I Bought a Chain of Coffee Shops - Week In The Life of a Business Owner
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- Опубліковано 20 сер 2023
- In this episode we go behind the scenes on a new business I bought, a chain of coffee shops! We visit some sites and learn where we need to improve. This a week in the life of a business owner.
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Who am I?
My name is James Sinclair and I'm the founder and CEO of The Partyman Group of Companies. I started building my business when I was just 16 as a family entertainer after that I built up an entertainment agency, then moved into building a leisure and day nursery businesses. Today we operate a £30 million business which includes leisure, childcare, outdoor attractions, commercial property, arts and crafts manufacturing as well as one of the UK’s oldest Ice cream companies; The Rossi Ice Cream Company.
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Mate, it's so refreshing that you ask the staff, "what's wrong"?? So many managers/ directors think they know more than the staff on the floor. Good work!
Brilliant advice.
I rented a shop near to where I live and not only did I pay a rent deposit, I also had to sign up to a dilapidation clause which meant after I exercised my break clause after 3 years (but 9 months of me paying no rent as I had cancer and had to close the business), I had to repaint the whole shop and put new flooring in. I was so naive.
However, even worse was the personal guarantee I had to give…it nearly wiped me out.
It would be a struggle to turn that shop round
Not enough footfall
Costa left for one reason
This channel is fantastic and what a inspiration you are
Your like a machine just keep going and going with new ventures
I wish I had half your motivation 👍
You might need some more data about activity there, but yes it looked quiet. Maybe try to reduce the rent?
If Costa couldn’t make it work probably not a good sign
It was a franchise...
The strength James has is the other complimentary businesses in the portfolio. This reduces pressure on a single business model.
@@marcevans1284 yes for sure, vertical and horizontal integration
Agree. sad looking place with astronomical lease price.
Thank you James for this ATV idea, rhat was a gold nugget.. I will start using it
Hi, just to say a quick thanks for your content!
3 years ago I set up a commercial floor cleaning business as a so called side hustle. Fast forward a couple of years and my job became the side hustle and at the end of September I'm actually about to meet my lifelong ambition and sack my boss!!!
I intend on putting out some content with my niche being about the diary of a small business owner. Your content has been very inspiring since I discovered it a year or so ago.
Anyway, have a great week and thanks again.
thanks James for sharing your business activities and how you deal with workloads etc etc
No one else does what you do, transparent, helping us understand and gain experience
Definitely not a good shop to rent out, no foot fall and no parking, also very expensive. That would be a no if it was me. Great video as always mate, keep it up man!! 🔥🔥
Investing in alternate income streams should be the top priority for everyone right now. especially given the global economic crisis we are currently experiencing. stocks, gold, silver, and virtual currencies are still attractive investments at the moment.
If you don't find a means of multiplying your money, you will wake up one day and realize that the money you thought you had, had been exhausted. Investment is a ladder to climb the financial wall.
Cryptocurrency investment, but you will need a professional guide on that.
Facebook 👇
Evelyn C. Sanders
Telgrm ✍️
First: as usual nobody comes close to how informative and instructional James is with this content - real practical detail on the pitfalls of dealing with business leases. So many people end up in trouble with these especially as new businesses. Secondly: yeah the location is too quiet - you can make and improve as much as you like but if there is no footfall it simply won’t work. Agree that the destination store in central London could be the strategy, although the maths will look frightening!
Thanks for your lovely words! Thanks for watching
I've revived a pizzeria, started a burger take-out and I'm busy with a Cafe start-up at the moment - what you've said is so relatable!
I'd take the store but try to beat them down on the rental a little, you can leverage a site like that over the long term.
£43,000 appears rather steep to me. Prioritising the asking price so highly suggests that the landlord may have concerns about its true value. Perhaps it would be more prudent to opt for a smaller store in a more favourable location.
Best and most authentic entrepreneur - i slways wished for a channel like this. So glad I found you.
ps. I sent you an e-mail regarding meals for day nurseries. I think that would fold nicely into your empire
Where did you send it?
@@JamesSinclairEntrepreneur I own a wholesale drinks company I stock brands such as coca cola would you be interested in a price list
@@yizchaklazarus8637 please send to our buying manager paul.rafferty@rossiicecream.co.Uk
@@JamesSinclairEntrepreneur here is my message again. I hope this is of interest to you
Hi James.
(I know it is probably not you reading these messages. Hi kind person who is reading this. If this is of any interest to James , please be so kind and forward it to him)
My name is Mathias. I am from Vienna, Austria.
Here is my question:
Do you cook meals for your day nurseries?
We run a business catering to day nurseries and schools here in Austria.
It ticks all the boxes for you
1. folds in your current business
2. you get long-term customers that pay you on a monthly basis
We cook around 7000 meals a day, a portion costs around €4,20 so that is nearly 6000 000 in revenue every year (I am assuming 20 days a month, 10 months a year)
and the beautiful part is that my customers have an average life span of 5+ years.
You are close to a major metropolitan area. This would be a massive business opportunity for you.
You would do double or triple my numbers.
I am more than happy to help if you need to know more about the business. I have 10+ years experience and I am happy to help..
Greetings from Austria,
Mathias
Just came across your channel. Great insight into how you run an actual business. It is so important to fully understand the lease. Think you done a great job in explaining it. Hope the coffee shops are a success.
I've been waiting for this video, thanks for sharing James. I recall seeing a video with Matt some time ago and have visited their Chelmsford store before - a great location.
I was impressed how u stopped video to explain legal jargon. Im hooked now what else i can learn from you😅🎉
I think rebranding to Rossi and pushing the coffee would be good. I’m a massive coffee lover and haven’t been into the Southend store yet. Will need to give it a try after see this!
This was great content, please keep the walk and talk and site visits coming
Another great video James !
Gut instinct kicked in as soon as you were stood outside the train station looking over at the old Costa… big no no. Too much traffic, not enough footfall.
You were standing, not you were stood. Bad grammar marks you down as a probable failure.
Great changes to come James..will be in Rossi westcliff at the weekend...brand loyalty is we have not ever eaten in any other place along that front.!
Thanks for sharing your work. Fascinating to watch.
Another great video, very open with ideas and plans. Love it
Really enjoyed this episode, very informative.
Love the show, learn a lot. Have you considered differential pricing? I’m thinking 75% off for folk who live up north - otherwise it’s just workshops for southerners....
The strategy of actually going into the shops and asking the people there why it's not performing well is mind-blowingly overlooked by most businesses. Great move. Amazing how you instantly get right down to the crux of the issues if you just ask the people that ought to be familiar with them?? 😂 Others need to learn here!
Stategic site is the most important part of business, if the london street is not busy, you cannot change the flow.. coffee 101☕ great infos✔️
Excellent video. Business strategy made simple.
That was sound genuine advise James ! Thanks !!
Again another great video, never stop.
Been waiting for this after you mentioned it.
I would hesitate before taking it on James. It looked quiet as an area. Maybe scope it out to see if it picks up at different times? You could have a great little eatery, but if the traffic isn't there, you're sailing against the wind.
Could you see a business need for cardboard boxes, like packaging for products that fit exactly the size of the product so no fillers needed and not getting charged extra in postage for using boxes bigger than needed?
I really do hope and I’m confident you can turn around C&C
Some very smart moves there Mr Sinclair regarding dilapidations.
Great insight into real business. I think you've revitalized my interest in the cut and thrust. Seriously, appreciate your detail, table chat format and honesty.
Like others, my spidey sense is a definite no for the Costa site. Narrow footpaths also tend to make people want to walk past quickly.
Diligent, teaching ppl some really good info.
I would choose a savory sandwich over cake to go with my coffee 👍
Videos are getting better James. BTW, did I hear you say you print your own signs? Agree, as does everyone else it seems, that there's insufficient footfall around that shop. Given the Costa franchise was there for 11 years something has changed, maybe post Covid working from home?
Here’s my average joe opinion on the coffee shops.
The black theme looks higher class and in turn… expensive, so I would walk right past without even looking further than that.
There’s a reason Costa use magnolia and a warm dark red.
@@ThorMotorWerks: Everybody goes to Pret's.... Even Gregg's is now popular too. Light and airy. As Gregg's expand their prices.. people will stop going. And find a new competitor... that is how it goes. But if you have something for the different price point and budgets, people will always come back again and again... That is just the nature of business.
⭐ *9:55** Literally her job to know basic shit like that(Business rates)* .
MAN people are coasting! I'm guessing that was the agent?
Exactly what I thought! You’d expect agents to know that kind of information when showing a property
You mean "woman".
I love these videos
James in the shop where you were wearing your pink jacket and sitting down the large looking chalkboards behind you look ripe for menus in a big white type marker…chalk too messy but acts as advertising for down below as they could see large MENU written at top! My 2p 🤗🙂
Good luck James 👍
There’s another station entrance on Station Terrace, Kensal Rise. Quieter street traffic and a number of cafes.
another cracking video!
Really enjoyed this one. Thank you for taking the time to make it. Very insightful. I wouldn't buy that costa spot.
I got caught out on the dilapidation clause when I opened my first office after using a serviced office for a year. Man that clause really screws you over. After spending insane amount of money improving the building...
Love the videos. Keep them coming please!
Wouldn't average spend be revenue divided by transactions?
Great video. Need the shop on the side of the train station to have a chance of making it work IMO
Just stumbled across this channel, brilliant informative channel!
Welcome aboard!
I personally wouldn’t be renting that particular shop, not enough footfall, especially considering it’s in London, I think you have a good thing going on with the Primark locations once the ATV rate is increased, and would try get into a few more stores, let them do the hard work getting the people into the stores, and you just provide the refreshments. Definitely get rid of the black, I don’t think pastries look too trendy, people want something a bit different.
I really liked golf course music haha
Great information
Your are right. The high street there is far too quiet. Leave it.
Costa moving out says it all!!
Nice surprise seeing you in Kensal Rise! The girl who I knew to buy a Costa every day must have stopped, she was probably single handedly keeping the place afloat 😂
By the way you want to check out the little cafes on College Road in that area for sake of business model. You're not after high street walk-ins but you're after the yummy mummies who want a boujie, somewhat floral and earthy environment to sit and chat with their friends for hours. They're high value customers who'll pay top dollar for the high end stuff with a side of sourdough avocado toast, but it's probably not the best shop for it given there are quieter streets around which can also provide the outside seating that shop can't.
Good points there. Chamberlayne Road does get busy, but probably around school start/finish times, as you said the yummy mummy crowd. There are places on that street that are always busy eg the Portuguese place, and Gails have moved in, but you need the outdoor seating.
Question the sites in Primark are they long term agreements. What if they decided to end the contract early.
Dang you'll have so many rules in the UK that slow business down.
Not getting a vote from me James...too quiet on footfall...see you in WEstcliff soon....brilliant to learn from you sir.
We need a follow up!
I personally would do a market research to see if people are spending in this economic climate. If the popular cafes are getting half the patrons there used to be, clearly it's a red flag. Problem with cafe, it's highly reliant on footfall traffic. Platform for food delivery apps don't fare well for cafe. Novelty of cafe is to sit down and enjoy the ambience
Hello, James. I started watching your videos a few months ago after finding you from Mark Tilbury and I'm really enjoying them so far. I read that you left school at 15, then started your first business at that time. You also seem to know a great deal about accounting, finance, business law, and related subjects. Did you return to school to study or are you mostly (or even entirely) self-taught?
University of life for me. I’ve also read a lot of books and been to seminars over the years.
I work in an office near Kensal Rise and use that tube station when I arrive to work - No, don't take the lease, that area is very quiet.
You need someone walking around collecting rubbish in the farm. Behind you was a water bottle on the floor and some rubbish. It may have only been there a bit but someone just doing the rounds makes a difference.
I wouldn’t go after that shop. Looked quiet but might have been the wrong time of day. I used to count footfall for Sayers Bakers when I was in uni. 👍
Floors are manmade and inside buildings. The ground is outside and part of nature. Why can't the English learn to speak?
What what I learnt from your business videos. I would say don’t take on that shop.
Footfall looks low, too far away from where you ideally want to be located.
Lease only too, see if you can buy a shop instead.
Focus on cookies and cones first and keep looking for that shop and location.
Btw it would be good to hear and see rough cost of rent in and around Covent Garden and how many customer that would translate to be profitable.
I expect buying in and close to convent garden is non existent as it is a prime location.
What app do you use to track those KPI's so well?
Could you please do a video on how to create a successful business system or various business systems
I like Italian Ice Creams.... and I love Italian food. I think that 1) you need to focus on keeping the original name. Dump the bakery part. Just call it Rossi's. Also.. I would definitely have a look at how an actual Italian cafe or Italian ice cream parlour works out. I think you will find that they are really nice.. and the flavours are so different as well ? I would also consider holding onto their gelato factory part. Cos frankly, there is a need for this in the UK, still. Light airy ice cream does sell. Again at the end of the day it is all down to execution and price point as well. Since we're supposed to be in a recession.. then surely, something to bridge the gap is a must here? Would also consider selling 1 litre tubs or 5 litre tubs towards actual social enterprises too. Or to even the food banks. And let the labels remain on it. People aren't behaving like they used to... and there is nothing to say that you shouldn't reraise back up that spending powers and to find the people too. And I also don't believe in actually that we don't have the spending powers. Breaking even.. or holding on to break even.. to uplift.. even a small gap.. is kind of what is necessary or needed mostly.
If you need any suspended ceiling tiles I’m your man. Lowest price you will find and more importantly. White coloured lol
I would put the money towards an app and deliver the food/ cakes and coffee to your loyal customers have a reward scheme that gives you data which is new gold and possibly use just eat and deliveroo you have a good base cake business problem is customers maybe do a referral bonus on the reward scheme
I was about to google that.
Absolutely love cookies and cones and glad to here you have taken this on! Would you be incorporating some of the flavours and sorbets into the Rossi brand as would hate to loose some of the fantastic flavours and cakes! our local is Wickford C&C and always super busy especially with services like deliveroo
Yep. It’s already fully integrated. All cookies baked and ice cream flavours have been put into Rossi range now.
James we all love the Rossi ice cream, without a doubt. Some of the C&C ice creams and sorbets are amazing though! Would you absorb some of their recipes/flavours into the Rossi brand to keep them going?
That’s already happened!
Go to the Rossi parlour and you’ll find all the new flavours from Cookies at your fingertips.
Plus the cookies team now make all our cakes and bakes in our Rossi shops.
@@JamesSinclairEntrepreneur
Hello.
On the London coffee shop, prices seem high but tough negotiations with the landlord was probably a good starting point. Agree with someone else that school children returning could provide greater footfall.
What about marketing on bus stops or in the train station. A pop-up marquee giving out free samples might tempt customers into your main shop later on?
Good you've purchased Cookies & Cones. It's never drawn me in despite their offering having a good reputation. My nearest are Southend & Rayleigh. (If that's still open?)
Price point felt quite steep. Gluten, dairy-free and vegan options would be great as intolerances rule out normal cookies. 🫤
There's empty units in Rayleigh and Rochford if you consider expanding the concept elsewhere. Thurrock Thameside complex desperately needs a proper cafe. It appears that the theatre was saved though council librarians serving 🤮 instant coffee wasn't pleasurable while visting last year. I know the authority is bankrupt and badly run however.
Finally, visit Muffin Break for market research. Their model has similarities to Cookies & Cones.
(I know my comment was VERY long.) 😂🫤
I'd go back when the school holidays have finished, is there schools nearby? Maybe the footfall would look better when kids are back at school
Feels like you’re someone who follows their gut, and if your gut is making you question it then I’d avoid. The lack of footfall there would definitely be a worry.
Are you not running after several bunnies in the same time?. It s a grear idea to invest in a coffe shp chain, but the investment is huge .
Impressive approach I can see why you’re a success
One plead is to NOT PLAY MUSIC. It’s my pet hate. Nobody listens and it’s often too loud and irritating. Create a light, comfortable atmosphere with decorations and quality product and I’d be in every day
But in terms of that ex Costa shop then for me it’s a no. The franchise closed for a reason and I’d wager, if I was a betting man, that it was a lack of trade
Pass on the shop, to little footfall.
Hi James i own a wholesale company for food and drink is there some where I can send a price list to
Look at the customers who shop in Primark, they're shopping there for a reason, probably dont have much money, and could buy a t-shirt for the price of a coffee. Needs to be reasonably priced to attract people.
13:48 as you said when you were standing outside of the station, not enough footfall and possibly the franschisee saw a decline over the years and thought it wasn't worth renewing the lease. Also the landlord could've hiked up the rent.
Was this Costa in NW london?
How about "Too good to go" app. Using the left over good fresh food to make a kind of "meal deal" Which people buy through the app and collect in the last 20 minutes you're open. Less waste and more revenue in. You'll also have people collecting the food in brown paper bags with Rossi on the side. Walking advertisements.
We do that already.
@@JamesSinclairEntrepreneur Haha! Of course you do. Forgot who I was talking to. Just got into your videos the last 2 weeks. I'm addicted. Your energy is amazing. So infectious. I was wondering if you could make a video on how much it costs to employ someone, "fire" or replace employees. Also what you do to keep employees happy and wanting to stay. I'm in Norway working for a great, small but international company called Cobuilder. You should check us out. People have been working here for years. As the environment and freedom is great.
Hi James
Are you able to say how cookies and cones got into administration?
I remember discovering their original tiny shop in an arcade when I visited leigh a few years ago.
Was it they just grew the chain too fast?
I think he was trying to dominate the world with expansion. There was an announcement at one point about going over to New York, that didn’t arise. A lot of the shops had broken machines and I think staff retention was an issue. A lot of the times I went there the workers seemed overstretched and stressed!
no - vpd (vehicles per day) and fpd (feet per day) is decreasing because of work at home and home delivery services. pull gov appraisals and real estate comps then make an informed offer. Commercial real estate values are going to drop by half over the next ten years before flattening out. Play the radius math game because the magnitude drop will be greater the further the radius out from natural foot traffic - like bus stations, sporting events, factories, etc., math never lies - in real estate it's never about quality - only location.
Invest in Australia mate 🤠 its the future and we have endless opportunities here..
Cream sounds better?
Not enough passing trade, is there no space inside the train station.
Only if they would move the station next to it!
I like how you rinsed those agents. Property management is usually their sole job, but they are always hesitant and never have any figures to hand. Jokers. Why would you paint the interior of a cafe black? How morbid can you get. I agree, I think music ruins it. I get sick of this in these budget gyms.
So it didn’t sell coffee before?
Give the good guy equity
I'd pass on the shop because of footfall. Wait for better shop opportunities.
Black is the worst colour for this type of business. Not only does it look closed from a distance up close it just looks dark, dismal, morbid. You need bright happy colours adds excitement to the potential customer and invites them in.
I like watching your videos as it explains everything in detail not superficial leaving questions. NO to taking the shop it is full of potential problems with a 1/2 million expense.
Came here to watch this to see what your answer was about the closed down bingo hall on Canvey….🤦🏼♀️🤦🏼♀️
I would pass.. not enough foot traffic.
Would never take that shop, coffee shops are 90% Location Location Location. If you go London go Big, That dilapidation tip alone is worth this video being watched, absolute goldmine of info for commercial renting.
Modern day Rockerfeller 🪙
Not enough foot traffic
I learn a lot here...BUT the basics can fix any business. The basic is:
1 Big Brand...is expensive because it work.
2 More volume of sales...internet, marketing, partnerships etc.
3 Quality and good prices...it works because is difficult and the costumers know that.
4 Never sales in 0 profit.
5 Big places is a good...not too big. Not too luxury.
6 The next big thing...is good for a already big business man. Don't put all' in.
covent garden store to make the rossi name national