I am new to this site and i am looking for any information anyone has on starting up a drive-thru convenience store. They are very popular where I am from and I am thinking of re-opening one that has been closed for some time. It once was ran successfully for over 30 years before being purchased by someone who 'ran it into the ground.' I would appreciate any information from someone with experience in this area. Also, if anyone is aware of a sample business plan, particularly suited to a drive-thru, that would be greatly appreciated. Thanks for the help!!

I hate the term "ran it into the ground" as I find it's used too many times as a catchall. Whoever bought it might have done the best they could and never lost a single customer but had to pay off the loan on it as well as take a living from it and there just may not have been enough business to do both.

I've seen this case many times over. Someone finds a nice little mom and pop business with the owner wanting to retire. They get a loan to buy it without realizing that most small businesses only provide enough profit for the owner to make a modest living. The existing owners did okay because they had paid the business off many years before. Someone comes along, figures it's a great deal, gets the loan, only to find that there isn't enough left over after making the loan payments to live on.

I would encourage you to use any good businessplan outline and develop a businessplan. By adapting any plan outline to the drive-thru will make you more familiar with the business. If you can, try and find out the two previous owners and speak to them about why they think if failed, and then determine if you can overcome the obstacles they faced.

I got to know a guy years ago that had a Seven Eleven store. He was always complaining about how he only made a living out of it. It was a busy location but margins were lower than he thought, partly because of the franchise fees he had to pay to Southland Corp at the time. If you're not going to be part of a franchise system you'll have a certain edge on margins by being able to shop your purchasing around...this should help.
Hope this helps...

Denny

Denny

As much as I would like to agree with you regarding the phrase "ran it into the ground," that phrase was not the purpose of my post and request for information.

The drive-thru I intend to open will not be part of any franchise and I have no intention on utilizing it as a primary source of income. It is intended to be supplemental and, moreover, a project that will give me satisfaction in its completion. I am a lawyer and public administrator by training and have no intention on living from the profits of the drive-thru.

My post requesting information was to see if anyone has any first-hand information regarding drive-thru (brew-thru) operations. Additionally, I am looking for anyone with specific knowledge of a business plan (template) specifically designed for such operations.

As far as speaking with the two previous owners. The first owner ran the drive-thru for 25 years successfully. The second owner is currently still in PRISON....after running the store into the ground.

If anyone has any information I would appreciate it!

Don't take that phrase personally, it wasn't meant to be, and having made it through law school you're certainly well equipped to forsee the problems most don't when going into a new venture.

Seattle has hundreds of these brew-thrus and they all seem to be thriving. I spent a few months up there on business and helped them to prosper. I did notice that virtually everyone was staffed by attractive young women. While I don't know if it was a part of the marketing strategy, it certainly didn't hurt business.

I think if it were me, I'd back into my businessplan. I'd start with my costs, both startup and on-going budget. From this I'd determine my break-even point. I'd then begin working on my marketing plan to create that level of business. I think given margins in coffee and the pastries if you have reasonable rent on the property and reasonable wages you should have a nice little business there. I know the people at my coffee/donut shop real well...I'll ask them what to expect....if I get anything worthwhile I'll post it here.
Good luck

Denny

Thank you Denny! I'll look forward to any information you can provide!

I spoke to the guy at my coffee/donut shop. He said he's has 10-cents in the cup and lid, and about another 13 cents in the coffee that goes in it. He said as far as the coffee goes, there are all kinds of blends...he said his customers prefer one that's a couple notches down from the top of the line. He said he's tried from the bottom of the line to the top of the line and people prefer the one he uses. He said every now and then he'll switch out for another without telling anyone but he said they pick it up right away.

Something that might be of help...he did say that the suppliers will provide you most of the equipment free as long as you're purchasing from them. He said when it breaks he just calls them and they deliver a new one or a repair guy. This should save you alot in startup costs as the equipment is quite expensive. I repaired his bagel toaster when it got tired...I did it free gratis as it's not my business...just handy, and I thought it was ridiculous that a new one was $700.

He also said not to skimp on pastries. He said people complain at the prices of the good ones, and complain and quit buying the cheaper ones...so he lets them complain about the price...at least they're buying them.

He was really quite willing to answer questions...I told him I didn't care what things cost him and what he charges...I'm in business and know he has to mark things up...so if you have any other specific questions I'll be happy to ask.

I have one of the busier Starbucks near me...a guy that worked there told me a couple years ago they were doing about $10k/day. That's a helleva lot of coffee.
Hope this helps....

Denny

Thanks again Denny! I appreciate the info!