analytics

 Cafes

Café have become one of the most popular categories in retail food over the past few years. The barriers to entry are fairly low and the skill set of a buyer does not need to be high. More importantly is the ability to manage staff and costs and have a great relationship with your customers. A rule of thumb in appraising a café was always a multiple of weekly sales e.g. 25 x Sales of $20,000 a week meant that the café would sell in the region of $500,000. The market has changed substantially in the past 3 years with buyers being more discerning and rather scrutinising the profits in the accounts. Generally we would expect a café to now sell for an approximate multiple of 2 x owners discretionary cash. This can also be affected by other factors and risks. Cafes are generally a simple entry business into the vibrant hospitality Industry. 

 

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