How much money can I expect to make a day (ball-park) with a storefront?

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rtang21980
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Joined: Tue Apr 04, 2017 5:00 pm

How much money can I expect to make a day (ball-park) with a storefront?

Postby rtang21980 » Wed Apr 11, 2018 6:42 pm

In southern California and want to open a shave ice store (shave ice, ice cream, milk shake, and dole whip). Typically, how much money can I make in a given day (busy, average, and slow)? I just need estimates (no exact number). Just want to know if it's worth perusing this business.

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IceClouds
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Re: How much money can I expect to make a day (ball-park) with a storefront?

Postby IceClouds » Wed Apr 11, 2018 8:38 pm

Hey rtang,

This is a loaded question and I have seen some threads talk about this before. Not sure if i can be much help as i operate seasonally out of a food trailer so my overhead is minimal compared to having a storefront. Do you have competition in your area? Have they been around for a long time? I think its hard to break into a market if someone is already doing shave ice and is successful at it. I can make anywhere from under a hundred to over 1500 in a day, So many factors can occur to having a successful day to a crappy day. I would scope out existing places in or around your area and see what they are doing. Do they have good reviews? Can you bring something to the table they are currently not doing?

rtang21980
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Joined: Tue Apr 04, 2017 5:00 pm

Re: How much money can I expect to make a day (ball-park) with a storefront?

Postby rtang21980 » Wed Apr 11, 2018 10:12 pm

There is no competition in my area. Although there are shave ice stores in neighboring cities. Would you say I can make around $100K - $150K a year at least with a store front?

mrjosco
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Re: How much money can I expect to make a day (ball-park) with a storefront?

Postby mrjosco » Thu Apr 12, 2018 2:22 am

No one could say that. There are too many factors. How good is your product? How good is your marketing? How good are your employees? What prices do you charge? What other items will you be selling? How good is the location? How much foot traffic? How many cars pass by each day? What is the speed limit on the street? How big/visible of a sign can you have? What is the average income of your market? Does your market have a lot of discretionary money? Do they spend that money on desserts/snacks/eating out? What kind of promotions will you be running? How often? What is your competition (hint: it isn't just other shaved ice stores... but stores that sell items people might buy INSTEAD of shave ice, like ice cream/frozen yogurt/smoothies/cupcakes/etc)

The questions you are asking are impossible to answer. I would suggest you spend some time at a local SBA office and see what training and courses they have available. Talk to as many similar business owners who are willing. Get demographic information and talk to people in the market. Get location information and # of cars that pass and speed limit and visibility information. Write a business plan and have someone with experience critique it.

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IceClouds
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Re: How much money can I expect to make a day (ball-park) with a storefront?

Postby IceClouds » Thu Apr 12, 2018 5:47 pm

mrjosco stated it best, There is no way to answer your question accurately without you putting in some serious research. My advice start small, such as a tent or food trailer and build up from there. That is exactly what I am doing. Building my business and the brand then looking to see if i could pull off a storefront.

Loopdan
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Joined: Sat Oct 01, 2016 6:51 pm

Re: How much money can I expect to make a day (ball-park) with a storefront?

Postby Loopdan » Thu Apr 12, 2018 8:07 pm

Short answer: It's unlikely you will take home $100k-$150k a year, at least for a while.

Longer answer:

For every storefront that makes a fortune selling flavored H20 and sugar, there are others that barely scrape by, or end in bankruptcy. Building out a storefront is a significant investment. You need to do local research and develop a business plan.

Unless you are an established brand you will not be an overnight success. The number one reason why food service businesses fail is lack of capital, so taking a salary when you are just getting started is not a good idea. Unless you have significant savings, you will likely need to keep your day job and somehow also manage this business on the side until it is well-established.

I would not count on $100k-$150k a year anytime soon. You should instead anticipate not taking any money out of the business for at least the first year. If your personal finances can't survive that, then you might reconsider or delay until you've developed a plan that allows you to not depend on $100k+ in income from this venture.

Let's work out some basic numbers: If your profit margin is 20% (which is very unlikely with a storefront) you would need to generate $42k in gross sales a month to earn $100k pre-tax. If you are open seven days a week this is $1,400 a day in gross sales.

A more realistic 10% profit margin would equal $2,800 in needed daily sales to generate $100k pre-tax. that means averaging $2,800 a day year-round. If your average serving is $4, that is 700 servings.

I agree with IceClouds about starting small and building your brand.

ShaveIce²
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Location: Honolulu,HI
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Re: How much money can I expect to make a day (ball-park) with a storefront?

Postby ShaveIce² » Fri Apr 13, 2018 10:21 pm

You guys are absolutely, positively, correct!

One thing to keep in mind before you open a shave ice store, you are not in it to get rich.

I have came across countless customers with unrealistic expectations simply because they think shave ice is a high yield and high margin product, trust me it is not. Even in Hawaii where we are sunny year round, there are only a handful (less than 10) shave ice stores that sell over 500 cups a day. Only the top guys sell over 500 cups, and you have to be known to sell over 1000 cups consistently.

The So Cal market is really fickle and trendy based, especially if you are in LA county or OC. A niche product will be required and most likely you will have to supplement your income with catering and do private functions. You also will have to be hands on meaning no excessive employees and do everything yourself. With all those factors, you will possibly be able to hit 80k ebitd.

Main thing is to be realistic in your expectations, don't be disheartened if you break even or lose the first two years, and be hands on with everything. With patience, time, and a good product, you can achieve that 100k+ mark.
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shavedicetrucks
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Re: How much money can I expect to make a day (ball-park) with a storefront?

Postby shavedicetrucks » Mon Apr 16, 2018 8:27 pm

Remember that location is absolutely key. It can make you or break you. No matter how awesome your product, staff and branding may be, if you're not in the right spot, it can fail quickly.
Just because it's a killer building for a killer price doesn't mean it's the best spot for a shaved ice biz.
Paying a higher rent for a better location is usually going to be a better move. You also have to think about utilities (electric, water, phone, internet), signage, repairs, advertising/marketing, etc.
Hope you're wildly successful!


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