Book & DVD:
"How to Start Your Coffee Biz"
References
Coffee Drive-ThrusMistakes and How
to Prevent ThemTraining and
Consulting ProgramsBuying an Existing Shop?
Want to Improve your Espresso Sales?
How to Add Espresso to an Existing Business
Food Management and Franchises: Increase Your Coffee Concept Sales!
Book & Video Order
Basic Training
Planning to Buy a Coffee Retail Business?Don't Buy a Money Pit and Somebody's Headache!
Several times a week we get calls and e-mails from people that invested in an existing coffee shop and are greatly disappointed in its performance. They jumped, without real understanding of the business into what they thought would be a great opportunity for them to be in business for themselves and make a good living.
Instead, they found themselves in a bad dream, in danger of losing their investment.General, it is much better to open your own business in a good location than to purchase somebody's headache. The exception to the rule is: shops in good locations that made a mess of their operation because they did not know what they were doing. You are not buying a shop for the equipment or the leasehold improvements. Some owners may have put $300,000 to open a shop, but if it is in a bad location, it is worth nothing!
If you are in the process or thinking about buying an existing coffee shop with the hope of re-inventing the business, or by improving it's bottom line and operation, you must look very carefully at the following:
- How long is the existing lease? call with Alex & Associates first to discuss best lease terms
- What is the MAIN product of the shop? That is, where does most of the money come from? If it is from food, that is not a "Starbucks type" coffee shop; if is a deli that happens to sell some espresso your profit will be much lower than from coffee and espresso based drinks. You can put more money in your pocket buy selling $500 of espresso drinks than $1000 of food.
- If you start doing drastic changes, you probably will lose the existing customer base, and depending on the location, it may be hard to attract new customers.
- Small changes won't work if you want to change the character of the shop, like changing it from mostly food to mostly coffee drinks. Just cleaning it up and changing a few employees won't do any good. Call us to discuss what works best.
The main consideration in buying an existing business is the present - or potential - income that it may generate. Here are some other factors that you must consider:
- The location of the business: Alex's "Espresso Success Program" discusses at length what to look for in hallmark locations -- no matter what you do, you won't be able to increase the sales to any appreciable degree with a good location!
- Lease terms: call us so we can discuss best term leases.
- Sales price: Good income coffee shops sell for.$$$....check with us. We will share with you what a rent factor of your gross should be providing it.......has come proper things in place.
You may save yourself countless aggravations and your money by learning to understand the business BEFORE you jump into it by investing a few dollars in our "Espresso Business Success Program"
The cost of this Program includes our personal over the phone consulting with you, which may determine if you should invest in that business in the first place.Get the following information and call us after you order the Program:
- How long is the lease? Is it renewable?
- What were the gross sales last year? Last month?
- What is sold mostly, coffee or food?
- How much is the rent?
- How big is the shop?
- How many pounds of coffee/espresso is used per week?
- Get a copy of the menu.
- An equipment list
Start-Up Coffee Business AdviceThe above information will determine if it is a good deal or not.
Alex's book, "Espresso Business Success Program" will show you what to do and how to do it.
Consulting ProgramReturn to coffee business success page.
Note: We will be happy to talk to you without any cost or obligation about any coffee related business matter. HOWEVER, BEFORE you call, please do your home-work. We do not want to start a conversation with you asking me: "What do you do?", or "What experience do you have?".Before you call us about a drive-thru, PLEASE do your home-work that we suggest on our Drive-Thru site.
Alex & Associates, Inc.
6107 SW Murray Blvd.
Beaverton, OR 97008
503 5909423 - 9am-6pm Pacific time