anyone own or familiar with running a cafe/bakery?

[octwed07]

DH and I are thinking of investing in an existing cafe/bakery to help a family member. I was wondering if anyone here is familiar with what the realistic/normal estimated profits would be per month. I can't seem to find this info, i'm just trying to figure out if his estimated numbers make sense.

[soozy87]

It probably depends on what area you would be opening it in. Traffic in the surrounding area, etc.

[octwed07]

It's going to be in the Queen Village area in South Philly -- lots of walking traffic. It's taking over an existing cafe and changing it a bit-- so he's expecting net profits of $1700/mo after the first 6 months. Realistic or no?

[Deleted]

This kind of sounds like a recipe for disaster if the bakery is already struggling. Something will obviously have to be changed if you want to turn a profit.

I think your questions is impossible to answer. It would depend on the size, location and popularity of the bakery.

[peachdragon]

I don't know concrete numbers, but my inlaws owned and ran a bakery for decades, and they were very comfortable. Also, my husband's aunt and uncle own a bakery, and they have a HUGEMONGOUS house, LOL (not that that's a definite indication of being well-off, but I think for them, it is).

[karinothing]

I agree it is impossible for us to answer. However, aren't there people that figure this kind of thing out for a living? Imean obviously they wouldn't always be correct...

Anyway, i think the first couple years of a restaurant suck.

[Deleted]

May 17, 2012 11:28:25 GMT -5 octwed07 said:

Realistic or no?

After having looked into a opening a bakery myself and writing up multiple business plans, I would say, no, it's not realistic, especially within 6 months. But, do your research, look at the business plan, talk to people who know the area and business.

[heyrebekah]

I think the best way would be to look at the financial information from the existing business as a starting point.

[octwed07]

May 17, 2012 11:41:18 GMT -5 heyrebekah said:

I think the best way would be to look at the financial information from the existing business as a starting point.

This is what we're doing -- we're not going to be a huge investor in it, and he's expecting payback by the first year for our investment with interest. The existing business is profitable now, it's just the owner doesn't want to be in the business anymore and wants to move. I just thought i'd throw it out here to see if anyone has some ideas on profitability, etc.