Why does a bubble tea shop’s student crowd matter when buying?
A student crowd rises and falls with the school calendar, so the shop’s weekly sales can look very different in term time and on break. Find out how reliable the nearby schools are as customers, how sensitive they are to price, and how much the staff rota also depends on students.
A shop beside a campus or high school can do well on the lunch and after-class rush and then go quiet over breaks and holidays. Ask for sales by week and line them up with the school calendar. Note what happens on exam weeks, reading weeks and the start of term, when habits change.
Ask who the customers are. Students often buy often but spend carefully, and they respond to loyalty cards, bundles and price changes. Find out whether the shop depends on one school, and whether anything could shift that, such as a building project, a changed schedule or a new rival closer to the gates. Walk the area at different times to see where students gather.
Staff are often students as well, so ask how the shop covers shifts during exams and breaks, and how easily it replaces people who leave. If any staff are international students, ask the seller to explain how their work arrangements are checked, and ask your lawyer to confirm what applies to you as a new owner. Ask also whether the shop sells well to non-students, such as nearby workers or families, since a mixed crowd softens the swings of the school year.
Key takeaways
- Line up weekly sales with the school calendar.
- Check how dependent the shop is on one school.
- Ask how price changes and loyalty offers affect student traffic.
- Ask how shifts are covered when staff students are away.
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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?
- 03Statistics CanadaResearch dataMonthly survey of food services and drinking places
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