THERE COMES a time in every home-based business’ life when the entrepreneur is faced with a dilemma: To open a store or not? To have a real office outside the home or not? To grow big or stay small?
Such is the dilemma currently faced by partners Analyn Arce and Joan Runes of The Peach Box, a home-based specialty food shop. Since the partners started the business in February 2006, majority of their clients would phone them and order party food trays like baked macaroni, fettucine carbonara, and chicken pastel and kesong puti spread.
Starting with only P60,000 in capital, The Peach Box steadily gained clients, which only started among family and friends and bazaar/tiangge regulars. Now, people they don’t know who have sampled their food at parties or have heard of them through word of mouth call them for orders. To make it easier for people to get the food items, The Peach Box opened take out kiosks in tandem with the family-owned Arce Dairy (which sells ice cream and milk at the same kiosks) at Greenhills Theater Mall in 2006 and at Landmark Trinoma in 2008.
Now The Peach Box has been offered a big space in a major mall which could be the perfect place to launch The Peach Box, the restaurant. While other entrepreneurs may be quick to jump at the offer, the partners are studying the matter carefully.
According to Arce, here are the considerations they are weighing on whether to open in the mall as a restaurant:
1. Rent. Some malls charge a percentage of sales as rent, while others charge a flat rate per month. Mall rent can be very expensive.
2. Overhead. “With a bigger space comes bigger overhead,” says Arce.
3. Location. Not all restaurants do well in the mall. Is the location being offered good? Will the right traffic go there?
4. Size. Is the leasable space the right size for the business? While the prospect of having a full-scale restaurant may be exciting, maybe a cozy small café would be better?
5. Concept. Does the business concept fit the mall’s particular location and target market?
On the other hand, the reason why Arce is entertaining getting mall space with seating for dine-in customers is so that more people will get the chance to try The Peach Box’s specialties.
Should The Peach Box go big or stay small for the meantime? Entrepreneurs faced with the same dilemma must study all angles before signing on the dotted line in the mall rental contract.
Home-based entreps ask: To open a mall outlet or not?
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hi,
everything you listed are the essentials of a retail business - rent, overhead, location, etc...in the end, it will be a matter of how much volumes you'll need to sell at an average to break even with your costs. but all told, your product lines taste great and i believe you'd have a bright future by jumping in to join the others who dared previously and succeeded. just get in and fight it out. have faith in your own products. if these sold and grew from the humble beginnings of a 60K capital, then that should inspire you that there exists a niche taste out there to satisfy ! so, take that first step. and enjoy !
good luck !
Starting a business might seem to be really difficult. But it is a risk that every business owner face. If the product and service is good, then go for it and try the bigger field. Starting business at home and then expanding due to customer demands is a sign of "moving forward". Make sure there is an online website, because that's how people get to know the business aside from the word of mouth.
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Managing a mall is not an easy job and have to take into certain factors to make the mall operate successfully. The 5 points emphasized upon are to be well noted down but I find location the most important because its the location which attracts buyers live. Other than the 5 factors if we look research carefully there are also a lot of hidden reasons to be taken under consideration.
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The 5 questions are tough, and have to be well researched. A major step like this can either make or break the business. The most important thing to remember is to not bend the facts. If you think there won't be enough traffic, then there won't be enough traffic. Don't let your desire for more people interfere with the reality. However, if the research aligns with the needs, then this could be the breakthrough The Peach Box is looking for.
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I like this concept. I visited your blog for the first time and just been your fan. Keep posting as I am gonna come to read it everyday.
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