I have had many many offers of taking over a business & always turned it down coz I could see what was going to happen in the future [this was abt 5/6yrs ago]...I like to think I am not a bad judge..so far I have been proved right.

I have a business in the UK...for what it's worth on my part...SAMUI will be FINISHED in about 8/10yrs time as a holiday destination,mainly because of the greedy locals...ok

[pokerspiv]

Samui won't be finished as a holiday destination. If tourist numbers drop off then they'll just have to reduce their rent prices. At present there is not a single empty shop on the main street of Lamai between the Outback bar and The Weekender, so either everyone is losing money hand over fist, or they've got the rents just about right.

In my experience the greediest people are the farangs trying to sell. So many of them are asking 500k-1 million baht not counting remaining lease, with nothing except a beer fridge and a few tables and chairs to justify that price. I'm not sure what universe they are living in where they think a fridge, a TV and a few barstools is worth 500,000 baht.

There are plenty of profitable, falang owned businesses in Samui. 1 visa run/burger company (which can't be named) is expanding their offices all over the island currently as an example. They will have more outlets than Top Charoen optical at this rate.

Edited October 23, 2013 by pokerspiv

[lom]

SAMUI will be FINISHED in about 8/10yrs time as a holiday destination,mainly because of the greedy locals...ok

I also heard that. 14 years ago..

[BigC]

If you can find a shop with living space up stairs and the rent is affordable then at least you can have some income and live there at the same time.

As for business for me it is all about profit. There again i already have a house.

Like someone said there are allot of small business that open and close within the first year. Some people living on a dream but need to face reality. location supply, competitve prices, demand.

Coffee shops are in a very hard bracket to break as there are so many franchises out there. Amazon has capitlized all the gas stations. Gas stations seem to be going up as quick as family marts.

Star buck are expensive but world brand name.

All these franchise empollyee about 5 staff for some reason.

If you buy a business such as a coffee shop in the wrong place then even with quality coffee and cheaper prices. not many people shall come as they shall not have herd of you unless people are walking past on foot.

Plus other franchises such as coffee world, black canoyon.

If you have the resources you might be better off buying into a fanschise but unfortualty it is very hard to make money in Thailand unless you have allot to begin with.

Not many people make it out here on nothing. Some exeptions but not many. this ain't America

[monkeycountry]

Glad I may have been of some help [in some way]...for my part I would NOT even contemplate a business in Samui [Lamai in partic]..as I said it's on a downward slope now...I have had many many offers of taking over a business & always turned it down coz I could see what was going to happen in the future [this was abt 5/6yrs ago]...I like to think I am not a bad judge..so far I have been proved right.

I have a business in the UK...for what it's worth on my part...SAMUI will be FINISHED in about 8/10yrs time as a holiday destination,mainly because of the greedy locals...ok

While I do agree Samui has a ton of problems to solve, most main hotels are more or less fully booked for the coming high season, so I am not sure the mentioned downward slope has started just yet? Bangkok Airways Samui flights seem to be doing better than ever too (you can see it on their SPF property fund balance sheet which is publicly available and only covers the Samui part of their business).

You may be right that smaller businesses such as individual shops, restaurants, bars etc. are struggling due partly to oversupply, and partly to the changing demographic?

[pokerspiv]

Bars are struggling the most since Samui - and Lamai especially - isn't really a prime destination for sex tourists any more since Phuket was rebuilt post-Tsunami, and they built an international airport so close to Pattaya.

But if you take a walk down the main street of Lamai around 8pm you'll every restaurant on the road packed full of tourists with their kids and strollers.

Like monkeycountry says, demographics change.

[Rooo]

Bars are struggling the most since Samui - and Lamai especially - isn't really a prime destination for sex tourists any more since Phuket was rebuilt post-Tsunami, and they built an international airport so close to Pattaya.

But if you take a walk down the main street of Lamai around 8pm you'll every restaurant on the road packed full of tourists with their kids and strollers.

Like monkeycountry says, demographics change.

If you look back at posts 4-5 years ago that's what was predicted. Nothing new, demographics always change.

[williamrobson]

The Wife has a business in central Lamai, every year its getting better by approximately 20 - 25% so I don't believe its a downward spiral for all businesses. you just have to target a largely family market consisting of many Russians and Chinese.

When it comes to costs she has worked out she needs to be clearing about 3500 a day and then she stars making money.

So if we were to think about a coffee shop whats that about 50 - 70 cup of coffee a day to break even however I think your fixed costs would be higher than my mrs as you would need at least 3 staff and quite a lot of pricey equipment to run a decent coffee shop.

as others have said think long and hard, as i believe your set up cost would push into 1 mil mark to set up something of a decent standard.

Cheers

Will

[samuijimmy]

There's a small coffee and shake stand, near Soi 4 in Maenam, (near 7-11, same side) that always seems to be busier than most places... mostly take out, but a couple of tables.... Simple set up... Serving both locals and farangs...

No idea of rent... but I bet who ever has funded it, is probably making or seeing a return on money invested ... Some times the K.I.S.S method works best...

I have seen other places come and go... one recently, only lasted a few weeks, location was not bad, but there was no effort to make it easy to get from road to the stand... in fact quite hazardous...