Location: Petoskey, Michigan
Industry: Snack & Non-Alcoholic Beverage Restaurant
Listing ID: AH300918DW
This Coffee Shop is a high-end in Petoskey, Michigan located in the heart of a highly desirable downtown area. The owners have been providing the area with the highest quality coffee and delicious gourmet baked goods since 2014. They offer the highest quality coffee experience in the surrounding area, providing this location with a competitive advantage. The company has experienced steady growth since inception.
Their type of coffee shop is in the fastest growing segment of their industry, known for increased coffee quality, more direct traded product, a greater emphasis on sustainability, lighter roast profiles, innovative brew methods, and superior customer service.
This coffee shop has been cultivated by the very intimate handling of each step. They have developed a wonderful staff that delivers beautifully crafted products resulting in a large and loyal customer base. The customer friendly staff is complemented by a coffee venue delivering comfort and ambiance. The owner states that “We had the idea of our ideal demographic as someone who would rather make coffee at home than purchase what was currently available from our competition. Urban dwellers have found our coffee shop an oasis during their stays in the area”.
This is a business for someone who has a refined palate and genuine passion for coffee. The unique and over-the-top standards of product and service established through the creation of their business should be maintained by new owners; the established practices of this niche business would ensure continued success and growth. As a leader in the growing market of people who care where things come from and how they are made, there is an abundance of forward momentum that this company has achieved.
Total Sales: $311,658
Cash Flow: $59,567
FFE: $44,208 (Included in Price)
Inventory: $4,000 (Included in Price)
Reason For Sale:
Would like to pursue new opportunities.
Training & Support:
Will provide necessary transition assistance to ensure a successful transition to a new owner.
Year Established: 2014
Days & Hours of Operation: Wednesday – Saturday, 8am – 4pm; Sunday, 9am – 4pm
Employees: 5 – 10, depending upon the season
Lease Option: Renewal option after 3/31/19 expiration
Monthly Rent: 1432
Type of Location: Downtown Storefront
Square Footage: 951
Ideal downtown storefront in the center of town
Main competition in the area consists of two other coffee shops in the downtown area. The reason these qualify as competition is due to the common customer segment of people who drink coffee, but do not care much about the quality above a basic cup of coffee. These customers could equally be happy ending up at any of the coffee shops. The company does have the edge and many times once coffee drinkers experience their higher quality, they are often converted to returning customers. The other coffee shops cannot compete on the high quality of this company. This ensures a solid loyal customer base that is continually growing. The owners predict a growth of 5% to 10% annually.
The following are potential areas of growth opportunities the new owner could quickly implement to improve the operations and profitability of the business:
- Establish management systems to operate the business rather than an owner reliant/hands-on operation
- Decreasing service related needs.
- Expanding to multiple locations.
- Increasing hours of operation to 7 days a week, with longer hours during the day.
- Reduce the cost of goods, without jeopardizing the quality of the café experience.
- Catering could be added to the list of services the company offers by utilizing the kitchen.
- Lunch items could be added to the menu.
- Moving to a larger location.
- Implement more automation to address problems in the current labor market.
Seller will provide necessary seller financing if required to secure SBA financing