Verdient man oder verliert man beim Eröffnen einer Filiale? Wenn man diese drei Rechnungen genau ausrechnet, versteht man es.

There is a saying in the franchise circle: Franchisees are most easily tempted by two things. One is the long queues outside the stores, and the other is the high turnover of the stores.

Seeing a bustling crowd and endless queues, many franchisees think they've "got it made" and immediately inquire about franchising, even wanting to secure multiple stores at once. However, the reality is often that a lively store doesn't necessarily mean it's profitable. Because - A bustling store ≠ A profitable store.

To determine whether a franchise store is worth opening, one must first calm down and calculate the following three key accounts:

Calculate the break - even turnover

When starting a business, one should "prepare for failure first, then for success".

Only by figuring out the minimum monthly turnover required to avoid losses can one feel confident.

The so - called break - even turnover is the amount of turnover the store needs to achieve when it neither makes a profit nor incurs a loss. This figure can be calculated using a simple formula: Fixed expenses ÷ Gross profit margin. That is, one needs to first know the monthly mandatory costs and then, combined with the store's actual gross profit margin, calculate the minimum revenue the store needs to avoid losses.

Fixed expenses mainly include rent, labor, and other miscellaneous daily operating expenses. These costs have to be paid regardless of the store's business performance. For example, rent is usually fixed; labor costs can be calculated based on the minimum number of staff required by the store; and among the miscellaneous expenses, special attention should be paid to electricity costs.

For categories with high electricity consumption, such as hot pot and electric - grilled barbecue, the impact of electricity costs on profits cannot be ignored. Take a self - service barbecue restaurant with a monthly turnover of 500,000 yuan as an example. The difference in monthly electricity expenses between using electric grills and charcoal grills can reach about 20,000 yuan.

Also, considering that electricity prices vary depending on the store's location, with unit prices ranging from 0.8 yuan/kWh to 1.2 yuan/kWh, the cost difference can easily reach several thousand yuan per month. If the store is located in a shopping mall, special attention should be paid to the use of air - conditioning. For example, does the mall provide free cooling? Is the cooling capacity sufficient? Do additional air - conditioning equipment need to be installed? These factors will directly affect the store's electricity load and electricity expenses.

Source: Photo taken by Hongcan.com

In addition to fixed costs, the gross profit margin also needs to be accurately evaluated.

One thing that many people tend to overlook is that the lower the store's turnover, the higher the proportion of losses, and the lower the gross profit margin will be. Therefore, when estimating the gross profit margin, one cannot only rely on the brand's promotional data but must comprehensively consider multiple key factors.

For example, losses during the processing and storage of raw materials, whether the brand charges a commission on turnover and the commission rate, the proportion of dine - in and takeaway (usually the gross profit margin of takeaway is lower), and the operating costs of various promotional activities, etc., will all affect the actual profit margin.

Therefore, when evaluating the gross profit margin, one should use multiple channels to understand the real situation. For example, one can consult franchisees who have been in business for some time and visit the stores to examine the operational details.

For example, Wang Ming wants to franchise a tea shop. He estimates that the monthly fixed costs include 15,000 yuan for labor, 12,000 yuan for rent, and 10,000 yuan for miscellaneous expenses. If the actual gross profit margin is 50%, then the break - even point of this store is: (1.5 + 1.2 + 1) ÷ 50% = 74,000 yuan.

That is, this store needs to achieve a monthly turnover of at least 74,000 yuan, which means selling about 2,466 yuan worth of products per day on average to maintain the cost line.

Estimate the ideal store performance

After calculating the store's minimum break - even turnover, one also needs to evaluate the performance under ideal circumstances. The goal of opening a store is not just to "avoid losses", but more importantly, to make a profit.

To reasonably estimate the store's turnover, one must refer to the actual operating conditions of similar stores in the vicinity. If the overall business in the area is sluggish, even a brand with strong potential will find it difficult to thrive. Therefore, from the site - selection stage, one can estimate the store's operating conditions by understanding the performance of similar stores.

Sometimes, the mall management or the landlord may provide some general information about the stores in the area, but for the purpose of attracting investment or sub - leasing, there may be some degree of "beautification".

Therefore, on - site observation and multi - party verification are indispensable. For example, one can record the customer flow, table - turnover rate, and occupancy rate of competing stores at the same time period for several consecutive days, and combine the public information such as sales volume and ratings on the takeaway platform to comprehensively judge their actual operating level.

Source: Photo taken by Hongcan.com

While referring to the performance of similar stores, one also needs to consider the possible performance differences in more specific scenarios.

For example, compare the cases of different brands in the same category opening in the same business district or even the same shopping mall. By comparing their product varieties, store layouts, marketing methods, and actual turnover performance, one can understand the performance gap and thus make a more accurate estimate of the performance of one's own store in that business district.

At the same time, one can also pay attention to the brand's performance in different business districts in the vicinity. Due to differences in business district characteristics, consumption habits, and operational levels, the actual performance of stores in different business districts may vary greatly.

Notable dimensions include: changes in customer flow and turnover between weekends and weekdays, distribution of customer flow between lunch and dinner services, the ratio of takeaway to dine - in, and the impact of promotional activities on turnover. These detailed data help make a more realistic prediction of the new store's performance.

In addition, when submitting the store site - selection plan, one can also consult the brand's site - selection personnel for turnover estimates; or communicate with veteran franchisees, who have gone through the complete process of site - selection, opening, and operation and can often provide more practical information.

Break down the store - building costs

The franchise manuals of many brands list the "estimated investment amount", but usually only cover basic expenses such as franchise fees, equipment, and the first batch of material purchases, ignoring key expenditures such as rent and deposits. Meanwhile, for the purpose of attracting investment, brand owners often make estimates based on the most ideal situation, resulting in the actual store - building costs often being higher than expected.

The level of store - building costs not only directly affects the length of the pay - back period but also determines the size of the investment risk. To truly calculate this account clearly, one must break down the store - building expenses item by item and find ways to save costs.

For example, franchise fees are usually relatively fixed but not completely non - negotiable. Some brands may launch preferential measures during specific periods, such as waiving fees or giving away the first batch of materials. Franchisees can actively consult the brand's investment - promotion department, showcase their resources and operational capabilities, and strive for more support. They can also pay attention to the brand's event nodes to see if there are any phased preferential policies.

Decoration is usually one of the major components of store - building costs. Decoration costs are generally calculated as "Store area × Unit price per square meter". Brand owners usually use a fixed unit price, and the larger the area, the higher the total cost.

If one can negotiate with the brand for a "reuse of existing facilities" and "self - decoration" plan, the decoration costs can often be significantly reduced. For example, the unified decoration price of a certain barbecue brand is about 1,200 yuan per square meter, while the cost can be reduced to about 800 yuan per square meter through self - decoration.

Take a 300 - square - meter barbecue restaurant as an example: If decorated by the brand, the total cost is 1,200 yuan/㎡ × 300㎡ = 360,000 yuan; if self - decorated, the total cost is 800 yuan/㎡ × 300㎡ = 240,000 yuan. Just on decoration alone, one can save up to 120,000 yuan, which is of great significance for controlling the initial investment and shortening the pay - back period.

Equipment procurement is also an important aspect. One should find out which equipment doesn't have to be purchased from the headquarters. If the brand allows the reuse of existing equipment and the previous store didn't have the relevant equipment, one can purchase second - hand equipment on the market before the headquarters' involvement. This can not only save costs but also ensure that the equipment meets the brand's requirements.

Finally, regarding rent, in addition to trying to get a lower rent, one should also focus on the payment method: Is it "two - month deposit and one - month rent in advance" or "two - month deposit and three - month rent in advance"? Some landlords may even require a one - year rent payment in one go. These will all tie up the initial investment funds.

In short, only by breaking down each expense item, carefully evaluating its reasonableness, checking for omissions, and looking for cost - cutting opportunities can one truly calculate the actual cost of opening a store, avoid blind entry, and improve the success rate of investment.

This article is from the WeChat official account "Hongcan Product Recruitment". Author: Hongcan Product Recruitment. Republished by 36Kr with permission.