What should I check before buying a sandwich shop?
Before buying a sandwich shop, check how much it relies on weekday lunch from nearby offices, how much comes from catering and delivery apps, how weekends and summers look, what prep labour and waste cost, the state of the refrigeration, and whether the lease allows the use and the venting the shop needs.
A sandwich shop looks simple: a short menu, a counter and a lunch line. That simplicity depends on a steady flow of people nearby and on tight control of food costs. Before you make an offer on one, find out where the customers come from, what the work behind the counter involves and what the building allows.
Lunch customers and quiet periods
Many sandwich shops live on weekday lunch from nearby offices, schools or job sites. Ask what changes if a large employer moves out or more people work from home. Ask for sales by day of the week and by month so you can see weekends and summer. Visit at different hours, with the seller’s agreement, and count the customers yourself.
Catering and delivery apps
Catering orders can fill slow hours, and delivery apps can add sales, though both change the work. Ask how much each brings in, whether catering clients are regulars or one-time, and what the apps charge. Also ask who handles those orders at the peak of lunch, since a rushed counter can hurt the walk-in customers you already have.
Prep, waste, refrigeration and the lease
Sliced meats, cheese and produce spoil, so ask how the shop orders, how much is thrown out and how much prep time each day needs. Check the walk-in and under-counter coolers, their age and service history. Then ask your lawyer to read the lease for the permitted use and for venting or equipment limits. The cafe buying guide covers similar ground.
Related reading
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- GuideBuying a café or coffee shop in Canada
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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