You want to sell your coffee bar? Then it's good to know what the takeover market in the coffee bar field looks like.
Coffee bars fall under eating and drinking establishments, according to the Central Bureau of Statistics. With small differences, the number of acquisitions has been stable for several years, but currently the industry is under stress.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the hospitality, tourism and leisure sector - to which a coffee bar belongs - an indicative range of EBITDA multiple of 2.9 to 4.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the Hospitality, Tourism & Recreation sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Hospitality, Tourism & Recreation sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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Research by ABN Amro has shown that spending on food has declined recently, but that in itself is not surprising given the global pandemic. We had more home deliveries, but for obvious reasons we didn't go out to eat and therefore didn't get coffee on our way to work, as we were forced to work from home.
What does the sector look like? There are a total of 68,830 food and beverage outlets operating in the Netherlands in 2024, according to CBS, of which:
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes over the next few years, but also offer coffee bars many growth and acquisition opportunities:
Emerging in 2020, but definitely here to stay: the dark kitchens. If you have a catering establishment, or specifically a coffee bar, then delve into fresh produce delivery. According to FoodYard (initiative of BidFood), this is not the only bright spot.
The Dutch are still among the top five coffee drinkers worldwide. We drink an average of 4.1 cups per day, so it's very unlikely that we'll neglect coffee. New delivery methods are developing because of this. Think of a coffee bar where coffee is poured by robots, delivery by a drone and self-tapping using Internet of Things, according to the Coffee Industry Report 2020.
Local coffee shops will become increasingly important. This seems like a step back in time, but nothing could be further from the truth. We are going massively for sustainability and investing in our own community. What better way to do that than to connect with the corner coffee?
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