Buying a cafe help!

[Nigelworrall.22]

Hi so I have been offered the opportunity from my own Cafe it's only small and they want £8,500 for it.

Here is a breakdown cost
Rent £370 gas and electric £150 water £35 phone line £20 insurance £40 and they are also to wages to pay out.
I have £12000 to do all this with. I have an appointment on Monday at 2 p.m. to see the books.

Can any one give me any advice please??

 

[Ally Maxwell]

I did a similar thing about ten years ago.

Can you clarify your figures ? Are they per week or per calendar month ??

Are you paying £8500 for the 'goodwill' of the existing owners ? Is all the current equipment included ?

 

[Nigelworrall.22]

Hi they are per calendar month. And yes the ownership and all equipment and everything in the building like tables chairs

 

[Ally Maxwell]

From experience, I would say £150 pm for electricity is a bit light. Don't underestimate how much a double fryer and a griddle can burn through in a day.

Roughly, what is the weekly turnover currently ? Whenm you say 'ownership' do you mean the building ?

 

[Nigelworrall.22]

Hi I do not no the turnover yet as I am going on Monday to see it. And no just the business.

 

[Opinion87]

Have you ever owned/worked in a cafe before? Do you have any experience? If not, then the general advice will be "stay well away."

Without knowing the numbers it's going to be very difficult to help.

 

[Nigelworrall.22]

Hi I've worked in a restaurant for last 6 years. Also doing snack bar foods like burgers pizzas pie and chips also we do Sunday carvery which I also prep and do all cooking for that. So I do have experience in a way ☺ I will also be loaded numbers on here on Monday

 

[boring-friday]

Post of the figures on Monday and people will be able to get a better idea. In all honesty though its almost a certainty that people here will tell you not to do it as obviously the cafe isn't making a great deal of money or it wouldn't be sold so cheap.

Assuming that you can atleast make a small profit after all the costs and wages then its up to you to decide if you can grow the profit it makes or not.
And depends if you're potentially up for working 70 hour weeks while you get it started if it doesn't start too well as you're literally going to end up with zero £s of your 12k after buying it and buying stock

 

[namesweb]

Would've thought having a good grasp of footfall area in the street/by the cafe would be absolutely essential too. People might go out of their way for a carvery/restaurant, but less so for a cafe. If theres no people walking past, I imagine there would be little revenue?

 

[My Owl 1]

My advice would be make sure that you find out whether the energy is in a business contract and if so with whom and for how long. There are some amazing deals out there, one supplier Extra Energy is offering extremely competitive prices but they will only be for a year, after which their price will probably double. Energy for cafes and restaurants is a minefield due to not only the "cooking" element but also the heating of an area where doors are often opened to the cold outside. Don't be fooled into putting a heater by the door for example to help to keep heat in, All it will do is heat the road.!!
As to landline and internet there are some fabulous deals out there, shop around. If you would like help on any of the above please do message me. My aim is to direct people in the right direction which is not necessarily my business.
Best of luck with your venture.

 

[MOIC]

How often have you eaten in this cafe?

How long is the lease?

What's the reason for the sale?

When is the next rent review?

Have you prepared a business plan, based on the figures you already know?

Will you have to keep the existing staff?

Will you keep to the same food type menu?

What is the scope for expansion?

Has there been any new competition in the area?

How many cafe's have you seen, before choosing this one and deciding it's right for you?

When you see the "books" ask to see the VAT returns, all supplier invoices and their banking figures.

Before committing, ensure it ticks ALL your boxes.

Good luck.

 

[john1989]

Those figures are just a handful of costs a small café will incur. What about packaging, stock, uniforms, cleaning supplies, health and safety compliance, advertising, equipment, etc?


You want to see the accounts for the last three years. I would also want to see copy invoices for some of the larger costs such as rent and energy to ensure the accounts ‘look right’.


The small cafes that I have dealt with in the past have not been businesses. They have merely been the means to a small wage for long hours for the proprietor(s).

 

[yourbusinessenergy]

Nigel

All the best with your venture should you decide to go ahead. In regards to the gas and electricity cost estimated above, you may be under/over estimating the cost.

To get a more accurate reflection of these costs you need

1) Unit Rate
2) Annual Consumption

The figure you have quoted in your post may be for an offpeak/on peak season as energy bills are usually higher in the winter period. If you work out the annual consumption and the unit rate(usually found on the bill) and then divide by 12 months, this will give you a much more accurate average.

Let me know if you need a hand with this as I have worked British Gas Corporate as an acc manager and also run business energy comparison service online.

PS Also before getting tied in to any contract make sure you shop around as usually your current nominated supplier is not always the cheapest.

 

[Ricky Rowe]

Hi so I have been offered the opportunity from my own Cafe it's only small and they want £8,500 for it.

Here is a breakdown cost
Rent £370 gas and electric £150 water £35 phone line £20 insurance £40 and they are also to wages to pay out.
I have £12000 to do all this with. I have an appointment on Monday at 2 p.m. to see the books.

Can any one give me any advice please??

Hello,

DaltonsBusiness.com currently have just under 2000 Cafes for sale in the UK. Have a look here - this might give you a better understanding whether your offer is a good deal or not.

Feel free to drop me a PM if you need any further help.

Ricky.

 

[APW]

Hello,

DaltonsBusiness.com currently have just under 2000 Cafes for sale in the UK. Have a look here - this might give you a better understanding whether your offer is a good deal or not.

Feel free to drop me a PM if you need any further help.

Ricky.

Fantastic self promotion oh and on your first post too....I salute you!

 

[Ricky Rowe]

Fantastic self promotion oh and on your first post too....I salute you!

Thanks. Just here to help.