How do I buy a coffee kiosk or drive-through stand?
Before you buy a kiosk or stand, check the spot before the coffee. Read the site agreement with the mall, host or landlord, confirm it can pass to you, watch the queue and the traffic at different hours, inspect equipment built for a tiny footprint, and ask how weather and hours shape the week.
A kiosk or drive-through stand is a small business on someone else’s ground. Because the format is so compact, a few details decide the deal: what the site agreement says, who controls the spot, and whether the traffic that built the business will still be there when you take over.
Start with the site agreement
Many kiosks and stands operate under a licence, host agreement or short lease rather than an ordinary shop lease. Ask for the whole document and read who can end it, on what notice, and whether the host must approve a new operator. Have your lawyer review it before you rely on it. If the spot does not transfer, you are buying equipment and a recipe, not a location.
Watch the queue and the traffic
Spend time at the site yourself, on a weekday morning, a weekend and an evening. Notice how long the queue runs, where cars stack up and whether the line blocks anything. Ask whether a nearby change, such as roadwork, a new competitor or a tenant leaving a mall, could shift the flow. Seller records show what happened; your own visits show whether it will continue.
Inspect equipment in a tiny footprint
Small spaces wear equipment hard. Look at the espresso machine, grinders, refrigeration, power supply and any heating or cooling. Ask who services each item and how long a breakdown stops sales, since there is no back room to work around it. Check that anything on wheels or built into a structure is actually part of the sale.
Weather, hours and staffing
Ask how the season changes the week, how winter or heavy rain affects the walk-up or drive-through trade, and which hours earn the most. Find out who covers a sick shift when there is only one person in the window. See what to do in the first month after buying a coffee shop for a plan after closing.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a café or coffee shop in Canada
- Expert answerWhat should I do in the first month after buying a coffee shop?
- Expert answerHow do I check a coffee franchise’s espresso equipment before buying?
- Expert answerCan you buy a Coffee Time franchise in Canada?
- Expert answerHow does seasonality affect buying an ice cream shop?
- Expert answerWhat equipment should I check when buying an ice cream shop?
- Expert answerWhich running costs should I review before buying an ice cream shop?
- Expert answerWhat should I check before buying a mall kiosk business?
- Expert answerWhat makes one kiosk business more profitable than another?
- Expert answerShould I buy an existing kiosk business or start one?
- Expert answerWhat makes one ATM location earn more than another?
- Expert answerWhat should I check before buying a coffee trailer business?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 02Federal Economic Development Agency for Southern Ontario (FedDev Ontario)GovernmentUnderstanding your business lease
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 04Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.