Replies to post #18140 on Baristas Coffee Company, Inc. (BCCI)

[Porgie Tirebiter]

Open for 16 hours per day and payroll is $30 per day including workmen's comp? That's a little thin.

The only Barista's I've been to is at the corner of Gandy and Hines in Tampa. $1,000 per month rental is a little thin. I can't speak for Missoula Mt. Maybe it works there.

I live in a household with two people in it, and we spend maybe $10 to $15 per month on coffee just for us. I'm thinking $200 and $500 per month for inventory and supplies if you are selling coffee to customers at retail is a little thin.

Utilities you may have about right.

$100 per month for insurance is a little thin.

$350 per day total revenue is not going to cut it. To be profitable you are going to have to do a lot better than that.

If total profit to shareholder equity was $350 per day per location, then you might justify a market cap of $10 million, which would be a P/E of roughly 10 at current share price. But that's assuming the corporation itself has no expense or debt service.

[payperview]

Sure you can easily run a coffee kiosk on $350 per day. I imagine $220 per day would be about break even staffed by two employees for 12 hours daily. Employees get about $2.20 per hour minimum wage but work for tips mainly.

Stores open at least 15 hours per day. Behind the counter dispensers of food and beverage do not qualify for the waitstaff rate.

The rent is probably under $1000 per month.

Maybe so, but the company is not paying for only the space under the roof. It has to pay for all the outside space. In most locations this could be around 10,000 sq. ft.. The price you mention is unlikely.

Utilities $500.

Hardly. Twice that amount is much likely, with large seasonal variations.

Taxes are a percentage of income,

Only on certain taxes such as payroll and sales tax. Food and beverage distribution as well as local business licenses, etc are not.

Inventory and supplies are directly proportional to the amount of sales and comes out of the total company inventory. The more stores they have, the more profitable this becomes.

Standard cost in the food and beverage industry for food and all other supplies runs between 22 and 28 percent of all expenses.

The other things are fixed expenses.

Telephone. Garbage collection. Repairs and maintenance. Water and Sewage. Insurance. Depreciation of refitting locations and equipment (if it costs 60K to get the place all ready, and one depreciates over 5 years, that is 1,000 per month.). Etc.

Expenses for an moderately busy kiosk:

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Payroll $2100 per month (minimum wage x 2 employees for 12 hours daily incl. unemployment comp.)

More like 10,000 per month, if not higher.

Inventory $200 per month
Supplies $500 per month

And what may I ask is the difference between inventory and supply? That which is inventoried is supplies.

Insurance $100 per month

I am sure you are refering to general business insurance. For a kiosk of that nature, it probably runs to more than $500 a month.

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Total $4400 per month

Sorry, this number is just totally wrong. The real number is closer to 20,000 if the business does between 10K and 12K per month. The breakeven point is somewhere between 25K and 30K in sales.


And this does not include the business overhead, such as maintaining an office, and all the related things.