What should I check before buying a coffee trailer business?
Check the equipment under load, the power and water systems, whether the tow vehicle is included, and which events and pitches the sale actually carries over. Then confirm the brand, social accounts and supplier relationships come with the business, and have a lawyer and accountant review the paperwork.
A coffee trailer looks simple from the outside: a counter, a machine and a queue. What you are really buying is a small set of equipment, a set-up that has to run away from a building, and a calendar of places to park. Each of those can hide a problem. Go through them one at a time, and ask the seller to show you the business on a working day, not only on paper.
The coffee equipment and the power behind it
Watch the espresso machine and grinder run through a full service, not a single test shot. Ask how old each piece is, who services it and what it has needed lately. Then look at what feeds it: a generator or an inverter, and whether the machine strains it when the milk steamer and grinder run together. Ask about the cold storage for milk, and how the seller keeps it cold at a long event.
Water, the trailer and the tow vehicle
Look at the fresh and grey-water tanks, the pump, the sinks and any leaks or staining. Have a mechanic check the trailer frame, axles, brakes and tires. Ask plainly whether the tow vehicle is part of the sale. If it is not, work out how you would move the trailer on day one, because a trailer you cannot tow is a very large shed.
Events, pitches and what passes to you
Much of a mobile coffee business is its calendar. Ask for the list of regular pitches and booked events, and who holds each arrangement: the owner personally or the company. Some depend on a relationship with an organizer, a host or a market manager. Ask whether those people will deal with you, and have your lawyer confirm which permits and agreements can be transferred. Local rules differ, so do not assume.
Brand, accounts and suppliers
A following is worth protecting, so confirm the name, logo, social accounts, booking inbox and any website are transferred to you. Ask which roaster and milk supplier the owner uses and whether those terms continue. If you want a fixed spot instead, read how to buy a coffee kiosk or drive-through stand for the differences.
- Run the machine through a full service before you agree to anything.
- Get written confirmation of what is included: trailer, tow vehicle, equipment, stock, accounts.
- Ask which pitches and events are in the owner’s name.
- Ask for the insurance history and any claims.
Related reading
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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 CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
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