Business Overview

A rare opportunity to buy an established & profitable restaurant in the heart of 6th Street and be part of the scene of Austin life.

A simplified menu keeps margins in control and alcohol makes up approximately 30% of the sales.

2021 saw a nice bounce after Covid restrictions were eventually eased and 2022 appears to be even better.

2021 $5MM in sales and approximately $1MM in SDE. 2022 net profits are projected to be over $1.25MM

This is a two location package with one on 6th Street and the other in central Austin.

The leases on both locations is favorably negotiated by the owner with options available for the next 13 and 18 years. Rent makes up 5% of the gross sales, so if the Buyer were to get bank financing, there is room to service the debt and make a good profit.

Someone with experience in the industry can get this at a fair value and be the new owner and own a slice of 6th Street. Seller financing is not anticipated, therefore, we are seeking a well-qualified party. A financial statement from prospective Buyers will be requested before discussing the business.

Financial

  • Asking Price: $4,000,000
  • Cash Flow: $984,400
  • Gross Revenue: $4,960,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $15,000
  • Inventory Included: N/A
  • Established: 2009

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:8,500
  • Lot Size:N/A
  • Total Number of Employees:24
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

2 location package with same concept. Bar/Lounge and restaurant on 6th street. The second location opened in 2019 and expected to gross $1,500,000 + in 2022

Is Support & Training Included:

4 weeks or as needed

Purpose For Selling:

Other businesses to attend to.

Pros and Cons:

2022 Sales are projected to be substantially higher than the previous year. Working with basic food items, the establishment offers different menus in a creative way. Owner has negotiated excellent long term lease terms and 5% of the gross sales cover lease expenses. Experienced team in place and all key employees will continue on for the new owner(s).

Opportunities and Growth:

Excellent offering with a good ROI. Minimum owner time is required.

Additional Info

The venture was started in 2009, making the business 13 years old.
The deal doesn't include inventory valued at $15,000*, which ins't included in the listing price.

The business has 24 FT/20 PT employees and resides in a building with disclosed square footage of 8,500 sq ft.
The real estate is leased by the company for $21,000 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell businesses. Nevertheless, the true reason vs the one they tell you may be 2 totally different things. For instance, they may claim "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be justifications to try to hide the reality of changing demographics, increased competitors, current reduction in profits, or an array of various other factors. This is why it is very vital that you not depend totally on a vendor's word, yet rather, utilize the seller's answer in conjunction with your total due diligence. This will paint a much more practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans so as to cover points like inventory, payroll, accounts payable, etc. Remember that in some cases this can indicate that profit margins are too tight. Lots of companies come under a revolving door of taking on debt as a way to pay back various 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 structure where the business resides. The business may have existing contracts with suppliers that have to be satisfied or might lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area attract brand-new customers? Most times, operating businesses have repeat consumers, which create the core of their everyday earnings. Particular aspects such as new competition sprouting up around the location, road building, and also staff turn over can influence repeat consumers as well as negatively influence future revenues. One important thing to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business often, the greater the chance to build a returning customer base. A last idea is the basic location demographics. Is the business located in a largely populated city, or is it located on the outside border of town? How might the neighborhood typical house income influence future income prospects?