How do I tell wholesale cafe accounts from retail sales at a coffee roaster?

Start with how the books record sales. A roaster that tags every sale by channel makes this easy. If everything lands in one revenue line, ask the seller to rebuild the split from invoices, point-of-sale reports and online orders, then check a sample against bank deposits.

Wholesale accounts are usually invoiced, bought in bulk and priced on a list or a negotiated rate. Retail sales are paid at once, in smaller amounts, often with a customer account or a subscription. Look at the receivables for each: slow-paying cafes tie up cash, and retail cash should match deposits.

Then compare the customers. Which cafe accounts are largest, how long have they stayed and do they use any equipment or training the roaster supplies? Ask whether the accounts are under agreement and how the seller would introduce you. Finally, look at costs by channel. Packaging, delivery and discounting can differ sharply, so ask your accountant to help compare the real margin of each. Ask how returns, free samples and equipment loans to cafes are recorded, because those often sit outside the sales line.

Key takeaways

• Get a year of sales split into wholesale, shop and online.
• Check the split against invoices and bank deposits.
• Compare receivables, delivery and packaging costs between channels.
• Ask which cafe accounts are under agreement and how long they have stayed.