Listing ID: 66944
The business is a fully equipped, old fashioned “Country Breakfast and lunch Café”. It is located in a town approximately 50 miles North of Seattle. The menu is typical American comfort food with a good selection of breakfast and lunch choices and daily specials. The atmosphere is busy fun and very “local”. The business owner is retiring and also owns the real estate and is selling both together.
- Asking Price: $650,000
- Cash Flow: $70,000
- Gross Revenue: $380,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $4,000
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:3,000
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
The restaurant seats up to 108 people in the dining area. The fully equipped commercial kitchen with class 1 exhaust hood is actually two hoods, one 12 feet long and another 5 feet long, for a total of 15 feet of cooking area. Under the hood system there is plenty of flat-top grill space and room to cook on. There is also plenty of commercial refrigeration including a 7’x10’ walk-in cooler.
Owner will train and help with transition
There are a number of restaurants, cafés and coffee houses in the area, however they each seem to have a steady base of customers. This restaurant is an institution in the area.
Like most restaurants, Covid forced a shutdown in 2020 and sales have been coming back to closer to normal in 2021
The company was founded in 2000, making the business 22 years old.
The deal doesn't include inventory valued at $4,000*, which ins't included in the listing price.
The business has 8 employees and is located in a building with approx. square footage of 3,000 sq ft.
Why is the Current Owner Selling The Business?
There are all types of reasons people resolve to sell companies. Nevertheless, the genuine reason vs the one they say to you might be 2 completely different things. As an example, they may say "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may simply be excuses to try to hide the reality of altering demographics, increased competitors, recent decrease in incomes, or an array of other factors. This is why it is really important that you not rely totally on a vendor's word, however instead, make use of the seller's solution in conjunction with your overall due diligence. This will repaint an extra reasonable image of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans with the purpose of covering points such as stock, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that earnings margins are too thin. Numerous organisations fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that must be satisfied or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in brand-new customers? Most times, businesses have repeat consumers, which create the core of their everyday profits. Particular aspects such as new competition growing up around the area, roadway building, as well as personnel turnover can influence repeat customers and adversely affect future profits. One crucial point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the better the possibility to construct a returning consumer base. A final thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Exactly how might the regional typical household income impact future revenue potential?