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Business for Sale Purchase Guidelines > Cafes a Business Overview

Cafes a Business Overview

Cafés a business overview.

When selling a café or buying a café there are many things to consider.

Like all businesses its location to its potential customers can be the difference between success and failure.

Gross profit (GP) is usually quite high but this is reflected in oncosts.

The requirement for higher level of staffing, whether for cleaning, table service, food prep, counter/check out service etc is usually higher than that of the take away.

The GP is also eroded by consumables etc which would not be required within the take away.

However there is a balance to be found in the fact the café customer tend to have more loyalty and regular use with the ‘spend per capita’ often appreciably higher.

It is also important to consider menus, owners often continue a similar menu all year round, whereas a more varied and flexible menu which recognise seasonal tastes and access to produce can help maintain and increase the customer base.

Many cafes expand their menu to the point where the profit margins begin to fall as wastage and unnecessary staffing levels erode the businesses earnings.

The café owner should also use a till which gives them a accurate idea of when they are busy or not, and keeping weekly records of the business will give the owner an overview of the businesses needs for staffing levels and opening times.

Some owners have tried altering the accepted opening times, either opening earlier or later and closing accordingly, others have successfully introduced tea and early evening openings and menu, again location is the key, but well maintained day to day records of the business will always assist in future plans.

As with all businesses the balance between turnover, gross profit and the all important net profit is attention to detail, minimising oncosts without damaging the standards or business, and plain hard work.

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