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elissa.doxey
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Hi Navyman,
I know of owners who bought a milk bar business purely for the location and turned it into a cafe, and they maintained a partial general store feel to the place (selling milk, bread & newspapers), which tied in nicely to their cafe.

A bakery could possibly be similar – e.g. supplying fresh bread for purchase, as well as operating as a cafe, but if you’re not able to utilise a substantial proportion of assets like machinery, cabinetry, etc, then it does sound like you’re paying $50k towards the right to lease.

You need more information: an asset breakdown, liabilities, details of how much lease time is remaining, estimates on what it will cost to outfit your cafe, etc.

Ultimately it comes down to how much you are willing to pay for that location. However, it might also depend on whether the current bakery owner’s lease expires before they sell :).

Work on the figures & research different options (i.e. selling on the bakery assets, leasing options, alternative locations).

All the best,
Elissa