How do I tell whether a roastery’s sales come from retail bags or cafes?
Ask for sales broken out by channel: bags sold on the shelf and online, drinks sold at the counter, and wholesale to cafes. If the seller’s system does not split them, match invoices, point-of-sale reports and bank deposits yourself, and check the channel totals against the financial statements.
A roastery can look busy and still depend on one channel. Start with the sales reports by month and ask how each channel is tracked. Retail bags usually run through a till or online store, while wholesale shows up as invoices to named customers. Counter drinks may sit inside the same till as bags, so ask how the seller separates them.
Check that the channel numbers add up to the revenue on the financial statements. Where they do not, ask why. Then compare busy and quiet seasons, since gifts, holidays and cafe demand can move at different times. Visit the shop on a few different days and watch what people buy. Note how many walk out with a bag and how many only order a drink. Ask the accountant how revenue is coded, because the books may lump everything together. The mix changes what you need to run the business, from staff to equipment to marketing, so settle it before you decide. Ask as well whether online bag orders and subscriptions are tracked apart from walk-in sales, since those habits show how loyal the retail side really is.
Key takeaways
- Ask for monthly sales split by bags, counter drinks and wholesale.
- Reconcile channel totals to the financial statements and bank deposits.
- Visit on different days to see what customers actually buy.
- Ask whether online orders are tracked separately and record the answers for your accountant to review.
Related reading
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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 financial statements?
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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