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Coffee Houses/Shops Business Valuation Formula:

This is a general business valuation formula or method for coffee businesses based on a percentage of annual gross revenues that can be used to help determine an approximate value and asking price to market an existing coffee house/cafe business for sale.

Coffee House Business Valuation Formula: Approximately 45 to 50% of annual gross sales.

Broker Comments: It's been my experience as an Arizona Business Broker for over a decade that coffee businesses tend to support higher valuations than the average fast food restaurant. One of the main reasons being is that coffee drinks in general can offer much higher profit margins to business owners compared to other prepared food products. Coffee houses or shops also generally dont have as many employees as restaurants, are comparatively easy to operate, and are viewed as an attractive “lifestyle” business which makes them very popular with many first time business owners. Independent coffee houses also tend to be much more sought after than franchises.

Need a business valuation or appraisal report for legal, personal, or selling purposes? Request a free & confidential preliminary business valuation consultation about your established coffee business here.