Considering Buying a Coffee Shop . . . would love to hear your thoughts/suggestions.

[Shawn]

Hello. I am in Seattle. I am thinking of purchasing an existing coffee shop. Can you provide any thoughts or suggestions as to what to look for re the financials, locations, internet, operating suggetions, are coffee shops a good biz to purchase, what is a fair price, etc.? The place I am researching is not open many hours at this time -- only 7 per day and not open on the weekends, there is no internet, no breakfast or lunch items. I would extend the hours, offer internet (?), offer some breakfast and lunch items, maybe serve wine/beer at the end of the day and have truffles available. At this point the coffee shop is breaking even but I think I can boost the sales and revenue. I would love to hear what you have to say, negative or positive feedback is welcome, any suggestions would be fabulous as well. I look forward to hearing from you.

 

[eldub]

The location is important.

Why aren't they open on weekends?

 

[Shawn]

She is older and has health issues thus too tired to work on the weekends.

 

[eldub]

Is there foot traffic in the area on the weekends? What about at night?

Is is easy to get a beer/wine license in your state? Would that liquor license force you to alter the premises in any way? (fire sprinklers, etc.)

How big is the space? Big enough for a musical stage?

Just curious. (We've been working through some of the same issues as we prepare to open a small business.)

Good luck.

scott

 

[Shawn]

There would definately be foot traffic on the weekends and possibly the evenings as it is a popular area. Not difficult to get license, but would have to meet City/State code requirements and apply and pay applicable fees. There is seating for about 15 so not enough for a stage.

 

[John P]

Don't pay for "Blue Sky" pay for tangibles. If this is a business only deal, there is no real value. If the current business isn't driving a profit, then it has zero value other than hard assets. Unless you can remove all emotion from the negotiation, hire a pro to run broker the deal, it will likely save you thousands. Buying an existing business that isn't currently profitable is throwing away money. If you are serious, find two or three places to lease and negotiate the best deal you can. It sounds like you may be starting from scratch anyways.

You are in a coffee-centric town. Remember what your core is. Decide if you want to be a diner/cafe that serves coffee, or a coffee shop.

Boosting sales and revenue does not necessarily mean you are boosting profits. You have to think strategic long term. A sale now that does not maintain or improve your positioning in the marketplace is an empty sale. Don't sacrifice long term viability for short term gains.

Adding a breakfast or lunch menu is never a good idea. It's lower margins (higher COGS) higher waste, greater labor... and for every breakfast or lunch item you sell, you erode your core.

I've been profitable since month two, and I've been at it for eight years. I've seen many people fail because they keep looking for other revenue streams due to lack of sales, when their lack of sales is due to lousy coffee and espresso. Not sometimes. All the time. Focus on the heart of the business first, and then, if the urge overtakes you, you can experiment.

If you want coffee AND liquor to be your core, do it right. Don't make it a mish-mash of parts, do an impeccable job with each.A coffee BAR can be good if done right, but know who you are aiming for. Good local craft beers and coffee/espresso can be a winning combo. As mentioned, make sure about the local liquor laws before you plan you map out your future.


Small light menu. Pastries, cakes, cookies. Maybe panini or light sandwich. When people walk in, the predominant smell should be coffee.

A small food place can be great, if it's run as a small food place, but don't make a coffee shop into a place for food. The less focus on your core, the less your retention of customers.

Decide what your core is, what your principles are, and follow through. Make the coffee AND business decisions with equal scrutiny.

Always have extra cash.

 

[kona1coffee]

I have a question for you, because I have a possible place. What exactly are you looking for, in an existing coffee shop? i.e., size, number of employees, business plan, goals, drive thru only or sit down only, or both (etc.) What are you looking to spend?

 

[CoffeeJunky]

this is very old thread....

 

[Beccaray]

John,
I own a flower shop and I have always wanted to add a coffee shop onto my business. I am considering adding on but still holding back. I want to make sure it is profitable. I will have to do some remodeling to my store to make it work. I live in a small town and there is one shop already in town. Could you give advice on how you made your shop profitable? In my research I have found it is the coffee quality, the way it is prepared, and the equipment (grinder for the most part) Can you suggest where to find quality beans, and what is the best grinder to purchase for the best price?

 

[CoffeeJunky]

Beccaray,

Can I ask few questions?
1. Tell me about the existing coffee house that is in town. Franchised? busy shop? Is it in the good location?
2. How is the location compare to the one near you.
3. Are you planning on sit down coffee shop? If so, how big
4. Do you own the building? Or leasing?
5. What do you know about coffee shop business?
6. How are you going to run the both shops?

 

[Beccaray]

Beccaray,

Can I ask few questions?
1. Tell me about the existing coffee house that is in town. Franchised? busy shop? Is it in the good location?
2. How is the location compare to the one near you.
3. Are you planning on sit down coffee shop? If so, how big
4. Do you own the building? Or leasing?
5. What do you know about coffee shop business?
6. How are you going to run the both shops?

I live in a small town of about 5000. The exsisting coffee shop is a drive through but has been there for about 10 years. My shop is privately owned, location is close to hwy not right downtown, some days are busy some are very slow. They are in location not far from us, they are a drive through. I will be having a sit down. I own my own building that the flowershop is in. I have very little knowledge of the business of coffee. (Just been a dream of flowers and coffee forever) I would hire a part time person for the moring's for coffee. I have another emloyee who works a couple of days a week for flowers.

 

[Shawn]

I have a question for you, because I have a possible place. What exactly are you looking for, in an existing coffee shop? i.e., size, number of employees, business plan, goals, drive thru only or sit down only, or both (etc.) What are you looking to spend?

I am looking for an existing coffee shop, small to large, I have a business plan, drive through or sit down, both would be great. I am open to price -- I don't have set price in mind except under $200k would be good.

 

[CoffeeJunky]

I have few in mind but they are not anywhere Seattle... lol..

But I found these on Bizbuysell.com

http://www.bizbuysell.com/Business-...lM2QlMmZ3RUZFV3M5WTI5bVptVmxKbTQ5Sm5KMGN6MHg=

http://www.bizbuysell.com/Business-...lM2QlMmZ3RUZFV3M5WTI5bVptVmxKbTQ5Sm5KMGN6MHg=

Business price seem to be more expensive in Washington. Much cheaper here in Michigan....

 

[Flori]

This is also what I had in mind. With all the fuss about coffee now, I am thinking it would be a great investment. Can you advise on what happened and if you proceed on purchasing the coffee shop?

Flori
Blogger, CoffeeLoversOfWorld.com

 

[Kysalaz]

I don't own a shop but in my opinion you should not close but if you do then close days that not many people are out, weekends are bad to close. I have done lot of research because I want to open my own coffee business and you need to make sure to plan ahead and in your monthly budgeting include money to set aside for the business and remember to include yourself (if working) in payroll. I have an idea of a coffe truck or trailer because they are mobile so if one area is booming over summer and dies when school starts back up you can move to an area where students will be buying from you and you'll have offices to sell to, also anywhere with tourists! If you don't plan to sell lunch or breakfast foods try selling fingers foods either packaged or made something like cupcakes and parfaits or chips and dried fruit.
I wish you the best of luck
kylie