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Re:I Sell Onions on the Internet by notafraudster on Tuesday April 23, 2019 @02:04PM (#19731175)
Napkin math:

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.

Re:I Sell Onions on the Internet by lazyjones on Tuesday April 23, 2019 @04:07PM (#19732328)
Here are some actual numbers from Austria for some comparable venues:

- 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.

Re:I Sell Onions on the Internet by taurath on Tuesday April 23, 2019 @07:20PM (#19733996)
A 50% margin on food service is unheard of. That McDonalds is making 5-9% a year most likely, which is in line with food trucks generally.
Re:I Sell Onions on the Internet by jholman on Wednesday April 24, 2019 @02:46AM (#19736130)
Agreeing with you:

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.

Re:I Sell Onions on the Internet by stephen82 on Tuesday April 23, 2019 @06:08PM (#19733449)
This shop does not sell only crepes, it sells also other related things, like donuts and waffles, organic juices, and the like.

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.

Re:I Sell Onions on the Internet by evasote on Tuesday April 23, 2019 @09:27PM (#19734772)
Sounds possible. He can also find other ways to make money - bake other stuff overnight and sell it to other cafe's wholesale, etc etc. I've known people who've done exactly this kind of thing. It's doable.
Re:I Sell Onions on the Internet by Stevvo on Tuesday April 23, 2019 @02:11PM (#19731241)
Crepes do not cost 15 euros... at the max 5 euros. But you misread the post; he didn't claim the guy made a million euros in a year, he just claimed 1 million, so it could have been spread over 10 years.
Re:I Sell Onions on the Internet by incog-neato on Tuesday April 23, 2019 @02:21PM (#19731343)
"At my highest peak" is meaningless to apply to a running total. It must be some period of time. A year would be implied, given the context of the conversation.
Re:I Sell Onions on the Internet by andyidsinga on Tuesday April 23, 2019 @04:07PM (#19732327)
Hmm - here's how I did the back of napkin math:

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?

Re:I Sell Onions on the Internet by jakebellacera on Tuesday April 23, 2019 @06:13PM (#19733496)
While I am skeptical as well, there are a few other scenarios that aren't being considered in your napkin math:

- 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.

Re:I Sell Onions on the Internet by Zanni on Wednesday April 24, 2019 @02:07AM (#19735960)
Multiple locations was my first assumption. In fact, multiple locations, some of which had closed since the peak.
Re:I Sell Onions on the Internet by ajhurliman on Tuesday April 23, 2019 @03:14PM (#19731860)
The numbers might line up a little more if there was a single brick and mortar and several carts throughout the city and assume the 1 million was gross not profit.
Re:I Sell Onions on the Internet by grecy on Tuesday April 23, 2019 @03:00PM (#19731714)
Do you honestly believe crepes are the only thing sold at a crepe shop?
Re:I Sell Onions on the Internet by notafraudster on Tuesday April 23, 2019 @03:12PM (#19731845)
I believe it would be reasonable to assume that the combination of crepes and whatever else is sold would work out to be, generously, 15 Euro a customer. By all means feel free to disaggregate customer orders into crepes, tiramisu, and fancy coffee if you think it makes the math better.