What should I ask about a deli’s regular lunch and catering customers?
Ask who the regulars are, how often they come, and what they order, then separate the walk-in lunch trade from catering clients. For catering, ask which customers book repeatedly, who handles the orders, and whether any of them depend on the current owner personally.
A deli’s lunch trade and its catering business behave differently, so ask for each on its own. For lunch, look at sales by hour and by weekday. Stand in the shop through a few lunch rushes and watch the line, the faces and the speed of service. Ask the staff how many customers they know by name.
For catering, ask for the order history. Find out which clients return, which ones booked once, and how the orders arrive. Ask who prices the jobs, who confirms the details and who delivers. If a few offices or event planners account for most of the work, ask what keeps them loyal and whether any contract or standing arrangement exists. Consider what happens at the handover. Regular customers often come for the owner’s manner and the staff they know, so ask who will remain. The seller can introduce you to the top catering clients once a confidentiality agreement is in place. Ask your lawyer to review anything the seller promises about client continuity. Ask which catering customers pay on account rather than at pickup, since late payers tell you something about the quality of that revenue.
Key takeaways
- Treat lunch trade and catering as two separate questions.
- Ask for catering order history and see who books again.
- Find out which customers rely on the owner personally.
- Ask which catering clients pay on account and how they would feel about a new owner.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I keep a restaurant’s regular customers after buying it?
- Expert answerHow do I check a pet supply store’s regular food delivery customers?
- Expert answerHow do I keep a convenience store’s regular customers after I take over?
- GuideBuying a catering business in Canada
- Expert answerWhat happens to a catering company’s booked events when it is sold?
Selling
Due diligence
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 the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
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