Buying a bar or café: the hidden costs nobody mentions
Introduction
The advertised price for a bar or café for sale represents only part of the real investment. Many buyers discover too late the hidden costs that add up after signing: facilities to bring up to standard, licences to renew, stock to replenish, staff to stabilise.
These unforeseen expenses can represent 20 to 40% of the initial purchase price. They transform an apparently affordable acquisition into a financial black hole. The seller does not always mention them deliberately. Sometimes, they do not even know about them themselves.
This guide details the most common hidden costs when taking over a catering establishment in Switzerland. You will find the expense items often underestimated, the regulatory pitfalls to anticipate, and the questions to ask before committing. The objective: avoid unpleasant surprises and calculate your total investment realistically.
If you are looking for a bar or café to take over, this reading will save you time and potentially a lot of money.
📌 Summary (TL;DR)
Taking over a bar or café costs much more than the purchase price. Sanitary and technical compliance upgrades, licence renewals, working capital, stock, staff and contingencies often represent an additional 20 to 40%. These hidden costs also include repositioning marketing, specific insurance and real operating costs. A rigorous assessment and precise questions to the seller allow these expenses to be anticipated and unpleasant financial surprises to be avoided.
📚 Table of contents
Compliance and renovation costs
The apparent condition of a bar or café does not always reflect the reality of the installations. Ventilation and extraction systems, often outdated, require costly replacements. The kitchen must comply with HACCP standards: professional equipment, washable surfaces, separation of zones.
Toilets and accessibility for people with reduced mobility are strict control points. Budget between 15,000 and 50,000 CHF depending on the scope of the works. Previous owners have sometimes deferred these investments to maintain apparent profitability.
Practical advice: Have the installations audited by a technical expert before signing. This investment of a few hundred francs can save you tens of thousands of unforeseen expenses.
Licences and authorisations: more complex than it seems
The operating licence (patent) is not automatically transferable during an acquisition. Each canton applies its own rules and the municipal authority assesses the new buyer. Costs vary from 500 to 3,000 CHF depending on the region.
Processing times extend from 2 to 6 months. A criminal record that is not clean or the absence of mandatory training (food hygiene, alcohol service) can lead to refusal. Some cantons require certified training before operation.
These training courses represent 1,000 to 2,500 CHF and several days of courses. For legal support, consult our network of partner experts specialised in business transfers.
Real operating costs
Sales documents often present optimistic costs. The daily reality of a café or bar reveals higher recurring costs: energy (electricity, gas), water, waste, equipment maintenance, subscriptions (music, TV, till software).
Maintenance contracts for professional equipment (coffee machine, refrigeration, industrial dishwasher) represent 3,000 to 6,000 CHF annually. Without these contracts, a breakdown can immobilise the business for several days.
Add bank charges on card transactions (1.5-2.5% of turnover), SUISA licences for music, and subscriptions to delivery platforms if applicable.
Rent and ancillary charges
The advertised commercial rent represents only part of the real cost. Common charges (heating, cleaning, lighting of common areas) add 20 to 40% to the base amount. The deposit generally equals 3 to 6 months' rent, or 15,000 to 30,000 CHF immobilised.
Check the lease revision clauses: some contracts provide for automatic increases every 3 or 5 years, indexed to inflation. The remaining duration of the lease is crucial: less than 3 years without renewal guarantee represents a major risk for your investment.
Stock and turnover
The cost of taking over stock is negotiated separately from the purchase price: budget 10,000 to 30,000 CHF for an average establishment. Beware of expired stock, opened bottles, or products unsuited to your concept.
The rapid turnover of fresh produce requires constant cash flow. Losses due to breakage, expiry dates and ordering errors represent 3 to 8% of food turnover. In the first months, you will also need to establish your own relationships with suppliers, sometimes on less favourable terms than the predecessor.
Staff: between continuity and renewal
In Switzerland, taking over an establishment often involves taking over existing staff according to the law on business transfers. You inherit contracts, negotiated salaries and social obligations (15 to 20% of gross salary in employer contributions).
The major risk: the departure of key employees after the transfer. The loss of the experienced barista or head chef can immediately affect quality and reputation. Budget for recruitment and an adaptation period of 3 to 6 months.
Recommendation: Meet the team before purchase. Assess their motivation to stay and their compatibility with your vision. Training costs for new staff can reach 5,000 to 15,000 CHF.
The invisible costs of starting up
The acquisition is only the beginning. The first weeks reveal post-acquisition expenses rarely anticipated: changing locks and codes, updating computer systems, new uniforms for staff, printing new menus and business cards.
Notarial and legal fees for the transfer represent 2 to 5% of the purchase price. If you modify the layout or decoration, even slightly, add 10,000 to 25,000 CHF. These "small" adjustments accumulate quickly and can represent 15 to 20% of the initial budget.
Marketing and repositioning
Announcing the takeover requires a communication budget of 5,000 to 15,000 CHF: new visual identity, redesign of social networks, updated website, launch event. Even if you keep the concept, customers need to know that a new owner guarantees continuity.
The transition often causes a temporary drop in attendance: regulars wait and see, some disappear. This observation period generally lasts 2 to 4 months. Plan promotional actions to reassure and attract: tastings, themed evenings, loyalty offers.
Insurance and guarantees
Professional insurance is mandatory but often underestimated in business plans. Public liability insurance covers damage caused to third parties (food poisoning, accident on the premises). Contents insurance protects your equipment and stock.
Add legal protection and business interruption insurance (essential in case of forced closure). The total annual cost varies from 3,000 to 8,000 CHF depending on size and location. These amounts rise quickly if you serve alcohol late at night or organise events.
Working capital and contingencies
The classic mistake: investing 100% of your capital in the purchase. You must keep a cash reserve equivalent to 3 to 6 months of fixed costs, or 30,000 to 60,000 CHF for a small establishment. The first months often show underperformance compared to projections.
Equipment breaks down at the worst moment: coffee machine, cold room, professional dishwasher. An urgent repair costs 2,000 to 8,000 CHF. Without a contingency budget, you risk compromising business continuity.
To estimate the real profitability of an opportunity, use our valuation tool. Never rely solely on the figures presented by the seller.
How to anticipate these costs before purchase
Thorough due diligence is your best protection. Demand 3 years of detailed accounts, not just tax returns. Visit the establishment during peak and quiet hours to assess the real customer flow. Talk to suppliers, neighbouring traders, the property owner.
Call on an expert: a fiduciary or M&A adviser specialised in catering will detect accounting inconsistencies and hidden risks. Leez gives you access to a network of qualified partners to support you through this crucial stage.
Never rely solely on the seller's figures. Ask for supplier invoices, bank statements, staff contracts. This rigour will save you costly disappointments. Also consult the current opportunities to compare market prices and conditions.
Taking over a bar or café represents a much larger investment than the simple purchase price. Hidden costs accumulate quickly: compliance upgrades, licences, renovations, initial stock, working capital. Without rigorous analysis, these unforeseen expenses can compromise the viability of your project.
The key to success lies in anticipation. Visit the premises several times, examine existing contracts, check the real condition of equipment and build up sufficient financial reserves. Do not hesitate to seek the expertise of a fiduciary or specialised adviser to validate your calculations and secure your takeover.
Are you looking for a bar or café to take over in Switzerland? Consult the establishments available on Leez and access verified financial information to prepare your acquisition with complete transparency. A well-prepared project is a project that lasts.
