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Starting a Cafe.

Discuss your views about Singapore business & economy, current policies & issues, starting a business in Singapore.
asidie
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Starting a Cafe.

Postby asidie » Wed, 12 Jan 2011 10:15 pm

Hi All,

I intend to start a small cafe. I have been working on a business plan. And i'm looking at investing around 120k with 2 other friends. I am very passionate and serious about this and also think im rather creative in terms of concept and ideas yet im limited by F&B experience and basically starting a business.

I do have concept in mind, but i don't think i should share now to potential competitors.

Anyone here kind enough to provide some advise on:

1. Licensing for beers? What will be the average fees per how long?
What kind of supplier beside Asia Pacific Brewery.
And basically all the how-to-go about doing it.

2. In term of leasing of space?
What will be the normal lease? and what is advisable?

3. Sequence of Event?
Registering a name, Renting of space first or getting supplier first?
What will be the ideal procedures or steps? And also how long will the renovation "normally" take?

4. What is the advantages between taking over and starting from fresh?
Time? Save cost? and also allow me to understand the area better?

5. In terms of starting a cafe, what other possible way to get funding as I currently only have 1 possible partner.


Some of the question i have did some research, but i really hope to hear from those who have more experience here. At the same time, making new friends. If I can manage to get it set up, will definitely buy you guys coffee.

Do reply this tread or email me at raytwm@gmail.com to discuss further.

Cheers

thismyvoice
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Postby thismyvoice » Thu, 13 Jan 2011 10:56 am

Let me try to answer some of your questions.

1. Licensing for beers? What will be the average fees per how long?
What kind of supplier beside Asia Pacific Brewery.
And basically all the how-to-go about doing it.

Believe liquor license is for 2 years. Details can be found in licences.business.gov.sg.

2. In term of leasing of space?
What will be the normal lease? and what is advisable?

Depends on your landlord. Most F&B will lease for at least 2 years in order to recover the initial investment in renovation, etc

3. Sequence of Event?
    Registering a name, Renting of space first or getting supplier first?
    What will be the ideal procedures or steps? And also how long will the renovation "normally" take?

I believe you should either register a company or look for shop space first. Registration of company is pretty straightforward and fast. There are companies that can help you register if you are unsure about the procedure. Charges about $1000 I think. With a company, you can then tender for shop space.
Location is key to cafe business. Choose you location properly and take your time. Don't rush into the first deal you find. Some landlord are pretty fussy. They may require your company to have at least a few years track record before allowing you to rent a space. Others may insist that you have a minimum $$$ in paid up capital before allowing you to rent. In short $2 company does not cut it.
Some reasonable landlord will give you 1 month free rent during renovation period. Depending on the size of your shop and what you intend to do, it can take 1 month to xxx month. Like other countries, most contractors in Singapore do not keep to their schedule so be prepared.
4. What is the advantages between taking over and starting from fresh?
Time? Save cost? and also allow me to understand the area better?

    If you are a newbie, gives you a lot less headache. There are so many things you need to know
    Is the shop you rent for F&B or retail?
    Is there water supply?
    Do yo know how to design the kitchen? It is not as simple as it looks. There are certain requirements.
    What are the equipment you need and where to buy them?
    Does the shop has sufficient power to power up all your equipment?


5. In terms of starting a cafe, what other possible way to get funding as I currently only have 1 possible partner.

Ask your mom
:D
Ideas are a dime a dozen. Most F&B outlets here do not last 1 year. Competition is stiff. However, I suppose you have to start somewhere. Would suggest you get someone with F&B experience as a partner.

Good luck.

curiousgeorge
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Postby curiousgeorge » Thu, 13 Jan 2011 12:16 pm

And if you're an expat then you're SOL...the only way to start a new business is with an Entre Pass, and one category that MOM won't issue an Entre Pass for is...Cafes.

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Postby Strong Eagle » Thu, 13 Jan 2011 12:28 pm

curiousgeorge wrote:And if you're an expat then you're SOL...the only way to start a new business is with an Entre Pass, and one category that MOM won't issue an Entre Pass for is...Cafes.


Not correct. They won't give you an Entrepass for a hawker center or food court stall but if you are opening up a restaurant, you can most certainly get an Entrepass. I know someone who has done this.

And just to share a story: The process of getting permits nearly bankrupted him. Everything took much longer than anticipated, and some things had to be appealed. If you are doing anything out of the ordinary, be prepared for the gahmen bureaucrats to scratch their heads and say no.

OP, you really need to google 'restaurant economics' or 'restaurant finances' to see what you are getting yourself into. Count 30 percent for food costs, 30 percent for rent, 25 percent for labor in the Singapore market, and you'll see that you only have 15 percent of gross sales to cover everything else, including profit.

asidie
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Postby asidie » Thu, 13 Jan 2011 5:25 pm

Really thanks everyone for replying.
It does clear a lot of my queries.

You mean there is companies who help people to register their company? And they are charging 1k for that kind of services?

Ok so there is regulation in the design of the kitchen and i guess the layout for the whole place in terms of fire evacuation i presume?
Who can i seek advice from in terms of designing the cafe layout?

And also are there any regulation on having band performances in the cafe?
If so, care to share share?

I guess as a first-timer, taking over an existing cafe is more ideal for me.
Any advice to share on what to look out for if taking over a cafe?

And also i have seen a retail stores selling books, toys and camera with 3 coffee table for consumer to relax and enjoy a cup of drinks. Do you need license for that? Since the customer is buying food in the premise.

And by the way, im local. I know this is an expat forum but im not too sure where else to seek advice and expertise from. pardon me.

buzzgeek
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Postby buzzgeek » Mon, 17 Jan 2011 1:00 pm

Being an entrepeneur, first things first. Learn to figure out registering yourself. It's a good habit as you will learn along the way the prerequisites moving forward. Getting people to do will cost you $1,000. Doing it yourself will cost you $315 + (a coffee for me $6.30 - Venti latte) $322.

My 2 cents. Regards

asidie
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Postby asidie » Sun, 23 Jan 2011 6:33 pm

Buzzgeek,

Thanks for the advice, I guess self registration will be the way to go.

By the way, as mention before.
Does anyone have an answer on the question below?

And also i have seen a retail stores selling books, toys and camera with 3 coffee table for consumer to relax and enjoy a cup of drinks. Do you need license for that? Since the customer is buying food in the premise. ?

Cheers

thismyvoice
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Postby thismyvoice » Tue, 08 Feb 2011 11:48 am

There are regulations regarding kitchen design. Off hand I can think of tiles used, no food items on floor, etc. An experienced Reno contractor will be able to tell you more.

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Postby WressesKisy » Mon, 14 Feb 2011 11:14 pm

registration first

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aster
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Postby aster » Tue, 15 Feb 2011 1:57 am

This is such a tough business to get into. I've seen cafes pop up every now and then and after being away for a few months it's not uncommon to see this one shut down, that one long gone, etc.

Is the idea just to open up a cafe and see how it goes or is there a specific location in mind, theme, etc.? What exactly will bring in the hoardes of customers?

pacads
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Postby pacads » Tue, 15 Feb 2011 2:00 am

buzzgeek wrote:Being an entrepeneur, first things first. Learn to figure out registering yourself. It's a good habit as you will learn along the way the prerequisites moving forward. Getting people to do will cost you $1,000. Doing it yourself will cost you $315 + (a coffee for me $6.30 - Venti latte) $322.

My 2 cents. Regards


You forgot to mention he needs someone to act as his company secretary. He may act as his company secretary only if there is 2 or more directors. Are you someone very familiar with compliances? If not why save on a fee that cost you less than a grand a year which is less than $100 a month? Unless you think you have the time and effort to comply with the regulations otherwise I feel you have better use for your time.

qualityprojectors
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Cool intiative

Postby qualityprojectors » Wed, 16 Feb 2011 12:22 pm

I think thats a nice initiative !!
I'd suggest that you should for some Iranian tea option also.
That really in demand.
on top of it If you need Indian tea direst from farmers Then I can get you that also.

mspiggie
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Postby mspiggie » Wed, 16 Feb 2011 1:13 pm

asidie wrote:Buzzgeek,

Thanks for the advice, I guess self registration will be the way to go.

By the way, as mention before.
Does anyone have an answer on the question below?

And also i have seen a retail stores selling books, toys and camera with 3 coffee table for consumer to relax and enjoy a cup of drinks. Do you need license for that? Since the customer is buying food in the premise. ?

Cheers


I'm interested to know the answer too! Anybody can help???

pacads
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Postby pacads » Wed, 16 Feb 2011 3:05 pm

mspiggie wrote:
asidie wrote:Buzzgeek,

Thanks for the advice, I guess self registration will be the way to go.

By the way, as mention before.
Does anyone have an answer on the question below?

And also i have seen a retail stores selling books, toys and camera with 3 coffee table for consumer to relax and enjoy a cup of drinks. Do you need license for that? Since the customer is buying food in the premise. ?

Cheers


I'm interested to know the answer too! Anybody can help???


Unless you are selling pre-pack food (Authorised food factory) and canned drinks or else you require a license and you need to go for jab.

asidie
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Postby asidie » Thu, 24 Feb 2011 8:01 pm

Thanks for all the reply guys.
Really glad that this forum have so many helpful people

qualityprojectors: Thanks for the suggestion, I have never tried any Iranian or Indian tea before. Any recommendation on where to try it?

pacads: I'm not good with compliances. any idea where can I go to find out more about this? Or if i really need some company or people to help. Any recommendation?

aster: The main idea is a cafe, but with some theme which i'm not very comfortable to disclose it for now.

thismyvoice: thanks for those advices, I will also will like to get an experienced reno contractor. Once again any recommendation? hehe

Really thank everyone who reply to this thread :)
Cheers


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