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

[kona1coffee]

Hello Shawn,
I am thinking about selling my existing Seattle area cafe (drive through and sit-down) within the next couple of years. It's been in business for a long time; I am just curious--do you have experience in this industry? Are you thinking of being an owner / operator, or absentee owner? If you would like to talk further, is there a way to contact your directly? Thanks.

 

[Shawn]

Thank you. I am checking into the one shop The other shop $218k looks like it could be in Pioneer Sq. and businesses are very expensive in the area. Coffee shops in Seattle are quite pricey.

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

But I found these on Bizbuysell.com

Gilman Ave Coffee and Donuts Magnolia: Business For Sale in Washington on BizBuySell.com

Cafe Coffee Shop Hot Spot No Competition: Business For Sale in Washington on BizBuySell.com

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

 

[Shawn]

Hello. My personal email is [email protected]. My phone is 206-550-2105. I would appreciate being able to speak with you off-line concerning your shop/plans and my experience in detail. I have a customer service background, experience with project management and managing a small business, which includes training/coaching employees, consulting, finances, etc.

 

[kona1coffee]

Hello Shawn,
Just saw this last post; I guess I haven't been on the forum enough lately! Sorry for the delay; I just emailed you my contact information. Thanks--

 

[Chopper]

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.

Well said
. Full stop.