How do I find out who supplies a shawarma shop’s meat and bread?
Ask the seller for a list of suppliers with invoices for the last few orders, then check them against the cost of goods in the financial statements. Speak to the main meat and bread suppliers, with the seller’s agreement, and learn whether they would keep serving you on the same terms.
Ask for the supplier list and a stack of recent invoices for the main items: meat, pita or flatbread, vegetables, sauces and packaging. Note how each is ordered, how often deliveries come and who is paid on credit. Compare the invoice totals with the food cost shown in the statements, since a mismatch deserves an early question.
Then look at dependence. Is the meat from one source, and is it prepared to the shop’s own specification? Is the bread baked for the shop, or bought from a general supplier? Special arrangements are harder to carry over. Ask whether prices are fixed or change often, and whether any promises are written down or understood only between the owner and the supplier.
Speak to the suppliers yourself, through the seller. Their willingness to continue, and the terms they offer a new owner, tell you more than a list will. If the shop is part of a franchise system, ask the franchisor what the approved suppliers are, and ask your lawyer to read the franchise papers. Ask also how deliveries are checked on arrival and what the shop does when an order comes in short or late.
Key takeaways
- Collect supplier names, invoices and delivery patterns.
- Compare invoice totals with the cost of goods in the statements.
- Ask whether any product is made to the shop’s own specification.
- Speak to key suppliers about terms for a new owner.
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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 CanadaGovernmentHow to diversify your supply chain
- 04Restaurants CanadaIndustryRestaurants Canada - The Voice of Foodservice
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