Taking over existing cafe.....

plymouthscubagirl

Hello

I wondered if some of you experienced peeps could help? We are in the process of taking over an existing lease on a cafe. I believe its a 13yr lease with a break out clause for 2014. I have called a few solicitors yesterday (after reading some of the potential horror stories on here) and was quoted by one for £250 + VAT to check out the lease. The next one quoted around £2k-£2.5k for the lease and transferring the business over too. I have to say I felt more comfortable with the higher quote as the chap spent over 40mins on the phone deciphering my babble Anyway I just wondered if this is a 'normal' kind of quote and because I am obviously trying to do this very MSE, I would like to know if there are bits that I could be doing myself to keep the cost down to a minimum. Like searches - can I get these done myself?? The person we're taking over from had these done, so could that be sufficient? I understand that this is a very important expense and so I want to do this properly, but yet in a cost efficient way

Any info/helpful hints would be appreciated in all areas to do with this as we have ZILCH experience with this.

Thanks in advance.......

Horace

Don't rely on the searches made by the people you plan to take over from do your own. Do your own due diligence on the people you are taking over from...e.g. 3 years' worth of books because you need to know if the business is profitable or not. Use the services of a solicitor specialising in leasehold properties because to be honest a 13 year lease does not seem to be very long. It would be awful if you didnt use a solicitor and everything went pear shaped. I have no idea what is a good price or a bad price for a solicitor to be truthful, it depends on the work they are doing for you, the size of the practice and whether or not you trust them to do what you want them to do.

If you have never run a business before perhaps you should consider working for someone else in that trade before taking that leap and that way you will get some experience and be able to make a more informed decision as to whether or not this type of work suits you.

paulwf

A commercial solicitor is going to charge upwards of £200 ex VAT an hour so that might help put things in perspective. It depends what kind of service you need, for £250 they will probably just go through the motions. They aren't going to vet the document to make sure it is legally correct, explain any unusual clauses to you, raise any issues with the landlord and generally make sure you don't get screwed

My advice would be - use the one that is more expensive as you felt comfortable with their response, and the lease is the one thing you don't want to get wrong. However I would try my very hardest to insist on a *fixed* fee of £2K. Dealing with a solicitor who is billing at £250 an hour is scary as costs soon escalate and you feel afraid to ask anything even simple in case the clock is ticking. A fixed fee takes the pressure off everyone which is good for both you and your solicitor.

Anyway, solicitors think of the figure they want to charge then work back from there, you always end up paying their original quote plus 10% however much time was involved!

plymouthscubagirl

Thanks for your resposnses. Yes I did see an accountant with the books first. I only phoned around commercial solicitors too, and thankfully the one I felt most comfortable with was one that I was recommended to use by a colleague so thats kind of sealed it for me . Will try and go for a fixed fee, or at least a max figure!! My partner has recently finalised his divorce and I've been left with a very bitter taste i for solicitors in general, but understand that this is not something I can do myself, unlike the divorce which we ended up doing a better job of!!

We've both been doing 'work experience' at the cafe as we know the people we are taking over from. Its actually my partner that will be working there, as his 26yr career in the forces is due to come to an end! Strange choice after the srevices I know, but its what he wants to do, even though he can't cook for toffee :rotfl:

Suarez

He can't cook but wants to run a cafe?

plymouthscubagirl

Yes I know, we've had many a discussion around this. We're keeping the current cook/chef, but I have tried to reiterate that she may go sick so he needs to learn the process!! In fairness I have very good employers in that I can swap days around etc, so it would most probably be me that would cover her in the first instance. Then he would need to take over really.

paulwf

plymouthscubagirl wrote: »

Yes I know, we've had many a discussion around this. We're keeping the current cook/chef, but I have tried to reiterate that she may go sick so he needs to learn the process!! In fairness I have very good employers in that I can swap days around etc, so it would most probably be me that would cover her in the first instance. Then he would need to take over really.

The chef will also have a statutory minimum of 5.6 weeks holiday!

A business owner can't be good at every single aspect of running the business, we all have strengths and weaknesses. However, I would make sure every recipe and process is written down in a manual so someone else has half a chance of stepping in at short notice. Streamline the menu where possible and do processes properly such as weighing ingredients or using timers so you can keep dishes consistent. Make sure your partner knows everything about food hygiene and deep cleaning as he really has to lead from the front on this. He'll also need to know about GP and portion control (and may have to substantially tweak the current menu and suppliers) if he has any hope of making money.

It would be worth laying down a few days worth of dishes in the freezer so if needed these can be defrosted at relatively short notice, then the person who steps in just has to do reheating and make some pasta/rice/mash rather than full on cooking.

Suarez

Have you ever ran a catering business before?

There are so many things to comply with nowadays it's becoming a nightmare for even experienced caterers.

plymouthscubagirl

No we haven't got any experience with this. Well I've worked in catering but years ago. I'll be taking on the finances/accounting side of things then teaching him once he's more settled with the day to day running of things

One very steep learning curve coming up I think!!

paulwf

Both of you should get level 2 food hygiene certificates immediately, then when you take over get them for all full time staff straight away. Get them from highspeedtraining.co.uk for £25 and 2 hours of your time.

You should be using a SFBB (safer food better business) diary, if the cafe doesn't have one you can order one for free.

Call up the local environmental health officer and have a chat, they all have their little quirks and own interpretation of the rules so find out what they want you to do now.

Make sure you have a health and safety at work poster on display. Get a compliant first aid kit (blue plasters, no pills allowed) and accident reporting book.

Make a detailed cleaning chart and laminate it. Make a temperature check sheet and log all fridge/freezer temperatures before and after every shift and archive these for at least a year.

And so on and so on...all the compliance is actually quite simple, it is just there is so much of it you can never keep up.

plymouthscubagirl

Thanks for all your help and info Paul. My partner has got his food and hygiene - just me to go I have been informed that the rest of the staff have this. We're both doing a barista course too, I know this isn't essential like the rest of the bits you mention though :eek:

Thanks will start getting these bits underway......