Just saw a study that 40% of cafes in LA close within the first year and now I get why my landlord keeps raising my rent

Found it in a local business report last night and it made me wonder how many of you have actually broken even after 12 months of operating?

3 comments

3 Comments

claire_wells871mo ago

...so I'm wondering what counts as "breaking even" in that study though? Like are we talking about covering your personal salary (and I mean a real living wage, not just ramen money) or just the business bank account not going negative? Because I know a guy who ran a coffee spot in Silver Lake for 18 months and he swore he was "profitable" but he was also sleeping on his cousin's couch and never paying himself, which feels like a different kind of math entirely. Did they break out rent costs specifically in that report, or was it more of a general overhead thing?

karen_perry381mo ago

That "different kind of math" is exactly how most small food businesses survive, honestly.

adam_lewis16d ago

@claire_wells87 yeah, not paying yourself is the classic small business mirage.