What should I ask about an ice cream shop’s flavour supplier and dairy source?
Ask who supplies the dairy base, the mixes, the flavourings and the toppings, and for how long. Find out whether any supply is exclusive or under agreement, how reliable deliveries have been and what quality checks the shop uses. Then ask how quickly it could switch if a supplier walked away.
Start with a supplier list and the last season’s orders. For each item, who provides it, how often it arrives, what the shop pays and how the price has moved. Ask whether any signature flavour depends on a single product that only one source can provide, since that flavour may then be hard to keep.
Read the supplier arrangements. Some suppliers give a freezer, signage or a better price in return for buying only their product. Ask your lawyer whether any such agreement carries over to a new owner and what happens if you want to change brands.
Then ask about quality and safety. How does the shop store dairy, rotate stock and handle a recall notice? Ask how complaints about taste or an upset stomach were handled, and see the paperwork if it exists. Last, look for options. A tested second supplier for the base and the best-selling flavours makes the business sturdier, and the seller may already have a person to call. Ask the seller to introduce you to the main representatives so you can judge how well they know the shop.
Key takeaways
- Get the supplier list with prices and how those prices have moved.
- Find out whether a signature flavour depends on one source.
- Ask your lawyer to read any exclusive or supplier-lent arrangements.
- Ask how recalls and customer complaints were handled.
Related reading
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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 CanadaGovernmentHow to diversify your supply chain
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