by youngwill100 » Sun Jun 26, 2016 11:32 pm
LexusSchmexus wrote:
For simplicity's sake, I'm excluding the guys who spend $300+ on a night out at a single bar, but let's assume the following:
1-50% of the guys don't buy lady drinks
2-Of those who buy lady drinks, 50% only buy one
3-Of those who buy LDs, 25% buy 3
4-Of those who buy LDs, 25% buy 5
This works out to X/customer:
1) Average of 2-3 drafts=$4.5
2) 3 drafts+LD=$10
3) 3 drafts+3 LD=$18
4) 5 drafts/mixed drinks+5 LD=$34
Now say you get 5 customers per hour, which I think is very generous given the seating capacity/possible turnover.
1)2.5X$4.5=11.25
2)1.25X$11=13.75
3)0.625X$18=11.25
4)0.625X$34=21.25
=$57.5X24 hours=$1380/day
Anyways, there's a lot more to it, but by being generous, we reach the "bad day" quote. I'm not saying it a bad deal or impossible, but I always approach things like these with a big dose of skepticism. If the figures are correct, then it's a very good deal in terms of valuation.
The above analysis is a good 'rough' estimate but doesn't fully take into account the customers who drink $3.50 spirits/mixers. They'd be about 30% of the total customers.
The average spend of a customer is actually around $20 but does vary hugely from $1.50 - $200+.
I've checked with my source again and they said that Candy and Butterfly have similar sales. Daily daytime sales they say are $300-600 in each bar, and then much more in the night shift. So my original figures may be slightly high, but not way off.
I asked again about the reasons for the sale.
The owner is married to a wealthy lawyer and wants to spend more time with her family after several years running three busy bars. Can't blame her really. I'm buggered after just three years running one or two bars.
Sent from my iPhone using Tapatalk
[quote="LexusSchmexus"]
For simplicity's sake, I'm excluding the guys who spend $300+ on a night out at a single bar, but let's assume the following:
1-50% of the guys don't buy lady drinks
2-Of those who buy lady drinks, 50% only buy one
3-Of those who buy LDs, 25% buy 3
4-Of those who buy LDs, 25% buy 5
This works out to X/customer:
1) Average of 2-3 drafts=$4.5
2) 3 drafts+LD=$10
3) 3 drafts+3 LD=$18
4) 5 drafts/mixed drinks+5 LD=$34
Now say you get 5 customers per hour, which I think is very generous given the seating capacity/possible turnover.
1)2.5X$4.5=11.25
2)1.25X$11=13.75
3)0.625X$18=11.25
4)0.625X$34=21.25
=$57.5X24 hours=$1380/day
Anyways, there's a lot more to it, but by being generous, we reach the "bad day" quote. I'm not saying it a bad deal or impossible, but I always approach things like these with a big dose of skepticism. If the figures are correct, then it's a very good deal in terms of valuation.[/quote]
The above analysis is a good 'rough' estimate but doesn't fully take into account the customers who drink $3.50 spirits/mixers. They'd be about 30% of the total customers.
The average spend of a customer is actually around $20 but does vary hugely from $1.50 - $200+.
I've checked with my source again and they said that Candy and Butterfly have similar sales. Daily daytime sales they say are $300-600 in each bar, and then much more in the night shift. So my original figures may be slightly high, but not way off.
I asked again about the reasons for the sale.
The owner is married to a wealthy lawyer and wants to spend more time with her family after several years running three busy bars. Can't blame her really. I'm buggered after just three years running one or two bars.
Sent from my iPhone using Tapatalk