Anyone here in the bar/pub trade?
Discussion
Someone I know has been offered to take over a bar. He doesn't have all the money needed to buy it so has asked me if I want to put a few quid in as an investor. I know zero about this market so was wondering how to determine if it's a good idea.
It's somewhere I have had a few drinks in the past and always seems busy. On the weekends you can't move in there. It's in an affluent part of a busy city and charges decent prices for the drinks and food, which is fairly good quality. From the limited info I have so far, it looks like it's quite profitable and has been growing quite steadily since launch 2-3 years ago. The existing owner is selling for person reasons (or so he says) and is letting it go at a price that looks very attractive.
As with most things being sold, especially in business, it all sounds great so what are the typical pitfalls that I should look in to? What kind of things normally cause these trendy bars to fold and swallow up an investors hard earned savings?
I should mention that my contact has 10+ years experienced in this trade and already owns a successful, profitable bar that is similar. I don't doubt that he can make a good go of it but I want to make sure he/we aren't buying a pup.
Cheers my dears.
It's somewhere I have had a few drinks in the past and always seems busy. On the weekends you can't move in there. It's in an affluent part of a busy city and charges decent prices for the drinks and food, which is fairly good quality. From the limited info I have so far, it looks like it's quite profitable and has been growing quite steadily since launch 2-3 years ago. The existing owner is selling for person reasons (or so he says) and is letting it go at a price that looks very attractive.
As with most things being sold, especially in business, it all sounds great so what are the typical pitfalls that I should look in to? What kind of things normally cause these trendy bars to fold and swallow up an investors hard earned savings?
I should mention that my contact has 10+ years experienced in this trade and already owns a successful, profitable bar that is similar. I don't doubt that he can make a good go of it but I want to make sure he/we aren't buying a pup.
Cheers my dears.
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