Buying a Coffee Shop Business price now reduced further

chickmug

This husiness will have listed on a web site such as businessesforsale and on which it gives very poor options at entering stage, for the agent, or indeed private seller.

The options are takings less than <£200,000 and Profit less than <£100,000.

At £35,000 selling price I would expect to see takings below Vat at 70% G.P. and Net Profit (depending on many thing not the least of which is lease costs PA) in the region of £20,000 so don't let anyone get excited. If there was a NP of £100,000 I would expect a substantially higher turnover and selling price many times more than £35,000 dependent on location.

s_b

what i always find amazing are some of the following
why doesnt buyer talk to staff prior to buying
does buyer stand at other side of the road for a few hours and do a footfall including how many people go in this business
why doesnt potential buyer talk to other businesses and sound them out regarding this new shopping centre
i could go on but i suppose whats the point
people always invest in these type of things with their blinkers on and a la la im not listening ear muffs attitude on

now about these invisible clothes at 1000% markup.............

reason for sale moving to florida:rotfl::rotfl: might use that one tommos

dottygirl

Rossie I wish you and your husband all the best for this venture. I am sure you will do your research. Coming on here is always useful. Let us know how you get on. x

paulwf

£200K turnover with only 1 member of staff...unlikely.

Anyway, check out all the competition carefully, in this case the more the better! If you already have all the chains that means they can't move in and steal your trade.

In my town up until 2 years ago the only chain was a Costa concession in the book store. The independents thrived and expanded. Costa then opened a large standalone store and took some of the market. The independents still expanded. Last week Nero opened dead opposite Costa and the two are now going all out to corner the market. All it takes is a Starbucks to open and the indies will be in deep trouble.

Basically there is no way I would buy a coffee shop, especially with a new shopping centre that may change the footfall in town. You will be constantly looking over your shoulder for the next chain to come into town. The coffee market is dominated by chains, people love them and the more generic and bland the better, it seems impossible to compete against them as long as they are a well known brand.

paddyrg

paulwf wrote: »

...it seems impossible to compete against them as long as they are a well known brand.

True enough. If you really want to get into being a coffeeshop, maybe look at franchising one of the big brand competitors down in the new area?

antrobus

paddyrg wrote: »

True enough. If you really want to get into being a coffeeshop, maybe look at franchising one of the big brand competitors down in the new area?

Costs a bit more than £35k to get into a coffee shop franchise. Costa Coffee for example is only interested in franchisees who have £500k to invest. Coffee Republic look for an investment of £60k-£160k per shop and that doesn't include the cost of the actual site.

dottygirl

Rossie how did your meeting go yesterday. I hope it gave your lots of things to think about x

Rossie_Cheeks

Hi everyone,

Thank you so much for all your advise regarding the coffer shop venture.

I never actually met the owner on Saturday, he rang and cancelled the appointment. My partner will go and visit owner during the week. The coffee shop is more a Sandwich Bar, its very small indeed, and like others have said here there is no way it can be turning over 200k.

We are going to knock this on the head, but will be good to go and meet the guy to see what he has to say and get ideas if we decide to pursue the coffee shop business.

Thanks again

Anastasia

If you decide to pursue this get a really good solicitor who has experience in business sales. You won't regret it.

I have been interested in a cafe for sale for a while. Still looks a good buy but I go in for lunch when I can and I watch the staff and customers. There has been a huge new shopping centre nearby and I am waiting to see what happens to trade.

Meanwhile the price keeps coming down!

aimingforadebtfreelife

As mentioned before spend a day at least "watching" the shop. You get to see how busy it really is.