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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