Buying An Established Cafe
Everyone thinks they can run a café – you know, until it comes time to actually run the café.
You’ve been told by all of your friends that you should open a café because you make the most delicious desserts. They’ve created a spark in your brain… “maybe I could open a café and sell my food instead of making it for free for every gathering my friends and I have?”.
So what next? All the common throughs set in –
“Am I wasting my time/money”?
“There is so much to do, explore locations, research and develop my own brand and logo, once suppliers and negotiate contracts and prices”!
“Will I need a team”?
“Do I really have something people would pay money for”?
“What if I can’t get any customers? I’ll need to start marketing now and create some interaction before I even open”!
There is a way you could eliminate some of the initial concern… Why not purchase an existing, established café that is listed for sale? The previous owner has done most of the hard work for you, you’ll often receive:
– Existing records, finances and performance information – You’ll have insight on if a café in this area will succeed, certain performance trends, areas where the business is doing well or needs improvement.
– Existing customers – People who know the business, familiar with the location and trust the current product.
– Operational rapport – With suppliers, policies and processes that are already in place and functioning efficiently. Instead of focusing energy on this area you can look at ways to improve and priorities ways to increase sales by incorporating your amazing treats that your friends rave about.
– Staff transfer – Dependant on the size of the café there may be the option to transition trained, loyal and skilled staff which not only allows the business to operate with minimal disturbance but also offers insight into the day to day running and understanding of the café.
The biggest trap lies in entering the market without having your eyes wide open. How do you know what to look for? Do you buy the higher priced café making good profit or the value priced café with low turnover due to health reasons with the owner and their inability to work the hours in demand?
How much can you really trust the person selling the business on behalf of the owner? Surely their thoughts around the business are bias to the seller? That can be true to a certain extent, especially if the sale is driven by a resolution involving a fat commission cheque. At Bonza we go the extra mile to help not only our sellers sell but our buyers buy because there needs to be a great experience achieved on both sides and we have found these experiences can positively affect our chances at repeat business and referrals. By simply asking questions of a buyer we can ensure the business in question is suited to them which enables an easy transition and minimal disruption for the existing customers.
Have a dream to own a café? Talk to us today about all the amazing, established cafés on the market.