I think the hours you want will be a problem. You will be open when people are at work and closed when they are off. Not being open extended hours on Saturday is also a missed opportunity. Sunday closing is not good. Later evenings are premium. You will find this to be true if you research it.
As Jason said, $10/hr x 56/wk. Add workers comp and packaging for the cupcakes.
With children, can you produce that many, oversee things, and fill in on no notice when your employee doesn't show up? Who will bake if you have to man the store? The $350 is not really something to base a decision around. You need a business plan and a few backup plans, because this is not a two man show. Not trying to be the downer, just a few things to think about.
Interesting idea. The killer will be the labor cost for manning the drive-thru, at $10/hour for 40 hours a week that would be an extra $1600/month.
When did minimum wage get to be $10/hour? They pay that here for people just out of culinary school, and you don't need that for someone to man a booth.
Minimum wage in my state is just over $9/hour. I think Jason was including taxes you have to pay on employees and all that. I don't have a business or employees, but taxes could easily push the ($7 national avg??) up there.
I just found this thread and read through all the responses. It's sweet that many posters have said "go for it" but somewhat unrealistic. A viable (money-making) business needs more than a "go for it" from people who have nothing to lose. I hope the OP or anyone reading these posts to learn business skills will pay attention to the business-minded folks (Jason, Susan, etc.) with realistic suggestions.
We have on of these in Jacksonville Fl. The lady bought an old stand alone ice cream place, you know the one's that used to look like BIG icecreams? She chnaged the bottom and now it looks like a cupcake liner! I have never been (Jacksonville is HUGE milage wise and she is not on my side of town) but I bet if you called she would be happy to talk. It's called Short and Sweet. Here is a link to the article in our local paper
http://jacksonville.com/business/small-business/2011-09-09/story/old-jacksonville-ice-cream-stand-gets-makeover-now-home-new
Good luck!
I say go for it. If you don't have to hire someone right off then you shouldn't have to worry about payroll. A small start up can be done with one person. Also, min wage isn't $10 and you could get someone very part time to help. Understand that it will mandate much of your time, so give yourself at least one day that you are closed. $350 a month rent & utilities is awesome!
My new location that is in the works has a drive up and walk up window. Added the drive up window when many of my dance studio parents suggested that I have a drive through window. It is definitely a bonus.
The minimum wage in WA will be $9.04/hour in January. SS and Medicare taxes on the employer's side are 7.65%, so you're at $9.73/hour already.
To stay under $10/hour, your employee would need to have less than 2% of non-value-added time (the average is 35% non-value-added time), and that's not even including related expenses like fringe benefits and worker's comp.
The minimum wage in WA will be $9.04/hour in January. SS and Medicare taxes on the employer's side are 7.65%, so you're at $9.73/hour already.
To stay under $10/hour, your employee would need to have less than 2% of non-value-added time (the average is 35% non-value-added time), and that's not even including related expenses like fringe benefits and worker's comp.
You need to do some serious research before jumping on this opportunity. Yes, it sounds wonderful. Everything sounds wonderful until you get down to the nitty gritty! This will require a lot of sacrifice on your part, and on your family's part. Prepare yourself for long hours and small profits...at least at first. Can it work? I'm guessing it could. My sister used to like the drive-thru dacquiri huts down South, so if they can make it, I would think a drive-thru cupcake business can, too!
I think this is a great idea, one I have had for a while now. With the cupcake craze going around right now, people love to have a special cupcake bought from somewhere special. BUT all the business advise jasonkraft and susan have mentioned are the reasons I have stayed away from it. It takes a lot to run a business, be ready to sacrafice a lot of family time to make it work. That brings me to the other point. I too am a mom to two small kids. One in 2nd grade, aother in preschool. For this to work for me I would have to up the days my preschooler goes to 5 days a week instead of 3, costing me $785 a month instead of $360. Or I would have to rely heavily on help from family, which isn't fair to them. Your oldest is in kindergarden, I don't know if he/she has as much homeowrk as my kindergardener did, but it is only going to get worse as the years pass. What happens when you have both of them in school and you have to get both of their homework done after workign all day in the booth. Then you finally get that doen and it is time for dinner, then bath then bed. You are exhausted, but no beddy by for you....you need to bake for tomorrow's business. You stay up late to bake a billion cupcakes, brownies, cookies, and so on, but still have to get up early to get the kiddos to school and you to the booth. You work all day because you are trying to cut expenses by not having an employee. Now it is time to start the family work again....repeat every day!!!!
It is true, we are mommies, we can do it all. We can manage all this and more if it is trown at us, but do we want to???? The answer for me was no!! I want to enjoy my kiddos while they still want me around. I will enjoy the cakes I do for family and friends for now, and not worry about making a living at it. I figure once the kids kick me out of their daily lives and trade me in for friends and the mall, I will revisit the business plan again.
If your desire to make this work overpowers all other desires go for it, but if not, re-evaluate what you want in your life.
If you do it, good luck to you, I wish much success on you.
Interesting idea. The killer will be the labor cost for manning the drive-thru, at $10/hour for 40 hours a week that would be an extra $1600/month. ............................
Who in the H pays their drive through person $10 an hour? that is a minimum wage position. Just 13 years ago I was making $5.25 an hour at McDonald's drive through. Plus, SHE could be doing that! Maybe not every day, every hour, but for a large amount of time she could.
I say, commercial kitchen, 10 dozen baking, at once, freezer space. Bake, fill, ice, wrap, freeze. Do this on Tuesday, and be closed then. Tuesdays are so slow and they drag in fast food. I can keep at least 32 doz cupcakes in my freezer. Bring 6 doz each day and close when they are gone or freeze leftovers once more, sell them first the next day. You could bake each night in your own oven, but you won't want to.
Close between 2 and 4, that's when things start picking up again after lunch. Yes, you could sell 4 cupcakes in that time, but it's not worth it....It could work! Invest in a 3 pot coffee maker and get GOOD coffee, 4 flavor syrups, and 3 sweeters, a non-dairy and a dairy low fat, and heavy cream. After you half kill yourself, hire someone when it is profitable to do so. That is America!!
Who in the H pays their drive through person $10 an hour?
As mentioned above, in a few months minimum wage in WA will be almost $10/hour once you include employer-paid taxes, and that's not even taking into account lost productivity and ancillary expenses. The fully loaded cost of labor for a minimum wage worker is probably closer to the $13-15/hour range.
Plus, SHE could be doing that! Maybe not every day, every hour, but for a large amount of time she could.
One would hope that the cost of the owner's labor (i.e. the wage you pay yourself) would be even higher than a minimum wage worker.
I just found this thread and read through all the responses. It's sweet that many posters have said "go for it" but somewhat unrealistic. A viable (money-making) business needs more than a "go for it" from people who have nothing to lose. I hope the OP or anyone reading these posts to learn business skills will pay attention to the business-minded folks (Jason, Susan, etc.) with realistic suggestions.
Ditto. You MUST create a viable business plan before starting any business endeavor. Contact your local chamber of commerce AND any local colleges that have business classes and see if they can point you in the right direction.
Thank you all for the responses....
After much more research and number crunching I decided a couple months ago to pass up on this opportunity...if it is still availble in a couple of years when my kiddos are both in school full-time then it was meant to be.
Honestly thought of a different kind of drive-thru but couldn't make it work in our area. The supermarkets are like sharks and won't let anyone complete. They had a knock-down drag out with Walmart Superstores.
My little idea to have a drive- thru milk, bread and diaper store never made it off the ground. Sad. I could have been rolling in the dough by now. 
mommachris
Who in the H pays their drive through person $10 an hour?
As mentioned above, in a few months minimum wage in WA will be almost $10/hour once you include employer-paid taxes, and that's not even taking into account lost productivity and ancillary expenses. The fully loaded cost of labor for a minimum wage worker is probably closer to the $13-15/hour range.
Plus, SHE could be doing that! Maybe not every day, every hour, but for a large amount of time she could.
One would hope that the cost of the owner's labor (i.e. the wage you pay yourself) would be even higher than a minimum wage worker.
Jason, you're awesome.
Thank you all for the responses....
After much more research and number crunching I decided a couple months ago to pass up on this opportunity...if it is still availble in a couple of years when my kiddos are both in school full-time then it was meant to be.
Good for you! You've done your due diligence. Have fun with the kiddos.
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