How can I tell if a shawarma shop for sale is really profitable?

A seller’s profit figure is a starting point, not a finding. For a shawarma shop, the numbers can be checked against things you can count: kilos of meat, bags of pita, tubs of sauce and hours worked. When those line up with the sales, the books are more believable. When they do not, you have a question to put to the seller and your accountant.

Match purchases to sales

Ask for supplier invoices for meat, pita, produce and packaging over a long stretch. Work out roughly how many wraps and plates that stock would produce, then compare it with reported sales. If sales look high for the food bought, ask the seller and your accountant how the gap is explained. If food bought looks high, ask where it went.

Waste, trim and the spit

Meat is lost to trim, to the end of the spit and to unsold stack at close. Ask how the owner tracks it and how much is thrown out on a slow day. A shop that builds a large spit for a rush that does not come will show it in the food cost. Watching a few closes tells you more than a summary.

Cash, cards and delivery apps

Reconcile point-of-sale reports with bank deposits and with each delivery app’s payout statements. Apps take a share of each order, so a high app volume can mean thinner margins than the sales line suggests. If cash is a large part of takings, ask how it is recorded and how your accountant could confirm it.

Owner labour and what to ask

• Hours the owner and family work, and whether they are paid
• Prep tasks done before opening and by whom
• Any repairs or purchases run through the business that are personal
• Bank statements to match against the sales reports