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Rent to SOM Calculator

In a previous post I wrote about how you can use a formula called the Rent to SOM ratio to help pick better cafe locations. Check out the post HERE to read about the thinking behind it and some really helpful tips on how to easily get the data. Basically using what we know about UK coffee consumption from statisticians and what amount of turnover is healthy for a cafe to have as their rent we can use the footfall in front of a location to get a sense if the rent that is being asked for is viable for the shop you want to make.

Enter the calculator. I know its been years since a lot of us have been in a math class so I got a few messages about some confusion over using the formula. I thought to make it nice and easy I'd make it into a calculator. All you need to do is punch in the numbers and it will tell you an estimated value of the location based on your inputs. If the rent they are asking is a lot higher then this it's probably time to negotiate or maybe look somewhere else. If it's lower, you may have a great location on your hands.

Have fun!



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