What does a deli sell, and why does the mix matter to a buyer?

Two delis can post the same total sales and be very different businesses to run. One may live on the counter, with customers who come in for a quarter pound of sliced meat. Another may earn most of its income from catering trays ordered by offices. A single total hides that. Before you judge a deli, ask the seller to show you where the sales come from.

The streams a deli can have

• The counter, sold by weight and sliced to order
• Sandwiches and hot lunch items
• Prepared meals and salads to take home
• Catering trays and platters
• Packaged specialty grocery on the shelves
• Supply to a café or restaurant nearby

Why each stream runs differently

Counter sales need skilled people and careful stock rotation. Sandwiches and lunch items depend on the hours and the neighbourhood. Prepared meals can mean leftover food at close of day. Catering brings lumpy orders and often a few large clients. Packaged grocery is simpler to hold but ties up shelf space and money in stock. Ask how each stream is staffed and how waste is handled.

Where the owner matters most

Ask which streams the owner personally holds together. A catering book built on the owner’s phone calls will not transfer the way a busy counter might. Ask who takes catering orders, who talks to the café accounts and who orders the specialty goods. Compare your answers with what checking a sandwich shop before buying covers for the lunch side.

What to ask for

Request sales by stream for several periods, along with the point-of-sale reports and the bank deposits behind them. Ask your accountant to read them with you. They can tell you whether the records support what the seller says, and what a lender will want to see.