umm is this legal?

Maestro · 12-12-2011, 12:16 PM

People, it is totally possible that this company can be brings in some large amount of Revenue, however, that is not profits as it was pointed out. After they pays all the bills the owners maybe taking home a nice sum of money. Like any business like this, the real money comes from the second and third and beyond operations. If anyone every check into franchises like Subway or the such the first store barely keeps you alive you need to have at least 3 or more location before you are actually profitable.

The owners of this cupcake store obviously figured that out, thus the reason for more storefronts. They were probably just breaking even with just the first store. You have to give them credit, they obviously jump on the next new food craze like krispykream once was. Cupcakes are new donuts shop or Starbucks, do not be surprise if they do not franchise their business idea.

Burningchicken, some advice and knowledge for you, most all states (I will assume VA is one of them unless someone knows for sure one way or the other) an employee is considered an employee at will, meaning a company can get rid of you for almost any reason they like or for no reason at all, expect for reasons of discrimination or as a protect class. Considering you are young and probable not in one of the protect classes, they can get fire you at any time and they do not even have to give you a reason. Yes it is perfectly legal to do so, the problem is most people think an employer is required to have a reason which not true.

burningchicken · 12-12-2011, 12:59 PM

Quote:

Originally Posted by Maestro

People, it is totally possible that this company can be brings in some large amount of Revenue, however, that is not profits as it was pointed out. After they pays all the bills the owners maybe taking home a nice sum of money. Like any business like this, the real money comes from the second and third and beyond operations. If anyone every check into franchises like Subway or the such the first store barely keeps you alive you need to have at least 3 or more location before you are actually profitable.

The owners of this cupcake store obviously figured that out, thus the reason for more storefronts. They were probably just breaking even with just the first store. You have to give them credit, they obviously jump on the next new food craze like krispykream once was. Cupcakes are new donuts shop or Starbucks, do not be surprise if they do not franchise their business idea.

Burningchicken, some advice and knowledge for you, most all states (I will assume VA is one of them unless someone knows for sure one way or the other) an employee is considered an employee at will, meaning a company can get ride of you for almost any reason they like or for no reason at all, expect for reasons of discrimination or as a protect class. Considering you are young and probable not in one of the protect classes, they can get fire you at any time and they do not even have to give you a reason. Yes it is perfectly legal to do so, the problem is most people think an employer is required to have a reason which not true.

Thank you for a straight answer, I appreciate that.

For those of you who care, here's a picture my friend just uploaded of a 10,000 cupcake order they shipped out this morning. Its being sent overseas for the troops

MDyDinanM · 12-12-2011, 01:45 PM

/\

Maestro · 12-12-2011, 03:06 PM

that is a $27K write of to them, assuming it is a donation to the troops.

MDyDinanM · 12-12-2011, 04:04 PM

Quote:

Originally Posted by Maestro

that is a $27K write of to them, assuming it is a donation to the troops.

lol

yeah, who is it actually benefiting, the troops or Georgetown Cupcakes?

burningchicken · 12-12-2011, 04:12 PM

lol I posted it to prove that they actually have the capability to make that many cupcakes.

cold m3 · 12-13-2011, 12:06 AM

you never know

Mr Tonka · 12-13-2011, 02:49 PM

Cupcakes are becoming big business. Run correctly there should be a gross margin of about 40% to 50%.

Lets say they do 10,000 a day. At 355 days a year that's $9,230,000 in yearly revenue.
At 40% GM that's $3,692,000 in yearly gross profit.

25 employees working 24 hours a day at $14/ hours for a month and you're looking at $252,000 in monthly payroll.
Add in rent - $7000
Utilities - $3000
other misc fixed expenses - $7000

Makes yearly operating costs at $3,228,000.

This leaves a 5% bottom line profit margin or $464,000.

Seems normal to me.

12-12-2011, 12:16 PM	#67
Maestro Major 1074 Rep 1,268 Posts Drives: 2007 335i Sedan, 2021 X3 Join Date: Nov 2006 Location: Philadelphia iTrader: (0)	People, it is totally possible that this company can be brings in some large amount of Revenue, however, that is not profits as it was pointed out. After they pays all the bills the owners maybe taking home a nice sum of money. Like any business like this, the real money comes from the second and third and beyond operations. If anyone every check into franchises like Subway or the such the first store barely keeps you alive you need to have at least 3 or more location before you are actually profitable. The owners of this cupcake store obviously figured that out, thus the reason for more storefronts. They were probably just breaking even with just the first store. You have to give them credit, they obviously jump on the next new food craze like krispykream once was. Cupcakes are new donuts shop or Starbucks, do not be surprise if they do not franchise their business idea. Burningchicken, some advice and knowledge for you, most all states (I will assume VA is one of them unless someone knows for sure one way or the other) an employee is considered an employee at will, meaning a company can get rid of you for almost any reason they like or for no reason at all, expect for reasons of discrimination or as a protect class. Considering you are young and probable not in one of the protect classes, they can get fire you at any time and they do not even have to give you a reason. Yes it is perfectly legal to do so, the problem is most people think an employer is required to have a reason which not true. Last edited by Maestro; 12-12-2011 at 02:54 PM..
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12-12-2011, 01:45 PM	#69
MDyDinanM OIF Veteran 260 Rep 2,106 Posts Drives: ///M Join Date: Oct 2009 Location: East Coast iTrader: (0) Garage List 2008 BMW M5 [6.88]	/\ Attached Images
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12-12-2011, 03:06 PM	#70
Maestro Major 1074 Rep 1,268 Posts Drives: 2007 335i Sedan, 2021 X3 Join Date: Nov 2006 Location: Philadelphia iTrader: (0)	that is a $27K write of to them, assuming it is a donation to the troops.
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12-12-2011, 04:12 PM	#72
burningchicken Lieutenant 27 Rep 438 Posts Drives: 2007 e90 335i Join Date: Jan 2010 Location: noVA, Virginia Tech iTrader: (5)	lol I posted it to prove that they actually have the capability to make that many cupcakes.
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12-13-2011, 12:06 AM	#73
cold m3 Enlisted Member 6 Rep 49 Posts Drives: e46 m3 Join Date: Dec 2011 Location: berwyn pa iTrader: (0)	you never know
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12-13-2011, 02:49 PM	#74
Mr Tonka is probably out riding. 6062 Rep 2,292 Posts Drives: Something Italian Join Date: Feb 2009 Location: Sweatypeninsula iTrader: (0)	Cupcakes are becoming big business. Run correctly there should be a gross margin of about 40% to 50%. Lets say they do 10,000 a day. At 355 days a year that's $9,230,000 in yearly revenue. At 40% GM that's $3,692,000 in yearly gross profit. 25 employees working 24 hours a day at $14/ hours for a month and you're looking at $252,000 in monthly payroll. Add in rent - $7000 Utilities - $3000 other misc fixed expenses - $7000 Makes yearly operating costs at $3,228,000. This leaves a 5% bottom line profit margin or $464,000. Seems normal to me. __________________ "There is no greater tyranny than that which is perpetrated under the shield of the law and in the name of justice. -Charles de Secondat"
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