Buying an existing bagel store

Post
msp
Junior Burger
2006/01/09 18:06:13
We are looking to by an existing bagel store and need some input. It currently grosses on the books $185,000.00 per year and the asking price is $150,000.00 with all inventory included. Has a 5.5 year lease( very good monthly rent) left and is in a very good location as all road improvements are done and a new office complex and mall (wall-mart and Lowes) are going in next to it. We want to expand to do subs and will add state lottery to existing store. seats 30 with room to expand for some outside dining. (location nj).Just a quick overview but would like to hear from all that have any ideas about this. Feel free to e mail us with any coments. Thanks Mimi and scott msp@patmedia.net
Scallion1
Cheeseburger
RE: Buying an existing bagel store 2006/01/09 19:04:46
There have been several extensive threads about buying an existing business, and they've presented many different aspects of doing so.

I only have two comments on your post: first, 5.5 years is nothing. Be sure you have something in writing from the landlord regarding renewal leases or options. If, as you indicate, the area is rapidly being upgraded, you might find yourselves in a nightmare in five years if you don't prepare now. Second, I had a place - a bar - with a lotto. I didn't find that the work involved was worth the small amount of money you earn. What happens if the lotto or the mega hits a big number, and you get a lot of people buying tix right in the middle of your lunch or breakfast rush? Will the added income make up for the loss of good will among your regular customer? Plus, whatever money it is doesn't come without effort. Just my opinion, but to me the lotto is best in a convenience store or a candy store.
Actually, I have one more comment. Think long and hard about adding subs. I would believe that you'd be much better off making sandwiches on bagels.
Either way, good luck.