bikingdad90
Guru
Leases often have penalties for breaking out of them at non break points. The cost of the rent is probably less than the penalty applied.
Is this good business sense?
- Thread starter Accy cyclist
- Start date
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OP
OP
Accy cyclist
Legendary Member
- Location
- The hills of Accrington
Wigan?🤔
OP
OP
Accy cyclist
Legendary Member
- Location
- The hills of Accrington
I forgot to mention that there's a sandwich/pie and peas etc shop next door but one to the pie and cake shop in question. Both seem to do well, especially at lunchtimes. People on the local Facebook page rave about 'The Chicken Shop's' (It's been called than since the mid 1960's when my grandma worked there) chicken and stuffing sandwiches. How can a chicken and stuffing sandwich be quote... 'the best chicken and stuffing sandwich I've ever had'? Surely you could make similar if not better yourself? 🤔
Archie_tect
De Skieven Architek... aka Penfold + Horace
- Location
- Northumberland
Make more sense if the leaseholder used the shop for something that would complement her own business... wasted opportunity leaving it empty.
gbb
Legendary Member
- Location
- Peterborough
if you look in any high street or shopping centre, there does seem to be a proliferation of eateries of one kind or another...my local small shopping centre has Greg's, a QD store cafe, a mini cafe and another similar one.
There maybe some logic in the idea of restricting the chances of others setting up.
There maybe some logic in the idea of restricting the chances of others setting up.
IanSmithCSE
Guru
- Location
- Worcester, Worcestershire
Good morning,
I am a little bit confused by the exact details.
For me the question of what profit means in this context is important, is this after paying the business owner's salary or before?
It is also unclear to me if the £3k "profit" is before the £800 rent or after it, is the shop really making £3.8k profit per month before or £2.2k after the rent for the unused shop.
If the store owner is paying herself, say £25k pa and is still making a £36k annual profit then it is quite a different question to the £36k/ £26.4k annual "profit" being her "salary".
In the second case any significant loss of sales would seem to make the business unviable/hobby/vanity.
Many small businesses have odd views on profit; They don't count the owner's salary as a cost, one pub that I know the owners pay themselves around or less than minimum wage as it allows them to have a style for the pub that they want but could not have if they paid themselves "properly".
Bye
Ian
I am a little bit confused by the exact details.
For me the question of what profit means in this context is important, is this after paying the business owner's salary or before?
It is also unclear to me if the £3k "profit" is before the £800 rent or after it, is the shop really making £3.8k profit per month before or £2.2k after the rent for the unused shop.
If the store owner is paying herself, say £25k pa and is still making a £36k annual profit then it is quite a different question to the £36k/ £26.4k annual "profit" being her "salary".
In the second case any significant loss of sales would seem to make the business unviable/hobby/vanity.
Many small businesses have odd views on profit; They don't count the owner's salary as a cost, one pub that I know the owners pay themselves around or less than minimum wage as it allows them to have a style for the pub that they want but could not have if they paid themselves "properly".
Bye
Ian
Last edited:
raleighnut
Legendary Member
- Location
- One of the 'Elite'
that's how Enderby ended up with 2 Co-op shops within sight of each other,one used to be a Somerfield but after the takeover became a Co-op but they won't close either for fear Lidl/Aldi will open a shop.
