Business Overview

The Company is a growing neighborhood gastropub and cocktail bar serving exquisite high-quality food and drink. Having both craft cocktails and craft beer, has been a signature draw to a wider group of patrons and drinkers. The business is located in an upscale, destination Houston hospitality area, minutes from downtown, inside the loop. Customers are moderate to high income locals who often walk from adjoining neighborhoods. Customers rave about the open floorplan and wide array of seating venues and the easy private parking. There are many local attractions and traffic drivers, supporting monthly sales projections of $200,000 to $250,000.
Though the greater Houston area has approximately 100 gastropubs, breweries and brewpubs, this gastropub is regularly mentioned in lists of Houston’s best gastropubs. Overall sales are APPROXIMATELY 51% food and 48% beverages. The seller states that the business has excellent matching books & records and that they can prove all sales, expenses and income.
NOTE: SALES, CASH FLOW and EBITDA are 2022 projections
This gastropub offers quality beers and cocktails in a relaxing, spacious environment. The American craft drink and food lover craves variety and novel food and drink experiences, and this gastropub has the distinct advantage of offering an exclusive experience that both beer lovers and non-beer lovers seek. Their customers are primarily local patrons PLUS adventurous customers looking for a unique, one-of-a-kind experience.
The target markets include 1) craft beer lovers who want a brewpub experience but may have spouses, friends, or family who are not beer lovers and want other drinking options, 2) cocktail lovers that enjoy high quality hand-crafted cocktails made to order by engaging bartenders and 3) foodies looking for a chef-centric menu. Although drinks drive profitability, the kitchen program drives over half of sales.
Customers rave about the wide array of outdoor seating. Outdoor sales make up approximately 51% of overall business. Also, in a neighborhood notorious for difficult parking, the business has a private leased parking lot.
The business operates with well-trained, satisfied, motivated employees, plus a part-time owner overseeing the business. Management is fully trained and can operate all aspects of the business. The owner believes that the managers and staff are willing to stay.
Although the industry is very competitive, the business has superior craft beer and cocktails, delicious food, excellent customer service and a destination venue with many growth opportunities. The owner states that the business has excellent books & records. The business is growing very quickly and is currently operating at about 40% capacity, allowing substantial growth within a short time. As the business continues to grow its loyal fanbase, there is an IMMEDIATE opportunity for profitability. There are many opportunities to increase sales and profits which are described in the Confidential Business Profile available to qualified purchasers.
The asking price for the assets of the business is $250,000 ALL CASH or $350,000 with $150,000 down and $200,000 seller financing to a qualified buyer (approved by the Seller) for 5 years at 8% (monthly payments of approximately $4,055/mo). All financing is to be personally guaranteed. SELLER PREFERS TO SELL FOR ALL-CASH. Purchaser will need to assume 1) Gift Cards of $90. And 2) dishwasher lease approximately $216/mo. The assets include inventory of $47,000, Accounts Receivables of $0 (no billed accounts) and FFEV (Furniture, Fixtures, Equipment and Vehicle) valued at $150,000. Inventory including raw materials, merchandise and finished goods will be valued at cost. The price will be adjusted for actual inventory, outstanding gift cards and accounts receivables as of the sale date.
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KEYWORDS: beer brewery gastropub brewpub hops malt yeast ale lager pilsner bock draft public house taproom alehouse tavern sell my craft gastropub business for sale

Financial

  • Asking Price: $250,000
  • Cash Flow: $1,000,000
  • Gross Revenue: $1,500,000
  • EBITDA: $100,000
  • FF&E: $150,000
  • Inventory: $47,000
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,400
  • Lot Size:N/A
  • Total Number of Employees:25
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business occupies approximately 2,400+/- SF (plus extensive patio, outdoor seating) leased at approximately ~$7,145.83/mo plus NNN ~$1,539.42. The lease term expires in about 4 years with small annual rent increases and two 5-year options.

Is Support & Training Included:

Seller will train buyer for 3 weeks included with the purchase price. Seller is willing to provide additional training at mutually agreeable fixed compensation to assist with general management functions for a finite period.

Purpose For Selling:

Owner has successfully created and grown their business; they plan to move on to

Pros and Cons:

The restaurant and craft beer industry is very competitive. However, this gastropub operates in a unique niche, with reduced competition and scalable growth. The business attracts customers from the local neighborhood and major metro areas in Houston, Texas. Though the greater Houston area has over 70 breweries and brewpubs, this gastropub does not compete directly with them. Despite the presence of competitors, the business has quickly developed a loyal following and has substantial growth opportunities.

Opportunities and Growth:

The business is currently running at approximately 40% capacity. The greatest opportunity for sales growth is simply continuing the startup progress. A new, energetic owner can further increase sales & profits in many ways: 1) Continue to grow the loyal fanbase, 2) Add and promote live outdoor music, 3) Continue to reduce cost of goods sold and increase productivity, 4) Add B2B lunch catering, 5) Improve outdoor TV/video entertainment, 6) Continue using social media to strategically target to customers/clients/businesses, 7) pursue scaling business model as envisioned by owner, 8) More detailed actions are described in the Confidential Business Profile.

Additional Info

The sale shall include inventory valued at $47,000, which is included in the suggested price.

The company has 25 employees and resides in a building with approx. square footage of 2,400 sq ft.
The property is leased by the company for $7,146 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell operating businesses. However, the true factor vs the one they say to you might be 2 totally different things. For instance, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. But, for some, these might just be excuses to attempt to conceal the reality of altering demographics, increased competition, recent reduction in revenues, or a range of other factors. This is why it is really important that you not count absolutely on a vendor's word, however rather, use the vendor's answer in conjunction with your general due diligence. This will repaint a more sensible picture of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous companies take out loans with the purpose of covering items like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that profit margins are too small. Lots of companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be satisfied or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location attract brand-new customers? 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 area, roadway construction, as well as staff turn over can impact repeat consumers and negatively affect future earnings. One important point to take into consideration is the location 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 on a regular basis, the greater the opportunity to construct a returning consumer base. A last thought is the general area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Just how might the neighborhood median home earnings impact future earnings potential?