One million Euro a year gross would imply more or less 3000 Euro a day. Open for 12 hours a day, that's 250 Euro an hour. At 15 Euro a crepe, that's a customer every 4 minutes the whole day. That would be a truly phenomenal success.
And that's gross. If you assume 50% margin on cost (insanely high) and that cost includes the apparently very high employee salaries. Then they need a customer every two minutes for the day. Let's say taxes take half of their net before taxes. they now need a customer every minute for 12 hours every day of the year to hit a million Euro net. All under a series of assumptions that are extremely generous to the firm.
It's hard to imagine that this story, if true, didn't involve an embellishment of scale.
Here are some actual numbers from Austria for some comparable venues:
- sausage kiosk average(!) turnover 180.000 € (sausages cost 2-3€, better kiosks make several times that easily)
- small Subway €900k approx.
- average McDonald's €3.2 mil
I'd imagine a decent crepes place the size of a McDonald's in a good location could easily make €2 mil/year turnover and half that much profit in a good year.
When I worked in food service long ago, the managers claimed the goal (of a Subway chain) was 30% gross margin. But that's gross margin, and doesn't account for overhead, and thus is not profit margin.
Sounds possible. He can also find other ways to make money - bake other stuff overnight and sell it to other cafe's wholesale, etc etc. I've known people who've done exactly this kind of thing. It's doable.
Crepes do not cost 15 euros... at the max 5 euros. But you misread the post; he didn't claim the guy made a million euros in a year, he just claimed 1 million, so it could have been spread over 10 years.
"At my highest peak" is meaningless to apply to a running total. It must be some period of time. A year would be implied, given the context of the conversation.
The numbers might line up a little more if there was a single brick and mortar and several carts throughout the city and assume the 1 million was gross not profit.
I believe it would be reasonable to assume that the combination of crepes and whatever else is sold would work out to be, generously, 15 Euro a customer. By all means feel free to disaggregate customer orders into crepes, tiramisu, and fancy coffee if you think it makes the math better.
One million Euro a year gross would imply more or less 3000 Euro a day. Open for 12 hours a day, that's 250 Euro an hour. At 15 Euro a crepe, that's a customer every 4 minutes the whole day. That would be a truly phenomenal success.
And that's gross. If you assume 50% margin on cost (insanely high) and that cost includes the apparently very high employee salaries. Then they need a customer every two minutes for the day. Let's say taxes take half of their net before taxes. they now need a customer every minute for 12 hours every day of the year to hit a million Euro net. All under a series of assumptions that are extremely generous to the firm.
It's hard to imagine that this story, if true, didn't involve an embellishment of scale.