Rachel's Café Acquisition Workbook

Why this matters: A café that is “good” as a lifestyle business may not be good as a passive investment. Be honest about whether you want a rewarding career, a growth business, or a financial asset.

How to answer: Start with what you need to live, not what the café currently makes. Include rent/mortgage, car, holidays, savings and tax. This salary must come after food costs, staff, rent and bills.

Why this matters: Many cafés only work because the owner does unpaid hours. If you need to work 60–70 hours forever, you may have bought myself a stressful job rather than a sustainable business.

How to answer: Think about early mornings, weekends, staff problems, customer complaints, cleaning, waste, suppliers, and cash pressure. Hospitality experience helps, but ownership feels different from employment.

Why this matters: You are not just buying a café; you are buying into Horsforth for the next 10–15 years. Our initial research suggests Horsforth is one of Leeds’ stronger suburbs: family-friendly, good schools, high property demand, independent shops and disposable income. This is still partly a judgement call, so you should walk the area at different times of day and compare it with nearby places.

Where to find answers: Visit on a weekday morning, weekday lunch, Saturday brunch and Sunday afternoon. Count people walking past for 15 minutes. Notice whether they look like café customers: parents, professionals, dog walkers, retirees, students, cyclists, shoppers.

What this means: Parking/access is about how easy it is for customers to actually use the café. Can parents stop after school drop-off? Can older customers park nearby? Can dog walkers arrive on foot? Are there bus stops, train links, bike racks, disabled access, step-free entry and clear signage?

Tip: Treat this like field research. Take photos, count customers, note quiet periods, and compare weekday vs weekend.

Why this matters: A clear proposition helps customers decide quickly. “Vegan café” is distinctive, but you need to decide whether it attracts enough people or unintentionally puts some off.

Where to find answers: Ask existing customers why they come. Check reviews for words like vegan, plant-based, brunch, coffee, dog-friendly, cakes, atmosphere. The owners have specifically said they are keen to sell to someone who keeps the place vegan. That suggests the vegan identity is part of the goodwill being sold. The risk is changing the thing loyal customers love before understanding it.

Test: If you cannot explain why someone would choose this café over the six other places nearby, the plan is not strong enough yet.

How to answer: Look at signage, menu design, website, Instagram, Google reviews, interior, service style and whether the café feels current. A refresh can help, but a full reposition can alienate loyal customers.

Why this matters: Seats are not the same as capacity. A café with 36 seats can still be limited by the kitchen, coffee machine, staff, stairs, toilets, queue space or how long customers stay.

How to answer: Current reported turnover of £130k–£156k may imply only around 25–35 customers/day if average spend is £14–£16. A well-run daytime café here may be able to aim for 55–65/day, but only if service and kitchen flow can cope.

Why this matters: Average spend is not just price. It is coffee + brunch + cake + takeaway + repeat visits. A customer spending £4.30 on an iced latte is useful, but the business needs enough higher-value orders to cover staff, rent, bills and waste.

How to answer: 365 days is unrealistic. Allow for holidays, Christmas closures, sickness, maintenance, quiet January days and possible reduced hours.

Where to find answers: Watch the café at peak time. Are orders slow? Is the kitchen cramped? Is there a queue? Are tables left uncleared? If service struggles at 40 covers, a 65-cover plan is not realistic without operational changes.

Meaning: Gross margin is what remains after the direct cost of ingredients. If a dish sells for £10 and ingredients cost £3.20, the gross profit is £6.80 and the margin is 68%. This must pay staff, rent, utilities and profit. Where to verify: supplier invoices, recipe costings, EPOS product mix and accountant reports.

Why this matters: The owners have said there are 6 part-time staff. That could be positive if they are flexible, trained and liked by customers. It could be a risk if the wage bill is high, rotas are inefficient, or key people leave after sale. You need names, roles, hours, hourly rates and contract terms — not just the number of staff.

How to use this: Because the team is part-time, this is not a full-time salary. It is the estimated annual pay per person. For example, 15 hours/week at £12.50/hour for 48 weeks is £9,000/year. This helps you see the real wage cost instead of hiding it inside a percentage.

Meaning: Employer National Insurance is an extra payroll cost paid by the business, not deducted from staff wages. The 2026/27 standard employer NI rate is 15% on earnings above the secondary threshold, but this should be checked with an accountant before relying on it.

Meaning: Employer NI normally only applies above a threshold for each employee. The 2026/27 secondary threshold is £5,000/year. If a part-time employee earns £9,000/year, employer NI is estimated on £4,000, not the full £9,000.

Why this matters: Employment Allowance can reduce employer NI for eligible small businesses. It may reduce the NI bill to zero, but eligibility must be confirmed by the accountant or payroll provider.

Why this matters: Rent is paid whether the café is full or empty. The owners have said rent is £1,200/month, which is favourable if accurate. But you must check whether this excludes VAT, service charge, insurance, rates or repair obligations. Where to verify: lease, rent invoices, service charge demands and rent review clauses.

What this includes: electricity, gas, water, insurance, cleaning, repairs, software, card fees, accountancy, phone, waste collection, licences, small equipment and marketing. Where to verify: bank statements, management accounts, supplier bills and card processing statements.

Why this matters: The lease is the thing that gives you the right to trade from the premises. A weak lease can make a good café unbuyable. Where to verify: ask the broker for the lease, then solicitor review. Land Registry can also help confirm lease details.

Why this matters: A rent review could increase rent just after you buy the business. That could wipe out profit. Where to verify: lease schedule, solicitor, broker, landlord/managing agent.

Why this matters: This changes the growth plan. If longer hours are restricted, evening events or supper clubs cannot be assumed. However, it may not be a deal-breaker if the daytime café can support my income. Where to verify: lease clause, landlord consent process, planning/licensing restrictions, neighbours and any previous requests by the owners.

Meaning: A full repairing lease can make the tenant responsible for costly repairs. A cheap café can become expensive if roof, electrics, drains, extraction or damp problems are the tenant’s responsibility. Where to verify: lease, property survey and solicitor.

Negotiation principle: Do not pay the seller for the growth you create after purchase. The offer should be based on verified current profit, equipment value, lease quality and risk.