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I am looking at a snack bar option. The person who was going to do it had medical issues and could not perform duties. when I ask how they arrived at projected sales, they say: "-we used population(900) time 25% of the average hourly rate($12.00)per day/ per week for the snack bar estimate.(130,000.00)
Plus another estimated $30,00.00 a year for the vending responsibility. No Commissions with warehouse space available.

 

I feel that maybe there are things that they did not take into consideration, but I want to make sure.

 

How do you determine whether a snack bar option is profitable?

I'd love to hear your own formulas.

Thanks.


Equation- $3.00 X 900=$2,700.00  X 4 weeks= $10,800.00 x 12 months=129,600.000  We feel this will be the low side, should do much more.

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e Okay, something was a bit screwy. How do you assess profitability? I am thinking that there were many other factors that were not considered, but maybe I am just overthinking. I'd love to hear how others assess profitability on a snack bar.

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58 minutes ago, AngryChris said:

I don't know what exactly a snack bar is.

It's where snacks go to get Lays:D   [I couldn't resist the professional pun]

Think of most large government buildings that have a coffee stand or concession stand.

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 Yes, not a cafeteria, but concession stand type of place with maybe pizza, hot dogs, candy chips and you pay at the counter. I just am wondering if we can assess the profitability on how many people work in the building and their salary. Isn't there more than this that would indicate whether this venture would be worth while?

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A lot government facilities have a pseudo cafeteria set up with regular lunch hours, and then a bank of vending machines for the folks that work odd hours. If it is a 24 hour facility it could be lucrative, if it's just guards at night, less so.

Sent from my SAMSUNG-SM-G900A using Tapatalk

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I think you're asking the wrong people.  I only do vending machines. Outside of that, I don't know.  It seems like the people who do micromarkets would have a better idea but that's a niche that I don't think a lot of people know.

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Just thinking out loud... how easily can the occupants go out for meals?  What are their other options?  Would breakfast or lunch be busier?  Any history at all in that building - prior operators?  Rent?  Labor cost?  Utilities?  White collar or blue collar type market?  And what exactly is an "average hourly rate"???? Are they talking about the employee's pay rate as a way of estimating sales???  

In a restaurant type setting you want to keep your food cost under 30% so if you are doing mostly vending type items you are going to suffer because of labor cost and higher overhead...  You may be better with a supervending setup to include shelf stable and frozen items and provide some microwaves, maybe have an attendant a few hours a day for cleanup and restocking...  all presuming that the location is not appropriate for a micromarket....

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Hi SouthEast Treats:

I have asked some of these questions.

and, thanks for giving me more to think about.

This is what I know.

It is pretty easy for the Occupants to go out for meals: on a busy street with restaurants up and down the street.

The employees work a regular work day so might enjoy a bit of breakfast in the morning, but stop work at 5:00 at the latest.

I would not have to pay utilities.

They are white colar. .. and I thought it odd tha they would include the employee's average pay rate: (how could they possibly know that) as a way to assess gross sales.

yes, I am checking out the MicroMarket option, but I am not sure that there is enough employees to sustain that high cost.. ... although, I do realize that there are savings that follow.

 

 

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6 hours ago, Jazar said:

 

Hi SouthEast Treats:

I have asked some of these questions.

and, thanks for giving me more to think about.

This is what I know.

It is pretty easy for the Occupants to go out for meals: on a busy street with restaurants up and down the street.

The employees work a regular work day so might enjoy a bit of breakfast in the morning, but stop work at 5:00 at the latest.

I would not have to pay utilities.

They are white colar. .. and I thought it odd tha they would include the employee's average pay rate: (how could they possibly know that) as a way to assess gross sales.

yes, I am checking out the MicroMarket option, but I am not sure that there is enough employees to sustain that high cost.. ... although, I do realize that there are savings that follow.

 

 

But you quoted someone as saying they had 900 employees... I am a bit confused.  Are you trying to estimate the revenue for a snack bar, vending machines, or a micro market?  They are all different things and the methods many of us use to estimate sales are not a one-size-fits-all method.  My method is decently accurate for vending machines but I don't know if it would hold true for micro markets and I doubt it would hold true for a snack bar.  So was the 900 people just an example or does this location have 900 employees?  If it has 900 employees, which is huge, then it easily sustains a micro market.  However, if the reality is that if far less employees have access to this area, then your numbers will be far lower, and the information you have given about the proximity to food would make the sales even lower than that.

 

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Still lacking some info, but more thoughts.... sounds like a white collar office building with multiple occupants and visitors, if so micromarket is out; without a single employer to hold customers accountable your theft loss would be prohibitive.  Grab and go stuff at breakfast time, simple lunch time stuff and break items, nothing too complex, and probably closed by 3 in the afternoon... could be a good spot.  Make sure your coffee is GREAT.  If no other shops in the building some sundry items.  You will get the morning and afternoon break business and lunch for those who just can't get out of the building every day... not a lot of vending if most workers leave at 5, you will get most of your business in the snack bar.  Just my 2 cents for what it's worth...

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 Angry Chris, Yes, there are about 900 employees. There is not a lot of outside traffic to the offices.    There are already nine snack machines in this large building, there were three more, but the previous vendor took them out. So, the previous vendor had nine machines working and was going to start a snack bar. He had plans for it, started the development(almost completed it) , but could not complete it do to familial medical concerns.

 

Again, Thanks for all of your responses! Your thoughts are certainly helpful.

 

 

 

 

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Well then it's a huge account. It's out of my league for what you're asking, but if it is an office building with 900 people,  I would expect  $400-$900/week in snacks sales and $600-$900/week in soda sales, with the lower numbers being more likely.  However, depending on the layout of the building, vending machines may be necessary. 

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