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I found this interesting, too. Margins should be huge in the cafe business, right? So it must be rent and employees that are costing her so much. I still would have expected a cafe to be profitable with that kind of revenue.

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Margins are not huge for this sort of business. This am on NPR they were talking with a baker who said that his flour costs had tripled in the past year, his egg costs had doubled, and all of his supplies now had "fuel surcharges" tacked on. While margins might have been comfortable in the past, they certainly aren't now. These folks are between a rock and a hard place and have had to absorb much of these costs in their margins.

People think you have to be crazy to start a start-up these days. No even close, but you would have to be crazy to start a bakery now!

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