Why check a food counter’s menu board and combo mix before buying?
The menu board and combo mix show what customers actually buy and how the kitchen earns from it. Ask which combos sell most, what each costs to make and how complicated the menu is. A long menu with a few real sellers is a different business from a short one with steady favourites.
Ask the seller for sales by item and combo, then compare what is on the board with what actually sells. Some counters carry many items that few people order. Those cost money in stock and prep time without bringing much in. Ask which items were added recently, and which were removed, and why.
Look at the combos closely. A combo can look cheap to the customer and still protect the margin, or it can quietly give margin away. Ask for the cost of the main items and see how drinks and sides are priced. Your accountant can help you compare the menu costing with the financial statements, so you know the costing is realistic.
Finally, think about whether you could run the menu. How many separate stations are needed? Which items rely on special equipment or one cook’s skill? Ask the seller whether suppliers and labels are documented. Check with the proper food authorities, and the seller’s records, about any menu claims or licences, and about what carries over to a new owner. Ask whether specials or limited-time items have helped traffic, or just added complexity for the kitchen.
Key takeaways
- Compare the menu board with sales by item and combo.
- Ask what each main combo costs to make.
- Find out which items need special skill or equipment.
- Ask which menu changes were made recently and why.
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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 CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
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