How do I judge produce spoilage at a juice bar I want to buy?
Ask for the waste records and compare purchases with sales, then look at how produce is stored, rotated and ordered. Check the walk-in and the prep area yourself. If nobody tracks waste, assume the cost is hidden inside the food cost, and ask the seller how it can be measured.
Ask whether the shop tracks waste at all. A simple log of what is thrown out and why is the best evidence. Without it, compare produce purchases with sales, using the cost per juice and the number of juices sold, and see whether the gap seems large. Your accountant can help you read that gap against the financial statements.
Inspect the storage. Look in the walk-in and the prep area for wilted greens, overripe fruit, mould or crowded shelves. Check labels and dates, rotation of older stock to the front and how ice and cold-chain details are handled. Visit at the end of a day if you can, to see what is left and what is thrown away.
Ask how ordering works. Does the shop buy by habit or by sales forecast, and how many suppliers deliver, and how often? Order sizes that do not match demand are a common source of spoilage. Ask the proper health authorities what they expect of storage, and ask your lawyer about any lease terms that affect the cold room. Ask how staff are trained to trim, store and use produce, and whether any recipe changes were made to use up stock.
Key takeaways
- Ask whether waste is logged, and read the log.
- Compare produce purchases with juices sold.
- Inspect storage for wilted, overripe or crowded stock.
- Ask how staff are trained to trim and rotate produce.
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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 is inventory
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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