Is now a good time to buy a patisserie coffee shop franchise?

Surely one of life’s little pleasures. Relaxing with some sugar loaded carbs and a latte. Does it get much better than that?

We’re getting a number of inquiries from people looking at patisseries /coffee shops franchises. Unusual as this may sound, we should look beyond the immediate issues of subdued trading conditions and lock-down restrictions.

In fact, we’re hearing of pent-up demand and sweetheart deals with enthusiastic landlords keen to have a tenant for their recently vacated premises!

Some new franchisees are able to negotiate hard for significant landlord contributions on new fitout, together with decent rent-free periods.

There is also an availability of good locations, with more likely on the way.

Then we need to consider the other key issues for the business itself:

  • Gross profit margin (usually strong because of product mix)

  • Certainty of supply chain, including alternative suppliers (just in case)

  • Staffing, roster and wages costs

  • Marketing, launch promotion, social media plans

  • Recruitment and staff training

  • Access to finance in a tight funding market.

Then there are the franchise fees, with franchisors particularly keen at the moment. Definite opportunities there, with up- front discounts and royalty honeymoons negotiable.

And be sure to get a pre-purchase review before you commit.

Let me know if you need a hand.

Peter