IN-STORE MULTI-SITE COFFEE DISPENSING MACHINES
Ref. CH139
Location Relocatable
Asking Price £1,575,000
Business Profile
Introduction:
The opportunity exists to acquire all the issued capital in two companies that own, install and operate some 204 self-service coffee machines in supermarket stores and independent convenience stores and retail outlets (together called “The Company”).
The Company has developed a highly successful business model and it has significant opportunity to be expanded nationally and to be rolled out internationally.
The Business
The Company is an established operation which started about 5 years ago and has developed a highly successful and proven hot drink offering. Each machine is branded and prominently displayed in its location.
The Company owns all of its “bean to cup” machines which are purchased from their manufacturer under a UK wide exclusive license arrangement. The coffee is selected, roasted and packed by the largest coffee provider in the country. The signature blend is selected by the Company and is unique to its machines.
The Company is a family business ultimately owned by a husband and wife team. The wife takes no significant part in the business and the husband is responsible for overseeing the management of the business.
The business is incredibly simple to operate. It employs 8 self-employed individuals for stocking the machines and 2 self-employed engineers. The engineers are responsible for repairing any faulty machines throughout the UK.
Each machine is telemetrically linked back to base so that they are monitored for unit sales and/or if they are running low on supplies or suffering a fault. If the machine is running out of supplies a call is made to the location and the in-store staff members do the refilling and re-stocking.
The company provides the machines installed to its customers and there is a revenue split. The company provides the stock. Stock deliveries are made by courier on an as-needs basis.
The machines are generally held with the Company’s clients on rolling four year contracts with the clients, which means that if the clients want to terminate then they have to buy out the remainder of the 4 year term.
The machines are on a 6 year replacement programme although when the machines are replaced they are recycled into other clients’ outlets. There is no scrappage of the existing fleet of machines, although there is a ready second-hand market.
