Listing ID: 66938

Business Overview

This is a very popular full-service European style restaurant where locals and tourists have been relaxing and enjoying meals and spirits for over 29+ years.

Financial

  • Asking Price: $789,000
  • Cash Flow: $271,000
  • Gross Revenue: $990,765
  • EBITDA: N/A
  • FF&E: $60,000
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: 1992

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Over 1,500 square feet of useable space including outdoor patio area.

Is Support & Training Included:

The restaurant currently serves European style breakfast and lunch meals.

Purpose For Selling:

Owner wants to retire.

Pros and Cons:

Competition is strong, as would expected in a Southern California beach community.

Opportunities and Growth:

Add a happy hour and/or a dinner menu and revenues will certainly soar.

Additional Info

The company was established in 1992, making the business 30 years old.
The sale will include inventory valued at $5,000, which is included in the suggested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals resolve to sell businesses. Nonetheless, the real factor vs the one they say to you may be 2 completely different things. For instance, they might claim "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may simply be reasons to attempt to conceal the reality of changing demographics, increased competitors, current reduction in incomes, or an array of various other reasons. This is why it is extremely crucial that you not depend completely on a vendor's word, however rather, make use of the seller's response combined with your general due diligence. This will paint a much more sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Many companies take out loans with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can suggest that earnings margins are too small. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be met or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in new clients? Often times, businesses have repeat consumers, which form the core of their daily revenues. Specific elements such as new competition growing up around the location, road construction, and employee turn over can influence repeat clients and also negatively influence future earnings. One vital point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the higher the possibility to develop a returning consumer base. A last idea is the general area demographics. Is the business located in a largely inhabited city, or is it located on the edge of town? How might the regional average family earnings influence future income prospects?