Listing ID: 67545
Dine In and Carry out Chicken & Seafood Restaurant
Motivated owner of an award winning dine-in and take-out restaurant in southeastern Virginia want to retire. Online ordering has increased significantly and still with room for additional growth. Delivery service utilizes Door dash, Postmates and Grubhub to its online and call-in customers. Owner is willing to train for 4 weeks and pass along their award-winning special recipe of its famous chicken sandwich. Restaurant comes very well equipped. It is in a historic district blocks of a major university and regional hospital. Enormous growth potential for new owners with online marketing.
Key Investment Considerations:
• Gross Revenue of $460,929.00 in 2020(11/30/20)
• $93,300.00 in Seller Discretionary Earnings in 2020 (Tracking)
• FF&E: $83,311.00 included in sale price
• Semi-absentee business operation
• Reason for sale: Retirement
• Continue revenue growth each year.
• Turn-Key operation
• Seller is willing to train for 4 weeks after closing.
• Pandemic proof restaurant model with opportunities to grow.
* As always brokers please bring your qualified buyers
- Asking Price: $120,000
- Cash Flow: $93,300
- Gross Revenue: $502,728
- EBITDA: N/A
- FF&E: $83,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell operating businesses. However, the real reason and the one they say to you might be 2 completely different things. For instance, they may state "I have too many other obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might simply be reasons to try to conceal the reality of transforming demographics, increased competitors, current decrease in revenues, or an array of other factors. This is why it is really vital that you not count totally on a seller's word, but rather, make use of the seller's answer combined with your total due diligence. This will repaint a more reasonable image of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses finance loans in order to cover points like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that profit margins are too thin. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that must be met or may result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area attract brand-new clients? Many times, businesses have repeat consumers, which create the core of their day-to-day profits. Particular elements such as new competition sprouting up around the location, roadway construction, and staff turnover can affect repeat consumers and also adversely influence future revenues. One important point to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more people that see the business on a regular basis, the greater the opportunity to construct a returning client base. A final thought is the basic area demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? How might the neighborhood typical household earnings influence future income potential?