Roadside Cafe pros and cons

[ypftrading]

Hi all just a quick one really, I'm considering buying a road side Cafe on a very busy road in what appears to be a really good location.

Just wondering if anyone has any experience in this field as I'm rather new to this market. What are the pros and cons?

Thanks for your time in advance.

Patrick

 

[wood1e2]

It doesn't matter what market you are in you want at least 3 years certified accounts and 6 months due dilligence which would include you working along side current owner at various times of the day/night/week/month for 6 months.

I believe when something 'appears to be busy' tends to lead to disaster!!!

 

[S-Marketing]

All you need to do is work out why it is that some seem to have a traffic magnet and are always busy, and why some appear to have traffic repellent properties and are always empty.

That really is pretty much all there is to it. If you work that out, you are sorted.

 

[wood1e2]

All you need to do is work out why it is that some seem to have a traffic magnet and are always busy, and why some appear to have traffic repellent properties and are always empty.

That really is pretty much all there is to it. If you work that out, you are sorted.

So you wouldn't bother with accounts?

 

[S-Marketing]

So you wouldn't bother with accounts?

We posted at the same time. My post wasn't written to disagree with you, its just a different view.

Personally, I dont really care very much about what the previous owners have managed to achieve, i'm much more interested in what I could do with it. When buying a business, I will always be looking for future potential, not historical figures.

Arrogant maybe, but I always work on the assumption that I could do it better.

 

[Rhodes100]

If this is a cafe on a busy main road, its customers may be regular travellers.

These guys form habits, which are hard to change. If this cafe is not a stop for them, you may find the business hard to turn around.

Look as well at parking, if the road has no parking then people are not going to stop regardless.

Is the goodwill there because the customers like the owner? If so he has developed personal goodwill not business goodwill which can disappear when you buy it. If however he is never there, the existing trade is not likely to disappear if you buy it.

 

[wood1e2]

We posted at the same time. My post wasn't written to disagree with you, its just a different view.

Personally, I dont really care very much about what the previous owners have managed to achieve, i'm much more interested in what I could do with it. When buying a business, I will always be looking for future potential, not historical figures.

Arrogant maybe, but I always work on the assumption that I could do it better.

No worries.

Interesting idea, but I wouldn't buy a business without knowing what the previous guy has done/is doing/thinks he can do.

What I can do with the business is what I think and has no bearing on me buying it.

In so far as how much I may pay!! plus I want the historical data to see where I would be starting from in terms of profit/turnover if I did nothing...

 

[KidsBeeHappy]

Road side caffs stand and fall based on the quality of the food. The regular guys are hard to attract in, and easy to lose. As far as they're concerned you're easily replaced.

If you're talking transport drivers/operators, then think about the regulations that they're driving under, the need for stops of certain times, at certain intervals. Its no use to them if they can't stay for more than an hour. So think what they need, somewhere they can park properly for a couple of hours, somewhere to sit for a couple of hours (ie 35min comfort chairs at tables are no use). Free wifi, clean toilets, showers, ability to charge up electrical appliances etc, ablity to park up overnight, free flask refills, etc.

Things like that attract loyalty.

Most professional road users tend to avoid the motor way service stations (And in particular the little chefs ) so, offer somethign different. But provide good quality food, and VFM.

 

[KidsBeeHappy]

Also, before you go any further, go check out road planning in that area. Long term roadworks are enough to put many a roadside business shut down. And there's little to no compensation.

 

[S-Marketing]

No worries.

Interesting idea, but I wouldn't buy a business without knowing what the previous guy has done/is doing/thinks he can do.

What I can do with the business is what I think and has no bearing on me buying it.

In so far as how much I may pay!! plus I want the historical data to see where I would be starting from in terms of profit/turnover if I did nothing...

I get what you are saying completely, and obviously to buy any business without interogating the accounts would be stupid.

IMO though, if you can work out how you can make it popular, and ensure it becomes one that people do stop at, you can make it a success. If its one that people avoid out of habit, then it will be an uphill struggle.

 

[Kernowman]

Have you asked that essential first question? WHY is the present owner selling?

One of my clients a few years ago asked me this very same question about buying a roadside cafe and what my thoughts were about him getting a very good ROI.

My answer was to be DIFFERENT than every other other cafe. Don't drop the ye olde fry-up menu by any means because that's what working chaps need and like to eat, but also include some 'elfy food like salads, plus something a bit more adventurous on the menu like Thai, Indian and Chinese food, but not "English Foreign Food", like the stuff you buy as a frozen ready meal which is a joke, but find a cook who can create the authentic style food cheaply. Last I heard from him it was 75% trad eng breklefast, 95% "foreign food" thereafter during the day LOL

 

[ypftrading]

Thanks for all the info guys