Train Station- Kiosk:considering putting in a tender

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Banking2006

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A friend is considering making an application for license to run the above. CIE has stated that over 2 million passengers pass through the station annually.

Does anyone have any comments? It currently serves tea/ coffee/ sandwiches/ papers/ sweets/ choc etc

She also has to state what rent she proposes to pay-
 
Re: Train Station- Kiosk

That might be difficult as the current licensee is likely to retender- He had been there 4 years already.
 
Re: Train Station- Kiosk

Seems at best educated quess then. Current licensee likely to retender, high throughput. But no actual figures to base anything on.
 
Re: Train Station- Kiosk

Very risky to go in "blind" against an incumbent, who by virtue of their position, is going to hold all the aces in knowing the ins and outs of the business and its worth. Biggest risk of all is the "winners curse" - the incumbent will presumably offer what they think the licence is worth, if you are going to beat this you will end up paying a higher price, ie more than the license is worth.
 
Re: Train Station- Kiosk

I suppose you could observe the kiosk for a few days, especially at peak and off peak and see what trade there is. It might just be at peak hours, or perhaps everyone goes to a SPAR around the corner before they enter the station. Or maybe theres nothing around and the Kiosk is run off it feet.
 
Re: Train Station- Kiosk

Yes, I would do exactly that; Observe the kiosk for different periods of time, try to see what they're selling, when & what volume. Purchasing a few basic items yourself (Mars bar, coke, coffee, sandwich), should be able to tell you what their gross margin is. A quick back of envelope calculation & off you go!!!
 
Re: Train Station- Kiosk

If it's in one of the main Dublin stations (I'm not familiar with the others), it's often struck me that there's huge untapped potential with the outlets. What's there at the moment is very uninspiring.

In other words, you should look at expaning on current estimated business, rather than just matching it.

Problem is, plenty of other people are likely to have the same idea: the only real winner is IE who can just sit back and collect the rent.
 
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