Amfil Technologies Inc (FUNN)

[coydiggity]

Why does the Snakes business model work? (repost)

Snakes & Lattes in Toronto is packed most every night, but Fridays and Saturdays are the prime time, with groups waiting to be seated all night long. For those that do not know, patrons pay an $8 cover just to get a seat at the table at Snakes.

Lets focus on the Midtown location. Snakes Midtown comfortably seats 250 guests. Snakes is open from 11am to "Late". Normally late means 2am.

On weekend nights, things start heating up around 6pm. And we know Snakes is also popular for brunch on sundays and into early afternoons to about 2pm. So here are the prime time hours that I am going to figure Snakes will be packed on a weekly basis:

Friday - 6pm to 2am = 8 hours
Saturday - 6pm to 2am = 8 hours
Sunday - 10am to 2pm = 4 hours

20 prime time hours per weekend.

A conservative estimate for the amount of time a group stays and has fun at Snakes is probably around 2 hours. Some hardcore gamers may be staying longer than that, but as Steve Tassie said in a "How to Snakes" episode, most of the customers Snakes gets in the door are novice gamers at best.

So on weekend peak hours, the crowd will turn over 10 times.

250 customers X $8.00 cover charge = $2,000.00

$2,000.00 X 10 times crowd turned over = $20,000.00

$20,000 X 52 weekends/year = $1,040,000.00


Over $1M in COVER CHARGE revenue per year JUST during peak hours! Collecting money for people to walk through the door. This doesn't include cover charges for NON-PEAK hours, food & drinks purchased, games purchased, or other things like catering, hosting of corporate events, etc.