Thinking About Buying a Coffee Shop?
Buying a coffee shop is an exciting opportunity, but there are some unique factors to consider before you close the deal. As a business broker who has helped many clients buy and sell coffee businesses, here are three key things I always tell buyers to watch out for.
Roasting On-Site? Check with the Landlord First
Ah, nothing beats the smell of roasted coffee beans. If you’re buying a coffee business that isn’t currently roasting on-site, but you’re thinking of adding that feature, check with the landlord first. Roasting beans releases smoke—the very thing that creates that magical aroma. But where does the smoke go?
Without proper ventilation, too much smoke can become a fire hazard and potentially trigger a visit from the fire department. Installing a hood or approved ventilation system is often required. But be warned: installing a hood can change the use classification of the space and increase insurance costs. Many landlords are unwilling to approve these changes, so this must be factored into your decision if roasting is key to your business model.
Don’t Assume the Equipment Is New
In any restaurant purchase, always have the equipment examined by a repair professional. You might think, “The business is only two years old—how bad could the equipment be?” But don’t assume the equipment was purchased new or is the same age as the business.
Also, don’t take everything the seller says at face value. I once listed a yogurt shop where the seller claimed the machines were just a couple of years old. A buyer asked for serial numbers, called the manufacturer, and found out the machines were actually 10 to 12 years old. The seller lied. I immediately dropped the listing—I don’t work with liars, and neither should you.
Invest in Quality Equipment
If you’re opening a new shop or buying a franchise, you may have the option to choose your own key equipment—like the grinder, espresso machine, or POS (point-of-sale) system. Don’t go for the cheapest options. These machines will be the heart of your operation and need to withstand constant use.
Take the time to research your options. There’s a wealth of information online—read reviews, watch demos, and once you’ve narrowed down your choices, ask the rep if you can test the equipment in their showroom. Look for machines that are easy to use, simple to clean, and come with solid warranties and responsive customer service.
Final Thoughts
These are just a few tips to keep in mind when buying or starting a coffee shop. Stay tuned for more articles and tips on BizBen—or consider joining one of my free workshops like, “Is Buying a Coffee Franchise Right For Me?” Check BizBen Workshops for upcoming dates and times.
Christina Lazuric Woscoff
Business Broker / Principal
