Friday, 07 April 2017 10:05

Case Study #2: Opening a café in Hawkes Bay

This is one of two case studies using data to support launching your business idea

Josh and Victoria want to open a cafe in Hawke’s Bay.

At this stage, they don’t have any particular themes in mind for the cafe.
What information do they need to look at to work out whether or not it’s a good business idea?
And what factors should they aim to cater to in order to increase their likelihood of success?

Firstly - how many cafes are there already? 

There are currently 207 Cafes & Restaurants in the Hawke’s Bay region (that means that 1.13% of businesses in the Hawke’s Bay are cafes & restaurants)

*Unfortunately, as is the case with many business types - the statistical codes group them together and we cannot look at cafes alone in this instance.   

Is there trained staff in the region? There are already 300 people employed as Cafe & Restaurant managers, 288 cafe workers, and 132 baristas in the Hawke’s Bay region. 

Who will your customers be?

The largest proportion of Hawke’s Bay population are aged 65+ so there could be benefit in making your business welcoming to that demographic. 

Alternatively, you may want to locate yourself in close proximity to the households with the largest incomes. 

*High income households are visible on a map at the following link

Nationwide household spending on restaurants and ready to eat foods increased significantly from 2013 – 2016, so it does seem to be a growing industry.  

However births and deaths of café businesses are fairly balanced. 

There will be large seasonality in business, which will need to be planned for.

The bottom line? Average rent for all property types in Hawke’s Bay was $352/week in January 2017. 

What proportion of turnover will go towards wages and salaries?

Gross profit in the cafe and restaurant industry:

Josh and Victoria now have a lot more information about their community and how to provide the best service for their customers.

Thanks Amy Hooper _ Product Manager at amazing 

_ for an awesome case study!

Now, head here for some useful Getting Started with Figures tips before you start putting figures into business practice

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