Bag of Chips. Price increase.

Discussion in 'Miscellaneous Non-financial Questions' started by Bronco Lane, 2 Jan 2019.

  1. odyssey06

    odyssey06 Frequent Poster

    Posts:
    1,502
    Since we got Nespresso machine with milk frother, our purchases of coffees out and about have dropped about 75% I'd say.
    There's even a Nespresso machine in work here. A lot of the supermarket pods are plastic, and machines can have trouble puncturing them. I find the l'Or capsules don't have this issue and make a nice cup.
    So it's only if we're looking for a coffee 'stop' we'd pay for a coffee out.
     
  2. TarfHead

    TarfHead Frequent Poster

    Posts:
    1,629
    It depends on the genus of monkey :p

    I have a clear memory of the first time I had a Starbucks coffee. From the 'Soup Nazi'-like engagement with the barista, to the taste and the after-taste, it's a memory I hope will stay with me a long time. Suffice is to say every subsequent encounter has failed to live up to that first one.
     
  3. newtothis

    newtothis Frequent Poster

    Posts:
    525
    That's a bit unclear - go on, tell us what you REALLY think of them! :)
     
  4. Monbretia

    Monbretia Frequent Poster

    Posts:
    1,551
    I would! I can make nicer ones myself anyway but trouble is I'll eat more than one :)

    50c is not that much for a one off but it mounts up if you were to tot it up over the year, the old spending diary and all that jazz :)
     
  5. Jazz01

    Jazz01 Frequent Poster

    Posts:
    646
    What ?? o_O You talking to me?? :D
     
    Monbretia and Firefly like this.
  6. noproblem

    noproblem Frequent Poster

    Posts:
    1,512
    If the net margin comes in at 5% i'd suggest they find another way to make a living. I'd be more inclined to believe coffee shops and the like should be working off a gross margin of between 70/75% and take down their costs from that figure. A lot of the problems with people going into business is their belief they have to open a snazzy place, expensive furniture, fancy cups and cutlery, etc, and their last thoughts go into the actual product. A lot of people in small business's are nice lads and girls but as far as running a business is concerned they haven't a clue. Don't bother coming back to me telling me I don't have a clue, that's just a knee jerk reaction from someone who just does not get it. If you're telling me that a coffee shop owner is working off a net margin of 5% and at the end of the day, providing he doesn't have accidents and the like, all he takes home from every €1000.00 is €50, then he doesn't need me or anyone else to tell him he's wasting his time. There's a lot of places that would do well to turn that over in a few days, anything less is working for nothing but they still class themselves as business people??????????
     
  7. SBarrett

    SBarrett Frequent Poster

    Posts:
    2,931
    Starbucks are constantly beaten on their growth model of basically being all over the place. Are they unlike any other chain in the US in that regard?
    As an employer, they look after their staff pretty well, giving their employees lots of opportunities to progress and giving ALL employees health insurance.


    Steven
    www.bluewaterfp.ie
     
  8. Purple

    Purple Frequent Poster

    Posts:
    8,762
    Same here! I have one of those little aluminium hob top coffee perculators that cost a tenner. I like it better and prefer the coffee I get from it to the big expensive machine I used to use.

    I don't like the whole brand pretentiousness that goes with Nespresso. When they sell their capsules in Tesco and Dunnes I might buy one of their machines.

    I don't like Starbucks for the same reason I don't like Nespresso, "Proudly serving Starbucks Coffee"... give me a break. It's just coffee. I don't see much difference between their offering and McDonalds Cafe coffee.
     
    dub_nerd and Firefly like this.
  9. Purple

    Purple Frequent Poster

    Posts:
    8,762
    If it's aa net margin of 5% after you pay yourself that just means you have a good accountant.
     
  10. Firefly

    Firefly Frequent Poster

    Posts:
    2,952
    Maybe it was the machine I had, but I always found Nespresso coffee just bland and watery.
     
  11. Sunny

    Sunny Frequent Poster

    Posts:
    3,432
    I am sure they are a good employer in the States. I have more of a problem with the Starbucks model in Ireland. I don't like the way they have set up numerous stores without planning permission and then just go 'Oh well' An independent coffee shop wouldn't get away with it. I don't like the way they cannibalise streets and shopping centres by setting up outlets at each end. And because they are owned by the same franchise company, they are not worried about damaging the business. They just want to crowd out the competition in the middle. Which is fine but I just don't like it.
     
  12. Jimmy Dee

    Jimmy Dee Frequent Poster

    Posts:
    51
    FYI
    Seashell of Lisson Grove, (not a bad option and comparison):
    A regular bag of chips is £2.20 (large is £2.90)
    A regular cod is £7.60
     
  13. Cervelo

    Cervelo Frequent Poster

    Posts:
    440
    A bit far for me to travel to, they'd be a bit on the cold side by the time I got home :D
     
  14. Jimmy Dee

    Jimmy Dee Frequent Poster

    Posts:
    51
    No probs, just get in your roller and you will get there in no time at all
     
  15. Jazz01

    Jazz01 Frequent Poster

    Posts:
    646
    Geezzz all - I've having cravings for "chipper chips" followed by a mug of coffee... not a good time to be reading these posts ... stomach is talking to me :D
     
    odyssey06 likes this.
  16. newtothis

    newtothis Frequent Poster

    Posts:
    525
    Last edited: 8 Jan 2019
    I’m fine, thanks. What do you think it should be?
    For coffee, that’s about right for a gross margin, though for other items (e.g. bought in food or cold drinks for resale) it would be much lower. The problem is the fixed costs are high and you have to sell a lot of what is at the end of the day a relatively low-value product to cover them. That, and/or charge a reasonable price, which currently works out at around €2.50 to €3.50 for a cup of coffee.
    Have you been to any independent cafés lately? Most are pretty basic in terms of décor and fit-out. Partly this is because of a design aesthetic that calls for a stripped-out industrial look (no plaster on the walls never mind paint, concrete floors etc.), but partly it’s because they can’t afford or don’t want to spend money on “snazzy places” and would rather focus on the actual product.
    Thanks! I'll try not to take that personally. I’ve no doubt some are like that, but a bit harsh to write off an entire industry, no? For the record, I’ve owned and run several businesses across a couple of industries (technology and hospitality) and have found that whilst the industries are very different in all sorts of ways, there’s a mix of competencies in both. One thing I do know: because of the structural costs, it is very hard to achieve high net margins in the coffee business.
    I wouldn’t say you don’t have a clue (a bit harsh), but I think it’s likely you are making a lot of assumptions that are not valid.
    But that’s exactly my point: a 5% return on a business investment is not a good one, hence it’s not a good industry to enter if you think there are riches to be made, despite what you think. It depends on what you mean by “all he takes home” as well; if the owner is working in the business as well as investing in it their wages are a cost item. I think it highly likely that this is how most owner/manages cafés are run: essentially, the owners invest in them to give themselves a job in one. If it really was such a (potentially) lucrative business as you seem to believe it is, there would be a lot more businesses in it that would scale and exit, whether by going public or trade-sale. The fact that this is such a rarity in the industry is an indicator that your assumptions are incorrect.
     
    Last edited: 8 Jan 2019