Stylish, Profitable Coffee Shop in the Kansas City Metro for Sale

Excellent Growth Opportunity - KC Midtown Coffee Shop

The Company is an 18-month-old, profitable and growing Coffee Shop located in Kansas City, Missouri. The Company serves the area with coffee, tea and handmade baked goods, in a bright gathering space with stylish indoor and outdoor seating. The Coffee Shop also offers an event space and catering to parties of up to 50 people. Shares are 100% owned by the Founder.

Founded in October of 2022, the Company reported $99,918 in sales its first full year. Pro forma adjusted Earnings Before Interest Taxes and Depreciation (EBITDA) was $9,040, implying an EBITDA margin of 9%. This exceeds the average industry EBITDA of 4% for coffee shops by a factor of 2.3x. The first four months of 2024, the Company has realized $45,301 in revenue, PF EBITDA of $11,877, and PF EBITDA margin of 26%. Forecasted revenue for 2024 is on track to reach $126,000, with an EBITDA of $33,000, or 26%. This strong fiscal performance is especially impressive given that the Company has just completed its first 18 months of business.

The Company has served over 19,000 customers in its first 18 months, with an average customer spending $11.40 per visit. The Company has built a loyal following with 170 customers visiting 10 or more times in the first 18 months and comprising 21% of revenue. Another 1,075 customers have visited from 2 to 9 times, comprising 18% of revenue. Therefore, total Loyalty revenue comprises 39% of sales. The Company offers a loyalty program which is heavily utilized by a subset of its customer base. The Company has attracted and retained this group of customers with its focus on high-quality coffee and foods, its commitment to excellent customer service, and its desirable location.

The Coffee Shop is located in a 2,308 square foot unit of a multiple tenancy brick building. The building is an all brick 2-story building with a tile roof. Another tenant occupies the upper floor, while the Company occupies the street entrance on the main level. The Company’s rented space also includes an adjoining patio area, which provides over 1,000 square feet of outdoor seating. The building consists of a large kitchen, 2 restrooms, office space, serving area and counter, and the main seating area which can accommodate up to 25 patrons. The patio provides seating for an additional 25 customers.

After nearly two years of owning and managing the business, the Owner is seeking a full sale of the Company in order to: 1) relocate to be near family 2) allow for a smooth transition of managerial responsibilities to the Company’s management team; and 3) position the Company to pursue a number of excellent growth opportunities through a strategic and financial alignment with an appropriate ownership entity.