It’s increasingly becoming my wife’s dream and I want to know what it would take to make it a reality

Fat Tony’s Deli.

often dreamed about it mate, seriously.

Shop? yes

Deli? no

location, location , location .

from a legal point of view you will have to register with the council environmental services .

lots of info on fsa website re current legislation for food business .

You don’t need to do a change of use for 2 years now.
Do your sums. Everything needs paying for. The till rolls, terminal rolls, terminal transaction fees paper bags, radio licence x 2 .The list is endless.
Our new members of staff are really surprised when I show them the amount of stuff we have to “give away” to complete a sale.

A rather shallow answer from me- LOTS OF OLIVES! And even more chorizo and other niche-meat.

My best friend set up a café/deli about 5-6yrs ago and worked 8-14hrs 7 days a week and then lost his investment, a ton of additional cash and came damn close to losing his home. It almost ruined him.

So get a great location and try to do something different but be under illusions its incredibly hard work.

I would look at how many food businesses had changed or folded in the area, it’s a saturated market & people are now looking for value unless you are in “the” local area.
HTH.

The one in Dunkeld (and Pitlochry) may be for sale.
I heard a rumour a couple of weeks ago.
Perfect positions, but this may influence the price to be rather higher than most people would pay.

I’d say location, location, location. My favorite is in Llandeilo. It is surrounded by a host of independent niche traders- a traditional toy shop, a jewellery workshop, Peppercorns the kitchen shop (who really need to up their level of service) the local vets, lovely clothing shops, proper butchers etc…

shop – Yes

Don’t underestimate your setup costs. Don’t expect to draw a ‘wage’ anytime soon.

Do be realistic about your expectations. Do draw up a business plan.

Email is in profile if you would like a chat.

It looks like hard work, This one is great http://www.thebuffetshop.co.uk/index.htm – Owner is a legend. One of the reasons people love it and make it a destination. He operates like a drug dealer – gives a tiny bit away free, and gets children addicted.

What reason will people have to choose Mrs Pook’s Deli over the other options?

It could be a convenient location; but this may mean high rent.
It could be lower prices; but this will reduce your margins.
It could be a unique or unusual menu item or novel way of serving things (like fries and coleslaw on a the sandwich at Primanti Bros) but this may narrow the appeal
It could be the employees attire like Hooters. but this may get you killed for even suggesting it! 🙂

It doesn’t have to be a gimmick; in fact its probably better if it is not. But be honest and ask why people would choose to eat there.

In economic terms, what will be her competitive advantage?

My friend just did it.
It can work and you’ll sell sandwiches. But will you earn enough to live?

Try and work out how many sandwiches you need to sell to make £20k a year each. It’s a lot. Plus you won’t really get a wage for the first few months.

You need a plan e.g. work our asses off for 5 years, be totally skint (personally) and open 2 more del; is, then sell the business.

I’ve had my own catering business before, so have some experience. My newer plan is to make condiments. Once everything is up and running then it gets made in a factory and sold in supermarkets. I want to be making money while I’m asleep.

Not personally but 2 friends have, one was didn’t work, one is working as we speak.

The on that didn’t work had all the attributes you want. It sold genuinely award winning food (with a good profit margin), it was different enough to stand out without being gimmicky, it was a lovely place to spend time and people who went there recommended it. It failed for 1 reason, the location. It was in a new build complex with virtually no passing trade and you had to pay to park anywhere near it, he took the location as they were doing preferential rates for new businesses. No people = no money, no matter how good your product is.

The one that is doing OK spent a lot of money on a High Street location, a LOT of money. He has passing trade, is selling a lot of stuff (coffee and brilliant cakes mostly) but is still struggling to make much money. He breaks even, just, and this is because you need to sell a hell of a lot of stuff just to pay the bills. He works full time during the week and at the shop in the weekends, his wife is full time a the shop and doesn’t take a wage. He has, after a beer or 2, described it as one of his worst decisions.

Personally, after what they have experienced I would go nowhere near such a venture…

On the local high street near me, there are some successful Deli’s (been there years, always busy) and some shops which endlessly open up as a new Deli / restaurant / Cafe and then close 6 months later having bankrupted someone and reopen under new management as something else…

It’s a tough world, and you need a winning formula or you just go bust…

Set Mrs Pook expectation that she will work more than she ever has and for less money. Then add in the stress of ownership, dealing with all the issues you didn’t plan for.

I think a lot of people have a very rosy picture of how this sort of thing will be. It definitely can be done and it can be a big success but typically, it’s a lot of work for not much financial reward (but possibly a happy life).

And even then if you get it going, you’ll need to change with the times to avoid gradually losing customers – people always like something new.

Pook’s Pork

I’ve worked in retail for a long period before my current job, and there is no way on earth I’d ever set up my own shop. Ever. For so many many reasons.

I’ve always fancied running a café but when I sit in one & see how hard the staff work puts me right off. The rents kill most businesses, business tax plus as the above says the stuff you don’t see, massive costs & slim margins.

Also, look at the tax forums – cafes are cash businesses so high on the watch list, owners have been done for eating their own feed & not accounting for it – if you don’t hmrc do their own estimate of what you may have taken & tax you for it. Not really something I would want tbh.

Nearest thing for me would be buying a freehold in the auction – they come up – & the café being my tenant.

Don’t do it. The margins are **** and there’s too much competition.