RFG 0.00% 7.6¢ retail food group limited

what does it cost to open a coffee shop?

  1. DSD
    15,757 Posts.
    We know some RFG franchises have folded and some in strife. Some do ok, and some do well. Barriers to entry is a useful tool when assessing a firm's mkt advantage and making/selling expresso appears to be a simple story.

    It seems RFG franchise owners expect to sell out between 200-400k walk in walk out. I feel its a huge amount and i certainly would balk. Taking middle price of 300k... how many coffees do you have to sell to recover capital cost? Clearly it unlikely to happen anytime soon and franchisee depends on being able to sell business for same or higher amount after say 5 yrs of hard labour. I suspect not many get what they hope for.

    But what does it cost to set up a coffee shop of yr own these days? There's the shop fitout, including coffee machines, display cabinets, furniture etc, then running costs of rent, labour, power etc.... and that's before you sell a single cup. I see quite a lot (non franchise) stores open and close in Toowoomba... some after just 6 months! Clearly its expensive to start a business like this from scratch and I'm wondering what sort of capital is needed... for say average size store with 20-25 tables seating say 50 people?
 
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