mgallagher Senior Member Joined: 3 Aug 2012 Posts: 1 Location: Auburn Expertise: I love coffee
Posted Fri Aug 3, 2012, 10:23am Subject: Looking to buy a local stand - but need advice/input/guidance
I am considering purchasing a coffee stand that is for sale. I have never owned my own business but have a lengthy accounting back ground. The obvious task are to review the books and get an understanding of the overhead costs. The current owner says the lease is month to month and not your typical 5 year lease. She states that this is an ideal situation...but is it really? I do have coffee/espresso experience (barista) and was trained back in the day when you had to control the drip - it was not automatic - so timing and color was everything. My oldest daughter has been a barista the last 3 years and has been professionally trained. So, I am not worried about any of that. Profitablity...cost of goods sold...initial investment are my upfront concerns. Any advice out there? Thanks, Missy
calblacksmith Moderator Joined: 25 Nov 2007 Posts: 8,193 Location: Riverside, Ca, U.S.A. Expertise: I live coffee
Espresso: ECM Vene. A1, La Cimbali M32 Grinder: Azkoyen Capriccio, Major Vac Pot: 40s era Silex Drip: Msl. Com. brewers Roaster: gave it a try, decided no
Posted Fri Aug 3, 2012, 12:49pm Subject: Re: Looking to buy a local stand - but need advice/input/guidance
Wow, that is a pretty tall order.
You hit the normal stuff. Who owns the machines? Who services the machines? Who treats the water? Is there a coffee bean supply purchase / equipment lease deal in effect so that you are locked into one supply of beans? Who sells the beans if they are not in a equipment contract, how fresh are the beans from roast before you get them, how old is the stock?
What is the foot traffic? Is this a mobile cart of a booth in a mall? What business and health licence requirements are there? I would tend to not be as comfortable with a month to month as I would be with a year or 5 year lease but only you can answer that for you.
What are your insurance requirements (liability and healthcare?) Who does any building / stand repair should the need come up? What have the maintaince costs been?
I am sure there will be more questions for you from others, but off the top of my head, those are the ones that jumped out at me!
In real life, my name is Wayne P. Anything I post is personal opinion and is only worth as much as anyone else's personal opinion. YMMV!
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