Should I buy an existing café or open a new one?
The choice turns on what you want to inherit. A resale brings trading history, regulars, equipment, a lease and staff, along with old equipment, lease terms and a reputation you did not build. A new café lets you design everything and starts with no customers. Test both routes against your skills and time.
Both routes lead to a café, but they ask different things of you. Buying means studying someone else’s business and deciding what to keep. Opening means making every decision yourself, from the layout to the first customer. Neither is the right answer in general. The better route is the one whose risks you are more able to manage.
What a resale includes
An existing café can come with equipment, a lease, a menu and recipes, suppliers, staff and a customer base. You can see how it trades before you commit, and you start with a business that already operates. Ask to see the records behind that history, and ask your accountant to read them with you before you rely on them.
What a resale carries
The same package brings baggage. Equipment may be near the end of its life, the lease may have terms you would not choose, and the café’s reputation, good or poor, becomes yours. Habits that suit the old owner may not suit you. Ask your lawyer to read the lease and the purchase agreement before you sign, and see our café due diligence guide.
What a new café asks of you
A new build-out gives you the layout, equipment and brand you want, and no inherited problems. It also gives you no customers, no history and a period of making decisions without evidence. Ask what permits and approvals the location needs from your local authorities, and who can tell you how long each step takes.
Questions that tip the choice
- How much time can you spend before the doors open?
- Do you want to change the concept, or run a proven one?
- Can you absorb a quiet start, or do you need income soon?
- Is the right café on the market in the right place?
Related reading
11 pages on the same subject, grouped by topic.
Buying
- GuideBuying a café or coffee shop in Canada
- Expert answerWhat should I do in the first month after buying a coffee shop?
- Expert answerHow do I check a coffee franchise’s espresso equipment before buying?
- Expert answerCan you buy a Coffee Time franchise in Canada?
- Expert answerShould I buy an existing machine shop or start one?
- Expert answerShould I buy a house or a business first?
- Expert answerWhat equipment should I check when buying an ice cream shop?
- Expert answerHow do I check an email newsletter’s open rates and unsubscribe trends?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentBusiness plan template for entrepreneurs
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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