# Best way to sell my coffee shop



## puffin

I started my coffee shop 2 1/2 years ago business has been growing steadily ( takings in 2015 were 32% higher then 2014 and 2016 is already looking good) but I want to move out of the area and therefore sell my shop. I have looked online and the commercial property agents that are selling similar businesses in the area are selling shops that are already out of business or on the way there. I want to sell but I do not want my customers or staff to know as think this will reflect badly on the business. I want to sell it as going concerns as the place looks great and we have a lot of very loyal customers that love our coffee and cakes.

Anyone gone though this and with any luck?

Any advice would be great.


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## Jumbo Ratty

puffin said:


> I started my coffee shop 2 1/2 years ago business has been growing steadily ( takings in 2015 were 32% higher then 2014 and 2016 is already looking good) but I want to move out of the area and therefore sell my shop. I have looked online and the commercial property agents that are selling similar businesses in the area are selling shops that are already out of business or on the way there. I want to sell but I do not want my customers or staff to know as think this will reflect badly on the business. I want to sell it as going concerns as the place looks great and we have a lot of very loyal customers that love our coffee and cakes.
> 
> Anyone gone though this and with any luck?
> 
> Any advice would be great.


I would want to know what the profit for the year was, not that takings where up 32%


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## NickdeBug

Hi Puffin

Tricky situation, but you can't be the first to be faced with it.

Firstly, your business has a value beyond the sum of its component parts.

As to how best to achieve that value - you need to find out what the typical multiple is for your sector (this is the multiplication factor that you apply to your net profit). Might be worth talking to an accountant.

Have you thought about sticking a manager in and keeping the business to fund your next venture? As non-owner-run businesses are regarded as more valuable, you still have the opportunity of selling on in the future, maybe at a better price.

Good luck


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## froggystyle

Jumbo Ratty said:


> I would want to know what the profit for the year was, not that takings where up 32%


Im sure that would be shared with any potential buyer, i wouldn't want to stick it on an open forum.


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## Jumbo Ratty

froggystyle said:


> Im sure that would be shared with any potential buyer, i wouldn't want to stick it on an open forum.


He doesnt have to. but a % is meaningless.

I could have a car wash business and say it has grow by 32% year on year.

I could have washed 3 cars the year before and 4 the next.


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## froggystyle

Jumbo Ratty said:


> He doesnt have to. but a % is meaningless.
> 
> .


As are your last two posts.


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## jeebsy

Where is it?


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## NickdeBug

Empire-building jeebsy?


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## CoffeeJohnny

I agree with the previous post, if you can afford to go with a manager do so, if you can't (or the business can't) it may not be such an attractive prospect. Mind you I'd work for coffee and the ability to play on the machine at will. So maybe ignore me. Seriously though best of luck with it all. Knowing where in the world you are may pique the interest of some local members, you don't need to give an address.


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## MrShades

@ronsil may be able to comment better than most on here...


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## ronsil

I think you may well find it almost impossible to sell as a 'going concern'.

People venturing into the speciality coffee shop market tend to want to do store layout & equipment to their own personal taste.

Position is key.

If I wanted to shift a 'shop' I used to make the manager a partner initially. Then after time offer a buyout on reasonable terms.

You could offer it to a business agency but it would not move quickly.

Welcome to the Forum BTW


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## jeebsy

NickdeBug said:


> Empire-building jeebsy?


I have expansion plans moving at the moment but just in case...


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## Ian Clayton

Hi @puffin,

So, where is it please? Do you have a postcode and some pics?


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## Jumbo Ratty

puffin said:


> I have looked online and the commercial property agents that are selling similar businesses in the area are selling shops that are already out of business or on the way there. I want to sell but I do not want my customers or staff to know as think this will reflect badly on the business. I want to sell it as going concerns
> 
> Any advice would be great.


This site sells ongoing concerns.

Plenty of coffee shops in various areas being sold.

Asking Price of £32,500 for a Turnover of between £50k to 100k seems about a rough average for a leasehold

Coffee Shops  (663)


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## puffin

Ian Clayton said:


> Hi @puffin,
> 
> So, where is it please? Do you have a postcode and some pics?


Its in Brighton town centre


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## puffin

Brighton


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## Jon

Good location then?


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## Mrboots2u

Perhaps a bit of honesty with the employees would be advisable . If they find out its for sale via a route other than yourself then that won't help it as a ongoing business- and trust me it will be a hard secret to keep . Be honest , perhaps one of them might want to take it on as Ronsil suggests . Sooner or later they will twig or be told , especially if Potential buyers are being shown round . If the quality continues while its for sale then customers would stay . I

Be honest about why you are selling and trust the people that work for you


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## Yes Row

Are you selling a lease or freehold?

I would recommend an estate agents along the lines of Christies & co ( I am not recommending them, there are loads of similar companies)


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## Stevie

Little coffee company?


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## Jumbo Ratty

Stevie said:


> Little coffee company?


Doubt it, that shops been opened longer, the OP says 2.5 years trading.

Could be the Nordic Coffee Collective, if it is it looks *very* nice


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## DavecUK

ronsil said:


> I think you may well find it almost impossible to sell as a 'going concern'.
> 
> People venturing into the speciality coffee shop market tend to want to do store layout & equipment to their own personal taste.
> 
> Position is key.
> 
> If I wanted to shift a 'shop' I used to make the manager a partner initially. Then after time offer a buyout on reasonable terms.
> 
> You could offer it to a business agency but it would not move quickly.
> 
> Welcome to the Forum BTW


Absolutely agree with Ron on this and his strategy for moving the shop on is a sound one. I've also seen it done this way for many businesses where the "going concern" and "customer loyalty" is only as good as the people that work there and the products you sell/prepare. Otherwise all you are your selling on is a lease, some equipment and a list of suppliers you use. Now there may be some customer goodwill, but really if someone opens a new coffee shop a few doors away, people will go out of curiosity, if it's really good....that goodwill doesn't last very long, especially if your place is under new ownership, with a lot of new people.

Many many Years ago I worked in a Kings Road (London) wine bar, It was my part time job to pay my way through University. The owners sold it to the existing working manager and had been doing profit share with him for a year. Graham decided on which staff he was going to keep and when the changeover happened, it was as if nothing happened. then over the next 6 months he gradually churned the staff he didn't want.


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## Stevie

Jumbo Ratty said:


> Doubt it, that shops been opened longer, the OP says 2.5 years trading.
> 
> Could be the Nordic Coffee Collective, if it is it looks *very* nice


I doubt its NCC - I say Little Coffee Company because it was listed for sale around 3 or 4 months ago with an estate agent. I'm looking to open somewhere in Brighton later in the year, have thought about 'taking over a business' but I think with my concept I need something a little more greenfield.


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## puffin

Stevie said:


> I doubt its NCC - I say Little Coffee Company because it was listed for sale around 3 or 4 months ago with an estate agent. I'm looking to open somewhere in Brighton later in the year, have thought about 'taking over a business' but I think with my concept I need something a little more greenfield.


Thanks everyone for your input. Loving the guessing game going on. Can't say at this time which shop as haven't spoken to my staff yet.


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## Stevie

I'd like more information further down the line when the sale goes public....


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## puffin

Will post further info once we get things sorted.


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## h1udd

puffin said:


> Can't say at this time which shop as haven't spoken to my staff yet.


I am a little disappointed that your staff haven't cottoned on yet through reading this thread !! .... why arnt you employing coffee geeks ?


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## Stevie

I just hope that it's not where I work!!! Haha


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## Stben

I sold a business a few years ago through agent and costs were quite high,

look on Internet in your area where others are selling ie gumtree, business for sale site, these are generally cheaper

basically if your looking to buy a particular business you will look everywhere not just overpriced agents


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## SmithStCoffeeRoasters

selling a business can be a long stressful process.. If you go through a agent they'll take a fixed fee & normally a fee on completion other options to consider, sub let if your lease terms allow it, close and sell of kit & stock or is there a member of staff who may buy it from you? you could work out a payment plan.. Any business is only worth what someone is willing to pay for it and cafes 'good will' can be a difficult accet to value.


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## TheBeehive

You also might want to make sure the Landlords are down with lease being assigned. I was minutes from signing on the dotted line before landlords but an end to that venture.


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