Listing ID: 67371
This well-established, family oriented casual restaurant continues their tradition of maintaining a strong customer base with a very positive growth trajectory. Well positioned geographically the facility has a strong reputation and a great image in the community they serve. And they have been serving that customer base over 15 years and continue to perform even in these challenging times. Operating in 5,000 square feet the restaurant has an exquisite menu with something for everyone. A sports bar, entertainment venue, and finely prepared food has kept customers coming back over 15 years. The same owners are in place since inception, and they continue to perfect their winning formula. They started this facility with the desire to offer up a casual atmosphere and a place to relax and meet with family and friends and at the same time have the opportunity to enjoy meal preparation that regulars will say is second to none. One clear measure of success in this business category is a review of financial performance. Since inception the restaurant has enjoyed sustained incremental growth, achieving a Gross Revenue of $845,000 in 2018 and accelerating to $899,000 in 2019. And now finishing 2021 at $1,218,000. The business performance is grounded in practicality and well-prepared food made from quality ingredients served in a pleasing and comfortable atmosphere by a wait staff aiming to please. Couple that with entertainment, a stand-alone billiard room, activities, and a surround of televisions with well prepared food. These owners have created a desirable atmosphere with well-prepared dishes that keeps customers coming back.
- Asking Price: $195,000
- Cash Flow: $237,310
- Gross Revenue: $1,218,259
- EBITDA: N/A
- FF&E: $75,000
- Inventory: $7,000
- Inventory Included: Yes
- Established: 2005
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
Will train for 2 weeks @ no cost.
The venture was started in 2005, making the business 17 years old.
The transaction does include inventory valued at $7,000, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people resolve to sell operating businesses. Nonetheless, the genuine factor and the one they say to you may be 2 completely different things. As an example, they might say "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may simply be justifications to attempt to conceal the reality of altering demographics, increased competitors, current decrease in profits, or a range of other reasons. This is why it is very essential that you not count absolutely on a seller's word, however rather, utilize the vendor's solution combined with your general due diligence. This will repaint an extra realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies borrow money with the purpose of covering things such as supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that revenue margins are too small. Many companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area draw in brand-new clients? Many times, businesses have repeat clients, which create the core of their daily revenues. Certain variables such as new competition sprouting up around the area, road building and construction, and personnel turn over can affect repeat consumers and also negatively affect future revenues. One important point to think about is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business often, the better the opportunity to develop a returning client base. A last thought is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? Exactly how might the neighborhood mean household earnings effect future earnings potential?