Geezer, thanks for the correction in error of USD cents versus dollars. I overlooked this initially. You sound like an international business expert, I might have to take you up on your advice some time if I have to conduct anymore business in this city. Instead of turning this forum into a shit slinging contest why don't you actually calculate for me how much a cup of coffee, with overheads and profit costs? Why don't we go back to how much coffee costs across the city? For example, the half sugar Taiwanese cafe in Kexue Lu costs 35RMB as do alot of other Chinese cafe's.
Did you ever here of the product called a 'loss leader'? That get's customers through the door instead of being the price of a main meal? Sounds like coffee is brewing. Those bottomless cups in the US who pays for that?
Sure it might have been two co-incidences in one week where two separate cafe's decided to miscalculate the price of my meals and coffee.
Coming back to comment about 'slave labour'. I agree with your remarks, yes slaves are not paid a wage and slavery is illegal in China. How about you index the 24000RMB annual salary of cafe workers to the price of an average apartment in Kunming lets say 1 million RMB for a 100 sqm property (also just an example, my place cost 3 million for 300 sqm near Xishan, but then again I have no idea about business. I bought it using my salary as an English accounting teacher).
How many years would that mortgage take to pay back without interest? 41.66 year mortgage?
You are correct, slavery is illegal in China. The masses are forced by 'standard wages' to rent for their entire lives, just like self-righteous foreign bloggers who keep complaining about the price of rent on forums just like this. I may have had an error on USD vs. cents per pound, but you missed the whole point of this forum...overpriced coffee.
Also there is big talk of 'overheads'. I would challange any cafe owner in Kunming to explain to be exactly what their 'overheads' or operating expenses are? They usually employ a whole tribe to stand around the counter and talk jazz all day, while the customer has to scream out to get their attention (point taken Tiger Tiger; re; cafe not being busy all day long). Maybe they could sweep the floor or clean the cigarette soot build up on the cornius of the roof, but where would the fun be in good old hard work. Are the workers paid anymore?
Overheads are a fixed cost not related to profit. Tiger tiger is correct, but forgot that cafe's at least in Kunming sell more than coffee. As Dudeson's point's out to you, Starbucks pay's insurance and probably an internationally recognised quality assurance system that ensures that the coffee machine is clean for use every time they pour a cup, or certified coffee free from pesticide or herbicide residues instead of buying locally sold coffee that is not tested. Unlike yourself I am not going to parade my education and experience, but let's just say I know a little about the international food industry.
Lastly, Geezer do you have an actual experience building an international company? Do you currently have multiple passive income streams? You have seem to have gone into academia to teach others and also on online blogs about accounting.
I wish you well in your teaching career and hope you refrain from calling your student's 'hoots'.