How do I find out what share of donut sales is coffee and drive-through?
Ask for point-of-sale reports that split sales by product category and by order channel, then confirm them against the financial statements. If the system does not separate coffee or drive-through, sit in the lot at busy hours and count orders yourself.
Donuts, coffee and the drive-through lane each have their own pattern, and a buyer should know which drives the business. Start with reports by product category and by order type. Ask what the till records and what it lumps together. Many shops can show hourly sales, which makes the morning coffee rush easy to see.
Check the reports against the books. Ask the accountant whether revenue is coded by category and, if not, how the seller estimates it. If the reports and the financial statements disagree, ask the seller to explain before you rely on either one. Add your own observation. Spend a few mornings at the shop, and some afternoons, counting drive-through cars and counter orders. Note average order size and how long the line takes. Coffee tends to bring repeat visits, so ask how many customers come daily. If you work with a broker, ask them to request the breakdown early. A seller who tracks it closely often runs a tight shop. Ask whether any large coffee orders for offices or events pass through the same till, since those can inflate the daily picture.
Key takeaways
- Request sales reports by product category and by order channel.
- Check the reports against the financial statements.
- Count drive-through and counter orders yourself at busy hours.
- Ask about bulk coffee orders for offices or events and compare the counts with the till reports.
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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?
- 03Statistics CanadaResearch dataMonthly survey of food services and drinking places
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