What should I check before buying an office coffee service business?

An office coffee service delivers coffee, supplies and often the machines to workplaces on a route. It is closer to a delivery business than a cafe. Most of what you are buying is a set of client accounts, the equipment sitting in their offices and a supplier relationship, so check those three things before you look at anything else.

Client agreements

Ask for every client agreement and read how long it runs, how it renews and whether it can be assigned to a new owner. Note which clients buy only coffee and which also rent equipment or buy other supplies. Ask which accounts are largest, who deals with each one, and whether any have said they might change providers. Your lawyer can tell you whether a client has to agree to the change.

Equipment at client sites

Brewers and water units are placed at client offices. Find out which are owned by the business, which are loaned and which are leased from a third party. Ask for a list by client site, with the age and condition of each unit, and check whether any lender has a security interest in them. Equipment owned by someone else may not be part of the sale; confirm this with your lawyer.

Supplier, routes and demand

Read the roaster or supplier terms, including whether they depend on the current owner or limit where you can buy. Look at the route plan and the delivery vehicles and ask how the owner schedules visits. For demand, ask how the business tracks client headcount and orders, and how it responds when an office shrinks or moves. Treat those as things to confirm in the records, not as assumptions.