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  1. #1
    Junior Member
    Join Date
    May 2004
    Posts
    4

    What Can I Project From Traffic Counts?

    My hubby and I are considering purchasing an espresso drive thru for sale in our South Dakota town. The seller is asking $58K for the drive thru. Some problems exist for us because she kept very poor records, and P&L's don't reflect what she says she actually brought in. This is a business that has made it in spite of her. This drive thru is located on the busiest block of our little town . . . 14,000 cars per day, directly across the street from the hospital. It's in a grocery store parking lot, right along side the road. The middle school and high school are one block away, and the state university is a block further. There is a medical center one block behind the drive thru, and 6 fast foods across the street next to the hospital. Safeway is directly next to this location. Super easy in and out.

    The problem is that it has been run poorly, and the very shy owner is perceived as unfriendly to the public. She always looks closed, and took down her sign on the top of the drive thru. You would be able to the see the drive thru approx. 200 yds in each direction.

    Here's my questions: With the location I've described and the traffic count, what % of customers could we capture if we operated it as it should be?

    What is the avg. COG of a 16 oz. espresso drink? (She doesn't know this). I can't get a good feel for this info. even off the P&L COG portion. They don't jive from year to year.

    What would a drive thru need to net in order to make it worth $58K. The building has a water tank, no plumbing, nothing fancy. We've gotten bids around town of $5500 for a comparable building. Equipment is 2 - 4 years old.

    I realize my info is a little vague, but I can't get much more from owner. I really don't believe she's being secretive. She just never thought she'd sell, and now that hubby got transferred, she regrets keeping the poor records, and not claiming all $$ on taxes. Any statistics would be so helpful because I can't find them anywhere.

    I have ordered the espresso101 video, and Alex F. book and consulting time. Maybe some of this info will be there, but I'd like to hear from some of you.

    Thanks!!!

    Mariah

 

 

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