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So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

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221–230 of 251 posts

Re: So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

#221

Earlier quoted context omitted.

So how do coffee shops like Starbucks mange to support 20 working part time plus a corporate headquarters and make a profit, from the same small store you would operate as a hobby?

I have a friend who runs a brewery. They distribute a ridiculous amount of their product into stores around the world and have won many awards, yet they make very little margin from all that. He told me they make an overwhelming amount of money off of the tasting room attached to their physical brewery because the beer itself is effectively water in terms of cost so they make profit by not having to pay any middle me…

Don't forget the "tax advantages" of Starbucks

Re: So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

#222

I was a founder and operator of the Los Angeles free co-working space DropLabs. We lasted for 3 years before closing out of lack of interest. We never intended anything other than a free place for geeks to collect and work. We had events in the evenings, which were fairly popular. Having multiple partners with graduate business degrees, we chose not to incorporate, we just rented a space and called it "Droplabs" (why…

I knew that the vibe on the west-side had changed when I saw more people in coffee shops 'working' on their startups and not screen plays. Probably good for LA overall, though, more diversity in the economics.

Re: So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

#223

Earlier quoted context omitted.

Shall we call this mysterious coffee chain Glorious Pants Coffee Company?

lol :) I am a huge fan of Gloria Jeans (especially their Mudslide Mocha), but it isn't them. Gloria Jeans run on a franchise model & earn their money from selling franchising rights, collecting franchise fees, advertising fees & requiring franchisees to purchase coffee beans etc from approved suppliers that in some cases are owned by the umbrella company. I understand they're considering a shift to a company-owned st…

Now you’ve got me intrigued. My second guess would be the Coffee Club. Apparently, and surprisingly, they are the largest chain in Australia. Hudson’s, Gloria Jeans, Michels Patisserie all seem to follow the franchise model and stick to malls, whereas the Coffee Club is more likely to be found in a downtown location. And they are inexplicably successful given the experience is not that outstanding.

Re: So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

#224

Earlier quoted context omitted.

By selling a LOT of coffee. Starbucks stores can have a 1000 orders per day [1] A poet / artist space will be lucky to have a few dozen people come in every day. [1]: https://www.quora.com/How-many-customers-does-an-average-Sta...

1000 day seems low to me. That’s only ~$10k/day. Can they justify at that rate?

Are you saying 10k a day is low? That's 3.65 million a year- that's absolutely enough to support rent, part time employees, and a nice profit margin (~10 - 15% on average).

Re: So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

#225
post #3

Tim Harford covers this in one of his books - I think it was The Undercover Economist . Almost all the money you pay for an expensive coffee at a coffee shop goes to the landlord, and he explains the reasons why.

Almost all of what you’re paying for by going to a coffee shop is the diversion away from home / nice place to spend some time, so that makes sense.

Re: So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

#226

Earlier quoted context omitted.

It wasn't when Starbucks started. There used to be a real dearth of quality prepared coffee in America, and Starbucks was often the first place in many towns (not talking NYC or LA or San Fran or Chicago) to get a decent cup of coffee. I don't know what to take from that though with regard to what y'all are arguing about, I can't really explain the economics of it all. But I think it's a fact that at the point Starbu…

Well, I agree with you, but it doesn't contradict my point. The fact that now, in 2018, it's possible to easily get high-quality coffee in Australia is not a complete explanation of why Starbucks is not popular there, since the same is true of the United States.

Well, the argument would be that Starbucks got it's national market share when that was not true in the U.S., but does not have that opportunity now in Australia. shrug.

Re: So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

#227
post #165

Earlier quoted context omitted.

No, actually just shitty. There were criminal charges. The two people mainly responsible got prison time. https://en.wikipedia.org/wiki/2016_Oakland_warehouse_fire#Cr... Also that's crazy about that smart door... Pretty sure that's against fire code if it's one of the only exits. Ignorance isn't an excuse when other people's lives are concerned, either.

But the landlord didn't get charged, the people who leased the building from him did.

If someone leases a building to me, and I turn around and let you live there under certain conditions, who is your landlord-- my landlord, or me?

Re: So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

#228

Earlier quoted context omitted.

Shall we call this mysterious coffee chain Glorious Pants Coffee Company?

lol :) I am a huge fan of Gloria Jeans (especially their Mudslide Mocha), but it isn't them. Gloria Jeans run on a franchise model & earn their money from selling franchising rights, collecting franchise fees, advertising fees & requiring franchisees to purchase coffee beans etc from approved suppliers that in some cases are owned by the umbrella company. I understand they're considering a shift to a company-owned st…

Gloria Jeans actually started in America (in a Chicago suburb in 1979) and were common in Illinois and Wisconsin in the early 1980s. They've pretty much died out here -- interesting to learn that they had a second life in Australia.

Re: So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

#229
post #224

Earlier quoted context omitted.

1000 day seems low to me. That’s only ~$10k/day. Can they justify at that rate?

Are you saying 10k a day is low? That's 3.65 million a year- that's absolutely enough to support rent, part time employees, and a nice profit margin (~10 - 15% on average).

Yes (I’m guesstimating $10 per customer). That’s fine for a mom and pop coffee shop maybe. But does that support a Starbucks? I’d guess no. I’d guess that Starbucks needs 2-3x that to justify keeping the location open.

Re: So You Want to Open a Small Press Bookstore/Artist-Run Space? A Cautionary Tale

#230
post #95

Earlier quoted context omitted.

I don’t think there’s such a thing as “inclusive” long term prospering community. If you can’t ban a-holes you will lose all positive forces acting on your side.

It's a balance between accepting and integrating everybody vs removing people who degrade the former.

Having seen what happens when you don't ban any assholes, no, it's not a balance. You shoot first, shoot later and shoot again a couple of more times to make sure.

All it takes is a few days for a community to turn toxic. The communities that ban people preemptively work, the ones that give them the benefit of the doubt don't.

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