Common seller tricks in coffee shop
Sellers will point to morning traffic and wholesale accounts, and skip the rent ratio, the school or office calendar, and how many hours they still work the bar.
- Rent and CAM that already eat a dangerous share of sales, or a bump that is scheduled just after close.
- An owner who is still the head barista and the social media voice.
- Wholesale or catering accounts that are personal and small, treated as a second engine.
- Espresso machines and ovens that are leased, aging, or due for a rebuild.
- A campus, office, or tourist pattern treated as year-round foot traffic.
Which numbers to verify
Look at weekly sales, average ticket, and labor. Rent plus CAM as a share of sales is a core test. Reconcile card deposits. Split retail, wholesale, and food if any. Recast owner bar hours. If a delivery or catering account is a large slice, treat it separately. Waste and dairy or milk-alternative costs should show up in COGS, not just in a story about quality.
Licensing and key-person risk
Health permits, food handling, and sometimes outdoor-seating or signage permits apply. If they roast, there may be additional venting and fire-code issues. Confirm the lease allows the current use, including any kitchen or alcohol if those exist, and that a sale does not reopen those questions.
Equipment and condition
Espresso machines, grinders, brewers, and refrigeration are specialized and expensive to rebuild. Find out who owns them, who services them, and when they were last rebuilt. POS and loyalty programs should be in the company’s name. A build-out that the landlord owns is not yours to finance twice.
Seasonality and the calendar
Offices, campuses, and tourist streets have calendars. Summer can die on a campus and boom on a boardwalk. Look at weekly sales for a full year. A buyer who closes in May near a college may be buying a quiet summer first.
Customer concentration
A single office building, a school, or a wholesale account (a nearby restaurant buying beans) can matter more than it looks. Regulars who follow the owner are a softer concentration. If the shop is inside another business, that host is the risk.
Questions to ask before you make an offer
- Please provide weekly sales for two years, with card deposits to match, and a split of retail, wholesale, and food.
- What is rent plus CAM as a share of sales, and what increases are scheduled?
- What is the remaining lease term and assignment language, and is there a personal guaranty?
- How many bar and opening hours does the owner still work in a typical week?
- Who owns the espresso machines and ovens, and when were they last rebuilt or replaced?
- What health and food permits are required, and do they transfer with the premises?
- What share of sales depends on a campus, office, or tourist calendar?
- Are there loyalty liabilities, unpaid vendor bills, or gift-card balances?
- Which wholesale accounts will stay if the owner is no longer roasting or delivering?
- After an LOI, may I speak with your accountant and the landlord?