Is this a good time to purchase an existing coffee business?

Replies to This Discussion

Permalink Reply by Bwynn on June 21, 2008 at 8:14pm

I really wish people would post on this question. I am in the same seat. Goood luck Amanda!

▶ Reply to This

Permalink Reply by Jason Dominy on June 21, 2008 at 8:36pm

For starters, this is a loaded question. There are too many factors to recommend to any one person whether or not it's right for them to buy a coffee business now. With that being said, I will tell you one thing to look for. Traffic, traffic, traffic. They say location is everything, and right now, it means as much now as ever. Also, look over the financials with a fine tooth comb. Another thing to do would be to talk to the roaster, and see what his take on it is. Really analyze it from every angle. We are definitely in a season of pruning. Hope that helps a little....

▶ Reply to This

Permalink Reply by Geoff Corey on June 22, 2008 at 1:59pm

I think coffee / espresso has definitely taken a hit of rising gas prices. COGS is up as well as suppliers now tack on fuel charges. Unless the location is out of this world with traffic and visibility, and the lease/landlord is not going to be a problem, then I would hold off.

Many shops are selling out now because of declining revenues. Audit the books and look at trends for sales, COGS, and bottom line. Ask people leaving the shop why they shop there and why not ?

▶ Reply to This

Permalink Reply by J. Valenta (JavaJ, foo') on June 23, 2008 at 11:38am

There is of course no one answer. However, from the perspective that we are at the beginning of a down cycle, and if you are well capitalized and planning on opening a shop sooner or later anyways, then I believe it is a good time to buy because existing shops are undervalued. However, all the usual things such as location and financials still apply. If you do end up buying, IM me. I would love to share with you some lessons learned.

▶ Reply to This

Permalink Reply by Noelle on June 23, 2008 at 11:50am

I live in Spokane...where is the shop?

▶ Reply to This

Permalink Reply by ray peck on July 4, 2008 at 10:11pm

This can be a great time to buy.....sales may be a little soft so that might reflect on a little lower price. And you can get the feel for the business and be ready for the busy fall season.

The economy and prices rising will never go away. It would help if you gave more info on the business itself. ie, menu prices, dauiy sales, asking price, rent, etc.

▶ Reply to This

▶ Reply to This