Thinking of Purchasing an Established Coffee Shop

[Krugg111]

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.

 

[Stonewall123]

very very little... pass on it

 

[ensoluna]

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.

 

[Mr.Peaberry]

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'

 

[peterjschmidt]

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?

 

[Krugg111]

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!

 

[wwcove]

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.