Quote:
Originally Posted by rypinion
If your startup/shutdown costs are low (which I can only assume is the case for all these hipster places) I assume it's pretty profitable to jump on one short term trend after another.
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I don't think it's that cheap. For one, they have to do their own leaseholds, so they're into it for that at the minimum. Not to mention space isn't cheap and they'll definitely be locked into a lease, so that's costly as well. Installing a commercial bakery that will generate an occupancy permit is
definitely not cheap, but I have no idea whether they've done this or not or if they' baking somewhere else. Either way, printing money it's not. Selling donuts - unless you're Tim Hortons - is not how you get so rich that you can weather fickle tastes. Especially when you're running out of donuts. Even places like Cakeology have to cater to weddings and special occasions to make money. That's why I said we'll find out how savvy these guys are because they're going to have to be. $2.75 is not the new price floor on donuts.