01/10/2024
Ever wonder why your favorite restaurant, cafe, or go-to spot goes out of businesss?
This is what the federal govenment does to businesses across California. Takes from us again...when they screw up.
Why are we getting puninshed for something that is out of our control. Did we do something wrong? No. But we are the one's being punished.
Furthermore, why are we as business owners paying Federal and State tax for every employee? We pay 8-9% of their whole pay check to the federal government. Yep...And for WHAT?
You're welcome..employee and feds.
Let's list the things most small businesses pay out each month or annually that has nothing to do with materials that it takes to sell whatever it is we are selling.
Rent/Lease
$3.50-4/sq ft. Base rent. add another $800-1000 for NNN. Depending on sq ft usage.
Gas and Electric
Insurance (Better bundle to get a good price)
Worker's Comp
Payroll Tax
Accounting Fees
Lawyer Fees
Marketing Fees
Website Fees
Internet/Streaming Fees
POS System Fees
Equipment Assessment Fees
(This is a biggie) We pay tax to the county after we have bought the equipment in full that makes our products...Seriously?..Yep...Seriously!
Auto Insurance
Auto Loan
Auto Gas/Electric
Auto Registration
Linen Fees
Maintenance (Plumbing, electrical, equipment fixes)
These are the majority and it doesn't include payroll (Which is skyrocketing), other materials (Office, bathroom, cleaning supplies, etc.) or cost of goods sold.
Additionally, everything that we buy now is nearly 3 times more expensive..not 30% more, yet our prices haven't reflected that change. In fact coffee prices haven't jumped much at all since Covid. Maybe .50-.75 cents to give you, the consumer a break...
Just as an example, 1000 16oz cups used to be $39...now it's roughly 120, depending on where you buy.
That break is now over...and you may have noticed going out to dinner isn 't cheap...at all. $80-$150 for 2 people, when it used to be 65-85.
Why should the coffee business be any different...so don't be supprised when you go into your favorite coffee shop and see $10 price tag for a 16oz Latte.
We can't afford to charge $5.50 for your latte...we'll go out of business.