What should I check before buying a cat café?
Check the animal side first. Ask whether the rescue partnership continues with a new owner, who owns and cares for the cats, how admission or bookings and food and drink each earn, what insurance covers, and whether staff can handle animals. Ask your local public health unit what applies to a café with cats.
A cat café is two businesses under one roof: a place that serves coffee and food, and a place where visitors spend time with animals. The usual café checks still apply, but the cats add questions an ordinary café never faces. Most of them are about relationships and responsibility, so start by finding out who the cats depend on.
The rescue partnership
Many cat cafés work with a rescue group that supplies the cats and handles adoptions. Ask to read any written arrangement and find out whether it belongs to the business or to the current owner personally. Speak with the rescue yourself, with the seller’s permission. If the partnership ends at the sale, you may need new cats, a new partner and a new reputation.
Who owns and cares for the cats
Find out which cats belong to the business, which belong to the rescue and which belong to the owner or staff. Ask who pays for veterinary care, food and supplies, and who looks after the cats outside opening hours. Ask for health and adoption records. Have your lawyer say how ownership is dealt with in the sale agreement.
Two revenue streams
Admission or bookings pay for the cat experience, while food and drink pay for the café. Ask the seller to separate them in the records and to explain which drives the other. Check how reservations work, how far ahead they fill and whether a change of owner affects advance bookings. Read the financial statements with your accountant.
Insurance, staff and the health unit
- Ask the insurer what the policy covers when visitors are scratched or bitten, and whether it carries over to you.
- Ask whether staff are trained in cat handling, cleaning and noticing a stressed animal.
- Ask the local public health unit what it expects of a café where animals are present, and keep its answer in writing.
- Compare the food-service checks in our café due diligence guide.
Related reading
10 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 answerWhat should I check before buying a pet grooming business?
- Expert answerWhat should I check before buying a gift shop?
Selling
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 CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
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