Forums > Food & Drink > Western-run places in KM too expensive?
First, you don't have to justify your business idea or costs calculations.
For all you should care you could charge 1000 RMB for a Coke. It's your successful business and how much profit you make, or how you make it, is as you please.
But you are
comparing 2 different things.
The local food market price vs. bulk and F&B supplier prices.
I am sure that your bulk purchase costs have not changed.
The same goes for staff salaries, unless you hire experienced, already trained staff.
The local staff we hired was had an increase of 500RMB from 10 years ago. Without experience and training in the restaurant business 1500 RMB - 2000RMB [the years ago] to nowadays 2500 RMB to 3000 RMB. All depending on skill and experience. A good staff manager or bar manager, of course can ask for more.
And I am sure that the prices you pay for coffee, booze and food ingredients have not changed a lot in the last ten years, -when buying large quantities.
Smoked salmon is very cheap, from what I remember at METRO. A bit over 100RMB for 700gram of already smoked salmon. 139RMB for a kilo of uncured salmon, if you want to trouble yourself or fry it.
Burmese avocados are also rather cheap when bought in bulk through the right suppliers, same goes with vegetables and even meat [including beef].
There have been increases in prices but in my calculations, it doesn't justify what many owners do. To link their overall prices to single market items, or just raise whenever they feel like, when the news report tofu prices
Plus, you cannot just add RMB's on all items. A restaurant lives from crowds of customers and talking about what a bowl of noodles costs has little to do with the business concept of a bar or restaurant
Well of course you can all do that and I don't have a problem with that, at all. It is a business and it shall thrive, but you have to expect complaints from customers and them argue about increases of prices.
And they are right. It cannot be that Kunming is more expansive, or at least on the same price level with Beijing or Shanghai.
that just doesn't add up
The only agreeable point is rent, but many have dodged that bullet by moving to a cost friendlier location.
I understand the frustration of some customers, I only visit two foreign owned joints in Kunming, because all others are overpriced for the quality and portions.
In short having a foreign restaurant is still a very good business with very large profit margins.
You guys seem to have a very good life, otherwise you wouldn't run the café and expand. Right?