- sausage kiosk average(!) turnover 180.000 € (sausages cost 2-3€, better kiosks make several times that easily)
- small Subway €900k approx.
- average McDonald's €3.2 mil
I'd imagine a decent crepes place the size of a McDonald's in a good location could easily make €2 mil/year turnover and half that much profit in a good year.
When I worked in food service long ago, the managers claimed the goal (of a Subway chain) was 30% gross margin. But that's gross margin, and doesn't account for overhead, and thus is not profit margin.
It works 24/7 with shifts and has delivery that covers the whole city.
To reach that amount, this guy worked his butt off for 3 years non-stop.
1,000,000 gross in a peak year.
say business is open 290 days of the year.
avg per day = 3448 euro
if average customer order spend is ~15 euro, that's ~230 orders per day that must be made to sustain the 1mm euro gross.
So - if the biz is open 6 hours (optimized around eating times) - that would be ~38 orders/hour.
Key Questions: for the average case : is 38 orders/hour OR 230 orders/day reasonable or not?
for the non-average case: can they make 2x the orders really busy days - i.e. what is the absolute peak orders than can make in a day?
- Selling items other than crepes: coffee, tea, alcohol, soft drinks, snacks, etc all have great margins.
- If the place is a cafe, customers may stay and work/read and run a tab, increasing the average revenue per customer.
- Multiple customers may arrive as a group and run up a higher tab.
- Multiple locations: compounding revenue, higher reach, etc
There are probably many more things I'm not even considering.
One million Euro a year gross would imply more or less 3000 Euro a day. Open for 12 hours a day, that's 250 Euro an hour. At 15 Euro a crepe, that's a customer every 4 minutes the whole day. That would be a truly phenomenal success.
And that's gross. If you assume 50% margin on cost (insanely high) and that cost includes the apparently very high employee salaries. Then they need a customer every two minutes for the day. Let's say taxes take half of their net before taxes. they now need a customer every minute for 12 hours every day of the year to hit a million Euro net. All under a series of assumptions that are extremely generous to the firm.
It's hard to imagine that this story, if true, didn't involve an embellishment of scale.