| Buying a café, whether it is in the heart of bohemian Soho or in the heart of a tourist destination such as York, is for many people the distillation of what they are looking for in their own business. It can be a combination of restaurant, coffee or tea shop, and pub, depending on exactly the sort of market and menu you aim for. While the popular image might be that traditional ‘greasy spoon' cafés and tea shops are now redundant, due to be replaced by trendy coffee bars serving cappucinos and lattes, the reality is that the traditional business is still going strong and represents the mainstay of the market.  | | TRADITIONAL CAFES ARE STILL POPULAR | Tony Franklin, Regional Director of Redwoods, explains: "People often say that fish and chip shops and 'greasy spoons' are on the way out. They are not as far as I'm concerned. 'Greasy spoons' are as popular as ever." "Tea rooms are generally the easiest to sell, although they are the least profitable. A lot of people just go in for a cup of tea and a cake, whereas it's easier to make money if you are selling eggs, chips and the works. It's a good idea to sell food, and not just have people sipping drinks." Seasonality is important He adds, however, that this is all dependent on location. A tea room in rural Norfolk might struggle, whereas one in Stratford-upon-Avon would be "an absolute goldmine." It is important to consider seasonality as well, especially if you are looking at coastal towns or tourist hotspots. Cornwall might look thriving in the summer, but resorts such as St Ives can become ghost towns come the winter months. While specialist coffee shops might work in Soho, or even in towns such as Ipswich or Colchester, they are unviable outside the main centres as turnover will be insufficient to compensate for the expense of the lease and the coffee-making equipment. Providing food in the evening could be an option if the café is in a prime town location, a student or young professional area, or even near to a shift-working factory. As always, it is important to tailor your menu to the market – there is no point in offering ciabattas if your customers want fry-ups. Lifestyle is a vital consideration. For example, if you are running a profitable venture which depends on breakfast, early starts will be part of the job. Deciding to open for dinner too – which is when a drinks licence could be a definite bonus – means that a long and stressful day is going to be on the agenda. Some operations could open at 7am and run until three or four in the afternoon, and then open later in the evening for a second shift. Of course, the exact times you open will depend on the area you are based in and the resident population. "It's hard work – you need to cook commercially," he says. "If you want to employ someone to cook for you, that will immediately cut into your profit margins." He adds that if you are pitching for the top end of the market, experienced catering staff can be difficult to manage. So why, given the stresses of the job, would you choose to do it? Lucrative industry Firstly, it can be surprisingly lucrative. Franklin gives the example of a café on the North Norfolk coast which provides food throughout the day. The leasehold is valued at around £100,000 - but the business, which is just a husband-and-wife operation makes a net profit of £70,000 per annum. Of course, not all cafés will be as streamlined or as popular as this, but it gives you an idea of what can be achieved given the right location and the requisite energy levels. Strangely though, it may sometimes be more difficult to sell businesses that are performing well. There is a severe lack of freeholds in the sector, and many prospective owners balk at the idea of paying over £100,000 for a lease, particularly if half of that has to be available up front. This is a problem when leases in more popular locations can be worth several times this – although given the right market, there is serious money to be made. This is especially true if you can turn around an underperforming business – although bear in mind that extra investment in equipment and decoration may be necessary. Ultimately, the real reason to enter this type of job is that you will be in contact with customers throughout your day. As Franklin says, "You have got to be a sociable person. If you don't like people, there isn't much reason to do it."
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