Club Business in Nairobi.

Wadau,
I was having some conversations with my pals, who own a club in outskirts of Nairobi. It is a very good club. Been there countless times.

Now the talk was about how sai business iko mbaya si kama kitambo, people are just broke in some ways, then the convo mutated to cost vs income of club business.
What shocked me, is they spent 11M (total cost inclusive of stock) to Kickstart the club. I was extremely shock to hear the figure but amazingly they really did account for every coin till last 300k :D.

This is a club on a mall so drastic capex were not involved. The shell of the building was there.

These are chaps I have known since 2015, talking and doing business almost daily together ever since. So no reason to doubt them. Never did I ever ask them what cost they incurred to setup the business.

So as the story continued, apparently Bar Next Door Northern Bypass, galloped 120M. One partner in BND is the owner of Art Club Imara Mall who is there very good friend.

Apparently, the new club where Natives was Embassy, galloped 80M. The one lady partner, backtracked a partnership with their friend who took his 30M intended to fund Embassy to fund the new Whiskey River.

Its incredible the amount of money people shell to start this clubs.

Apparently, in 7-9 months you return your initial investment. Even for them they recouped their investment last year. Apparently BND is racking in 3M profit in a week as we speak.I was in BND last weekend huko VIP area na these chaps + the one partner and that place is packed.

So my question wadau, anyone with knowledge about this genuine nightclubs?
We summarized the story with trying to open a new club of like 30-40M somewhere as a partnership.
Hii biashara ya iko aje? Any comments or pointers to note.

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BUSINESS CLUB ama Club Business?

Osungu.dll

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3 M every week? Hio ni profits?

Inakaa biz poa.

Edited bro…

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BND honestly can rack it… Friday + Sato 2m profit. All other days of the week the remaining 1m.

Its was extremely full when I was there last weekend.

Watch, how packed it is… Making 1M on Friday is not hot air in such a place, I think.

🌴 The Bar Next Door - Kiambu Road🌴 on Instagram: "@glenfiddichwhisky y’all make it too easy! Thank you for partying with us! 🎵 @bienaimesol 📍@bnd.Kiamburoad #goodvibes #bndkiamburoad #kenya365 #goodvibesguaranteed #bnd #eatout"

most of those clubs are money laundering fronts

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Hekaya za abunuasi

weka calculation…profit margin sio mob venye unafikiria

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x for doubt

Probably, might be for sure.

But talking like a genuine business person… Having such an establishment like hii below, how much do you think he makes genuinely?
https://vm.tiktok.com/ZM26JYCKK/

Sales around 4m per Friday & Sato. Profit beer and food 25% + 25% of fixed cost inamake sense kweli?
In that Friday they have a 4m sales. 25% profit of it is 1m.

For pricing

For example

Like you buy tusker 200 bob sell at 300 bob. That’s a 50% markup. 25% should be your fixed cost at all times (rent, finance cost, wages, recurring location costs) then another 25% is profit. So in essence if you spend around 10k, around 4k-5k remains on top after buying cost.

Does it make sense really… I think beer is 350 in BND… Now the issue is getting traffic to buy… But i believe in cost/income ratios wako sawa.

…OP ulidanganywa vibaya sana

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Very naive for him to believe such stories.

“Apparently, [COLOR=rgb(235, 107, 86)]in 7-9 months you return your initial investment. Even for them they recouped their investment last year. Apparently BND is racking in [COLOR=rgb(147, 101, 184)]3M profit in a week as we speak.I was in BND last weekend huko VIP area na these chaps + the one partner and that place is packed”

Hii ndio definition ya uongo mtupu.

Theory nyingi… Hii ni Kama kuuliza @Yuletapeli biashara ya matatu iko aje na yeye anakupea figures…

Ati

"ukibeba passengers 30 kwa kila trip at an average of Kshs 100 bob hio ni 3k kila trip. Piga trip Kumi kwa siku na uko na 30k daily.

Fanya 25 days a week na uko na 750 yako clean. Hio loan ya 5 milliln itailipa na 7 months.After hapo ni profits tu na utakua unaongeza nganya kila mwaka "

unakimbia kuchukua loan KCB… Barabara ndio itakufunza. Ukilalisha 2k kwa siku na unashukuru

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Clubs do mint money but their shelf life pales in comparison to that of their products. While heavy investment is sometime needed, 120m is a stretch for BND.
I would say 50 thereabout.
I think considering loft as one of the most capital intensive clubs to be done, they spent a mere 60m.
Lakini kuuza nayo utauza, especially ikishika.
Beer hardly makes the kind of profits that spirits make.
Having been in the club business, and still running alcohol imports, I would tell you that clubs can make upto 150% especially on hard liquor. Some such as gilbeys is sold at 3500 at kettle House and yet the same cost price is kshs. 1100, a cool 200% profit.
Beer will make you around 50% profit.
The overheads are as staggering as the profits. Customers or not. You have to pay djs good money,l even on bad days. So be ready of such heartaches.
Its easy to recoup your money in a short while lakini hepa ikianza kutank. Exit strategy.

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Well put.

OP alihoji walevi :D:D

By virtue of my position as the head of the Clandestine Operations at MI6, I was also the chairman of the Joint Services Taskforce on Proceeds of Crime, Money Laundering and Illicit Cashflows. All I can say is that the OP displays a satanic level of ignorance and gullibility that can easily get him killed or conned.

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Alchohol business in general has a 40% net profit. That is if you’re running a home pub bila bells and whistles mingi. For high end clubs, weka profit at 50%.

If your establishment is pulling a decent number of patrons, roi is between 3-4 months. Kutoka hapo ni raha tupu and becoming an alchoholic is a clear and present danger.

Biggest problem with this fearshara, is “Extortion”. You’ll be sharing profits with cops and kanjo who mos def didn’t chip in capital.

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BND ilikuwa nyumba ya mtu kwa residential area. The owner leased the land, put an extension with mabati roof and a few stalls for other people to rent.

BND is an indoor-outdoor club and there is no way it cost 120M to set up. Unless the owner bought the land – but most club owners prefer to lease land than buying it.

Extension ya roof ya mabati na posts ndio unasema 120M?

Hapo ulidanganywa.

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