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Milk Bar on Vanderbilt is now For Sale — Brooklynian

Milk Bar on Vanderbilt is now For Sale

whynot_31
whynot_31
edited November 2015 in Prospect Heights

620 Vanderbilt

They'd like $650k in key money.    I assume the lease is additional and separate. 

http://www.loopnet.com/Listing/19515834/620-Vanderbilt-Avenue-Brooklyn-NY/


milk

Comments

  • capa1010
    capa1010
    i like Milk, I hope it doesn't change.
  • whynot_31
    whynot_31
    edited November 2015

    It seems to do very well.    It has good food and a steady flow of customers.

    I think it would be hard for a new operator to have a new model that exceeded its present success.


  • capa1010
    capa1010
    I wonder what the owner has in mind, I know he has a couple of coffee shops apart from Milk, one in Windsor Terrace and one in Bed Stuy. 
  • whynot_31
    whynot_31
    I am imagining myself in the position of the buyer.    

    If I am a proprietor who has $650k and tons of hours to invest, how much do I expect to earn in profit per year?   

    I'd want a 15% return on my $650k and $100k a year for my labor, for approximately $200k.        
    Does Milk deliver that presently?
      
  • ehgee
    ehgee
    edited November 2015
    Selling a piece of bread with half an avocado on it for $8 oughta have a pretty tasty margin.

    You could probably estimate something like 40 seats (seasonal average) * 3 seatings per table per average day * 365 days * $10 profit per average customer, if they order a toast and coffee and labor cost is only in the kitchen since customers pay waitstaff through tips.

    If those pulled-out-my-ass numbers have any basis in reality, one could clear $438,000 in revenue per annum, minus rent, which the listing conveniently neglects.

    One could do a gut check on those numbers by sitting outside in a car all day and counting customers like a doughnut king on the prowl:
  • Brooklyneya
    Brooklyneya
    edited November 2015
    Besides rent, there are other overhead costs- electricity, gas, equipment and the capital needed for build out spread out over time, pay for cashiers, basic pay for waitstaff (even if it's a few dollars an hour), waste (food that gets unsold or goes bad and has to be dumped), training new staff, experimenting with recipes and products, slow days during some holidays and bad weather...they may pay for management, bookkeeping/accounting, credit card charges, etc...

    All of these things add up. Profits end up being much smaller than they originally appear. Hence the high turnover of businesses.
  • whynot_31
    whynot_31
    All true.

    Hence, the most valuable part of this business is likely to be its established customer base and staff.

    ...the fact that you get some restaurant equipment and a built out space as part of the $650k is a minor consideration.


  • notsayin
    notsayin
    Capa, same owner as Sunshine Co. on Washington & Sterling, unless I missed something in the past 6 months.
  • capa1010
    capa1010
    I think he left that venture Notsayin. Sunshine Co. was originally owned by him and a chef. I think the chef is the sole owner now.
  • whynot_31
    whynot_31
    As of February, I believe Milk Bar was exclusively owned by Alex.   We had an email conversation back when he was considering a space on Union and Franklin. He ultimately decided not to lease the space:

    quote:

    "Alexander here the owner of milk bar. I have looked at the space but a lease is yet to be signed. 

    I no longer own Sunshine, my parter in milk bar Sabrina Godfrey is still involved I that business. 

    I own the Brunswick stores in Bedstuy and Windsor terrace. 

    Alexander Hall
    917 463 9065
    Bluebird Coffee Shop
    Rosella Coffee Shop
    Milk Bar
    Brunswick PPW
    Brunswick BedStuy"


    I wonder what he will do with the $ from Milk Bar.   Will he open a new coffeeshop in another promising neighborhood, now that Prospect Heights has "matured"?    
  • whynot_31
    whynot_31

    Owner is moving to Iowa.  http://parkslopestoop.com/blog/business/popular-brunswick-cafe-sale-owner-wants-flat-white-remain/

  • whynot_31
    whynot_31
    New establishment has obtained it's liquor lic: https://www.tran.sla.ny.gov/servlet/ApplicationServlet?pageName=com.ibm.nysla.data.publicquery.PublicQuerySuccessfulResultsPage&validated=true&serialNumber=1304718&licenseType=TW Known as Casual Cafe.
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