Business Overview

3,600SF Restaurant space with recent renovations. Spacious dining room with 2 private rooms, separate bathrooms, and large kitchen. Kitchen has 6×6 walk-in freezer and 16ft type 1 hood. Dishwasher is leased. High visibility from main road and has monument sign. Ample parking and great location along very busy road. Rent is approximately $23 PSF + approx. $7 NNN. 7 Years left on lease plus two 5-year options. Business in operation, please do not disturb tenant. Must schedule all showings with listing broker.

Financial

  • Asking Price: $230,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell businesses. However, the true reason and the one they tell you may be 2 completely different things. For instance, they may state "I have too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be excuses to attempt to hide the reality of altering demographics, increased competition, current decrease in incomes, or a range of various other reasons. This is why it is extremely crucial that you not count completely on a vendor's word, yet instead, make use of the seller's solution along with your total due diligence. This will paint a more practical image of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Many businesses borrow money so as to cover points such as supplies, payroll, accounts payable, etc. Bear in mind that occasionally this can suggest that earnings margins are too tight. Lots of organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area draw in brand-new customers? Often times, businesses have repeat clients, which develop the core of their daily revenues. Particular variables such as brand-new competition sprouting up around the area, roadway building, and also employee turnover can affect repeat consumers and also adversely impact future profits. One important thing to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business often, the higher the chance to construct a returning customer base. A last thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Exactly how might the regional typical household earnings impact future revenue prospects?