Recently, Sinosmart Business Brokers has been marketing a supermarket business specialising in fresh fruit and vegetables, located in a Chinese community area in Sydney’s Inner West.
From a broker’s perspective, this is a business that looks quite appealing on paper. The rent is relatively low, gross margins are stable, and staffing is straightforward. The owner has operated the business for many years and refined it into a highly systemised, easy-to-operate operation. Most daily processes are already standardised, meaning a new buyer can take over with minimal disruption.
When the financials are reviewed, the numbers are solid. This is not a high-risk, high-reward business that promises overnight riches, but rather a steady and reliable operation that generates consistent cash flow — the kind of business that lets an owner sleep well at night.
Initially, we assumed the main concern for buyers would be sourcing produce from Sydney’s Flemington Markets: early mornings, negotiating with wholesalers, and the physical demands that come with the trade. However, as buyer enquiries came in, it became clear that this was not the real issue.
What buyers cared about most was foot traffic.
Compared with several supermarkets on the main street, this shop is positioned slightly further inside the area. Naturally, foot traffic is not as busy. Many prospective buyers would glance around briefly and ask, “Why are there so few people?” — as if a business should be judged by what can be seen at a glance, rather than what is proven in the accounts.
This reaction is understandable. Busy streets create a strong visual impression, and it is easy to associate crowds with strong sales. Meanwhile, a quieter location can feel misleading, even when actual turnover is healthy.
To address this, we encouraged interested buyers to observe the business across multiple visits and at different times of day, so they could better understand real trading conditions. Even then, the feedback was often the same: competition feels strong, foot traffic seems average, and confidence remains limited.
From our side, the reality is quite clear. The shop is only around 200 metres from the local commercial centre, yet benefits from significantly lower rent. Reduced foot traffic is simply the trade-off for that rental advantage. What truly matters is whether the revenue is genuine and whether the profits are sustainable. These are questions that cannot be answered without proper observation and due diligence.
Caution is, of course, reasonable. Buying a business is not a gamble, and scepticism is healthy. What is becoming increasingly rare, however, is the willingness to spend time validating the data.
We asked several potential buyers directly whether they had spent time observing the business or reviewing the figures in detail. In most cases, the answer was no.
Understanding that buyers may not always have the time to do this themselves, we took additional steps. We extracted turnover data from selected time periods, and the owner was willing to provide access to CCTV footage so buyers could randomly cross-check transactions. The information was made available, and the path was clearly laid out — yet very few buyers chose to take that extra step.
Instead, many preferred to ask around and rely on second-hand opinions, as if business value is driven by market gossip rather than cash flow.
This pattern is not unique to this supermarket. We have seen similar levels of enquiry for recently listed fish-and-chips shops and Chinese restaurants. On one hand, this reflects a shift within the market: buyers are aiming higher, chasing larger operations, stronger branding, and bigger growth stories. On the other hand, it also suggests that fewer people are willing to operate smaller, steady businesses that generate consistent income.
This trend is not limited to the Chinese community. Indian and Middle Eastern buyers are showing similar behaviour. Everyone is chasing scale, trends, and narratives. Small businesses can feel unfashionable — like turning up to a product launch in slippers. Not glamorous, perhaps, but undeniably comfortable.
Times are changing. Buyer expectations are changing. Even the way people evaluate businesses is changing.
Occasionally, we reflect on this: if more buyers focused on understanding the numbers rather than listening to rumours, the market might become quieter, calmer, and more grounded. After all, businesses survive on their financials — not on opinions, impressions, or social media validation.
