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  1. #1
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    Thinking of Purchasing an Established Coffee Shop

    Hi! I am considering purchasing a well established coffee and bagel shop that has been in business for 23 years. Sale would include all the equipment and stock. Yearly revenue is about $100k and sales price is $45k, for which I would need to take a business loan. My question is how much profit could I expect to make (ballpark) with this revenue? Not sure I can quit my job to do this.
    Last edited by PinkRose; 10-14-2015 at 04:59 AM. Reason: Title Edit

  2. #2
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    very very little... pass on it

  3. #3
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    Quote Originally Posted by Krugg111 View Post
    Hi! I am considering purchasing a well established coffee and bagel shop that has been in business for 23 years. Sale would include all the equipment and stock. Yearly revenue is about $100k and sales price is $45k, for which I would need to take a business loan. My question is how much profit could I expect to make (ballpark) with this revenue? Not sure I can quit my job to do this.
    unless your job is working at a burger joint making min wage (without tips), please do not quit and do this.
    Not enough sales.
    Last edited by ensoluna; 10-12-2015 at 05:36 PM.

  4. #4
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    Quote Originally Posted by ensoluna View Post
    unless your job is working at a burger joint making min wage (without tips), please do not quit and do this.
    Not enough sales.
    I can't think of a better way to make minimum wage than to own one's own coffee business...just sayin'

  5. #5
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    Milwaukee, WI
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    Do you know the business of coffee well enough that you can keep its revenues at $100K? Do you have any ideas on how to boost that number?

  6. #6
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    Oct 2015
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    The current owner would stay on for up to a year and train me. I have 20+ years restaurant experience and have run a concession stand for 5 years - but not coffee experience specifically. Currently the shop is open from 5am-12pm 7 days a week so hours could obviously be extended. He said at times when he was open longer he made around $175K at its peak. I still need to take a hard look at all the numbers but wanted some objective opinions going into it. I appreciate your comments!

  7. #7
    Banned
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    Jun 2014
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    Can you foresee growing the business? Why does the shop only bring in $100,000? Is location good? What can you do over a year to increase business from $100,000 to $500,000? Does the sale include realestate? What equipment comes with property? If the sale includes realestate and equipment worth more than $45,000 and you are certain you can quickly grow the business then it may be a good step. But I'm not sure I'd keep current owner on. If he has not grown the business past $100,000 a year he would likely stunt any growth... This place, if a decent location, needs fresh ideas and a new market.

 

 

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