Lease on coffee shop in tourist area

[elainem]

I have been offered the chance of taking over a Lease on a coffee shop in a well-known tourist village which is on a very busy tourist route in the West. The owner has been ill so it's not just about gettibng rid of a business that is going badly. The cafe has been in operation for 30 years and was listed in some international tourist guides. I would like to do things slightly differently than the owner. The rent is 350 per week. I had experience of running a coffee shop around 20 years ago. Is it a profitable business or not, would I be mad to think of taking over the Lease. How difficult would it be to set up - does the existing business make it easier. I would hope to open it form 9.00 a.m. to 6.00 p.m. each day. It's a business I thought I would always like to go into after my experience of working in a coffee shop many years ago.

Would welcome advice and comments. One of my worries is that the business may be hugely seasonal. The owner was sick in 2011 but had a turnover of 200k in 2010. There is also a chance to buy the buildiing - 1000 sq feet at 250k, but I think this would be very risky.

 

[delgirl]

Sounds good on the basis of the info you've provided and if you've had the accounts checked by an accountant.

What is the term of the lease?

My OH, who is a chef, is currently helping a friend set up a cafe / deli business in Dublin. The deli side will generate extra income and they are focusing on home-made items such as breads, quiches etc.

He was at the Shop 2012 exhibition at the RDS yesterday and they ordered an oven which is ideal for small cafe-deli operations. It's a [broken link removed] which cooks 15 times faster than conventional ovens. A pizza in 3 minutes, paninis and toasted subs in 60 to 90 seconds and re-heats quiches in 30 seconds without causing the pastry to become soft. It has many other uses, these are only examples of the speed.

Wish you good luck with it if you decide to go for it and hope it works out for you!

 

[reddanmm]

Hi elainem if the figures stack up and checked by an accountant i would say go for it . You seem have a good head for business and you dont strike me as the type to rush in to things
Best of luck

 

[T McGibney]

Just to clarify the above 2 comments, no accountant can properly "check the figures" in a situation like this(except perhaps the vendor's accountant who is not independent) without a prohibitively expensive forensic audit.

 

[demoivre]

I have been offered the chance of taking over a Lease on a coffee shop in a well-known tourist village which is on a very busy tourist route in the West. The owner has been ill so it's not just about gettibng rid of a business that is going badly. The cafe has been in operation for 30 years and was listed in some international tourist guides. I would like to do things slightly differently than the owner. The rent is 350 per week. I had experience of running a coffee shop around 20 years ago. Is it a profitable business or not, would I be mad to think of taking over the Lease. How difficult would it be to set up - does the existing business make it easier. I would hope to open it form 9.00 a.m. to 6.00 p.m. each day. It's a business I thought I would always like to go into after my experience of working in a coffee shop many years ago.

Would welcome advice and comments. One of my worries is that the business may be hugely seasonal. The owner was sick in 2011 but had a turnover of 200k in 2010. There is also a chance to buy the buildiing - 1000 sq feet at 250k, but I think this would be very risky.

Number crunch with a fine tooth comb before you commit to anything imo, with your accountant ! Does the 200k include VAT? What's the gross margin? How many staff do you need - how much will they cost ? How much is the ESB/Gas/Rates for the year? Your accountant will want a few bob too !! Is the place ready to go or do you have to spend money on it - will you have borrowings? How much do you want to pay yourself?

 

[dewdrop]

I would urge caution. Suggest you speak to others in similar businesses. On my travels in south of ireland i feel that this type of business has been poor in recent years and most people i spoke to were not too confident of an early improvement.