Advice needed! Buying a fish and chip shop

19
Found 27th Dec 2017
Hi

Hope someone can help. I’m looking to buy a chip shop. Turnover is around 5k per week, selling a mix of fish, chips sausages etc, as per normal chip shops but also selling kebabs, wraps and pizzas etc. Can anyone give me an idea how much my stock is going to cost per week? I know it’s hard to say and depends on what is sold etc but just an approximate figure would be helpful.

Thanks
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19 Comments
haven't you seen the books for the business you're buying? it will be in there.
5k a week sounds a hell of a lot of business for a food outlet. That’s 1/4 million pounds turnover a year.
You really need to get your hands on the books to determine actual turnover, gross and net profit.
Also, it’s not just the expense of the stock you have to consider, it’s also other expenses such as rent, business rates, staff wages, insurance, advertising, polystyrene boxes and wooden forks etc.
5k a week isn’t high if it’s in a city with good amount of people around it. I would say that it’s making a reasonable amount of money. If for example average expenditure is £10 per person and it’s open 6 days a week that’s 83 customers a day, remember that’s average, it could be 200 on a Friday, Saturday and a lot less other days or could be that families buy lots of fish and chips meaning a higher average spend meaning lower numbers as one person is buying £30 or £40 worth at a time.

Another thing to bear in mind is if the shop is well established and with a good reputation customers will be sensitive to any changes you make with the food, this can either improve it or immediately make customers stop coming!
Mandeepkaur17 m ago

I have verified sales by physically standing in the shop and adding up the …I have verified sales by physically standing in the shop and adding up the cost of every customers order. Their accounts are not accurate because they do not declare everything. Annoyingly, seems to be normal in the trade. Regarding other costs, I already know rent, rates, bills etc. Just need stock info. The owner is currently unwell and I am now dealing with his family and they don’t seem to know much...


ask them to show you the paperwork for the stock inventory. the fact that the owner is not available to talk to you doesn't sound great as you can't get at the costs.
I'm not entirely sure you joined the right website to give you an answer to this . I would have though a trade site would have been better, however the figures in the accounts are the ones you need . If they say they haven't declared all sales that's a bit of a red flag. Not just in terms of tax evasion but also you can't possibly get a clear indication of sales unless you plan to stand in the shop for a year. Seasonal variation could be huge. The business is only worth its provable figures. Even partial accounts should be able to give you stock costs though.
£300, all supermarkets own brands.
Have you spoken to your bank? They have M&A divisions which specialise in valuation and can help fill in missing bits on the balance sheet including your cost of goods
Thank you. Didn’t think of that!
tempt1 m ago

Have you spoken to your bank? They have M&A divisions which specialise in …Have you spoken to your bank? They have M&A divisions which specialise in valuation and can help fill in missing bits on the balance sheet including your cost of goods

Thank you. Very helpful. 😃
cmdr_elito18 h, 36 m ago

5k a week isn’t high if it’s in a city with good amount of people around it …5k a week isn’t high if it’s in a city with good amount of people around it. I would say that it’s making a reasonable amount of money. If for example average expenditure is £10 per person and it’s open 6 days a week that’s 83 customers a day, remember that’s average, it could be 200 on a Friday, Saturday and a lot less other days or could be that families buy lots of fish and chips meaning a higher average spend meaning lower numbers as one person is buying £30 or £40 worth at a time.Another thing to bear in mind is if the shop is well established and with a good reputation customers will be sensitive to any changes you make with the food, this can either improve it or immediately make customers stop coming!

Why would you trust any information about this from people on here? You're on the wrong website.
I think you need to do more research before buying your own business, you need to know where you are going to source your supplies from, once you know that you should be able to find out about prices of products.

It sounds like you're assuming you'll get all the info you need from the seller, which in most cases you can. But it's better to have an idea of what to expect before you start.
Mandeepkaur14 h, 26 m ago

Thank you. Very helpful. 😃


Remember to work out how many staff you will need and how many hours they will work and how much you will pay them per hour and add around 33% on top to take care of your employers NI and pension contributions. So if paying £10 per hour it’ll actually cost you £13.33 per hour. Another thing to bear in mind is food hygiene courses for staff normally £25-50 per staff member for basic one, I think these have to be renewed every few years. Get advice from the council environmental health team about what you need to do to achieve a 5 rating and ensure you embed this into your processes (there are some rules on storage of food but it’s mostly just keeping some simple paperwork/records in order). Councils publish food places rating on their website and people do look at it so worth getting it right.

Public liability insurance is a must.

Might be worth a look at this for you:

gov.uk/bro…ess
Edited by: "cmdr_elito" 28th Dec 2017
I agree, research is key and I have done quite a lot. The owner has in fact been very very accommodating. He has allowed me to attend daily for a whole month and is willing to do more. He has given me copies of all his bills, employee costs, VAT invoices, copy of lease. He has practically given me everything I have asked for with paper copies of proofs to secure a quick sale due to illness and because his accounts were not in order. He was going to provide his purchase invoices but then became very sick. I have dealt with family members since but they do not seem to know much about where they are kept.This is why I’m asking for approximate figures.
Bigfootpete4 h, 4 m ago

I think you need to do more research before buying your own business, you …I think you need to do more research before buying your own business, you need to know where you are going to source your supplies from, once you know that you should be able to find out about prices of products.It sounds like you're assuming you'll get all the info you need from the seller, which in most cases you can. But it's better to have an idea of what to expect before you start.

Thank you. I have been attending for a month to watch what they do and analyse their trade.
cainer11 h, 15 m ago

if you want to buy a fish & chip shop, you need to goto the fish & chip …if you want to buy a fish & chip shop, you need to goto the fish & chip shop shop

Do you know of any other sites? I can’t seem to find any. I just happened to come across another question on this site, asked by another user also looking to purchase a takeaway and thought maybe someone can help.
cmdr_elito3 h, 21 m ago

Remember to work out how many staff you will need and how many hours they …Remember to work out how many staff you will need and how many hours they will work and how much you will pay them per hour and add around 33% on top to take care of your employers NI and pension contributions. So if paying £10 per hour it’ll actually cost you £13.33 per hour. Another thing to bear in mind is food hygiene courses for staff normally £25-50 per staff member for basic one, I think these have to be renewed every few years. Get advice from the council environmental health team about what you need to do to achieve a 5 rating and ensure you embed this into your processes (there are some rules on storage of food but it’s mostly just keeping some simple paperwork/records in order). Councils publish food places rating on their website and people do look at it so worth getting it right.Public liability insurance is a must.Might be worth a look at this for you: http://www.gov.uk/browse/business



Thank you. Thus has been very helpful as it confirms that I am on the right track and haven’t missed anything. I already gave details of all the employees and how much they are paid including NI and tax. I am booked onto health and safety and food hygiene training in January with NFFF, who also provide training on the best ways to fry fish and chips, basic book keeping and lots of other useful stuff over the course of three days. Following this, they give you s one year membership free do that you can undertake further training where needed if you struggle. The current owner has a 4 star rating and have provided me with all the paperwork relating to this so I know what I need to do to maintain this and what needs improving to achieve 5 star rating which will be my immediate aim as I am aware that a visit from health inspectors will be imminent when there is a change of lease. I have already been quoted for public liability and employers liability as well as insurance for the contents in the shop. Thank you so much for your response. If you have any information relating to cost of stock that would be great!
cmdr_elito3 h, 21 m ago

Remember to work out how many staff you will need and how many hours they …Remember to work out how many staff you will need and how many hours they will work and how much you will pay them per hour and add around 33% on top to take care of your employers NI and pension contributions. So if paying £10 per hour it’ll actually cost you £13.33 per hour. Another thing to bear in mind is food hygiene courses for staff normally £25-50 per staff member for basic one, I think these have to be renewed every few years. Get advice from the council environmental health team about what you need to do to achieve a 5 rating and ensure you embed this into your processes (there are some rules on storage of food but it’s mostly just keeping some simple paperwork/records in order). Councils publish food places rating on their website and people do look at it so worth getting it right.Public liability insurance is a must.Might be worth a look at this for you: http://www.gov.uk/browse/business

In terms of stock a good place to start would be by talking to some wholesalers. You seem to have a good idea on what the shop does (sells) so write a list of items that are needed and talk to some wholesalers about pricing. For example buying cans of coke, probably worth buying them in 48 (2 trays) or 96 (4 trays) if they sell well, if not then smaller amounts. You also need to consider storage space if you don’t have a lot of space you are going to need to order more often than if you have lots of storage space.

Fish I would probably talk to a fresh fish supplier, many deliver but charge for this.

For other food items and even possibly fish, companies like Bidvest, bidfood.co.uk, Booker, makro are probably a good starting point. You may also have some good local wholesalers too, talk to Other local catering businesses (cafes etc who they use).

Once you have an idea of pricing for all your key items you just need to work out how many you sell per week and typical wastage, and that should give you an idea of stock cost.

Have you also had the shop checked for fire regulations compliance, fire blankets, fire doors etc and have a trained first aider, particularly in burns (not required by law but worth it) as that’s the most likely thing to occur in a chip shop.

Cctv is usually a good idea, particularly for your staff members safety and can be bought cheaply online and fitted yourself if you want to keep costs down.
There are dedicated magazines for the trade which can help you further your research, e.g. FryMagazine:

frymagazine.com/new…ies

Good luck with the venture, hope it works out. Once established, please do offer HUKD members special discounts.
cmdr_elito22 h, 51 m ago

In terms of stock a good place to start would be by talking to some …In terms of stock a good place to start would be by talking to some wholesalers. You seem to have a good idea on what the shop does (sells) so write a list of items that are needed and talk to some wholesalers about pricing. For example buying cans of coke, probably worth buying them in 48 (2 trays) or 96 (4 trays) if they sell well, if not then smaller amounts. You also need to consider storage space if you don’t have a lot of space you are going to need to order more often than if you have lots of storage space.Fish I would probably talk to a fresh fish supplier, many deliver but charge for this.For other food items and even possibly fish, companies like Bidvest, https://www.bidfood.co.uk, Booker, makro are probably a good starting point. You may also have some good local wholesalers too, talk to Other local catering businesses (cafes etc who they use).Once you have an idea of pricing for all your key items you just need to work out how many you sell per week and typical wastage, and that should give you an idea of stock cost.Have you also had the shop checked for fire regulations compliance, fire blankets, fire doors etc and have a trained first aider, particularly in burns (not required by law but worth it) as that’s the most likely thing to occur in a chip shop.Cctv is usually a good idea, particularly for your staff members safety and can be bought cheaply online and fitted yourself if you want to keep costs down.


Thank you so much for your advice. This will definitely come in handy! I haven’t thought to check fire regs, and will look into first aid training too! I think you’re right, looking at wholesalers is the only option for trying to get prices....thank you!
tempt22 h, 27 m ago

There are dedicated magazines for the trade which can help you further …There are dedicated magazines for the trade which can help you further your research, e.g. FryMagazine:http://www.frymagazine.com/news/post.php?s=2016-06-21-cost-wise&cf=homepage-extra-storiesGood luck with the venture, hope it works out. Once established, please do offer HUKD members special discounts.


Thank you! Will remember HUKD once established!! 😃
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