Georgina Dawson had built Foxcroft and Ginger into a café brand that was recognised well beyond London. She also ran a bakery that supplied the business. Managing both demanded more time than she could give, so she decided to sell the Balham café and concentrate on her other business interests.
This is how that sale went: the café, the numbers, the lease, the marketing and what Georgina wanted from a buyer.
The sale at a glance
- Business
- Foxcroft and Ginger café, Balham, London
- Turnover
- £170,000 projected for the full year
- Estimated profit
- £20,000
- Market price
- £69,000 plus assets
- Premises
- Leasehold. Six years left on a seven year lease. Rent £18,000 a year, rising to £20,000 for the final two years. Deposit of two months' rent.
- Size
- 16 covers inside and 14 outside
- Team and systems
- Six staff, including a head chef and two supervisors. iZettle Pro for payments, KashFlow for accounts. Alcohol licence in place.
- Interest
- More than 40 interested parties
- Outcome
- Completed within six months of instruction, at the full asking price once it had been adjusted
The owner and what she wanted
Georgina wanted a swift sale and to recover as much of her investment as she could. She hoped to carry on supplying the café with her bakery products, and she cared about who would take the brand forward after the work she had put into it.
She had not sold a business before. She spoke to several agents and brokers, and she was uneasy about using one at all.
"Yes, I was sceptical, as I was going into the unknown."
Her reasons for choosing us were practical. She wanted someone who could sell the business and look after her through a process she did not know. She found the valuation realistic, and the marketing plan, together with Zach's experience, settled it. As she put it: "I did speak to other agents, but it was you. You were the most friendly and amiable person."
The café and its location
The café sits between Balham and Tooting Bec stations, on a long residential road with a hair salon, a gardening shop, an antiques shop, a pizza restaurant, a bakery and an estate agent. There is one hour of free parking outside and pay and display nearby. Balham itself has young couples, families and students, and a well known summer street fair takes place on the road.
The brand had traded from venues across London, including Soho, Whitechapel and pop-ups in Shoreditch, Old Street and Dalston. It won Best Independent Café from Cafelife Awards and Best Independent Sandwich Shop and Café of the Year from The Sammies. It had also been featured in publications including Time, Elle, The Times, the New York Times, the London Evening Standard, Good Housekeeping and GQ Italia.
The café itself offered brunch and lunch and ran as a turnkey operation with a full team. A buyer wanting to grow the brand had room to do so. Organic growth, Deliveroo and later opening for dinners were all possible.
The challenge
The relationship between the café and a separate bakery needs careful explanation. A buyer has to understand what they are acquiring and which supply arrangements need discussing. The sale also involved a leasehold property, which brought the landlord and his solicitor into the process. That stage can be complicated, and it needed careful work to protect Georgina's position.
If you are weighing up a café sale yourself, the questions a buyer tends to ask are set out on our page on selling a café.
How we prepared and marketed it
The first step was to agree a market price. The original asking price was set high and then adjusted once we had feedback from the market.
Before going to market we gathered all the documents and carried out much of the due diligence early. Our business questionnaire draws out the key details of a company, including a SWOT analysis, which helps shape the marketing strategy. A data room meant that when an interested party appeared, everything they needed was ready.
A marketing memorandum went on premium business-for-sale websites alongside our own, and the café was exposed discreetly. We also shot a video of the premises. The marketing produced more than 40 interested parties. Each one signed a non-disclosure agreement before receiving any detail.
"You must price the business realistically. Although it may be sensible to start at a slightly higher price to capture a keen buyer, there should be an understanding of a realistic market price. It's not the marketed price that's important but the sale price." Zach Dogar
Negotiation and completion
Brunch Bros LLP, a company looking to grow its brand across London, showed keen interest and negotiations began with them. Once terms were agreed in principle, Zach drafted the heads of terms and the matter passed to the solicitors.
Georgina used a recommended solicitor who has worked with Zach on many deals, which helped her complete swiftly.
The result
We sold the business within six months of being instructed, at the full asking price once it had been adjusted. Georgina was relieved that the process was quick and straightforward, and she trusted Zach to handle it.
In Georgina's words
What did you think at the start?
"Yes, I was sceptical, as I was going into the unknown."
Why did you choose us?
"I did speak to other agents, but it was you. You were the most friendly and amiable person."
How did you find the service?
"I found the service good, exactly as I imagined."
What did we do particularly well?
"I'm still not sure of the ins and outs. I left it to you to deal with."
Would you recommend us to anyone wanting to sell their business?
"Yes, I would."
Georgina Dawson, owner, Foxcroft and Ginger
If you are selling a café alongside another business
Be clear about where one operation ends and the other begins. Prepare the documents, explain any supply relationships and decide what matters to you in a buyer before negotiations start.
Fees are agreed individually, and any initial fee and completion fee are agreed with you before instruction.
Frequently Asked Questions
Thinking about selling your café?
Tell us about the business, what has prompted the conversation and what you would like to achieve.
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