My take is that conveience store is a business for people who donot have much education, canot speak good english but people who brought tons of money from their home country (eg.Hong Kong, china,South Korea people). They are happy with the $ 3000 or $ 2000 profit a month. Their intention is about a bigger picture like bringing their relatives as employees etc...
Can you please look at other businesses that are more for cash rich and educated people.
The way you presented the financials of the convenience store,I donot think that it may be worth your trouble. However you did not give your back ground, desperation etc...

peace

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I am a Gents and not a Ladies.

Thanks for your advice but I have seen many Desi who are managing multiple convenience stores and multiple subway and making good money. I don't understand how much Net Profit they earn from each store and How much they are investing for those stores. I want to know their ROI (return on investment).

About my background:
I am in IT field and my wife works for minimum wages. My wife doesn't have any scope to increase her salary. I was thinking about investing in this kind of business (alone or in partnership) where my wife will work for one shift and partner or other employee will work for another shift. So, It will give some freedom to my wife for working hours and we will make some profit which will increase overall family income. So, I started to look into this kind of business but my calculation endup with just working for salary without much profit. So, I am surprised about how other Desi running multiple stores and how much ROI they are getting.

In above business, owner had informed me that he is taking home around $6000/month which includes his salary.

It means If you deduct his monthly salary ($11 * 16 hours * 30 days) $5280 than he is making only $720/month.

I was expecting for Net Profit of $720, buying price should not be more than $720 * 12 * 3 = $25920. Yes, I should pay him extra for inventory but this business owner advertised his business for $165000 + inventory.

Above number indicates this business is not suitable for me at all but still I want to understnad how other Desi runs multiple stores and how much ROI they are getting.

Similar another example:
One couple bought subway for 350K + Frenchise Fees + inventory = appro. $380K. Daily sale is $1500.

My calculation:
$1500 * 30 = $45000 monthly sale
Let's assume they are making 60% (this may be too much) profit on sale. 13% paying to Franchise. Owner is making 47% profit on sale.

Income: 47% of $45000 = $21150

Expenses:
Rent = 5000 (1700 sqft space. )
hydro , gas and other misc. = $1000
Salary = $11 * 2.5 employee (minimum. I have seen at least 4 employee at lunch time) * 16 hours * 30 days = $13200

Total expenses: $19200

Net Profit: about $2000/month after investing $380K.

is this worth? or Am I doing wrong calculation?

Thanks.

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Success is Never Ending and Failure is Never Final.

Meitsme:
You are making the right calculations only. All these generate very minimal profit only. They run it because they fell into the trap. As a desi, if the owner of the store says that he is taking $ 6000 home a month (incl salary), the realistic take home will be sround $ 2500 to $ 3000 only.
In Canada, donot expect much profit in these kind of buisnesses (in many locations) as they are reserved for people with lots of money but no education / skills to get a job in Canada. It is a tough life.
I agree that some have struck it rich and buying business after business. They make profit by having a number of stores running.
More viable one may be petrol bunk (comparatively better with smokes / lotto revenue generation), or buying a house and subletting room by room to students / immigrants who will not only pay your mortgage but also get you some monthly income.

Peace

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I am a Gents and not a Ladies.

In these businesses, you are creating a job for yourself. Instead of working under someone, you get importunity to become your own boss.

Risks also include pilferage by customers and staff, robbery, etc.

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Give free food http://www.thehungersite.com ||

Opening one shop is like being 'self employed'. For decent income like you may be expecting, you need 3-4 shops at least. You start with one shop and then expand...

As Rajcanada and aqua said:

1. Initially you are creating a job for yourself and can't expect more than a salary ( profits)
2. Later you will expand and get salary plus profits
3. If you are successful, at one stage you will be mainly managing many stores rather working for one store for salary.

I am trying to calculate ROI for multiple stores before starting first one as part of business plan. I don't want to jump in business if there is not much ROI.

Anyone can explain how multiple stores will give good ROI for this kind of business? (Multiple store will require more investment too)

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Success is Never Ending and Failure is Never Final.