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Renting a Cafe


I agree with previous post, 500 people is a very small number to base a business turnover on. My concern is that it appears you have little or no financial or sales documents (ie proof) from the current owner to backup the $8000 a month figure.

In a tight economy and challenging business world, most tenants are able to negotiate very good lease deals to take over leases. This rent seems very high, especially as you havent mentioned any fit out costs or what stock/equipment stays for you to use.

Why are they selling or moving out?

Profit margins for cafes are reliant on good cakes and coffees to generate approx 25% net. If your projected sales are not near this figure tread cautiously.

I would suggest working in there for a week or two to see the real cash and customer numbers.