Listing ID: 66617
Business Overview
This business is a long standing, reputable, well-known restaurant that is located in a vibrant Seattle neighborhood. Approximately a decade old, the restaurant is a favorite dining destination for the locals as well as diners from across the region. The
restaurant is an intimate space that is known for its open kitchen and cozy dining environment where the sights, smells, and activities of the chef take center stage. The atmosphere in this gem feels more like eating in the home of a friend than a traditional dining out experience. The intimate dining space serves a menu of a thoughtful combination of Northwest fare and Mediterranean/Italian
favorites. The ingredients are always fresh and sourced locally. The menu is known for its small, sharable plates where everyone at the table gets to enjoy and experience the wonderful creations.
The restaurant is currently open five days a week (Wednesday through Sunday).
This restaurant is a pandemic success story. The management team was able to create a robust take-out and delivery program that the locals rallied around. A true testament to the lively neighborhood it resides in. There is a permanent, permitted, covered and heated outdoor seating area that has resulted in a significant improvement in the overall success of the location. It seats 24 and has been utilized year-round for the past two years. The 700 square feet inside dining area seats 26. The current lease is approximately $1,700 a month and runs through January 31,
2028. There is an option to extend for five more years.
A seasoned, well-trained staff is in place to oversee the day-to-day operations. Four full time employees included a Head Chef, a Sous Chef, a Line Chef, and a General Manager. Three part time (20-25 hours per week) include a dishwasher and two servers. The business operates presently with a largely absentee business model.
The lead business broker at IBA for this company is Andrea Lines. Ms. Lines can be contacted directly at (425) 454-3052 or andrea@ibainc.com.
Financial
- Asking Price: $300,000
- Cash Flow: $185,000
- Gross Revenue: $725,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $15,000
- Inventory Included: Yes
- Established: N/A
The seller will provide an appropriate transition training/consulting period to smoothly transfer ownership of the business.
Additional Info
The sale does include inventory valued at $15,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. Nonetheless, the genuine reason vs the one they tell you may be 2 entirely different things. For instance, they may say "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competition, current reduction in earnings, or an array of other factors. This is why it is really crucial that you not depend totally on a seller's word, yet instead, make use of the seller's solution along with your overall due diligence. This will repaint an extra realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses borrow money with the purpose of covering points such as supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can mean that revenue margins are too thin. Numerous organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be satisfied or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in brand-new clients? Many times, businesses have repeat customers, which form the core of their day-to-day earnings. Specific aspects such as brand-new competitors growing up around the area, road building, as well as staff turnover can influence repeat customers and also negatively influence future incomes. One important thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the better the possibility to develop a returning client base. A last thought is the general location demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Just how might the local median house earnings influence future revenue potential?
