How do I check a kitchenware store’s cooking-class and demo programs?
Ask for a schedule and records for the classes and demos, including attendance, what was charged and what each cost to run. Then see whether the classes lead to product sales, and ask who actually teaches them and whether they will stay.
Classes and demos can bring people into a kitchenware store, but they only help if the numbers work. Ask for several seasons of event records: dates, topics, attendance, ticket revenue and costs such as food, staff time and instructor fees. Compare events that were full with those that were not.
Find out who teaches. If the owner leads most classes, the program may depend on one personality. If outside chefs are hired, ask how they are paid and whether they will return for a new owner. Ask whether the teaching kitchen, mailing list and class bookings are part of the sale.
Look at the effect on sales. Do attendees buy tools, cookware or ingredients on the day or afterward? Ask how the shop tracks that. A class that sells out but does not lift sales may be more of a community feature than a profit centre. Check the equipment used for demos, and whether it counts as inventory, display or fixtures. Ask your accountant how it is shown. Also ask about customer deposits for upcoming classes. Your lawyer can advise on how those are handled when ownership changes.
Key takeaways
- Get attendance, revenue and cost figures for each class or demo over several seasons.
- Find out who teaches and whether instructors and bookings carry over to a new owner.
- Check whether class attendees buy products and how the shop knows.
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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 CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat is inventory
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