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Paul Leach
  • Total posts: 25

If you are taking a wage then that figure could be used to demonstrate that the business is making money to prospective buyers.

In a smaller cafe is very hard to make good money unless you are working it yourself so I would be careful about putting somebody in there to run it.

It sounds like the area is growing so the ideal thing would be to focus on what you can do to increase the sales and, at the same time stay focused on your food cost % and wage % as these two make a huge difference to the profit of a cafe.

Ideally your food cost should be around the high 20% to early 30% mark and wages around 25% [both net of GST]

If you can build a strong team around you then you will make your life a lot easier and the business will also become more profitable and saleable.

You may find that one of your team i.e. Barista, Chef, Manager are looking for their own business and you could consider a vendor financed deal if you are confident in their ability. I did this will my first cafe and my two managers ran the business very successfully for 10+ years.
This was a good deal all round, I sold for above market value, earned good interest and they got a head start into business that they could not have got elsewhere.

I notice this post is a few months old but thought I would reply anyway, I hope you have found a solution.