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YamDaisy Cafe Business |
Business
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Scoll Down to Find the Number Crunching! The Business Model for the YamDaisy Cafe is to have a Not For Profit Franchise running the organisation, setting up the Cafes and developing the business. Each person buying into the the Franchise runs their YamDaisy Cafe as a sustainable business. The YamDaisy Cafe needs to be easy to run and make a fair income for the people running it. This means its business model is very important. We need each cafe to be responsive to the local community and give flexibilty and opportunity to the chef/managers. We also need a great strong overall structure to give support and accountability and build the business until there are vibrant, sustainable YamDaisy Cafes in every community that needs them! A Franchise structure allows lots of support for lots of YamDaisy Cafes. Imagine YamDaisy Cafes being set up in more and more new communities, as the numbers build, the Franchise can offer more and invest more. In this case the Franchise itself would be a philanthropic organisation. It would set up the model for the YamDaisy Cafe, get funding to start each one up, develop the contracts for each manager. Some of the things a YamDaisy Franchise could provide are: Clear Guidelines An accounting system Training Mentoring Legal Support Research Publicity IT Development (phone apps, payment options etc) Liaise with producers Staff so that the Chef/Managers can take time off when needed. And so much more! I imagine the Franchise having a board made up of people from business, hospitality, health, design, producers, disability advocates and other community representation. |
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The franchisee makes a fair living, the cafe is vibrant and sustainable. They are part of our economy and community with status and rewards. The Manager/Chefs need to follow the YamDaisy principals and procedures, but their is room for them to do more according to their interests and abilities. Eg cooking classes, weekend events, condiments and other products made by them. |
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Government grants, Philanthropic trusts, merchandising, partnerships with universities and the goodwill of experts is needed to make it possible to set up the franchise, and make sure it runs well. Consider all the good things a Franchise can do, it can take a load off the Chef/Manager in terms of accounting systems, insurance, legal support, IT systems, networks and trouble shooting. It can also give the Chefs the encouragement and feedback that anyone doing a 'mum' job is sure to need! |
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BUSINESS BLOGSPOT
CRUNCHING THE NUMBERS
It can be hard to believe that a cafe that makes really high quality food, and sells it at prices a pensioner can afford, could make an income for the Chef/Manager. But this is what the structure of the YamDaisy Cafe is all about.
The figures are 'ballpark' figures because of the changing economy. But I have worked them out with help from people in the industry.
Buying into the Franchise: The Chef/Manager pays $5000 to be part of the YamDaisy Franchise. This is a very small figure for buying into a Franchise, but it does contribute to the Franchise and it indicates commitment of the Franchisee, who does need a lot of commitment! We could develop ways for Franchisees to be sponsored into the Franchise...
Allotted a YamDaisy Franchise: Hooray! This is not a cost for the chef/manager! It involves negotiation with the new Franchisee regarding preferences and availability. It will lead to the allotment of a YamDaisy Cafe which is in an area which shows need for it. This could be a new cafe, or taking over an espablished one. The cafe will be furnished and furbished!
Rent, Insurance and Overheads: By overheads I am talking about electricity, water, gas and repairs etc.. Given the worrying pace of climate change, in Melbourne the overheads may escalate sharply, but my current figures allow $1000 a week for these expenses; roughly $600 for rent and the rest for insurance, utilities and maintainance.
Yearly Income: I have read that many cafe owners struggle to get an income of $30,000 a year. This is a very low income indeed. I am aiming for a YamDaisy Chef to be confident of an income of $45,000 p.a. and hopefully higher than this. This means an income of about $1,000 per week.
Staff: I am inclined to think that the cafe will function best with 2 full time workers, but I think the minimum staff would be the full time manager/chef and 3 hours a day extra help. So the minimum staff would be in the order of an extra $450 pw. There is leeway for apprenticeship and maybe volunteer help, but that isn't factored in here.
Sale Units: The sale units of food in a YD Cafe are: Soup: $5, Main meal: $7:50, 2 course $10. There might be family meals, children or teenager meals, beverages and other combinations. But average out a unit price to be $7.50 and expect to sell 150 units a day. This would be $1,125 a day and $5,625 a week.
Ingredients: Commonly calculated at 1/3 the cost of the meal. But here we are focussing on local seasonal ingredients, and would love to build networks that allowed for help in this area (more on this later). At 1/3 of the meal prices this would be about $1,689 a week.
$5,625 a week: subtract 10% GST brings it back to $5,062, subtract $2,000 for staff, $1,000 for rent and overheads, and there is a healthy $2,000 there for ingredients plus leeway for anything I have forgotten. IT WORKS!
Note: The YamDaisy Franchise that sets up the cafes needs funding which is a separate issue!